FedEx to invest Rs 740 crore in Gurgaon-based logistics and supply chain services provider; FedEx to transfer certain domestic business assets in India to Delhivery.
18 Jul 2021 | 13057 Views | By Autocar Pro News Desk
FedEx Express, a subsidiary of FedEx Corp and the world’s largest express transportation company, and India’s Delhivery, a leading logistics and supply chain services company, have entered into a partnership aimed to optimising gains in the logistics market.
FedEx Express India and Delhivery have entered into equity and commercial ...
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FedEx Express, a subsidiary of FedEx Corp and the world’s largest express transportation company, and India’s Delhivery, a leading logistics and supply chain services company, have entered into a partnership aimed to optimising gains in the logistics market.
FedEx Express India and Delhivery have entered into equity and commercial agreements that will utilise their combined strengths to unlock India’s international trade potential.
“India is a strategic priority for FedEx. This strategic alliance will support our long-term vision to grow our India business and serve customers seeking to expand in or enter the Indian market, as well as provide opportunities to develop product and technology solutions together with Delhivery for the benefit of our customers,” said Raj Subramaniam, President and Chief Operating Officer of FedEx Corp.
Commenting on the announcement, Sahil Barua, Co-founder, and Chief Executive Officer, Delhivery, said, “We are excited to partner with FedEx and look forward to the synergies created between Delhivery’s capabilities in India and FedEx’s global network. Our aim is to bring new products and opportunities to Indian and global businesses and consumers through unique access to our networks, and our technology and engineering capabilities.”
As part of the collaboration, FedEx will make a US$100 million (Rs 740 crore) equity investment in Delhivery, and the companies will enter into a long-term commercial agreement. FedEx Express will focus on international export and import services to and from India, and Delhivery will, in addition to FedEx, sell FedEx Express international products and services in the India market and provide pick-up and delivery services across India. FedEx will transfer certain assets pertaining to its domestic business in India to Delhivery.
Additionally, Don Colleran, President and CEO of FedEx Express will be nominated to join the Delhivery Board of Directors as a further sign of collaboration between the two companies.
This transaction combines the FedEx global network with Delhivery’s extensive pan-India network and technology solutions to bring the best of both worlds together. The investment and the commercial agreement between the two companies deepens the FedEx commitment to the India market, and signals a significant step in providing innovative services and solutions that aim to improve speed, efficiency, and access for FedEx and Delhivery customers.
Delhivery, which has an all-India network covering over 18,700 pincodes, provides a full suite of logistics services such as express parcel transportation, LTL and FTL freight, reverse logistics, cross-border, B2B and B2C warehousing, end-to-end supply chain services, and technology services. The New Delhi-based company has supplied over a billion shipments since inception and has a clientele of over 15,000, including large and small e-commerce participants, SMEs, and other enterprises and brands.