Business

TNT to invest 100 m Euros in logistics infrastructure

Will improve service networks and smoothening connectivity

NEW DELHI: Logistics network company TNT will 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 the infrastructure sector will swell two-fold 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 the next five years,'' TNT CEO Peter Bakker said, addressing a CII organised conference `Global Focus on developing Logistics Networks in Asia' here on Tuesday.

The company is looking at strengthening its network within the country and increasing the headcount from the current 1,000 to 2,000 by this year-end.

Mr. Bekker expressed confidence that with the flow of foreign investment into the infrastructure sector, the logistics cost that now stood at 13 per cent of the country's GDP would come down.

Developed countries spent about 9 per cent of their GDP on logistics costs.

There was 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 into the sector, Director General of the CII, N. Srinivasan, said.

"I believe things would improve as more players come into the market. Consumers will have more options then. One per cent reduction in logistics cost would help the country save $6 billion a year,'' Mr. Srinivasan said.

TNT is looking at improving service networks and smoothening connectivity from the entry point of the country to other destinations, Mr. Bekker said.

"We recently bought two 747 Boeing to facilitate deliveries from Europe to China and may do a similar thing for India depending on the market,'' he said. — PTI

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