UPS is in talks to acquire its Indian express partner AFL, according to a local newspaper report.But the report has been played down by UPS.
The Economics Times reported yesterday that UPS Jetair Express, the UPS joint venture inIndia, has been in negotiations with the Mumbai-based express and logistics company AFL for thepast few months. The takeover could be worth Rs 3 billion (€46.5 million), it wrote. UPS isinterested in buying both the AFL express business (AFL Wiz) and its separate logistics business(AFL Logistics), according to the newspaper.
But UPS Jetair Express denied any acquisition talks. “No, we have a strategic sales alliancewith AFL,” a spokesman told the newspaper.
The two companies launched a strategic cooperation at the start of 2008 under which AFL Wizmarkets UPS services through its 200 sales offices across India and handles pick-ups and deliveriesof UPS international shipments in locations where UPS Jetair Express is not present.
At the end of April, UPS India reported that its Q1 export volumes had increased by more than15%. “India is a priority market for us. We see the contribution of the SME’s increasing this yearacross various sectors. Also, the introduction of our new suite of services last quarter, inparticular, UPS Paperless Invoice and UPS Returns will play an important role in ensuring that ourcustomers benefit from critical time saving processes, resulting in higher growth prospects,” saidPirojshaw Sarkari, Managing Director, UPS Jetair Express Pvt. Ltd.
UPS is the only one of the four global express operators not to have made a significantacquisition in India in recent years. DHL bought a majority in domestic air express market leaderBlue Dart, TNT acquired road transport firm Speedage, and FedEx bought its local service partnerPafex.
