India’s growth moves inland

As India seeks to bounce back to the annual growth rates of close to 8% that the country enjoyed until recently, expectations are increasingly linked to the vast hinterland. Maersk is repositioning itself to seize the opportunities that emerge in the wake of these changes.

Chennai
Chennai, India. Photo: Thorbjørn Hansen
Retaining the spark

The Maersk Group in India
With a comprehensive presence on the Indian subcontinent, the Maersk Group offers its customers global coverage with local touch and local knowledge.

  • 25 Maersk Line Offices
  • 46 Maersk Line inland Acceptance points
  • 12 Maersk Line container Freight stations
  • 3 APM Terminals Port or terminals
  • 6 APM Terminals inland service Container repair facility
  • 6 APM Terminals inland service Freight stations
  • 16 Damco Offices

Looking for new growth in India? It may be time to look beyond the megacities to lesser-known cities such as Nashik, Nagpur and Chandigarh in the hinterland, predicted to be major contributors to India’s next growth phase.

As growth moves inland, logistics facilities follow, and locations to pick up and drop off containers and manage paperwork are increasing in numbers. The market for this type of infrastructure, including roads and rail, is expected to triple to USD 15 billion by 2025.

The Maersk Group is building positions here to support this trend.

“A few years ago we decided to place sales representatives in cities with one or five million inhabitants. That would give us a better chance of controlling the business and tapping into the growth,” says Sanjay Tiwari, Head of Sales at Maersk Line India.

With people in the hinterland meeting with customers, experts in a number of industries at the main office in Mumbai, reefer expertise and good sea products, Maersk Line had a real value proposition for the customers.

“By making the hinterland a stronghold, we are well positioned for future growth and can contribute to the economy of the country,” Tiwari says.

In 2014, Maersk Line’s market share in most hinterland locations stood at 25-30%, up from 10-11% in 2011. With annual volumes of 800,000 containers (FFE), Maersk Line is the leading carrier in the Indian market.