UPS has agreed a strategic alliance with Indian express company AFL with effect from January 1,2008, to expand its business in the country’s fast-growing express market, according to reports
from India today.The Business Standard newspaper reported that UPS Jetair Express, the joint venture betweenUPS and the Jetair group, has entered into a commercial alliance with AFL to expand accessibilityof UPS services in India while providing export capabilities to AFL.
The alliance will take effect on January 1, 2008, when all AFL WiZ Express centres across thecountry will promote UPS international express delivery service to customers in India, it reported.AFL will pick up international export shipments on behalf of UPS destined for over 200 countriesand territories around the world.
UPS Jetair Express will continue to operate as an international express delivery serviceprovider connecting India with the global marketplace, while AFL will continue to function as adomestic service provider connecting businesses across India. There is no financial stake involvedin the commercial cooperation.
“Our alliance with AFL will strategically strengthen both UPS and AFL capabilities in India.By combining strengths of both the organisations, we can provide customers increased access and acomprehensive range of services and solutions,” Pirojshaw Sarkari, managing director, UPS JetairExpress, was quoted as saying. UPS access points for customers with international express deliveryrequirements will exponentially increase to more than 200 locations in India.
The Times of India newspaper had earlier today reported that the two companies planned toannounce an alliance that would take effect on January 1, 2008. AFL’s existing cooperation dealwith DHL Express expires at the end of December, it pointed out.
The cooperation deal will benefit both companies, according to observers. UPS is seen ashaving the weakest India network of the four integrators. DHL Express is the majority owner ofdomestic air express market leader Blue Dart, FedEx bought its local partner Pafex earlier thisyear, while TNT acquired road transport firm Speedage.
AFL, with a distribution network of 400 local branches, has been seeking a new strategyfollowing DHL’s decision to end their 28-year partnership at the end of this year, which wouldleave it without an international network partner. Earlier this year, the company, which hadrevenues of some eight billion rupees (EUR 145 million) in 2006/07, announced plans to launch itsown flights by helping create a new cargo airline.
