How To Start A Logistics Business In India - 2020

Almost all the fields such as agriculture, e-commerce, manufacturing, etc. have one thing in common – Movement. The movement of goods is a very important part of any field or company. For example, in the agriculture field, farmers need seeds and chemicals such as pesticides. Therefore, they require the movement of these goods from their manufacturer to them. Similarly, e-commerce websites receive goods from manufacturers to store in their warehouses and deliver them to a customer when needed. This movement of goods is handled by a logistics company. In this article, we will see how to start a logistics business in India.

But first, you need to understand that a logistics company is not the same as a transport company. A logistics company will manage the transportation of goods along with the storage or handling or packaging of goods. You will work along with transport and courier facilities.

If you own trucks, you can work as a fleet owner which will provide their trucks for interstate deliveries. Or, you can work as a commission broker, where you take the order and forward it to an appropriate transport facility.

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How To Start A Logistics Company in India

1. Register Your Company

The first step is to register your company with the Government of India. If you are not registered, you will get not get a license to function as a logistics company. After the successful registration of your company, you will receive 3 documents within 7 days:

  • Shop Act Licence
  • Udyog Aadhar
  • GST Number
    These are the documents you will need to own and function as a logistics business.

2. Register With Local Search Companies

After you get your license, you need to register with local search companies such as Just Dial and Sulekha. You can buy their special package for around ₹ 4000-5000. The benefit of this will be that potential leads on these companies will be transferred to you. They send inquiries about your business or inquiries related to transport and related terms to you. You can then transform these leads into deals.

How To Start A Logistics Business In India
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3. Visit Popular Transport Facilities in Your City/Town

The next thing that you want to do is to visit popular transport facilities in your city or town and try to make a deal with them. While you will take care of receiving the orders, your transport partner will be responsible for the transport of the goods. If you own trucks, you can work as a fleet owner. In other words, you will manage the whole process of transportation and they will do the door-to-door delivery. By working along with such companies, you can easily earn about 25% of the deal.

4. Full Truck or Half Truck Transport

The previous point was related to small transport services such as courier. But what if you get bigger orders such as a full truck or a half truck transport. For this, you must grow your connections in the field of transport. You can visit the ‘Transport Nagar’ of your city/town and visit transport service owners that do such types of deliveries and make contact with them. So that the next time you get such an order, you will know who to choose.

5. Advertise Your Company

There is a book that is shared with all transporters and logistics businesses of the city/town. You must get your company’s name in that book. This will get your company into the notice of local transporters and they will be happy to collaborate with you.
Your ads will tell customers details about your company such as if you are a fleet owner or a commission broker or both and whether you take orders to deliver in North India only or in South India only and other things like this.

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6. Grow Your Connections

Even after your company has been established as a big company, you must continue growing your connections for possible collaborations and deals. If you are new, you can visit the ’Transport Nagar’ for 2-3 months and interact with transport owners and truck drivers and tell them about your new business and give them your visiting card. Tell them to contact you if they get to know about an order that you can fulfill.

And that’s it. Starting a logistics business in India involves no rocket science, but it is not too easy either. You must with hard words and patience to grow your business. Once you have successfully established your name in the transport field, you will enjoy huge revenues and turnovers.

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About Yash Taneja

  • Ujjain, M.P.