Deutsche Post DHL takes full control of Indian venture
Deutsche Post DHL has bought out the remaining 24% stake in its Indian joint venture from its partner, logistics company Lemuir Group. The acquisition for an undisclosed amount hands DHL full control of the firm, which is set to be renamed DHL Logistics Pvt Ltd.
“DHL and its heritage organisations have shared a long and fruitful association with the Lemuir Group for over 30 years through agency and joint ventures,” DHL Global Forwarding CEO (South Asia) Thomas Tieber said in a company release.
DHL said the stake buyout would build further on the company’s position in international freight forwarding, supply chain management and customs brokerage services in India.
DHL began operating its global forwarding activities in the subcontinent through an earlier joint venture involving Lemuir Group, DHL Danzas Lemuir Pvt Ltd, turning into the current joint venture in 2007, as a consequence of the German logistics giant’s takeover of US logistics firm Exel in late 2005.
As it looks for growth in the Indian freight market, DHL is already in the process of expanding its freight network in India with plans to increase the number of its retail centres in the country from around 400 to 1,000 in the next three to five years.
DHL believes expanding its retail access will help increase its share of the USD $550m domestic freight market, with the new centres operating as delivery and collection points. The expansion is being carried out in partnership with local operators, with partners set to open about 60% of the new centres.
