FM Logistic, an €1-billion family-owned company, has opened a 20,000-sq-metre warehouse in Pune for a European retailer. In Asia, FM Logistic is present in China, India and Vietnam.

While FM Logistic did not reveal the client’s name, it expects to get more such corporate clients in India. The company is also in the process of acquiring land close to Delhi and Mumbai to build multi-client distribution centres, as a part of its plan to set such facilities near cities.

Following the implementation of Goods and Services Tax (GST) from July 1, the company expects distribution centres to come down by half.

The company said most of its customers, including those in the retail and cosmetics sector, were reviewing their distribution network. “We expect the distribution centres to be down by half or even two-third as bigger distribution centres come up,” he said.

For its entry into the Indian market, the company did a detailed market analysis three years ago and acquired a firm, Spear Logistics, in 2016. It entered India through the acquisition route as India is a “complex market, almost a continent”.

“We wanted to enter India before GST was implemented as that would change the logistics scenario, bringing in more demand for organised players,” Stephane Descarpentries, Director, Strategic Projects and Director, Asia Operations, FM Logistic, told BusinessLine .

On the impact of GST, Descarpentries said: “In July-August, there was a period of transition, but Indians have a capacity to adapt fast.” The company looks at GST as an opportunity as it expects many companies to float their tenders next year in India.

In India, the company has a staff strength of 3,000. Descarpentries expects 15 per cent growth in business and staff every year in India.

FM Logistic is also looking to select a non-government organisation which can select and train people who live far from the working market areas. In India, 80 per cent of the company's business comes from warehousing and logistics, while 20 per cent comes from transportation.

The firm’s strategy varies in different Asian countries. FM Logistic had entered China almost 12 years ago, where it built its operations from the scratch. Now, it has four big warehouses in China and a staff of 500.

The relatively lower staff strength in China is attributed to FM Logistic business, 60 per cent of which comes from transportation and distribution, while 40 per cent from warehousing.

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