British retailer M&S sets up international logistics hub in Seeduwa

Two Sri Lankan companies are to provide specialised logistical services for British retail giant Marks and Spencer (M&S). This week, M&S, a US$ 16 billion turnover company, launched an ‘International Logistics Hub’ in Seeduwa to coordinate the delivery of garments from all over the world to its international network of retail outlets in 36 countries.

The logistics for these international transfers will be provided by two Sri Lankan companies, Global Transportation and Logistics Pvt Ltd, (GTL) and RJV International. GTL will provide warehousing and value added services for M&S while RJV International has been designated the logistical partner.

The M&S logistics hub is located inside Global Park, a 400,000 square foot logistics complex operated by GTL. M&S clothing, purchased from manufacturers all over the world, will be stored inside warehouses at Global Park and will be re-distributed to M&S International Stores.

“M&S will purchase garments from their manufacturers all over the world and we will provide the logistical services to redistribute the garments, in smaller quantities, to M&S International Stores around the world, especially in Asia and the Middle East,” said Chandana Punchiheva, a Director at RJV International.

The value added logistics services, known as ‘multi country consolidation’ services, are provided for M&S under a special arrangement with the Board of Investment of Sri Lanka.

The international hub is to start operations in June this year. “Imports will start by about June this year and over a 9 month period we hope to distribute 5 million pieces,” said Punchiheva.

Regional expansion

The Seeduwa international hub is the second ‘hub’ maintained by the British retailer in the Asian region. M&S already operates a hub in Hong Kong but operations from Seeduwa are expected to be more far reaching.

“The Hong Kong hub caters mainly to China. But from here, we will be catering to all parts of the world,” said Punchiheva. M&S said the international hub in Seeduwa will support expansion plans in the South Asian region. “This is very important for M&S overseas expansion and retail plans,” said Simon Doyle, the Head of International Operations of M&S, speaking at the launch.

M&S is expanding operations in the South Asian region and is already eyeing India, not only as a low cost manufacturing centre but also as a growing retail market. The company has already entered into a partnership with Reliance Industries of India to open at least 50 retail outlets in India over the next five years.

“We are manufacturing in India but we are also entering the Indian retail market,” said Donovan. “This operation will provide a key part of logistics infrastructure to support our growth plans in South Asia,” said Donovan. International Stores are a fast growing business for the M&S Group.

The company plans to grow its international business to 15% - 20% of group revenue over the next 5 years.