Kerry Logistics Raises Stake in INDEV Further Strengthening Capabilities in India

Kerry Logistics Network Limited ('Kerry Logistics' or the 'Company'; Stock Code 636.HK), a leading logistics service provider in Asia, announces it has entered into a Memorandum of Understanding to increase its stake in Indev Logistics Pvt. Ltd. ('INDEV'), a well-established Indian logistics company headquartered in Chennai, as the Company takes on an increasingly positive view of India's economic prospects.

The announcement was made at an inauguration ceremony held on 13 April in New Delhi with Ms. Nirmala Sitharaman, Minister for Commerce and Industry of India, as the esteemed Guest of Honour. Also in attendance were the top management from Kerry Logistics and INDEV. The strategic move will see INDEV rebranded as Kerry-INDEV, reflecting Kerry Logistics' growing capabilities and ambition to becoming a major pan-Indian logistics company with India Focus and member of a China Specialist Global Network.

Indev will become the key member of Kerry logistics network in India. Kerry has the expertise in Supply Chain Management and will immensely benefit Indev in India. In alignment with Government's 'Make in India' policy, Kerry Indev will design industry specific products & solutions to move goods across to Continents using the Kerry Logistics Global Network in the most efficient manner bringing down the logistics cost.

George Yeo, Chairman of Kerry Logistics, said, "We thank the Government of India for its continued support to our operations in the country. We have always held an optimistic view of India's potential, and are pleased to be strengthening our partnership with INDEV to tap into the opportunities that are emerging. Kerry Logistics' strength in providing customized supply chain solutions to different industries and INDEV's strong presence and network in India make Kerry-INDEV a strong pan-Indian combination which we hope can make a contribution to the country's growth and development."

Indev is currently building a Warehousing Unit in FTWZ, Mundra and is planning to venture into Cold Storage and will expand its Warehousing capacity to 5 Million Sq. Ft. by 2018. The expansion plans also includes acquiring last mile delivery capabilities to serve the growing ecommerce market including Express Services.

Mr. S. Xavier Britto, Chairman of Kerry Indev Logistics said "Indev stands for Indian Development and during the last 32 years has grown into a pan India Logistics service provider from its base at Chennai. We are excited about the Make In India and other development programs initiated by the Government of India and the opportunities emerging for logistic services. We are entering into this strategic partnership with Kerry Logistics to offer our customers customized cost effective logistic solutions across the globe. Kerry Indev will be your dependable logistics partner to move your Cargo from / to anywhere in the world".

"India has become one of the fastest-growing economies in Asia. We see the introduction of Goods and Services Tax ("GST") and the current campaign to "Make in India" as being very positive for the quantitative and qualitative expansion of the logistics industry," he added.

Source : Equity Bulls

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