As India continues to grow even in these turbulent times of the global economic crisis, one of the sectors that has witnessed tremendous impact is the logistics industry in India. The rise of the corporate sector in India has also seen a large number of people relocating across the country at regular intervals.
The Indian packing and moving industry, essentially a subset of the logistics sector has also experienced considerable growth and development in recent times.
What once used to be the domain of regional goods transporters is now slowly evolving into a more organized sector, with players like DRS Group, Sante Fe, and other similar professional service providers.
The following are some key development/growth opportunities for players in the packing and moving industry:
Corporate relocation services: India’s corporate sector, largely boosted by the growth of the IT, pharmaceuticals, and other industries, has set up workplaces in multiple parts of the country, including the metros and some Tier-II cities as well.
Companies are increasingly sending their employees to work across multiple offices, both national and international, to foster holistic development of their skills as they climb up the ladder.
While relocation previously involved companies offering reimbursement of the charges to its employees, a number of firms have discovered that it is more cost effective to introduce tie-ups with professional packing and moving firms that their employees can leverage during relocation.
This has opened up a new window of opportunity for packers and movers, who can have corporate tie-ups with a number of organizations and be assured of a regular clientele.
Moving into packing and moving space, from mere goods transport: A few years ago, people were content with packing their households by themselves and hiring the services of a goods transport company to just move their luggage to the new destination.
However, nowadays, people prefer to hire the services of professional and reliable packers and movers, who come home, pack up all the household goods professionally using skilled workers and proper packing material, load up the luggage, transport it to the new location, and even unpack the goods at the destination.
Consumers benefit through the more comprehensive service, while companies can earn more revenues by expanding their offerings.
Diversifying into other aspects of the logistics industry: Packing and moving companies can leverage their existing infrastructure to diversify into other services like 3PL or courier, in addition to providing relocation services to consumers.
Since the investment to expand into other areas is relatively lesser for existing players, this would open up opportunities to earn more profits for the companies.
Registration as Goods Transport Agents: As the government lays down stricter rules for packer and mover firms, companies should invest in registering themselves as Goods Transport Agents with state departments to prevent any legal action against their operations.
The Indian government is getting strict about formalizing and improving the overall image of the sector. Proper documentation and certification has therefore become essential for survival in this sector.