Small and Medium Enterprises (SMEs) are the backbone of the Indian economy, contributing nearly 30% to the country’s GDP and over 40% of exports. Yet, these enterprises often face challenges in navigating international trade, from understanding regulatory requirements to scaling cross-border operations. DHL Express has long been committed to bridging this gap, equipping SMEs with the tools, knowledge, and logistics support necessary to expand globally.
In this exclusive conversation with Mr. R.S. Subramanian, Senior Vice President, South Asia, DHL Express, we explore how DHL’s initiatives, such as DHL GoTrade, are empowering MSMEs and women entrepreneurs to thrive in the global marketplace. We also delve into DHL’s ambitious sustainability roadmap, including electrifying last-mile deliveries, integrating Sustainable Aviation Fuel (SAF), and ensuring green logistics remain accessible in a cost-sensitive market like India.
As the logistics sector evolves toward a more sustainable and digitally driven future, Subramanian shares valuable insights on the role of partnerships, policy support, and innovation in shaping the next phase of global trade and sustainability.
Read the full interview for deeper insights:
Q. DHL has been a steadfast supporter of SMEs over the years. Can you share some specific ways in which DHL has helped SMEs navigate the challenges of global trade?
A. We have always believed that SMEs are the backbone of the economy. Today,India has 633.9 lakh registered MSMEs, contributing 30% ofits GDP and over 40 per cent ofits exports. Despite this, the most reported challenge for MSMEs, particularly in Asian countries, has been the limited information on international markets and lack of understanding of foreign traderegulatory requirements apart from the gap in skillsets. Hence,we see our global initiative, DHLGoTrade, as an important initiative to empower entrepreneurs from developing countries to access global markets.DHL Express in India has been working with non-profits to skill and enable women entrepreneurs and MSMEs to take their first steps into e-commerce and eventually equipping them to become proficient in cross-border trade.
In India, we have signed an MoU and are working with our government through the Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce, to equip Indian MSMEs with the necessary tools and knowledge to thrive in the international e-commerce market. The objective is to build a start-up kitfor first-time MSMEs by handholding them through the process of going global. It will cover 76 districts in three phases, and DHL is providing capacity-building sessions, training, and workshops to make these Indian MSMEs export-ready. This collaboration was recently extended via the Gems and Jewellery Export Promotion Council (GJEPC) to Indianjewellery exporters. Here we aim to make the jewellery exporters more competitive in the global arenaby leveraging our time-definite solutions, which in turn leads to faster customs clearance processes and less paperwork, resulting in shorter transit times.
We also have severalIT tools such asMy Global Trade Services (MyGTS), MyDHL+, and services like On-Demand Delivery (ODD) that are incredibly beneficial for our customers, are particularly useful for SMEs. For example, using MyGTS, an AI powered tool, a small business or a growing e-commerce merchant can instantly calculate the estimated duties and taxes for the shipment, the landed cost, compare differences across international trade lanes, and help one comply with import and export regulations easily.
Q. Please tell us more about the Go Trade initiative—what are its core objectives and key elements? Are there any success stories that demonstrate the lasting impact of this program on SMEs?
A. DHL GoTrade helps us foster international trade and promote sustainable and inclusive economic growth by empowering SMEs to engage in cross-border commerce. Our expertise lies in logistics,customs, and trade. Leveraging this, we aim to educate SMEs on the strategic advantages of global trade and equip them with the necessary tools to access international markets. Having said that, this is only one part of the GoTrade story.
One of DHL's signature programs under GoTradeis a collaboration with Prayatna NGO to establish Enterprise Resource Centres that providetrainers, machines, raw materials, and other necessities. This resource centre model aims to provide new skills or improve existing ones, allowing beneficiaries to start their own businesses eventually.We are extremely happy to share that the women beneficiaries we trainedhave experienced a 178% increase in their income. 25 of our beneficiaries have also established independent micro-businesses, investing in their own business transactions.
Additionally, we are working with Vrutti NGO on an accelerator program that will bring 200 MSMEs on board the government-approved ONDC e-commerce platform. The collaboration aims to boost growth and foster sustainable local economies.
Q. Sustainability has become a critical focus for businesses worldwide. How is DHL Express embedding sustainability into its operations and services?
A. Sustainability has been a fundamental pillar of the DHL Group. We understand that our decisions today have a lasting impact on future generations; therefore, our corporate social responsibility is not only a business mandate but our purpose. This purpose drives our actions, aligning them with our values and goals.
