Deutsche Post DHL to reduce stake in Blue Dart Express
Deutsche Post DHL has confirmed it will reduce its ownership in the Indian express company Blue Dart Express to allow the Indian state to up its stake to 25%. The German logistics giant currently owns 81.03% of the Mumbai-based company, but new rules from the Securities and Exchange Board of India require the company to be at least 25% public-owned from 3rd June 2013.
Blue Dart is currently 18.97% owned by public institutional investors.
DHL, which bought the majority share of Blue Dart back in 2005, wrote to its Indian subsidiary on Monday to confirm its decision to sell shares in Blue Dart to comply with the rules.
The DHL Express Senior Vice-President for Southeast Asia, Yasmin Aladad Khan, wrote to Anil Khanna, the Blue Dart managing director, to state that DHL Express will cut its ownership in Blue Dart as soon as regulatory approvals are made.
However, Khan said in her letter that DHL’s intention was to continue working with Blue Dart in the same way it has over the past few years.
“We expect this collaboration to continue unabated,” said Khan.
“There is strong trust between the Deutsche Post DHL and Blue Dart Express management teams and the relationship between the two companies will not be affected by the proposed reduction in Deutsche Post DHL’s stake in Blue Dart Express Ltd as the primary aim for such reduction is to ensure Blue Dart Express Ltd to comply with Indian regulations.”
“Two great companies”
Khan’s letter highlighted the continuing operation of Blue Dart Express services and their connection to DHL’s international air network, with Blue Dart picking up deliveries for DHL Express in close to 550 locations in mid-sized cities and towns across India.
She said the two companies are currently working together to develop “several industry leading offerings and innovations in India” including temperature-controlled logistics, carbon-neutral shipping products and the recent pilot of “SmartTrucks” – vehicles that have navigation systems allowing real-time responses to traffic congestion to optimise delivery routes.
“There is a lively exchange of best demonstrated practices in both directions that only serves to further strengthen these two great companies,” said Khan, adding that both DHL and Blue Dart were currently focusing on small and mid-sized companies, “one of the key drivers of the Indian economy”.
Blue Dart Express offers deliveries to 36,637 locations in India, connecting to 220 countries and territories around the world through DHL’s global network.
The company started up in 1983, and currently has a fleet of 7,300 vehicles and workforce of 7,944 staff. Last year it turned over INR 14.8bn ($264m).
