Think about the last online purchase you made. Or even the last product you picked up off the shelf at a store. Have you ever wondered how those products get delivered? We’re all aware that there is a logistics network that works behind-the-scenes to pick, pack and ship products to consumers and retailers. And if you live in urban India, you’re probably familiar with big-name courier and delivery services like Blue Dart, Delhivery, FedEx, and Amazon and Flipkart e-commerce fulfilment.
But there’s a lot more that goes into delivering a product than just freight: there’s warehousing, last-mile rural delivery, and the safe storage, handling and transport of temperature-controlled products, or the “cold chain.”
Driven by rising demand from sectors like e-commerce, automotive, and fast-moving consumer goods (FMCG), India’s logistics and warehousing space is expected to hit 1.2 billion square feet by 2027, according to a report from JLL. The report also highlights the growth of urban fulfilment centres as a major trend. By 2027, the combined space requirement for these centres is expected to touch over 35 million square feet of space across India, underscoring the increasing demand for efficient last-mile delivery.
India’s diverse supply chain landscape can be challenging, to say the least. But the good news is, there’s a group of innovative and agile small cap logistics companies that are addressing these challenges with their products and services. Here’s a closer look at who they are and what they do.
Transport Corporation of India: Comprehensive end-to-end solutions
Who they are
Transport Corporation of India or TCI is one of India’s top logistics companies. Established in 1958, the company offers a wide range of comprehensive logistics solutions catering to multiple modes and segments.
What they do
TCI has multiple solutions to cater to specific client needs.
- TCI Freight offers freight/bulk transport services.
- TCI Supply Chain Solutions offers supply chain consultancy, inbound and outbound logistics, in-plant stores and yard management, and warehousing/distribution center management, catering to industries from tech and auto to retail and pharmaceuticals.
- TCI Express provides international and domestic courier services.
- TCI Global takes care of international flight handling.
- TCI Seaways operates sea vessels, with a fleet of over 5 ships that cater to coastal cargo requirements for bulk cargo and container transport
- TCI Cold Chain Solutions provide integrated cold chain services to meet the needs of temperature-controlled warehousing and distribution services.
TCI’s diversified portfolio spans a wide range of sectors, including automotive, industrial, pharmaceuticals, FMCG, and others, each of which are increasingly outsourcing their logistics and fulfilment operations.
Recent developments
With the e-commerce and retail boom in India and the surge in demand for warehousing and automotive logistics, TCI expects a shift in its revenue model, with the supply chain solutions (SCS) segment projected to surpass freight as its largest revenue source by FY26.
TCI has also been expanding its fulfilment centres and offering specialised services from warehousing to delivery. This shift towards more high-margin services is another one of the reasons why supply chain services are set to surpass freight. There is also a focus on expanding its cold chain operations to meet the demands for the transportation and storage of temperature-sensitive goods. To drive its growth strategy, TCI allocated Rs. 350 crores in capex for the year in 2024, including Rs. 100 crores for new ships.
Gati: Experts in express distribution
Who they are
Gati was founded in 1989 and is one of the leading logistics and supply chain companies in India specialising in express distribution, e-commerce fulfilment and specialised logistics solutions. The company offers a wide range of services and a wide-ranging presence, with catering to both domestic and international markets
What they do
Gati handles fulfilment, relocation and distribution services, like:
- Contract logistics: Gati offers an array of contract logistics services, including warehousing and storage, distribution and inbound logistics, e-commerce order fulfilment, transportation management, in-plant management and more.
- Express distribution: Through express distribution via ground and air, Gati delivers goods across India, from urban hubs to remote corners.
- Retail services: Gati offers retail services (relocation, cargo and delivery services) for students, vehicle owners, armed forces personnel and individuals.
Recent developments
Gati has been quick to identify key growth drivers and has restructured and realigned its business to cater to market needs. It has prioritised MSMEs and retail customers and has played a pivotal role in empowering MSME clusters, such as the Chickpet fabric cluster in Karnataka, by providing tailored logistics solutions and ensuring efficient connectivity across India. It has established itself as the logistics partner for over 1200 out of 2000 manufacturers in Chickpet. Gati also revamped its Bike Express services (for transport and relocation of bikes) to a pre-paid booking model, to improve customer convenience and ensure service transparency. And with the increased adoption of digital tools like HubEye and Gate Scan to enhance operational efficiency, Gati looks set to cater to even more diverse clients.
Snowman Logistics: Cold chain specialists
Who they are
The company was established in 1994 and provides integrated cold chain logistics services including warehousing, distribution and value-added services, for pharmaceuticals, dairy products, and other perishables.
What they do
Transporting goods is one thing. But transporting perishable, temperature-sensitive goods in a mostly-hot country like India requires a different level of expertise and a proper cold chain: a temperature-controlled supply chain that ensures these products are delivered fresh, intact and without spoilage.
The pharmaceutical industry’s growth and the increasing demand for perishable goods underscores the importance of cold chain logistics in India. Maintaining the integrity of temperature-sensitive products from origin to destination is crucial, so that products like food, medicines, and vaccines are stored and transported at specific temperature ranges to maintain their quality, potency, and safety.
The growth of ready-to-eat and ready-to-cook food products in the post-pandemic period has significantly contributed to the expansion of cold chain logistics, and leading the way is Snowman Logistics. Snowman has a pan-India presence, operating 46 warehouses across 21 cities with over 50 million square feet of cold storage area, along with a fleet of more than 600 trucks.
Recent developments
As of 2019, the company was the market leader in cold chain logistics with over 30% of capacity among integrated cold chain logistics providers in the country. The same year, Adani Group acquired a majority stake in Snowman Logistics, for INR 296 crores. In 2022, Snowman Logistics launched fifth-party or 5PL services (this allows companies to outsource their entire supply chain management to a single logistics service provider), and became the first logistics company in India to introduce this service in the cold chain logistics and supply chain management sector in India.
Demand for efficient logistics services in India is only set to increase, especially with cold-chain and rural consumption growing. A report by retail intelligence platformBizom indicates that there is a shift underway in Indian consumption, with rural areas showing an uptick while urban consumer demand declines. This spike in rural consumption presents an opportunity for some of these small cap logistics companies, who are reshaping the sector with innovative and localised solutions.
By addressing the specific needs of e-commerce, pharmaceuticals, last-mile delivery and rural distribution with unique solutions, they are helping solve the complex supply chain puzzle and aiding in the overall growth of the logistics and consumer sector and may play a pivotal role in India’s logistics future.
Sources
https://www.jll.co.in/en/trends-and-insights/research/future-of-logistics-warehousing-market-india
https://indiaseatradenews.com/tci-expects-surge-in-revenue-for-supply-chain-segment/
https://tcil.com/wp-content/uploads/2024/05/Q4-FY24-Results-Press-Release.pdf
https://indiaseatradenews.com/tci-expects-surge-in-revenue-for-supply-chain-segment/
https://www.itln.in/logistics/allcargo-gati-boosts-msme-fabric-cluster-in-chickpet-1354047
https://www.allcargogati.com/cms/quarterly-earning-reports/April2025/I7tcm7tkZa9nIZbLjTDN.pdf?