Japanese specialised logistics firm NX Group (formerly known as Nippon Express) is targeting $380 million in revenue over the next two years as it looks to play a bigger role in India’s expanding semiconductor ecosystem, the company’s chief executive officer for the South Asia and Oceania region, Katsuhito Kobayashi, said.
The logistics company, which has so far handled sensitive automotive and pharmaceutical cargo in India, will set up a dedicated semiconductor logistics facility in Gujarat in 2027, expanding its network to 113 locations in India and 67 warehouses across 39 cities, Kobayashi said.
“Semiconductor logistics is very sensitive and complicated, but that gives us more of an opportunity. It is not just about handling the transportation of chips from the factory gate to various clients, but also the movement of equipment, material and specialised chemicals,” he said.
The company will draw on its experience handling semiconductor logistics in countries such as Japan to set up the ecosystem from scratch in India to serve existing chip packaging units and any new chip manufacturing units that come up, Kobayashi said.
For example, for semiconductor chips, the company provides transportation of semiconductor manufacturing equipment, precision components, customs clearance, warehousing, factory delivery, in-factory logistics, installation and distribution, he said.
“We have solutions that include vibration- and shock-controlled transportation, temperature and humidity management, and cleanroom delivery, which are critical for sensitive semiconductor equipment,” he said.
The company will also provide training to its existing 900-strong Indian staff to handle semiconductor chips and related equipment, rather than only hiring new people, Kobayashi said.
“Some of the Indian staff have already been sent to Japan for training workshops and on-the-job training to see how we handle semiconductor logistics there. Over the next two to three years, we aim to have five leaders in five major cities in India, who will help train the others for this specialised industry,” he said.
Though logistics costs in India are a bit higher than in other regions, Kobayashi hopes that as more semiconductor units start commercial operations in India, supporting infrastructure will develop alongside them, helping bring down overall freight charges.
NX Group, headquartered in Tokyo, is a major player in the global logistics segment. It has a presence across transportation, freight, warehousing and supply chain management.
The company signed a memorandum of understanding (MoU) with the India Semiconductor Mission, a mission under the Ministry of Electronics and Information Technology (MeitY) aimed at developing semiconductor logistics infrastructure and strengthening supply chains in India.
