Tnt Express Makes India Regional Centre

In a move to decentralise its operations, TNT Express, global provider of mail, express and logistics services, has made India its headquarters for the sub-continent.

Under the earlier system, Dubai was the hub of regional operations. India has been made the regional headquarters for Sri Lanka, Bangladesh and Nepal because TNT's revenue from India has increased significantly from 6 per cent of regional revenues in 1997 to 20 per cent in 2001.

According to Magdy El Zein, regional vice-president, TNT, "The company is trying to consolidate its position in this region since India features in the 10th position in terms of service efficiency and performance out of the 64 entities it has worldwide."

 

Since India is the biggest country in terms of TNT Express' revenue within the Middle East, Africa and the Indian sub-continent, it was felt that other countries in the region, where business is growing, can gain from the Indian experience.

The market profiles for jute, garments, tea and leather are also similar within the region. These segments contribute substantially to the business of the company making India as the reporting centre. Future trade between the countries in this region is also set to increase significantly.

On the profitability of its operations, Magdy El Zein said: "At a time when most of our competitors have come out with a profit-warning, we are assured of improving our profits and expect to close the year ahead of our budgeted estimates."

TNT Express is a subsidiary of TNT Post Group NV of the Netherlands and operates in over 200 countries. The euro 9.9 billion company has a network of over 969 hubs and depots, and have a fleet of 17,000 vehicles and 60 aircraft.