FedEx strengthens India operations with $30M buy
FedEx Corp.'s FedEx Express unit has completed the purchase of its Indian service provider, Prakash Air Freight Pvt. Ltd.
With this deal, FedEx now has direct control of its pickup and delivery operations in one of the fastest growing global markets after China. FedEx paid $30 million for the acquisition.
Previously a privately held firm, Prakash Air Freight is one of India's leading domestic express companies, with a network of more than 384 offices and depots serving about 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 is what attracted 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 between 2005 and 2006.
FedEx Express entered India in 1984. It was the first express firm to debut an all-cargo flight in India in 1997. It began the first overnight express service between neighbors India and China in 2005. And it was the first express air cargo company to operate two gateways in India, one in New Delhi and the other in Mumbai.