DHL eCommerce invests EUR70 million to give fillip to India’s e-commerce sector

Nov 16, 2016: DHL eCommerce, a division of Deutsche Post DHL Group, is investing EUR70 million to boost 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.

The air hubs in Delhi and Mumbai will be equipped with automation to handle a daily volume of over 500 tonnes. This would enable Blue Dart to process higher volumes of inbound and outbound shipments in a shorter span of time for distribution to consumers across India.

“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.

“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,” added Gerdes.

“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 9.6 billion in 2016 to between EUR 30-40 billion in 2020,” said Charles Brewer, CEO, DHL eCommerce.

According to Malcolm Monteiro, CEO, Asia Pacific, DHL eCommerce, DHL recognizes the tremendous potential in Asia Pacific and therefore is taking steps to ensure that customers are well supported to tap into the growing e-commerce market. “With retail e-commerce in India expected to grow at a CAGR of 30 to 35 percent by 2020, 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,” he said.

“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. As the national leader in door-to-door delivery in India, our deliveries are fully managed end-to-end, including routing, sorting and shipping goods efficiently from the warehouse to customers’ doorstep, to provide customers with consistent service excellence. 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.

No stranger to the e-commerce sector in India, DHL eCommerce has been making sustained investments and innovative solutions in the country over the years, through Blue Dart Express. In 2015, the company launched its Parcel Locker at Gurgaon’s Unitech, Cyber Park, to enable more choice and convenience for consumers to collect their shipments.

Other innovations include Smart Trucks, which uses technology to help vehicles overcome urban logistics challenges, and Mobile Wallets to offer secure and streamlined cash-on-delivery solutions to enable convenient transactions for e-commerce consumers.