Future Group Might Buy Logistics Arm Of Snapdeal

Future Group, the Kishore Biyani-controlled comp may, is in starting phase of talks to purchase Vulcan Express, the logistics arm of Snapdeal. This is planned to buy for almost Rs 50 Crore since the former sees to make stronger its business of supply chain, as per various sources. The agreement is anticipated to close in the couple of weeks and might comprise the transfer of labor force to the Future Group from Vulcan as fraction of the contract, one of the people familiar with the deal claimed to the media in an interview.

Future Group Might Buy Logistics Arm Of Snapdeal

One more source, having knowledge on the issue, claimed that Future Group is eager on the contract since this will include more power to the personal 3rd-party logistics processes of the retail giant. The sources did not desire to be named as the talks are confidential. When made a contact, both Future Group and Snapdeal refused to answer. Vulcan Express provides end-to-end supply chain and logistics services to retail firms, particularly e-commerce companies in the nation. It runs in more than 100 cities all over its distribution system.

The Biyani-controlled group has its personal 3rd-party logistics facility supplier FSCSL (Future Supply Chain Solutions Ltd) that provides IT-enabled and automated distribution, warehousing, and other logistics services. FSCSL, which had lifted Rs 650 Crore on the way of IPO previous month, has users all over segments such as fashion, retail, engineering, automotive, FMCG, food and beverage, healthcare, e- commerce, technology, and electronics.

If the contract goes well, it will also assist Snapdeal that is seeking to shed its non-core property in an attempt to stay alive in the hyper-spirited e-commerce industry that comprises behemoths such as Amazon and Flipkart. In 2017, Snapdeal refused acquisition offer of Flipkart and claimed that it might follow a self-governing plan. In July, it decided to trade Freecharge, its payment wallet, for Rs 385 Crore to Axis Bank.

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