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Tata Capital > Blog > Loan for Business > How to Expand Your Logistics Business in India?

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How to Expand Your Logistics Business in India?

How to Expand Your Logistics Business in India?

Do you know that India’s logistics sector is projected to grow at a staggering annual rate of 10.5% between 2019 and 2025?

So, now is the best time to invest in business expansion if you are a transport and logistics business owner. And, here’s how you can do it!

Acquire funding and investment

The first thing any logistics company needs to grow is an appropriate amount of investment. Depending on your company’s type and size, you may require funds ranging anywhere between Rs. 10 lakhs going up to crores.

The easiest way to obtain reliable and transparent funding is by taking a business loan. This will help you gain access to a lump-sum amount and allocate it in acquiring assets like trucks, buses, minibuses, warehouses, competent staff, etc.

A business loan calculator is a useful tool that can help you assess the amount of money, repayment tenure, EMIs and interest rates would be optimal for you.

Additional Read: Three Different Ways You Can Expand Your Business

Cater to the customer’s needs

Hire a competent sales representative who can meet the customer halfway, decipher their needs and deliver on promises. If a customer requires niche facilities such as a chemical storage warehouse, you must ensure that you cater to their requirements.

Further, do not offer too many irrelevant options as this will drive the customer away. Consistently getting favourable reviews from your customers will help you build a formidable brand reputation.

Customer acquisition

Once you fulfil the business loan eligibility criteria and secure proper funding, you can invest in inbound and outbound marketing to target and acquire more customers. After researching, you can identify areas or sectors like automobile, manufacturing and e-commerce, where there is a shortage of logistics corporations that comply with safety and legal norms.

Once you pinpoint the loopholes, you can efficiently target those shortcomings and provide customers with efficient services. This will help you create a broad customer base and get augmented ROIs. Over time, you can use this to increase investment in infrastructure.

Protect yourself against risks

In an increasingly competitive industry like logistics and transport, business risks lurk behind every corner. Moreover, since every business is allied with multiple individual vendors, there are greater chances of risk such as theft, in-transit damage, loss or theft, etc. It would be prudent to allocate some funds towards insuring your business, especially if you have your eyes set on expansion.

Additional Read: What Should Be Your Business Growth Strategy for 2021?


If you need a loan to finance the expenditures of your growing logistics corporation, reach out to Tata Capital for getting the most lucrative business loan interest rates. Enjoy our comfortable repayment tenures ranging from 12 to 36 months and avail of fixed or structured EMI options with us.

With processing charges starting from just 1.5% and an online business loan EMI calculator at your disposal, you can avail of unparalleled services from Tata capital. You can even customise your loan repayment terms. So, what are you waiting for? Get all the information you need about our affordable business finance options by visiting our website or giving us a call today!

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