UPS open to Indian buyouts, works on decarbonizing ops
2 min read . Updated: 14 Mar 2023, 12:34 AM IST
PremiumUPS has set itself the target to achieve carbon neutrality by 2050, in line with the global push to decarbonize
New Delhi: United Parcel Service (UPS) is open to making acquisitions in India to grow its operations, executive vice-president Laura Lane said.
The American logistics company is focusing on expanding its presence in the domestic logistics market, and is planning to electrify its fleet in line with similar growth in Europe and China, Lane said in an interview.
“We are a company that looks always to grow organic and inorganic, and so, we are looking across the globe, including here in India, about additional ways to grow," she said.
The logistics giant has been present in India since 1989 and employs more than 3,000 people in the country.
“I have to say that our presence has been growing. With the launch of our partnership with InterGlobe with MOVIN Express, we are now looking at growing a bigger share of our domestic service offerings here. We have been traditionally more engaged in the import-export side of things, providing the best value, best reliability for cross-border logistics, but we are trying to also grow the domestic operations so that we can provide greater end-to-end solutions to end customers on all sides," said Lane, who is also the company’s chief corporate affairs and sustainability officer.
UPS and InterGlobe Enterprises formed MOVIN, a joint venture, in May last year. Lane said UPS is placing major focus on its Indian operations as there is an “appetite for growth".
UPS has set a net-zero target, committing to turn carbon-neutral by 2050, in line with the global push to decarbonize.
“Every company that is in logistics is still trying to find out how to decarbonize aviation, that’s why we made a carbon-neutral commitment by 2050, because we know that there are still innovation gaps that need to be closed, in terms of how to decarbonize aviation. It’s why we are working to increase the supply of sustainable aviation fuel in the key airports around the world and it is also why we are trying to be part of a solution for electrifying air operations."
She said UPS has been looking at ways to use green hydrogen, and is already testing hydrogen fuel cell vehicles in California, US.
“In India, we are looking at ways to electrify our fleet. In Europe and China, we are moving faster in terms of moving towards alternative fuel vehicles. We are one of the largest in terms of alternative fuel vehicles fleet," Lane said. The company has over 13,000 ground vehicles powered by alternative fuels.
“An area that we are obviously going to be expanding here in India is that we are going to be making an initial $15-20 million investment in information technology...technology centre in India. It will bring about a thousand more jobs to start with, and we are going to evaluate what contribution that centre can bring to both our global operations as well as our Indian operations. It is in Chennai. The investment will be done till 2025," she said.
The UPS executive further said the technology centre will support the company’s operations in the US and Europe. UPS has other technology centres in the US, Europe and Singapore.
She also spoke on efforts to boost exports by small businesses in the country, with a focus on women-led businesses. It recently partnered with India SME Forum to train 500 women entrepreneurs in India in export and related business areas. The training will be provided through experts via online and offline modes.
“Its a personal passion, but also an important business and strategic priority for our company to really help grow SMBs around the world, but with a particular focus on women-owned businesses," Lane said.
rituraj.baruah@livemint.com
