DHL presents $1.2 billion investment plan in India

DHL Group will invest approximately €1 billion ($1.2 billion) in its business units in India by 2030, marking another major investment by the logistics giant in one of its emerging markets.

The company will invest in infrastructure developments in sectors such as e-commerce, digitalization, new energy, life sciences and healthcare.

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Some of the improvements will take place at DHL’s first automated sortation center in New Delhi, as well as at the facilities of its Indian air and ground delivery subsidiary, Blue Dart.

DHL’s move comes as the world’s most populous country is expected to gain more traction as a global trade hub.

“Global trade faces headwinds, but we remain confident in India’s dynamic market. The country’s diversification strategy and business-friendly policies provide a solid foundation for long-term investments,” DHL Group CEO Tobias Meyer said in a statement. “With our investment program of around one billion euros, we are expanding reliable and more sustainable logistics solutions for our customers in India.”

According to DHL’s recently released Global Connected Tracker, India is forecast to achieve the third-highest absolute trade growth (including both imports and exports) over the next five years, at 6 per cent of the world’s total. This would be behind only China (12 percent) and the United States (10 percent).

Over that span, India is expected to see its annual trade volume grow by 7 percent, DHL says.

Located at the Indira Gandhi International Airport, the 34,000-square-foot automated sorting facility opened in March 2024 and is designed to significantly speed up the processing of inbound shipments to improve transit times.

The sorting facility has a processing capacity of 2,000 pieces per hour for packages up to 50 kilograms, with 18 sorting hoppers, 11 truck docks and 18 bag and box sorting conveyors.

DHL claims the installation is 99.8 percent accurate due to the implementation of an advanced IT system for efficient data movement.

Although the logistics giant has not confirmed whether it is part of the same investment, Blue Dart revealed in a LinkedIn post in October that DHL injected the company with €250 million ($291.9 million) in new financing.

As part of Wednesday’s announcement, DHL said infrastructure upgrades for Blue Dart would be made at two low-emission warehouses: an integrated operational facility in Bijwasan and an onshore hub in Haryana.

The funds will also go to DHL’s “Center of Excellence” centers in Chennai and Mumbai, which provide expertise and resources for electric vehicle management and battery logistics.

DHL Group currently employs over 1,300 logistics and digital experts across India, and the company launched its fifth IT service center in the country in September. That facility, located in Indore, is the company’s first dedicated technology training academy in India. The academy is designed to equip new employees with skills in automation and AI-based logistics.

In recent years, DHL has been pouring money into various markets as it further expands its presence around the world.

Last month, the company committed more than €300 million ($349.1 million) in sub-Saharan Africa, following another commitment of more than €500 million ($581.8 million) in the Middle East. That investment covers Saudi Arabia and the United Arab Emirates (UAE).

Entries into both regions occur as markets move toward international trade.

Two years ago, the company opened a considerable €500 million ($639.8 million) investment in several Latin American countries in an effort to expand its fulfillment network, while decarbonizing warehousing and transportation. This investment is expected to extend until 2028, and that the funds will be allocated to countries such as Mexico, Brazil, Colombia, Peru and Argentina.

And it’s not just emerging markets where DHL Group continues to make big bets.

Months after the announcement was made in Latin America, DHL announced that it had invested $410 million to expand one of its main air and storage hubs in Hong Kong.

Earlier this year, the logistics company said it would invest £550 million ($724 million) to bolster its warehouse robotics fleet in the UK and Ireland. When that investment was announced in July, the company had already deployed more than 2,000 robots in its UK warehouses.

Recently, DHL has been able to maneuver through the changing global trade environment while keeping its overall costs low. Even though air volumes entering the United States fell 32 percent in the third quarter, revenue only fell 2.3 percent to $23.3 billion. Group revenue rose 11.9 percent to $973.6 million.