DHL expects double-digit sales gains in India to lead strong growth across Asia, the head of its Asian business said on Tuesday.
Scott Price, DHL's chief executive for Asia Pacific, told Reuters more acquisitions are being targeted to foster growth in the region.
"We see very high levels of growth in the business (in India), well into the healthy double-digit growth levels," Price said in an interview.
DHL in November 2004 bought a majority stake in Indian courier firm Blue Dart Express Ltd. for $163 million.
Price said DHL has invested $250 million in India in the past two years, and plans expansion to help strengthen its position as the country's leading express provider.
In October DHL said its India air subsidiary would add two Boeing 757 freighters to its fleet of five Boeing 737 aircraft in the first half of 2006.
"Overall our Asia Pacific revenue continues to have healthy double-digit growth, and in the first half of the year we grew in Asia Pacific by 19 percent," Price said.
The company's top five Asian markets -- China, Japan, Korea, Hong Kong and Singapore -- were seeing "solid double-digit sales growth," along with Thailand and Australia.
DHL's Asia revenue totaled $4.1 billion in 2004, compared with about $29 billion globally. China sales grew by nearly 50 percent last year.
The carrier, a unit of Germany's Deutsche Post World Net, has no plans to increase its ownership stake in Chinese forwarder Sinotrans.
DHL has spent $1.6 billion in Asia over the past three years, including $273 million in China. It controls about 40 percent of the $1.5 billion international express market in China.
Earlier this month, DHL said it would spend $210 million at its Hong Kong hub to meet demand in Asia.
Industry estimates peg rival FedEx Corp.'s share of the China market at 12 to 20 percent, while UPS has about 10 percent.
FedEx plans to shift its Asia-Pacific hub from the Philippines to a new $150 million center at China's Guangzhou Baiyun airport. UPS plans to build a hub in Shanghai by 2007.
"We do see very heavy competition growing in China, but we believe that we are ahead of the game and we know how to stay ahead," Price said.
