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Gati signs strategic pact with Dutch firm

Gati Limited announces a strategic alliance with General Logistics Systems to establish its footprint in the European market, reports Samiran Saha.

business Updated: Feb 25, 2008 21:22 IST
Samiran Saha

Secundrabad-based logistic solution provider Gati Limited on Monday announced a strategic alliance with Amsterdam-based General Logistics Systems (one of Europe’s leading parcel service provider) to establish its footprint in the otherwise untapped European market, Gati’s managing director Mahendra Agarwal said.

“We find the alliance with GLS very strategic for Gati. With the added benefits of GLS’ infrastructure in Europe, their wider footprint across

36 countries and greater network flexibility, the GLS alliance will provide Gati's customers faster access and superior parcel services to Europe,” Agarwal added.

“India’s exports are worth $28 billion to the European Union where imports amount to 30 billion. Even if we capture 5 per cent of that volume it would mean a significant amount of business for us,” Agrawal said.

“We deliver 30 million packets per year and our European partner delivers 300 million packets per year, the alliance would allow both of us to create a huge footprint in each others country,” he said.

Gati would act as GLS' international strategic partner in India and would find access to even the remotest locations. Gati covers 594 out of 604 districts in the country.

Gati has also tied-up with state-run Air India for freighter services and will lease its third aircraft from Air India next week to carry out domestic services, Agarwal added.

“GLS would act as a strategic partner for Gati in Europe, providing easy access for Gati's customers and would enable Gati to penetrate and capture a significant market share in Europe," he added.

Gati is investing $100 million to set up 19 expresses distribution centers in as many cities across the country.

“We have already established 9 such centres and the rest would be in place by the end of 2009,” Agarwal said.

The leading European parcel service provider GLS had reported revenue of 1.6 billion euros for FY 2006-07. GLS handles around 311 million parcels for 2,22,000 customers in 36 European states through 17,800 vehicles and 32 transshipments point, 655 depots and 12,000 employees.