Arshiya Limited: Launching the First FTWZ Hubs in India
Arshiya Limited was created with the vision to re-define the distribution networks of India with the development of the first two FTWZ Logistics Hubs in the country, connected to rail arteries and enveloped with an integrated I.T. platform. The company was founded in Mumbai and launched the bold move, confronting many obstacles along the way, to help unlock India’s vast potential for the rise of the second largest consumer market on the planet and growing export opportunities. The vision was to create an integrated infrastructure within the country, strategically linked to the vast rail arteries for transport, while leveraging traditional, value added and futuristic services as a market differentiator.
FTWZ Hubbing
Significant areas of land were acquired in two strategic locations of the country, to leverage the largest trade volume corridors of Mumbai and Delhi. The facilities are technically deemed as foreign land zones by customs to benefit from tax free services. The two mega facilities are located on the India rail network to enhance cargo flow across the country. Customs agents are based on site to expedite import and export documentation requirements and ensure a free flow of goods. These land hubs become the staging areas for product to be stored, partially assembled, packaged and then dispersed across the warehouse networks of India, with both financial savings and product velocity benefits (similar to the concept of “Regional SCM Hubbing” in water ports). These are clusters of efficiency where product can be stored, transformed and rapidly deployed with significant tax incentives provided for FTWZ status.
Panvel FTWZ located just outside the main Port of Mumbai, is the first FTWZ in India’s history and encompasses more than 165 acres. Major warehouse infrastructure has already been built, along with container yards, equipment depots, office buildings and cloud data storage centers. It is strategically located near the rail cargo station and electricity facilities.
Khurja FTWZ, ICD and Rail Siding is composed of 315 acres of land in Khurja, strategically located next to Delhi and a major rail corridor. The land area includes a 135 acre FTWZ, 60 acre Inland Container Depot (ICD), 50 acre Rail Siding and land for further expansion.
Rail
Arshiya also acquired a long term license to operate its own cargo trains across the country, connected to the FTWZ facilities and able to operate on the India Rail network. Currently, Arshiya operates 18 trains with rail cars holding over 90 containers.
Consumer Retail Distribution Channels
As product is imported into the FTWZ Hubs, value added activities can take place as needed and can then be dispersed to client distribution and warehouse facilities by geographic layers on a just-in-time basis, thus limiting forward deployed stock holding while ensuring consumer product access.
Integrated Service Solutions
Arshiya’s model is to provide a menu of options that its clients can utilise on an individual, plug and play or fully integrated basis depending on needs. The logistics and supply chain services should always be flexible. The services available will also depend on the market environment. The primary focus is on the unique benefits which can be attained from the “FTWZ Hubbing” services and related financial benefits.
FTWZ Cloud Data Storage Services
In the Industrial 4.0 economy, digital content is also a valued commodity that must be protected and stored. Arshiya has extended its business model to include Cloud Data Storage Centers within the FTWZ with secured infrastructure connected to a reliable electricity grid.
Contract Manufacturing
Within the new FTWZ guidelines, certain types of contract manufacturing can also be done within the FTWZ facilities providing even more flexibility for value enhancement.
Summary
Arshiya is pursing a strategy of providing innovative concepts, combined with major infrastructure, to support the rise of India as an evolving economic superpower of the 21st Century. It has been experimenting along the path, with the primary focus being on fully leveraging and defining the potential of FTWZ infrastructure to help clients design optimal product supply chains and cloud data storage solutions to adapt to a constantly changing India market.