TNT India, a fully owned subsidiary of TNT NV is the first and only multinational express company to set up operations on its own in the country. Specialised in providing international door-to-door express delivery solutions, the firm forayed into the domestic express segment in February 2006. As part of its growth strategy, it acquired Speedage Express Cargo Services in September 2006, a leading road express company in India. In an exclusive interview with FE?s Sajan C Kumar, TNT India managing director Abhik Mitra speaks his mind on the Indian growth story and the way forward. Excerpts:

TNT is betting big on Indian logistics market. What are your plans for the country?

TNT clocked an overall growth rate of 7.9% with the international freight business growing by 50% in volume. It is accelerating growth in India and will add over 1lakh sq-ft to the existing facilities in eastern India. The firm has setup facilities in Patna, Jamshedpur, Bhuvaneshwar and Ranchi recently. Facilities in Kolkata, Howrah, Behragowda, Siliguri, Guwahati and Cuttack will be strengthened further. Moreover, the company is setting up a hub centre in Chennai with clearing capabilities. Overseas consignments can now be cleared at the Chennai centre without being diverted to Delhi, thereby saving time and costs. Similar centres would be set up in Ahmedabad , Hyderabad and Bangalore.

What is your core focus area in the growth plan?

TNT will mainly ramp up its service logistics solutions the country. It will expand its suite of service logistics solutions throughout this year aimed at the hi-tech sector, specifically the consumer electronics, computing and telecommunications industry. TNT also had named service logistics specialist Oliver Lemanski to spearhead its aggressive expansion strategy in the service logistics market. While the service logistics market in the region is growing rapidly, it is fragmented with multiple local logistics and repair providers acting independently. With our new suite of service logistics products we are aiming to provide customers a holistic solution that can seamlessly integrate with their existing repair partners and systems.

What about the investment on air and road networks?

TNT has been investing heavily in its air and road networks, systems and knowledge, which have translated into greater capabilities in the service logistics area. In 2009 alone, millions of dollars were invested in enhancing facilities and infrastructures across the region, extending Asia road network and boosting air services. The strengthening of air and road woks has had tremendous impact on our bottomline. In 2009, TNT grew its international freight business by 50% overall and 60% in the India-Europe lane, whereas the market for international freight business segment grew just over 5% in the same period.

How is the response for the new online import system?

TNT?s new express import system gives customers a complete control over their import shipments. This web-based tool lets companies order the collection of import shipments from around 170 countries with quotations and billing in their local currency to better control shipping costs. TNT?s system enhances its current express import services and is available to all customers regardless the type or size of their business, and whether they are sourcing finished goods or spare parts from multiple suppliers around the world. One unique feature of TNT?s Express Import system is the option to request a quotation before the booking is completed. This means customers can effectively decide when their import shipment will arrive and at what cost.

What are your expectations of growth for the current year ?

We are expecting a 20% growth in our business on year-on-year basis. In 2009, TNT saw impressive growth in India, especially in the hi-tech sector and healthcare sector. Also, there is high demand for forward stock supply chain or after market supply chain in the telecom and automotive sectors. Our company has been working with several Fortune 500 companies in the management of its after-market business through the establishment of key regional distribution centres that reduce delivery time and costs significantly. Such distribution centres spread beyond India into Southeast Asia tapping on to TNT?s air network which is seamlessly connected to its unique Asia road network. TNT will be enhancing inernational connectivity of its India network to its China and European network as well.