Damco, the logistics unit of the AP Moller-Maersk Group, is said to be scouting for acquisitions in India to expand its freight forwarding footprint on the back of India’s economy growth.
“This year, we will be making investments in the warehousing space and also expand our freight forwarding business inorganically,” said Lars Sorensen, South Asia CEO of Damco, according to an Indian Express report. “We will look at a player with an Indian base and with a significant presence in air and ocean freight,” he added, declining to share specifics. “As a group, last year our net profit was about US$5 billion, so the size of acquisition is not a worry for us,” he said in the report.
The company has a wholly-owned subsidiary in the country – Damco India – which currently operates in supply chain management, freight forwarding, ocean freight forwarding, warehousing and trucking space. Currently, retail, heavy engineering, FMCG and automobile are the segments that contribute heavily to Damco India’s revenues. India contributes 10 per cent to Damco’s total global air freight volumes and five per cent to its total ocean and supply chain management volumes.