Interviews
Sreenivas Rao Nandigam, Global Head – Supply Chain, Sun Pharma
Rajiv Ganju, SVP – Manufacturing & Global Supply Chain, Luminous Power Technologies (P) Ltd.
Sanjeev Setia, Supply Chain Expert & Former VP – Supply Chain, Haldiram Snacks
‘MAKE IN INDIA’– A
Propelling the nation towards self-reliance and industrial excellence
Please
Dear Readers,
As we dive into the August 2024 issue, we spotlight a transformative initiative that has been reshaping India’s industrial landscape: “Make in India.” Launched in 2014, this ambitious program aims to position India as a global design and manufacturing hub, fostering an environment where both multinational and domestic companies can thrive.
The “Make in India” initiative is more than just a policy; it represents a vision for a self-reliant and robust industrial ecosystem. Over the past decade, we have witnessed remarkable progress, with significant investments pouring into diverse sectors. However, this journey is not without its challenges, from infrastructural bottlenecks to regulatory complexities.
Our Cover Story delves into these very challenges and the opportunities that lie ahead. We bring you insights from industry experts who shed light on the evolving landscape, exploring the strategies and solutions crucial for solidifying India’s position in the global manufacturing arena.
Furthermore, we have exclusive interviews with stalwarts in the supply chain domain. These seasoned professionals share their visions for the future, reflecting on how their industries and the broader value chain are poised to evolve.
In addition, this issue includes a special report on multimodal logistics. This report addresses the critical impediments and the concerted efforts required to transform India’s physical infrastructure landscape. Efficient logistics are the backbone of a thriving manufacturing sector, and enhancing our multimodal capabilities is essential for seamless connectivity and global competitiveness.
As we reflect on the progress made and the road ahead, the synergy between policy, industry, and innovation is vital.
We hope you will enjoy the read. As always, we look forward to your feedback and insights.
Warm Regards,
Charulata Bansal Publisher Charulata.bansal@celerityin.com
www.supplychaintribe.com
Edited by:
Prerna Lodaya e-mail: prerna.lodaya@celerityin.com
Designed by: Lakshminarayanan G e-mail: lakshdesign@gmail.com
Logistics Partner: Blue Dart Express Limited
With the vision to transform India into a global design and manufacturing hub, The ‘Make in India’ initiative was launched in 2014. As we are about to complete 10 impactful years of transformation, our theme for the 6th Celerity Supply Chain Tribe Awards & Conference, delved into gauging the impact
Rajiv Ganju, Sr. Vice President – Manufacturing & Global Supply Chain, Luminous Power Technologies (P) Ltd., states, “One of the key goals in organizational development in the last 10-15 years in the business world has been to find a way of creating cultures that are flexible & innovative and where individuals take responsibility for the results.”
Sreenivas Rao Nandigam, Global Head – Supply Chain, Sun Pharma, asserts, “We need to glamorise the manufacturing or the shopfloor jobs just like the services sector so that people are enthused to join the manufacturing cadre and not shy away from it.”
22 The Power of Collaboration
Sanjeev Setia, Supply Chain Expert & Former VP –Supply Chain, Haldiram Snacks, emphasizes, “The FMCG sector, with its dynamic nature and extensive reach, is uniquely positioned to collaborate with various industries to drive growth and innovation.”
of ‘Make in India’ initiative. Our expert panelists deep dived into challenges faced till date, opportunities being created, and explored the strategies and solutions for solidifying India’s position in the global manufacturing landscape. One key takeaway from the panel was that indeed Make in India is reshaping India’s manufacturing landscape, propelling the nation towards self-reliance and industrial excellence. Excerpts of the panel proceedings that unfolded…
25 FOCUS
Building A Sun-Powered Future on the Back of a Robust Supply Chain
An interesting analysis by Vanshaj Srivastava, Senior Manager, SCM Strategy and Ops, Reliance Industries Ltd., delves into the complex network that delivers solar energy from raw materials to our homes and businesses.
30 SPECIAL REPORT
Mission Multimodal – Have we HIT the Bull’sEye?
During our recent conference, an expert panel explored ways to integrate road, rail, air, seaways, and waterways to create a seamless transportation network, boost economic growth, and pave the way for a sustainable and prosperous future. Through this Special Report, we discover the innovative strategies and collaborative efforts needed to transform India’s physical infrastructure landscape.
Editor: Prerna Lodaya
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“One of the key goals in organizational development in the last 10-15 years in the business world has been to find a way of creating cultures that are flexible & innovative and where individuals take responsibility for the results. This ensures moving away from bureaucratic silos where the formulaic approaches dominate, resulting into flawless execution. At Luminous, we live this day in and day out,” emphasizes Rajiv Ganju, Sr. Vice President – Manufacturing & Global Supply Chain, Luminous Power Technologies (P) Ltd., during this exclusive interview…
You have close to three decades’ experience in managing supply chain for the electrical & electronics manufacturing industry. How has the transformation been over these years?
The transformation has been immense and impactful in the sense that earlier customers used to wait for their orders as per the manufacturers’ production timelines. The scenario is completely reverse today where ‘customer is the king’. During the times when MNC culture was not prevalent in India, everything used to get imported. Manufacturing was practically non- existent in India as far as electronics is concerned, we were just into the assembly work. Today the landscape has changed drastically where India holds the position of being the second biggest manufacturer of mobile phones in the world. From being a country with the highest consumption appetite, we are on the path to become a manufacturing superpower for the world. Such has been the scale of remarkable transformation in the supply chain management for electrical & electronics industry over the last three decades.
What do you have to say on the prominent role of Industry 5.0 in durables manufacturing and supply chain?
After our common Vision to become Global #3 Economy, modernization of Indian industry has become a necessity. Let’s track the fascinating evolution from Industry 1.0 to 5.0… During earlier days, there never used to be a concept of continuous production in the manufacturing facilities. It laid the groundwork for factories and mass production, shaping modern manufacturing. In the era of Industry 2.0, we tried to streamline the production process. During this time, new technological systems were introduced, most notably superior electrical technology which allowed for even greater production and more sophisticated machines. Industry 3.0 marked the era of technological integration via computers, which introduced automated systems onto the assembly line to perform human tasks. Industry 4.0 was essentially the era of smart machines, storage systems and production facilities that can autonomously exchange information, trigger actions and control
Rajiv Ganju is a Senior Global Supply Chain & Logistics Executive with 30+ years of International & India experience in the electrical & electronics manufacturing industry. He has a strong experience in end-to-end supply chain, transformation & managing complex operations . In the recent years, he has deployed industry 4.0, tailored supply chain processes, SMART factories, SMART logistics centers & digitization to drive efficiencies, agility to make the supply chain ready for the future and to cater to varied needs of the customers. Rajiv is passionate about customers and encourage, coach and mentor team members to serve customers with passion.
The inauguration of Luminous’ Solar panel factory in Rudrapur, Uttarakhand, is a remarkable step towards realizing our nation’s net-zero mission. This state-ofthe-art facility marks a monumental step forward for Luminous in our relentless pursuit of sustainable energy solutions, perfectly aligning with the Government’s ‘Make in India’ vision and the transformative ‘Pradhanmantri Suryaghar Yojana.’ Our facility not only harnesses cutting-edge technology and infrastructure for maximum efficiency but also prioritizes minimal environmental footprint at every stage of operation. We are poised to make a significant impact paving the way for a brighter, cleaner future.
each other without human intervention.
The most fascinating transformation of all, I would say, is the current one –Industry 5.0, which is still at an infancy, which brings together the combined power of the man and the machine. It essentially aims at moving towards a human-centric, sustainable and resilient approach to industry, focusing on prosperity beyond jobs and sustainable growth trajectory. This new era envisions to create a more inclusive and equitable future for all stakeholders involved in the manufacturing ecosystem. Industry 5.0 has three key pillars: human-centric, resilience and sustainability.
Human-Centric: A human-centric strategy is one that promotes talents, diversity and empowerment. The most important shift this suggests is one from seeing people as means to seeing people as ends, or in other words, a shift in perspective from people serving organizations, to organizations serving people.
Resilient Strategy: A resilient strategy is agile and adaptive with flexible and evolving technologies. After Covid-19, global shortage of supplies, and the war in Ukraine disrupted the global supply chain, there’s only few who would disagree that resilience proved to be the key—today and in the future. While agility and flexibility are already on the corporate agenda, these attributes in themselves do not necessarily lead to success. If we are to realize that resilience truly becomes one of the three pillars of Industry 5.0, it means that strategy’s primary focus will no longer be on
growth, profit, and efficiency alone, but on creating organizations that are ‘anti-fragile’, indicating that they are able to anticipate, react and learn timely, systematically from any crisis, thereby ensuring stable and sustainable performance of the organization.
Sustainable Strategy: We see sustainability not just as a corporate practice but as a social necessity, which leads us to actively participate in promoting awareness on various environmental issues. With an organizational structure, it becomes a critical platform to spread messages on the challenges posed by climate change, resource depletion, pollution, and biodiversity loss. Luminous arranges workshops, seminars, and green team activities to make employees and customers aware of sustainable practices. These efforts point to the belief of the company that only a collective approach can bring about a truly sustainable future. A greener tomorrow is envisioned, for which Luminous Power Technologies innovates and leads in the energy sector. Luminous sees a world wherein sustainability is core to every action and makes this possible through collaboration, innovation, and education.
What does it take to optimize the routing and scheduling of deliveries for home electrical products?
Firstly, there is correct demand sensing which is achieved through the implementation of generative AI. We are living in the times of super-fast deliveries happening literally in the knick of the time. This can only be achieved if we have
the correct tools in place to sense the right demand and cater to them immediately. Another important concept to focus on is the ‘theory of constraints’. We should deploy automation tools & techniques such as collaborative robotics and robotic process automation to enhance operational efficiency and reduce cost.
What are the best practices you have implemented to streamline operations?
“Culture eats strategy for breakfast” is a famous quote from legendary management consultant and writer Peter Drucker. To be clear, he didn’t mean that strategy was unimportant –rather he implied that a powerful and empowering culture was a definite route to the organizational success.
One of the key goals in organizational development for the last 10-15 years has been to find a way of creating cultures that are flexible & innovative and where individuals take responsibility for the results. This ensures moving away from bureaucratic silos where the formulaic approaches dominate resulting into flawless execution. At Luminous, we live this day in and day out. For instance, we decided to have the total greenfield solar plant ready and running in 9 months and despite hurdles, we did it!
New age technology deployment in supply chain has been gaining pace. Can you enlighten us with a few examples as to how these technologies are playing a critical role?
‘Humans can err, machines make marginally fewer errors.’ This observation anchored the conversation around the
importance of investing in tech solutions for logistic excellence. AI supports organizational decision-making and increases operational efficiency based on effective data insights. Artificial Intelligence (AI) technology has two forms – Traditional AI and Generative AI. While traditional AI leveraged historical Data and Algorithms to derive output; Generative AI relies on data-driven learning and probabilistic modeling to generate content, make decisions, and problem-solve. Unlike Traditional AI, Generative AI does not rely on explicit rules but rather learns patterns and structures from the vast amounts of data fed into the system. One of the most significant advancements in Generative AI is the use of neural networks, specifically deep learning models.
The bottom line for implementing any tech tool should be purely functional and not at all for rhetorical purposes. The objective of automation should also be complementing the workforce
and not the other way round. Train the people to work around and work with such advanced tools and most importantly, the impact of these should be measurable. Supply chain is an insightful science. It will evolve with the fast-paced induction of technology and the enhanced capabilities, potential of the new-age supply chain professionals.
What are the guiding principles that you would like to share with young supply chain professionals to climb the success ladder?
The world is becoming SMART and so are workplaces. This is the time to unlearn conventional wisdom and apply SMART tools. This is beautifully explained in the book “Break All the Rules” by Marcus Buckingham and Curt Coffman. The book reveals what great managers do differently from ordinary managers to coax world class performance out of their workers. Great managers routinely break all the rules. They take the conventional
wisdom about human nature and managing people and turn it upside down.
There are four keys for unlocking the potential of each and every one of your employees:
The first key is to select employees based on talent rather than experience or intelligence. This will help you learn what talent is and why you can’t create it from scratch.
The second key is to evaluate performance based on desired outcomes rather than direct control over the way a worker performs his/ her job.
The third key to great management is to reject the conventional wisdom that people can be fixed. Focus on their strength, not on weakness.
The fourth and final key is to find the
right fit for your employees’ talents. Again, you will learn to avoid the conventional wisdom that promotion is the only just reward for high performance - mindset that creates an organization where everyone is ultimately promoted to their level of incompetence.
In short, always remember that dreams are for real. To accomplish great things, we must not only act, but also dream; not only plan, but also believe. Hold fast to dreams, for if dreams die, life is a broken-winged bird that cannot fly. Being supply chain professionals, we believe in enhancing the efficiency and the gross margins of the product. This should be the ultimate mantra of every supply chain professional. They must have the passion for supply chain and as they say, ‘Always stay hungry & curious’. I don’t shy away from stating that shamelessly emulate an already successful idea if it’s working well and is delivering what the customers want.
What are the traits that make up for a great CSCO?
