A
freight forwarding company that was established about 153 years ago in Germany
has come a long way, expanding its network globally. While a lot of things have
changed over the years, especially the speed of logistics, the ethics and
values ingrained into the culture of the company remain robust. Detailing on
what has changed and what has not changed at Hellman Global over the
years, Reiner Heiken, CEO says,
“This is still a family-owned company. We have always tried to be innovative
and forward thinking as an entrepreneur. This is still “a people’s business,”
our employees have a sense of ownership. We have a decentralised management
strategy.”
.
“In the past, we had a lot of entrepreneurial spirit all the way, but lacked
proper governance, which is not good for a global company. In the past 5 years
we have brought in a lot of good governance, but not in a bureaucratic way
because we continue to maintain the values and culture of the organisation,”
explains Madhav Kurup, Regional CEO IME...In 2019, when Reiner
Heiken travelled globally, he observed that regional offices were functioning
as individual pockets, which was not a good sign for a global company.
To
ensure the services remained agile, their good governance practices helped them
secure large volumes of cargo both in exports and imports. Hellman today has
dedicated systems in place, one each for sea freight, air freight, accounting
systems, and a massive digitisation move that has ensured use of new technologies
connecting global offices into a proper structure, which also helped in
creating better touch points for customers, upping the benchmark in efficiency
and quality. The vision of the company
is “for the better, together,” Which Reiner Heiken explains as, “We want to do
it better for our customers, become a better employer, contribute to better our
environment, lots of opportunities are here and all of this has to be done
together by the management and teams. The most important thing for us is
carrying high values as part of the company culture, be reliable, forward
thinking, build strong relationships with customers to understand their pain
points and become their logistics partner of choice.” As a result, the turnover
last year was $5 billion as compared to $4 billion in 2022. In a one-to-one
with Maritime Gateway, Reiner Heiken, CEO, Hellman Worldwide Logistics and
Madhav Kurup, Regional CEO IMEA, detail on the company’s strategy, digitisation
and plans for the Indian market...How important is the Indian market in your
global operations?
Madhav Kurup: Within
the IMEA region, India is the largest market in terms of the share size. This
region extends from Bangladesh all the way to South Africa. We have 20
operating entities, of which 14 are country organisations, then we have six
specialised joint ventures. We have vertical specialisations; in automotive
aftermarket spare parts we are the market leaders in the Middle East. Then we
have joint ventures in healthcare and chemicals. We are very strong in road freight
in Europe, where we started about 153 years ago. We have always expanded with
organic growth and not by making acquisitions like others. We started expanding
organically in Hong Kong and then moved to US, Australia, South Africa,
expanding our network as customers demanded. Today India is the fifth performing country globally and going by the
size of the market, in India we can say we are still in our early days. We had
opened our first office about 17 years ago and we still feel young in India. In
India we are mainly a freight forwarding organisation and we particularly focus
on two main products – air cargo, sea cargo and Customs clearance...We also
have pockets of our warehousing activity across the country. Many of our
customers are looking at creating hubs in India so that they can reach out to
any market within India in 48 hours through road or rail. In road logistics, we
will create solutions on digital platforms for specific industries. Reiner
Heiken...The surrounding market potential is also large between Middle
East, Africa and Far East. Again, we
have learnt from the war in Ukraine, because Germany had high dependency for
oil & gas from one country. We are exporting too much to China which is not
good, so India emerges as China plus one option. Our main investment in future
will go into India.