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News: As per media sources, total e-commerce shipments (forward + reverse) for e-commerce logistics grew to more than 4 billion in FY23 (excluding hyperlocal shipments) and is expected to grow to 10 billion parcels by FY28, mostly as a result of new categories, D2C brands and the ongoing growth of tier-2 and tier-3 cities.
Views: In our coverage, BlueDart has a 20% exposure towards the vertical and has been growing strongly. Other players like TCI, TCI Express, Mahindra Logistics provide B2B services (first mile, mid mile, sorting centres) to product companies, which have variable exposure to the e-commerce companies. Overall, strong growth in e-commerce shipment bodes well for the entire logistics chain.
Impact: Positive