FedEx bolsters India operations
FedEx Corp.'s FedEx Express unit has completed the $30 million purchase of its Indian service provider, Prakash Air Freight Pvt. Ltd. FedEx now gains direct control of its pickup and delivery operations in one of the fastest-growing global markets.
Previously a privately held firm, Prakash Air Freight is one of India's leading domestic express companies, with a network of 384 offices and depots serving 4,400 destinations. The company began domestic express operations in 1986 and became FedEx's service provider in 2002.
The growth of express services in India, the competitiveness of domestic business and access to worldwide markets drew FedEx to this market. Indian exports are expected to reach $150 billion by 2008-09, giving FedEx a valuable opportunity to participate in an economy that grew 8.4 percent from 2005 to 2006.
FedEx Express was the first express firm to debut an all-cargo flight in India in 1997. It began the first overnight express service between India and China in 2005.