French logistics operator FM Logistic has announced plans to invest $150 million over the next five years in its own warehouses and distribution centres in India, which will bring nearly 500 jobs within twelve months.
As part of the investment, the company will start operating a multi-client facility in the National Capital Region in April 2019 and expand its multi-client warehouse in Mumbai. FM Logistic has also acquired 31 acres of land in Jhajjar, near Gurugram, to build a new warehouse. Once set up, the facility, designed by FM Logistic’s sister company NG Concept, will provide 70 000 square mm (750,000 square feet) of warehousing space for up to 100,000 pallets. In addition to increasing its warehousing and transport capacity in India, FM Logistic is investing in new WMS (warehouse management system) and TMS (transport management system) to provide its customers with more visibility over their shipments.
The investment is partly motivated by the growth potential in logistics offered by the indirect tax reform (Goods and Services Tax, or GST) implemented by India, said a release.
Mr Jean Christophe Machet, CEO, FM Logistic, said: “We see a huge potential in the Indian market, following the acquisition of Pune-based Spear Logistics in 2016. The GST reform has already enabled us to streamline and optimise the efficiency of our operations. We expect a strong double-digit growth in India in FY 2019-20.”
In addition to the investment, FM Logistic announced the appointment of Mr Alexandre Amine Soufiani as new Country Managing Director for India, with effect from April 1, 2019. He succeeds Mr Gautam Dembla, one of the founding members of Spear Logistics, who has decided to retire. Mr Soufiani started his career in the finance department of FM Logistic. As Financial Controlling Director, he played a key role in the integration of Spear Logistics. In the past 18 months, he worked as a key account director in India, responsible for strategic customers.
FM Logistic also announced the signing of three new contracts. The first contract will see it operate transport services for Caterpillar across India. This involves managing more than 1,000 suppliers, using a control tower.