India’s rural fast moving consumer goods (FMCG) market is expected to grow at a compounded annual growth rate of 14.6 per cent and reach $220 billion by 2025. This is because of rural population using e-commerce and digital connectivity services due to high penetration of smartphones, credit and debit cards, and online banking. India’s FMCG market is expected to reach $103.7 billion by 2020 from the current level of $49 billion, while the retail market is likely to reach $1.1 trillion from the current $680 billion. Health and wellness was a mega trend shaping consumer preferences and shopping habits, which leading global and Indian food and beverage brands have embraced and were focused on creating new markets demands. In order to achieve better market growth, the retailers and the FMCG companies will have to work in synergy. FMCG companies have focused primarily and made significant improvements to manufacturing, service and maintenance operations through lean techniques. However, there is not much focus on similar stringent strategies for warehouse operations and transportations. The need of the hour to enhance availability and improve cost efficiencies is in the logistics and transportation sector.

(Financial Express)