Bruce Barnard, Special Correspondent | Dec 12, 2011 10:02AM EST
TNT Express, extending the reorganization of its global delivery operations, said Monday it will sell the company’s domestic road business in India to a private equity firm, India Equity Partners.
TNT said it is selling the business to focus on its international business, where it ranks as one of the top four global express operators.
“TNT Express will continue to offer inbound and outbound India services, via its globally interconnected networks,” the company said. “It will also continue to provide customer-specific special services, in particular to the health-care and service logistics segments.”
Under the sale, which will be effective Dec. 30, IEP will be TNT’s its “preferred partner for domestic road delivery in India.”
Netherlands-based TNT is in the midst of a broader change that included the separation this year from its former postal business, which is now called PostNL and owns about a quarter of the express operator.
The company reported a 64 percent decline in its net profit in the third quarter and some institutional shareholders have suggested larger strategic actions in response. Rivals DHL and FedEx have expanded their operations in India over recent years, including acquisitions that have bolstered delivery within the country.
-- Contact Bruce Barnard at brucebarnard47@hotmail.com.
