India's air cargo market is entering a period of rapid expansion, and Skyways Group is looking to capture the opportunity by widening its business beyond its traditional focus on exports.
Yashpal Sharma, Chairman and Managing Director, Skyways Group, said the company is seeing strong potential in imports, domestic logistics and newer logistics solutions as India's trade and transport infrastructure expands.
India currently has around 165 airports, while the government has set a vision of taking the country's air cargo volumes to 10 million tonnes. Sharma said that even if the target takes five to seven years rather than five years, tripling the market from current levels would still represent a significant shift for the industry.
The larger logistics market is expanding too. India's total transport sector currently handles around 5,300 million tonnes across land, ocean, inland waterways and air, with the figure expected to reach around 8,000 million tonnes.
For Skyways, the biggest change is coming from imports. The company was largely focused on outbound cargo 10 to 12 years ago, but its import volumes have increased threefold over the past year.
The shift reflects the changing nature of India's air cargo market. According to Sharma, imports now account for 55 percent of India's air cargo, compared with 45 percent for exports.
Pharmaceutical logistics is another area the company is watching closely. Skyways invested in a pharmaceutical company last year, and Sharma said pharma customers account for a substantial share of logistics spending, with active pharmaceutical ingredients imported from markets around the world, particularly China.
"Imports will definitely be a key driver for us," Sharma said.
Diversification remains the strategy
Skyways is also sticking to a business model that relies on a broad network of carriers and vendors rather than concentrating its business with a few partners.
The approach helped the company manage the disruption caused by the war in the Middle East, when significant capacity was removed from the region. Skyways was able to shift customer requirements to other markets.
Sharma said the same strategy had helped the company deal with earlier disruptions, including the September 11 attacks and the Lehman Brothers crisis.
The company does not currently see a need to become a carrier itself. Instead, it plans to use the capacity available through its global carrier network.
Technology is another area where Skyways continues to spend. The company invests around ₹15 crore to ₹17 crore every year in technology, while a new technology platform is currently being piloted.
Beyond its core aircraft related business, other products now account for around 23 percent of the company's business. Sharma said the aim is to increase this contribution by expanding its product portfolio and reducing dependence on any single geography, customer, carrier or commodity.
The domestic market remains relatively small for Skyways, with the company currently holding a 2 to 3 percent share. It entered the segment around five to six years ago and is now building its express and e commerce logistics capabilities.
As more airports gain international cargo handling capabilities and India continues to invest in ports, airports and logistics infrastructure, Skyways sees the opportunity extending well beyond traditional air freight.
For Sharma, the bigger story is the ability of this expanding network to connect Indian businesses, including companies in smaller towns, with markets across the world.
