TNT to invest Rs 531 cr in 5 yrs
TNT would invest over Rs 531 crore in infrastructure, trucks, information technology and manpower in India.Updated: Mar 14, 2006 17:30 IST
Logistics network company TNT would invest over 100 million euros (about Rs 531 crore) in infrastructure, trucks, information technology and manpower in India in the next five years as it feels infrastructure sector in the country would swell two-folds by 2014.
"As India's market is among the fastest growing markets in the world, there lies a huge opportunity for a logistics company like us. We are committed to investments worth 100 million euros in India in next five years," TNT CEO Peter Bakker said addressing a CII organised conference 'Global Focus on developing Logistics Networks in Asia.
The company is looking at strengthening its network within the country and increase the headcount from current 1,000 to 2,000 by this year end.
Infrastructural sector in India would double itself by 2014.
"India and China are the drivers of global economic growth and the markets here would grow by 6,000 per cent and 4,000 per cent respectively in next 50 years, while the US market would grow by 350 per cent in the same period," he said.
Bekker expressed confidence that with the opening of foreign investment in infrastructure sector, logististics cost that currently stand at 13 per cent of country's GDP would come down. Developed countries spend about 9 per cent of their GDP on logistic costs.
There is a need to move to "just in time" from "just in case" in delivery business and things are moving in the right direction with foreign players coming in the sector, Director Genrra CII N Srinivasan said.
TNT is looking at improving service networks and smoothening connectivity from entry point of the country to other destinations within the country, Bekker said.
"We recently bought two 747 boeing to facilitate deliveries from Europe to China and might do a similar thing for India depending on the market," he said.
Bekker feels there lies a great opportunity once the road network in India is fully developed.
He, however, said the company at this point in time is looking at organic growth only. But might weigh other options in the times to come.
"Road network in this part of the world is not as developed as they have in the West. Roads contribute to about 80 per cent of the transport in developed countries... Things in India have improved after the work on Golden Quadrilateral started but there is still a long way to go," he added.
First Published: Mar 14, 2006 17:30 IST