FedEx Express is expanding in India with the acquisition of its Indian service partner, Prakash AirFreight Pvt. Ltd. (PAFEX) for US$30 million, payable in cash. The deal is the latest in a series of
transactions in the fast-growing Indian express market.FedEx said that the transaction, which is subject to customary conditions including Indiangovernment approval, will further extend its leadership position in the global express industrywith a wholly-owned operation in one of the world’s fastest growing markets. FedEx Express, whichentered the Indian international express market in 1984, sees the country as a major growth market.It began the first overnight express service between India and China in 2005, and currentlyoperates 16 MD-11 weekly flights to and from the two gateways of Mumbai and Delhi.
PAFEX, a privately held company, is one of the largest domestic express companies operatingin India, with more than 384 offices and depots serving nearly 4,400 destinations. The nationwidenetwork covers every major city in India. PAFEX began domestic express operations in 1986 and hasbeen the FedEx service provider in India since 2002. Revenue and volume figures were not disclosed.
“This acquisition will solidify the FedEx leadership position within India. As a valued andtrusted Global Service Participant, bringing PAFEX operations within the company is the logicalnext step in the ongoing development of our Indian business,” said Robert W. Elliott, president ofFedEx Express, Europe, Middle East, Africa and Indian subcontinent.
“As one of the fastest growing economies in the world, India presents enormous opportunitiesfor our customers. With this acquisition, we would ensure continued outstanding customer servicethrough increased access for our customers doing business to and from India,” added Michael L.Ducker, president of FedEx Express International.
All the leading international express operators aim to develop their activities in India. DHLis buying full control of its air express subsidiary Blue Dart, and TNT has bought the road expressfirm Speedage under its EUR 100 million investment programme. Indian-owned companies such as FirstFlight, DTDC and Gati are also expanding their activities.