These days all of us as leaders want our teams to outperform. Many studies help us to achieve this goal. One of the tools I use and found very successful is Pygmalion Effect. The original study was conducted by social psychologists Robert Rosenthal and Lenore Jacobsen in a Californian School in 1968. The findings from the study have proven that the expectation of a leader has a direct impact on the performance of the person they are leading. Or as Rosenthal describes it, “What one person expects of another can come to serve as a selffulfilling prophecy.”
Rosenthal shared four key factors that help explain how the Pygmalion Effect works:
Climate – Warm and friendly behavior
Input – The tendency for managers to devote energy to their valued employees
Output – The way managers call on those employees more often for answers
Feedback – Giving more helpful responses to employees who are
considered ‘valued’.
Some managers always treat their subordinates in a way that leads to superior performance. But most managers unintentionally treat their subordinates in a way that leads to lower performance than they are capable of achieving. What managers expect of subordinates and the way they treat them largely determine their performance and career progress. A unique characteristic of superior managers is the ability to create high-performance expectations that subordinates fulfill. Less effective managers fail to develop similar expectations, and as a consequence, the productivity of their subordinates suffers.
One of the most comprehensive illustrations of the effect of managerial expectations on productivity is recorded in studies of the organizational experiment undertaken in 1961 by Alfred Oberlander, manager of the Rockaway district office of the Metropolitan Life Insurance Company. He decided to form a group of superior agents in one unit to stimulate their performance and to provide a challenging environment in which to introduce new salespeople.
Accordingly, Oberlander assigned his six best agents to work with his best assistant manager, an equal number of average producers to work with an average assistant manager, and the remaining low producers to work with the least able manager. He then asked the superior group to produce two-thirds of the premium volume achieved by the entire agency during the previous year. He describes the results as follows:
“Shortly after this selection had been made, the people in the agency began referring to this select group as a ‘super-staff’ because of their high esprit de corps in operating so well as a unit. Their production efforts over the first 12 weeks far surpassed the target and performance improved by 40%.”
As leaders, we have to set up high expectations, provide the right climate, provide right and timely feedback to our performers and expect super results. Ultimately, you must be a great team player and a good motivator.
How can companies tackle disruptions through continuous innovation?
We are living in an era of disruption. One of the most innovative ways is ‘Orbit Shifting Approach’. Orbit Shifting innovation happens by devising innovative strategies that are not based on precedent or projections tied to past performance. The world of innovation is full of stories about how a leader got to an out-of-the-box idea that created a transformative impact.
Nearly all of these stories are really about incidental and accidental innovation. The core question is: How do we make orbit-shifting innovation happen by design?
The reality for most organizations is that layers and layers of gravity can make it very difficult to come up with an out-of-the-box idea. The organizational gravity box, the industry gravity box, the country gravity box, and the cultural gravity box. The deeper you go, the more invisible the box becomes. Most orbitshifting innovations did not start with an out-of-the-box idea, but with an outof-the-box challenge, an orbit-shifting challenge.
Redefine Goal Setting: To trigger orbit-shifting innovation by design, organizations need to start by going beyond performance goals. They need to redefine goal setting into a twintrack exercise: orbit-maintaining and orbit-shifting goals. A powerful principle is: for every three orbit-maintaining (performance) goals, a leader needs to take on at least one orbit-shifting challenge.
Triggering the Orbit-shifting Challenge: Most traditional goal-setting exercises get rooted in the reference points of the current orbit. Last year’s achievements and industry projections become the first reference point for next year’s goals. Orbit-shifters, unlike followers, don’t take reference from the last year and create stretch goals. They trigger orbit-shifting challenges.
Making an Exception the New Reference Point: Some followers look at the average and create stretch goals, while others benchmark with the industry
As a CEO, think about this: Traditional industry professionals focus on the average; they treat exceptional events/occurrences as abnormalities to be ignored. For orbitshifters, what is an exception today could be the norm tomorrow. Current times enable us to act like an orbit-shifter, looking for the absolute exceptions in our industry.
best practices and create catch-up goals. Orbit-shifters search for the exception, across industries and domains, and make exceptions the reference point for an orbit-shifting challenge.
As a CEO, think about this: Traditional industry professionals focus on the average; they treat exceptional events/occurrences as abnormalities to be ignored. For orbit-shifters, what is an exception today could be the norm tomorrow. Current times enable us to act like an orbit-shifter, looking for the absolute exceptions in our industry.
With the Central Government laying immense thrust on building a component manufacturing ecosystem, how do you see the supply chain playing a catalytic role?
The Electronics Manufacturing Services (EMS) industry is rapidly advancing, and prominent global leaders and domestic companies see India as an emerging manufacturing and operations hub. A strong component manufacturing foundation is necessary for a sustainable ESDM environment. This segment requires very high operating efficiency to stay profitable. Moreover, the availability of components and an effective supply chain are essential for EMS companies to grow. India, with its strong demographics and skilled employees, has the potential to be one of the leading exporters of electronics in the world. The government is highly focused on reaching the US $300 billion electronics production target by 2026.
India has clearly drafted its ambition to achieve US$120 billion worth of exports by 2026. While China and Vietnam excel in electronics exports, with China exceeding 1 trillion dollars and Vietnam surpassing $100 billion, India lags behind with exports totaling only $20 billion, representing a mere 0.4% of the Global Electronics and Electrical Market. High import tariffs and dependency on
imported critical components hinder India’s competitiveness. Protectionist policies may not effectively address this issue.
India aims to position itself as a global hub for electronics manufacturing through policies like NPE 2019. Achieving this goal requires enhancing domestic value addition, promoting exports, and creating an enabling environment. India needs to incentivize investment further, improve infrastructure, and create favorable policies in exiting schemes like SEZ, EHTP, EOU, MOOWR, FTZW.
What are the steps in which electronics supply chain can be revolutionized?
The world is becoming SMART & so are our customers. In this era, it is pertinent for all of us to develop products that excite customers and make organizations world class. In this direction how relevant is The KANO Model (pronounced “Kahno”). The Kano model is useful in gaining a thorough understanding of customers’ needs. You can translate and transform the resulting verbatims using the voice of the customer table that, subsequently, becomes an excellent input as to what’s in a quality function deployment (QFD) House of Quality.
The Kano model addresses the three types of requirements:
Satisfying basic needs: Allows a company to get into the market.
Satisfying performance needs: Allows a company to remain in the market.
Satisfying excitement needs: Allows a company to excel, to be world class.
Kano says that a product or service is
about much more than just functionality. It is also about customers’ emotions. For example, all customers who buy our new solar product range will expect the rooftop modules to generate and store electricity, but most of them will be delighted to have a completely app-based platform – ConnectX. ConnectX offers a comprehensive solution for energy management, combining real-time data visualization, historical analysis, insights, and customer support. It aims to establish a new benchmark for user-friendly and feature-rich energy management tools. The users will benefit from access to real-time data and insights, informing them about power generation, energy usage patterns, as well as performance and health of the inverter through notifications and update.
While we focus Make in India, let us excite our customers through developing exciting products in India!
This is right time for India to start aggressively on the electronic component manufacturing in India. Some of the aspects that will help us achieve this sooner include…
• If we have to be competitive focus on low-cost automation in electronics Industry
• Collaboration between Industry and Academia to produce talent in Advanced Power Electronics
• Incentivize component manufacturing like PLI on semiconductors to accelerate pace of component manufacturing starting with less complex components like PCB, Electromechanical parts.
• Focus tech tie-ups to support manufacturing and R&D.
With the vision to transform India into a global design and manufacturing hub, The ‘Make in India’ initiative was launched in 2014. As we are about to complete 10 impactful years of transformation, our theme for the 6th Celerity Supply Chain Tribe Awards & Conferences, delved into gauging the impact of ‘Make in India’ initiative. Our expert panelists deep dived into challenges faced till date, opportunities being created, and explored the strategies and solutions for solidifying India’s position in the global manufacturing landscape. One key takeaway from the panel was that indeed Make in India is reshaping India’s manufacturing landscape, propelling the nation towards self-reliance and industrial excellence. Excerpts of the panel proceedings that unfolded…
Have we fully embraced the ‘Make in India’ initiative and are we addressing the right actions and objectives?
Indian Government as well as our manufacturing sectors have indeed embraced this initiative with open arms.
Ravikant Parvataneni, CEO India, Argon & Co: When we talk about ‘Make in India’, the implication reflects increased emphasis on the manufacturing capabilities of the country and boost its contribution towards the country’s GDP. What has been the forte of the services sector for over two decades, we want to replicate the same with the manufacturing sector as we move ahead. During this journey, we would encounter multiple challenges, and we may not be able to replicate what China has done
to attain the tag of manufacturing superpower of the world. But this also gives us an opportunity to innovate and offer a unique proposition to the world on the back of our inherent strengths. I would not shy away from saying that we should imbibe certain manufacturing best practices that China has done over these years to fast forward our journey towards achieving the said target because we must realize that it’s just not an easy task. To top it all, our fast-changing geopolitical situations are only adding to the chaos.
Sanjay Desai, VP Asia, Supply Technologies: Yes, we can say with confidence that the Indian Government as well as our manufacturing sectors have indeed embraced this initiative with open arms. There are four pillars of Make in
India initiative, which are New Mindset, New Sectors, New Infrastructure, and New Processes. Let us a take a look at the top five actions/ objectives, which will drive our ambition of ‘AatmaNirbhar Bharat’…
Government Policies: Indian Government has introduced many policies like (AatmaNirbhar Bharat, Ease of Doing business, Production Linked Incentive Schemes (PLI), etc. We need to sustain these initiatives, measure their throughput, and build a continues improvement culture across the nation.
Ease of doing business: Indian Government launched this initiative with renewed vigor during year 2014. Within 10 years, we have reached 63rd place in 182 nations ranking. In 2014, we were
languishing at 143rd rank. To further enhance the ease of doing business, more than 39,000 compliances have been reduced and more than 3,400 legal provisions have been decriminalized by the current government.
Boost Manufacturing sector/s: Multiple industrial sectors such as Chemicals, Pharma IT/ Technology, Medical Devices, Automotive, Electronics and Textile manufacturing have seen growth and expansion due to this initiative. Companies are setting up new manufacturing units and expanding existing ones either moving up the scale vertically or horizontally.
Enhance our MSME Sector’s growth potential: There are 630 lakh MSMEs (micro small and medium enterprises) in multiple sectors and states in India. Boosting our MSME is an integral part of government objectives. MSMEs in India contribute to 40% of India’s domestic revenue, 32% of India’s GDP / 45% of total manufacturing output and support more than 50% of labour.
Crossborder trade capabilities: Crossborder trade is critical for the growth of any economy. Crossborder trade opens up new markets, new opportunities and trade partnerships breaking the age-old barriers. Besides providing access to a diverse global economy, it also opens the doors for exchange of best practices in technology adoption and innovation in manufacturing.
policies and reforms play in supporting the objectives of the 'MII' initiative?
Government policies and reforms have played a pivotal role in supporting all industry verticals, fostering growth, competitiveness, and innovation.
Subodh Nagarsekar, VP –Procurement & Supply Chain, Rentokil Initial:
We all know that the government has launched an e-biz portal. It aims at reducing the points of contact between business entities and government agencies, standardizing ‘requirement information’, establishing single-window services, and reducing the burden of compliance, thereby benefitting stakeholders such as entrepreneurs, industries and businesses, industry associations, regulatory agencies, industrial promotional agencies, banks and financial institutions, and taxation authorities. But honestly speaking, looking at the number of compliances and the regulations that the chemical industry needs to adhere to, are we still there? It is a bigger concern that must be addressed immediately. India, having a huge demographic area, rules & regulations change in every state / region. There is no standardization when it comes to bringing rules & regulations pan-India. This, in turn, poses a huge challenge for chemical companies because adhering to each and every such compliance for every region is a nightmare. From the time, the government launched ‘Make in India’ initiative, there have been lot of changes. Obtaining permission has now become much simpler than it was
earlier. The government is also rolling out certain schemes and certain tax benefits to facilitate ease of doing business, opening new windows of opportunity. Having said that, a lot more needs to be done for the chemical industry.
Another crucial agenda that demands serious discussion is the need for an adequate infrastructure to support the growth that we are aiming to achieve. Let me share with you an instance, a few years back, at Mormugao Port in Goa, the transportation of imported hazard chemicals was strictly prohibited. We had to then transport the entire product via road to JNPT port, which was not only time consuming but was also a risky affair. Through years of deliberation with the respective authorities, we finally managed to start the transport of hazard chemicals through Mormugao Port. Thankfully the government has started taking initiatives towards this front such as Sagarmala and Bharatmala, still we have miles to go before we reach an acceptable level when it comes to developing a seamless infrastructure in the country.
I would also like to assert that it’s not just the government, industry stakeholders have to take significant efforts to turn the tide in the right direction. One last but very critical aspect that I would like to draw your attention to is – do we have the skilled manpower to support these initiatives? We need to collaborate with the academic institutes in instilling the right education backed by sound practical knowledge. Can we make them capable of becoming entrepreneurs at an early age? The last few years have
‘Make in India’ is more than an economic strategy; it is a vision for a stronger, more resilient nation. As India continues this path, the initiative promises to be a cornerstone of the country’s growth and development. The journey of ‘Make in India’ is one of resilience, innovation, and opportunity, paving the way for a prosperous and self-reliant nation.
