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“Chennai is a cheaper option than other free trade zones in Asia Pacific“ |
Amit Dawar Director for Customs & Integrated Logistics DHL India |
INDIA. DHL India is targeting the travel retail sector with its customised free trade zone in the free trade zone of Sriperumbudur, an industrial centre 40 km from Chennai.
The 24,000sq m facility – opened in March 2011 – includes an 11,600sq m covered warehouse with 650sq m of cold storage and a 1,300sq m value-added area that offers services such as packing, repacking, consolidation, deconsolidation and labelling.
Operating in a similar way to free trade zones globally, the DHL India site can hold goods on behalf of foreign and Indian buyers and suppliers.
With the added benefit of a duty free zone providing exemption from customs, excise duties and service taxes, DHL is seeking to partner with travel retailers in India and the region.
Amit Dawar, DHL India’s Director for Customs & Integrated Logistics, commented that the free trade zone enables duty free and travel retail businesses to hold stocks close to their customers.
“DHL acts as a custodian until the goods need to be moved into duty free shops inside India or in neighbouring countries, at which point the retailer or supplier becomes the final importer,” he said.
“Individual shipments can be consolidated here, and with our just-in-time model we can have stock at point of sale within two to three days.”
The facility has its own customs office with ability to process at any time of day.
DHL is already working with Indian inflight companies for liquor and tobacco supplies, and has handling services for confectionery, cigars and other sensitive merchandise.
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DHL’s 11,600sq m covered warehouse is at the heart of its integrated logistics and storage solution for duty free businesses |
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The 650sq m temperature-controlled area ensures quality storage for confectionery and other heat-sensitive products |
Dawar attended the TFWA Asia Pacific exhibition this month to extend the company’s reach in the travel retail sector.
“Many people at the Singapore show didn’t know this concept was available in India, so it was valuable to outline what we can offer – we have strong interest from a number of parties.
“Chennai is a cheaper option than other free trade zones in Asia Pacific and can easily supply not only markets like Sri Lanka, the Maldives and Pakistan but also as far afield as Singapore or Hong Kong,” Dawar said.
Additionally, DHL offers access to a network of companies for commercial distribution, among them express package tributor Blue Dart, which provides JIT delivery throughout their road and air fleets.
“We look forward to working more with the duty free and travel retail industry to be closer to their clients, help with consolidation and re-export, take care of local compliance and provide the value-added services they need,” concluded Dawar.
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DHL’s team at work in the valued-added area |
