Nippon Express Group Eyes 3x India Business by 2028, Flags India’s Scale as a Challenge

Nippon Express Targets Threefold Growth in India

Japanese logistics company Nippon Express Group is targeting a threefold increase in its India business by the end of 2028 as the country's manufacturing and semiconductor ecosystem expands.

Katsuhito Kobayashi, CEO of Nippon Express Group's South Asia & Oceania region, told Economic Times during SEMICON India 2026 that the company wants its India business to reach three times the size it was in 2023.

The company is targeting approximately $380 million in revenue from India by 2028. 

The growth strategy is closely linked to India's semiconductor manufacturing ambitions under the government's Semiconductor Mission and the broader expansion of industrial supply chains.

India’s Scale Is Both an Opportunity and a Challenge

India's large population, geographical spread and diverse industrial markets offer substantial growth potential for logistics companies.

However, Kobayashi said the same scale also creates operational challenges.

India's logistics requirements can differ considerably across regions, industries and individual customers. Building an efficient network therefore requires logistics companies to work closely with manufacturers, infrastructure providers and government agencies.

Kobayashi described India's size and diversity as one of the key challenges for the company while also highlighting the market's considerable potential. 

The company expects improvements in infrastructure and continued government support to make it easier to bring Nippon Express's international logistics expertise to India.

Semiconductor Expansion Is Driving the Strategy

One of the biggest opportunities for Nippon Express in India is the development of the semiconductor industry.

As semiconductor fabs, assembly facilities and supporting industries are established, companies will require specialised logistics services for moving highly sensitive equipment and components.

Semiconductor equipment can require carefully controlled transportation because excessive vibration, shock, temperature or humidity can damage sensitive machinery.

Nippon Express therefore sees India's chip-manufacturing push as an opportunity to build a specialised logistics business rather than simply expand conventional freight services.

Nippon Express Already Works With Tata Electronics

Nippon Express is already working with semiconductor manufacturers in India, including Tata Electronics.

Kobayashi described Tata Electronics as an important partner and said the company wants to work with Indian businesses to develop semiconductor logistics capabilities in the country. 

As more semiconductor projects progress from construction to production, Nippon Express expects demand for transportation, warehousing and factory-delivery services to increase.

This could include logistics for semiconductor manufacturing equipment as well as components and other specialised materials.

Dholera Becomes a Key Logistics Hub

Nippon Express has secured land in Dholera, Gujarat, where it plans to establish warehousing infrastructure to support semiconductor fabs.

The company is not limiting its India strategy to Dholera, however.

Kobayashi said Nippon Express is also evaluating opportunities in other Indian states as semiconductor and manufacturing activity develops in different parts of the country. 

The approach reflects the geographical challenge of India's industrial expansion: a successful logistics network will need to connect multiple manufacturing clusters rather than rely on a single location.

Nippon Express Signs MoU With India Semiconductor Mission

At SEMICON India 2026, Nippon Express and the India Semiconductor Mission (ISM) signed a memorandum of understanding focused on semiconductor logistics.

Under the agreement, the two organisations will exchange information and discuss areas including:

• Semiconductor logistics requirements

• Logistics infrastructure

• Warehousing

• Supply-chain resilience

• Challenges associated with semiconductor manufacturing logistics

The collaboration is intended to help identify logistical bottlenecks as India develops an ecosystem connecting fabs, suppliers, logistics companies and global markets. 

What Semiconductor Logistics Involves

Semiconductor logistics is considerably more specialised than conventional freight transportation.

Nippon Express provides an end-to-end service covering:

Logistics AreaServicesInternational freightAir and ocean transportationCustomsCustoms clearance and documentationWarehousingStorage of equipment and componentsDomestic transportMovement between ports, warehouses and factoriesFactory deliveryDelivery directly to manufacturing facilitiesInstallation supportAssistance with equipment movement and installationOutbound logisticsTransportation of finished equipment and materials

For sensitive semiconductor equipment, the company also provides transportation designed to control vibration and shock, along with temperature and humidity management and cleanroom delivery. 

Why Semiconductor Equipment Needs Special Handling

Semiconductor manufacturing equipment can be extremely expensive and technically sensitive.

Equipment used inside fabs may require carefully controlled transportation conditions. Even relatively small amounts of vibration or shock can potentially affect precision machinery.

Similarly, semiconductor manufacturing environments require strict controls over contamination and environmental conditions.

This makes logistics an important part of the semiconductor manufacturing ecosystem.

For India, developing specialised logistics capabilities could therefore help reduce delays and risks associated with importing, transporting and installing advanced semiconductor equipment.

India’s Infrastructure Development Will Matter

Nippon Express believes improving infrastructure will be important to the success of its India expansion.

Better highways, ports, airports, industrial parks and specialised manufacturing facilities can reduce transportation times and improve supply-chain reliability.

However, semiconductor logistics can require more than conventional infrastructure.

Companies may also need:

• Specialised warehouses

• Cleanroom-compatible facilities

• Controlled transportation

• Reliable power and environmental systems

• Customs expertise

• Skilled logistics personnel

• Strong connections between ports and industrial clusters

The development of these capabilities will influence how efficiently India's semiconductor industry can scale.

Government Support Could Help Accelerate Expansion

Kobayashi said government support is an important factor in Nippon Express's India plans.

The company expects improvements in infrastructure and policy support to make it easier to transfer its international experience to the Indian market.

