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Our Bureau

Bangalore, Aug. 18 Deccan Express Logistics, an air and ground distribution network company formed by Capt. G.R. Gopinath, plans to raise $200 million to fund the project, which is expected to become operational by the first quarter of the next financial year.

The company has appointed Edelweiss, an investment banking and financial services company, to arrange for funding from private equity and help it with a business model to run its fully integrated logistics service.

Capt Gopinath told Business Line that he hopes to raise $70 million in the next four months, while the remaining funds were expected to be arranged within three years with the help of Edelweiss.

Deccan Express signed a memorandum of understanding with GMR Group on August 13 for setting up express cargo operating facilities at Delhi and Hyderabad International Airports. The GMR Group has invested in the two airports with the licence to operate them.

Last month, Deccan Express had also signed an MoU for establishing a cargo hub at Nagpur Airport. With the three airport hubs and the road and rail linkage, the company would strengthen its distribution network for efficient logistics support.

The company will be taking delivery of two cargo aircraft from Airbus soon, while it plans to acquire eight more carriers to strengthen its fleet, said Capt. Gopinath.

He said with a large number of special economic zones expected to take off in the next two years, the company was looking to provide connectivity for the cargo from the SEZ through its multimodal express distribution network. The company was working out a franchise model for the road network.

More Stories on : Air Cargo | Outlook | Supply Chain Management

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