About Rapid Multimodal Logistics Limited

Rapid Multimodal Logistics is Chennai based company engaged in the business of providing one-stop logistical solution to their clients. They majorly cater to the B2B segment of the industry. They provide an end-to-end logistics solution to manufacturers/traders to transport raw materials or finished goods. They are involved in the management and coordination of the movement of raw materials or finished goods throughout the supply chain, from the point of origin to the destination. They provide single as well as multimodal transportation services which involves the coordinated use of multiple modes of transportation (such as road, rail, sea) within a single, integrated supply chain to optimize efficiency and meet the unique requirements of shipments. Right from shipment planning, Route Optimization, Carrier Selection, Documentation, Containerization, Tracking and to Communication and Coordination, Last-Mile Delivery, Performance Evaluation.

They encompass a diverse range of industries, including but not limited to Glass, Plywood, Paper, Edible oil, Gypsum boards, Iron & Steel, Scraps, Tiles, Sanitary, Liquor industry. Their commitment to excellence is exemplified in their ability to tailor their logistics and supply chain solutions to meet the unique demands of each industry we serve. They understand the intricacies and specific requirements of these varied sectors, allowing them to provide customized and efficient services that contribute to the seamless functioning of our clients' operations. This broad industry coverage underscores their adaptability and commitment to being a comprehensive and reliable partner, capable of navigating the distinctive challenges presented by diverse business landscapes.

INDIAN SERVICE INDUSTRY
The reforms of the 1990s have been associated with the expansion of the service sector in India. Midway through the 1980s, the service sector began to expand, but it took off in the 1990s when India started a series of economic reforms in response to a serious balance of payments issue.

The services sector is not only the dominant sector in India’s GDP but has also attracted significant foreign investment, has contributed significantly to exports and has provided large-scale employment. India’s services sector covers a wide variety of activities such as trade, hotel and restaurants, transport, storage and communication, financing, insurance, real estate, business services, community, social and personal services, and services associated with construction. To enhance India's commercial services exports, share in the global services market from 3.3% and permit a multi-fold expansion in the GDP, the government is also making significant efforts in this direction.

The service sector has over 50% contribution to India’s GDP, and it has witnessed a growth of 10.8% during the first half of 2021-22. The service sector has emerged as the highest employment generator with a 5-7% y-o-y growth in 2022. India is a unique emerging market in the globe due to its unique skills and competitive advantage created by knowledgebased services. The Indian services industry, which is supported by numerous government initiatives like smart Cities, clean India, and digital India is fostering an environment that is strengthening the services sector. The sector has the potential to open up a multi-trillion-dollar opportunity that might stimulate symbiotic growth for all nations. Service providers in India continued to signal positive demand trends in June, which underpinned a stronger increase in new business volumes and further job creation.
Services exports are projected to set a record of US$ 322.72 billion with a compound annual growth rate of 26.79% during FY23 as compared to FY22. India’s service exports stood at US$ 322.72 billion, whereas imports stood at US$ 177.94 billion in April-March 2022-23. The services trade surplus for FY23 (April-March) is expected to be US$ 144.78 billion, up from US$ 107.52 billion in FY22 (April-March). India’s service exports stood at US$ 254.53 billion, whereas imports stood at US$ 147.01 billion in FY22.

The services sector of India remains the engine of growth for India’s economy and contributed 53% to India’s Gross Value Added at current prices in FY22 (as per advance estimates). The services sector's GVA increased by 6.5% in the third quarter (2022-23), and it was the main driver of aggregate GVA growth (accounting for approximately 84% of total GVA growth). The services industry performed well in H2:2022- 23, boosted by contact-intensive services and building activities. India’s services sector GVA increased at a CAGR of 11.43% to ₹ 101.47 trillion (US$ 1,439.48 billion) in FY20, from ₹ 68.81 trillion (US$ 1,005.30 billion) in FY16. Between FY16 and FY20, financial, real estate and professional services augmented at a CAGR of 11.68% (in ₹ terms), while trade, hotels, transport, communication and services related to broadcasting rose at a CAGR of 10.98% (in ₹ terms). India‘s IT and business services market is projected to reach US$ 19.93 billion by 2025. In March 2023, the Manufacturing Purchasing Managers’ Index (PMI) in India stood at 57.8. With the fastest growing (9.2%) service sector globally, the sector accounts for a 66% share of India's GDP and generates about 28% of the total employment in India. As per the First Advance Estimates, Gross Value Added (GVA) in the services sector is estimated to grow at 9.1% in FY23, driven by 13.7% growth in the contact-intensive services sector.

Both domestic and global factors influence the growth of the services sector. An extensive range of service industries has experienced double-digit growth in recent years, supported by digital technologies and institutional frameworks made possible by the government. The ease of doing business in India has significantly increased for domestic and foreign firms due to considerable advancements in culture and the government outlook. Due to ongoing changes in the areas of lowering trade barriers, easing FDI regulations, and deregulation, India's services sector is poised to grow at a healthy rate in the coming years. Over the next 10 years, the National Digital Health Blueprint can unlock the incremental economic value of over US$ 200 billion for the healthcare industry in India.

