Two logistics and supply chain companies will join forces to unlock India’s international trade potential.
FedEx Express and Delhivery have entered into equity and commercial arrangements. The transaction is subject to closing conditions, including regulatory approval.
“India is a strategic priority for FedEx,” said FedEx Corp. President and CEO, Raj Subramaniam.
“This strategic alliance will support our long-term vision to grow our India business and serve customers seeking to expand in or enter the Indian market, as well as provide opportunities to develop product and technology solutions together with Delhivery for the benefit of our customers.”
Commenting on the announcement, Sahil Barua, co-founder, and CEO of Delhivery, said: “We are excited to partner with FedEx and look forward to the synergies created between Delhivery’s capabilities in India and FedEx’s global network. Our aim is to bring new products and opportunities to Indian and global businesses and consumers through unique access to our networks, and our technology and engineering capabilities.”
As part of the collaboration, FedEx will make a $100 million USD equity investment in Delhivery, and the companies will enter into a long-term commercial agreement.
FedEx Express will focus on international export and import services to and from India, and Delhivery will, in addition to FedEx, sell FedEx Express international products and services in the India market and provide pick-up and delivery services across India.
FedEx will transfer certain assets pertaining to its domestic business in India to Delhivery.
Additionally, Don Colleran, President and CEO of FedEx Express will be nominated to join the Delhivery Board of Directors as a further sign of collaboration between the two
companies.
Earlier this year, FedEx announced that Henry Maier, FedEx Ground President and CEO, will retire effective 31 July 2021.