‘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.
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