TOKYO, 24 September 2019 – Nippon Express Co. Ltd. has agreed to make an investment in Future Supply Chain Solutions Limited (FSC).
The Board of the Company, at its meeting held on September 20, 2019, approved the execution of a Share Subscription Agreement (“SSA”) and Shareholder Agreement (“SHA”) with FSC and a Share Purchase Agreement (“SPA”) with some FSC shareholders.
FSC, listed on BSE Limited and the National Stock Exchange of India Limited, is among India’s leading logistics service providers and a part of the Future Group, India’s largest retail group.
The investment is subject to customary closing conditions and regulatory approvals.
The Nippon Express Group aims to become a logistics company with a significant presence in the global markets as laid out in the “Nippon Express Group Business Plan 2023 – Dynamic Growth” beginning from the financial year 2018.
An important part of the group’s core strategy is to focus on strengthening its India business to capitalize on the rapid growth expected in the Indian logistics market.
The Indian logistics market is expected to have significant growth driven by key factors like:
1) modernization of the road infrastructure network
2) reorganization of traditional supply chain networks due to the implementation of GST (Goods and Service Tax)
3) consumption growth driven by a fast-growing middle-income group.
The Future Group’s rapid growth in the retail business is supported by FSC’s logistics capabilities. In a short span of time, FSC has established itself as one of the largest players in India, counting not only the Future Group as its anchor customer but also several fast-growing Indian and MNC customers.