The company entered the Indian market through the acquisition of Spear Logistics in 2016. It provides Warehousing & Distribution Logistics services for the FMCG, Retail, Automotive, E-commerce, Engineering, Telecom, Pharma & other sectors.
Third-party logistic firm, FM Logistic expects its business in India to account for nearly a quarter of its overall topline in the next five years. India is seen as a significant growth engine for the company.
n an interaction with PTI, Jean-Christophe Machet, Global CEO, FM Logistic, told “India is a major country for us, a significant engine for growth. As a family-owned company, this country is a part of our future for the long term. We have a long-term view on 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 & Distribution Logistics services for the FMCG, Retail, Automotive, E-commerce, Engineering, Telecom, Pharma & other sectors. So far, the company has a headcount of 4,000 employees with more than 90 warehouses and a presence expanded in over 35 cities while managing 7 million sq ft of warehousing space.
Last week, the company launched its first owned multi-client facility in Farrukhnagar (Haryana).
The Global CEO highlighted that FM Logistics-led Indian subsidiary managed to record 50% growth in turnover in the previous fiscal despite the blues of the pandemic while it managed to witness 40% growth this fiscal.
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 previous fiscal were for omnichannel operations.
Machet said, ‘I think, probably, 20% or a quarter of FM Logistic’s total revenue will come from India operations in the next five years.”
Further, Machet stated that as much as one-third of this investment has already been consumed with 30 million euros going into the first phase of the Farrukhnagar facility alone.
He added, “This (150 million euro) investment is sufficient to implement our business plan for the next 3-5 years. The majority of this investment will go into setting up of MCFs.”
In 2019, the company had declared to pump in 150 million euros (about ₹1,200 crore) for five years for setting up warehouses in India.
Highlighting that all segments are strategically vital for 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 in the next 2-3 years.
The MD further said that the company is looking to almost double its footprint to 12-million sq ft from over 7-million sq ft now and set up six more MCFs to take the total number to 11 by 2026.
He said, “Now more and more of our customers are looking at optimising the last-mile deliveries as well. And again, we are not just entering the last mile-delivery and doing what the others are doing. We’re looking at a quality kind of service in the last-mile delivery.”
In its strategy “Powering 2030″ report announced last year, announced that the Group plans to double global revenues to about €3 billion in 2030 from €1.4 billion. They focus on omnichannel, urban logistics, sustainability, transport, and customer experience. Also, the company targets carbon neutrality for its warehousing operations by 2030.
Source : livemint