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Aspiring to be India’s leading logistics player

Nippon Express Co., Ltd., acting through its subsidiary Nippon Express (South Asia & Oceania) Pte. Ltd. signed a business collaboration agreement (BCA) in Mumbai on December 11 to jointly explore growth opportunities for new and existing customers based on their strategic partnership and business collaboration and expand revenues for both the companies.

The two companies will jointly start the business collaboration in January 2020.

The partnership will jointly leverage Nippon Express’ competency in diverse sectors for the Indian market aspiring to become India’s leading logistics player.

FSC will demonstrate its 3PL and express logistics operations, attracting potential new business opportunities from Nippon Express’ existing Japanese and MNC clients. Both the companies have agreed to formalise a steering committee and Nippon Express will depute its representatives to operate alongside FSC’s management.

Nippon Express and FSC aim to pursue three business strategies through this collaboration.

1. Offer FSC’s integrated and high-quality service offering to Japanese and other foreign customers of Nippon Express who are currently doing business in India and are planning to penetrate into the Indian market in near future.

2. Offer Nippon Express’ global logistics services to Indian customers via FSC.

3. Increase FSC’s operational efficiencies through introduction of latest/global technologies and process improvements /Kaizen activity.

Commenting on the strategic partnership, Satoshi Horikiri, Senior Managing Executive Officer and Chief Managing Officer of International Business Headquarters at Nippon Express, said, “I am very happy to announce that Future Supply Chain Solutions and Nippon Express have both signed a business collaboration agreement. This partnership will form an important part of our long-term vision of becoming a logistics company with a strong presence in the global market through dynamic growth. To be specific, we hope to increase our sales outside Japan from our current sales of US$ 4 billion to US$ 12 billion by 2028 and become a proud world-class logistics company.”

Commenting on the transaction, Mayur Toshniwal, Managing Director at FSC, said, “I am pleased to share that Nippon Express has joined the FSC family as a strategic partner. Together we will provide a best-in-class supply chain service offering to our customers in India, given our complementary skill sets and domain expertise. We are excited about the business expansion potential and revenue synergies from this partnership and remain committed to deliver significant value to our stakeholders in the long term.”

Nippon Express and FSC have received all necessary approvals with respect to Nippon Express’ acquisition of a 22% stake in FSC, announced on September 20, 2019.

This includes approval from the Competition Commission of India, FSC shareholders, BSE Limited and the National Stock Exchange of India Limited.

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