FedEx is to buy the logistics, distribution and express businesses of AFL Pvt and its affiliate,Unifreight India Pvt. It said the acquisition would give FedEx “a more robust domestic ground
network and added capabilities in India”.A privately owned company, founded in 1945, AFL’s business includes a range of distribution andlogistics services across India. The acquisition includes the purchase of: AFL Logistics andDistribution, which provides services including supply chain management, warehousing, and a grounddistribution network that provides day-definite ground transportat for small packages andheavyweight shipments through more than 200 daily scheduled routes; and AFL WiZ Express, whichoffers express services through more than 160 express service centres, servicing more than fivethousand zip codes across 144 cities in India.
Michael Ducker, COO of FedEx Express, said: “The acquisition supports our long-termstrategy to grow our international business and better serve our customers seeking to expand orenter the Indian market. This will provide customers with more service options such as domesticground and value-added services, including warehousing, logistics solutions and third partylogistics, while allowing them to take advantage of an increased coverage area.”
Cyrus Guzder, chairman of AFL, said: “This transaction provides AFL with an opportunity to offerits customers an enhanced level of service, new service offerings and the adoption of global bestpractices in its core businesses of air express delivery and ground distribution. While ourextensive network and logistics infrastructure will enable FedEx to deepen its penetration of theIndian market, I believe AFL’s customers will be excited by the prospects of AFL’s service offeringbeing strengthened under the leadership of a global leader in express delivery and transportation.AFL’s employees will also greatly benefit from joining the global family of one of the world’s mostadmired employers.”
FedEx expects that the transaction, which is subject to customary closing conditions, will closein its third fiscal quarter, which ends in February 2011. After the acquisition closes, Guzder willassume the role of Executive Advisor to FedEx.
No-one at UPS was available to comment.
UPS Jetair Express, the UPS joint venture in India, launched a strategic cooperation with AFL atthe start of 2008, under which AFL Wiz marketed UPS services through its 200 sales offices acrossIndia, and handled pick-ups and deliveries of UPS international shipments in locations where UPSJetair Express was not present. UPS was also rumoured to be in talks to buy AFL in 2008, althoughthis was never confirmed.
