Apple is planning on opening a new distribution center in India to consolidate its supply chain and logistics in the country, according to a new report from The Economic Times. The distribution center will be Apple’s first in the country, as the tech giant works to establish a retail presence in India.
The distribution center is planned for the town of Bhiwandi, on the outskirts of Mumbai, India‘s largest city. It will be owned by Apple’s global logistics partner DB Schenker, one of Europe’s largest logistics companies.
A new distribution centre would ensure that supplies of its flagship products, such as iPhones, don’t run out in the future, ensuring their availability in retail stores. In October, the stock for iPhone 7 and iPhone 7 Plus ran out well before it could meet the incredible worldwide demand.
“The distribution center will allow Apple to stock its products adequately, will ease operations and streamline its logistics and supply chains,” said the sources. “It will also help in maintaining uniform price for its products, which will become much easier under the Goods and Services Tax regime.”
Presently, Apple products arrive in India through major cities like Mumbai, Delhi and Bangalore from where they are directly dispatched from the airport to the distributors.