DHL India fears slump in business
DHL India is worried about getting hammered by an impending slowdown in certain sectors and the economic slump in the US.
Sectors such as textiles, apparel and leather have already shown a downturn in shipments.
“There has been a general slowdown which is not only because of rupee appreciation. However, the impact of the US recession will be indirect,” said Chandrakant Pitre, national marketing head, DHL Express India Pvt Ltd.
Pitre was in the city to inaugurate a 16,431-square-foot service centre, which will handle over 1,110 inbound and outbound shipments a day, weighing more than 1.3 tonnes.
Pitre said clients preferred the freight mode of delivery these days, which takes longer to deliver but costs less than the express mode, affecting the business of logistics firms.
However, DHL expects sectors such as pharma, auto, electronics and high-end products — all of which are on the upswing — to add to its coffers.
DHL will also rely on the presence of Blue Dart, in which it has an 81 per cent stake, to bolster its presence in the country.
According to industry estimates, the Indian logistics market is expected to reach USD 122 billion by 2015 from USD 45 billion now. Logistics costs in India are 13 per cent of its GDP compared with 11 per cent in Japan, 10 per cent in Europe and 9 per cent in the US.
DHL has invested around USD 300 million in the country in the past four years, including USD 163 million for an 81.03 per cent stake in Mumbai-based Blue Dart Express.
DHL India is worried about getting hammered by an impending slowdown in certain sectors and the economic slump in the US.
Sectors such as textiles, apparel and leather have already shown a downturn in shipments.
“There has been a general slowdown which is not only because of rupee appreciation. However, the impact of the US recession will be indirect,” said Chandrakant Pitre, national marketing head, DHL Express India Pvt Ltd.
Pitre was in the city to inaugurate a 16,431-square-foot service centre, which will handle over 1,110 inbound and outbound shipments a day, weighing more than 1.3 tonnes.
Pitre said clients preferred the freight mode of delivery these days, which takes longer to deliver but costs less than the express mode, affecting the business of logistics firms.
However, DHL expects sectors such as pharma, auto, electronics and high-end products — all of which are on the upswing — to add to its coffers.
“Any improvement in infrastructure by the government will be welcomed by the industry and we hope that the projected investments of USD 17 billion in transport infrastructure by 2010 shall go a long way in helping the growth of the Indian logistics market,” Pitre said.
DHL will also rely on the presence of Blue Dart, in which it has an 81 per cent stake, to bolster its presence in the country.
The top 12 third-party logistics providers in India comprise less than 15 per cent of the overall industry, which is fragmented and needs sizeable investments and fleet strength to leverage the market.
According to industry estimates, the Indian logistics market is expected to reach USD 122 billion by 2015 from USD 45 billion now. Logistics costs in India are 13 per cent of its GDP compared with 11 per cent in Japan, 10 per cent in Europe and 9 per cent in the US.
DHL has invested around USD 300 million in the country in the past four years, including USD 163 million for an 81.03 per cent stake in Mumbai-based Blue Dart Express.
