Contract logistics provider DHL Supply Chain will invest EUR 500 million (approximately Rs 4,000 crore) in India over the next five years to expand its storage capacity, workforce and sustainability initiatives.

With this expansion, DHL Supply Chain will add 12 million square feet of storage space to its existing portfolio to bring total capacity to 22 million square feet by 2026, the company said in a statement on Wednesday.

The company will add these 12 million square feet of capacity to fully owned DHL multi-client locations in key metro cities such as Bangalore, Chennai, Kolkata, Mumbai, NCR and Pune, to cater to growing sectors such as e-commerce, retail, consumer, manufacturing as well as automotive.

The company also plans to double its workforce in India to about 25,000 people by 2026, and turn its entire intra-city fleet to green transport by 2025, the company said.

We have a long-term view in India, with companies here that have reasons to be optimistic, said Terry Ryan, CEO, DHL Supply Chain Asia Pacific.

DHL Supply Chain is part of DPDHL Group from Germany.

The company said it will also open two new business support centers (BSC) in Bangalore and Pune within the next 12-18 months to meet customer demand. Currently, it has three such 24X7 centers in Mumbai, Gurgaon and Chennai.

“With a rich pool of highly qualified young talents and innovative digital entrepreneurs, India is a preferred hub for our global contract logistics in DHL Supply Chain and one of our priority markets,” said Oscar de Bok, CEO, DHL Supply Chain.

DHL Supply Chain said its SmarTransport division will also use its warehouse investments to further accelerate transportation growth by providing strategic, scalable solutions to major customers, enabling economies of scale with end-to-end service offerings.

By building large multi-client locations with efficient end-to-end transportation solutions, the company can maximize operational efficiency and is in a strong position to scale according to its customers' needs, across industries, said Vikas Anand, Managing Director Director, DHL Supply Chain India.