Indian and Chinese express firms link up in alliance

Two leading independent express firms in the fast-growing Indian and Chinese markets, DTDC and Kerry Logistics, have linked up in an alliance to offer direct services. DTDC, boosted by a financially-strong new shareholder, is also reportedly eyeing acquisitions to increase its market share.

Under a recently-signed agreement, the two companies are due to start offering express services between India and China from September 1 onwards, a number of Indian newspapers reported.

“We have signed a service agreement with Hong Kong-headquartered Kerry Logistics, who will be our service partner there,” Subhasish Chakraborty, DTDC majority owner and chairman, told journalists at a meeting in Goa. This was the first direct Indian-Chinese express cooperation as opposed to a cooperation arrangement through multinational operators, he pointed out. The Bangalore-based company, which already has branches in South Asia, the Middle East, the UK and the USA, is particularly targeting Chinese exports to India.

Chakraborty also said that DTDC is interested in acquiring companies, mostly smaller regional and local operators, to increase its position in the Indian express market. The company recently received a financial boost with the acquisition of a 40% holding by Reliance Capital, part of the Anil Ambani business group.

DTDC is the largest competitor to DHL-owned Blue Dart Express and India Post (EMS) in the domestic sector, according to a new “CEP Market Fact Sheet India” produced by CEP-Research.

Kerry Logistics is the parent company of Kerry EAS, one of the larger independent carriers in the domestic Chinese express market with about 100 branches.