India is vibrant market from an investment perspective as all indicators are pointing in right direction. We feel we can become valuable partner and can contribute to development of industry. We are looking at that market with a lot of attention, says Gianfranco Sgro, EVP, Contract Logistics, Kuehne+Nagel Group.
CT Bureau
How do you see Indian logistics sector evolving?
The logistic industry in India is probably one of the most vibrant geographies where we operate. The logistics sectordemands or sometimes anticipates customer behaviour and manufacturing behaviour. India is known to be probably one of the most dynamic countries in term of manufacturing and evolution of the consumer approach. And this is generating interesting dynamic for our industry. Kuehne+Nagel is well equipped in that direction because we can support both the Indian and global customers. So, Contract Logistics, fulfilment and delivery are our key focus areas.
Brief us about the scope of contract logistics sector in India?
The Contract Logistics sector deals with the domestic consumption. This is subjected to a single digit or double-digit growth. And these are by far the dynamic numbers that you can see on a global scale. So, from growth and competence perspective, Contract Logistics is interesting. There is a growing need of digitalisation, automation, sustainability, and new solutions.
If we look at the vertical component, the consumer plays an important role and has strong dynamics. We are also a global leader in the healthcare distribution. We are looking at healthcare sector in India very carefully.
How do you look at India as a potential investment destination?
India is an important market for us from an investment perspective, because all the indicators are pointing in the right direction. India is important not only from a return-on-investment perspective, but also, we feel that Kuehne+Nagel can be a valuable partner and can contribute to the development of the logistics industry in India. We have invested heavily in our people, solutions, footprint, we are growing by 150,000 square metres per annum in term of installation in tier I, tier II, and tier III cities.
How crucial is sustainability for your business operations?
Sustainability is a key aspect of the logistic development and is becoming a strong pillar. We are investing in sustainable solutions for all our products, in air logistics, and sea logistics, with the access to biofuels. The same focus is on our Contract Logistics business as well. All our new installations are designed to the highest standards, optimising energy usage, minimising plastic consumption, and conserving water. These principles are central to our commitment to sustainability. The more we can leverage data, the best we can optimise the supply chain. Our integrated logistics offering is exactly in that direction, providing end-to-end solutions to reduce emissions.
Any plans to expand your trade and network here?
India is a fast-growing market. It offers best-in-class solutions in terms of infrastructure and technology. Infrastructure is improving here at great pace. As a global firm, we must tap on these areas, and this will be a key part of our success. India is among the top 10 countries in our company in term of presence, but there is absolutely no doubt in saying that it will be soon in the top five.
