NEW DELHI: FedEx Express India, a subsidiary of the world’s largest express transportation company, and India’s logistics major Delhivery have entered into equity and commercial agreements to “utilise their combined strengths to unlock India’s international trade potential.”
FedEx will invest $100 million in Delhivery and the companies will enter into a long-term commercial agreement.
FedEx Express will focus on international export and import services to and from India, and Delhivery will, in addition to FedEx, sell FedEx Express international products and services in the India market and provide pick-up and delivery services across India. FedEx will transfer certain assets pertaining to its domestic business in India to Delhivery.
“India is a strategic priority for FedEx. This strategic alliance will support our long-term vision to grow our India business and serve customers seeking to expand in or enter the Indian market, as well as provide opportunities to develop product and technology solutions together with Delhivery for the benefit of our customers” said Raj Subramaniam, FedEx Corp president and COO.
Sahil Barua, Delhivery co-founder and CEO, said, “We are excited to partner with FedEx and look forward to the synergies created between Delhivery’s capabilities in India and FedEx’s global network. Our aim is to bring new products and opportunities to Indian and global businesses and consumers through unique access to our networks, and our technology and engineering capabilities.”
Don Colleran, president and CEO of FedEx Express, will be nominated to join the Delhivery board of directors.
“This transaction combines the FedEx global network with Delhivery’s extensive pan-India network and technology solutions to bring the best of both worlds together. The investment and the commercial agreement between the two companies deepens the FedEx commitment to the India market, and signals a significant step in providing innovative services and solutions that aim to improve speed, efficiency, and access for FedEx and Delhivery customers,” Fedex said in a statement.
