Global logistics provider Deutsche Post DHL has found a new avenue of growth -- the booming e-commerce sector. And with the Asia-Pacific region promising to spearhead growth in this sector, the company has zeroed in on India to place its bets, reports CNBC-TV18'S Farah Bookwala Vhora & Archana Shukla.
For DHL, the Asia Pacific region is the market of the future, why? It is expected to outpace North America and Europe as the biggest online market in the world, as e-commerce sales hit USD 1,052 billion by 2017.
India, which is at the starting stages of its own e-commerce boom, has caught the logistics giant's fancy and DHL's subsidiary Blue Dart will play a key role in riding the e-commerce wave.
Frank Appel, CEO, Deutsche Post DHL said, "India has grown at the fastest rate for us, even more than the underlying Gross Domestic Product (GDP). We have a large network in place and hence it makes India a very important market for us"
On being asked by Archana, "How are you intending to build the e-commerce play? granular details on the kind of e-facilitation centers and warehousing that you will put in place?" Appel answered, "e-facilitation is the first bit, it is being set up. Fulfillment centers are where we will store and provide opportunity for mid and small sized companies to connect to their customers. We also have the largest warehousing capacity which we will leverage. Also we find opportunities to expand our blue dart network to support this foray and see cross-border movements as a big opportunity"
On being asked, "What are the investments that DHL plans to make in India to roll out the e-commerce foray?" Appel answered, "We will be investing 100 million euros in all our business segments, not specific only to e-commerce."
Archana further asked him on how he sees the Indian logistics space post the budget announcements by the new government, which focused a lot of creating warehousing spaces, to which he answered, "India needs to become an open market. We have see countries which have an open market system develop better than the others. And with the directions in the policies we see India moving in that direction. It would be great to see how some of these policies are rolled out."
India may have had some problems with a few of its policies, but Appel says the new government's promises on infrastructure and the goods and services tax (GST) are reassuring and once properly implemented, booming growth will be a signed, sealed and delivered.
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