This logistics company sees India as a major growth engine, 20% of global turnover expected in 5 years

A third-party logistics company, FM Logistic expects its India business to account for almost a quarter of its overall revenue over the next five years. India is seen as an important growth engine for the company.

In an interaction with PTI, Jean-Christophe Machet, Global CEO of FM Logistic, said: “India is a major country for us, an important engine of growth. As a family business, this country is part of our future for the We have a long term vision for India. So we see this country as a country where we can do business, “in an interaction”.

The company entered the Indian market through the acquisition of Spear Logistics in 2016. It provides warehousing and distribution logistics services for FMCG, Retail, Automotive, E-commerce, Engineering, Telecom, Pharma and others. To date, the company has 4,000 employees with over 90 warehouses and an extensive presence in over 35 cities while managing 7 million square feet of warehouse space.

Last week, the company launched its first multi-client owned facility in Farrukhnagar (Haryana).

The Global CEO pointed out that the Indian subsidiary led by FM Logistics managed to register a 50% growth in revenue in the previous financial year despite the pandemic blues, while it managed to record 40% growth during this fiscal year.

Additionally, FM Logistics India’s warehousing footprint grew by 20% in FY22. Notably, 30% of the company’s total revenue came from multi-client installations. Additionally, 60% of new contracts signed in the past fiscal year were for omnichannel operations.

Machet said, “I think probably 20% or a quarter of FM Logistic’s total revenue will come from India operations over the next five years.”

Furthermore, Machet said no less than a third of this investment has already been consumed with 30 million euros spent on the first phase of the Farrukhnagar facility alone.

He added: “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 towards setting up MCF.

In 2019, the company said it was injecting 150 million euros (about 1,200 crore) for five years for setting up warehouses in India.

Underlining that all segments are strategically vital to the business, FM Logistic India Managing Director Alexandre-Amine Soufiani said sectors such as FMCG, e-commerce, automotive and retail retail, among others, are expected to drive growth over the next 2-3 years.

The CEO further said the company is 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.

He said: “Now more and more of our customers are also looking to optimize last mile deliveries. And again, we don’t just get into last mile delivery and do what others do. type of quality service in last mile delivery.”

In its “Powering 2030” strategy, the report announced last year, announced that the Group plans to double its global revenues to around 3 billion euros in 2030 from 1.4 billion euros. They focus on omnichannel, city logistics, sustainability, transport and customer experience. , the company is aiming for carbon neutrality for its warehousing operations by 2030.

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