DHL eCommerce, a division of the world’s leading logistics company, Deutsche Post DHL Group, is investing EUR70 million (51,184 lakh rupees) to strengthen its operations to meet the fast-growing demand for quality 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.
Catering to the increasing shipment volumes by B2C e-commerce consumers in India, the air hubs, measuring 5,761 sqm and 4,274 sqm in Delhi and Mumbai respectively, will be equipped with automation to handle a daily volume of over 500 tonnes.
The automation in both air hubs enables Blue Dart to process higher volumes of inbound and outbound shipments in a shorter span of time for distribution to consumers across India by air. With the Mumbai air hub located at an airside facility, it will further accelerate the speed of domestic cross-border air shipments, streamlining customs processes and boosting on-time performance.
“The e-commerce industry is an extremely exciting one that offers tremendous opportunities for businesses and consumers alike. The global B2C cross border e-commerce market will multiply in size to USD1 trillion in 2020,” said Juergen Gerdes, CEO, Post — ecommerce — Parcel, Deutsche Post DHL Group.
“The growth is driven by increasing consumption from expanding middle classes, greater mobile and internet penetration and improving logistics and infrastructure as consumers increasingly shop online and expect shorter delivery times. With our added focus on innovation such as the StreetScooter and In-Car Delivery, we are gearing up to ensure we stay ahead of the game and be able to anticipate and meet the needs of the overall industry, e-tailers and end customers.”
“The U.S. 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. India is a really important market for us and is one of the fastest-growing, with B2C e-commerce expected to grow from EUR 9.6bn in 2016 to between EUR 30-40 bn in 2020,” said Charles Brewer, CEO, DHL eCommerce. “This investment in India, as well as recent investments in the Americas and elsewhere in Asia Pacific this year, showcases our commitment to the e-commerce industry by delivering high quality, reliable logistics solutions to meet the rising demands of e-commerce consumers.”
“Recognizing 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,” says Malcolm Monteiro, CEO, Asia Pacific, DHL eCommerce. “With retail e-commerce in India expected to grow at a CAGR of 30 to 35 percent by 20203, the air hubs will bolster our operations to better serve the growing e-commerce market in the country. We see tremendous opportunities across Asia Pacific as well, where many emerging economies are located, and will expand our footprint accordingly. It’s exciting times ahead as we continue to focus our efforts on delivering fulfillment, cross-border shipping, and last-mile delivery solutions to meet the needs of the e-commerce industry.”
“The expanded facilities in Delhi and Mumbai, coupled with our flexible and easy-to-use e-fulfillment solutions, will enable e-commerce sellers to distribute their products to over 34,000 domestic locations effectively. Our EUR70 million investment will ensure that we continue to lay a strong foundation to offer even greater support to our e-commerce customers,” said Anil Khanna, Managing Director, Blue Dart Express.