Mulling over the present progressive e-commerce transactions and upcoming tax reform of the country that’s expected to bring major and positive changes in Indian indirect taxability, DHL Group has decided to spread out more warehouses all over the country in order to enhance the warehouse capacity of the in one of the best ever succeeding economies.
The company considers at present B2C (business-to-consumer) as the next big challenge. There is a big scope for the contemporary retail industry for business development during this transition period of growth.
The Goods and Service Tax (GST) is likely to be operative July 1 onwards across the country. Having said that, businesses such as modern retail holds significant position in country’s financial system. It’s predicted that with the enforcement of the national GST Act scopes for individual business will soar, as it reduces the complexity of the exiting taxpaying system. A single tax will be paid in lieu of various city, state and federal taxes. The operatives of the companies need to be more unified in order to gain maximum from the local tax-break after GST execution.
Speaking about India’s e-commerce market it observes roughly 1.2 million transactions on a daily basis. It’s predicted by the KPMG August report that after GST rollout e-commerce market is likely to jump 31 per cent over 2017-2020 to $80 billion. The total requirement of warehousing space in the India’s top seven markets is seen rising to 839 million sq ft by 2020 from props 621 million in 2016,- said the Knight Frank India Pvt Ltd. Besides, DHL Supply Chain India confirms its sales have developed at about 30 per cent per annum over the last five years, double its estimate of the contract-logistics industry average. Presently the company holds 8m%-10% share of the $3.5 billion Indian market.
DHL will invest further $100 million to increase the capacity in coming 3-4 FYs. Out of which 65% is straightly allotted for the warehouse projects. Alongside the company also aims to improve the transport infrastructure for the sake of swift deliverance of goods by road mainly through contracted trucks from the enthusiastic vendors.
“Kolkata has seen many recent warehouse developments in Park Circus, Kona, Salkia, Santragachi, New town, Tyangra many other locations of north and south Kolkata including the river-side belt. We have been observing more startup companies dropping their respective commercial space requirement (especially retail space) under post your property requirement in Kolkata and against this surging demand many big players of the industry are ensuing bulk developments in accordance,’’- said West Bengal RERA and realty expert Mr. Mahesh Somani.
- Somani Realtors News Network