Indian regulatory authorities cleared a joint venture between Japanese forwarder Kintetsu World Express and domestic logistics group Gati Ltd. The companies had announced the joint venture, named Gati-Kintetsu Express Pvt. Ltd., in February.
Gati has a 70 percent stake in the new company with KWE holding the remainder. KWE has invested approximately $50 million in the venture, which would take over Gati’s “express distribution and supply chain” business as part of the deal.
The partnership is expected to offer customers a variety of services, including ocean, air and rail-road transport, supplemented by logistics and warehousing support.
“Gati-KWE brings together the strengths of Gati’s local expertise in express distribution and KWE’s global experience in 3PL warehousing, supply chain and freight forwarding capabilities, creating an unmatched offering and superior value to customers,” a joint statement said.
KWE India, which has been operating since 1997, has nine office locations in the country with some 200 employees.
Established in 1989, Hyderabad-based Gati operates a fleet of more than 4,000 trucks and three container vessels for coastal shipping. The group has also set up offices in Singapore, China, Hong Kong, Malaysia and the Middle East in a bid to accelerate operations in international markets.