FM logistic to invest US$ 150 million in Indian warehousesIndia
- The 5-year investment will be used to increase the company’s own warehousing capacity and tap on the potential offered by India’s indirect tax reform (GST)
- Appointment of Alexandre Amine Soufiani as new country MD, India
- New contracts with Caterpillar, BIC Cello and a large European retailer
Wednesday, 20 March 2019 – French logistics operator FM Logistic on Friday announced plans to invest US$150 million over the next five years in its own warehouses and distribution centres in India, which will bring nearly 500 jobs within twelve months.
As part of the investment, the company will start operating a multi-client facility in Delhi National Capital Region in April 2019 and expand its multi-client warehouse in Mumbai. FM Logistic has also acquired 31 acres of land in Jhajjar, near Gurugram, to build a new warehouse. Once set up, the facility designed by FM Logistic’s sister company NG Concept will provide 70 000 square meter (750,000 square feet) of warehousing space for up to 100,000 pallets. In addition to increasing its warehousing and transport capacity in India, FM Logistic is investing in new WMS (warehouse management system) and TMS (transport management system) to provide its customers with more visibility over their shipments.
The investment is partly motivated by the growth potential in logistics offered by the indirect tax reform (Goods and Services Tax, or GST) implemented by the Indian authorities.
Jean Christophe Machet, CEO, FM Logistic said: “We see a huge potential in the Indian market, following the acquisition of Pune-based Spear Logistics in 2016. The GST reform has already enabled us to streamline and optimise the efficiency of our operations. We expect a strong double-digit growth in India in FY 2019-20.”
A new country managing director
In addition to the investment, FM Logistic announced the appointment of Alexandre Amine Soufiani as new country managing director for India, with effect from 1st of April 2019. He succeeds Gautam Dembla, one of the founding members of Spear Logistics, who has decided to retire. Alexandre Amine started his career in the finance department of FM Logistic. As financial controlling director, he played a key role in the integration of Spear Logistics. In the past 18 months, he worked as a key account director in India, responsible for strategic customers.
FM Logistic also announced the signature of three new contracts. The first contract will see FM Logistic operate transport services for Caterpillar across India. It involves managing more than 1,000 suppliers, using a control tower.
Second, FM Logistic signed a contract with a major European retailer to manage their 80,000 sqm B2B and B2C distribution centre in Pune.
Third, from April 2019, FM Logistic will manage in-plant warehousing operations for the French stationery maker BIC-Cello at Vapi in Gujarat.
Pictures of Alexandre Amine Soufiani and FM Logistic warehouses in India are available for download on FM Logistic’s website at:
About FM Logistic
Founded in France in 1967, FM Logistic is a family-owned independent logistics company with revenues of €1.2 billion in the fiscal year to March 2018, two-thirds of which made outside of France. It is active in 14 countries across Europe, Asia and Latin America (Brazil) and employs about 28,000 people.
In India, FM Logistic manages more than 90 warehouses, totalling 4.5 million square feet of warehousing space spread over 30+ locations.
FM Logistic invests in innovation to offer logistics, transport and co-packing solutions that answer changing consumer demands, the rise of e-commerce and omni-channel distribution. It serves a balanced portfolio of international and local companies in the FMCG, retail, perfume & cosmetics, industrial manufacturing and healthcare industries.
You can follow FM Logistic on Twitter at @FMLogistic
Cyrille Gibot (international)
External communication manager
+33 6 45 99 91 58