DHL Supply Chain to invest Rs 680 crore for India expansion

Mumbai: DHL Supply Chain, a division of global logistics provider DHL, will invest more than Rs 680 crore (100 million euros) in India as part of its expansion drive. According to the company, DHL Supply Chain will invest in developing an additional 5 million square feet of warehousing space across India and eight world class multi-client sites across the country. Multi-client sites are large scale warehousing spaces at strategic locations to help different companies.

It will also invest in improving its transportation business.

"With government investments in infrastructure on the rise coupled with streamlining of regulatory policies, we are enthusiastic about the fast growth in the logistics market," said Paul Graham, CEO, Asia Pacific, DHL Supply Chain.

DHL Supply Chain, which started operations in India in 1997, currently has more than 103 warehouses spread across more than 50 cities. Indian logistics firms had grown at over 25% in fiscal 2011-12 led by large-scale outsourcing of logistics services by manufacturing and services sector and a steady rise in rural consumption, say industry experts.

The growth comes at time when the sector has been witnessing a paradigm shift with many small-scale and large-scale firms trying to improve their presence in the 3PL (third party logistics) market.

3PL players are outsourced to provide an integrated end-to-end logistics solutions such as warehousing, transportation and inventory management ensuring safe delivery and storage of goods. Logistics giants have also shown interest in the domestic logistics sector with foreign firms acquiring Indian companies in the past few years.