From a purely IT/BPO services exports, India is already transitioning to a GCC (Global Capability Centers) model, wherein many global players are setting up their offshore delivery centers in India. Interestingly this is not restricted to just IT, it now includes engineering, design, technology, etc. Companies from varied industries like Aerospace, Biotechnology, Consulting, Engineering/Infrastructure, FMCG, apart from IT/Technology are setting up GCCs here in India. While this was initially a purely a cost arbitrage model, now it has become value addition/differentiator because of manufacturing setups being created to complement these. The growth of GCCs in India is fueling various sectors increasingly becoming strategic assets for companies and investors, driving innovation and job creation across industries.
put a huge limelight on sustainability. The chemical industry is also attempting to work in an eco-conscious manner. We are making strides towards green chemistry. We have decided to become Carbon Neutral by 2040. We have a very stringent target of reducing toxic chemicals and shifting towards green chemicals. Amid these challenges, how can the government best support us remains a question mark?
Ravikant Parvataneni: Government policies have and will continue to play a very critical role in supporting the objectives of the MII initiative. The target is big and if we have to achieve that we need a multifold approach and govt policies will play the role of perfect catalyst. These policies could be broadly categorized into three types:
Incentives and /or subsidies – PLIsproduction linked incentives, FAME subsidies, etc., in certain industries.
Supporting infrastructure –Industrial corridors, logistics parks, railways, roads, etc. for eg. DFC, National highways, GIFT cities, Integrated logistics parks, etc.
Laws /polices – Another critical area would be to make it easy to start and run business for entrepreneurs. This could include ‘Ease of Doing Business’, not so stringent labour laws (enabling easy recruitment/ retrenchment, etc.), avoiding red tape, etc.
Nitin Joshi, Head – Logistics & Warehouse Operations, Fabindia:
The industry has significantly benefited from the ‘Make in India’ initiative. These include…
Foreign Direct Investment (FDI): Apparel, Furniture, Home Furnishings, General Merchandise manufacturers and retail businesses have benefited from increased FDI inflows, which enhance production capabilities and market access.
Production Linked Incentive (PLI) Scheme: The PLI scheme incentivizes domestic production. For manufacturers, this means support for setting up modern facilities, improving quality, and increasing exports.
Ease of Doing Business: This initiative has streamlined processes, reduced compliance burden, and made it easier for manufacturers and retailers to operate efficiently. Apart from traditional brick & mortar businesses, D2C (Direct to consumer) fashion brands and ecommerce start-ups are able to launch their businesses faster.
Tax Reforms: One Nation One Tax measure by launching Goods and Services Tax (GST) and corporate tax reduction contribute to a favorable business environment.
In what ways are the socioeconomic habits of young India, (spending patterns, lifestyle choices, and technological adoption) will impact MII
initiative, and how can businesses and policymakers leverage these trends?
This single factor presents a unique opportunity for the nation to become a driving force in the world economy.
Ravikant Parvataneni: I do not think that socio-economic habit of young India will impact the MII initiative a lot. In my opinion, we have to start doing In India what China has been doing for the world, albeit in a smaller proportion though. For MII to be successful, we must export a lot and therefore we have to make what the world needs cheaper and quicker than others. Yes, India having a very young (and big) population will anyway consume a lot of what is ‘Made in India’ but the value addition to India’s GDP has to be driven by exports rather than domestic consumption.
Nitin Joshi: GenZ prefers transparency, sustainability and authenticity when they buy new products. They have clear choices or preferences when it comes to fashion brands and eating healthy. Sustainable fashion trends are seeing a big fillip because of GenZ. In fact, Fabindia has launched a brand specially for them – FabNu, targeting the age group of 18-35. Another interesting gamut about them is that they are tech savvy, which ultimately pushes brands to take the tech route and further the growth of ‘Make in India’ initiative. This also necessitates deploying technology in the supply chain for last mile connectivity be it at the warehouses or retail fronts.
New age tech companies or startups venturing in this space come with great clarity of thoughts and their respective target audience, which makes the entire process seamless and transition simpler. They come prepared in the market with every operational nitty-gritty such as sourcing, fulfilment, best technology, so on & so forth. They have the right connection and are extremely confident when they are pitching their innovation or their brand to the investors. That makes a huge difference. They ensure that the money gets invested at the right place. Fashion retail is one of the fastest growing industries in the country and these young brands are only accentuating the growth pedestal. These brands are also giving a great platform to regional artisans who otherwise can’t showcase their potential to their target market due to lack of visibility, which is a very positive sign.
Sanjay Desai: During 2023, we overtook China’s population becoming No 1 populus nation in the world. A significant factor is the vast youth demographic, with over 40% of India's residents being under 25 years old (over 600 million people) which is nearly close to double the population of the USA. Let us understand some of the trends that business and policy makers will be watching closely…
Disposable Income: Young India is better educated; they have high earning potential. They also spend
more to groom themselves on luxury products / high end IT / Electronics commodities. Most businesses are focusing on young consumers' preferences and tailor products accordingly.
E-commerce growth: The rise in online shopping, fueled by convenience and variety, is reshaping retail and distribution networks. This growth is helping the entire supply chains, warehousing/ distribution, creating manufacturing and infrastructure opportunities across the nation.
Preference for health and sustainable consumption: Young Indians are focused on health, ethical consumption and higher mobility which is creating demand for organic foods, fitness equipment, and health services. There is a growing awareness of environmental issues and a preference for sustainable and ethically produced goods.
Digital natives: Young India is supremely confident and native to advanced technology. Demand for digital devices and technology will drive growth in electronics and tech manufacturing.
Innovation and start-ups mentality: Young India has an entrepreneurial mentality which contribute to the creation of startups and small-to-
medium enterprises (SMEs), driving innovation and diversification in manufacturing.
What strategies should India adopt to diversify its services exports beyond IT and BPO, and how can this diversification contribute to a sustainable growth in MII?
Diversification broadens India's services export base, reduces vulnerability, and contributes to sustainable growth. By embracing these strategies, India can create a robust and resilient services ecosystem beyond IT and BPO.
Nitin Joshi: Few strategies and their potential contributions are as follows:
Strategy: Embrace hyper-automation by integrating artificial intelligence, machine learning, and robotic process automation. Optimize entire business processes, accelerating tasks and ensuring precision.
Contribution: Enhanced speed, accuracy, and adaptability across sectors, from retail to healthcare.
Strategy: Smaller and mid-sized companies should redefine customer and employee experiences. Leverage data analytics, sentiment analysis,
The Make in India initiative has definitely helped in boosting international trade. It has successfully attracted FDI from 101 countries across various sectors. By continuing to create an investor-friendly climate, India can encourage more foreign investment, leading to increased production and exports. Moreover, collaborating with other countries, forming trade agreements, and participating in global supply chains can expand India’s reach and increase exports. To achieve this vision, a skilled workforce is a MUST for quality production. Investing in skill development programs will enhance India’s manufacturing capabilities and competitiveness. By leveraging these strategies, India can strengthen its position in international trade, foster economic growth, and realize the vision of a self-reliant and globally competitive nation.
and AI to tailor personalized interactions.
Contribution: A customer-centric approach enhances productivity, attracts talent, and challenges larger corporations.
Strategy: Expand services to emerging markets beyond India.
Contribution: New industries recognize operational efficiency, streamlining processes, reducing costs, and accelerating growth.
Sanjay Desai: When our PM Mr Modi Ji visited USA during June 2023, he declared a slew of business deals with the US and other countries like UAE and Australia. India can leverage Make in India initiative to create new monetization models by diversifying our global supply networks. Let us look at a few strategies that will allow India to achieve sustainable growth in MII.
Promote Health care and medical tourism – India has been investing in quality healthcare infrastructure to provide world class medical services. Now is the right time to work on Visas and travel regulations to attract foreign visitors to India for using our medical facilities
Financial programs meeting global standards – Encourage Fintech start-ups and innovative financial solutions internationally. Increase the outreach of our financial sectors in neighboring regions like the GCC countries and / or SEA countries.
Skills development / knowledge transfer – Encourage continuous learning by upskilling our labour force through online courses. Promote digital literacy and advanced technology curriculum amongst the workforces.
Export promotional councils – Establish export promotion councils who can provide guidance. Participate in various trade missions internationally to gain access to critical information that can determine our approach.
Promote Green Manufacturing –
Indian Government and major industries houses should promote adoption of environment friendly and sustainable agricultural as well industry manufacturing practices. Incentivize the use of renewable energy sources to reduce carbon footprint.
The government is investing substantial money in focused initiatives like Smart Cities / Industrial corridors. We have some great examples of PPP like DMIC (Delhi Mumbai Industrial Corridor) Sagarmala (SEZ) projects. How will these impact India's aspirations in making MII the driver for our growth?
These infrastructure focused initiatives are one of the key enablers to make MII a big success.
Ravikant Parvataneni: We have probably not done enough on this front and the government needs to pick up pace and spread such things across the country rather than just in some pockets. Without proper infrastructure, things might start positively but will not keep up pace as required, and hence a robust supporting infrastructure needs to be in place to make MII the key driver of our growth.
Nitin Joshi: Make in India focused initiatives like Smart cities and Industrial corridors aim to transform the country into a global manufacturing powerhouse.
Boosting Manufacturing and Industrial Growth: The initiative has attracted investments, fostered innovation, and created employment opportunities. It contributes to industrial growth by promoting domestic manufacturing and reducing import dependency. The manufacturing sector is expected to reach US$ 1 trillion by 2025, contributing about 25% to India's GDP.
Key Sectors and Priorities: The government has identified 25 key sectors, including automobiles, textiles, pharmaceuticals, electronics, defense manufacturing, renewable energy, and aerospace. These sectors receive focused attention and policy support to drive growth and development.
Reducing Import Dependency: By promoting local manufacturing, India aims to reduce reliance on imports. This strengthens the country's economic resilience.
Collaboration and Public-Private Partnerships: The initiative emphasizes collaboration between the government and industry stakeholders. Regular consultations, policy reforms, and sectorspecific initiatives create a conducive environment for businesses to thrive.
Sanjay Desai: Government of India is developing 10-11 Industrial Corridors Projects across the country in phased manner over next 10 years. DMIC is one of the early ones to be launched. Such investment will enhance our ability to develop rural as well as semi-urban areas for future growth. Let us look at the areas that MII will compliment to fuel India’s growth over next three to four decades.
Development of SMART Cities – Developing rural and urban infrastructure like transport, utilities, communication networks, providing reliable power and water supply critical for industrial operations.
Connected platform and systems – MII initiative will create interconnected industrial sectors using technology to facilitate seamless logistics & transportation services between manufacturing plants/ Data centers and Warehouses.
Foreign direct investment (FDI) influx – As MII initiatives gain traction with more industries coming under the scope, it will form a world-class manufacturing hub, which will attract the foreign companies to directly invest in India.
Promoting a sustainable and continuous operations – Make in India initiative will promote sustainable / continuous operations using circular economy principles and green manufacturing practices. It will also focus on resource management, waste management and use of renewal energy in advanced manufacturing.
Improving skills development in labor is crucial for India to become a leading manufacturing hub. How do you see the role of Academics and Indian Corporations playing a pivotal role in this growth?
Collaboration between academia and industry fuels original product development, enhances economic growth, and ensures global competitiveness.
Subodh Nagarsekar: The skill development landscape in India is a mix of government led initiatives, private sector participation, and community driven programs. Leading Indian corporates have recognized the need to bridge the skill gap and have partnered with training institutions to offer industry relevant skill development courses to create a workforce aligned with contemporary industry demands. Majority of the jobs @ 70% are generated in companies with manpower of less than 20 people. This is more so in the manufacturing industry, and it is therefore critical that small companies and other employers verify and validate the job roles and performance metrics from their perspective and adapt them to suit their requirements. For higher levels of competencies and expertise, exposure to practical work experience is a must. The Corporate Sector should open its doors to interns and trainees in large numbers – through on-the-job training opportunities. The corporates need to work closely with academic institutes like ITIs, which may help them design courses pertaining to industry standards and industry requirements.
Ravikant Parvataneni: We are at a very critical stage in our manufacturing initiative and if we don’t take actions to match skills & academics to what the industry/corporates need, we might risk missing the manufacturing bus. With manufacturing taking a backseat to services (dominated by IT) over the last 15+ years, most of the colleges have adjusted their academics to push out what the industry has demanded, ie. IT/Computer Science professionals. In this process, most of the colleges just do not recruit for core engineering branches (Mechanical, electrical, etc.). If manufacturing has to be really big,
we will need many more core engineers. The challenge is even if we start action today, it will take 5-6 years for the first batch of such engineers to come out and start contributing. Apart from this there is big disconnect of academics with the industry in India. The corporates and academicians have to come forward and engage with each other much more closely at all levels, be it setting the curriculum, offering industry experience/internships including job offers/ apprenticeship/ trainings, etc. The closer the bond between the academics and the industry, the better will be the product, leading to a successful transition to make India as a leading manufacturing hub of the world.
