Arshiya International Ltd,
a leading supply chain
and logistics infrastructure
solutions company
based in Mumbai, has
announced the operational
launch of the country's "first"
free trade and warehousing
zone at Panvel, Mumbai. The
165-acre state-of-the-art facility
will come up in two phases and
employ over 25,000 people at
full capacity. The project is estimated
to cost
1,500 crore.
Commenting on the announcement,
Ajay S. Mittal, Group
CMD, Arshiya International Ltd,
said, "With the launch of India's
first FTWZ, Arshiya will not only
increase profitability and induce
cost savings for our customers,
but will also serve as a game
changer in the Indian logistics
landscape. The FTWZ develops
a whole new dimension in our
ability to provide integration,
flexibility and savings for our
global and Indian customers,
and we are especially excited
about the opportunities to make
India a regional storage and
value-addition hub."
Logistics costs in India are fairly
high-at around 14 per cent of
GDP compared to 8-9 per cent in
most developed nations. A major
contributor to high costs stems
from the lack of infrastructure
investments into the logistics
space within India. Arshiya's
FTWZ announcement highlights
a landmark beginning within the
Logistics Sector that is expected
to improve efficiency and lower
costs for Arshiya's customers.
Arshiya's five FTWZ footprint will
be part of a larger
7,000 crore
integrated infrastructure plan
including the creation of five
strategically located domestic
Distriparks and a 75-train Pan-
India Rail Infrastructure charter -
all on an existing ten-year freight
forwarding, supply chain & IT
solution legacy making Arshiya
India's first and only truly integrated
logistics company.
Mittal further added, "Our
ability to scale our rail infrastructure
operations to 12 rakes
in just over a year of operations
proved that there is need for
integrating infrastructure solutions
with logistics offerings in
the rail space.
Falling under the SEZ Act,
FTWZs offer immense benefits
to companies with import,
export, and trading activities
outside the country. These zones
allow flexibility towards enddistribution
through duty deferment,
higher inventory visibility,
reduced buffer stocks, and
overall lower product costs.
They also enable flexible and
hassle-free re-export in addition
to other advantages.