This post is a part of DIL Intelligence series from Energy Alternatives India (EAI), India’s leading climate-tech consulting firm.
DIL stands for Decarbonization for India’s Leaders and provides comprehensive market intelligence and updates to Indian corporate leaders on prominent decarbonization efforts across the Indian industrial ecosystem. DIL is provided by EAI’s strategy consulting team. More about our consulting from here.
The e-commerce logistics market in India, valued at USD 2.93 billion in 2019, is projected to reach USD 11.48 billion by 2027, growing at a CAGR of 18.8%. The road logistics market, expected to grow at a CAGR of 8% from 2020, is set to reach 330 billion U.S. dollars by 2025. The inter-city road logistics spend in India was USD 209 billion in 2021, accounting for around 87% of total road logistics spend. These markets are expanding rapidly, with road logistics being a major player in the logistics market worth US$ 160 billion. However, the sector is acknowledging the need for environmentally sustainable practices with a growing focus on decarbonization.
Adani Total Gas Limited (AGTL) and Flipkart, a major e-commerce marketplace, have partnered. This collaboration aims to reduce emissions throughout the entire supply chain, from sourcing locations to warehouses and ultimately to customers’ doorsteps. With over 8 million daily shipments, the e-commerce sector presents a significant challenge in terms of sustainability. AGTL will offer Flipkart access to cleaner fuel options like natural gas and support their transition to electric vehicles (EVs). Additionally, Adani TotalEnergies E-Mobility Limited (ATEL), a subsidiary of AGTL, will play a crucial role by deploying EV charging infrastructure across Flipkart’s pan-India supply chain network, including their warehouses and logistics facilities.
Cell Propulsion, a Bangalore-based startup, is developing electric powertrains for commercial vehicles to decarbonize road logistics. Electric vehicles (EVs), powered by these powertrains, produce zero tailpipe emissions, significantly reducing carbon footprint. The adoption also leads to lower operating costs and reduced noise pollution. Cell Propulsion is focusing on improving powertrain performance and affordability, and collaborating with stakeholders to develop EV charging infrastructure.
Cross-industry collaboration between logistics companies, e-commerce platforms, energy providers, and government bodies will be essential to drive innovation and implement effective sustainability strategies. Technological advancements, such as the development of electric powertrains for commercial vehicles by companies like Cell Propulsion, offer promising avenues for reducing carbon emissions. Building a robust and widespread EV charging infrastructure across India is crucial to support the large-scale adoption of EVs in the logistics sector.
Consumers are increasingly concerned about environmental impact, and businesses failing to prioritize sustainability risk losing market share. A study by IBM revealed that 83% of global consumers would switch brands based on their environmental and social values. Participating in industry-wide initiatives focused on sustainability can help develop best practices, share knowledge, and influence policy changes the Confederation of Indian Industry (CII) has established a Center for Environmental Excellence to promote sustainable practices in various sectors.
This post is a part of DIL Intelligence series from Energy Alternatives India (EAI), India’s leading climate-tech consulting firm.
DIL stands for Decarbonization for India’s Leaders and provides comprehensive market intelligence and updates to Indian corporate leaders on prominent decarbonization efforts across the Indian industrial ecosystem. DIL is provided by EAI’s strategy consulting team. More about our consulting from here.