Nitin Joshi: Academics and Indian corporations indeed play pivotal roles in India's manufacturing growth. Let's explore how:
Innovation Ecosystem: Fostering collaboration between industry and academia is essential. By creating interdisciplinary intersections between technology, policy, and sustainability, India can spark innovative solutions.
Knowledge Creation: Engineers and researchers collaborating with companies can develop tailored products, solutions, and intellectual property (IP). This culture of knowledge transfer drives continuous innovation.
Reducing Costs: By partnering with universities and research institutions, manufacturers can leverage cutting-edge knowledge to embrace transformative innovations, leading to reduced costs and improved resource efficiency.
Skill Development and Research:
R&D Investment: Rising investment in research and development (R&D) through corporate and academic avenues has attracted global companies to set up manufacturing operations in India.
Academic Expertise: Academic institutions contribute to parallel
life-cycle assessments, identifying value chain hotspots, and optimizing resource use.
Driving Innovation: Public research institutions play a crucial role in the innovation profile of sectors like automotive manufacturing.
Low-Carbon Transition: The urgency to combat climate change demands a swift transition to a low-carbon future. Manufacturers hold immense power to accelerate sustainability efforts.
End-to-End Impact: From materials and energy consumption during manufacturing to end-of-life design, manufacturers can drive sustainable practices.
How does improving access to financial resources and inclusivity contribute to the growth of MII initiative? And how will this help our SME brothers to leverage these benefits?
Financial resources and inclusivity empower SMEs, enabling them to contribute to India's manufacturing growth. By leveraging these opportunities, fashion and retail SMEs can expand, innovate, and compete globally.
Sanjay Desai: Financial inclusion means individuals and businesses have access to useful and affordable financial products and services that meet their needs –and are delivered in a responsible and sustainable way. Financial Inclusion is also one of the 17 Sustainable Development Goals. Let us understand how financial resources will contribute to the growth of MII initiative…
Solve societal challenges: Financial inclusion helps to solve a number of societal issues, such as economic growth, employment, poverty, and income inequality. Financial support enables businesses to scale up and compete in international markets and boost exports to strengthen India as a brand.
The skill development landscape in India is a mix of government led initiatives, private sector participation, and community driven programs. Leading Indian corporates have recognized the need to bridge the skill gap and have partnered with training institutions to offer industry relevant skill development courses to create a workforce aligned with contemporary industry demands. For higher levels of competencies and expertise, exposure to practical work experience is a must. The Corporate Sector should open its doors to interns and trainees in large numbers – through on-the-job training opportunities. The corporates need to work closely with academic institutes like ITIs, which may help them design courses pertaining to industry standards and industry requirements.
Access to financial capital for SMEs: Improved access to working capital helps SMEs manage their daily operations smoothly, reducing the risk of liquidity crunches. This allows SMEs to undertake larger projects and expand their market reach by investing in right resources.
Digital financial services: India is home to multiple financial services models. It enables SMEs to apply for loans, manage accounts, and make transactions online. Some of these services also offer alternative financing options such as peer-topeer lending and crowdfunding.
Enhance educational/ training capabilities: Better access to financial capital allows SMEs to invest in educational and skill development programs. These capabilities help SMEs to be creative & inclusive in their development approach.
Nitin Joshi: Improving access to financial resources and promoting inclusivity play crucial roles in the growth of the Make in India initiative. Let's explore how these factors contribute and benefit SMEs in the fashion and retail industry:
Capital Availability: Adequate funding enables businesses to invest in technology, infrastructure, and skilled labour. Make in India
encourages financial institutions to support manufacturing and innovation, ensuring SMEs have access to loans, venture capital, and working capital.
Export Financing: Access to export credit and trade finance helps SMEs participate in global markets. Inclusivity
Skill Development: Make in India emphasizes skill enhancement. SMEs can benefit from a skilled workforce trained in modern manufacturing techniques, improving productivity and product quality.
Technology Adoption: Inclusive policies encourage SMEs to adopt digital technologies, automation, and Industry 4.0 practices. This enhances efficiency, reduces costs, and improves competitiveness.
Local Procurement: The Public Procurement (Preference to Make in India) Order 2017 promotes local industry by giving preference to public procurement. SMEs can participate in government contracts and supply chains.
Aspirations are fast converging across urban and rural India, and better access will transform this intent into actual spend which translate into trade / manufacturing. How do you see
The convergence of aspirations can be a catalyst for inclusive growth, innovation, and a vibrant manufacturing ecosystem. Policymakers, industry leaders, and local communities must collaborate to harness this potential effectively.
Nitin Joshi: The convergence of aspirations across urban and rural India indeed holds significant implications for the ‘Make in India’ initiative. Let's explore how this transformational shift might impact the program:
Increased Domestic Demand:
As aspirations translate into actual spending, the demand for goods and services will rise. This surge in domestic consumption can drive manufacturing growth, encouraging more companies to produce within India.
Sectors: Traditionally, "Make in India" has focused on sectors like automobiles, electronics, and textiles. With increased spending, there's an opportunity to diversify into newer areas such as renewable energy, healthcare devices, and consumer electronics.
Rural Entrepreneurship
Development: Rural aspirations can fuel entrepreneurship. Skill development programs can empower rural youth to participate in manufacturing and contribute to the ‘Make in India’ vision.
Infrastructure and Logistics Improvements: As spending patterns shift, there will be a need for better infrastructure, logistics, and supply chain networks. Investments in these areas can enhance the ease of doing business and attract more manufacturing investments.
Digital Transformation and E-Commerce: Urban-rural convergence is closely tied to digital connectivity. E-commerce platforms can bridge the gap, enabling rural consumers to access products and services, thereby boosting local manufacturing.
Sustainable Practices and Circular Economy: As spending increases, there's an opportunity to promote sustainable manufacturing practices. Circular economy models can reduce waste and enhance resource efficiency.
While domestic demand is vital for sustainable growth, we all know that the real scales and mass production shifts happen when we go cross-border big time. How can India leverage MII to increase our International trade more?
India needs a multifaceted approach to grow our international trade capabilities and expand our trade network.
Subodh Nagarsekar: Increased disposable income coupled with rapid urbanization is prompting people to spend more on household appliances. India therefore is experiencing a surge in demand for computers, mobile phones, television sets and other electronic & kitchen appliances. The Make In India initiative is giving a further push to manufacturing of these products locally. In the last two Union Budgets, the government has reduced or exempted taxes on certain components and parts to bring down the cost of manufacturing. Apart from these, reduced customs duties on import of electronic items are helping India compete with China and Vietnam as a low cost manufacturing destination. India can certainly boost exports of mobile phones and other electronic equipment to other parts of the world.
Ravikant Parvataneni: That’s definitely
going to help us a lot. While India is going to be the biggest consumption market, the consumption patterns will remain relatively lower. In that case, our thrust on boosting exports will only help us reach our ultimate vision of $5 trillion economy in the desired timeframe. Exports also help us understand global market dynamics, latest technological insights, consumer behavior, etc. As profitability gets a boost by servicing global clients, our entire economy gets a big boost. If we are able to strike the right balance between catering to the domestic demand and exports, we will be able to achieve our target much faster than we would be able to achieve by just focusing on the domestic market.
Sanjay Desai: We have been doing very well in the last decade or so. As of June 2024, our total exports value will grow by 8% over the year 2023. Using MII as a leverage, India can gain a firm footing in the international market by instituting major initiatives/ efficiencies. Let us look at a few of them.
Create performance leverage or advantage using the latest technology and adopting international quality standards.
Develop dedicated Export Hubs and special economic zones to facilitate efficient manufacturing and export processes.
Integrate with global supply chains using our excellent manufacturing capabilities and availability of skilled labour.
Build a global brand by promoting Indian made products for foreign brands which will enhance our manufacturing image in the international market.
Adopt sustainable standards which are common across the globe in manufacturing / storage and distribution. This will cater to the ever-increasing diaspora of ecoconscious customers.
Technology-enabled new business models will leverage our domestic consumption. What will be the impacts of such new models
taking shape in the next 5 years? India's technology-driven business transformation will unlock the value of data, exploit emerging technologies, and drive sustainable growth across various sectors.
Subodh Nagarsekar: India is one of the fastest-growing economies in the world. By 2030, it is on course to witness a 4X growth in consumer spend. India is slowly moving towards Intelligent manufacturing using technologies like Artificial Intelligence (AI), Machine Learning (ML) or IoT. India will witness huge changes in domestic consumption patterns over the next 5-10 years. For instance, IoT-enabled home automation systems can help users save on energy bills by automatically turning off lights and appliances when not in use. Similarly, smart washing machines can optimize water usage based on load size, reducing water wastage and cutting down on utility bills. This will drive a surge in demand for technology driven electronic equipment. Another sector which may benefit hugely from AI is the healthcare industry. Diagnosis and path to treatment may not need medical experts. AI may help faster development of life saving drugs at low cost. Healthcare may therefore become more affordable in rural areas. The other two industries which will be driven largely by technology are the Education Sector and the Automobile Industry. People may spend more on highly sophisticated vehicles. Education sector will open out by personalized Learning processes or customized curriculum, thereby making higher education more affordable to Indian households.
Sanjay Desai: As India is moving up the scale in IT / Hardware / Technology, new models of monetization are being developed. These models will transform various sectors, driving growth, efficiency, and consumer satisfaction. This transformation will have profound impacts on India's domestic consumption over the next two/ three decades. The current Govt is fully committed to support these technological advancements to ensure their positive impact on the economy and society. Let us visit a few key impact bullets!
Technology enabled educational
growth – Covid-19 taught all of us that everything can be moved to online, for example online education platforms. These platforms are providing learning opportunities, enhancing skills and employability, in urban as well as rural India.
New models of monetization in healthcare – Telemedicine and digital health platforms are providing greater access to healthcare services, improving health outcomes, and driving demand for health-related products.
Start-up ecosystem – India has become home to many millions of start-ups in less than a decade. Technology is making it easy to enter the markets, reducing entry barriers each year for young startups. This growth in the start-up ecosystem is driving innovation, leading to development and business models.
Alternate service models – Alternate service models are rising fast which are asset-light and they operate as either Pay-Per-use or subscription-based charges. These models have become popular, offering consumers continuous access to services while ensuring steady revenue streams for businesses.
Nitin Joshi: The emergence of technology-enabled business models in India is poised to have significant impacts over the next five years. Here are some key trends and potential effects:
Digital Transformation Acceleration:
Since the pandemic began, businesses have rapidly adopted digital solutions. This acceleration has been a catalyst for engaging customers, empowering employees, optimizing processes, and transforming products online. Expect continued investment in digital technologies, including cloud computing, data analytics, and automation.
and Smartphone
Penetration: India is one of the fastest digitizing economies globally, with half a billion internet users (expected to double by 2025) and 350 million smartphone users (expected to triple by 2025). This digitization wave will enable new business models, enhance customer experiences, and drive innovation.
Business Model Innovation: Indian companies need to transition from founder-led approaches to implementing professional processes and devising new business models. Innovations in supply chain, logistics, and warehousing will play a crucial role in sustainable growth.
Revenue from Digital Business Models: Approx. 60% of Indian
enterprises' revenue is expected to come from digital business models in the next three years. Digital disruption is essential for enhancing customer satisfaction, boosting revenue, and fostering innovation.
Sanjay
The transition of development between urban to rural India is further enhanced by better access to finance, technology, training & development programs. And this is presenting a significant opportunity for the ‘Make in India’ (MII) initiative to drive trade and manufacturing growth. India can transform these aspirations into tangible economic benefits, positioning itself as a leading global manufacturing hub. Here’s how MII can capitalize on these shifts.
Build scale and market outreach: Setting up manufacturing units closer to rural markets will build massive scale, which will help reduce costs and improve agility in supply chains.
Multi-stakeholder partnerships: Collaborative partnerships, either within India and on an international level, will bring scale to develop infrastructure, provide financial support, and drive innovation in both urban and rural manufacturing sectors.
Boost domestic production and consumption: Promoting domestic industries (Farming, Food Manufacturing) in rural areas will add value to agricultural produce, increase farmers' incomes, and enhance rural economic stability. It will also provide jobs for the local diaspora.
Rising rural consumption: As industries are shifting to rural areas, the rural standards are rising. This will stimulate manufacturing and consumption in rural areas creating opportunities for new manufacturing lines, warehousing, infrastructure, etc.
“We need to glamorize the manufacturing or the shopfloor jobs just like the services sector so that people are enthused to join the manufacturing cadre and not shy away from it. Otherwise, the Aatmanirbhar or the ‘Viksit Bharat’ vision of the country will not fructify in a seamless manner. This is my pushback to the whole manufacturing and supply chain community,” remarks Sreenivas Rao Nandigam, Global Head – Supply Chain, Sun Pharma, during this exclusive interaction…
How do think pharma as an industry is shaping the Indian economy?
Pharma industry is roughly about $60 billion industry, having equal contribution in domestic markets as well as exports, comprising roughly about $30 billion domestic and $30 billion exports. It’s actually a growing industry because it’s not a discretionary spend unlike consumer goods industry. Just like any other industry, the key thing driving the pharma market is innovation. Over the years, the industry has shifted towards bringing value-added products, which can happen only through innovation. As we move forward, I am confident that pharma as an industry will grow ahead of the GDP in the country at around 12% CAGR for the next decade.
