Tag: India

DTDC at centre of Indian consolidation speculation

Posted by | Sep 11, 2006 | |

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.

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India Post launches logistics service

Posted by | Sep 8, 2006 | |

India Post has launched “Logistics Post Service” between Coimbatore and Chennai on Thursday and plans to start the service between Tirupur and Tuticorin shortly. According to the Postmaster General, western region, K. V. Sundar Rajan, the Coimbatore-Chennai-Coimbatore service will also connect Tirupur, Erode, Villupuram, Tindivanam and Chengalpattu. Salem will be covered soon.
Mr. Rajan explained that cargo could be booked in these places apart from Coimbatore.
The weight of the cargo should be minimum 50 kg. The department offered free pick-up and delivery and loading and unloading of cargo. It also offered credit facility by Book-Now-Pay-Later scheme as value-added service.
Launching the overnight cargo service, he said that Logistic Post Centres were started at Red Fields Post Office (Trichy Road, Coimbatore), Tirupur RMS (Tirupur) and Karungalpalayam Post Office (Erode district). The service was already available from Chennai to Tiruchi, Chennai to Madurai and Chennai to Pondicherry.
The service was started between Hosur and Chennai last year and then extended to Bangalore. The response was encouraging especially in Hosur and Ambur.

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GeoPost may pick 10% in DTDC

Posted by | Sep 7, 2006 | |

Geopost of France may pick up 10% stake in Bangalore-based courier and express company DTDC, in which Anil Ambani-controlled Reliance Capital holds 40%.

Subhasish Chakraborty, chairman and managing director of DTDC, who along with his family, currently holds 60% and management control, is expected to dilute stake to 50%.

Mr Chakraborty told ET said he is in talks with a few international players for a tie-up. But he refused to divulge further details.

One of the three leading players in the domestic industry, DTDC is steadily increasing its foreign presence. It has already set up its own network in all Saarc countries, the US and the UK. Recently, it tied up with a Pakistani company ACB Care, and signed an agreement with the Chinese Kerry Logistics, to foray into two growing markets in terms of India’s bilateral trade.

DTDC now enjoys a network of 3,700 centres comprising franchisees and own offices, and clocked revenues of Rs 125 crore on standalone basis during last financial year, and Rs 250 crore cumulatively with franchisee revenues. DTDC now aims to grow to Rs 500 crore revenues by ’10.

Sources said DTDC is also looking at taking over small regional players to grow in the domestic market. It had initiated negotiations with Mumbai-based Speedage Express Cargo Services, but Speedage was subsequently taken over by TNT last week. Sources said DTDC would soon announce a few mergers that will propel the company into the top league in the domestic market.

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Teleservice centre at post office

Posted by | Sep 1, 2006 | |

The Department of Posts inaugurated its new teleservice centre at Bangalore General Post Office here on Thursday. The centre, touted to be the first of its kind in India, will act as the nodal office for various new services offered and pioneered by the Karnataka Circle. S. Ramaganapathy, Chief General Manager (Telecom), Bharath Sanchar Nigam Limited (BSNL), inaugurated the services for address verification and e-payments offered by the centre.

Telecom Regulatory Authority of India regulations stipulated that all telephone service providers should verify customer addresses for authorising a connection, he said. “In BSNL, we have outsourced the address verification service to the Department of Posts, considering its experience in leveraging its resources,” he said.

The address verification service is being offered by the postal department to telecom companies, banks, and credit card companies, among other organisations which require address verification.

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TNT acquires Speedage to build leading position in domestic express market in India

Posted by | Sep 1, 2006 | |

TNT N.V. today announced the acquisition of ARC India Limited which operates under the trade name Speedage Express Cargo Services, one of the leading road express companies in India.

This acquisition is a key component of TNT’s Focus on Networks strategy as announced in December 2005. Acquiring Speedage is in line with TNT’s strategic objective to become the leading provider of express deliveries in the emerging markets in Asia, specifically India. Combining Speedage’s strong domestic road network with TNT’s international and domestic networks will form a powerful platform for further expansion in the fast growing Indian express market.

TNT will gain a top 3 position in the fast growing Indian domestic road express market with the acquisition of Speedage. The combined revenues for TNT in India after this acquisition will be approaching Euro 100 million in 2007.

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