This is particularly relevant for semiconductors because the sector involves complex supply chains spanning manufacturers, equipment companies, chemical suppliers, logistics providers and technology partners.

Coordination between these participants can reduce bottlenecks as new fabs and related facilities become operational. 

Nippon Express Wants to Use Its Global Network

Nippon Express also intends to leverage its international network to support India's semiconductor industry.

The group has operations and partnerships across countries including Japan, Taiwan, the United States and other parts of Asia.

This international footprint could allow the company to connect Indian semiconductor manufacturers with suppliers and customers in other markets.

For example, equipment manufactured or supplied from East Asia could be transported to Indian fabs, while products or components manufactured in India could eventually move into global supply chains.

India Fits Into a Broader Indian Ocean Strategy

India is also important to Nippon Express's broader Indian Ocean Rim strategy.

The company has established an Indian Ocean Rim Strategy Office in Mumbai and has set a target of approximately JPY 80 billion, or around $500 million, in revenue across the Indian Ocean Rim region by fiscal 2028. 

India's growing manufacturing base makes it a central part of this regional strategy.

The expansion of semiconductor manufacturing could further strengthen India's role within the company's wider regional logistics network.

Nippon Express Sees More Than Just Warehousing

Although the company has secured land for warehousing in Dholera, its India semiconductor strategy is broader than simply providing storage space.

The company wants to provide end-to-end logistics support covering the movement of equipment from international suppliers to Indian manufacturing facilities.

That could include:

Global supplier → Port/Airport → Customs → Specialised warehouse → Controlled transportation → Semiconductor fab → Installation

Such integrated logistics could become increasingly important as the number of semiconductor projects in India grows.

ISM Sees Nippon Express as a Knowledge Partner

The relationship between Nippon Express and the India Semiconductor Mission is also intended to involve knowledge sharing.

ISM CEO Amitesh Kumar Sinha described Nippon Express as a knowledge partner that could advise on infrastructure, warehousing and other logistics requirements for the semiconductor ecosystem. 

This means the company's role could extend beyond commercial logistics services.

Its international experience may also be used to help identify logistical requirements before new semiconductor facilities become operational.

Logistics and Customs Could Become Critical Bottlenecks

As India's semiconductor ecosystem develops, logistics and customs processes could become increasingly important.

Semiconductor manufacturing depends on a continuous flow of equipment, components and specialised materials.

Delays at ports, customs or transportation stages could affect construction schedules, equipment installation or manufacturing operations.

India's ability to create predictable logistics processes will therefore be important for attracting companies and integrating the country's semiconductor industry with global supply chains.

Nippon Express's India Growth Strategy

The company's India strategy can be broadly divided into several areas:

Focus AreaStrategyRevenueTarget $380 million India revenue by 2028GrowthTriple India business compared with 2023SemiconductorsSupport fabs and semiconductor manufacturersInfrastructureBuild specialised warehousingDholeraDevelop a semiconductor-focused logistics facilityExpansionExplore opportunities in other Indian statesPartnershipsWork with Tata Electronics and other manufacturersGovernmentCollaborate with India Semiconductor MissionGlobal networkConnect Indian operations with Japan, Taiwan, US and Asian markets

Why India's Scale Requires a Different Approach

India's size means a logistics strategy that works in one industrial cluster may not automatically work elsewhere.

Manufacturing activity is spread across different states, while infrastructure quality and supply-chain requirements can vary.

For Nippon Express, this means building a network that can adapt to regional differences while maintaining consistent international standards.

The company therefore expects collaboration with customers and government authorities to remain important as it expands.

What Could Drive the Next Phase of Growth?

Several factors could influence whether Nippon Express reaches its 2028 target.

Semiconductor Manufacturing

The speed at which India's announced semiconductor fabs and related facilities become operational will directly influence demand for specialised logistics.

Industrial Expansion

Growth in electronics, automotive, engineering and other manufacturing sectors could create additional logistics demand beyond semiconductors.

Infrastructure

Improved roads, ports, airports and industrial infrastructure could make nationwide logistics operations more efficient.

Supplier Ecosystem

The emergence of local semiconductor equipment and component suppliers could create additional domestic logistics requirements.

Government Support

Policy incentives and infrastructure investment could influence the pace of India's manufacturing expansion.

The Bigger Picture for India's Logistics Industry

Nippon Express's expansion reflects a broader shift in India's logistics sector.

As manufacturing becomes more sophisticated, logistics providers increasingly need specialised capabilities rather than simply moving goods from one location to another.

Semiconductors are an extreme example because of their sensitivity and value, but similar requirements are emerging in areas such as electronics, electric vehicles, aerospace and advanced manufacturing.

This could create opportunities for logistics companies capable of handling high-value and technically sensitive products.

Bottom Line

Nippon Express Group is targeting threefold growth in its India business by the end of 2028, with an India revenue target of around $380 million. The Japanese logistics company sees India's semiconductor expansion as a major opportunity and is already working with manufacturers including Tata Electronics. 

The company has secured land in Gujarat's Dholera for specialised warehousing and is evaluating opportunities in other states. Its memorandum of understanding with the India Semiconductor Mission is focused on logistics requirements, infrastructure and supply-chain resilience. 

But India's enormous size and regional diversity also present challenges. Nippon Express believes close cooperation with companies and government agencies, together with improved infrastructure, will be necessary to build an efficient nationwide logistics network.

As India attempts to establish itself as a semiconductor and advanced-manufacturing hub, specialised logistics could become an increasingly important part of the country's industrial ecosystem.