FedEx completes integration of Indian acquisitions
FedEx has said it has now fully integrated two businesses it acquired in India to strengthen its domestic delivery and logistics services in the subcontinent. The company acquired the logistics, distribution and express businesses of AFL Pvt Ltd (AFL) and affiliate business Unifreight India Pvt. Ltd (UFL) back in February 2011.
The acquisition included AFL WiZ Express, which offered domestic express services through more than 150 Express Service Centres in 144 cities, with more than 1,000 couriers across India.
The company said this week that it has now successfully integrated the businesses, so that it can offer end-to-end logistics services, including international and domestic air express services, domestic ground services, warehousing and supply chain services.
Coverage has been expanded from 4,000 postal codes to more than 19,000, with a fleet of more than 1,000 trucks connecting cities across India.
The company has expanded its office and hub space from 300,000 square feet to more than a million.
FedEx said its domestic ground services are supporting high volume shippers including e-commerce firms, with “robust” web integration so that orders can be processed more quickly. Customers can monitor incoming and outgoing packages, get status notifications and near real-time tracking, the firm said.
“Mega-demand”
David Canavan, vice president, Operations, FedEx Express India, said within a decade, India is expected to have 18 “mega-demand” cities with a GDP surpassing $20bn.
He said: “The internet is also propelling small towns such as Guntur in Andhra Pradesh or Choryasi in Gujarat, into the league of top rural hubs for eCommerce in India. This is why we have expanded our network to over 90% of India’s manufacturing GDP, thereby providing seamless access to Indian businesses with diverse logistics needs.”
As well as making e-commerce firms “future ready”, FedEx said it was offering a competitive advantage to other industries with complex supply chain requirements, including the high-tech industry, retailers, medical equipment and consumer durable firms.
“Increasingly, the success of modern retail chains, hi-tech industries or booming eCommerce sites depends on the efficiencies and intelligence of their supply chain. Innovative services such as cash on delivery, repair-and-return, pick and pack and returns management are critical. Our successful integration places us in a formidable position to meet all of these logistics requirements,” said Canavan.
