Can SGL’s customer-first culture win in India’s logistics race?

Danish freight forwarding company, Scan Global Logistics (SGL), has entered the Indian market with offices in Mumbai, Delhi and Chennai, making Mumbai its national headquarters. The company, founded in 1975 as Mahé Freight, has undergone major ownership changes, including a sale to AEA Investors in 2016 and CVC Capital Partners taking a majority stake in 2023.

Speaking at the press conference on 22 September 2025 during the announcement of India expansion, Vikash Agarwal, CEO of Scan Global Logistics India, announced the company’s rapid expansion plans. “We are already in three cities (Mumbai, Delhi and Chennai), and by the end of this year, we will be present in eight—adding Bengaluru, Hyderabad, Kolkata, Pune and Ahmedabad. Our Ahmedabad office is almost ready to open," he said. An official statement mentioned these operations will be led by a team of seasoned professionals with experience from leading firms including Maersk, CEVA Logistics, and Rhenus Logistics.

The expansion highlights SGL’s ambition to strengthen its presence in one of the world’s fastest-growing economies. Currently the fifth-largest economy, India is projected to become the second-largest by 2075, with purchasing power surpassing that of the United States. Against this backdrop, global logistics providers are moving quickly to capture opportunities arising from India’s expanding trade volumes and foreign investment inflows.

In an exclusive interview during the Mumbai office launch, Agarwal spotlighted the sectors driving logistics growth. “We’re witnessing a major surge in manufacturing, backed by substantial new investments,” he said. “Among the standout verticals, industry and engineering are gaining strong momentum. Pharma, retail, and renewable energy are also evolving rapidly. Renewables, in particular, both for domestic use and export, are performing exceptionally well.”

However, transporting renewable energy equipment poses unique challenges. Oversized cargo such as wind turbines demands strict protocols. “When handling such equipment, HSSE—Health, Safety, Security, and Environment—becomes paramount. Compliance, maintaining SOPs, and ensuring safety are essential. While the technical complexity of lifting and moving is expected, what often gets overlooked is the safety of the people involved, alongside protecting the cargo itself,” Agarwal explained.

“From both a policy and investment perspective, there is now a clear direction: India is positioning itself as a transshipment hub.”
Vikash Agarwal, Scan Global Logistics India

Looking beyond exports, Agarwal stressed India’s growing potential as a transshipment hub. “For years, India never truly focused on becoming a transshipment hub. But recent investments are changing that. Vizhinjam Port is emerging as a strong alternative to Colombo, and with further investments, Vadhavan Port will also become a hub. From both a policy and investment perspective, there is now a clear direction: India is positioning itself as a transshipment hub. Business that once moved through other countries can now be retained within India,” he said.

Why India? Why now?
For Allan Melgaard, Global CEO and Co-founder of Scan Global Logistics (SGL), India has always been on the roadmap—just not at any cost.

“Establishing a presence in India has always been a top priority for SGL. We wanted to enter the market with the right team—one that shares our purpose, customer-first mindset, and spirit of entrepreneurship. With that in place, we are confident this is the perfect time to begin our journey in India,” he said at the press conference.

SGL’s global ambition has been clear from the outset: to be present in the world’s top 25 economies. India, Melgaard noted, was one of the few missing pieces.

“We have worked successfully with partners in India for years, but we wanted to establish our own presence. We explored several acquisitions but stepped away because culture is essential for us. We firmly believe culture eats strategy for breakfast and lunch. You can have all the strategy in the world, but without the right culture, you won’t succeed. That’s why we wanted a team in India aligned with our global DNA,” he explained.

Navigating a crowded market
In an exclusive conversation with The Indian Transport and Logistics News (ITLN) at the formal launch of SGL in India earlier this week in Mumbai, Melgaard acknowledged India’s complexity and opportunity in equal measure. “We want to be relevant, and we aspire to be an employer of choice. India is a complex market with 22 official languages and more than 1,600 dialects—it’s almost like many countries in one. At the same time, it is already crowded with freight forwarders,” added Melgaard.

So how does SGL plan to differentiate itself? For Melgaard, the answer lies in staying relevant.

“India doesn’t differ much from other competitive markets. China also has a large number of forwarders, and Hong Kong, in a far smaller environment, has around 1,500. You can always navigate a crowded market if you are relevant,” he said.

That relevance, he stressed, comes from SGL’s people-first approach.

