Retail

Rhenus Group aims to reach 5 mn sqft of warehousing space in India by 2026: Tobias Martin Bartz, CEO, Rhenus Group


Global logistics services provider the Rhenus Group, which entered India through a joint venture in 2010, is now expanding its business by focussing on smaller towns. It expects more demand for efficient logistics as e-commerce grows. The company, headquartered in Holzwickede, Germany with annual sales of 7.5 billion euros, employs 40,000 people across 1,320 locations in over 70 countries. It offers services ranging from transport, warehousing, and customs clearance to value-added services across the entire supply chain ecosystem. Rhenus India operates out of 70 offices across the country, catering to key sectors such as automotive, engineering, renewables, chemicals and petrochemicals, life sciences and healthcare, and consumer goods. In an interaction with ET Online, Tobias Martin Bartz, the CEO, explains how the company is handling the challenges due to global conflicts and how it plans to expand in India. Edited excerpts:ET: How is Rhenus addressing the disruptions to global supply chains caused by conflicts in the Middle East and the Red Sea, particularly concerning the Suez Canal’s critical routes?
Tobias Martin Bartz (TMB):
The conflict is causing significant disruptions to global supply chains. These disruptions are leading to shipping delays, rising transportation costs, and potential shortages in energy and critical commodities. We are tackling these challenges by leveraging our global network and offering flexible routing options to ensure goods continue to move efficiently. We’re also closely monitoring the situation, working with local partners, and utilising advanced technology to maintain shipment visibility and control, ensuring our customers’ supply chains stay resilient.
ET: Rhenus says it plans to expand its warehousing space in India to 5 million square feet in three years. How will this expansion unfold?
TMB:
We currently operate 31 warehouses across India — about 2.4 million square feet of space. The expansion in both footprint and vertical storage will be driven by customer needs, which means we will be extending our reach into new cities and expanding into new industry segments. We are also making inroads into greenfield warehousing projects across several key regions. These new facilities, strategically positioned to serve a wide range of industries, will feature state-of-the-art infrastructure designed to deliver seamless, efficient logistics services.


ET: How would you see your current product portfolio in India?
TMB:
Our strength in India lies in providing integrated logistics solutions — services such as air & ocean freight, customs clearance, domestic and international trucking, and warehousing under one roof. Some of our value-added services include overseas warehousing, free trade warehousing zone, control tower management and cross-border trucking to SAARC nations. We also handle domestic and international project movements. We are well equipped to manage multimodal transportation via flatbed, trailer, inland barge, deep sea vessel, truck, rail, or air charter, or complex customs clearance procedures. We believe in a solution-driven approach tailored to customer requirements. Our services have grown with the addition of non-vessel operating common carrier (NVOCC) services. We are also working on expanding into inland waterways and will provide 4PL solutions to our customers for complete supply chain visibility.
ET: Please provide an overview of Rhenus’ expansion strategy in India?
TMB:
Since acquiring a customs brokerage license in 2011, we have expanded our warehousing footprint to 31 across India, with 2.4 million square feet. Our global service center was set up in 2021. We developed supply chain solutions in 2022, providing real-time visibility and offering 4PL solutions to customers. In 2022, cross-border trucking to SAARC countries was initiated. We now have a team strength of over 2,000 across 70 locations. Our seaport network includes JNPT, Nhava Sheva, Mundra, Kochi, Chennai, Ennore, Haldia and Tuticorin. Now, we are making inroads into inland waterway shipping and greenfield warehousing.
ET: Considering the fast-paced growth of retail, especially in tier 2/3 cities and semi-urban and rural regions driven by e-commerce, what strategies does the company have to target these segments?
TMB:
Rhenus is strategically investing in advanced technology to effectively serve tier 2 and 3 markets. Our warehouse management system and transport management system enable us to optimise the supply chain, providing comprehensive logistics solutions, including crucial first-mile and last-mile deliveries that support the e-commerce surge in smaller towns. By using these systems, we enhance delivery management efficiency and address the logistical complexities presented by rapid growth in these emerging markets. Moreover, Rhenus India is well-positioned to handle the increased demand for efficient logistics in these regions through our extensive network, including road freight and value-added services. Our focus on customised solutions helps us address our customers’ unique needs.

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