FedEx Express, a subsidiary of NYSE-listed FedEx Corp, and Gurugram-based have entered into equity and commercial agreements that will utilise their combined strengths to unlock India’s international trade potential. Completion of this transaction is subject to closing conditions, including regulatory approval.
As part of the collaboration, FedEx will make a $100 million 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.
Commenting on the announcement, Sahil Barua, Co-founder and Chief Executive Officer, 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.”
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. 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.
Raj Subramaniam, President and Chief Operating Officer of FedEx Corp said,
“India is a strategic priority for FedEx. 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."
Link : https://yourstory.com/2021/07/fedex-delhivery-long-term-commercial-agreement-deal
Author :- Rashi Varshney ( )
July 16, 2021 at 12:05PM
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