Company Description: DB
Schenker India offers a complete range of international air and ocean freight
services as well as integrated logistics services and global supply chain
solutions from a single source supported by its strong worldwide network
comprising 2,000 locations. It is one of the leading providers of integrated
logistics services in the country to automotive and other industries. With 37 offices and multiple warehouses
covering more than 1.7 million of warehousing space, it has a foothold across
the length and breadth of the country.
How
important is the Indian market for you? How big are you betting on that?
India
is definitely one of the most important markets for Schenker. We have actually
a very huge focus on Asia Pacific markets and India is one of the growth
drivers for us and we have an expectation that we will grow ahead of the
market. On a yearly basis, we should
post a growth of alteast 10-20pc. We are increasing our footprint in this
country. Currently, we have 37 offices and another 3 will be added in the near
term. We are constantly increasing our warehousing network in the country. We are planning to set up a very big facility
on the outskirts of Mumbai at Bhiwandi, Maharashtra wherein we will be running
a 40,000 sq. m warehouse. Currently, the total size of our warehousing facility
all over India stands at 170,000 square metres and by the end of the year we
are targeting to enhance it further to 200,000 square metres. By 2015, we
expect to have a total size of 300,000 square metres. We will also be ramping up
our logistical centres from 37 right now. So you can see the kind of growth we
are looking at in the next few years.
How
big are the operations of the group and do your service products like
Logistics, Air Freight, Ocean Freight, DB Schenker Customs, Complex Projects,
DB Schenker Fairs and DB Schenker Sports Projects offered here in India too?
We
are basically offering all the service products in India that Schenker is
offering worldwide. So we have air freight services for both export and import,
ocean freight services for export and import, contract logistics, etc. We do
customs clearances as well. We have a division for fairs and exhibitions also
for global projects where we handle big contracts such as an OEM looking to set
up a greenfield facility somewhere.
Since
Schenker is a logistics company, do you own a fleet of vehicles and then
integrate it with the public/pvt. transport system that is available in the
region?
No,
we don’t own a fleet of vehicles. Yes, we are a logistics company but we are
asset-light in our business. We work with sub-contractors which are working for
us under contract. So they have dedicated vehicles which are running for us.
And we have no interaction at all with the public sector transportation.
What
is the size of the logistics industry in India and how much is your share in
it?
Honestly speaking, I don’t know about the size of the
logistics industry. But what I know is that in the air and ocean freight
industry, we have a marketshare of around 6-8pc. But that does not include
contract logistics and distribution.
How
are your operations different from some of the existing players in India?
As
compared to the local players, we can offer a total supply chain of end-to-end
solutions through our network. This is because we are a globally operating
company running more than 2,000 offices worldwide. We operate in more than 130
countries. A customer here in India will get all his transportation needs like
import-export from a single source. This is what differs us from local players.
If you compare us to our global competitors, I would say we are the No. 2
player in the logistics space. This of course gives us an edge over many of our
competitors.
As
a logistics player, you serve diverse industries,automobiles being one. Is this
your biggest client and what are the services being offered here? Also, what
are the modern ways you adopt to enhance efficiency?
The
automotive vertical is very important for us. We are into import and export of
automotive components and parts through our ocean and air freight services. We
do the customs clearance in a reliable and expeditious manner and deliver it to
their production facilities. For some of our customers, we do logistics and
movements within their plants. We are also into exporting and importing of
fully built vehicles for some of the manufacturers. However, it is not the
vertical where we have most of our customers. The electronics industry gives us
the maximum revenues. For enhancing the OEMs’ efficiency, we give the security
to the local automotive manufacturers that they get their parts in time.
What
is your view on India’s current infrastructure? Is it a major impediment to
your logistics business?
The
infrastructure here in India is definitely not on par with developed countries
like Europe or United States. The country’s infrastructure needs a further
enhancement. However, what I can see a lot was done in the last two-three years
specifically for airports, seaports. There are still some additional
developments necessary and the major opportunity for improvement is with the
road and rail infrastructure of this country. As more of our automotive
customers want their readymade cars to be moved by rail, more such
(infrastructure) facilities are required.
Lastly,
where do you see your company in the coming years in the logistics space?
At
the moment, we are among the top 5 logistics providers in India and it is
clearly our aim to become the number one logistics provider within the next
three years. To further our objectives, we will enhance our total supply chain
solutions offering to our customers. In the coming years, we will increase our
revenues by 10-15pc on a yearly basis.