Frank Appel, CEO, Deutsche Post DHL has been interviewed recently by an imminent newspaper firm to understand the emerging impacts of GST. Mr. Frank was open to say that the Asian countries will be ones who will grow faster than the developed countries at a consistent rate and not with a overwhelmed double-digit pace.
The interviewer asked about the emerging market and their growth rate for the concerning Asian population and the country equally. On this the CEO, Deutsche Post DHL mentioned that “We expect Asian countries will grow faster but not at a double-digit pace but in a mid-range single digit range. If you grow with 7.5% as India did, we have to be realistic about what is doable. But of course, countries in Asia will continue to grow faster than the US and Europe.”
While asked about the Indian inception in the growth stage along with the GST in its execution, the CEO said that “GST will help India to grow faster because customers and companies will make the decisions. In our case, for instance, the decision will be based more on logistics cost instead of tax arbitrage and that is right because then you have a cost optimized, service optimized logistics. You will take cost out, you will improve your service quality and that will generate additional growth because the money saved can be reinvested.”
“This will make the product cheaper and more affordable for the average person. I am very optimistic that India will accelerate its growth over time. We have such a grand franchise here. Our business is running so well and we have grown so nicely.”
The CEO Deutsche Post DHL was very much impressed with the demonetization drive and expressed some good words about it, although he clearly mentioned that it was not healthy for their business but ultimately accepted that it will benefit in a long term. However, he was confident about the GST and made every gesture to support it from his point of view.
