FedEx Express has signed an agreement to acquire its Indian service provider, Prakash Air Freight (PAFEX) for US$30 million, payable in cash.
The transaction is subject to customary conditions, including Indian government approval.
The acquisition will give FedEx a wholly-owned operation in one of the world’s fastest growing markets.
Privately-held PAFEX is one of the biggest domestic express companies operating in India, with more than 384 offices and depots serving nearly 4,400 destinations. The nationwide network covers every major city in India.
PAFEX began domestic express operations in 1986 and has been the FedEx service provider in India since 2002.
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FedEx has achieved a few industry ‘firsts’ since it began operating in India in 1984:
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FedEx was the first express company to introduce an all-cargo flight in India in 1997
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FedEx began the first overnight express service between India and China in 2005
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FedEx was the first express air cargo company to operate two gateways in India (Mumbai and Delhi), with a total of 16 MD-11 flights in and out per week
“As one of the fastest growing economies in the world, India presents enormous opportunities for our customers, said Michael Ducker, president of FedEx Express International. “With this acquisition, we would ensure continued outstanding customer service through increased access for our customers doing business to and from India.”
