Scan Global Logistics (SGL) has announced its entry into India marking a pivotal milestone in its global growth trajectory. The move is not just geographical, it reflects a carefully calibrated strategy to tap India’s burgeoning trade flows, rising demand for sophisticated logistics, and expanding manufacturing and export base.
India presents a compelling growth opportunity for global logistics players today. With its position as a fast-growing global economy, rising foreign direct investment, and an increasingly integrated role in global supply chains, the country has been on the radar for logistics expansion.
For SGL, entering India is the next logical step after aggressive expansion elsewhere—Latin America, East Africa, Europe—where the company has leveraged acquisitions and new offices. The firm brings to India its full-suite logistics capabilities (air, ocean, road, rail, warehousing, project logistics) and a global network.
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With many multinational firms operating in India and Indian companies increasing export ambitions, SGL sees a dual customer base—serving inbound global trade and outbound export flows.
Entry Blueprint: Local Presence and Focused Roll-out
SGL is starting its India operations with HQ in Mumbai, and offices in Chennai and Delhi, its first nodes to anchor the local network. From these bases, the company intends to scale rapidly to other cities.
Leadership on the ground is entrusted to Vikash Agarwal, who is charged with building the India organization: "India is an exciting market where speed, flexibility, and trusted relationships matter more than ever. We are building an agile organisation from the ground up, empowered to make quick decisions and provide solutions that fit our customers’ needs."
Rather than competing purely on cost, the company signals that it is aiming for value differentiation - specialized capabilities, reliability, and customized solutions over being the cheapest.
They also plan to leverage specialized verticals like Project Logistics (heavy/oversize cargo, infrastructure) and Humanitarian Logistics to differentiate locally.
Challenges and Advantages
India’s logistics environment offers both headwinds and tailwinds. On the positive side the Indian government is actively reforming logistics: integrated city-level plans, logistics data systems, multi-modal logistics parks, and cost-reduction schemes. The logistics sector itself is gaining attention as a strategic enabler of India’s trade ambitions.
But challenges remain: Infrastructure bottlenecks, last-mile connectivity, regulatory complexity across states, and high fragmentation in the warehousing and transport market. SGL will need to effectively manage local partnering, compliance, and scaling costs.
Outlook and Implications
If executed well, SGL’s expansion into India could strengthen its presence in Asia, complement its global network, and open up new cross-border trade flows. For Indian customers, a global logistics provider with local presence promises access to better global connectivity, integrated solutions, and consistent standards.
Allan Melgaard, Global CEO of SGL said: “We are just getting started. Our vision is to scale rapidly, expand our footprint, and become the preferred logistics partner for both international and Indian customers.”
Scan Global Logistics’ entry into India is more than a market play, it’s a strategic investment in the future of trade connectivity. Its success will depend on how deeply it can mesh global strength with local agility, and how nimbly it navigates the complexities of the Indian logistics ecosystem.
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