India’s digital economy is estimated to reach US$ 1 trillion by 2025. By the end of 2023, India’s IT and business services sector is expected to reach US$ 14.3 billion with 8% growth. The implementation of the Goods and Services Tax (GST) has created a common national market and reduced the overall tax burden on goods. It is expected to reduce costs in the long run-on account of the availability of GST input credit, which will result in a reduction in the prices of services. India's software service industry is expected to reach US$ 1 trillion by 2030.

Due to ongoing changes in the areas of lowering trade barriers, easing FDI regulations, and deregulation, India's services sector is poised to grow at a healthy rate in the coming years.

TRANSFORMATION OF THE TRANSPORTATION AND LOGISTICS INDUSTRY
The Indian logistics industry includes all inbound and outbound components of the manufacturing and service supply chains. Significant factors that will increase the demand for India's logistics sector include the country's anticipated GDP growth of US$ 26 trillion by fiscal year 2048 (US$ 6 trillion by 2030) and its objective to accelerate merchandise exports to US$ 1 trillion by 2030. This would open a huge opportunity for India's transport and logistics sector, which is expected to increase at a CAGR of 4.5% from 2022 to 2050, reaching 15.6 trillion tonnes kilometres. The Indian transport and logistics business is expected to be around ₹ 13-16 lakh crore (US$ 156.18-192.23 billion) in 2022.

By 2030, India wants to lower its logistics expenditures from 13-14% of GDP to 8-10% of the GDP. It is projected that a 10% reduction in indirect logistics costs is expected to result in a 5% to 8% increase in exports. According to the Logistics Performance Index (LPI) of the World Bank, India has climbed six positions to reach the position of 38th rank out of 139 nations. The improvement is attributed to a variety of factors, including technological advancement, data-driven decisionmaking, and legislative initiatives targeted at promoting world-class infrastructure. The National Logistics Policy (NLP) and the PM Gati Shakti programme are significant overarching policy moves taken by the central government in this area to deliver outcomes by 2024-25.

Logistics Industry is crucial to both enterprises and the economy. In today's interconnected world, shipping and logistics are at the heart of the economy, acting as vital gateways for international trade and business. A nation with a strong and effective logistics sector offers an efficient forward and reverse flow of goods and services, which eventually translates to fast-paced growth.

Transport and logistics refer to the procedures involved in the manufacture, storage, inventory, delivery, and distribution of specific commodities or services. The logistics sector in India was predicted to account for 14.4% of GDP in 2022. It is the primary source of income for more than 22 million people. The overall logistics sector in India includes 37 export promotion councils, 40 Participating Government Agencies (PGAs), 20 government agencies, 10,000 goods, and 500 certifications. Between the financial years 2015-16 to 2019-20, India invested approximately US$ 10.2 trillion in the development of infrastructure.

The freight movement in India is significantly prejudiced towards road transportation, which transports 66% of goods (in ton-kilometres). This is followed by rail (31%), shipping (3%), and air (1%). To facilitate cargo transportation, India has a vast network of support infrastructure, including 129+ inland container depots, 168+ container goods stations, and 300 m sq. ft. of warehouse capacity.

The uneven distribution of modes of transport has resulted in low operational efficiency, causing the GOI to launch a number of logistics-specific programmes, including GatiShakti and the National Logistics Policy. These initiatives seek to improve India's logistics sector by making it more environmentally friendly, agile, transparent, and integrated. The logistics management regimen is capable of overcoming infrastructural disadvantages in the short term while providing cuttingedge competitiveness in the long term. Physical transporters that execute their business processes manually and offline can use various technologies such as AI, Big data, and IoT to improve their service and compete in an international market by delivering real-time and end-to-end connections.

To realise the full potential of the sector, stakeholders such as service providers, customers, and the government of India must work and complement one another. The sector is experiencing significant infrastructural expansion, a stronger emphasis on digitalization, and a larger emphasis on sustainable logistics. The launch of numerous start-ups, as well as the Government's digital initiatives such as "Make in India," Unified Logistics Platform (ULIP), and others, are assisting in bringing greater transparency to the logistics sector. The digitization of work processes to enable paperless processing of paperwork and clearances, as well as improved shipment tracking, aids in increasing the pace of goods movement and lowering logistics costs.

RAPID MULTIMODAL LOGISTICS LIMITED STRENGTHS
1. Versatile Range of Transportation Solutions with Exemplary Route Optimization
2. Cultivating Resilient Collaborations with Lorry Vendors
3. Optimal Cost Management
4. Fostering Long-Term Partnerships
5. Word-of-Mouth Acclaim and Informal Advocacy
6. Proximity and Accessibility for Clients

RAPID MULTIMODAL LOGISTICS LIMITED STRATEGIES
1. Focusing on Infrastructure development
2. Penetration at PAN India and Business Expansion through import export initiatives
3. Build Partnerships and Licensing Opportunities.
4. Long-Term Relationship Establishment Through Continuous Client Feedback

RAPID MULTIMODAL LOGISTICS LIMITED RISK FACTORS & CONCERNS
1. They depend significantly on their clients from different industries and are highly dependent on the performance of their industry.
2. They do not own any vehicles for logistics services provided by them, they depend significantly on their vendors to provide transport facilities.
3. They have collaborated as a Business Associates with one of the leading players of logistics industry and any disruption in that can affect the business.
4. Their business is highly dependent on technology and any disruption or failure of their technology systems may affect their operations.
5. They may not be able to pass on any increase in costs levied by their business partners to their clients.