DHL supply chains are to be expanded in India


Dhe Deutsche Post is stepping up its activities in India in order to participate in the rapid growth of the subcontinent. To this end, the DHL supply chains in the country and the connections abroad are to be expanded as quickly as possible. In just three years, the group wants to double the number of its employees in the Supply Chain division in India to 25,000. The group currently employs around 30,000 people in India, most of them in the express business. At the same time wants DHL mobilize half a billion euros to boost the supply chain business for industry and commerce in the world's fifth-largest economy.

Christopher Hein

Business correspondent for South Asia/Pacific based in Singapore.

“The Asia Pacific region currently represents approximately 15 percent of DHL Supply Chain's global revenues; however, it is the fastest growing region where India is a key player. The Indian logistics market, which currently has a volume of more than 200 billion dollars, will grow by around 10 percent annually over the next five years to around 330 billion dollars,” says Terry Ryan, Asia Head of Contract Logistics at DHL. The rating agency Fitch accepted its growth forecast for India on Thursday from 7.8 to 7 percent. But the country of almost 1.4 billion people is likely to remain the fastest growing economic power in the medium term.

“Supply chains are now an issue for the board”

Thanks to high subsidies, the electronics industry is now also growing. Only Apple suppliers Foxconn and Vedanta build a chip factory for 20 billion euros. "India is already the eighth largest market in the world for e-commerce and the second largest for digital connectivity," says Oscar de Bok, head of the Supply Chain division. "Since 2015, our Indian business has grown by 14 to 15 percent." Thanks to the planned expansion, the growth rate will rise to an estimated 22 percent, the manager predicts. With the investments, DHL wants to double its often digitally equipped department stores to around two million square meters. Centers are to be built in the economic centers of Bangalore and Pune near Bombay. The greatest challenge lies in finding and retaining suitable employees. DHL works with a young team, the average age of which is only 29 years.

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For detailed view

The Germans see themselves as market leaders in the clothing sector and have “strong positions” in automotive manufacturing, technology and healthcare. India is the world's largest producer of vaccines and DHL has played an important role in supplying corona vaccines. “We sense that production patterns are changing. Supply chains are now an issue for the board. He doesn't necessarily want to bring everything home, but he does want to have different production centers. The manufacturing industry in India will benefit from this and from the government funding,” says de Bok.



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