Deccan 360 to chart course with RIL help

The new air cargo and logistics venture promoted by low-cost airlines pioneer G.R. Gopinath has begun to work more closely with Reliance Industries Ltd (RIL), less than three months after India’s largest private sector firm bought a stake in it.
Deccan 360 will open kiosks in at least 350 outlets of Reliance Retail Ltd, the retailing arm of RIL, within the next three months. RIL will also help Deccan 360 build a central warehouse in Nagpur and develop the technology infrastructure that is crucial for supply chain and logistics companies.
Deccan 360 is the brand owned by Deccan Cargo and Express Logistics Pvt. Ltd, the new Gopinath venture.
“Reliance Industries and Deccan 360 will jointly work to derive synergies in IT automation, project management and retail network,” Gopinath said in an interview. The two companies have not revealed the extent of the RIL investment though Gopinath terms it a “strategic investment”.
Analysts say that both companies will benefit from the synergies.
“Reliance Industries will get access to the huge domestic air cargo network of Deccan 360 while the airline would get access to a captive client base, including Reliance Industries and Reliance Retail. Deccan 360 will also get a much-needed fund infusion to scale up across the country,” said Aswatha Nagendra, till recently country manager with supply chain consultancy firm Logistics Consulting Asia.
29/06/10 P.R. Sanjai/Live Mint

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