Growth is about building a smarter network, not a bigger one: DTDC CEO Abhishek Chakraborty

India's logistics sector is entering a transformational phase, with technology, automation, and digital connectivity set to become the key differentiators, according to Abhishek Chakraborty, Chief Executive Officer of DTDC Express Ltd . In an exclusive interview with Fortune India, Chakraborty outlined the company's five-year strategy, saying DTDC is investing in AI, automation, and infrastructure to build a "smarter" logistics network while remaining open to a public listing at an appropriate time.

The company, which has over 16,500 customer access points, services more than 15,300 PIN codes, and connects to over 220 international destinations, is focusing on strengthening its hub-and-spoke network, expanding infrastructure, and deploying advanced technologies to improve operational efficiency and customer experience.

"The next phase of growth in logistics will not be driven by simply expanding networks, but by making them more intelligent," Chakraborty said, adding that the company's objective is to build a faster, more connected and resilient logistics network rather than merely increasing its size.

MSMEs to remain the biggest growth opportunity

While e-commerce, B2B logistics, international shipping and quick commerce all present significant opportunities, Chakraborty believes India's micro, small and medium enterprises (MSMEs) offer the largest long-term growth potential. "The biggest long-term opportunity lies in enabling India's MSMEs to participate in the rapidly growing digital economy," he said.

According to Chakraborty, DTDC is enabling businesses to join the digital economy through solutions such as its Self Onboarding portal, allowing enterprises to start shipping within minutes. International logistics is another strategic priority as more Indian companies expand overseas.

"Our strategy isn't to build for one segment. It's to create a flexible logistics network that grows with every form of commerce," he said.

Competing through technology and network reach

Amid intensifying competition from players such as Delhivery, Blue Dart, Ekart, and Xpressbees, Chakraborty said DTDC's strength lies in combining technology with one of India's largest physical logistics networks.

According to him, digital capabilities enhance shipment visibility, operational efficiency and customer experience, while the company's nationwide network continues to offer accessibility and trust, particularly for MSMEs and individual consumers.

"We believe the future belongs to companies that combine digital capabilities with strong physical infrastructure," he said.

Reliability now matters as much as price

Although India remains a value-conscious market, Chakraborty said customers increasingly prioritise reliability, transparency and convenience over the lowest price.

"Customers don't stay because you're the cheapest. They stay because you're the partner they trust when it matters most," he said, noting that consumers now expect greater visibility and certainty in deliveries.

E-commerce accounts for one-sixth of shipments

E-commerce remains an important growth engine for DTDC, contributing one in every six shipments handled by the company. However, Chakraborty said the company is pursuing a diversified business model spanning enterprise logistics, MSMEs, traditional businesses and cross-border commerce.

A balanced customer mix, he said, makes the company more resilient and better positioned to capitalise on multiple growth opportunities.

Quick commerce changing expectations, not business model

The CEO believes quick commerce has reshaped customer expectations around speed and convenience but has not fundamentally altered the express logistics business.

He clarified that DTDC is not looking to compete in hyperlocal deliveries. Instead, the company is focused on nationwide distribution, intercity logistics, fulfilment capabilities and cross-border commerce.

AI, automation at the core of transformation

Technology remains central to DTDC's transformation strategy. The company is deploying artificial intelligence, automation and analytics to improve planning, operational visibility and delivery efficiency.

One of its flagship initiatives is DIVA, South Asia's first multilingual AI-powered logistics voice assistant, which supports customers and channel partners in 17 Indian languages and handles over 150,000 conversations every month.

DTDC has also implemented technologies such as Sort Assist and Dimensioning, Weighing and Scanning (DWS) systems to improve sorting accuracy, throughput and overall network efficiency. "Our philosophy is simple. Technology should augment people, not replace them," Chakraborty said.

Automation and sustainability remain long-term priorities

The company is also investing in automated sorting, intelligent material handling and advanced scanning technologies to improve scalability and operational efficiency as shipment volumes increase.

On sustainability, Chakraborty said DTDC is focusing on reducing emissions through route optimisation, improved asset utilisation and technology-driven operations rather than treating sustainability as a standalone initiative.

IPO plans remain open

On the possibility of a public listing, Chakraborty said DTDC remains open to evaluating all capital-raising options, including an initial public offering, when the timing aligns with the company's long-term strategy.

"As we pursue our growth ambitions, we remain open to evaluating all capital-raising options, including a potential public listing, at the appropriate time," he said.

Logistics sector poised for strong growth

Looking ahead, Chakraborty expects India's logistics industry to benefit from higher infrastructure spending, digital transformation, manufacturing growth and rising exports.

He believes logistics will increasingly evolve from a cost centre into a strategic competitive advantage, with companies investing in technology, operational excellence and scalable infrastructure emerging as long-term winners.