One of India’s largest road logistics firms, Gati, has joined forces with state-run Indian Airlinesto launch IC-Zipp, a new air courier, raising the stakes in the battle with foreign couriers for
the sub-continents’s growing express market.The joint venture will provide synergy between the country’s largest air and surface networksand is initially being launched in 119 cities nationwide.
IC-Zipp will offer door-to-door pick-up and delivery, real-time tracking and 24-hour service,said the companies. Initial pricing will be aggressive at 50-150 Rupees (EUR 0.90-2.70) for 500gitems.
The companies have worked together for 11 years, but Mahendra Agarwal, Gati CEO, confirmedthe corporate consolidation of their working relationship as “an extension where both the brandshave joined hands to set up a network for courier business.”
Indian Airlines commercial director Anita Khurana commented to Indian journalists: “Amid arobust trade and business growth environment, companies can now seamlessly access the networks oftwo market leaders.”
“Whether it’s a business proposal, signed contracts, mass mails, print proofs, small packagesor architectural drawings, customers can rely on our extensive network to get courier delivered ontime,” Khurana added.
Indian Airlines covers 72 destinations in 15 countries, with a fleet of 74 aircraft and 325flights a day, while Gati has delivery capability in 594 out of 602 districts in India.
The companies are also in talks with India Post about a possible wider tie-up later thisyear. India Post said in February it was leasing a freighter from IA to begin its own air expressoperations this month.
Foreign couriers are investing heavily in India, offering stiff competition to the domesticpartners.
TNT is building a EUR 100 million network of domestic air and road express services in Indiaand considering operating its own cargo flights to and from Europe.
FedEx completed the $30 million acquisition earlier this year of its Indian service partnerPafex and upgraded India into a new, sixth world region.
Meanwhile, UPS is planning to open 150 retail stores by 2011 and DHL Express is fastexpanding its infrastructure across the country, building new facilities and equipping them withlatest technology.
