DHL to Invest INR 800 crore to Test E-Commerce Business Model in India

Deutsche Post DHL (DPDHL) plans to invest around INR 800 crore in Indian e-commerce business including express (small parcel transportation), aviation, e-commerce and warehousing, in the next two years, reports Live Mint.

India will leapfrog from mom and pop shops to straight away to e-commerce. India had moved from almost no phone to most modern mobile phone. We will see the same for consumers buying online. India is better prepared compared to China, DHL CEO, Frank Appel said in an interview.

The investment money expected to be more if Indian economy grows faster. The company plans to set 15 fulfillment centre across locations, including Delhi, Bangalore and Mumbai as well as in tier II, III and IV cities. The other ecommerce portals such as Flipkart, Amazon, Jabong, Myntra, snapdeal among and others also showing interest to putting up fulfillment centres for them.

DPDHL’s part, Blue Dart Express is creating models for Asia Pacific (APAC) region and plans to pilot the e-commerce logistics solutions in India by developing multiple delivery options including cash on delivery capabilities in the country.

As per DNA report, “Catering specifically to the e-commerce industry and the SMEs, our eFulfillment centres will launched towards the end of this year (November-December 2014) starting with a 140,000 sq ft facility in Delhi (Gurgaon) followed by 100,000 sq ft facility in Bangalore and another one in Mumbai. Between 13 to 15 smaller facilities will be also be launched across tier II, III and IV markets,” said Anil Khanna, managing director, Blue Dart Express Ltd.”