DHL to invest Euro 300 mn in India

Inaugurates service centre in Coimbatore

The DHL Group plans to invest close to Euro 300 million (nearly Rs. 2,100 crores) in the coming years in India, according to Mr. Malcolm Monteiro, CEO-South Asia, DHL Express.

Addressing a press conference held on July 3 in connection with the inauguration of its state-of-the-art service centre in Coimbatore, Mr. Monteiro spoke about the company commitment to developing free trade houses, creating specialised industry verticals, reaching out to SMEs with tailor-made products, cross-selling DHL brands and to attracting talent.

He said the focus areas for the company in India would be investment in air capacity, distribution and “industry-specific product innovation” such as aviation and life sciences. There are plans to pump in up to Euro 300 million into Indian operations in the coming years.

Asked how much the ongoing turmoil in the Eurozone will impact business from India to Europe, he said: “Europe and the euro are challenges that can be solved and did not feel this was a cause for worry as emerging markets will produce growth rates in the high single digits this year. While conceding that there was a bit of a slowdown in Europe, the company is optimistic of the future”.

Responding to a question as to whether DHL Express would merge with Blue Dart Express Ltd., he said India is a key focus area for the group, and “one of our key plans is to cross-sell the various DHL brands in India”. (DHL Express (Singapore) Pvt. Ltd. holds 81 per cent stake in Blue Dart Express.)

DHL Express is the parent company that holds a majority stake in Blue Dart Express. It has no plans to merge the two entities and the latter would remain a separate brand. While DHL would be the umbrella brand under which all services would be bundled to derive synergies, he said, “we will keep Blue Dart Express Ltd. as a separate brand”.

Both have a combined retail footprint of over 475 service points for domestic and international express services. They are also developing offerings like Temp Controlled Logistics products, Go-green carbon neutral product and a pilot product Smart Truck, and the ‘win-win partnership’ gave the combination an edge over competition.

New modern facility in Coimbatore
The new facility covering an area of over 4,500 sq. ft. has been set up in Coimbatore as per international standards to process higher volume of shipments with improved transit time. The facility is expected to bring in better operating efficiency, reduce transit time, and focus on safe and secure delivery.

Mr. Monteiro also disclosed that the company is recording a double-digit growth in business in the southern region. South India contributed to 30 per cent of its revenue and Coimbatore is a key market in the South. “The new service centre will bring in better operating efficiency for our customers in Coimbatore and reinforce DHL’s leading position in the international time definite delivery.”

DHL Express services a wide variety of exporters and importers in the textile and apparel manufacturing and engineering, rubber and plastics, electronics and electrical sectors and major financial institutions.

Asked if the company is contemplating introduction of direct airfreight service from Coimbatore, Mr. Monteiro said, “if the volumes permitted and an opportunity does come up, the company would definitely look at it”.