FM Logistics, a third-party logistics firm, expects its business in India to account for nearly a quarter of its total topline in the next five years. India is seen as an important growth engine for the company.
In conversation with PTI, Jean-Christophe Mache, Global CEO, FM logicalSaid, “India is a key country for us, an important engine for growth. As a family-owned company, this country is part of our future for the long term. We have a long-term outlook on India. So, let’s look at this country as a country where we can do business.”
The company entered the Indian market in 2016 through the acquisition of Spear Logistics. It provides warehousing and distribution logistics services for FMCG, Retail, Automotive, E-commerce, Engineering, Telecom, Pharma and other sectors. As of now, the company has a workforce of 4,000 with over 90 warehouses and has expanded presence to over 35 cities, managing 7 million square feet of warehousing space.
Last week, the company launched its first proprietary multi-client facility in Farrukhnagar (Haryana).
The Global CEO highlighted that the Indian subsidiary led by FM Logistics was able to register a 50% growth in business in the last fiscal despite the pandemic, while it managed to witness a growth of 40% in this financial year .
Also, FM Logistics India’s warehousing footprint grew by 20% in FY22. Notably, 30% of the company’s total revenue was from multi-client facilities. Additionally, 60% of the new contracts signed during the last fiscal were for omnichannel operations.
“I think, perhaps, 20% or a quarter of FM Logistics’ total revenue will come from India operations over the next five years,” said Machet.
Furthermore, Machete said that a third of this investment has already been spent, of which €30 million is going to the first phase of the Farrukhnagar facility alone.
“This (150 million euro) investment is enough to implement our business plan for the next 3-5 years. The majority of this investment will go into setting up the MCF,” he added.
In 2019, the company announced to pump in 150 million euros (approx. 1,200 crore) for five years for setting up of warehouses in India.
Alexandre-Amin Soufiani, Managing Director, FM Logistics India, said that all segments are strategically important for the company, adding that sectors such as FMCG, e-commerce, automotive and retail are expected to drive growth over the next 2-3 years. hopefully.
The MD further said that the company is looking to almost double its footprint from 7 million sq ft to 12 million sq ft now and install six more MCFs to take the total number to 11 by 2026.
He added, “Now more and more of our customers are looking at optimizing last-mile delivery as well. And again, we are not just entering last-mile-delivery and doing what others are doing . We are considering a. Quality Service in Last Mile Delivery.”
In its Strategy “Powering 2030” report, announced last year, it was announced that the group plans to double global revenues from €1.4 billion in 2030 to nearly €3 billion. They focus on omnichannel, urban logistics, sustainability, transportation and customer experience. In addition, the company targets carbon neutrality for its warehousing operations by 2030.