TNT expects Indian expansion
TNT anticipates strong growth in India, attributed by its growing air and road network connectivity and service expansion in the country. The company also said the impending national sales tax introduction will drive freight demand.
Onno Boots, regional managing director of TNT Southeast Asia and India said: “India’s holds a vast wealth of potential. Despite the global economic challenges, the country surpassed expectations by growing 7.9% last year up to the third quarter. Many Indian businesses are not growing their footprint domestically, but also internationally. These are exciting times for TNT as we intensively build our connectivity within India to provide customers a strong, integrated air and road network across the country, and across key international trade lanes such as China, Europe and Southeast Asia.”
In 2009, TNT saw growth in India, especially in the hi-tech sector, including service logistics sector and the healthcare sector. In the hi-tech sector, TNT has been working with several Fortune 500 companies in the management of its after-market business through the establishment of regional distribution centres that reduce delivery time and costs.
Such distribution centres spread beyond India into Southeast Asia tapping on to TNT’s Asia Road Network – a road transportation system managed by TNT, spreading across six countries, from Singapore to the south of China, in 125 cities.
As the global economy recovers, TNT intends to see stronger growth in these sectors which will be accelerated by the implementation of a country-wide goods and services tax in April. Current taxes in India are consist of national, state and local taxes which hamper the development of supply chain solutions that will propel domestic and international trade, and subsequently the need for more time and day definite services.
TNT will be launching a high growth strategy this year that will include enhanced international connectivity of the India network to its China and European network as well as a growth plan for its India Domestic Network. The announcement on TNT’s extended air network to India will be made by the end of the second quarter this year.
