The growth in e-commerce in India has had a significant impact on the logistics business in India, with Gati's ecommerce division reporting revenues of Rs 40.7 crore for the nine month period, compared with Rs 25.4 crore the previous year, as per its annual report. As of March 2014, the contribution of e-commerce to Gati's business had increased to 19%, from 13% in July 2013. Gati Chairman KL Chugh, said recently that its ecommerce division witnessed a growth of 10% month on month, totalling up to a Compounded annual growth rate (CAGR) of 130%, with major growth coming from Tier 2 and 3 cities across India. In a May 2014 earnings conference call, its CFO Sanjeev Kumar Jain said that the company was able to exceed its guidance due to the growth in the e-commerce business, for which it had targeted revenues of about Rs 62 crore for the division. "The current run rate of the e-logistics vertical is about Rs 6.8 crores per month," Jain said on the concall, adding elsewhere that"...in Quarter 1 we did revenue of around Rs. 10 crores. In Quarter 2, we did Rs. 14 crores. In Quarter 3, we did Rs. 16 crores." At the moment, we have a dedicated delivery capacity of 16,500 shipments a day, servicing over 7000 pin codes. And as we had mentioned earlier, we are on track to hit about 20,000 shipments a day by June and the target is to do about 30,000 shipments a day by the end…
