Mumbai (Maharashtra) [India], Dec 11 (ANI): Japan's leading global logistics company Nippon Express acting through its subsidiary Nippon Express (South AsiaOceania) Pte Ltd and Future Supply Chain (FSC) Solutions Ltd has signed a business collaboration agreement to jointly explore growth opportunities for new and existing customers.
The two companies will jointly start the business collaboration from January 2020.
The partnership will jointly leverage Nippon Express' competency in diverse sectors for the Indian market. Both the companies have agreed to formalise a steering committee and Nippon Express will depute its representatives to operate alongside FSC's management.
Nippon Express and FSC aim to pursue three business strategies through this collaboration. One: offer FSC's integrated and high-quality service offering to Japanese and other foreign customers of Nippon Express who are currently doing business in India or are planning to penetrate into the Indian market in the near future.
Two: offer Nippon Express' global logistics services to Indian customers via FSC. And three: increase FSC's operational efficiencies through the introduction of the latest global technologies, process improvements and Kaizen activity.
"We hope to increase our sales outside Japan from our current sales of 4 billion dollars to 12 billion dollars by 2028 and become a proud world-class logistics company," said Satoshi Horikiri, Senior Managing Executive Officer and Chief Managing Officer of International Business Headquarters at Nippon Express.
Both companies have got all necessary approvals with respect to Nippon Express' acquisition of 22 per cent stake in FSC which was announced on September 20. This includes approval from the Competition Commission of India, FSC shareholders, BSE Ltd and the National Stock Exchange of India Ltd.
FSC is a leading third-party logistics service operator in India and covers the entire gamut of supply chain services across the logistics value chain including smart warehousing, an efficient transportation and distribution system, temperature-controlled logistics and last-mile delivery logistics.
Tokyo-based Nippon Express is Japan's leading global logistics company with 705 locations in 302 cities across 46 countries. The company has 71,525 employees and consolidated annual sales of over 20 billion dollars.