Nippon Express, acting through its subsidiary Nippon Express (South Asia & Oceania) and FSC have signed a Business Collaboration Agreement (BCA) to jointly explore growth opportunities for new and existing customers based on their strategic partnership and expand revenues for both the companies. The two companies will jointly start the business collaboration in January 2020.
The partnership aims to jointly leverage Nippon Express’ competency in diverse sectors for the Indian market aspiring to become India’s leading logistics player. FSC hopes to demonstrate its 3PL and express logistics operations, attracting potential new business opportunities from Nippon Express’ existing Japanese and multinational company clients. Both 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, firstly, aim to offer FSC’s integrated service to Japanese and other foreign customers of Nippon Express who are currently doing business in India and are planning to penetrate into the Indian market in near future. Secondly, they aim to offer Nippon Express’ global logistics services to Indian customers via FSC, as well as increase FSC’s operational efficiencies through the introduction of global technologies and process improvements/Kaizen activity.
Commenting on the strategic partnership, Satoshi Horikiri, Senior Managing Executive Officer, and Chief Managing Officer of International Business Headquarters at Nippon Express said, “we hope to increase our sales outside Japan from our current sales of $4bn to $12bn by 2028 and become a proud world-class logistics company”.
Nippon Express and FSC have received all necessary approvals for Nippon Express’ acquisition of 22% stake in FSC, announced on September 20, 2019. This includes approval from the Competition Commission of India, FSC shareholders, BSE Limited and the National Stock Exchange of India Limited.
Source: Nippon Express
