Safexpress Rides High on the Goods and Service Tax Wave

Safexpress, India’s largest Supply Chain and Logistics company, inaugurated its ultra-modern Logistics Park in Agra recently. Covering a massive area of 2,00, 000 square feet, this newly developed Logistics Park will enable Safexpress to provide its clients with cutting edge state-of-the-art trans-shipment and 3PL services.

Speaking during the launch ceremony held on 9th of May, Mr. Vineet Kanaujia, GM – Marketing, Safexpress said,“GST (Goods and Services Tax) will come into effect by next year. This will lead to companies adopting new business models as well as supply chain models in order to save costs. Companies which have traditionally been operating with 30-35 depots may start operating with 4 DCs (Distribution Centers) and companies which have been operating with 4 DCs may start operating with one centralized DC. Warehousing will no more get driven by taxation, but by business needs.”


He explained,“Presently, in order to save on Central Sales Tax (CST), the manufacturers need to maintain numerous warehouses at multiple locations to show the movement of goods from one company warehouse to another. However, with the phasing out of CST and implementation of GST, the manufacturers will be able to maintain few centralized Distribution Centers. They would readily outsource their warehousing requirements to 3PL Service Providers like Safexpress, as it would be more viable for them. This will not only help the manufacturers to save costs, but they will also be able to focus on their core businesses better. With implementation of GST, the demand for ultra-modern Warehouses is bound to grow exponentially in coming years.”

He further added “At the moment, the Indian Supply Chain & Logistics industry is at an inflexion point. With GST getting implemented soon, the industry is all set to grow very swiftly. A major portion of this growth will come from Warehousing. Keeping this in mind and being the market leader of our industry, we have taken the ownership of driving a Warehousing Revolution in India. We are investing Rs. 600 crore to develop 32 world-class Logistics Parks at certain strategic locations across the country. These Logistics Parks will revolutionize the way Supply Chain functions in our country today.”

He elaborated, “As a part of our Warehousing initiative, in the last two years, we have already established state-of-the-art Logistics Parks at key industrial hubs like Gurgaon, Mumbai, Kolkata, Chennai, Bengaluru, Nagpur, Ahmedabad, Pune and many more. In creating this ultra-modern facility at Agra, we have invested Rs. 30 crore. Located strategically on Agra-Delhi National Highway 2, this Logistics Park will fulfill the Warehousing requirements of companies located in and around Agra.”

Talking to Mr. Kanaujia about the choice of Agra as a location for developing this ultra-modern Logistics Park, he said,“Agra is fast emerging as one of the vital industrial hubs in the country. Industries like Leather, Automotive and Apparel are performing extremely well in this belt. Rapid industrialization, coupled with low operational costs and well-connected roadways, has transformed Agra into one of the most strategic locations in the country for Supply Chain & Logistics services.”