Kerry Logistics Network, part of the Hong Kong-based KUOK Group, a conglomerate with diversified interests in logistics, property, hotels & resorts among others, has picked up 51% equity stake in Chennai-based Rs 75 crore Reliable Freight Forwarders for an undisclosed sum.
The Indian company has now been renamed as Kerry Reliable Logistics. And the original promoters of the Reliable Freight Forwarders will hold 49% stake in the new company.
Reliable Freight Forwarders, a ten year-old company has been part of the Indev Group of companies, which provides CFS, transportation, warehousing and container repair services.
“We have been looking at India for many years and were on the look out for a suitable partner. We are happy to have tied up with a south-based company, as we think the future growth will be driven by this region,” Mr Robert Tan, executive director, Kerry Logistics Network, south east Asia told a press conference here on Friday.
According to him, Kerry Reliable Logistics has been in operation in India since October, 2006. However, the formal announcement took place here on Friday, in the presence of Union Communications & IT minister, Mr Dayanidhi Maran and Mr C Rajan, commissioner of Customs (Airport & Aircargo), Chennai.
Mr Tan said, the focus of Kerry Reliable Logistics in the country will be mainly on establishing bonded warehouses and distribution centres. “But, we are not discounting other segments of the logistics business, including transportation fleet, aircargo terminal and port-related operations. On operating transportation fleet, we expect close to 100 large fleet vehicles could be plying on Indian roads in two years from now,” he said.
“We plan to establish 2-5 warehouses and distribution centres and the entire exercise will be backed by our IT systems and solution infrastructure that's been the hallmark of our growth,” Mr Tan said. The company will also focus on expanding its office network, from six at present, in the country.
The company will largely look at opportunities on four main categories of services including products, sourcing, distribution and project logistics. It hopes to clock revenues to the tune of Rs 100 crore in financial year 2007-08.
Source : Economic Times