DHL invests USD10 Million in India’s First Free Trade Warehousing Zone

* First global logistics company to set up a facility within the inaugural Free Trade Warehousing Zone in India.
* DHL’s facility will facilitate ease of trade in India for businesses across several industries.

DHL

DHL, the world’s leading logistics company, today announced a USD10 million investment by its freight forwarding division to establish a logistics and warehousing facility in the upcoming Free Trade Warehousing Zone (FTWZ) in Tamil Nadu. DHL Global Forwarding will be the first global logistics company to operate a facility within the FTWZ that offers customers the benefits of a duty free zone with high quality infrastructure.

“With our experience in managing customs and tax issues for our customers, we acted swiftly to introduce pioneering initiatives in Chennai’s Free Trade Warehousing Zone. This will streamline customs procedures and make trading easier for our customers in India. By providing sound infrastructure, this Free Trade Warehousing Zone facility will considerably improve quality standards while reducing overall logistics and storage costs, especially for companies without their own set up in India,” said Amadou Diallo, Chief Executive Officer, South Asia Pacific, DHL Global Forwarding.

Strategically located along the main freight and industrial axis with close proximity to ports, major roads and rail services, the facility in Sriperumbudur will be located 32 km to Chennai International Airport; 38 km to Port of Chennai; 319 km to Bengaluru International Airport and 646 km to Hyderabad International Airport. Spanning a total land area of over 260,000 sq ft, the FTWZ facility will provide consolidated operations for distribution management and trading, both into and out of India, with inventories held in India on account of foreign or Indian entities.

Being the first global logistics company in the country to have a facility inside the FTWZ provides DHL Global Forwarding the first mover advantage by offering a number of benefits to customers. The new facility will feature both covered and open warehousing, and offers a suite of services that includes:

- Speedy delivery of cargo: a one-stop customs clearance capability which will result in quick processing of import and export declarations coupled with efficient clearance

- Unique sector services: bespoke solutions that cater to sectors such as Aviation, Fashion & Apparel, IT, Life Sciences, Oil & Gas and Telecommunications

- Integrated solutions: packing management, sorting, inspection, re-invoicing, strapping, kitting, assembly of Complete and Semi Knocked Down kits

- Taxation benefits: duty free zone providing exemption on Customs, Countervailing[1]/ Excise duty and Service Tax on goods stored in the FTWZ facility

- Transportation: a transportation network for movement into and out of the FTWZ

- World class infrastructure, systems and amenities: ensure efficient on-time performance, distribution and inventory management.

“With cost-effective skilled labor, transportation facilities, integrated warehouse management and sophisticated equipment, we are well positioned to capitalize on the rapidly growing domestic market,” said Christoph Remund, CEO, DHL Lemuir Logistics Pvt. Ltd. “Additionally, India serves as a major sourcing and supply hub which offers tremendous market potential for our growth and expansion in the country. But more importantly, our investment in the Free Trade Warehousing Zone will simplify trade and encourage foreign trade and warehousing activities in India, thereby creating more employment.”

Amit Dawar, Director – Customs Brokerage & Compliance, DHL Lemuir Logistics Pvt. Ltd., added, “This is the first time that businesses in India will have access to a FTWZ facility and gain significant benefits from the simplified trade processes. As the first mover in the industry, our facility in Sriperumbudur offers immense possibilities to both importers and exporters out of India.”

The total logistics market in India earned revenues of USD75.19 billion in 2009, representing approximately 6.2 percent of the country’s GDP[2]. The market is expected to reach USD120.42 billion in 2014, witnessing a CAGR of 9.9 percent between 2009 and 2014[3].  DHL Global Forwarding, with its well-established operations and widespread locations, is distinctly positioned to capitalize on this fast-growing market and strengthen its market-leading position in India.