Japanese forwarder Nippon Express is to acquire a 22% stake in Indian logistics firm, Future Supply Chain Solutions (FSC), a subsidiary of retail conglomerate, Future Group, to expand in the sub-continent.
In a statement, Nippon Express said the proposed shareholding in FCS, which is subject to regulatory and shareholder approval, was in keeping with the group’s 'Dynamic Growth Business Plan 2023.'
“An important part of our core strategy is to focus on strengthening our India business to capitalize on the rapid growth expected in the Indian logistics market.”
The statement underlined that this market is expected to have significant growth driven by key factors such as the modernization of the road infrastructure network; the reorganization of traditional supply chain networks due to the implementation of GST (Goods and Service Tax) and consumption growth driven by a fast growing middle income group.
Nippon Express first entered the Indian market in 2007 and currently focuses on international freight forwarding of cargo arriving in and departing from India.
“As a next step to further expand our India business, we are enhancing (our) domestic logistics business in India to capture expanding domestic demands.”
The statement went on to note that with its headquartered in Mumbai, Future Group is one of the largest business conglomerates engaged in the modern retail trade with a pan-India footprint.
“Future Group’s rapid growth in retail business is supported by FSC’s logistics capabilities. In a short span of time, FSC has established itself as one of the largest players in India, counting not only the Future Group as its anchor customer but also several fast growing Indian and MNC customers.