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large customers and branch network. Additionally line haul will be done between various MCS where we shall invest in higher capacity vehicles. You have indicated that DHL Supply Chain will need nearly 10k workforce in next three years. However, talent crunch is a major issue in the Indian market. We know that you have a dedicated Gurukul programme. But will that be sufficient to meet with your requirements? Gurukul (our Operations Simulation Programme is one of the many talent development programmes we have invested in and embarked upon. We have also created training programmes targeting a number of roles. In addition to Gurukul, we have the following programmes running for talent development in India:  Supervisory skilled training for supervisors  Site Manager Programme (SMP) for site Managers  Emerging Leaders Programme for Young Talent In addition to all these Programme we are also providing opportunities to our workforce in key foreign markets. We are involved in Talent Exchange programme within South and South East Asia & APAC where Indian staff gets the opportunity to work in large retail , auto , consumer durables, technology , pharma etc warehouses for a period of six months and more. You are expanding your warehouse base, tending to augment your fleet size and the broader idea is that you would like to enhance your speed to market capabilities. However, India is a market where cost to market dynamics largely determine the operations of supply chain firms. How will you respond to it? I think we need to redefine the concept of logistics cost. Our Supply Chain teams look at end to end costs

including inventory carrying,returns, obsolescence, etc. Our optimization programmes ensure we take away waste from the supply chain costs and one of the key benefits is Speed to Market. We shall optimize costs and create Speed to Market based on the following:  DSC MCS aimed at streamlining warehousing at key strategic locations and establishing key transport branch network operations across the country  DSC MCS designed as per DHL Global Standards  State of Art racking and traffic management for seamless flow  Improved infrastructure quality with operational excellence  Consolidation of synergies for transportation and warehouse operation  Create economies of scale synergies for cost and forecasting  Infrastructure improvements beginning to change fundamentally the network solutions currently in vogue – e.g. faster/ reliable transit times resulting into consolidation of distribution points After this announcement of a major investment, can it be concluded that you have no desire for any inorganic expansion in the Indian market. Not, at least in the medium run. India is a very exciting market where these investments are aimed at improving our share of wallet with our existing customers and aggressively gain market share by acquiring new customers in the near and medium term. However in the longer term, if an exciting M & A opportunity comes our way, we shall evaluate and take a call. Again, with this kind of investment, are you looking at becoming a pan-India supply chain player in the true sense of the term by 2015? We already are a PAN India player with presence in more than 50 cities having

100 plus warehouses. We are providing warehousing,transport plus value added services like D2M, technical repairs, kitting /co packaging services all India basis across various sectors like retail, consumer, healthcare, automotive, fashion, technology etc. Our strategy by 2015 is to become investment of choice, provider of choice and employer of choice in the Indian market place. We have already made substantial progress towards that. Lastly, a small point on timing of this announcement. Just prior to your announcement, the Indian government gave green signal to some big, bang reform measures which of course would eventually lead to expansion of the market. Have these new measures especially FDI in MBR propelled you to finally go all hog in India? DHL Supply Chain is strongly committed to investing in markets of growing importance. We are looking at 2015 and beyond, where indicators show India, and other emerging markets are expected to be the key drivers of growth. Hence, with these investments in India, we are taking one more step in the right direction to pursue DHL’s global strategy. The key drivers for the investment announcement which we have made are :  3PL market is growing much faster due to increased outsourcing. 3 PL market growth @ 21% is much higher than growth in logistics market @ 10%.  3PL will account for 13% (EUR 4.4bn) of total logistics market in 2015 from the current low of7%  Due to maturing customer needs, the 3PL market growth is much faster than total logistics market growth  As a global organization we see tremendous scope for organized 3PL market growth in India. Hence this investment is planned ahead of the curve. LOGISTICS TIMES November 2012

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