GeoPost may pick 10% in DTDC
Geopost of France may pick up 10% stake in Bangalore-based courier and express company DTDC, in which Anil Ambani-controlled Reliance Capital holds 40%.
Subhasish Chakraborty, chairman and managing director of DTDC, who along with his family, currently holds 60% and management control, is expected to dilute stake to 50%.
Mr Chakraborty told ET said he is in talks with a few international players for a tie-up. But he refused to divulge further details.
One of the three leading players in the domestic industry, DTDC is steadily increasing its foreign presence. It has already set up its own network in all Saarc countries, the US and the UK. Recently, it tied up with a Pakistani company ACB Care, and signed an agreement with the Chinese Kerry Logistics, to foray into two growing markets in terms of India’s bilateral trade.
GeoPost, wholly-owned by La Poste, the second largest postal operation in Europe, has forged alliances with some other giants in the international mail business, including the US Postal Service. The express and courier giant has a wide network spanning all continents, and has employed a unique tailor-made approach to international mail, parcel distribution and pricing alternatives.
DTDC now enjoys a network of 3,700 centres comprising franchisees and own offices, and clocked revenues of Rs 125 crore on standalone basis during last financial year, and Rs 250 crore cumulatively with franchisee revenues. DTDC now aims to grow to Rs 500 crore revenues by ’10.
Sources said DTDC is also looking at taking over small regional players to grow in the domestic market. It had initiated negotiations with Mumbai-based Speedage Express Cargo Services, but Speedage was subsequently taken over by TNT last week. Sources said DTDC would soon announce a few mergers that will propel the company into the top league in the domestic market.
In February, Reliance Capital had acquired 44% stake in DTDC for Rs 70 crore. “With retail sector booming, and web-based business and delivery picking up fast, the courier and express industry is expected to grow much faster than the current growth of 20%,” said Mr Chakraborty.
Like most other private companies that have struck a private equity deal, DTDC also plans to hit the primary market in next 2 years. “We do not have any immediate plans. But we would definitely look at listing our shares in next 2 years,” said Mr Chakraborty.
