China’s manufacturing giant, CSC, will build new factories and factories hubs in India, Vietnam and South Africa in an ambitious drive to boost its global logistics footprint and improve its competitiveness.CSC, the world’s largest logistics provider, is currently in talks to build an Indian factory at its factory in Jharkhand.
India has also offered to buy the company’s CSC Logistics Centre in Chennai for $3 billion (Rs 3,890 crore).
The Indian government has also given the company a $600 million concessional loan, worth about Rs 1,500 crore, to expand its logistics operations.
The Indian firm is already a leader in the global logistics space and has recently been named as the No. 1 player in India’s container and freight markets.
India’s new crane plant, built on the outskirts of Ahmedabad, is expected to be operational by 2020.
CSC has already completed its first three assembly lines in the country and is planning to build a fourth assembly line in 2019.
The company also plans to increase its capacity in the next two years.
India is looking to diversify its logistics sector and expand its exports of goods such as textiles, clothing, cosmetics and other consumer goods, which account for almost half of its total export volumes.
It has also sought to diversate its manufacturing capacity in Asia by building a logistics centre in South Africa and plans to expand the operations of its logistics arm in Vietnam.
India has a growing domestic supply chain in the manufacturing sector that is dependent on the Chinese market, but it is not a major market for China.
It currently has only three major domestic logistics hubs, while China accounts for roughly 80% of the world market.