* CEVA Logistics recently acquired Stellar Value Chain Solutions. What prompted this decision to augment the company’s operations in India?
The country’s domestic consumption and investment growth trajectory continues to remain high. Over the past three years, along with our Ocean and Air products, we have actively pursued and developed our presence in the Contract Logistics and Ground & Rail businesses.
The growing demand for eCommerce and the consumer retail landscape, with its need for warehouses and third-party logistics (3PL), led us to consider taking a bold and transformative step, redefining our strategic directives in light of the radically shifting customer and market dynamics.
Going forward, the acquisition would enhance our Contract Logistics and, with advancements in 3PL, expand our scope to include reliable warehousing and fulfilment services to provide a full suite of supply chain logistics solutions to our current and future customers.
We feel the timing is perfect, as it will strengthen our position as a provider of integrated, end-to-end Contract Logistics services and extend to benefit our other products and businesses. At CEVA, we are always proactive in responding to our customers’ requirements and this move gives us additional capacity and capabilities to create value in the economy alongside our customers.
* How will this transaction add value to CEVA’s services in India and worldwide?
CEVA Logistics is currently present in 75 locations across 35 cities in India. The deal to acquire Stellar will foster competencies in enabling growth and achieving operational efficiency.
We will acquire approximately 7,700,000 square feet of space across more than 70 facilities in 21 cities in India. Also, inherit the Stellar workforce of nearly 8,000 full-time and temporary employees, which will enable CEVA to build scale and diversify our presence in India.
Along with improved infrastructure and increased emphasis on the adoption of new technologies, CEVA will be able to implement a sustainable business model and create efficiencies, which will act as a backbone to support other businesses. It strengthens our commitment to provide customers with end-to-end supply chain solutions.
* Could you give us a brief about CEVA’s history and operations in India, its growth, and key offering to customers?
The CMA CGM Group has been present in India since 1989. The Group purchased CEVA Logistics in 2019. CEVA, now a part of the CMA CGM Group, has been operational in India for more than two decades.
Our extensive global network and supply chain capabilities provide us with the foresight to anticipate trends, develop solutions and respond to market conditions. This has led to long-lasting relationships with our customers, and we continue to evolve with them.
As part of our broad range of responsive logistics solutions in both Contract Logistics and Freight Management, which includes Air, Ocean, and Ground & Rail, we offer end-to-end multi-modal services to our diverse set of customers across industries including automotive, consumer & retail, energy, healthcare, industrial & aerospace and technology.
* Where is CEVA headquartered in India and globally?
Globally: Marseille, France
India: Mumbai
* How is it positioned globally as an LSP?
CEVA’s goal remains to become a Top 5 global logistics player, and we’re closing in on that objective. We believe that the level of scale will allow us to carry out our mission of connecting people, products and providers all around the world. We want to be able to transport anything from anywhere to everywhere.
We offer a broad range of end-to-end, customised solutions in Contract Logistics and Air, Ocean, Ground and Finished Vehicle Transport in 170 countries worldwide thanks to our approximately 110,000 employees at more than 1,300 facilities.
* How does CEVA see the potential of the Indian market and what are the company’s further plans going ahead?
We are optimistic about India’s economic outlook, and we expect trends in domestic consumption and manufacturing to serve as catalysts. There is a substantial opportunity to grow our business and capitalise on the rising domestic and global 3PL space, with a tremendous potential to expand effectively while adhering to standards that will broaden horizons for our customers and us.
Along with our well-established Air and Ocean businesses, we will continue to invest and expand our presence across Contract Logistics and Ground & Rail product offerings. Adopt organic and inorganic growth strategies to extend our leadership position and be a Top 5 global logistics player.
The acquisition of Stellar by CEVA Logistics is a positive move that will propel our Contract Logistics and Freight Management offerings in the India market. The integration reinforces the value we offer to customers.
* What would you say is CEVA’s USP?
CEVA is a people-centric organisation. Within our global CEVA network, we work as one team to provide and deliver the best customer service to our customers. We call that promise Responsive Logistics, and it takes each and every one of our 110,000 global employees to ensure that level of dedication to the customer. With our strong teams and insight, we can develop the strategy and the solutions that unlock value for our customers in their respective markets.
* What would be your message to the Indian trade?
The logistics and supply chain industry in the country is now positioned as a priority sector, which will enable companies to grow their businesses domestically and globally. The overall market in India is growing, and opportunities abound. With the right technology platforms, skills and network support, we are all well-positioned and eager to participate in the growth momentum. At CEVA, we are looking forward to using our new scope and scale to optimise and drive further growth.