“We see ourselves as a truly customer-centric organisation. In a fast-changing environment, customers need someone who can navigate challenges on their behalf. That’s why we’ve consistently delivered double-digit growth over the past decade. We’ve embedded AI and digital tools into our systems, but at the end of the day, it’s people who make the difference. People understand the challenges and create solutions. Embedding that culture in India will allow us to grow faster here,” Melgaard said.

Trade shifts and regulatory challenges
Global trade shifts are adding new layers of complexity. With the US scrapping the de minimis exemption, customs processes have become tougher for exporters.

“We can translate all the challenges and opportunities for our customers—that’s the core of our role as a freight forwarder,” Melgaard noted.

Adding to this, the CEO of SGL India, highlighted the company’s local focus: “We are also looking to work with Indian MSMEs, especially in terms of customs clearance.”

He further pointed to the opportunities opening up through India’s expanding trade agreements:“With new FTAs (Free Trade Agreements) being signed and the government making efforts to navigate tariffs, new markets will open up for Indian exporters.”

Agarwal further clarified that while SGL is firmly focused on international freight forwarding, some services will evolve later.

“Establishing a presence in India has always been a top priority for SGL. We wanted to enter the market with the right team.”

Allan Melgaard, Scan Global Logistics

“In terms of parcel and express logistics and door-to-door delivery in India, we haven’t thought about it so far. But we already have that service in Europe, Canada, and parts of the US,” he said.

On contract logistics, he added, “We are not focusing on that right now, as it is more of a domestic fulfillment play. We are building up our capabilities, and once we have settled down, domestic fulfillment will be our next focus.”

India vs Bangladesh: Different roles in global trade
Agarwal also drew a comparison between India and Bangladesh’s trade positioning. Adding to this, Rickard Ingvarsson, CEO of Asia at Scan Global Logistics, noted, “We have recently also opened in Sri Lanka and Bangladesh, before India.” With these moves, SGL is positioning itself not just as a freight forwarder, but as a long-term partner in one of the world’s fastest-growing trade corridors.

“Bangladesh is one of the top textile exporters and with the new tariffs, they have an added advantage in exporting to the US. The new tariff rate for Bangladesh’s textile and apparel exports to the US is 20% (effective August 7, 2025), while for India it is 50%. India is playing a different role altogether—not competing on price, but focusing on technical textiles and value creation,” Agarwal explained.

The discussion on Bangladesh also ties back to India’s earlier role in facilitating its exports. In 2018, the Central Board of Indirect Taxes & Customs (CBIC), under the Ministry of Finance, launched a pilot project that enabled the transshipment of Bangladeshi export cargo to third countries. The initiative allowed shipments to move through the Petrapole land customs station to Indian sea ports in Kolkata and Nhava Sheva (Mumbai), as well as to Kolkata Airport, in containers.

As the project evolved, textile cargo from Bangladesh was also transported to Delhi Airport via road and rail before flying to its final destinations. This became a landmark in regional cross-border logistics, particularly as Bangladesh faced constraints in infrastructure and freighter capacity despite strong air cargo demand. Airlines like Atlas Air played a vital role, moving more than 100 tonnes of apparel per flight. With cargo consolidated at Delhi through multimodal connections, the model proved both cost-efficient and sustainable—benefitting shippers, airlines, and logistics providers alike.

However, this arrangement was recently discontinued after the Indian government prohibited the practice amid rising tensions in the India–Bangladesh conflict, forcing a relook at regional supply chain flows.

For Melgaard, the company’s India entry reflects a larger South Asia play. “Scale is critical unless you’re operating in a niche,” he emphasised.

India–Russia trade: Staying aligned with regulations
While India–Russia trade has been a talking point in logistics, SGL has made its stance clear. Melgaard said the company would not participate in this trade lane given its European roots.

“We follow the EU regulations and we follow the UN guidelines and other regulations. If things change and markets are not under such sanctions, or sanctions are lifted, then we will definitely look into that opportunity,” he explained.

Adding to this, Ragnar Dalen, Executive Vice President – Corporate Development at SGL, said intra-Asia transport is also under focus. “We are discussing road freight multimodal solutions within Asia—it is the biggest untapped tradeline in the world,” he noted.

Industry consolidation and competition
India, with its growing trade volumes and role as a global sourcing hub, was a natural next step for Scan Global Logistics. The company will provide end-to-end freight forwarding solutions in the country, with particular strengths in project logistics and humanitarian logistics. Globally, SGL employs over 5,100 people across more than 200 offices on six continents.

