DHL: High taxes barrier to invest in India
Finance Secretary RS Gujral said that there was no question of the government negotiating with any company on the tax amendments proposed in the Finance Bill for 2012-13.
DHL, the biggest logistics company, does not find India an efficient investment because of high taxes. William F Meahl, Global Chief Commercial Officer of Deutsche Post DHL, told NDTV in an exclusive interview that DHL wants to be a significant player when the taxes and barriers in India are brought down.
"We want India to play a major role in the growth of DHL. That's why we have invested ahead of the curve,” Meahl said. “However, for DHL to be successful, a lot more investment needs to be done in modern infrastructure," he added.
Mr Meahl spoke at the sidelines of the International Transport Forum's 2012 Summit held at Leipzig, Germany. At the summit the Chief Commercial Officer of DHL spoke about seamless logistics and his views on better connectivity among transport modes to transport ministers and representatives from various countries.
A number of clients for DHL include Fortune 500 companies. "The priority" Mr Meahl said "for DHL is to service these customers who are interested on how we can help accelerate their expansion in India. Investments should be made in critical logistics centres which have the physical location for distribution like those near ports and airports."
DHL currently is present in India in four of its verticals – DHL Expresss (high-end logistics solutions and air express handling), Blue Dart (transportation, distribution and logistics), Global Forwarding (air and ocean freight), Supply Chain (customised logistics solutions).
Supply chain management is a big challenge in India. Industries across sectors have been finding it difficult to grow due to poor infrastructure and a dearth of connectivity between various urban centres. From agriculture to manufacturing, an infrastructure that paves the way for seamless flow of logistics is of utmost importance. While there has been growth across various industries and sectors in India, it has not reached a critical mass because the produce does not reach the right consumer on time.