DHL eCommerce invests in India to tap surging demand
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DHL eCommerce, a division of Deutsche Post DHL Group, is investing €70 million to strengthen its operations to meet the fast-growing demand for e-commerce logistics services in India.
Through its subsidiary Blue Dart Express, this investment will go into the expansion of its air hubs in Delhi and Mumbai, which are part of its network of 13 air hubs in India. The latest investment supports the growth of B2C e-commerce in India, and is part of the company’s broader plan to aggressively expand across Asia Pacific.
“The US and Asia Pacific are the two largest B2C e-commerce markets in the world, and the opening of these new facilities will be another milestone in the expansion of DHL eCommerce logistics network,” said Charles Brewer, CEO, DHL eCommerce.
“India is a really important market for us and is one of the fastest-growing, with B2C e-commerce expected to grow from €9.6 billion in 2016 to €30-40 billion in 2020,” he said.
“Recognising the tremendous potential in Asia Pacific, we are making aggressive steps to ensure that our customers are well supported to tap into the growing e-commerce market,” added Malcolm Monteiro, CEO, Asia Pacific, DHL eCommerce.
In June 2016, DHL eCommerce announced that it will expand its overall presence in China by 50 per cent, with the expansion of the distribution centres in Shenzhen, Shanghai and Hong Kong. Earlier in January 2016, DHL eCommerce launched domestic delivery operations in Thailand and announced plans to double its fleet and number of depots by 20
The company is also planning to introduce its newly-developed drone, Parcelcopter, for last-mile delivery services in India after getting necessary clearance, Brewer said. “In terms of using the Parcelcopter in India, we would love to do so, but of course is predicated on the local legislation. So whilst you may not see a Blue Dart Parcelcopter flying around India anytime soon, we will as soon as allowed to do so,” he added. The Parcelcopter has successfully completed its trial run in Germany.
Questions & Answers
Q.Which specific parts of DHL eCommerce's Indian operations will benefit from the new investment?
Which specific parts of DHL eCommerce's Indian operations will benefit from the new investment?
The investment of €70 million will go towards expanding the air hubs in Delhi and Mumbai. These two facilities are part of the company's existing network of 13 air hubs across India.
Q.What is the expected growth trajectory for B2C e-commerce in India?
What is the expected growth trajectory for B2C e-commerce in India?
B2C e-commerce in India is projected to see significant growth. It is expected to rise from €9.6 billion in 2016 to somewhere between €30 billion and €40 billion by 2020.
Q.Has DHL eCommerce made similar expansion efforts in other Asian markets recently?
Has DHL eCommerce made similar expansion efforts in other Asian markets recently?
Yes, DHL eCommerce announced expansion in China in June 2016, increasing its overall presence by 50 per cent. It also launched domestic delivery operations in Thailand in January 2016, planning to double its fleet and depots.
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