 "Logistics shares gain; Gati, Snowman up over 5%")
Shares of logistics companies have moved higher in noon deal trade on the bourses on hopes of clearance of the crucial Goods and Services Tax (GST) Bill in the upper house of the Parliament.
Patel Integrated Logistics (up 10% at Rs 111), Gati (7% at Rs 144), Snowman Logistics (7% at Rs 70), VRL Logistics (5% at Rs 298), Sical Logistics (5% at Rs 155) and Allcargo Logistics (5% at Rs 171) were up between 5%-10% on the BSE. At 11:48 AM, the S&P BSE Sensex was up 0.15% at 27,050 points.
According to media reports, West Bengal Chief Minister Mamata Banerjee on Tuesday said the state government is supporting the GST for rolling out of the one tax formula. CLICK HERE TO READ FULL REPORT.
“Implementation of GST will be a game changing event for businesses in general and organized logistics players. It would provide a boost to warehousing, supply chain management and 3PL business. It will enable the creation of the common market and permit free and unimpeded movement of goods & services across the country. The anticipated benefits for LSPs (Logistics Service Providers) being consolidation of its network, larger warehouses, larger tonnage trucks, thus overall better efficiencies,” Transport Corporation of India said in annual report.
This would mean that modern technologies like automatic storage and retrieval, material handling equipment; RFID, etc. will replace typically labour intensive activities, reducing errors in the supply chain and therefore cost. This will make warehousing and trucking in India more or less at par with the Western world and Far East. Add to it, as a result of reduced tax liability, GST will reduce the share of the unorganized sector in warehousing, it added.
Patel Integrated Logistics (up 10% at Rs 111), Gati (7% at Rs 144), Snowman Logistics (7% at Rs 70), VRL Logistics (5% at Rs 298), Sical Logistics (5% at Rs 155) and Allcargo Logistics (5% at Rs 171) were up between 5%-10% on the BSE. At 11:48 AM, the S&P BSE Sensex was up 0.15% at 27,050 points.
According to media reports, West Bengal Chief Minister Mamata Banerjee on Tuesday said the state government is supporting the GST for rolling out of the one tax formula. CLICK HERE TO READ FULL REPORT.
“Implementation of GST will be a game changing event for businesses in general and organized logistics players. It would provide a boost to warehousing, supply chain management and 3PL business. It will enable the creation of the common market and permit free and unimpeded movement of goods & services across the country. The anticipated benefits for LSPs (Logistics Service Providers) being consolidation of its network, larger warehouses, larger tonnage trucks, thus overall better efficiencies,” Transport Corporation of India said in annual report.
This would mean that modern technologies like automatic storage and retrieval, material handling equipment; RFID, etc. will replace typically labour intensive activities, reducing errors in the supply chain and therefore cost. This will make warehousing and trucking in India more or less at par with the Western world and Far East. Add to it, as a result of reduced tax liability, GST will reduce the share of the unorganized sector in warehousing, it added.