Nippon Express sees India chip push drive 3x growth
Nippon Express Group, a prominent Japanese logistics company, aims to triple its business in India by 2028, according to Katsuhito Kobayashi, CEO of the South Asia & Oceania Region. This ambitious target comes as India's semiconductor ecosystem expands under Semicon 2.0. Kobayashi expects the company's revenue from India to reach $380 million by the end of the year.
India's vast market size and diverse population present significant growth opportunities for Nippon Express, but also introduce execution challenges. The company emphasizes the need for close collaboration due to the market's complexity. Kobayashi is confident that government support and improving infrastructure will enable the company to establish a solid presence in India.
The surge in semiconductor manufacturing in India is driving demand for specialized logistics infrastructure to handle the transportation, storage, and installation of delicate equipment and components. Nippon Express is already working with semiconductor manufacturers in India, including Tata Electronics, and plans to expand its services as more fabrication facilities (fabs) and semiconductor facilities are established.
The company has secured land in Gujarat's Dholera for setting up warehousing assets to support semiconductor fabs. However, Kobayashi also hints at exploring other potential locations. Nippon Express is collaborating with the India Semiconductor Mission (ISM) under a memorandum of understanding to share information, discuss logistics requirements, and address supply-chain resilience.
International partnerships play a crucial role in Nippon Express's strategy. The company has established connections in Japan, Taiwan, the US, and other parts of Asia, which it believes will be instrumental as India's semiconductor ecosystem matures. The group envisions a revenue of JPY 80 billion (approximately $500 million) in the Indian Ocean Rim region by fiscal 2028.
Nippon Express offers comprehensive semiconductor logistics services, including air and ocean freight, customs clearance, warehousing, domestic transportation, factory delivery, installation support, and outbound logistics. For sensitive semiconductor equipment, the company provides specialized transportation with vibration and shock controls, temperature and humidity management, and cleanroom delivery.
The company's capabilities were showcased at SEMICON India to demonstrate its potential to support India's semiconductor build-out.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
