Partnering with the Compass Group, Mohebi Logistics has entered the Indian market with a 100% subsidiary based in Pune, the seventh largest metropolis in India.
Mohebi Logistics, which is part of Zainal Mohebi Holdings (ZMH), has begun providing supply chain support to the Indian unit of Compass Group PLC, the world’s largest contract food services company.
Mohebi works with customers like Nestle, Compass, Starwood and McDonald’s in the Gulf. The group’s diversified interests include retailing, food distribution, shipping and travel and tourism.
“We have started Indian operations working with Compass and are looking to expand our customer base going forward. India is a focus market for our logistics business, which is beginning to grow outside the Middle East,” Mohammed Mohebi,
CEO of ZMH, told Times of India.
While Mohebi Logistics is in the process of entering South Africa through an acquisition, in India it is looking for organic growth. “There aren‘t enough good acquisition targets as quality infrastructure doesn‘t exist in the Indian logistics sector,” said Mohammed Mohebi who is drawing up $300 million in investments to steer the logistics play in the next three years.
“But funding won‘t be a hurdle to expand our operations here, and hence I would not put a number on our proposed investment in India,“ he added. “Only 55% of Indian companies use third party logistics whereas the global average is 75%.
The Indian growth opportunity is immense if you consider the supply chain advantages in an economy that’s growing fast,” he explained further.
Mohammed Mohebi said that the group‘s supermarket chain Baqer Mohebi Supermarket would consider entering India at a later date, although no definite plans have been drawn up in this regard.