FedEx Buys India Operator AFL

FedEx will buy India package and freight delivery specialist AFL and its affiliate company Unifreight India, sharply stepping up the company’s investment in one of the world’s fastest growing economies.

“The acquisition supports our long-term strategy to grow our international business and better serve our customers seeking to expand or enter the Indian market,” Michael L. Ducker, chief operating officer of FedEx Express, said in a statement. “This will provide customers with more service options.”

Mumbai-based AFL is one of the largest operators in the sprawling and highly fractured cargo market. It has some 50 warehouses and 1,400 destinations and for several years was the owner of the DHL Worldwide Express business in India.

FedEx said Cyrus Guzder, the AFL Group’s chairman and managing partner, will remain with the business as an executive advisor.

“This transaction provides AFL with an opportunity to offer its customers an enhanced level of service, new service offerings and the adoption of global best practices in its core businesses of air express delivery and ground distribution,” Guzder said in a statement. “While our extensive network and logistics infrastructure will enable FedEx to deepen its penetration of the Indian market, I believe AFL’s customers will be excited by the prospects of AFL’s service offering being strengthened under the leadership of a global leader in express delivery and transportation.”

FedEx expects to close the transaction in February 2011. Terms of the deal were not disclosed.
(Source:www.joc.com)