New Delhi: FM Logistic India, the Indian arm of the French transport company FM Logistic, plans to expand its operations by another 30 lakh sq ft by the end of 2022-23. It will be setting up its own warehouses in the major consumption areas of the country like Mumbai, Bengaluru, Hyderabad, Chennai, and Delhi. All these upcoming facilities will be developed by NG Concept, FM Logistic’s real estate sister concern, says a company press release.Meanwhile FM Logistic published on Tuesday its financial results for the fiscal year ended March 31, 2021. Revenues of the company for 2020-21 amounted to EUR 1,380 million, down 3.6% on a reported basis. They were affected by the economic downturn caused by COVID-19 in spring 2020 and a negative currency impact of EUR73 million, the release said.
These factors were partly offset by a strong business recovery in the second half of the fiscal year. Revenues were up 1.5% on a currency-neutral basis, the report added. The full audited results will appear in the annual report to be released in early July, the release added.
Earnings before interest and taxes (EBIT) were EUR 38.8 million, 8.7% lower than last year. The decrease mainly reflects higher costs associated with COVID-19 adaptation measures (EUR 8.1 million), partially offset by cost-savings and cost-passing measures, and FX headwinds of EUR 3 million. Comparable EBIT was EUR 41.8 million, a decrease of 1.6%.”In an economy in turmoil, FM Logistic has proved remarkably resilient and relevant. Comparable revenue rose 1.5%. We signed EUR207 million of new contracts between April 2020 and March 2021, half of which are related to omnichannel and e-commerce. Our employees’ efforts helped millions of consumers get the products they needed. We’ll continue to build on our strong positions in the consumer goods and retail industries to help our customers implement sustainable omnichannel strategies,” Jean-Christophe Machet, CEO, FM Logistic, said.
Growing demand in India
As with other businesses operating in India, 2020-21 revenues decreased due to COVID-19. At the same time, the on-and-off closure of brick-and-mortar stores in 2020 accelerated the demand for omnichannel and e-commerce logistics. Despite the pandemic, FM Logistic added around 10 Lakh sq ft of warehousing space under its operations, a 20% increase in its warehouse footprint, the release said.
According to Alexandre Amine Soufiani, MD, FM Logistic India, “FM Logistic India is proving its resilience in the face of COVID-19. We are carrying out our plans to expand in India and help our customers develop omnichannel strategies tailored to the Indian market.”
New contracts in India
According to the company, FM Logistic India was awarded new contracts in the FMCG, retail, omni-channel, e-commerce and pharma sectors. A leading pharmaceutical company has awarded FM Logistic India with a contract to manage the storage and handling of its Coronavirus vaccines. FM Logistic India is responsible for the handling, re-packing and storage of approximately 2 Lakh vaccines at a temperature-controlled facility.
A global cosmetics brand has entered into a contract with FM Logistic to manage the in-plant raw material and finished goods warehousing operations at its manufacturing plant in North India. This is a round-the-clock operation to optimise the client’s supply chain.
Contracts have been entered into with leading retail players to carry out warehousing operations for e-commerce fulfilment at the Multi-Client Facility in Bhiwandi.
On the distribution front also, the logistics service provider won several contracts from leading players in the FMCG, industry and pharma sectors, the release added.
In India, FM Logistic is focused on developing Grade A Multi-Client Facilities (MCF) in the most important economic zones. By Q2 of 2021-22, the logistics service provider will commence operations at its Grade A Multi-Client Facilities in Farrukhnagar (7 lakh sq. ft.) and Bhiwandi (4 lakh sq. ft.). The Farrukhnagar facility is the company’s first own MCF and among the first in India to combine LEED and FM Global certification. Both these facilities are strategically located and furnished with the best-in-class services. FM Logistic has also inked deals with Welspun One Logistics Parks and Lodha Developers to develop Grade A warehousing infrastructure in Bhiwandi and Palava, respectively, the release said.
Human resource development
Training initiatives implemented in India have contributed to halving the employee attrition and occupational accident rates in 2020-21. The number of women employed by FM Logistic in warehouses has doubled. Efforts are consistently being made across all warehouses to ensure that all collaborators have a safe and secure working environment and access to hygienic working conditions.
The Group has also ramped up initiatives designed to reduce its environmental footprint. As part of its green distribution offer, FM Logistic India launched its first batch of electric vehicles in Bengaluru. The EVs will be used to carry out intra-city deliveries for WayCool, India’s fastest growing Agri-commerce company and a leading player in the FMCG and food segment.
FM Logistic India will be helping WayCool to carry out hyper-local deliveries to local kirana stores, supermarkets as well as end consumers. FM Logistic India plans to deploy more EVs and cover more geographical areas under its green distribution network by this year-end, the release said.