DHL plans for growth

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DHL is emerging from its integration process ready to push ahead with rapid organic growth following a deal to consolidate operations in India.
Deutsche Post and Lemuir Group have agreed plans to consolidate their joint venture in India under the name DHL Lemuir Logistics. Deutsche Post will hold 76 per cent in the joint venture with 24 per cent being held by Lemuir.
The consolidated joint venture will combine the businesses of DHL Danzas Lemuir and Exel India, which recently acquired the contract logistics and customs house brokerage operations for general cargo from Lee & Muirhead.
Speaking in London, John Allan, global chief executive of  DHL Logistics said consolidation of operations in India was signalled the fact that the integration process following the take-over of Exel by Deutsche Post in 2005 was drawing to a close.
There is still work to be done in China but everywhere else the integration of the businesses in more or less complete.
DHL reckons the creation of DHL Lemuir will position it as the leader in international freight forwarding, supply chain management and customs brokerage in India. It estimates that the Indian logistics market is worth some US$ 45 billion today. By 2015, it is expected to reach almost US$ 122 billion – growing at a compounded rate of over 11 per cent, which is higher than the growth rate of the Indian economy.
The consolidated logistics business will trade under the DHL brand as DHL Global Forwarding for the freight forwarding business and DHL Exel Supply Chain for contract logistics. It will lead to significant benefits for customers, including greater geographic spread, product and service leadership and enhanced offerings to meet all their logistics and supply chain requirements.
John Allan said: “Upon the completion of the consolidation and integration in India, the DHL Logistics business will be bigger, better and stronger. The combined expertise of three leading players in the industry and the strength of over 2000 employees and 150 facilities will position us as a clear leader in contract logistics, air and ocean freight forwarding and customs brokerage in India. India is of strategic importance to DHL in Asia Pacific. This consolidation will create a strong platform to enable us leverage the opportunities in the logistics sector in India.”
Deutsche Post’s logistics division boosted sales by 6.1 per cent to 6.22bn  euros in the first quarter driven by a strong performance from the DHL Exel business which saw sales rise 12 per cent to 3.19bn euros. Earnings before interest and tax were up 36 per cent to 214m euros. The express division showed an EBIT of 62m euros compared with a loss of 58m euros last year.
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