Reliance Industries (RIL), India’s biggest private sector company with large retail interests, will buy into an air cargo firm promoted by Capt GR Gopinath in an attempt to gain an edge over its rivals in the rapid movement of goods across the country.
Reliance will buy a controlling stake in Deccan 360 for an undisclosed amount and will get the right to appoint two members on the board. Deccan owns eight aircraft and transports express and normal cargo to about 50 cities which it wants to increase to 100 cities in 12-18 months. It also has a fleet of 1,000 branded vehicles for its economy cargo sector where it transfers bulk cargo over roads.
RIL, which is expanding its retail presence, wants a dedicated cargo service that can fly to several destinations and deliver goods quickly. It now has shops in 200 cities and is keen to expand it further. Reliance will use Deccan’s transport fleet to ferry goods from central warehouses to shops across several cities. Deccan 360, meanwhile, will use funds from Reliance to expand connectivity to several more cities and towns.
Source : http://economictimes.indiatimes.com/news/news-by-industry/transportation/airlines-/-aviation/RIL-picks-up-majority-stake-in-Deccan-360/articleshow/5823132.cms
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