KATHMANDU: Japan’s Hitachi Transport System will spend $108 million to build four logistics centers in India, NIKKEI Asia reported.
The company is making preparations to open the sites in Chennai and Mumbai next year, followed by centers in Delhi and Bangalore in 2025 or 2026, according to the report.
Construction has already kicked off in Chennai and Mumbai, with total floor space covering 40,000 to 50,000 sq. meters.
Several automakers and other manufacturers from Japan, Europe and South Korea have a presence in all four cities. The facilities will transport automotive and electronic components.
Hitachi Transport intends to build a distribution network in a market seen serving as a foothold for expansion to the Middle East and elsewhere.
In 2010, Hitachi Transport acquired India’s Flyjac Logistics for about 5 billion yen, looking to make use of a transport network connecting Flyjac’s 25 locations around the South Asian country.
But freight volume, however, did not rise as expected due to India’s complicated tax system on the logistics industry, the report said.
(With inputs from Agencies)
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