CJ Logistics, one of the world’s largest logistics group has acquired a 50 per cent stake in India’s logistics and transport giant Darcl Logistics for $50.6 million. With around four decades of growth, Darcl has acquired diverse capabilities to arrive at this position today. It has projected an annual turnover of over ₹1800 Crores in the FY 16.
India has most recently become a hot destination for global logistics companies. Domestic companies are also not far behind and are in an expansion mode. Recently, we witnessed CJ Logistics Corp., South Korea’s largest parcel delivery service company acquiring a 50 per cent stake in India’s logistics and transport giant, Darcl Logistics Ltd. for $50.6 million.
In a candid interview to TransREporter, Keun-Tae Park, President & CEO, CJ Logistics said “We are confident about Darcl Logistics, which is India’s top transport company and third-largest logistics company. Darcl Logistics is methodically covering all regions of India with its four main bases established in each regional corner. This joint venture is a big step for us in satisfying our majestic plan to grow as the largest logistics company in all of Asia”.
Since its first acquisition of the Chinese Smart Cargo in April 2013, CJ Logistics Corp succeeded in mergers and acquisitions (M&A) with Chinese, Malaysian, Indonesian, and Philippine freighters. With two more groups added to their organization chart, CJ has built a pan- Asian logistics network.
These two firms have certainly made a right move through this deal. The Korean company is expected to strengthen its footprints in India to tap the burgeoning logistics demand in the Asian country.
“With the acquisition of Darcl which has a network across India, we will strengthen our logistics network in Asia overall. By entering the fast-growing Indian market, we are now one step closer to becoming one of the global top five logistics companies,” added Keun-Tae.
“I think our association with CJ Logistics can be a good way to spread out our company’s activities in the other side of the world. They have in-house expertise in various fields, hence we would be able to leverage on CJ’s strengths including its technology systems and solutions. Hopefully, we shall integrate our logistics and administrative activities, resulting in a larger network and more cost-efficient operation,” said Krishan Kumar Agarwal, Chairman & MD, Darcl Logistics.
CJ Logistics is committed to pull out all stops to join the ranks of the global top five industry leaders by 2020, by undertaking a series of mergers and acquisitions in Europe, US, China and Southeast Asia.
Darcl Logistics has expanded its service portfolio to include diverse skills and industry sectors to come forward as the foremost operator with a satisfied customer base of over 2000 companies. With around four glorious decades of growth and expansion, Darcl Logistics has acquired diverse capabilities to arrive at this reputed position today. The company has projected an annual turnover of over ₹1800 Crores in the FY 16.