DHL group to invest €1 billion across India units over five years

DHL Group plans to deploy EUR 1 billion in India over CY26-30, expanding warehouses, logistics hubs, automation, & green infrastructure as the country's fast-growing market boosts long-term confidence

Global logistics giant DHL Group will invest 1 billion euros across its business units in India between 2026 and 2030, citing the country’s favourable policies, rapid economic growth, and rising competitiveness.

 

Tobias Meyer, chief executive officer of DHL Group, said a sizeable portion of the investment will go towards expanding the group’s warehousing footprint in India. “This is all part of our global strategy. We have refined this strategy over many years. We have four ‘bottom lines’, as we call them: we aim to be the employer of choice, the provider of choice, the investment of choice, and the green logistics provider of choice,” he said.

 

DHL currently operates about 22.7 million square feet (msf) of facilities across India through DHL Express, DHL Global Forwarding, DHL Supply Chain, and Blue Dart, adding 2 msf of warehousing space annually. The multi-year investment programme will focus on key sectors, including life sciences and healthcare, new energy, e-commerce, and digitalisation.

 

As part of this plan, DHL will develop a DHL Health Logistics hub for DHL Supply Chain in Bhiwandi, India’s largest low-emission integrated operating facility for Blue Dart in Bijwasan, an automatic sorting centre for DHL Express in Delhi, a DHL IT Services Centre in Indore, electric vehicle and battery logistics centres of excellence in Chennai and Mumbai, and a low-emission integrated ground hub for Blue Dart in Haryana.

 

“Global trade is facing 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. With our investment programme of around 1 billion euros, we are expanding reliable and more sustainable logistics solutions for our customers in India,” Meyer said.

 

Under its ‘Strategy 2030’, DHL aims to scale up its India operations with a focus on the five key sectors, where early results are already showing. “India's trade diversification strategy is beginning to pay off, as we see increased trade with a wider range of markets. With our presence in 220 countries and territories, DHL Group is well-positioned to support this momentum,” said R S Subramanian, senior vice-president — South Asia and managing director (MD), India, DHL Express.

 

DHL Group reported 84.2 billion euros in revenue in 2024, a third of which came from e-commerce. The group plans to invest in upgrading its infrastructure, expanding last-mile delivery, and enhancing capacity nationwide.

 

“A key focus will be on automation and advanced technologies that improve operational efficiency and support rapidly growing e-commerce volumes,” said Balfour Manuel, MD of Blue Dart.

 

Having operated in India for over 43 years, Meyer said DHL is committed to a long-term presence in the country. “The country has very strong economic indicators, starting with convincing demographics, which is a challenge in many other geographies,” he added.

 

DHL is reallocating funds within the group, with the next wave of investments targeting 20 growth markets and the five focus sectors. 

‘Freight rates to stabilise next year at higher levels’

 

Edwin Pinto, managing director, DHL Global Forwarding (India), expects freight rates to stabilise next year at slightly higher levels. “At the moment, the rates are stable at a lower level, which is healthy for the industry as well. We don't expect a massive upswing in rates in the next couple of quarters. Next year, we will see stability in freight rates, albeit at a slightly higher level than where we are right now,” he said.

 

Pinto added that amid tariff-related uncertainties, India has an opportunity to diversify its trade. “We are seeing a downturn in certain sectors in the volumes towards North America at the moment. We are seeing a shift in volumes towards Europe, which is a good thing. Our exporters are finding new markets,” he added.