Dimerco launches Expand to India advisory service

Dimerco Express Group, a leading global logistics provider, has launched a new Expand to India advisory service in Chennai/Tamil Nadu to help manufacturers seeking to establish new production and distribution operations in the Indian market.

The Expand to India advisory service will focus on customs brokerage, legal consultancy and other services designed to help manufacturers navigate the complexities of India’s customs regulations, legal requirements and trade compliance, says an official release.

“India's cost-effective workforce, government incentives and vast consumer market make it an attractive location for manufacturing expansion,” says Rajesh Srinivasan, Country Manager, Dimerco India. "But despite India’s many advantages as a manufacturing hub, it can be quite challenging to navigate the intricacies of the country’s customs, regulatory and logistics requirements. Our new Expand to India advisory service and experienced team will provide manufacturers with the guidance and support needed to achieve a smooth and fully compliant entry into the India market, including claiming relevant policy benefits.”

Why India?
Dimerco’s expansion in India (eight offices total) is in response to the large number of manufacturers chasing growth opportunities in India, the release added. "In 2023, India surpassed China to become the world's most populous nation, giving companies that manufacture there a huge built-in market. India also offers compelling financial advantages to growth-minded companies, including relatively low labour costs and government production linked incentives (PLI) to support new, job-creating factories and distribution centres in India."

The labour costs in India are 82 percent lower than China, 70 percent lower than Thailand, 49 percent lower than Indonesia and 40 percent lower than both Vietnam and the Philippines, according to data from World Bank. "Labour availability is also strong with a large working-age population (median age of 28), including many engineers who are mostly bilingual."

Srinivasan says companies, anxious to capitalise on these advantages, often move too quickly, underestimating the complexity of India’s customs, regulatory, logistics and supply chain requirements. "As a result, their expansion projects experience massive delays, added costs and damaged customer relationships.

"Companies need support that goes beyond traditional logistics services. Our local expertise in legal and regulatory requirements will help growth-minded companies achieve fully compliant, hassle-free expansion to India.”

Dimerco is also offering factory management and distribution services throughout India, the release added.