Investments

DHL Invests $15 Million in Life Science Industry in Asia

Launches Life Science Competence Centres in Mumbai, Hyderabad and Singapore

Frank Appel

DHL, the world's leading logistics company, is investing $15 million (Rs 72 crore) to strengthen its infrastructure to fulfill the growing demand for logistics services in the global life science industry. Towards this end, DHL Global Forwarding is also launching life science competence centres at strategic locations across Asia - Mumbai, Hyderabad and Singapore to bolster its international freight capabilities for the life science industry in the region. With a compounded annual growth rate (CAGR) of 9 per cent per annum in airfreight and 12 per cent in ocean freight, India is poised to be the fastest growing country in Asia for life sciences by 2014.

DHL Global Forwarding's vast experience in the life sciences sector necessitates handling of sensitive cargo, which is often involved in aid and relief efforts. As an extension of this expertise, DHL Global Forwarding is setting up the regional aid and relief logistics unit in Singapore to provide dedicated services to the

international aid, humanitarian and development sector. This sector, which comprises the United Nations (UN) agencies, Governments and other organisations, spends approximately $25 billion annually on logistics services globally. Currently, Asia Pacific is the second largest recipient of global humanitarian assistance, after Africa.

The life science industry is one of Deutsche Post DHL's priority sectors and the network of Competence Centers will enable DHL to harness capabilities for its customers in this fast-growing industry. "We are making significant investments in Asia, the hub of the life science industry, to deliver health to the world," said Frank Appel, CEO, Deutsche Post DHL. "Our global network of competence centers for this industry has seen a sharp increase in scale and complexity management, requiring us to provide reliable international and domestic logistics solutions," he added.

In 2009, the global pharmaceuticals sector, a key segment of the life science industry, is estimated to be worth $820 billion, with an expected growth rate of 14 -15 per cent in emerging markets. As the world's second most populous

country, domestic demand for drug consumption in India is expected to grow at a CAGR of more than 13 per cent to reach $11.2 billion by 2012. Having established itself as a preferred destination for outsourced drug discovery, clinical research and manufacturing functions, India's pharmaceutical production market is projected to grow at a CAGR of over 40 per cent, valued at $2.5 billion by 2010. The emerging markets are a key sourcing, manufacturing and distribution base for the global pharmaceutical industry. India alone will account for approximately nine per cent of the airfreight volume out of Asia by 2014.

The competence centers will comprise a core team of industry professionals who will develop customised solutions at origin and enable customers to better manage the product flow in their international supply chain. These centres will fill the gap in the existent logistics supply chain, by providing improved temperature controlled handling and storage, greater transparency and DHL's complete end-to-end logistics capabilities for viable life science solutions. With these services, the competency centres in Asia will not only improve the quality and compliance levels of this industry, but will result in cost efficiencies with increased speed to market and higher levels of product availability and product integrity.

Currently, DHL Global Forwarding has a network of 16 competence centres across the globe. With the launch of three more centres in Asia, DHL Global Forwarding will operate 19 Life Science competency centres around the world, all of which have been strategically located to ensure proximity and accessibility to customers and the end consumers.

EH News Bureau