Delhi-based logistics service provider Budget Group is spreading its wings abroad through tie-ups with international logistics companies.
This home grown logistics firm on Saturday announced strategic alliances with China-based FARDAR Group, Singapore-based Network Courier and A.J. Worldwide to expand its reach to 11 more countries across Asia, South Asia, Europe and the US.
“This international consortium plans to invest close to $12 million through credit facility and investments into this partnership”, Manoj Kumar, Founder and Chairman of Budget Group said here.
Besides this investment, Budget Group on its part will invest another $ 3-5 million in next 3-5 years, Kumar said.
Given the growing nature of manufacturing industry and e-commerce penetration in India, there is huge opportunity for international collaboration to stay connected in the cross national economy of cargo and logistics space, said Ma Li Yu (Mary Ma), Chairperson FARDAR Group.
“We feel really optimistic with our alliance with Budget Group in India and hope, it will undoubtedly be a great way to grow both the companies and get access to global footprint on the go”, Mary Ma said.
Organised logistics industry in India is projected to expand 15-20 percent compounded annual growth rate (CAGR) over the next five years. Indian logistics sector has grown at a rate of 15 per cent in the last five years.
It is poised for accelerated growth, led by improvement in transport infrastructure, increased e-retailing penetration and impending GST implementation.