‘Spear­ing’ ahead in In­dian lo­gis­tics

With its in­ter­na­tional mas­tery in dif­fer­ent ver­ti­cals of sup­ply chain and Spear Lo­gis­tics’ strong base in In­dian mar­ket, Herve Du­jardin, Global Sales Di­rec­tor, FM Lo­gis­tics, talks about trends and ex­pan­sion plans.

Cargo Talk - - Interview - Herve Du­jardin

FM Lo­gis­tics has re­cently ac­quired a ma­jor­ity stake in Spear Lo­gis­tics, why you have cho­sen Spear Lo­gis­tics for the part­ner­ship? FM Lo­gis­tics is one of the in­ter­na­tional lo­gis­tics play­ers in the dif­fer­ent fields of sup­ply chain man­age­ment. T h e com­pany is be­ing recog­nised as pro­fi­cient in the con­sumer goods, re­tail, per­fume/ cos­met­ics, in­dus­trial and health mar­kets. With a pres­ence in 13 coun­tries, FM Lo­gis­tics is a

com­pany of 22,000 peo­ple. When it was about en­ter­ing In­dian mar­ket, Spear Lo­gis­tics was the per­fect choice for in­vest­ment. Only about eight to 10 per cent of the mar­ket is catered to by or­gan­ised play­ers like Spear. See­ing the pres­ence of the com­pany from last 15 years and its growth over the years, FM Lo­gis­tics global ex­per­tise in this do­main will help Spear move to the next tra­jec­tory of growth. What are your ex­pan­sion plans and strat­egy for rev­enue?

Our strat­egy is to es­tab­lish our­selves in a promis­ing coun­try. In­dia is a com­plex coun­try, with its own spec­i­fi­ca­tion and cul­ture but I to­tally re­spect the le­gal en­vi­ron­ment of the coun­try. We are plan­ning to trans­fer some good prac­tices in the coun­try which we have al­ready ex­plored in other places such as co­pack­ing and co-man­u­fac­tur­ing. We have 200 ma­chines for var­i­ous kind of co-pack­ing.

This is an un-touched busi­ness in In­dian mar­ket, no one could have thought that a 3PL or con­tract lo­gis­tics com­pany could do such kind of busi­ness. In In­dian sce­nario, this busi­ness is be­ing out­sourced but from some un­or­gan­ised player. How­ever, we need to see le­gal­ity, tax com­pli­ca­tions, etc into that be­fore tak­ing any de­ci­sion. This is one of the op­por­tu­nity we are look­ing in In­dia. One of our other strate­gies will be bringing our global cus­tomers on In­dian mar­ket board as well. We have few global cus­tomers, we are work­ing with them in mul­ti­ple coun­tries. We have de­cided to in­vest in main towns of the coun­try where we imag­ine the big po­ten­tial year af­ter year.

In­dia is a com­plex coun­try, with its own spec­i­fi­ca­tion and cul­ture but I to­tally re­spect the le­gal en­vi­ron­ment of the coun­try

How much growth you ex­pect post GST sce­nario?

Though it is quite dif­fi­cult to an­swer the growth in num­bers, but when one talk about con­tract lo­gis­tics mar­ket, ev­ery­one has a pan In­dia net­work. The sce­nario will get change, as the num­ber of ware­houses will get re­duced but the size will in­crease. Hence, busi­ness po­ten­tial will in­crease. We ex­pect min­i­mum 2025 per cent growth.

Pro­fi­cient in the in­dus­trial and health mar­kets and hav­ing a pres­ence in 13 coun­tries, FM Lo­gis­tics is a com­pany of 22,000 peo­ple

Global Sales Di­rec­tor, FM Lo­gis­tics

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