DHL Group deepens India bet with €1 billion investment, strengthens Blue Dart synergies

DHL Group is sharpening its long-term commitment to India with a new €1 billion investment pipeline until 2030, betting on the country’s booming demographics, improving infrastructure and increasing its importance as a global manufacturing and export hub, says Tobias Mayer, CEO of DHL Group.

He adds that the logistics discipline, which has been present in India for over four decades, is expanding capabilities across warehousing, healthcare logistics, technology and green operations, making the country one of the most important growth engines across the globe.

While addressing the media, Mayer said DHL’s optimism about India is based on what it describes as the country’s compelling and positive demographics, improved governance, and significant progress in digital infrastructure and systems. Multinational companies are increasingly adopting a “China+1” or “Asia+1” strategy to diversify their supply chains, and India is emerging as a preferred location not only for domestic sales but also for export-oriented manufacturing.

DHL views this shift as a major structural opportunity and has therefore included India in its GT20 initiative, a list of countries expected to see strong tailwinds from geopolitical and economic realignments.

Even as DHL deepens its presence in India, the company is simultaneously navigating a complex global environment, he adds. In the latest quarter, the group saw pressure on revenues due to slowing US trade volumes and currency headwinds arising from moves in the euro against the rupee and the dollar. Despite this, the company improved profitability, increasing operating profit by 8% and earnings per share by 16%, supported by cost optimization and share buybacks.

Sustainability is another key pillar of DHL’s strategy in India. Under the GoGreen Plus programme, the company is expanding solar adoption, electrifying last-mile deliveries, and investing in sustainable aviation fuel (SAF). While SAF production remains limited in India, DHL is using SAF procured abroad to offset emissions and aims to scale up its green initiatives as local availability improves.

DHL operates four main divisions India Express, Global Forwarding, Supply Chain and E-commerce, each serving a different layer of global and domestic logistics. DHL Express, the company’s asset-heavy international transportation arm, operates a fleet of around 300 aircraft worldwide, designed to provide the fastest connections between any two points in the world. In India, its network is largely complemented by Blue Dart, a 75% owned subsidiary of DHL, which provides unparalleled connectivity via remote and hard-to-reach PIN codes.

Blue Dart’s extensive footprint of more than 55,000 locations makes it one of the strongest ground distribution networks in the country. This capability is further enhanced by Blue Dart Aviation, which operates 26 domestic flights daily and is headquartered in Chennai. The airline also operates its own MRO (maintenance, repair and overhaul) facility, underscoring DHL’s deep operational integration in India. This partnership allows DHL Express shippers in metros and major cities to rely on Blue Dart for just-in-time pickups and deliveries in Tier 2, Tier 3 and rural markets.

Across other business lines, the size of the group in India is equally important. DHL now employs about 40,000 people in the country and operates nearly 20 million square feet of warehouse space, most of which serves fast-growing sectors such as pharmaceuticals, healthcare, automobiles and consumer goods. DHL Supply Chain recently opened a new pharmaceutical warehouse in Bhiwandi, showcasing its sector-focused expansion. The facility is part of a broader strategy to boost healthcare logistics, supported by acquisitions such as CryoPDP, which specializes in cold chain transportation of sensitive medical products.

The company is also betting big on India as a global technology hub. Of the 6,000 employees in its global IT services arm, about 2,000 are based in India across five hubs, including Chennai and Indore. These teams support DHL’s digital initiatives in automation, AI-powered optimization and compliance systems, reflecting the country’s importance in the group’s long-term digital roadmap.

With its multi-billion-euro commitment, growing aviation presence, deepening Blue Dart synergies and specialist focus areas such as healthcare logistics and digital technology, DHL sees India not just as a market, but as a strategic pillar of its global network for the next decade, adds Mayer.