RIL-Deccan JV to boost logistics spectrum in India

Mumbai: Indian logistics spectrum is all set to witness a remarkable change in coming days as Mukesh Ambani-led Reliance Industries Ltd (BOM:500325) today announced that the company will invest in South-India based Deccan Cargo & Express Logistics Pvt Ltd as a strategic move to ensure strong network for getting products from across the country for its retail business.
Deccan Cargo & Express Logistics, promoted by Capt GR Gopinath, and RIL today issued a joint statement stating that the latter will acquire a stake in the airliner through a wholly owned subsidiary. However, financial details of the deal were not revealed.
Gopinath said RIL’s stake would be over 26 per cent, but below 50 per cent. “We were in talks with some private equity players and some other potential strategic investors, but we chose Reliance, not because theirs was the highest bid, but because of the strategic advantage of this deal,” he said, but did not elaborate further.
“We believe that our collaboration with Deccan 360 will see a transformation in the logistics domain in India. We are sure that this initiative will propel the customer experience to the next level in India in the logistics domain” RIL’s Chairman and MD Mukesh Ambani said in a statement.
Deccan Cargo, which operates the Deccan 360 freight carrier, flies to 15 airports using eight aircraft. The company also has a fleet of 300 trucks and 850 vehicles, according to the statement.
16/04/10 Commodity Online

To Read the News in full at Source, Click the Headline

Categories: Cargo Apr 2010, Deccan 360 Apr 2010, New Apr 2010