The Hindu Business Line : Reliance Private Equity picks up 44 pc stake in DTDC for Rs 70 cr

RELIANCE Private Equity, a division of Reliance Capital, a group company of Reliance-Anil Dhirubhai Ambani Group (ADAG) has acquired 44 per cent stake in DTDC Group, a leading courier and express service company.

The Chairman and Managing Director of DTDC, Mr Subhasish Chakraborty, said Reliance Private Equity has acquired the stake for a consideration of Rs 70 crore after buying out Mr D. Chakarborty and family's holdings in the company. Mr D. Chakraborty is Mr Subhasish's brother and was the joint managing director in the company.

The management of DTDC would, however, remain in the hands of Mr Subhasish Chakraborty, who still holds 56 per cent share in the company.

DTDC, a closely held company, had a unique model of franchisee business in the courier industry. It has recorded a 26 per cent growth of revenue year-on-year at Rs 125 crore in 2005 and aims to grow to Rs 500 crore by 2010, Mr Chakrabotry said.

With a network of around 3,700 franchisees, DTDC had been able to optimise its costs to achieve consistent growth. DTDC group had recently invested Rs 4.5 crore to upgrade its IT infrastructure, Mr Chakaraborty said.

The company plans to set up an office in China, while it has already established its presence internationally, with offices, joint ventures and associates in New York, New Jersey, London, Dubai, Kathmandu, Dhaka, Colombo and Singapore.

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