TNT India aims to outpace GDP growth

Hardly any of the international express integrators can claim that 2009 was good and 2010 would be better. The Indian arm of TNT, however, has gone one better, declaring 2009 a good year with expectations of growth at two to three times the country’s GDP growth. Manfred Singh has the story.

Strategy aside, TNT’s India growth came from the hi-tech and healthcare sectors. In the hi-tech sector, TNT has been working with a number of Fortune 500 companies with its “after-market business” through the establishment of key regional distribution centres that reduce delivery time and costs significantly. These distribution centres are in India and Southeast Asia feeding TNT’s air network. The air network, in turn, is seamlessly connected to the TNT-managed Asia Road Network across six countries, from Singapore to the south of China, in 125 cities.

As for 2010, Mitra is bullish about India and says the growing air and road network connectivity will help the company expand its reach. To add to that, the country is planning to introduce a national sales tax – presently each state imposes its own taxes on freight moving through its boundaries – which will mean lower taxes and higher freight demand, he says.

“We already have a very strong business (in India) and the acquisition of Speedage – a domestic road transportation company – in September 2006 and later its transformation, expansion and integration, provided TNT with “a strong base”, said Mitra. Soon after the Speedage deal, TNT CEO Peter Bakker had pointed out that TNT will be among the top three express companies in India with the acquisition with combined annual revenues reaching €100 million in 2007.