SGL’s entry into India is part of a broader global expansion drive. Over the past year, the Danish forwarder has completed a string of acquisitions, including Blu Brasil in Brazil, Foppiani Shipping & Logistics in Italy, and ITN Logistics in Canada. These moves reflect the rapid consolidation trend shaping the global forwarding industry.

The broader logistics and freight forwarding sector is undergoing rapid consolidation, with large-scale acquisitions reshaping the competitive landscape. The most significant example is DSV’s acquisition of DB Schenker, which has altered industry dynamics. According to an Armstrong & Associates annual ranking, DSV ranked as the third-largest global freight forwarder based on 2024 gross logistics revenue/turnover and freight forwarding volumes for both air and ocean, behind Kuehne+Nagel and DHL Supply Chain & Global Forwarding. DB Schenker followed in fourth place after DSV.

With the acquisition completed in April 2025, DSV is emerging as a freight forwarding superpower—set to surpass both Kuehne+Nagel and DHL individually and position itself as the new global market leader in terms of volume, revenue and rankings.

When asked about consolidation in the global forwarding space, Melgaard agreed that the industry is heading in that direction, referencing DSV’s acquisition of DB Schenker: “Yes, for sure,” he said, noting that more consolidation of forwarders can happen in the near future, creating super forwarders.

In India, however, SGL is carving out its own approach to competition. Agarwal explained, “We look at competition on two levels: global MNCs and strong regional players with established customer relationships. Our differentiator is not about outpricing or outscaling others, but about SGL’s customer-centric approach.”

Melgaard reinforced this position, saying: “We are not aiming to be the lowest-priced freight forwarder in the Indian market. We believe large SMEs actually need a voice that can support them globally—and with our scale, we can be that voice.”

According to the same rankings, SGL stands at rank 21 based on its 2024 gross logistics revenue/turnover and freight forwarding volumes.

Balancing growth with value

India is known as a cost-sensitive market, but Melgaard was clear about SGL’s positioning, “You want to be among the top three in logistics industry in terms of earnings to strike the right balance in a market like India while also improving the bottom line. We are not looking at customers whose only concern is the lowest price, be it in Shanghai or Los Angeles. We are looking at customers who need to add value.”

SGL’s growth trajectory reflects this strategy. “We will reach €2.8 billion by the end of this year, and our ambitious target of €5 billion by 2027 or 2028 is realistic. The plan combines strong organic growth with acquisitions,” Melgaard said.

In 2024, SGL reported €2.38 billion in revenue. In the first half of 2025, revenue increased by 24% to €1,263 million, while gross profit grew by 16% to €275 million. EBITDA before special items reached €94 million – up 13% – driven by higher volumes and effective utilisation of our network, although higher costs for integration and capacity building affected the conversion ratio.

He also mentioned that currently, 90% of SGL’s global volumes come from air and ocean freight, split almost evenly between the two (52% ocean and 48% air). Road and contract logistics account for the remaining 10%. Importantly, Melgaard stressed balance: “We also have a pretty even split between import and export volumes. That’s why we don’t rely on just one or two verticals like fashion or retail—we operate across all sectors.”

In terms of geography, SGL’s revenues are almost evenly distributed: the Americas, EMEA, and Asia–Pacific each contribute around 33%.

India’s technology edge
Digitalisation and AI are central to SGL’s global operations, and Agarwal sees major opportunities in India’s tech ecosystem.

“India has a strong start-up ecosystem with new technologies emerging rapidly. There is huge potential for supply chain service providers to partner with these platforms and take solutions global,” Agarwal said.

Melgaard added that while SGL is an asset-light forwarder, the company has invested in assets where necessary, such as automotive transport. He stressed that technology should support people: “We already use AI and other technologies, but at the end of the day, logistics is still a people’s business.”

Towards greener logistics
SGL is also investing in sustainability. Melgaard highlighted the company’s early adoption of electric trucks:

“We were among the first to implement e-trucks between Malaysia and Singapore. We’ve also invested in e-trucks in China and Europe, and we see this being transferred to the Indian market—provided customers are ready to embrace it.”

Multimodal solutions are also part of the shift towards greener operations. Agarwal explained:

“We are already seeing combinations of road, sea, and air transport, especially after Covid-19. More than cost-efficiency, this is about ESG. Instead of transporting everything by air—which burns more fuel and produces more carbon—if we can move shipments through less polluting modes, it makes a big impact. Customers are increasingly demanding this.”