What do you have to say about the job creation scenario?
As we all know that India is known as the ‘Pharmacy of the World’. Just to give you an example, about 40% of the pills that are consumed in the US are being manufactured in India. Just to offer you an interesting anecdote… earlier we used to have BPOs, which later became KPOs and now they are being termed as Global Capability Centers (GCC). I know a few
pharma companies who are employing over 30,000-40,000 people at these GCCs. There are varied job profile of people, some are doing regulatory work for the world from India while some are doing legal work for global companies from India. This only reflects the potential of job creation that the pharma industry holds.
How do you think digitalization is impacting the pharma industry?
Digital is the name of the game. There is so much action happening in the pharma world whether it is in terms of innovation of molecules, or any other aspect. Today Google is talking about doing the mathematical modelling of a human being and trying to dose drugs on those mathematical models, which is aimed at reducing a new drug innovation timeline to 3 years including the human test, which used to take about 10-12 years. if successful, such experiments will dramatically reduce the cost required for drug discovery. While we are still lagging behind when it comes to adapting new age technologies, if changing times are any signs to go by, we are moving in the right direction.
If we go three decades back, the pharma industry was driven by acute therapies. Slowly it has shifted to chronic therapies comprising of lifestyle diseases such as blood sugar or blood pressure. My gut feel is that slowly and steadily things will actually shift from curing to prevention. This is one megatrend I foresee in the pharma industry. The next generation needs to actually start moving from consuming pharma products which are curative and shift towards preventive therapies.
What are the trends shaping up in the pharma industry?
If we go three decades back, the pharma industry was driven by acute therapies. Slowly it has shifted to chronic therapies comprising of lifestyle diseases such as blood sugar or blood pressure. My gut feel is that slowly and steadily things will actually shift from curing to prevention. This is one megatrend I foresee in the pharma industry. The next generation needs to actually start moving from consuming pharma products which are curative and shift towards preventive therapies.
What do you think is the impact of ‘Make in India’ for Indian economy?
India’s growth is primarily led by service
sector while China’s growth has completely been driven by manufacturing. When it comes to manufacturing in India, there are building blocks in the form of policy initiatives being taken by the government such as PLI schemes, developing SEZs, logistics parks, freight corridors, etc. Having said that, the missing link here is that we need to glamorize the manufacturing or the shopfloor jobs just like the services sector so that people are enthused to join the manufacturing cadre and not shy away from it. Otherwise, the Aatmanirbhar or the ‘Viksit Bharat’ vision of the country will not fructify in a seamless manner. This is my pushback to the whole manufacturing and supply chain community.
How is new age infrastructure facilitating growth?
While we have done a lot of work in infrastructure development, it’s still not enough to meet the burgeoning demand of the country and meet exports targets at the same time. The quality of infrastructure is more important for us than the amount of infrastructure projects being developed. We need to work towards advancing cold chain infrastructure, which is still lagging than other countries and that’s one of the crucial areas if we need to enhance our competitiveness in the global market.
“The FMCG sector, with its dynamic nature and extensive reach, is uniquely positioned to collaborate with various industries to drive growth and innovation. These cross-industry collaborations can lead to significant advancements in product development, supply chain efficiency, customer engagement, and sustainability,” emphasizes Sanjeev Setia, Supply Chain Expert & Former VP – Supply Chain, Haldiram Snacks, during this interview…
What has been the role of FMCG sector in India’s journey towards a $5 trillion economy?
The FMCG sector has a ‘burgeoning economic footprint’, which exceeds Rs9.1 trillion and has a pivotal role in driving India’s economic growth and employment generation. The FMCG sector’s resilience and adaptability, coupled with robust government support and digital transformation initiatives, position it favourably to navigate through uncertainties and emerge stronger. The FMCG, being the fourth largest industry, is predicted to grow at a 14.9% CAGR to $220 billion by 2025, up from $167 billion in 2023. The industry employs a total workforce of 3 million, comprising 8.4% of the total factory employment, with women accounting for 13% of this workforce, equivalent to 390,000 individuals, and representing 18% of corporate leadership positions. With a booming economy, rising consumer spending, and technological advancements, the Indian FMCG industry is poised for further expansion. The FMCG sector is expected to clock a sustained growth rate of 7-9% in 2024, supported by government initiatives to stimulate consumption and create job opportunities.
As India strives to achieve a $5 trillion economy, the FMCG sector will play a pivotal role in this journey. The FMCG sector, with its extensive reach and significant contribution to the GDP,
is uniquely positioned to drive economic growth.
Development:
The FMCG industry is one of the largest employers in India, providing direct and indirect employment opportunities across the value chain. From manufacturing to retail, the sector offers numerous jobs, particularly in rural areas. For example, ITC, a major player in the FMCG sector, has created extensive employment opportunities through its e-Choupal initiative, which supports farmers and rural entrepreneurs. This initiative not only enhances agricultural productivity but also fosters rural development and employment.
Rural Market Penetration: The FMCG industry’s deep penetration into rural markets is crucial for inclusive growth. By expanding its reach to rural areas, the industry can boost consumption, enhance living standards, and stimulate local economies. For instance, Hindustan Unilever’s “Project Shakti” empowers rural women by training them to become direct-to-home distributors of HUL products. This initiative not only expands HUL’s rural reach but also promotes entrepreneurship and economic independence among rural women.
Thus, the FMCG sector is integral
Sanjeev Setia is a seasoned supply chain professional with 25+ years of experience in the diverse areas of Supply Chain Management, Manufacturing, Operations, Customer Service and Systems implementation with organizations in the Dairy & Food Processing Industry. He has a successful track record in managing Supply Planning & Deployment, Materials Management and Inventory control & Obsolescence Control.
Customization & Premiumization are two biggest trends that we will witness in FMCG. That is why industry players are looking to create experiences and encourage their consumers to share their experiences with the product. Many companies invest in digital capabilities to enable more personalized communication via social media and community management. We are also seeing a noticeable shift towards eco-friendly packaging and sustainable sourcing of raw materials. Another notable trend for 2024 centers around consumers’ heightened awareness of product ingredients. With a focus on making swift and informed choices regarding nutritional content, consumers are actively scrutinizing product formulations. The industry is expected to witness a sustained focus on conscious snacking, striking a delicate balance between health and taste. This trend is likely to be fueled by the growing preference of the working population for convenient foods that are not only tasty but also high in nutritional value.
to India’s journey towards a $5 trillion economy. Through job creation, rural market penetration, local sourcing, supply chain improvements, innovation, and export growth, the FMCG sector can drive significant economic growth and development.
What has been the impact of ‘Make in India’ on the FMCG Sector in India?
The ‘Make in India’ initiative, launched in 2014 by Prime Minister Narendra Modi, has been a transformative force across various sectors in India, including the FMCG industry. This ambitious initiative aims to turn India into a global manufacturing hub and has significantly impacted the FMCG sector.
Boost in Domestic Manufacturing:
The ‘Make in India’ initiative has encouraged FMCG companies to enhance their manufacturing capabilities within the country. For example, Hindustan Unilever (HUL), one of the largest FMCG companies in India, has increased its manufacturing footprint, setting up new plants and expanding existing facilities. This not only helps in meeting the rising domestic demand but also positions India as an export hub.
Innovation and Product Development: The initiative has spurred innovation and product development tailored to the Indian market. For instance, Dabur, a leading FMCG company, has developed numerous products that cater specifically
to the needs and preferences of Indian consumers, such as Ayurvedic and herbal products. This focus on local innovation has made these products more relatable and attractive to the domestic market.
The ‘Make in India’ initiative has provided a significant impetus to the FMCG sector, fostering domestic manufacturing, job creation, local sourcing, innovation, and foreign investment. By addressing the existing challenges and leveraging the opportunities presented by this initiative, the FMCG industry can play a pivotal role in India’s journey towards becoming a global economic powerhouse.
What’s the crucial role of infrastructure development in the FMCG sector in India?
Infrastructure development, encompassing rail, road, air, and waterways, is pivotal for the growth and efficiency of the FMCG sector in India.
Efficient Supply Chain Management: A robust infrastructure network ensures the efficient movement of goods from manufacturers to consumers. Roads are the backbone of FMCG distribution in India. For instance, HUL relies heavily on an extensive road network to reach over 7 million retail outlets across the country. Efficient road infrastructure reduces transit times, ensures timely deliveries, and lowers transportation costs. To give you an instance, the Golden Quadrilateral highway network, which connects major cities like Delhi, Mumbai, Chennai, and
Kolkata, has significantly reduced travel time and improved logistics efficiency for FMCG companies.
Expansion of Market Reach: Improved infrastructure, including rural roads, enables FMCG companies to penetrate deeper into rural markets. This expanded reach is crucial for companies like ITC and Dabur, which have significant portions of their consumer base in rural areas. The Pradhan Mantri Gram Sadak Yojana (PMGSY) has been instrumental in connecting rural areas to urban centers, allowing FMCG companies to distribute products more widely and tap into previously inaccessible markets.
How do you think digitalization is impacting the FMCG sector?
Digital transformation turns out to be a game changer in FMCG space. With the new technological innovations of AI, the gathering, and analysis of data on consumer behavior, history, market trends, customer customer-friendly interfaces have made it easy to set the demands of consumers. Another interesting trend that we are witnessing is the way in which AI is shaping the traditional shopping experience of customers by quickly and accurately analyzing data and revolutionizing the online purchase of products. Technology such as predictive analytics and machine learning capabilities are facilitating companies in continually monitoring the supply chain and taking quick decisions about potential disruptions, thereby
Digital transformation turns out to be a game changer in FMCG space. With the new technological innovations of AI, the gathering, and analysis of data on consumer behavior, history, market trends, customer customer-friendly interfaces have made it easy to set the demands of consumers. Technology such as predictive analytics and machine learning capabilities are facilitating companies in continually monitoring the supply chain and taking quick decisions about potential disruptions, thereby augmenting end-to-end visibility and transparency.
augmenting end-to-end visibility and transparency.
What are the opportunities for collaboration between FMCG and other industries to drive growth and innovation?
The FMCG sector, with its dynamic nature and extensive reach, is uniquely positioned to collaborate with various industries to drive growth and innovation. These cross-industry collaborations can lead to significant advancements in product development, supply chain efficiency, customer engagement, and sustainability.
Opportunity: Leveraging technology for enhanced customer insights, supply chain optimization, and personalized marketing. HUL has partnered with Google to use artificial intelligence and machine learning to understand consumer behavior better. This collaboration helps HUL tailor its marketing strategies and product offerings to meet specific consumer needs, resulting in increased sales and customer satisfaction.
Sector Opportunity: Ensuring a steady supply of high-quality raw materials and promoting sustainable agricultural practices. Nestlé India has collaborated with local farmers through backward Integration, providing Dairy Farmers with training on sustainable farming practices and modern dairy techniques. This partnership ensures a reliable supply of quality milk for Nestlé’s dairy products while supporting the livelihoods of local farmers.
How can e-commerce be a growth driver for FMCG?
E-commerce has revolutionized the FMCG sector in India, driving significant growth through this channel. This transformation is influenced by several factors, including increased internet penetration, smartphone usage, changing consumer behavior, and innovative business models. Companies like Hindustan Unilever and ITC have ramped up their digital presence and invested heavily in e-commerce platforms. Quick Commerce, Zepto, Blinkit, Big Basket, etc., has seen a significant growth in the recent years on the back of convenience and lightning fast deliveries. During the pandemic, HUL launched its own directto-consumer platform, The Happy Shop, allowing consumers to purchase products directly online. This digital shift brings logistical challenges and the need for robust digital infrastructure. Companies can overcome these challenges by investing in advanced supply chain technologies, real-time tracking systems, and enhancing their digital marketing strategies to ensure a seamless online shopping experience.
What are the trends Shaping the FMCG sector in India?
The FMCG sector in India is undergoing a remarkable transformation driven by several key trends. Top 3 trends would be:
Health and Wellness Focus: Consumers are increasingly seeking healthier options. Gauging this latent opportunity, Nestlé India has launched a range of health-oriented products like fortified cereals and organic foods. But there are challenges as well because companies must ensure that these products meet stringent health standards and gaining consumer trust. For this, they must invest in rigorous R&D and collaborate with health experts to validate health claims. Transparent communication
about the health benefits and ingredients can build consumer trust and loyalty.
There’s a growing segment of consumers willing to pay a premium for highquality and innovative products. Brands like Cadbury have capitalized on this by introducing premium chocolate lines such as Cadbury Silk and Cadbury Dark Milk. However, high competition and price sensitivity among consumers, can deter this growth. To circumvent this, FMCG companies can focus on differentiating their premium products through unique ingredients, superior quality, and compelling marketing campaigns that highlight the exclusive benefits and experiences their products offer.
Local and Regional Brands: Local and regional brands are gaining popularity due to their cultural relevance and perceived authenticity. Brands like Parle and Haldiram Snacks have a strong regional appeal and continue to thrive by offering products that resonate with local tastes. Having said that, competing with well-established multinational brands might pose a challenge. To mitigate this, larger FMCG companies can adopt a more localized approach by tailoring their products to meet regional preferences. Collaborating with local suppliers and brands can also enhance authenticity and market reach.
