Two leading independent express firms in the fast-growing Indian and Chinese markets, DTDC andKerry Logistics, have linked up in an alliance to offer direct services. DTDC, boosted by a
financially-strong new shareholder, is also reportedly eyeing acquisitions to increase its marketshare.Under a recently-signed agreement, the two companies are due to start offering expressservices between India and China from September 1 onwards, a number of Indian newspapers reported.
“We have signed a service agreement with Hong Kong-headquartered Kerry Logistics, who will beour service partner there,” Subhasish Chakraborty, DTDC majority owner and chairman, toldjournalists at a meeting in Goa. This was the first direct Indian-Chinese express cooperation asopposed to a cooperation arrangement through multinational operators, he pointed out. TheBangalore-based company, which already has branches in South Asia, the Middle East, the UK and theUSA, is particularly targeting Chinese exports to India.
Chakraborty also said that DTDC is interested in acquiring companies, mostly smaller regionaland local operators, to increase its position in the Indian express market. The company recentlyreceived a financial boost with the acquisition of a 40% holding by Reliance Capital, part of theAnil Ambani business group.
DTDC is the largest competitor to DHL-owned Blue Dart Express and India Post (EMS) in thedomestic sector, according to a new “CEP Market Fact Sheet India” produced by CEP-Research.
Kerry Logistics is the parent company of Kerry EAS, one of the larger independent carriers inthe domestic Chinese express market with about 100 branches.
