TNT plans to invest in smaller cities in India
TNT India plans to broaden its express delivery network to smaller cities expanding its presence in the country in line with its global strategy of building quality network in emerging markets, Indian newspaper Business Standard reported.
The company’s expansion plans follow the integration of TNT Speedage, its Indian road express division into TNT’s global information technology system, called Global Link, and its re-branding to TNT.
TNT aims to buy sites covering a total of around 37,200 sqm in the next three years to expand its hub and spoke distribution network in addition to its existing 18,600 sqm in the five major cities of Bangalore, Delhi, Mumbai, Nagpur and Kolkata, the newspaper wrote.
Abhik Mitra, managing director at TNT India, said: “We have set up hubs in these cities and will be expanding them further so that each hub will further connect with 20-30 depots (spokes) around them. We are looking to set up warehouses in major cities to cater to the requirements of our customers.”
“We will be pumping in additional investment in India over the next couple of years to carry out expansion of the network in all tier-2 and tier-3 cities and towns in India. We have consumed most of the €100 million investment announced for India two years ago and are in need of fresh funds to complete the expansion of our network,” he added.
According to Mitra, the major growth drivers for the company’s business in India are telecoms, retail, life sciences, pharmaceuticals, automobile and auto components and high-technology sectors. TNT India today claims to have a market share of 18 pct in international express cargo market, 16-17 pct share in road express business and about 5 pct in domestic air express business.
TNT acquired Speedage Express Cargo Services, one of the Indian road express companies, in September 2006. It has successfully completed the integration of 168 Speedage locations on Global Link, its tracking software, and has rebranded Speedage services as TNT.
