Yes they have first mover advantage ,Tvs logistics receive RFQ for almost 90% of market requirement for 3pl logistic They do have advantage of the size and brand recall . but pricing power and entry barrier is very low. companies will normally go with logistics provider who provides the lowest price. so undercutting of price is very common and everyone want to do more cost rationalization in logistics nobody wanna pay extra or premium for the services and switching cost for companies are very low. also, there is no much differences between 3PL players almost everyone provides same services nobody has any upper edge .Mahindra logistics , Hyundai Glovis ,allcargo ,proconnect , kerry indev , fm logistics, Kuehne + Nagel etc already lot of organized competition in place. of course, tvs as a group has high level corporate governances, but feels like this sector similar to airline industry. sector will definitely grow whether it translate to profit to investors is not sure.
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