FedEx set to acquire PAFEX, expand operations in India
Jeff Berman, Senior Editor -- Logistics Management, 11/2/2006
MUMBAI, India—FedEx Express, a subsidiary of the FedEx Corporation, announced today it has signed an agreement to acquire its India-based service provider Prakash Air Freight Pvt. Ltd. (PAFEX) for $30 million.
FedEx said this acquisition will augment its global express delivery capabilities in India, where the market continues to grow at a rapid pace. PAFEX, which has more than 380 offices and serves nearly 4,400 destinations worldwide, was established in 1986.
And it has served as FedEx’ service provider in India since 2002, when FedEx introduced a new business model in India, which FedEx rolled out to provide a more comprehensive business service, according to a company spokesperson. The main objective of this business model was to make international trade processes easier for FedEx customers in India by expanding operations for its air and ground networks, as well as rolling out new technology services.
The spokesperson said that this acquisition makes sense because since 2002-when the companies’ first collaborated-PAFEX has taken steps to establish and maintain quality standards that customers and shippers require. And this acquisition was the next logical step for FedEx’ customers, according to the spokesperson.
“This will enable us to have full control of our pickups and delivery operations [in India], which we believe will enhance customer experience and improve speed to market as well,” said the spokesperson.
FedEx first set up shop in India in 1984, and it was the first company to introduce and all-cargo flight to India in 1997. It also created the first overnight express service between India and China in 2005, and was the first express air cargo company to operate two gateways in India-in Mumbai and Delhi-with 16 MD-11 flights per week.
The spokesperson declined to disclose metrics on how much freight FedEx and PAFEX transport in India.
View All On-Demand Webcasts