At DHL, our purpose – ‘Connecting People, Improving Lives’ is deeply ingrained in our DNA. It influences our decision-making process, as we consciously consider the world we operate in. Our current goals are closely aligned with the UN Sustainable Development Goals.
To ensure progress, we have integrated social, environmental and governance goals into our Corporate Strategy 2030. Our bottom lines, which reflect our commitments, include being an employer of choice, a provider of choice, an investment of choice, as well as being a green logistics of choice. Through this framework, we measure our progress and focus our efforts on achieving these commitments. For instance, we have added the GoGreen Plus service to our product portfolio to enable customers to leverage sustainable aviation fuel and reduce the greenhouse gas emissions of their international deliveries. We are also set to lead the way in sustainable aviation, aiming to have at least 30% of our operations powered by Sustainable Aviation Fuel (SAF) by 2030. Our journey towards sustainability is not isolated.We also believe in actively involving our people as the foremost flag bearers of our sustainable programs. For example, our Global Volunteer Day' (GVD) is our year-long approach towards volunteerism with a two-week action period. Today, we encourage our employees to volunteer for the communities or causes they support, wherever they can.
Q. DHL aims to achieve ambitious sustainability targets, such as electrifying last-mile deliveries and increasing the use of sustainable fuels. What progress has been made so far, and what challenges remain in achieving these goals?
A. The most notable progress is that we are one of the few organisations worldwide and the first in logistics to take a stand in reducing our Scope 1,, 2, and 3 emissions. We are doing what is technically feasible and commercially viable right now.
We have set milestones to focus our efforts and measure our progress. These transparent, time-bound targets and KPIs are integral to our strategic planning and decision-making processes, much like our financial goals. By 2030, over the base of 2021, we aim to achieve the following objectives:
- Reduce greenhouse gas (GHG) emissions to <29m metric tons of carbon* by doubling down and accelerating decarbonization measures across all operations.
- Target >30% Sustainable Aviation Fuels (SAF) blending in our Express and Global Forwarding businesses.
- Electrify 66% of our last-mile delivery vehicles.
- Leverage a carbon neutral design for all new buildings.
As of 2023, DHL Group is incredibly proud that we have made significant headway against these targets. In 2021, GHG emissions stood at 40 million metric tons. Comparatively, in 2023, this was reduced to 33 million metric tons CO2e.In 2023, we sourced 14% of global SAF supply for our own aircrafts, achieving a ratio of 3.2% – the highest of any global airline.By 2023, over half of our 66% last-mile electrification target was already achieved, as 37.6% of our pickup and delivery vehicles were electrified.
The primary challenge we face in our journey toward sustainability is the commercial viability of sustainable aviation fuel (SAF). While SAF and other sustainable fuels are available, their high price point presents significant barriers to scaling their use effectively. To successfully transition to an electrified delivery fleet in India, it is essential to establish a robust charging infrastructure and ensure the ongoing availability of electric heavy commercial vehicles (HCVs), which are still in the process of expanding. Nevertheless, DHL remains unwavering in its commitment to decarbonization, recognizing that collaboration with our customers and suppliers is essential to make sustainable solutions commercially viable. With our global reach and innovative approach, we are dedicated to leading the logistics industry toward a more sustainable future.
Q. India is a cost-sensitive market. How is DHL ensuring that its sustainable logistics solutions remain accessible and affordable for Indian SMEs? What advice would you give to SME leaders who are skeptical about its ROI or view it as a secondary priority- particularly in markets like India and China?
A. We recognize the cost-sensitive nature of the Indian market and have designed our sustainable logistics solutions, including the GoGreen Plus program. Our goal is to remain as ‘insanely customer centric’ as possible. Therefore, the right of choice remains with the customer. While booking a shipment, customers will have two options to select the GoGreen Plus service with DHL Express: either on a contractual basisor by choosing shipping service through MyDHL+, DHL Express’ online shipping and tracking platform. Via the contractual model, the customer decides how much they would like to reduce their CO2e and how much to invest in SAF. Complete flexibility is offered in this case. DHL Express uses the contribution to invest in SAF.
