Establishment of MMLPs and DFCs are not just essential, but they are the key to unlocking a new era of logistics, marked by improved operational efficiency and cost-effectiveness, says Anish Kumar Jha, Managing Director, Sri Lanka and Maldives, Kuehne & Nagel India.
CT Bureau
How is your business shaping up in India? Share your growth strategies?
We have been able to record 13 to 14 per cent growth in India in the past five to 10 years. In terms of recent innovations, we have our global control tower here where we have scaled up from 45 to 250 people in past three years. And we have plans to go up to 400 in the next two years. It comes with a lot of technological investments though, which has been made globally. We are investing in technology, people, and infrastructure within the company.
Elaborate on your cargo facilities in India?
In India, we have 4,500 employees within the organisation. Altogether, we have 360,000 square metres of contract logistics space this year. We have plans to take it to 450,000 square metres next year. We are growing significantly here. In terms of investments in creating capacity in contract logistics, we have set up logistics centres in Gurugram, Mumbai and Chennai.
How would you rate quality of infra for cargo flow in India?
The next phase of growth is coming from tier II and III cities in India. Infrastructure is much better now as compared to what it was many years ago, especially with Greenfield projects and development of airports in Delhi, Mumbai, Hyderabad and Bengaluru. The infrastructure is top class. We are happy with the development of infrastructure, especially relating to ports and the airports; it was done in the past few years. We are also pleased with the progress of investment in the ports and airports in India.
What are the challenges faced by K+N in the Indian market?
The overall supply chain efficiency in India has improved tremendously. While disruptions will remain constant and driven by complex and diverse factors in the New Year, one thing is clear: Resilience, agility, and adaptability will be the pillars of success. More than ever, we need to collaborate more closely with our customers. The future of Indian logistics hinges on substantial investments in technology
and infrastructure.
Establishment of MMLPs and DFCs, enhancement of digital infra, and promotion of automation in logistics are not just essential, but key to unlocking a new era of logistics. We continue to look forward to the nation’s progress and investment in the infra. Talent acquisition is key for K+N India. Encouraging public-private collaborations and investing in skill development programmes will not only enhance overall efficiency of the sector but also foster a sense of collective responsibility. A cohesive ‘One India’ logistics ecosystem will strengthen India’s global value chain linkages and contribute to economic development.
Any plans to expand business in India?
We have opened three or four new Customer Care Locations (CCLs) in India this year. Mainly these are in tier II and III cities. We are also planning to open more CCLs. We have eeven have opened fulfilment centres in Kolkata, Patna, and Gurugram. For Contract Logistics, we are also reaching out to tier II and III cities. The plan is firm, and we are moving ahead with the investments.
Which is the firm’s preferred mode of transportation?
One of the first factors is, the expected timeline for delivery. What is the cost sensitivity of the product? How quickly the product needs to be delivered and consumed? These are factors decide the mode of transport. We prefer transporting time-sensitive products, high-value shipments—to pharmaceutical, high-tech, or fast fashion. When it comes to sea logistics, we ferry bulk and non-perishable products, industrial goods, heavy and bulky items, which are not immediately required, and can obviously take a little while longer, and less costly route for travelling.
Which investments are done in tech that enhance sustainability in operations?
Our air logistics team has shifted airport transfers from warehouses to electric vehicles (EVs). Our road logistics team uses seven EVs. We are in advanced level of discussion to put in place dedicated customer specific EVs and, are doing well in managing the sustainability agenda. We remain committed to the targets we have set out to achieve.
