India’s express industry isexpected to register a growthof at least 20 percent perannum during the next fiveyears and more than doubleits size by 2012, accordingto a study by rating agencyCredit Analysis & Research(CARE). Opening of banking,insurance, retail, aviationand telecom sectors and theirpenetration to smaller citieswould be the major growthdriver.

According to CARE, thesize of India’s courier industrycurrently stands ataround Rs 7,100 crore andis estimated to have grownat 33 percent over the pastdecade.

The industry is highlyfragmented with more than2,500 express players and afew large sized players accountmore than half of theindustry revenues.

Amongst domestic playersBlue Dart, DTDC, FirstFlight and Overnite Expressare leading express servicescompanies in India whileUPS, FedEx, DHL and TNTare leading internationalplayers present in the country.According to the CAREsurvey, the industry playersearn about 52 percent of itsrevenues from documentparcels.