Under the agreement, the two organisations will forward consignments to each other for delivery in their respective territories. The relationship will be taken forward depending on how well it grows.
"We see great potential in the Chinese market. It will be an important addition to our global business which now has footprints in the US, UK and the UAE," said Subhasish Chakraborty, chairman and managing director of DTDC.
DTDC has had an expansionary mindset ever since ADAG led by Anil Ambani acquired 40 per cent stake in DTDC. Charkraborty says he finds the group very supportive and eager to take with it all partners on a high growth path and has already been directing group business towards DTDC.
The courier firm, which has till now been delivering documents and parcels, wishes to handle larger express cargo and eventually become a full scope logistics service provider by taking over parts of the distribution and supply chains of firms. This will take it into the warehousing and trucking businesses.
ADAG is currently in discussion with Patel Roadways and Chakraborty made it clear that any acquisition the group makes in this sector will be under the DTDC umbrella. DTDC has its won internal resources of Rs 12-15 crore (Rs 120 to Rs 150 million) and will easily be able to access another Rs 40 crore (Rs 400 million) for acquisition purposes.
DTDC was also open to bringing in a partner and the foremost entity with which it was currently in negotiations was the French government owned GeoPost. The process should be completed by the end of the year. While bringing in a partner, Chakraborty will divest no more than 10 per cent as he wishes to retain over 50 per cent stake post disvestment.
He currently controls close to 60 per cent with a small stake held by employees.
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