Thus, the FMCG industry in India is at an exciting crossroads, driven by digital transformation, health and wellness trends, sustainability, premiumization, local appeal, and personalization. While these trends bring challenges, companies that invest in technology, innovation, and sustainable practices will be wellpositioned to overcome them and thrive in this dynamic market.
The sun, a seemingly boundless source of clean energy, holds the key to a sustainable future. With the International Renewable Energy Agency (IRENA) setting a target of 10% of global electricity demand met by solar power by 2050, the role of the solar energy supply chain becomes paramount. This analysis by Vanshaj Srivastava, Senior Manager, SCM Strategy and Ops, Reliance Industries Ltd., delves into the complex network that delivers solar energy from raw materials to our homes and businesses.
HARNESSING solar power requires a complex global network – the solar energy supply chain. This intricate dance starts with mining raw materials like silicon and transforms them into the solar panels that generate clean electricity for our homes and businesses. The journey continues through material processing, panel manufacturing, global distribution, and finally, responsible end-of-life management, ensuring solar panels are recycled or disposed of sustainably.
To understand and optimize this complicated system, we turn to the Supply Chain Operations Reference (SCOR) model. This industry-standard framework provides a comprehensive lens for analyzing supply chains across various sectors. It dissects complex systems into core processes, allowing us to identify current strengths and weaknesses, navigate challenges, and illuminate opportunities for improvement.
In this analysis, we'll utilize the SCOR model to delve into the solar energy
supply chain. By examining each stage, from planning and sourcing raw materials to manufacturing, delivery, and endof-life management, we'll identify areas for improvement and unlock the full potential of solar energy for a brighter, more sustainable future.
The SCOR model provides a comprehensive framework to dissect the solar energy supply chain. It encompasses five key processes:
Plan (Strategic Planning & Network Design): This process lays the foundation for the entire supply chain, defining strategies for sourcing, production, delivery, and end-of-life management.
Source (Procurement & Supplier Management): This process focuses on identifying and managing suppliers of raw materials and components for solar panels.
Vanshaj Srivastava leverages his strategic prowess at Reliance Industries, where he architects the supply chain for their burgeoning Solar Business. His expertise extends beyond corporate giants, as he also mentors early-stage start-ups, crafting winning go-to-market (GTM) strategies and meticulous expansion plans that empower them to thrive. A true sustainability advocate, Vanshaj embodies the philosophy, ‘Let your joy be in your journey – not in some distant goal.’ This guiding principle fuels his dedication to building a more sustainable future, evident not only in his professional ventures but also in his personal advocacy for environmental responsibility.
Make (Manufacturing & Production): This process encompasses the transformation of raw materials into finished solar panels, including quality control and efficiency optimization.
Deliver (Logistics & Distribution): This process ensures the efficient and timely delivery of solar panels to installers and consumers worldwide.
Return (Reverse Logistics & End-of-Life Management): This process deals with the collection, recycling, and disposal of solar panels at the end of their lifespan to minimize environmental impact.
Let’s deep dive into each process…
Current Landscape: The global solar PV market is thriving, reaching a record high of $135.7 billion in 2023. China dominates production, holding a 92% market share in polysilicon (a key material) and an 84% capacity in solar module production. This dominance leads to components traveling vast distances (over 8,000 kilometres) before reaching their final destinations.
Challenges: Geopolitical risks stemming
from trade disputes and tensions can disrupt supply chains. Long distances contribute to logistical complexity and a higher carbon footprint. Additionally, market volatility due to fluctuating demand and raw material prices can destabilize the supply chain.
Opportunities: Regional diversification of manufacturing can reduce dependence on a single region and enhance resilience. Advanced planning systems employing forecasting tools can improve demand prediction and inventory management. Integrating sustainability into strategic planning minimizes environmental impacts and aligns with global goals.
Current Landscape: Polysilicon, accounting for roughly 40% of a solar panel's manufacturing cost, is a critical material with China dominating its production. The supplier base for raw materials and finished solar panels is heavily concentrated in Asia, particularly China.
Challenges: Reliance on a limited number of suppliers creates vulnerabilities to disruptions. Ethical sourcing practices, ensuring fair labor conditions and responsible material extraction, are increasingly important. Long-distance transportation of
raw materials and finished products contributes significantly to the carbon footprint.
Opportunities: Diversifying the supplier base across different regions can mitigate risks and enhance resilience. Prioritizing sustainable and ethically sourced materials improves the environmental and social impact of the supply chain. Building strong, collaborative partnerships with suppliers fosters innovation and improves transparency throughout the chain.
Current Landscape: Asia, with China being the leader, dominates solar panel manufacturing. Technological advancements like perovskite solar cells promise higher efficiencies and potentially lower production costs.
Challenges: Rapid technological advancements can render existing manufacturing processes obsolete, requiring continuous investment in research and development (R&D). Maintaining consistent quality across a dispersed manufacturing network can be challenging. Additionally, manufacturing processes contribute to the overall carbon footprint of solar panels.
Opportunities: Investing in
Growing efforts are underway to develop efficient recycling processes for solar panels to recover valuable materials like silicon and silver and reduce waste. Investing in R&D for innovative and cost-effective recycling technologies can significantly enhance sustainability. Implementing extended producer responsibility (EPR) programs can ensure manufacturers take responsibility for the end-of-life management of their products, fostering innovation in recycling solutions. Additionally, adopting circular economy models that prioritize product design for disassembly and material reuse can minimize waste and maximize resource efficiency.
automation and advanced manufacturing technologies can enhance production efficiency and reduce costs. Local manufacturing capabilities can shorten supply chains and minimize transportation emissions. Implementing energy-efficient and environmentally friendly practices like using renewable energy sources for powering plants can significantly improve the sustainability of manufacturing processes.
Current Landscape: Finished solar panels often travel vast distances due to globalized production and market distribution, contributing to logistical complexity and a higher carbon footprint. The rising demand for solar energy necessitates efficient logistics and distribution networks.
Challenges: Long-distance transportation significantly adds to the carbon footprint. Supply chain disruptions due to geopolitical tensions, natural disasters, and other unforeseen events can impact timely
deliveries. Managing logistics costs while maintaining efficiency remains an ongoing challenge.
Opportunities: Utilizing advanced planning and management tools for logistics can enhance efficiency and reduce costs. Developing specialized transport networks dedicated to solar panels can minimize handling and reduce emissions. Exploring alternative shipping methods, such as solar-powered vessels or dedicated rail networks, can further lower the carbon footprint associated with delivery.
Current Landscape: Growing efforts are underway to develop efficient recycling processes for solar panels to recover valuable materials like silicon and silver and reduce waste. Regulatory environments are also evolving, with increasing pressure for more sustainable end-of-life management practices.
Challenges: The complex nature of solar
panels, containing various materials like glass, metals, and semiconductors, poses significant challenges for efficient recycling. Ensuring the economic viability of recycling processes is crucial for widespread adoption. Complying with diverse regulatory requirements across different regions can be a hurdle for companies operating globally.
Opportunities: Investing in R&D for innovative and cost-effective recycling technologies can significantly enhance sustainability. Implementing extended producer responsibility (EPR) programs can ensure manufacturers take responsibility for the end-of-life management of their products, fostering innovation in recycling solutions. Additionally, adopting circular economy models that prioritize product design for disassembly and material reuse can minimize waste and maximize resource efficiency.
The analysis has identified key challenges
The global solar PV market is thriving, reaching a record high of $135.7 billion in 2023. China dominates production, holding a 92% market share in polysilicon (a key material) and an 84% capacity in solar module production. This dominance leads to components traveling vast distances (over 8,000 kilometres) before reaching their final destinations. Regional diversification of manufacturing can reduce dependence on a single region and enhance resilience.
that hinder the smooth functioning and sustainability of the solar energy supply chain. Here's a closer look at some of these challenges and potential mitigation strategies:
Challenge: Overreliance on a limited number of suppliers for critical materials exposes the industry to disruptions from trade disputes and geopolitical tensions.
Mitigation Strategy: Develop a geographically diverse supplier base and invest in regional manufacturing capabilities to reduce dependence on a single region and enhance supply chain resilience. Governments can incentivize domestic manufacturing through tax breaks and subsidies for green production practices.
Challenge: The carbon footprint associated with the transportation of raw materials and finished products, and the energy consumption during manufacturing, contribute significantly to the environmental impact of solar energy.
Mitigation Strategy: Implement sustainable practices throughout the supply chain. This includes promoting local manufacturing to shorten transportation distances, utilizing green logistics solutions like electric vehicles or rail transport, and adopting sustainable sourcing practices that prioritize recycled materials. Additionally, investing in energy-efficient manufacturing processes and utilizing renewable energy sources for powering plants can significantly
reduce the carbon footprint.
Challenge: Rapid advancements in solar technology, such as perovskite solar cells, can disrupt existing manufacturing processes, requiring continuous adaptation and investment.
Mitigation Strategy: Foster continuous innovation through R&D and collaboration between manufacturers, researchers, and logistics providers. This can involve joint research efforts focused on developing new, more efficient solar cell technologies and exploring automation opportunities within manufacturing. Additionally, by staying ahead of the curve through pilot programs testing and refining innovative solutions, the industry can ensure a smooth transition to new technologies.
Challenge: The rapid growth of the solar energy sector has outpaced the availability of a skilled workforce, creating a gap in expertise required for installation, maintenance, and manufacturing.
Mitigation Strategy: Bridge the skills gap by investing in training programs, apprenticeships, and vocational training specifically tailored to the needs of the solar energy sector. This can involve collaboration between governments, educational institutions, and industry leaders to develop comprehensive training programs that equip individuals with the necessary skills for design, installation, and maintenance of solar energy systems.
The solar energy supply chain presents exciting opportunities to build a more sustainable future. Here are some key focus areas:
Opportunity: Governments worldwide are prioritizing domestic solar manufacturing to create jobs, bolster energy independence, and shorten supply chains. This can contribute to a more resilient and sustainable solar energy sector.
Policy Support: Implement policies that incentivize domestic production, such as tax breaks and subsidies for green manufacturing practices.
Infrastructure Development: Invest in infrastructure development to support local production capabilities, including establishing dedicated manufacturing zones with access to clean energy sources and transportation networks.
Workforce Training: Develop comprehensive training programs to equip the workforce with the necessary skills for solar panel manufacturing, encompassing design, production, and quality control aspects.
Opportunity: Advancements in automation, from robotic handling in manufacturing to autonomous vehicles for logistics, can streamline processes,
reduce costs, and enhance efficiency throughout the supply chain.
Investment in R&D: Allocate resources for research and development to drive technological advancements in both manufacturing and logistics aspects of the solar energy supply chain. Explore automation opportunities within manufacturing and invest in R&D for autonomous delivery vehicles specifically designed for transporting solar panels.
Collaboration: Foster collaboration between industry leaders, research institutions, and logistics providers to develop and implement new technologies. This can involve joint research efforts focused on automation in manufacturing processes, exploring alternative shipping methods like solar-powered drones, and developing dedicated software for optimizing logistics and transportation routes for solar panels. * Pilot Programs: Launch pilot programs to test and refine innovative solutions before full-scale deployment. This allows for identifying and addressing potential challenges associated with new technologies before widespread adoption.
Opportunity: Embracing eco-friendly solutions throughout the entire supply chain can significantly enhance sustainability.
Sustainable Sourcing: Prioritize the use of recycled materials and sustainable alternatives in solar panel production. Encourage responsible mining practices for raw material extraction and collaborate with suppliers to implement sustainable sourcing practices throughout the supply chain.
Energy-Efficient Manufacturing: Implement energy-efficient practices within manufacturing facilities, such as utilizing energy-saving equipment and exploring renewable energy sources to power production plants.
Sustainable Logistics: Explore sustainable logistics options to minimize
the carbon footprint associated with transportation. This can involve utilizing electric vehicles for short-distance deliveries, exploring the feasibility of solar-powered vessels for longdistance ocean freight, and optimizing transportation routes to reduce overall distances travelled.
Opportunity: Governments have the power to ignite change through supportive policies and regulations that incentivize sustainable practices throughout the solar energy supply chain.
Incentivize Green Practices: Implement policies that provide incentives for green manufacturing practices, such as tax breaks or subsidies for companies using renewable energy sources or adopting energy-efficient technologies. Additionally, provide incentives for utilizing recycled materials and sustainable transportation options within the logistics network.
Support R&D: Allocate funding for research and development efforts focused on clean technologies for solar panel production, efficient recycling processes, and sustainable logistics solutions.
Workforce Development: Implement policies that support workforce development in the renewable energy sector. This can involve collaborating with educational institutions to develop training programs and apprenticeship opportunities, and providing financial aid or tax breaks to companies that invest in upskilling their workforce.
The future of solar energy is within our grasp, but it requires a collective effort from governments, industry leaders, research institutions, and individuals. Here are some key actions we can take to propel the solar energy supply chain towards a more sustainable and resilient future:
Diversification: Encourage regional production of raw materials and foster a geographically diverse manufacturing base to reduce dependence on a single region and mitigate geopolitical risks. Promote collaboration between countries to establish robust regional supply chains.
