Subscribe to our free, weekly email newsletter!


FedEx set to acquire India-based AFL Pvt. Ltd.


November 03, 2010

FedEx announced earlier today that its FedEx Express subsidiary will acquire the logistics, distribution, and express businesses of India-based AFL Pvt. Ltd. and its affiliate Unifreight India Pvt. Ltd.

Financial terms of the deal, which is expected to close by February 2011, were not disclosed.

FedEx officials said that this deal will provide FedEx Express with a more robust domestic ground network and added capabilities in India.

“This acquisition supports the FedEx commitment to the success of the Indian market, its workforce and its customers,” a FedEx spokesperson told LM in an interview. “Since 1984 when FedEx first entered the market as the first air express carrier FedEx recognized India’s significant economic potential. Continuing to invest in this market further evolves the market potential FedEx recognized more than 20 years ago.”

AFL Pvt. Ltd. was established in 1945. It provides shippers with a wide range of distribution and logistics services. Included in this acquisition are:
-AFL Logistics and distribution, which includes supply chain management, warehousing, and ground distribution network services that provide day-definite ground transportation for small packages and heavyweight shipments through more than 200 daily scheduled routes; and
-AFL WiZ Express, a provider of express services through more than 160 Express Service Centers that provide service for more than 5,000 zip codes across 144 cities in India.

FedEx Express COO Michael L. Ducker said in a statement that this acquisition supports the company’s long-term strategy to grow its international business and better serve customers seeking to expand or enter the Indian market.

And the FedEx spokesperson said that “the acquisition of the AFL businesses will allow FedEx to provide customers with more comprehensive service options, such as domestic ground and value-added services, including warehousing, logistics solutions and 3PL…and for AFL customers this acquisition will allow them to have direct access to the FedEx international air and ground network in more than 220 countries and territories worldwide, enhancing customers’ business flexibility and speed to market coupled with an outstanding FedEx customer experience.”

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Following the lead of its Congressional Colleagues in the House of Representatives, the United States Senate yesterday approved a measure geared to keep federal surface transportation funding intact through the end of December with a nearly $11 billion stopgap fix.

XPO Logistics announced second quarter earnings and the acquisition of two companies, New Breed Logistics, a non asset-based 3PL focusing in contract logistics services, for roughly $615 million, and Atlantic Central Logistics, a 3PL provider of last-mile logistics services, for roughly $36.5 million.

The report, entitled “Outlook for the Domestic Transport and Logistics Market in 2H14 and Beyond,” takes the view that strong freight levels in the second quarter have left trucking companies in a good position: one in which they need to come up with new plans to handle rising demand. But even with that positive momentum afloat, the report observes that there are some familiar challenges intact, such as a lack of qualified drivers and the regulatory drag from the new hours-of-service rules that took effect in July 2013.

Flags of Convenience are a fact of life in the commercial maritime trade, but several European political action groups are worried that they will pose a threat to the Continent’s air cargo industry.

For May, which is the most recent month for which data is available, the SCI is -7.5, following April’s -7.5. FTR said this reading represents a still-tight capacity environment, as utilization rates hover between 98 percent and 99 percent.

Article Topics

News · FedEx · AFL Pvt. Ltd. · Unifreight · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA