How does your company witness the current demand trend in movement of goods after the economy starts recovering?

We need to optimize business during recession period. The country is passing through very crucial period attributing to global downturn. However recently we did observed some encouraging signs of recovery and exports from India are likely to improve in phases in the months to come. To a large extent the Packers and Movers industry’s future is very much at the mercy of the administrators and financial institutes who brought about the present economic meltdown. Though this recession will bite deeper, recovery will come, and those businesses that have managed best will have an advantage in the upturn. What then can be done to address the problem? If you have sufficient resources and are confident enough to invest capital then develop new facilities and infrastructure for the future, if not, then planning for recession is about driving down costs to become “leaner and meaner” while maintaining a healthy customer base. Aside from the administrative processes there are three fundamental areas in a Packers and Movers business where appropriate, and relatively straightforward, initiatives can be introduced, namely:  Inventory Management, Warehousing Operations and Transport Resource Planning. (Packers and Movers)

In which all sectors you are observing a demand trend in regard with commodities transportation. According to you what are the reasons?

With growing consumerism, unprecedented awareness, and a youth-hefty customer base, India is perceived as 'Most Promising Land' for the Global and domestic retailers. The Indian retail market is professed as potential goldmine and is attracting a large number of giant international and domestic players in anticipation of explosive growth. The organised retail sector is likely to increase its share from the current 4% to over 20% by 2010, as the overall retail sector grows from $328 billion to $430 billion. There is a tremendous growth in the pharmaceutical Delhi , 26 July 2005 – India is in line to become one of the top ten global pharmaceuticals markets, according to the latest in a series of studies by PricewaterhouseCoopers. With an economy predicted to grow around 5% each year for the next half decade, India offers huge opportunity to pharma multinationals particularly as sales growth is slowing in the more traditional target markets of North America, the European Union and Japan  (Packers and Movers Hyderabad)

At a growth rate of 9 per cent per year, the pharmaceutical industry in India is well set for rapid expansion. As a result of the expansion, the Indian pharmaceutical and healthcare market is undergoing a spurt of growth in its coverage, services, and spending in the public and private sectors. India is in line to become one of the top ten global pharmaceuticals markets, according to the latest in a series of studies. With an economy predicted to grow around 8.5% each year , India offers huge opportunity to pharma multinationals particularly as sales growth is slowing in the more traditional target markets of North America, the European Union and Japan. India’s total pharma companies turnover crosses one lakh crore which naturally propels the growth of transport industry. (Packers and Movers Bangalore)

More you can read in my next post From your experience with the goods transportation which all sectors are still witnessing the slow down?

Well obviously the global recession will hit the industrial sector in India since our exports will suffer. Also, a recession in our own domestic demand will hurt many of our industries. The effects of the present recession on India were quite distinct from those of the past. Here are some areas worth following:

1) In terms of specific sectors, the IT Enabled Services sector was the hit since a majority of Indian IT firms derives 75% or more of their revenues from the United States

2) The tourism sector was affected. Now is the time to aggressively promote health tourism. Given the availability of talented professionals, and with a distinct cost advantage, India can be the destination of choice for health tourism.

3) The manufacturing sector ramped up scale economies. Real estate too took the beating. Growth of automobile industry too declined.

What was the Packers and Movers sector’s experience during the slowdown period? What was your experience in the year 2009?

Some people say recessions are inevitable; others say they are healthy, necessary to clean out the system and clear the way for the next expansion. Finally, while many blame greedy capitalists for pushing things too far, there are some who believe that the current meltdown is something we deserved (or earned) because so many lived beyond their means. (Movers and Packers) No matter what you believe, recessions are never fun. Beneath all the statistics and data are real people facing real challenges. The unemployment rate goes for a toss, followed by drop in GDP and the global downturn will pressurize the Indian economy more next year and the government has to speed up reforms and boost investment to sustain high growth rates. Global crisis could also weaken the balance sheets of the financial institutions, cause a further fall in share and asset prices, and challenge the macroeconomic situation due to shrinking global growth.

The effects of the global economic meltdown are being felt by the domestic transportation industry as well. India's auto component makers are facing one of the biggest crises ever. (Packers and Movers Delhi)

Nobody can predict a meltdown well in advance to shield oneself from its affects. The only way to cope up with it is to live with it as it happens and put long term strategies in place to come out of the situation” DRS Group especially for that matter stuck to the basic principles of cost reduction and optimum employee productivity would survive ...If we have a closer look, 3PL service providers like ours were doing exactly this for their clients i.e. delivering exceptional customer service, falling on timeliness and reduction of cost because of expertise and volumes. So for 3PL service providers in order to survive they need to fall on their commitments and in these tough times should also pass on the benefits of their reduced vendor cost to the customers (Packers and Movers Pune)

How do you foresee the business for the year 2010?    

Packers and Movers costs in the country amount to around 12-13 per cent of GDP. Warehousing is going to be the focal point in the next coming months. Indian economy is growing approximately to 8.5% and warehousing and inventory management cost constitutes around 6% of the GDP. There has been a steady increase in the demand for advanced warehousing in view of the growth of retail sector. Therefore one has to come up with innovative ways for reducing cost and optimize utilization of resources. This will enable the warehousing segment to grow at a fast pace. With a fleet of 850 trucks now, DRS Agarwal Packers and Movers is looking at adding 200-250 trucks each year starting from March 2010. The company clocked revenues of around Rs 300 crore last year. We foresee an up tick of 20-25 per cent this year.

Call it prediction or fervent hope, this recession will end for India, it may be sooner than the rest and also with a positive outcome.  (Packers and Movers Noida)