Dimerco Express Group Launches Comprehensive Advisory Service to Facilitate Manufacturers’ Expansion into India

Dimerco Express Group, a leading global logistics provider, has announced the launch of its Expand to India advisory service. This strategic initiative is aimed at helping manufacturers establish production and distribution operations in India, leveraging the country's growing market potential and cost-effective advantages.

Strategic Timing for the New Advisory Service

The decision to launch this Advisory Service Division at this juncture was driven by multiple key factors. Rajesh Srinivasan, Country Manager of Dimerco India, explains, "Post-pandemic, the China+1 strategy adopted by global MNCs to move factories to Southeast Asia and India created a significant opportunity. Since 2021, Dimerco has been providing Customs Brokerage Solutions to global MNCs, ensuring correct import documentation, Harmonized System of Nomenclature (HSN) code classification, and linkage with the Performance Linked Incentive (PLI) scheme to claim the right benefits." This foundation was further expanded with the introduction of Free Trade Warehousing Zones (FTWZ) and bonded operations for SMEs and mid-sized companies, promoting a scalable business model for testing, trading, and manufacturing.

A Unique and Integrated Approach

Dimerco’s advisory service sets itself apart from others in the market through its integrated approach and comprehensive offerings. Srinivasan highlights, "We differentiate ourselves from others in the market through our integrated approach and comprehensive offerings. Our Integrated Advisory Service Division provides legal consultancy on company setup in India, guidance on PLI scheme benefits from the Indian and respective state governments, and advice on land and tax benefits, including indirect tax benefits related to Indian customs and GST, in strategic partnership with a leading CPA firm." Additionally, Dimerco’s proprietary cloud-based logistics management platform, Dimerco Value Plus System®, offers seamless data integration and a visibility dashboard for global customers, positioning Dimerco as a "Value Creator" with innovative supply chain solutions.

Addressing Key Challenges in the Indian Market

Foreign manufacturers often face significant challenges when entering the Indian market. "Foreign manufacturers face several common challenges, including navigating various PLI schemes across different industry verticals, understanding the eligibility criteria and policies interlinked with multiple government departments, and managing the internal coordination and liaison with these departments from submission to approvals," says Srinivasan. Dimerco’s Expand to India advisory service addresses these challenges effectively by working closely with mid-sized and SME MNC customers, offering scalable solutions that include test marketing with product launches via FTWZ operations, navigating Indian customs and GST compliances, and eventually scaling into bonded or domestic manufacturing operations.

Early Success Stories

Dimerco's advisory service has already seen early successes. "One of our global electronics customers was exploring opportunities in India, and we assisted them in establishing their supply chain operations with a scalable business model. We provided solutions for HSN classification, direct and indirect tax guidelines, and local registrations with DGFT. After registration, we facilitated trial shipments via FTWZ, selling to their appointed distributors, and simultaneously offered documentation setup solutions for company establishment and warehousing/distribution," shares Srinivasan. Another success story involves a company manufacturing EV scooters, which, with Dimerco's support, scaled up from a product launch at an exhibition to a contract manufacturing setup in Western India.

Future Expansion Plans

Given the success of the new Expand to India advisory service, Dimerco plans to expand similar services in other emerging markets. Srinivasan notes, "Dimerco already has a strong track record of assisting clients in integrating into various markets across the Asia-Pacific region. For instance, Vietnam has emerged as a key destination for manufacturers diversifying from China, given its proximity and logistical advantages." The criteria for such expansion will be based on market potential, logistical advantages, and the ability to provide comprehensive compliance and logistics support.

Dimerco's Expand to India advisory service represents a significant step forward for global manufacturers looking to tap into the Indian market. By offering a comprehensive suite of services tailored to the unique challenges of India's regulatory and logistical landscape, Dimerco is well-positioned to help companies achieve seamless and compliant market entry. As India continues to grow as a manufacturing hub, Dimerco’s innovative and integrated approach will undoubtedly play a crucial role in facilitating successful expansions and fostering global trade connections.

To connect with Dimerco to learn more about the new market expansion service in India, visit dimerco.com/contact-dimerco

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