US-based FedEx Express on Thursday said that its strategic alliance with domestic logistics firm Delhivery, signed in July this year, has become operational.
FedEx Express is an American multinational conglomerate holding company that focuses on transportation, e-commerce and business services. It is the subsidiary of FedEx Corp.
Delhivery is an Indian logistics and e-commerce supply chain company. The Gurgaon-based company has approximately 85 packing warehouses and 24 automated sort centres among others.
The FedEx Express strategic alliance transaction has taken effect following satisfaction of closing conditions including regulatory approval from the Competition Commission of India, the subsidiary of FedEx Corp said in a statement.
Following the completion of the deal, Don Colleran, President and CEO, of FedEx Express will be nominated to the Delhivery Board of Directors, further strengthening the close working relationship between the two companies, it said.
With this transaction, FedEx Express brings decades of experience as a global leader in logistics together with Delhivery’s Indian footprint and technology solutions, Colleran said.
FedEx Express said this transaction combines the FedEx global network with Delhivery’s extensive pan-India network and technology solutions to bring the best of both worlds together.
The investment and the commercial agreement between the two companies will deepen the FedEx commitment to the Indian market and signal a significant step in providing innovative services and solutions that aim to improve speed, efficiency, and access for FedEx and Delhivery customers, to unlock India’s international trade potential, the company stated.
“India is a strategic priority for FedEx. We are excited about our long-term vision to grow our business in India, and our continued role to serve customers seeking to expand in or enter the Indian market” said Colleran.
Welcoming Colleran to its board, Sahil Barua, Chief Executive Officer, Delhivery, said “This strategic alliance will enable Delhivery to leverage synergies created between Delhivery’s capabilities in India and the FedEx global network to bring new products and opportunities to both Indian and global businesses and consumers.
Delhivery has filed its draft papers with markets regulator Securities and Exchange Board of India (SEBI) earlier in November, as it is set to raise ₹7,460 crores through an initial public offering (IPO). The company recently acquired a California-based platform for unmanned aerial system platforms, Transition Robotics Inc. (TRI).
