Logistics giant, DHL Group is looking forward to expand warehouse capacity in India. By seeing the new tax system DHL India is planning to open more warehouses in various cities to secure the products and to increase the ecommerce transactions, not only this they are also looking forward to improve the transportation facilities and to associate with local transporters to deliver their product on time. Transportation facility connects one another so it should be proper and will not be delayed. They can also use railways to save time and to save the cost of fuel, this might cost them cheaper and their purpose will be fulfilled.
Vikas Anand, Managing Director at DHL India has commented that “We see business-to-consumer as the next big challenge, a big growth area and we really want to tap into that through businesses such as modern retail”. He also stated the growth and annual earnings, he roughly mentioned that sales have grown at about 30% annually from last five consecutive years and they also hold 8% – 10% share of the total Indian logistic market (around ₹22k Crore).
Logistic Giant is planning to invest more than ₹643 Crore in additional capacity in the coming three to four years. Out of this amount 65% will go into warehousing and to store products and the remaining will be used to increase the warehouse space to more than 10 Million square feet by 2020. Right now, they just have a warehouse space of 7 Million sq. ft. which is located near metropolitan cities will make up 70% of the total space. The remaining space will be spread across various cities and towns that would be closer to the end users.