By IANS,
Chennai : Supply chain management and logistics solutions provider DHL Lemuir Logistics Pvt Ltd is investing $10 million in a warehouse facility in the Chennai Free Trade Zone, India’s first free trade warehousing zone (FTWZ).
The 250-acre FTWZ, promoted by J Matadee Free Trade Zone Pvt Ltd, is coming up at Sriperumbudur, around 40 km from here.
DHL Lemuir Logistics Chief Executive Christoph Remund said the major advantage of the FTWZ is that the goods can be stocked for any length of time unlike in a custom-bonded warehouse that allows stocking only for 360 days.
He said Indian and foreign companies can import and store goods at the warehouse without payment of duties upfront. The duties will be paid only when the goods are taken out of the warehouse for production.
“The benefits of such a warehouse are that the inventory is managed by the vendor and the products are available for a manufacturer just in time. The warehouse can also act as a consolidation hub for goods and dispatched to various parties when needed,” Remund added.
DHL Lemuir Logistics operates as a subsidiary of DHL International GmbH and the Lemuir Group.
“India and China are two countries that would grow in the future and we want to be part of that. The proposed facility will improve quality standards while reducing overall logistics and storage costs for companies without their own set up in India,” Amadou Diallo, chief executive, South Asia Pacific for DHL Global Forwarding, told reporters here Thursday.
DHL Lemuir will be targeting auto, garments, life sciences, aviation, oil and gas sectors for business and the warehouse is expected to be ready by November this year.
“We are interested in leasing out fully built facilities. The minimum size will be 10 acres. We plan to have 25 clients in the FTWZ,” Sunil Rallan, managing director of J Matadee Free Trade Zone, told IANS.
The total project cost will be around $250 million.