DHL commits €128 million for investment in domestic express services in India11/08/2004, 09:00 AM CET
DHL, the world's leading express and logistics company, today announced an investment in India of €128 million, reinforcing its commitment to the growing Indian economy. The commitment is towards an acquisition of Blue Dart, the premium domestic courier and integrated air express package distribution company.
DHL Express has finalised agreements with the founding shareholders of Blue Dart and Schroder Capital Partners Limited, for an acquisition of a majority stake in Blue Dart. The agreement, signed on Saturday, 6th November, gives DHL Express a 68 per cent stake in Blue Dart subject to regulatory approvals.
In compliance with statutory requirements in India, the acquisition of 68 per cent of shares in Blue Dart requires DHL to make a 20 percent mandatory open offer to the public shareholders.
With an extensive domestic geographical footprint and air express infrastructure, Blue Dart will strengthen DHL's presence in India. Customers will also benefit from inherent synergies derived from DHL's world-class expertise and Blue Dart's extensive network covering over 13,700 locations in India.
This announcement comes after DHL's recent commitment of over €180 million in China. With these investments, DHL becomes the only global air express company to have comprehensive domestic and international express services in two of the fastest growing economies in the region - China and India.
"This landmark development is a logical extension of our commitment to provide a full range of express and logistics services in the Asia Pacific region," said John Mullen, Chief Executive Officer, DHL Express Asia Pacific and designated Member of the Executive Board Deutsche Post World Net.
"This acquisition underpins DHL's Asia Pacific strategy and builds on our extensive geographical reach and network infrastructure in the region, which is second to none," added Mr Mullen. "Blue Dart will enable us to offer customers a new level of connectivity in India, complementing DHL's extensive Asia Pacific network."
Following the completion of the acquisition, Blue Dart will be managed as a stand-alone company under the leadership of the existing management team. It will be business as usual and all existing client relationships will remain unchanged.