Collaboration Breeds Innovation: Foster collaboration between stakeholders to drive innovation in sustainable materials, manufacturing processes, and logistics solutions. Joint research efforts focused on areas like material science, automation, and clean energy transportation can pave the way for a more sustainable future.
Investing in the Solar Workforce: Bridge the skills gap by investing in programs that equip individuals with the skills needed for the solar energy sector. This not only ensures a readily available workforce but also fosters longterm sustainability and growth within the industry.
Transparency Throughout the Chain: Embrace increased transparency in the supply chain to ensure ethical sourcing, responsible labor practices, and minimal environmental impact. Blockchain technology can be a powerful tool for tracking materials and ensuring ethical sourcing throughout the supply chain.
By working together and embracing a collaborative approach, we can overcome the challenges hindering the solar energy supply chain and unlock its vast potential. Let's build a future powered by sunshine, not just for energy generation but for a sustainable and prosperous world. The future of solar energy is in our hands. Join the conversation and share your ideas and expertise to help us build a more resilient and sustainable solar supply chain. Let's illuminate a brighter path for generations to come.
Multimodal transportation has become one of the most favourite topics of discussion during strategic meets. Rightfully so, it has the potential to truly transform the logistical landscape of the country by effectively utilizing all modes of transportation. But have we been able to fully realize its true potential? For sure… NOT! This was one of the major focus points of deliberation during our recent event where the expert panel explored ways to integrating road, rail, air, seaways, and waterways to create a seamless transportation network, boost economic growth, and pave the way for a sustainable and prosperous future. Through this Special Report, we discover innovative strategies and collaborative efforts needed to transform India’s physical infrastructure landscape.
LAYING immense thrust on the importance of multimodal transportation, President of India Smt.
Droupadi Murmu, during an address, highlighted that the country needs an efficient multimodal transport system for which rail, road, air and water transportation should be dealt with in a holistic approach rather than in isolation. This statement makes a strong case for realizing multimodal’s latent potential.
If the recent news around promoting the expanse of multimodal transportation is anywhere to go by, the Indian Railways is embarking on a significant initiative to establish mega railway terminals with multimodal connectivity in cities with populations exceeding 10 lakh. This effort aligns with Prime Minister Narendra Modi's 'Viksit Bharat' vision, aimed at bolstering national infrastructure.
In yet another update, Navi Mumbai international airport (NMIA) is set to become the first airport in the country with multimodal connectivity through metro, rail and road, once it comes to fruition. According to former Union Civil Aviation Minister Jyotiraditya Scindia, the PM wanted every airport to have multimodal connectivity as envisaged by the Gati Shakti Yojana. “NMIA will be the first airport in the country to have road, rail and metro connectivity, followed by water connectivity in the future. It will be connected by hovercraft to Colaba,” he said.
An interesting piece by DHL mentioned that amid the ever-changing state of the world, the astute business builds its resilience with the flexibility to reshape its supply chain with multimodal logistics. Businesses must determine an optimal combination of transport modes and routes, which inevitably involves a rigorous analysis of key considerations like distance, urgency, and costs. They must also account for potential disruptions and adjust their strategy accordingly.
They must also meticulously document the end-to-end supply journey, especially since multimodal shipments involve transfers between different entities. To this end, companies should integrate with digital platforms to buffer the documentation process, ensuring real-time visibility, smooth customs clearances, and reduced delay risks. Such technological integrations will also enable businesses to track
their shipments across every step of the supply journey.
Our expert panelists elaborated on all these and more during the conference and offered ways to enhance the implementation of multimodal transportation. Let’s take a look at the interesting conversations that unfolded…
What is the current status of Multimodal adoption in India? Are we realizing its full potential?
Xerrxes Master, President, AMTOI: India is making significant strides in adapting multimodal logistics to enhance its transportation, infrastructure and reduce logistics cost. The basic tenet is that we must seamlessly move towards multimodal transportation, essentially entailing that road, rail, sea and air have to converge and work seamlessly to ensure the movement of goods in the most cost effective and timely manner. The Central Government has made great strides in the direction in the last decade with the development of multimodal logistics parks, special FTZs, government Sops, etc.
The Indian Government has launched several key initiatives such as the PM Gati Shakti National Master Plan (NMP) introduced in October 2021. It aims to provide Multimodal connectivity infrastructure to various economic zones such as textile clusters, pharmaceutical clusters and industrial corridors. Additionally, the National Logistics Policy (NLP) rolled out in 2022 aims to create a comprehensive logistics ecosystem that enhances its service efficiency, digital systems and regulatory frameworks. One of the critical components of these initiatives is the establishment of Multimodal Logistic Parks (MMLPs). The government plans to set up 35 MMLPs across the country to integrate various modes of transport including road, rail, air and sea to streamline the logistics processes.
We have seen rapid progress in infrastructure construction during the last decade. When it comes to the chemical business, we have an ambitious goal of achieving one trillion dollars by 2040. To reach this goal, we need cutting-edge infrastructure, without which it would be impossible to meet. We must also pursue development in a sustainable manner.
In this regard, I am pleased to inform you of the opening of our cutting-edge green warehouse, designed specifically for Brenntag India by Harshna Agro Fresh Pvt. Ltd (Harshna), a supply chain and logistics expert. Harshna has been awarded the renowned EDGE (Excellence in Design for Greater Efficiencies) Advanced Certification in recognition of its exceptional dedication to sustainability and environmentally friendly practices. The new warehouse is in Sonipat, about 50 kilometers from Central Delhi in the Northern State of Haryana, India. It will serve over 70% of Brenntag's customers in Northern India efficiently and sustainably, which were motivating factors for consolidating all three existing warehouses in North India under the new warehouse facility. During the conceptualization phase, we concentrated on finding the best location with strong transportation connections and including sustainability considerations. The warehouse has specially insulated walls to increase energy efficiency, and we make extensive use of natural illumination to reduce energy use. We implemented a welldesigned natural ventilation system to reduce the demand for air conditioning, even in India's hot environment. In addition, we added solar panels and a water harvesting system to help conserve resources.
Rajat Sharma, VP - ISCM & Customer Service, at Hamilton Housewares: The current status in India is one of a developing phase where multimodal transport is being managed in an unorganized and inefficient manner. So, we’re surely not realizing anywhere near to full potential.
Major transport hubs globally are leading examples for us to imbibe and move ahead. Can you enlist some of them?
Xerrxes Master: Some global transport hubs are excellent examples of the efficient multimodal logistics and transport systems such as Port of Rotterdam, Netherlands; Port of Shanghai, China; Port of Singapore, Singapore; Port of Los Angelos & Long Beach, USA; Port of Hamburg, Germany; Dubai Ports (Jebel Ali, UAE), and Port of Busan, South Korea. Let me share with you some more interesting updates… European Union: The EU’s TEN-T
India is making significant strides in adapting multimodal logistics to enhance its transportation, infrastructure and reduce logistics cost. The Indian Government has launched several key initiatives such as the PM Gati Shakti National Master Plan (NMP) introduced in October 2021. It aims to provide Multimodal connectivity infrastructure to various economic zones such as textile clusters, pharmaceutical clusters and industrial corridors. Additionally, the National Logistics Policy (NLP) rolled out in 2022 aims to create a comprehensive logistics ecosystem that enhances its service efficiency, digital systems and regulatory frameworks. One of the critical components of these initiatives is the establishment of Multimodal Logistic Parks (MMLPs). The government plans to set up 35 MMLPs across the country to integrate various modes of transport including road, rail, air and sea to streamline the logistics processes.
(Trans-European Transport Network) policy aims to integrate road, rail, air, and sea transport networks, promoting efficient multimodal logistics.
China’s Belt and Road Initiative: This initiative seeks to create a vast network of trade routes, enhancing multimodal connectivity between Asia, Europe, and Africa.
North American Free Trade Agreement (NAFTA): Enhanced cross-border logistics through multimodal transport, linking road and rail networks across the US, Canada, and Mexico.
Rajat Sharma: Very true, countries like Singapore, China, etc., have been able to capitalize on well-managed multimodal transport using water, road and rail in an integrated manner, allowing goods and even people to hop across multiple modes of transport, leading to better access for clients and higher revenues for service providers.
Multimodal transportation has always been an underutilized phenomenon for Indian companies. What are the challenges that the companies are facing in efficiently utilizing all modes of transportation rather than just road?
Xerrxes Master: There are various concerns that demand stakeholders’ attention. Some of them are:
Infrastructure Development:
Significant investment in infrastructure, such as ports, railways, and intermodal terminals, is required to support multimodal transport.
Coordination Complexity: Managing the interfaces between different transportation modes requires robust coordination and communication systems.
Initial Costs: The initial setup costs for multimodal systems can be high, although they often lead to longterm savings and efficiencies.
While the above mentioned issues are related to implementation part, let me bring your attention to the policy side also… we are a very fragmented industry and a fragmented authority. As an association, we are still figuring out ‘who do we report to?’ For the past two years, we have been asking this question. I think the solution lies in forming a separate logistics ministry with the most qualified people having the finest brains in the industry taking the reins. The government should involve industry stakeholders because while the rules are being formulated, the ground reality is that these rules are impractical to follow. We must focus on skill development. Our national highways have actually become the death traps, recording the highest number of accidents globally. We seriously need to put our efforts into educating and training the drivers’ community. Our inland waterways
remain a goldmine to be exploited. Local union bodies are becoming greater threat to the companies when it comes to ensuring proper functioning of warehousing and movement of goods. As an association, we are bringing up such issues and concerns of the industry to the government officials continuously. We have been struggling to get the SelfRegulatory Organization (SRO) to fasttrack the development on this front and facilitate ease of business.
Sanjay Kshirsagar: Indian companies struggle to efficiently use all types of transportation beyond road transport. These difficulties are infrastructure, regulatory, operational, and market related…
Infrastructure Issues: India's rail and port infrastructure often can't handle high freight volumes. Inadequate terminal infrastructure, intermodal facilities, and warehousing limit smooth goods transfer across transport modes. Many industrial hubs and rural areas lack rail and waterway connectivity, making logistics challenging for firms.
Policy/regulation issues: India's logistics business has several regulations and government bodies, making multimodal transport difficult. Acquiring approvals and adhering to rules can be time-consuming and costly. The National Logistics Policy addresses some of these difficulties, but execution and coordination across sectors and jurisdictions remain challenging.
Operational Issues: India's logistics costs account for 14% of GDP, which is greater than many developed countries. This is mainly due to logistics inefficiencies and over-reliance on road transport. The Indian logistics business is fragmented with numerous small and unorganized firms. Fragmentation causes inefficiency and lack of uniformity in logistics processes.
Market Concerns: Companies prefer road transit due to its flexibility, speed, and reliability. Limited demand for multimodal solutions hinders logistics operators from investing in and developing them. Businesses are unaware of multimodal transport's benefits. Skilled individuals are in low supply for managing multimodal logistics operations.
Improvements to infrastructure, regulatory processes, and commercial promotion of multimodal transport are needed to overcome these hurdles. Investing in technology, skill development, and stakeholder coordination can make multimodal transportation more feasible and efficient for Indian companies (Drishti IAS, PW Only IAS).
Vishal Raskar, AVP – Warehousing, Delivery & Spot, MCX CCL: If you are a regular city commuter and using different metro lines, city bus, etc., on a daily basis, there are companies facilitating prepaid cards, which can be used for ticket payment at all metro lines
and even bus service in city. Just imagine the comfort which commuter gets out of it, no need to be in queue for procuring ticket at any mode of transport, which saves time & energy. The same provision logistics industry is expecting while using multimodal logistics facilities in India.
There’s a classic case to discuss here… India exports US$11 billion worth of rice to Bangladesh a year through inland waterways under Indo-Bangladesh protocol route. Currently if anyone intends to transport parboiled rice from Chennai to Bangladesh, he has to prefer road transport all the way from South to Kolkata and then load barges for crossborder waterway transport. It involves inland documentations like, Local Mandi, GST, LR, cross-state documents, export declaration and cross-border clearance. There is no single window system to facilitate seamless movement of goods, which makes it highly inefficient both from the perspective of time and cost. The entire trade become unviable if there is less parity in trade.
There are issues like transport union, labour union at local level, which are strenuous to eradicate and manage for any organization. If heavy goods such as metals need to be transported from Orissa production plant to Bangalore base, local ecosystems don’t allow companies to load more than 10 MT trucks, just because they want to earn more profit and exploit companies. In such situation, beneficiary has to bring the stock at Raipur with 10 MT trucks and then load it in bigger trucks for
Companies prefer road transit due to its flexibility, speed, and reliability. Limited demand for multimodal solutions hinders logistics operators from investing in and developing them. Moreover, businesses are unaware of multimodal transport’s benefits. Skilled individuals are in low supply for managing multimodal logistics operations. Improvements to infrastructure, regulatory processes, and commercial promotion of multimodal transport are needed to overcome these hurdles. Investing in technology, skill development, and stakeholder coordination can make multimodal transportation more feasible and efficient for Indian companies.
further transit, which ultimately involves hefty handling cost. Knowing the nature of complexity, there are limited logistics players who facilitate end-to-end services in such trade model due to lack of volume and hassle in local and cross-state document compliance.
