Nippon Express to acquire 22pc stake in India's Future Supply Chain Solutions
JAPAN's Nippon Express is to purchase a 22 per cent stake in Mumbai-headquartered Future Supply Chain Solutions (FSC), to pave the way for the partners to explore business opportunities in India's rapidly expanding third-party logistics (3PL) and express logistics sectors
JAPAN's Nippon Express is to purchase a 22 per cent stake in Mumbai-headquartered Future Supply Chain Solutions (FSC), to pave the way for the partners to explore business opportunities in India's rapidly expanding third-party logistics (3PL) and express logistics sectors.
Nippon Express said in a statement that a key aspect of its 'core strategy' is to focus on strengthening its India business to tap the 'rapid growth' expected in the Indian logistics market, reported London's Air Cargo News.
It said: 'The Indian logistics market is expected to have significant growth driven by key factors like modernisation of the road infrastructure network, reorganisation of traditional supply chain networks due to the implementation of goods and service tax (GST) and consumption growth driven by a fast-growing middle income group.'
FSC operates a pan-India distribution network, and offers integrated warehouse management systems with automated technology systems alongside a hub and spoke transport model comprising 13 hubs and 132 branches across India.
FSC operations are run through 94 distribution centres across India, covering 8.3 million square feet of warehouse space.
The company's three main service areas are contract logistics, as well as express point-to-point, less-than truck-load, time-definite transport, plus cold-chain warehousing, transport and long-haul distribution of perishables.
FSC managing director Mayur Toshniwal said: 'We welcome Nippon Express, a highly respected logistics player globally, into the FSC family and are excited about the potential of this strategic partnership in creating a best in class supply chain service offering.
'Through this partnership, Nippon Express and FSC are well poised to derive significant synergies given their complementary skill sets and services offering, and gain a deeper foothold in the large and growing Indian logistics sector.'
Nippon Express first entered the Indian market in 2007 and currently focuses on international freight forwarding of cargo to and from India.