Tag: India

FedEx buys out local franchisee for USD30 mn

Posted by | Nov 3, 2006 | |

This marks the direct entry of the USD33 billion FedEx, which has nearly 275,000 employees and 670 aircraft worldwide.Mumbai-based Prakash Air Freight Pvt Ltd, a privately held company, is one of the largest domestic companies in the industry with 384 offices serving nearly 4,400 destinations.

The two key promoters of Prakash Air Freight Pvt Ltd, Rajan K Manchanda and Vijay Narang, could not be reached for comments on their decision to cash out.FedEx applied to the Foreign Investment Promotion Board about two weeks ago for permission to undertake the acquisition.

After 22 years of operating in India through a franchisee, FedEx Corporation, the world’s largest express transportation company, has decided to acquire Prakash Air Freight Pvt Ltd, its sole franchisee in the country, for USD30 million in cash.

Sources said the deal, subject to the usual mandatory approvals, could be concluded in two weeks.

This acquisition comes close on the heels of TNT NV acquiring the Secunderabad-based road express company Speedage Express Cargo Services from Associated Road Carriers India for an undisclosed amount in September. Speedage posted a turnover of Ï17 million in 2005-06 (nearly Rs 100 crore).

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Bill of worries

Posted by | Oct 18, 2006 | |

Small and medium-sized courier companies have been gearing up to meet the challenges thrown up by the amendments to the Postal Bill that are likely to be presented in the forthcoming winter session of parliament.

The India Post Amendment Bill, ’06 seeks to give India Posts (the new name of your neighbourhood post office) exclusive rights to carry and deliver letters weighing up to 300 gms, putting such letters out of the reach of the private courier companies.

Given that the letters are a mainstay of the courier business, the private courier operators, most of them small and medium enterprises (SMEs), are forced to look at other alternative avenues in order to stay afloat.

Experts believe that a direct offshoot of the amendments in the regulation would be a radical shift of express players into the cargo transportation segment. “Express players already have the network in place, so it will be most natural for them to leverage on that and set up a cargo operations business,” said an industry expert.

However, this is easier said than done. “The shift is not going to be an easy one, as these SMEs would not have the requisite resources to invest in technology, warehousing and infrastructure, which are the core essentials of any efficient cargo operation business,” added the industry expert.

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Postal services must face challenges from private players

Posted by | Oct 17, 2006 | |

Chief Post Master General (PMG) of Maharasthra and Goa, K NoorJehan said that the postal department needs to focus its energy in building a strong consumer base, in the face of tough competition from unregulated players such as the courier servcies. She was addressing members of the staff, after the Secretary, Government of India, Director General, Department of Posts and Chairman, Postal Services Board, Jyotsna Diesh, dedicated a new EMS Speed Post Centre, near Santacruz Airport on the western suburbs today.

On the occasion, Diesh said that Mumbai being the financial nerve centre of the country, it was important for the department to create a seperate space for speed post sevrices, which finally took shape.

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Kerry Logistics expanding their network to India

Posted by | Oct 17, 2006 | |

Following the expansion in Central Europe in September, Kerry Logistics (hereafter called “KL”) has just acquired 51% share of Reliable Freight Forwarders Pvt Ltd (hereafter called “RFF”) in India and will be renamed as “Kerry Reliable Logistics Pvt Ltd. “.

Established in 1996, RFF is an Indian-based freight forwarding company. On top of the head office located at Chennai, RFF has 5 branch offices in New Delhi, Bangalore, Mumbai, Tirupur and Tuticorin. Riding on its solid foundation, RFF offers value-adding supply chain management solutions and provides comprehensive logistics services in India, including international sea and air freight forwarding, local transportation with self-operated trucking fleets, inland container depots, container freight stations, shipping agency, contract and project logistics.

China and India have been identified by the global economists as the “Asia Power Houses” in the recent years. Kerry Logistics has already established a comprehensive Pan-China Network with 120 self-owned offices and over 100 cargo facilities in Mainland China. With the new venture in India, KL’s Asian network is further strengthened for empowering their global/regional customers to rise to the challenges of their supply chain in Asia.

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