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Thursday, May 8, 2014

FedEx expands coverage to over 19,000 postal codes in India

FedEx expands coverage to over 19,000 postal codes in India
David Canavan, vice-president, operations, FedEx Express India.
The Memphis-headquartered global courier delivery services company, FedEx Corp., on Wednesday announced the successful integration of its acquired Indian logistics companies AFL Pvt. Ltd and Unifreight India Pvt. Ltd, which will help it strengthen its domestic services.
FedEx Express acquired the logistics, distribution and express businesses of AFL Pvt Limited and its affiliate, Unifreight India Pvt. Ltd, in 2011.
With the tie-ups, FedEx said it has expanded its services coverage from 4,000 postal codes to over 19,000 in India. The US firm now has increased its office and hub space capacity from 300,000 to over a million square feet. It has also strengthened its ground transportation service and has more than 1,000 trucks across India. FedEx Express began serving India in 1984 through an alliance with a Global Service Participant, before entering the market independently as FedEx in 1997.
Besides, it has added inventory management services through 900,000 sq ft warehousing space across the country. Its solutions will cater to the booming e-commerce sector in India, hi-tech industries and modern retail.
"In a little over a decade, India is expected to have as many as 18 mega-demand cities with a GDP surpassing $20 billion. This is why we have expanded our network to over 90 per cent of India's manufacturing GDP, thereby providing seamless access to Indian businesses with diverse logistics needs," says David Canavan, vice-president, operations, FedEx Express India.
While the domestic logistics ground services is growing at 15 per cent to 20 per cent a year, the air express service growth looks at a 10 per cent to 12 per cent growth in India. Industry experts say logistics accounts for almost 10 per cent of the $15-billion e-commerce market, of which non-travel and product-based market is approximately $3 billion.
India is becoming one of the most sought-after destinations for logistics firms. Private-sector courier companies such as DTDC Courier & Cargo Ltd, Blue Dart, DHL and First Flight are already offering parcel delivery services. Then, there is the state-run India Post that launched two new parcel services-Express Parcel and Business Parcel-with an aim to generate Rs 100 crore in annual revenue in December 2013. DTDC launched DotZot, the e-retail logistic specialist, a pan-India network exclusively for e-commerce. Other logistics companies have their own e-commerce divisions.
Some of the e-commerce companies such as Flipkart have also started their own logistic arms. Besides, dedicated start-ups such as Delhivery have come up to fill the gap in the logistics space. 
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