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The increasing trade link between Hong Kong and India has drawn the Indian leading express distribution and integrated freight provider, GATI, to establish its new office in Hong Kong to tap on the business opportunities between India and the Pearl River Delta Region.
As the 11th largest trading partner of Hong Kong, India-Hong Kong bilateral trade reached a total of US$5.77 billion for the period of January to September 2005, a growth rate of 29% compared with the same period in 2004.
GATI, the first Indian logistics company to set up in Hong Kong, aims to seize the opportunities from establishing a gateway to southern China and transshipment hub between China and India through its Hong Kong operation.
Announcing the move today (December 8), the Managing Director & CEO of GATI Limited, Mr Mahendra Agarwal, said, "Our key thrust into Hong Kong is in establishing a sales and marketing presence and developing strategic relationships. Hong Kong is a key market for India-centric business because of its business ties and geographic proximity to the Pearl River Delta. GATI, a household name in India, plans to build awareness through integrated marketing initiatives.
"Hong Kong with its sound infrastructure, world-class facilities and strategic geographical position is a natural choice to be the linchpin of GATI's business in the Pearl River Delta," he continued.
GATI plans to focus on developing express distribution and integrated freight business opportunities with companies that plan to enter or are already operating in the Indian market.
Mr Mahendra said an India-centric strategy made sense for GATI's international business for many reasons -- India is the world's fastest growing market after China, imports into India are growing at a rate of about 16% per annum, and GATI's unparallelled delivery reach, multi-modal connectivity, world-class e-solutions, and state-of-the-art logistics capability makes GATI the ideal logistics partner for companies importing to, and doing business in, India.
The company plans to increase its direct employee strength in the Asia Pacific region to 50 and its indirect strength to 10 times this number in the next three years.
The Vice President of International Business at GATI, Mr Brad Jeffreys, said,"We have already formed customer relationships with several businesses and multinational companies in Hong Kong, and early feedback indicates that GATI's key strengths and capability in India equip us with a genuine value proposition to offer in the China market. Regionally, GATI provides a logistics gateway to India.
"The company will look for joint venture opportunities with regional leaders as a means of achieving integrated growth," Mr Jeffreys said.
Both the Consulate-General of India, Hong Kong, and Invest Hong Kong welcome GATI's presence and investment in Hong Kong.
At the opening ceremony of GATI Hong Kong Limited, the Consul-General of India, Mr BK Gupta, said, "Efficiency, reliability and speed are not only the hallmarks of the Hong Kong economy but also the essence of GATI -- with connectivity to 580 districts in India, GATI Hong Kong would be the ideal choice for the Indian community and global businesses in Hong Kong seeking business opportunities in vibrant India."
Speaking at the same occasion, the Associate Director-General of Investment Promotion at Invest Hong Kong, Mr Simon Galpin, said, "GATI's decision to build its direct presence in Hong Kong is timely. The rapidly growing economy in the Pearl River Delta has created tremendous opportunities for international logistics services providers. We believe that the company's established network in India, coupled with Hong Kong's extensive international connectivity, will strengthen our offering to businesses in Hong Kong and the Pearl River Delta. We are excited about the development, and look forward to working closely with the company in its future expansion in Hong Kong."
Headquartered in Hyderabad, GATI provides customs clearance services at major sea ports in India and at eight major airports in India, namely Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Mumbai and Trivandrum. Regarded as the market leader in express distribution in India, it is the only company that delivers to 580 out of the 590 districts.
Established in 1989, the company owns 38 warehouse facilities with a total area of 600,000 sq ft and offers third-party logistics, retail logistics, and full supply-chain-management solutions. In Asia-Pacific, GATI has an established network of offices in Sri Lanka, Bhutan, Singapore, Hong Kong, Beijing and Shanghai, with 2,600 employees and 3,400 business associates and vendors. For more information, please visit the website at www.gati.com.
Ends/Thursday, December 8, 2005
Issued at HKT 16:45
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