indian market I Interview The age of intralogistics has only just begun in India f+h Intralogistics interviews Jungheinrich manager Klaus-Peter Simon India, with a population of more than one billion, is one of the world’s strongest growing economies. The editors of f+h Intralogistics met Klaus- Peter Simon (left), manager at Jungheinrich Lift Truck India Pvt Ltd., Mumbai, to discuss the country’s economic development and its potentials for logistics and intralogistics. Despite some immense challenges, India is one of the strongest growing economies worldwide. In your opinion, what are the greatest challenges that lie ahead of this nation? First of all, one positive development is that the Indian government is focusing on an increasing commitment from foreign companies. However, this means that action must be taken to create conditions for said companies which facilitate operating on the Indian market. For instance, this concerns the standardization of the taxation system. In general, there are many different and partly also contradicting taxes and tax systems throughout India and its individual regions. This is what makes conducting business throughout the country, but also within or between Klaus-Peter Simon (left) in conversation with Reiner Wesselowski (right), Editor-in-Chief of f+h Intralogistics regions, so difficult and creates vast bureaucratic hurdles for companies. Furthermore, personally and in my function as manager of a foreign company, I must encourage authorities to continue to cut the red tape and enable business activities to flourish without imposing too many rules and regulations. Many things have changes, free trade areas have been created and the Indian government is making concessions with regard to customs and tax exemptions for larger investment projects. We must continue on this path. And, last but not least, it is basically a fundamental requirement for a working economy and any type of business commitments to enhance the available infrastructure as soon as possible. We have seen many changes in this respect, but there is still much more to do. However, it is not easy for a country like India with a population of more than one billion and a quickly growing economy to keep up with the pace – most of all for small and medium-sized companies. Still, the infrastructure is the foundation and we must waste no time to further develop and enhance it, in almost any area. This affects railway and road networks, but also ports and airports as well as energy and water supplies. Options for the future emerge from resolving issues. In this context, where do you see the opportunities for intralogistics? India as a nation has not yet reached the levels of countries, such as China with regards to both logistics sectors and this is also a result of the aforementioned framework conditions. However, previous developments have proven that India is on the right path with regard to logistics structures, for exampel distribution and intralogistics. For instance, this is reflected by the large and quickly growing number of shopping malls. It takes a certain level of intralogistics to create the requirements to supply all these businesses. With regard to Jungheinrich’s activities in the Indian market this example means we have made the right decision at the right time by launching our products on the Indian market. We have identified a vast potential for intralogistics in many sectors of the industry as well as the trade sector and we boast the corresponding portfolio to complete any intralogistics tasks, from industrial trucks to warehousing systems. Whenever companies in India plan to establish 12 f+h Intralogistics 5/2014
Interview I indian market areas of application for intralogistics. The chemical industry provides further potentials for application as does the traditionally very strong Indian pharmaceutical industry which includes home-grown as well as foreign manufacturers. All in all, this leads to internationally dominated relationships between customers and suppliers with all their special characteristics and the corresponding effects on intralogistics planning, concepts, and implementation. In this context, one vital aspect to keep in mind with intralogistics is that the required quantities of products and goods on the Indian market are far greater than, for instance, in Europe. Does the Indian user market also provide intralogistics market opportunities for the recently established Jungheinrich logistics systems subsidiary which, as we all know, combines logistics systems with warehousing and system vehicles? About Jungheinrich Jungheinrich is one of the world’s leading companies in the industrial truck, warehousing and material flow engineering sectors. As a manufacturing service and solution provider in the field of intralogistics, the company, based in Hamburg, Germany, supports its customers with a comprehensive product range that includes forklift trucks, shelving systems, services and consulting. The Jungheinrich share is traded on all German stock exchanges. It does indeed. However, we are still establishing the logistics systems segment in “India is one of the world’s strongest growing economies” new logistics structures, for instance with a warehouse as the intralogistics component, a decision is usually made in favor of cutting edge technology, from industrial trucks to the warehouse itself. One vital element of the economic growth in India was to allow foreign investment, for example in supermarket chains or in airline shares, both areas in which intralogistics play an important role. In your opinion, what are additional areas of application for intralogistics in India? All areas in which it is essential to quickly supply small parts, for example in the Indian automotive industry, are important India, for instance with regard to recruiting project engineers, planning experts, and sales specialists. It’s not as easy as it sounds in India. Still, we have already completed our launch on the logistics systems market. As a result, we are currently planning and implementing industrial truck applications in conjunction with our EKX units for an Indian motorcycle manufacturer. We have taken the first steps, but there is still a long way to go. Thank you for talking to us! Photos: Holger Seybold www.jungheinrich.com CeMAT INDIA · New Dehli Dec. 10-13. 2014 · Hall 14 Visit our Partner SFS EQUIPMENT PVT. LTD.