Reliance Capital acquires 44% stake in DTDC
Anil Ambani-controlled Reliance Capital acquired 44% stake in Bangalore-based DTDC for an undisclosed amount.india Updated: Feb 14, 2006 18:03 IST
Anil Ambani-controlled Reliance Capital on Tuesdayacquired 44 per cent stake in Bangalore-based courier and express company DTDC for an undisclosed amount.
The management of the company would continue to be in the hands of DTDC Chairman and Managing Director Subhashish Chakraborty, who has retained the remaining 56 per cent stake, DTDC said in a statement.
"Reliance Capital, apart from its investment, also endorses DTDC's unique business model. The alliance is also expected to bring a lot of value addition to the company. We chose Reliance Capital because of their professional approach, and speed of implementation," he said.
The announcement comes within hours of Reliance Capital Ventures, which is proposed to be merged with RCL, saying that it has filed a revised information memorandum with Stock Exchanges for listing the company on the bourses.
Commenting on the deal, Reliance Capital Head - Private Equity Srinath Srinivasan said: "Relaince Capital believes that this industry is poised for mega growth and a third party logistic is becoming important as India's retail sector gets more and more organised."
DTDC, which has a strong network of 3,700 franchisees, has revenues of Rs 125 crore on standalone basis and it aims to grow to Rs 500 crore by 2010. However, by adding the revenues of its franchisees the figure touches Rs 250 crore currently.
The acquisition of stake by Reliance comes as a shot in the arm for DTDC's plans to spread its operations globally.
The Bangalore-headquartered courier firm, which handles around eight million parcels a month, is contemplating opening offices in far eastern countries, besides China.
It already has presence in New York, New Jersey, London, Dubai, Dhaka, Colombo and Singapore.