India will represent 20% of our global turnover in 5 years: FM Logistic
French third-party logistics firm FM Logistic said India was an important growth driver for the company and it expects its operations here to account for 20-25% of overall revenue over the course of the year. of the next five years.
The company also said that FM Logistic India has tripled its revenue and land space since entering the domestic market after acquiring Pune-based logistics company Spear Logistics.
FM Logistic India, which opened its first multi-client facility in Farrukhnagar (Haryana) last week, operates in 90 locations and manages over 7 million square feet of warehouse space. It provides warehousing and distribution logistics services for the FMCG, retail, automotive, e-commerce, engineering, telecommunications, pharmaceutical and other industries.
It has four multi-client facilities (MCF) – one in Bengaluru and Gurugram and two in Mumbai.
“India is a major country for us, an important engine of growth. As a family business, this country is part of our long-term future. We have a long term vision for India. this country as a country where we can do business,” Jean-Christophe Machet, Global CEO of FM Logistic, told PTI during an interaction.
Stating that the Indian subsidiary was able to show 50% revenue growth in the previous fiscal year despite the pandemic, he said the company expects 40% growth for this fiscal year.
According to a company presentation, in addition to revenue growth of 50%, FM Logistic India increased its warehousing footprint by 20% in FY22, while 30% of its ‘total business came from multi-client installations.
Additionally, 60% of new contracts signed by FM Logistic India in the past fiscal year were for omnichannel operations.
“I think 20% or a quarter of FM Logistic’s total revenue will probably come from India operations over the next five years,” Machet said without giving specific numbers.
In September last year, FM Logistic had, when presenting its new “Powering 2030” strategy – designed to address the profound changes in the retail industry and supply chain management as that consumers spend more online – said it aimed to double its revenue to €3 billion in 2030 by focusing on the omnichannel supply chain.
The French firm announced in 2019 an investment of 150 million euros (around Rs 1,200 crore) over five years for the establishment of warehouses in India.
Machet said a third of that investment has already been consumed with €30 million earmarked for the first phase of the Farrukhnagar facility alone.
“This investment (150 million euros) is sufficient to implement our business plan for the next 3 to 5 years. The majority of this investment will go to the establishment of MCF”, he said .
Situated on a 31-acre site, the state-of-the-art Farrukhnagar facility will offer 7.6 lakh square feet of warehousing space, offering warehousing and handling, co-packing, distribution, e-commerce and omnichannel to meet dynamic customer demands, the company said at the launch.
FM Logistic India is currently among the top three logistics service providers in the domestic market, focusing on Class A multi-client facilities, dedicated warehouses close to its clients’ manufacturing centers and modern logistics centers.
Noting that all segments are of strategic importance to the company, FM Logistic India Managing Director Alexandre-Amine Soufiani said sectors such as FMCG, e-commerce, automotive and retail, among others, are expected to drive growth over the next 2-3 years. years.
He said the company was looking to nearly double its footprint to 12 million square feet from over 7 million square feet now and roll out six more MCFs to bring the total number to 11 by 2026.
“Now more and more of our customers are also looking to optimize last mile deliveries. And again, we’re not just getting into last mile delivery and doing what others are doing. We’re looking for some kind of quality of service in last mile delivery,” he said.
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