FM Logistic have announced plans to invest $150m over the next five years in its own warehouses and distribution centres in India.
As part of the investment, the company will start operating a multi-client facility in Delhi National Capital Region in April 2019 and expand its multi-client warehouse in Mumbai. FM Logistic has also acquired 31 acres of land in Jhajjar, near Gurugram, to build a new warehouse. Once set up, the facility designed by FM Logistic’s sister company, NG Concept, will provide 70,000 sq m (750,000 sq ft) of warehousing space for up to 100,000 pallets. In addition to increasing its warehousing and transport capacity in India, FM Logistic is investing in a new warehouse management system and transport management system to provide its customers with more visibility over their shipments.
The investment is partly motivated by the growth potential in logistics offered by the indirect tax reform (Goods and Services Tax, or GST) implemented by the Indian authorities.
Jean Christophe Machet, CEO, FM Logistic said: “We see a huge potential in the Indian market, following the acquisition of Pune-based Spear Logistics in 2016. The GST reform has already enabled us to streamline and optimise the efficiency of our operations. We expect a strong double-digit growth in India in FY 2019-20.”
Source: FM Logistic
