Why are Indian exporters so dependent on CPO?
Posted On July 26, 2021
Delek is a logistics services company.
It is India’s largest exporter of logistics goods, and employs nearly 2,500 people.
The company’s chief executive, Prasad Pandey, has an MBA from Jawaharlal Nehru University in New Delhi and has led logistics companies in Mumbai and Hyderabad.
He is also a former executive of a local shipping firm.
Deleks revenue has risen to about $300 million from $200 million, and its profits have increased to about 80 percent of its revenues, Pandey told me.
The biggest challenge is a lack of competition.
There are two large exporters, but the competition is much greater for the Indian manufacturers.
They need a big presence in the US, China, and Europe to sell their products.
And there is a lot of demand in these markets, too.
“In India, there is no one to challenge them,” Pandey said.
“It is like the US and China.
It’s the same with the American exporters.
The only way to be competitive is to compete against them.
But there is not any one that is making a lot in the markets, and it’s the Indian exporter who is going to face the big challenge.”
In addition to its exporters business, Delekas logistics business is also facing the challenge of the Indian market.
Delegate India, an organization representing Indian expats, says it expects to see about 30 percent of the expat workforce moving to the US by 2025.
The number of expats who are expected to move from India to the United States has increased by 25 percent since 2015, the group says.
The US has been the destination for nearly half of the total Indian workforce since 2000, according to a 2016 report by the McKinsey Global Institute.
Delegate India, which has partnered with companies like Delektronics, a logistics firm, and Cogent, a software company, hopes to bring in 100,000 Indian expatriates to the U.S. in 2025, with the rest expected to stay in India.
Deleva Technologies, a technology company based in Mumbai, is also working on a plan to bring 150,000 expats to the states of Michigan, Indiana, and Ohio in 2025.
DeLEVa CEO K.P. Dattatreya said the Indian-born company’s goal is to become a leader in logistics in the United Sates.
“We will become a leading exporter in the U,S.
with 50,000 employees,” he told me in a telephone interview.
DeLeva Technologies also recently hired about 500 new employees to staff its new headquarters in Boston.
DeLeva is currently focusing on expanding its operations in the states and is planning to open a second headquarters in Indiana.
In a bid to bring more expats and jobs to the Indian capital, DeLeVA is partnering with the Indian Embassy in Washington, D.C., to set up a logistics center in New York City.
DeLaVie, DeLaRite, DeLevia, DeLEVA, and DeLaTec are all owned by the DeLeVie Group, a group of companies that includes Cogents parent company.