NEW DELHI –Reliance Industries Ltd. and Deccan 360 Friday announced that the Indian conglomerate has purchased a strategic stake for an undisclosed amount in the new express logistics company, started by the founder of India’s first low-fare carrier.
Reliance has purchased a stake of between 26% and 49.9% in Deccan 360, said G.R. Gopinath, founder chairman and managing director of the express-cargo transport services company. Mr. Gopinath didn’t disclose the exact stake bought by Reliance or the transaction value.
The acquisition comes within days of India’s biggest private refiner by sales announcing plans to spend up to $1.7 billion to buy a stake in a natural gas field in the U.S. and underscores the potential of the air cargo market in the world’s second-fastest growing major economy. April 9, Reliance and U.S.-based Atlas Energy Inc. said that the Indian company will acquire a 40% stake in the Pittsburgh company’s operations in the Marcellus Shale, a natural-gas-rich rock formation that stretches from West Virginia to New York state.
Friday’s investment, which will be made by a wholly owned unit of Reliance, will be used to expand Deccan 360′s air and road service network in India, the two companies said jointly.
Deccan 360 will introduce end-to-end express logistics services to both the business-to-business and retail sectors, they said.
The deal will be announced at a news conference scheduled for 0700 GMT, G. R. Gopinath told Dow Jones Newswires by phone.
Deccan 360 currently offers air cargo as well as road service operations in 24 locations across India.