Indian logistics sector in India will see a growth of 10.5 per cent CAGR due to GST implementation and the subsequent investment coupled with the infrastructure status, according to TeamLease report ’Indian Logistics Revolution – Big Bets, Big Jobs’. A positive growth of the industry will result in the sector creating around 196,000 new jobs in Hyderabad and 3 million jobs across the country in the next four years.
The report points out that the impact will reflect across all the seven subsectors-road freight, rail freight, warehousing, waterways, air freight, packaging and courier services. Economic growth, high infrastructure investment and rising outsourcing will contribute to 1,45,307 incremental jobs in road freight. Similarly, the evolving regulations are improving ease of doing business and resulting in growth of cargo, which will aid in creating 26,000 incremental jobs in air freight. Further, the report also highlights that rail freight sub-sectors will create 4,000 incremental jobs, over the next four years (2018 through 2022).
The warehousing, courier and packaging subsectors will see a major growth with urbanization, growing customer segments, packaging innovations and IT adoption. The courier services sub-sector will see a growth of 11,000 incremental jobs over the next four years while the warehousing division is set to create 7,000 incremental jobs. The packaging sub-sector will add 3,000 incremental jobs over the next 4 years (2018 through 2022).
Sudeep Sen, AVP, TeamLease Services, said, “Hyderabad is a key and growing market for logistics sector in India with the Shamshabad and Mahabubnagar areas as major warehousing corridors. Proximity to the airport, lower rentals and availability of land parcels (like in Mahabubnagar) also makes Hyderabad a strategic location. Initiatives such as the construction of the four model road corridors totalling 97km with Rs 1,930 crore investments, infrastructure creation of multimodal parks, adoption of new technologies and path breaking innovations in the logistics subsector will boost opportunities and act as a catalyst in creating jobs.”
According to the report, a detailed drill down on the factors affecting the sector highlights its struggle with talent acquisition. The perception of the sector as a low skilled sector with outdated work processes, gender bias and poor working conditions are the key deterrents in attracting the right talent.
As per the report, employees leave the sector prematurely due to lack of adequate learning and development initiative, low compensation levels, inadequate benefits, hazardous and high-stress working conditions. The report further highlights a dearth of 1,18,000 skilled people across seven primary logistics sub sectors in Hyderabad with surplus senior talent but a dearth of junior level skill.
Interestingly enough, the proportion of women employees in this sector has risen to 20 per cent (current) from five per cent in 2010. It is expected to move upwards to 26 per cent in the next four years. Employers are reorienting themselves for a relatively more egalitarian talent management era, encouraging gender diversity and embracing new technologies.
While unhygienic working conditions, incompatible life balance, harassment, bullying and violence were some of the workplace inhibitors, preference for male candidates, biased selection criteria in job role descriptions and entrenched gender norms were a few barriers that limited active women participation in this sector. However, the sector now shows promising numbers for women participation and gender diversity, the report said.