India domestic biz, e-commerce driving growth, says FedEx

The global economic slowdown has resulted in lower exports from India, and consequently, slower growth for logistics companies, compelling them to look inwards at India’s domestic business, especially SMEs, to drive growth apart from the fast-growing e-commerce segment.

The Managing Director-Marketing for Middle East, Indian subcontinent and Africa at FedEx Express, Rakesh Shalia, said, “Slowdown has impacted us on the international side. While business from exports has been growing at about 8 to 10 per cent compared to 15 per cent earlier, the domestic business for logistics industry is higher at about 15 to 20 per cent. We are seeing a strong growth here.”

He was speaking after announcing a tie-up with Bangalore-based printing and publishing company Printo through “Ship Site” programme. The arrangement will cater to the needs of small and medium enterprises (SMEs) by giving them access to FedEx Express’ services at Printo’s 12 locations in Bangalore.  

FedEx Express is a subsidiary of $43 billion express transportation company FedEx Corp.
Shaila ruled out any acquisition in India in the near future; FedEx Corp had acquired AFL Private Limited and its affiliate Unifreight India Pvt Ltd in February 2011. He also said that its current fleet of about 1,000 motorized vehicles is sufficient to take care of its road freight business.

A recent KPMG report has estimated roads to be significant part of Indian logistics, accounting for 60 per cent of the total freight movement in India, while rail freight movement is estimated to be 31 per cent.