Dutch express delivery company TNT NV acquired Secunderabad-based Associated Road Carriers India which operates under the trade name Speedage Express Cargo for an undisclosed amount.
The acquisition is in line with TNT's strategy to emerge as a leading provider of express deliveries in the Asian emerging markets, specifically India. The company also announced Euro 100 million investment in India in five years.
CEO Peter Bakker said, "TNT will be among the top three express companies in India with the acquisition. The combined revenues after this acquisition will reach Euro 100 million (around Rs 590 crore) in 2007."
Blue Dart and Safex are the top two domestic companies.
This acquisition will add 514 depots, 26 transit hubs, 730 vehicles and 1,195 employees (and approximately 1,300 sub-contracted staff) to its existing resources enabling the company to offer a comprehensive network.
TNT India MD Abhik Mitra said this acquisition would allow TNT to extend the integrated air and road products to a broad range of customers.
"With the acquisition, TNT will have 12 per cent market share in the road express segment," said Jinendra Sancheti, vice-president, TNT Regional.
TNT delivers 3.5 million parcels, documents and pieces of freight a week to over 200 countries using its network of 900 depots, hubs and sorting centres.
TNT Express operates over 19,000 vehicles and 43 aircraft and has the biggest door-to-door air and road express delivery infrastructure in Europe. Founded in 1995, Speedage has posted a turnover of Euro 17 million in FY 06 (nearly Rs 100 crore).
