Soilmec, the Italy-based market leader in ground engineering machines, begins using Arshiya's Mumbai FTWZ as their import and re-export hub.

Arshiya International, an integrated supply chain and logistics infrastructure solutions company, has executed a contract with Soilmec India, a subsidiary of Italian-based leader in design, manufacture, and distribution of equipment for the ground engineering industry for making Arshiya's first FTWZ in Panvel, near Mumbai, as its regional distribution hub.  
As per the deal, Soilmec will be utilising Arshiya's Mumbai FTWZ for importing large-sized machines such as large diameter piles, cranes, hydromill, grabs and microdrilling equipment, as well as the spare parts required to service these heavy engineering machines. These products will be imported from international markets and warehoused in dismantled format at the FTWZ. Soilmec will be scaling its business operations in India which is one of the key markets for these heavy equipment along with re-exports to regions such as Bangladesh. Soilmec equipment are used in building bridges, motorways, tunnels, underground lines, railways and various other construction activities.

The Free Trade and Warehousing Zone (FTWZ) Scheme in India was introduced under Chapter 7A of the Foreign Trade Policy 2004-09 to create trade related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency, aimed at making India into a global trading hub.

FTWZ is a special category of Special Economic Zone (SEZ) and is governed by the provisions of the SEZ Act, 2005 and the SEZ Rules, 2006. Since the policy has been formed, Arshiya International, an integrated supply chain and logistics infrastructure solu?tions company, has invested in creating five such FTWZs pan-India, with the first of its FTWZ infrastructure spanning 165 acre in Panvel ope?rational since late last year.

Says Sanjoy Chakrabarty, Managing Director of Soilmec India, "The Indian marketplace is robust with infrastructure development and such an FTWZ provides us with the flexibility to serve the market just in time and reduce long lead times that become impediments to our business. The state-of-the-art FTWZ that Arshiya has developed along with its integrated services bring us the right mix to capitalise on the opportunity available in India and we look forward to this zone allowing us to serve the Indian customers better with our products."

Commenting on the occasion, Ajay S Mittal, Chairman and Managing Director of Arshiya International said, "Infrastructure development in all aspects of India's economy is one of the most important variables in sustaining growth in the economy. Thus, there is a huge market in India itself for advanced technology heavy engineering products provided by world-class companies such as Soilmec. FTWZ will be a game-changer for Soilmec as it will provide its flexibility to import equipment duty deferred in the zone, warehouse it for extended period and exhibit it to customers before final sale, either in India or nearby regions reducing the sales lead time considerably".