DTDC at centre of Indian consolidation speculation
Indian parcels company DTDC is at the centre of speculation over the next phase of consolidation in the country’s express and parcels industry. DTDC is the third-largest domestic express and parcels operator in India according to the forthcoming “CEP Market Fact Sheet India” from CEP-Research.
The Economic Times newspaper has reported that GeoPost may acquire a 10% stake in the company in a transaction under which founder and majority owner Subhasish Chakraborty would reduce his holding from 60% to 50%. The newspaper quoted Chakraborty as saying that he is in talks with several international players but he declined to give any more details.
Financial investor Reliance Capital, part of the Anil Ambani Group, bought a 40% stake in the Bangalore-based company earlier this year, and Chakraborty has said in the past that he aims to grow through acquisitions. The company recently signed a cooperation deal with Hong Kong-based Kerry Logistics for India-China services.
The Economic Times also reported that Reliance Capital might attempt “a game-changing deal” by trying to buy cargo company Gati though DTDC. But Gati senior executives denied the company was up for sale, saying they were only considering selling a minority stake.
The fast-growing Indian express and parcels market is increasingly attracting foreign investment. DHL is set to take full control of its Indian subsidiary, Blue Dart Express, and TNT announced at the start of the month that it is buying road express company Speedage.
