Leading global mail and logistics group Deutsche Post DHL, which makes money by shipping parcels around the world, plans to invest over 100 million euros( about Rs 800 crore) into its Indian arm over the next two years to create infrastructure and to set up fulfillment centres. The aim is to become the go-to for services related to e-commerce and DHL's subsidiary Blue Dart will play a key role in riding the e-commerce wave.
Deutsche Post has also chosen India to pilot development of its e-commerce business model for Asia Pacific, Deutsche Post DHL chief executive Frank Appel said as he believes India has grown at the fastest rate for the company.
"This region is expected to soon surpass North America and Europe as the biggest online market in the world. As the leading logistics company with an unsurpassed global footprint, there is a huge opportunity for us to become the world's leading provider of e-commerce logistics and we have a ready solutions infrastructure in India to pilot our solutions," Appel said.
According to the company's global e-tailing report, e-commerce share of over all trade volume of emerging markets will be up to 30 per cent (40 per cent in developed countries), by 2025.
Through its domestic subsidiary Blue Dart Express, the German logistics giant is investing in infrastructure and the development of fulfillment centre, multiple delivery and payment options as part of its aim to become a leading player of e-commerce services, the company said.
In an interview with CNBC-TV18, Appel further said that fulfilment centres are where the company will store and provide opportunity for middle and small sized companies to connect to their customers. "We also have the laregst warehousing capacity which we will leverage. Also we find opportunities to expand our Blue Dart network to support this foray and see cross-border movements as a big opportunity," he added.
The company will set up 15 fulfillment centre across locations, including Delhi, Bangalore and Mumbai as well as in tier-2 cities as part of this plan, he said. Blue Dart Express managing director Anil Khanna said e-commerce portals like Flipkart, Amazon among others have evinced interest in the proposed fulfillment centres.
"We are working closely with leading brands, market place sellers and retailers to help them establish a sustainable e-commerce footprint. That's why we are investing in the right infrastructure, including IT, to build the right model for consumers and sellers," he said.
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