FedEx to acquire the logistics, distribution and express businesses of AFL Pvt Ltd and its affiliate Unifreight India Pvt Ltd

FedEx reported that its FedEx Express business is to acquire the Mumbai based AFL Pvt Ltd’s and its affiliate Unifreight India Pvt Ltd’s logistics, distribution and express businesses. The US based cargo firm said the move is in line with reinforcing its operations in India. The acquisition by the FedEx Express business unit will give FedEx a more robust domestic ground network and added capabilities in India. FedEx expects the transaction, which is subject to customary closing conditions, will close in its third fiscal quarter which ends February 2011.

The deal includes the purchase of AFL Logistics and Distribution division that offers supply chain management, warehousing, and a ground distribution network for all kinds of shipments. The deal also includes AFL WiZ Express, which offers express services through more than 160 Express Service Centers serving across 144 cities in India.

The American firm has a strategy of growing its international business and India is a key target market for the company. AFL, a privately held company, is a leading company in logistics and transportation in India. The deal includes the acquisition of AFL Logistics and Distribution, whose services include supply chain management, warehousing and a ground distribution network.

The network offers day definite ground transport using 200 daily scheduled routes and AFL WiZ Express, a service which provides express services through 160 service centers in 144 Indian cities.

India is currently experiencing an increase in demand for third party logistics, as outsourced services are a better way of managing logistics processes than existing incumbent in-house operations. However, India is still some way behind the developed Western economies and this therefore presents opportunities for logistics providers.

FedEx Corporation (FedEx) is a US-based holding company, engaged principally in offering logistics solutions. The company, through its subsidiaries, provides transportation, e-commerce and business services under the FedEx brand. Major offerings of the company include day-certain service to every business address in the US and Canada, and time-certain delivery within one to three business days.

In addition, through FedEx Home Delivery, it provides residential delivery services. The company also provides in-store services, online services and business solutions.

UNIFREIGHT is a Transportation Solution Company, offering services both on the inbound (supply side) and outbound (distribution) components of the total supply chain. The firm provides competitive pricing and a simplified process, coordinating all aspects from pickup to delivery.

4 Nov 2010.