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DHL Supply Chain Invests INR 65 Crores in New Multi-user Site at Luhari, Delhi

2013-05-21 16:30 4104
 
  • Launches 320,000 sq. ft. facility targeting the Consumer, Retail and Automotive sectors; to be expanded in phases to 600,000 sq. ft.
  • Sets up state of the art facility with latest equipment and technology to deliver integrated and sustainable solutions to create competitive advantage
  • Strategic location will include major transport hub

NEW DELHI, May 21, 2013 /PRNewswire/ -- DHL Supply Chain, the global market leader for contract logistics solutions, today announced an investment of INR 65 crores at the launch of its new multi-user warehouse in Luhari, Delhi. Spread across 320,000 sq. ft, this facility will meet the growing customer demands from the consumer, retail and automotive sectors.  Strategically located in North India, this region contributes 25% of the country's GDP with an average annual growth rate of 16.42%(1) with large investments being made by the government in infrastructure development.

P&G, one of India's largest and fastest growing consumer goods company is DHL's anchor customer at the multi-user site at Luhari. "We see great value in utilizing this new multi-user warehouse with its innovative solutions which helps us manage costs with faster delivery and reliability.  DHL's unique insights and global experience of managing consumer supply chains allows us to optimize and simplify our end-to-end supply chain", says Gurunath Nayak, Supply Chain Head-India, Procter & Gamble.  DHL Supply Chain also manages the logistics activities at P&G's manufacturing plant at Mandideep, Madhya Pradesh and has been successfully collaborating with P&G for over 8 years.

Last year DHL Supply Chain had announced an investment of INR 685 crores to strengthen logistics infrastrucre in India to set up multi-user sites in 8 cities and augment its transport fleet.  Since then, the company has moved swiftly to execute these investments by adding 670,000 sq. ft of warehousing space with its two multi-user sites in Mumbai and Luhari.  Plans are on track for more such facilities in Bengaluru, Ahmedabad and Chennai later this year.

Oscar de Bok, CEO - South and Southeast Asia, DHL Supply Chain said, "India is a significant market for us.  This facility is part of our ongoing investment in infrastructure development to keep pace with the rapid growth of the logistics market in this country.  By setting up world class infrastructure in India we continue to meet the increasing logistics and warehousing needs of our customers enabling them to effectively expand their businesses"

New multi-user warehouse 

Complementing its first multi-user warehouse in Bhiwandi, Mumbai, the new 320,000 sq. ft facility is DHL Supply Chain's second multi-user site in India and part of its ongoing infrastructure investment in the country.  Built to world class standards with state of the art features customized to suit specific requirements of customers, the facility can consolidate, store shipments and re-distribute them to several distribution channels in the region.  The facility is designed with improved infrastructure, which includes continuous loading docks and dock levelers, state-of-the-art racking and traffic management for a seamless flow, advanced material handling equipment such as a telescopic conveyor, RF technology for barcode scanning and integrated IT solutions with warehouse management systems (WMS).  The warehouse is facilitated with primary and backup high bandwidth Multi-Protocol Label Switching (MPLS) connectivity and offers best-in-class processes for operational excellence.  Additionally, the site uses green technology like LED lighting, natural lighting and wind assisted ventilation.  

Goods & Services Tax (GST)

With the impending introduction of GST, DHL Supply Chain has invested in this large scale shared facility with multiple users at Luhari, to assist corporates in Gurgaon and the surrounding areas, consolidate their smaller sites which will no longer be economically viable.  Simplifying the distribution network and merging smaller warehouses to regional centres will result in economies of scale being generated.  Warehouse locations will no longer need to be fixed depending upon Central Sales Tax constraints but will be decided based on demand and supply patterns, centre of gravity, long term logistical and real estate considerations.  "Large shared Distribution Centers offer not only strategic, operational and financial benefits, but allow for better cost control, forecasting, inventory rationalization and synergies for consolidation in transportation," added Oscar de Bok.

Targeted growth in key sectors

The new facility at Luhari has been designed to provide customers safe, compliant and consistent integrated logistics solutions to create competitive advantages by improving end-to-end supply chain solutions and cost efficiencies.    Vikas Anand, Chief Operating Officer, DHL Supply Chain India said, "The rapidly growing industrial belt around Luhari provides tremendous potential for us to strengthen our customer footprint in the region.  We have developed core expertise in our global network for key focus sectors and with this facility we are now in a position to replicate these best practices for local execution."

Transport Hub

The new facility is strategically located close to the NH 8 and NH 71, and offers great potential for transportation of goods from western and southern India to the north while simultaneously connecting Punjab and Himachal Pradesh with further connectivity to the entire National Capital Region of Delhi. DHL Supply Chain's transport offering will use containerized vehicles of various capacities and offer customized solution design and support in addition to tracking of shipments.

Apart from the standard FTL service, DHL Supply Chain has successfully introduced a unique approach, "carry more for less", which develops customized delivery solutions for efficient distribution of products across the country.  This includes, inbound to manufacturing, milk runs, customized vehicle design, a dedicated fleet, improved handling and network designing.

Note:

  1. http://unidow.com/statewise_gdp/north_india.htm

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DHL - The Logistics company for the world

DHL is the global market leader in the logistics industry and "The Logistics Company for the world". DHL commits its expertise in international express, air and ocean freight, road and rail transportation, contract logistics and international mail services to its customers. A global network composed of more than 220 countries and territories and about 285,000 employees worldwide offers customers superior service quality and local knowledge to satisfy their supply chain requirements. DHL accepts its social responsibility by supporting environmental protection, disaster management and education.

DHL is part of Deutsche Post DHL. The Group generated revenue of more than 55 billion Euros in 2012.

Media Contact:

DHL Asia Pacific & EEMEA
Corporate Communications and Sustainability
Anita Gupta
Tel: +65-6771-3333
Fax: +65-6771-3322
Email: apeemeamediarelations@dhl.com

Source: DHL
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