Nippon Express to buy stake in Indian firm to expand local network
NEW DELHI, NNA - Japan's largest logistics firm Nippon Express Co. will acquire a 22 percent stake in a logistics arm of India's largest retail conglomerate, Future Group, to broaden its customer base.
Nippon Express said on Friday its Singaporean subsidiary, Nippon Express (South Asia & Oceania) Pte. Ltd., will obtain the stake in Mumbai-listed Future Supply Chain Solutions Ltd. for about 9.9 billion yen ($92 million) in January.
Through the share acquisition, the Tokyo-based firm said it aims to cash in on growing transport demand in India, where road infrastructure is being developed, and private consumption is on the rise, keeping pace with the growing number of middle-income households.
Future Supply Chain Solutions offers various third-party services, including express cargo and temperature-controlled logistics in India.
It has 96 operational bases, and a combined warehouse space of 772,000 square meters, according to Nippon Express.
Nippon Express entered the Indian market in 2007 and strengthened its foothold through its international forwarding service arm Nippon Express (India) Pvt. Ltd. and automotive transport service provider Nittsu Logistics (India) Pvt. Ltd. (NNA/Kyodo)