Sustainability has become a strategic imperative for SMEs, significantly influencing their long-term value and credibility. To better understand the growing prioritization of sustainability across the supply chain operations, DHL Express conducted an in-depth survey of 5,000 SME decision makers across 11 markets: the UK, France, Germany, the Netherlands, Australia, China, Singapore, Japan, Mexico, Canada and India. Findings show that SMEs in India and China are leaning towardsustainable logistics practices. 72% of Chinese SMEs and 59% of Indian SMEs said that sustainability is “extremely important” to their business – versus a global average of 35%. Globally, SMEs are not confident their customers are on board with paying extra for sustainable shipping options: across all countries, most SMEs said their customers would only be “slightly willing” to pay. In contrast, 51% of SMEs in India and 47% of SMEs in China think their customers would be “extremely” or “very” willing to pay more for sustainable shipping – versus a global average of 29%.
We believe that embracing sustainable practices not only strengthens brand reputation and fosters customer loyalty but also equips businesses to adapt to future regulatory changes and evolving market preferences that prioritize green operations. Through DHL's diverse initiatives and tailored solutions, we empower SMEs to make gradual yet impactful strides toward integrating sustainability into their operations, helping them stay competitive while contributing to a more sustainable future.
Q. What role do you see the government playing in steering the logistics industry toward a more sustainable future? Are there any policy interventions or incentives that you think are critical to this transition?
A. Sustainability is becoming an important focus for businesses across industry segments. We see this daily as more customers from different industries sign up for our GoGreen Plus service. The DHL Global Sustainability Survey also supports this claim with real data. The government is already making significant strides in sustainability, from expanding renewable energy and implementing the National BiodiversityAction Plan to advancing the Smart Cities Mission. Government involvement will help guide sustainable logistics progress, and we look forward to seeing what the upcoming union budget has in store for us.
Q. What role do consumers play in driving sustainable practices across the logistics chain?
A. Customers need to have a similar interest in making a drastic difference in the way they operate. With the introduction of GoGreen Plus in the market, we realised that the demand for the service was always there. Our customers too want to be more socially and environmentally responsible. To date, over 6000 customers have signed up with us for our GoGreen Plus service, highlighting their commitment to sustainability as well as their demand driving us to do better.
Q. With the rise of e-commerce, how is DHL addressing the challenge of scaling operations sustainably to meet the growing demand for fast and green delivery services?
A. We are consciously making an effort to incorporate responsible practices into our systems and processes. For example,through GoGreen Plus, we leverage SAF to “inset” greenhouse gas emissions while also meeting customer demand. While GoGreen Plus is the first-of-its-kind service in the industry, we also are amongst the largest users of SAF in the world.
Q. Looking ahead, what are the key trends you foresee shaping the logistics sector in the next five to ten years?
A. The logistics industry is on the cusp of significant transformation over the next five years. Trends shaping the industry over the next decade would include:
- Sustainability: Sustainability is at the top of everyone's agenda. The emerging trends carry a significant impact on decarbonization, alternative energy solutions, circularity, and environmental stewardship. Sustainable aviation fuels (SAF) are becoming a priority in the express logistics industry to promote the global harmonization of sustainability. The express industry will also see a rise in investments in e-cargo planes.
- Digitalization: Digitalization has created exciting and endless possibilities and coupled with automation we are witnessing a rapid transformation in express logistics to set us up for the next decade, enabling growth across the world, especially for India for our largeSME market. Digitalization and automation solutions have helped supply chains to become more streamlined and ensured durable sustainability for businesses even when faced with interruptions. The operations playbook in express logistics is now enriched with rapidly evolving technologies such as blockchain for secure transactions and across-the-supply-chain visibility, Internet of Things for real-time visibility and Artificial Intelligence/Machine Learning to minimize manual intervention and leverage our skilled labour for more strategic tasks.
- Supply chain diversification: Diversification will significantly impact globalized supply chain networks in the next five to ten years. As the Global Connectedness Report stated, globalization is far from dead. The prospects for future trade growth are surprisingly upbeat, despite the recent shockwaves caused by geopolitical crises, natural disasters, and patterns of protectionism. These events have put pressure on the business world to reimagine supply chains – to take a new path of resilience rather than receding from the global stage. The answer: supply chain diversification. Supply chain diversification means developing flexibility and redundancy to minimize risk and increase agility. Working with multiple suppliers is one way to achieve it. Another way is to expand and reimagine manufacturing and distribution networks. Yet another is using redundant and multimodal logistics solutions.
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