Rajat Sharma: The challenges lie in multimodal means not being integrated, and hence multiple partners managing the different legs. What it does is shifting of accountabilities and hence exceptions/ deviations, leading to conflicts which are difficult to manage. Secondly, involvement of multiple partners increases the documentation process and managing this needs more control, equaling more supervisory manpower. Thirdly, in the absence of a single digitized system, there’s a drop in visibility across the chain. A clear multimodal policy with single document interaction and complementing technology deployment to create the right visibility is the resolution of teething troubles.
What’s your take on the development of physical infrastructure in the country and how do you see it going ahead?
Xerrxes Master: The development of physical infrastructure in India is progressing steadily with significant investments and initiatives in enhancing connectivity and boosting economic growth. In road infrastructure, we have initiatives such as Bharatmala Pariyojana and Pradhan Mantri Gram
If we are able to harness the full potential of our coastline and inland waterways, it will be revolution in the India logistics story. There will be no congestion, so turnaround time will improve drastically with negligible carbon emissions as compared to road transport. The cost of transit will go down by almost 50%, which will ultimately fuel the economic grwoth. By announcing ‘Sagarmala’ project, we anticipate that authorities have already recognized the immense potential that it holds and has envisioned to develop 14 new major ports and 22 smaller ports, but the implementation is not at the desired speed, which currently road and rail infra segments are witnessing.
Sadak Yojana. In rail, we have the Dedicated Freight Corridors (DFCs) & High-Speed rail projects. Port & Coastal infrastructure have initiatives like the Sagarmala Project and Inland Waterways. Airport infrastructure has UDAAN (Ude Desh Ka Aam Nagrik) & Expansion of major airports. The outlook would be implementation of multimodal logistics parks; smart cities and urban infrastructure; and sustainability & green infrastructure.
Vishal Raskar: There is an immense scope for authority on the infrastructure as well as implementation side. India is the growing economy with total yearly transport quantum of ~5 billion tons. Out of which 66% is encountered by road transport and 31% is through rail. There is considerable vision from respective ministries of road and rail with target of 12000 KM road construction in a year for 2024-25 and rail transport aiming to reach freight traffic to 3.3 billion tons by 2030.
There is considerable breadth to expand India’s inland waterways and domestic costal freight. India has coastline of ~7500 KM and navigable inland waterways of ~14500KM. Out of which, ~9200 KM waterways can be used for mechanized cargo crafts. But if we look the contribution of inland waterways in overall transport of India, it’s mere 0.1% whereas developed countries like the US contributes about 21%. India is operating with 12 ports on coastline of 7500 KM i.e. 1 port every 500 KM i.e. 10 hours of truck movement with standard average freight speed.
If we are able to harness the full
potential of our coastline and inland waterways, it will be revolution in the India logistics story. There will be no congestion, so turnaround time will improve drastically with negligible carbon emissions as compared to road transport. The cost of transit will go down by almost 50%, which will ultimately fuel the economic grwoth. By announcing ‘Sagarmala’ project, we anticipate that authorities have already recognized the immense potential that it holds and has envisioned to develop 14 new major ports and 22 smaller ports, but the implementation is not at the desired speed, which currently road and rail infra segments are witnessing.
Rajat Sharma: Infrastructure is already taking shape; we now need policies and technology to be put in place in the best fit manner. Streamlined & improvised regulations and policies from the government side and efficient technology platforms with government alignment (private or joint undertaking) will make adoption faster and easier. This will boost confidence in realizing the benefits put forth. If we’re able to bring about unified digital platforms and organized way of working, then a lot of organizations would be able to take advantage of single window movements and dealing with single partner across the freight chain. This could benefit companies in terms of time and cost both. Perhaps it could also result in less congestion on roads and better availability of stocks across the country.
If multimodal transportation begins to appear in a customer – provider friendly manner, I see this to be the
reason for huge boost in multimodal logistics parks that could easily convert to congregations of various value-added services across the manufacturing & consumption hot spots. These could attract aggregators & dis-aggregators of logistics, e-commerce fulfilment centres, large scale storage & distribution centres of perishable products and even commodities.
What do you have to say on the government interventions on the growth of multimodal alternatives in India?
Xerrxes Master: The government's interventions are set to transform India’s logistics landscape, making it more integrated, efficient and cost-effective. Continued focus on multimodal transport solutions, enhanced infrastructure and innovative policies will be crucial for sustaining this work and addressing challenges related to funding execution and technological integration would be the key to fully realizing the potential of these initiatives. Overall, these government initiatives are poised to significantly enhance India’s multimodal logistics capabilities, boosting trade, reducing cost and supporting economic growth.
Vishal Raskar: Managing logistics is a complex process in India—be it ensuring regular transportation of bulk raw materials, such as mineral ores and coal, or transportation of finished products from the centres to the ports. For instance, according to a NITI Aayog report, the freight cost of transporting one tonne of steel from Jamshedpur to
Mumbai is an estimated US$50, against just US$34 for the same quantity from Rotterdam to Mumbai. This highlights India’s logistical inefficiencies, which is one of the main drivers of domestic production cost being 5 to 10% higher than the global average. In India, the bulk of metal-related logistical requirements are carried out by railways, which are currently facing infrastructural constraints. With the introduction of the National Logistics Policy (NLP), India’s transportation woes should improve with logistics costs. Timely implementation of action plans underlined under the NLP can reduce overall costs and make exports more competitive.
Rajat Sharma: I believe it is the right time to put up the right governing body that enables changes in policies and adoption. Also, it could be a great idea for the government to invest in such futuristic projects in partnership with private players and associations to realize the true and full potential of this huge country with a growing population and shifting spend dynamics.
There are various newer projects in the pipeline like Sagarmala and Bharatmala. How are they slated to shape the fortunes of multimodal in the country?
Xerrxes Master: India’s major infrastructure initiatives such as Sagarmala & Bharatmala are set to significantly enhance the company's multimodal logistics capabilities, reshaping the fortunes of the transport and logistics sectors. Sagarmala projects aims to modernize India’s port infrastructure, enhance port connectivity, and promote port-laid industrialization to reduce logistics cost and improve trade efficiency. The Bharatmala project focuses on developing a robust network of highways across India to improve road connectivity and integrate various modes of transport. Together the combined impact expects to streamline logistics; reduce logistics cost; Boost trade and investment; and Support sustainability development.
Rajat Sharma: I believe they will add significant infra and new developed routes and modes – saving on cost and time. Yet, without the right unified seamless technology, reaping benefits of such largescale infra projects would
w Optimized Routing: Multimodal transport allows for the optimization of routes based on cost, speed, and reliability, leading to more efficient logistics operations.
w Reduced Transportation Costs: Combining different modes can lower costs by utilizing the most cost-effective method for each leg of the journey. For example, sea transport is cheaper for long distances, while trucks are more efficient for short distances.
w Global Reach: Multimodal transport connects remote regions to global trade networks. Ports, railways, and road networks link inland areas to international markets.
w Improved Access: Enhanced infrastructure, such as intermodal terminals and logistics hubs, facilitates seamless transfer of goods between different transportation modes.
w Reduced Carbon Footprint: Shifting from road to rail or sea transport can significantly lower greenhouse gas emissions, contributing to more sustainable logistics practices.
w Energy Efficiency: Rail and sea transport are generally more energy-efficient than road and air transport, leading to reduced fuel consumption.
w Redundancy and Flexibility: Using multiple transport modes provides alternatives if one mode is disrupted, enhancing the reliability of supply chains.
w Predictable Schedules: Coordinated scheduling across different modes can improve the predictability of delivery times.
w Adherence to Regulations: Multimodal systems can better comply with varying international regulations and customs requirements, reducing delays and legal issues.
w Standardization: The adoption of international standards for containers and documentation streamlines the process across borders.
w Advanced Tracking: Technologies like GPS, IoT, and blockchain improve real-time tracking and transparency, allowing for better management of multimodal logistics.
w Data Analytics: Analyzing data from various modes helps optimize routes, predict delays, and enhance decision-making processes.
Source: Association Of Multimodal Transport Operators of India (AMTOI)
Technology is the key to harnessing multimodal capability. A simple example is the two metro lines running in the city of Mumbai, where hopping from one to the other requires a new ticket, implying a whole set of billing counters, resources, infra & ques causing delays. If this was operating on a single ticket, the service provider would earn more with the same infra & customers would travel with more ease – expediting adoption of this means. The same is true for goods movement across water, rail and road.
also be fraught with doubts and risks. With right digital platforms, many more such projects could come to the fore and add to the toplines and bottomlines of various partners in the ecosystem.
What is the way forward when it comes to multimodal?
Xerrxes Master: Multimodalism in global logistics brings significant advantages in terms of efficiency, cost reduction, environmental benefits, and reliability. It requires substantial investment in infrastructure and technology, as well as effective coordination between different transportation modes. As global trade continues to expand, the importance of multimodal logistics will only increase, driving innovations and improvements in the supply chain industry.
Sanjay Kshirsagar: To advance multimodal transportation in India and fully realize its potential, several key steps need to be taken. These include…
Finalizing Projects: We need to expedite Sagarmala projects such as DFCs, MMLPs, and port connectivity. These projects are essential for building a strong multimodal transport network.
Building New Infrastructure: To integrate various modes of transport, invest in infrastructure, including interior waterways, coastal shipping facilities, and rail/road connectivity.
Simplification of Procedures: By integrating logistics-related government agencies, we simplify approvals and decrease bureaucracy. This will improve corporate efficiency and promote private investment.
National Logistics Policy Implementation: Ensure the effective implementation of the National Logistics Policy, which provides a comprehensive framework for reducing logistics costs and improving efficiency through digital integration and coordinated planning across different sectors.
Adopt Advanced Technologies: Encourage blockchain, AI, and IoT for transparency, tracking, and realtime product monitoring. These technologies have the potential to improve logistics operations by reducing delays, increasing security, and optimizing operations.
Digital Platforms: Develop and implement digital platforms like the National Logistics Information Portal to bring all stakeholders onto a single platform, facilitating better coordination and information sharing.
Training Programs: Invest in skill development programs to train a workforce proficient in advanced logistics operations. This includes
training in areas like data analytics, supply chain management, and the use of digital tools.
Collaboration with Educational Institutions: Partner with educational institutions and industry bodies to create specialized courses and certification programs in logistics and supply chain management.
Incentives for Multimodal Use: Provide incentives for businesses to adopt multimodal transport solutions, such as subsidies, tax benefits, or reduced tariffs for using rail and waterways instead of road transport
Public-Private Partnerships (PPPs): Encourage PPPs to leverage private sector efficiency and innovation in developing and managing logistics infrastructure and services
Green Logistics: Encourage electric and hybrid vehicles, solar-powered cold storage, and efficient waste management. This will reduce the carbon footprint of the logistics sector.
Renewable Energy: Integrate renewable energy sources into logistics infrastructure, such as solar panels at logistics parks and electric charging stations at key transport hubs India can overcome its obstacles and create a more efficient, cost-effective, and sustainable multimodal transport
system by focusing on these areas. These actions will boost logistics and boost the country's economic growth and global competitiveness.
Vishal Raskar: An integral part of any logistics model is its warehousing and storage facility. Building a warehouse is not only about developing a real estate project. It is much more than that as every commodity has its own specific requirement of storage. It could be Agri commodities, Pharma or chemicals, all require state-of-the-art tailor-made storage facilities. Though building such an infrastructure might not be the challenge but on the regulatory side, warehousing is a state subject, and every state has different authorities to acquire the license from the department. This creates huge challenge when you are operating in different states.
The central governing agencies are trying to fix these issues since recent past and make Warehousing Development and Regulatory Authority (WDRA) as central body to govern and uplift warehousing industry, but it’s a challenge for the government to shift the state subject to central because of a lot of resistance from all states. WDRA has simplified online system for warehousing license application and document upload, application can be tracked at different level of processes and once you get the license, it will remain valid for five years. It will surely give a boost to industry and restrict prevailing malpractices. Authorities must push this agenda for the benefit of industry.
Another reason for limited adoption of multimodal logistics is multi-level documentation. The single window system for multimodal transport documentation is the need of time. If organizations want to use road, rail and inland waterways for transport cargo, there must be a single document, which can be presented at all transport modes to clear the cargo end-to-end. It will ease the transit movement and save both cost and time.
In late 2023, shipping disruptions in the Red Sea impacted routes with vantage points in the Asia-Pacific. Sending goods through the Red Sea had become risky. Diverting ships around the entire African continent would have meant longer transit times and the use of faster air freight would have increased costs.
The disruptions caused by the Red Sea prompted a major sporting brand to reach out to DHL with a critical request to deliver their stocks — a task made especially challenging by the high volumes during the tail end of the peak season.
To keep shoes and apparel moving into stores, the DHL Customer Solutions & Innovation (CSI) team partnered with DHL Global Forwarding to set up a rail solution, taking on the sportswear previously slated for ocean freight.
Having already served shipments with the rail alternative before and during the pandemic, DHL Global Forwarding had established a strong partnership with rail teams from different countries. This enabled the DHL Global Forwarding team to handle the request with weekly block trains booked exclusively for the sporting brand customer, fulfilling the brand’s demand to ship 35 to 41 containers weekly from factories in Asia (Vietnam, Cambodia, and China) to final destinations in Germany and the United Kingdom (U.K.).
Source: DHL
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