DHL bets on India’s growth, favours organic expansion over acquisitions | Company News

The German logistics major, which has committed around €1 billion towards India by 2030, is also willing to take relatively higher investment risks in priority growth markets, including India.

Speaking to Business Standard, Oscar de Bok, chief executive officer of DHL Global Forwarding, said India was growing faster than several other markets, with some businesses performing ahead of expectations.

“India for us is a clear growth engine,” he said.

According to the DHL Trade Atlas 2025, India is projected to account for 6 per cent of incremental global trade between 2024 and 2029, behind China at 12 per cent and the US at 10 per cent.

Under its Geographic Tailwinds (GT20) programme, DHL is prioritising investments in high-growth markets. “We specifically are willing to take slightly higher risk in those investments because we see that there’s going to be a good return,” de Bok said.

The €1 billion commitment will be spread across DHL’s businesses, covering logistics facilities, air capacity, physical infrastructure and artificial intelligence. De Bok did not disclose the allocation for Global Forwarding.

Globally, DHL’s forwarding division reported a 6.3 per cent year-on-year rise in revenue to €9.98 billion in the first half of 2026, while operating profit increased 1.4 per cent to €404 million. The operating margin narrowed to 4 per cent from 4.2 per cent.

On acquisitions in India’s fragmented logistics market, de Bok said the focus remained on organic growth. “We don’t buy size, we buy specific local expertise or geographical coverage where we don’t have,” he said.

DHL is also expanding specialised logistics infrastructure for pharmaceuticals, electric vehicles and semiconductors.

Its India plans include a healthcare logistics hub in Bhiwandi and EV battery logistics centres in Chennai and Mumbai.

De Bok said DHL had invested in a temperature-controlled air-freight corridor connecting Bengaluru with destinations including Brussels, Cincinnati, Japan and Singapore, with the entire logistics chain under DHL’s control.

“We’re looking also what we do with Mumbai furthermore, because we see a lot of potential there,” he said.

In automotive logistics, DHL is witnessing growing demand for EV batteries, components and finished vehicles. De Bok said China remained an important component supplier, while India was exporting automotive parts to markets such as the US. Growing semiconductor content in vehicles was also creating specialised logistics opportunities.

However, geopolitical disruptions remain a concern. De Bok cited the recent Middle East conflict, which forced Indian exporters to seek alternative cargo routes at additional cost.

He said DHL’s purchasing scale and global network helped customers navigate disruptions.

De Bok described DHL’s Indian operations as a “very healthy business” but declined to disclose their contribution to group revenue or profitability.