Cargo plans independent of Interglobe-ups JV: Indigo

The joint venture between Rahul Bhatiaowned Interglobe Enterprises and Atlantabased logistics giant United Parcel Service (UPS) is completely independent of Indigo, the airline clarified on Wednesday.

Business Standard had reported that Interglobe Enterprise, which holds 37.82 per cent stake in Indigo, is foraying into the logistics and cargo business by forming a 50:50 joint venture with UPS.

“The cargo arrangement between Interglobe Enterprise and UPS has nothing to do with us. That’s a standalone operation. They have their own agreements which have no impact on Indigo,” Indigo Chief Executive Officer Ronojoy Dutta said in a post-results call with analysts.

Dutta said Indigo’s cargo business will continue to cater to all customers and not be selective about UPS.

“The business of UPS is more likely to focus on small shipments and surface transport. We are into consolidated shipments. These are two ships passing in the night. We don’t signal each other. We have nothing to do with each other,” he said.

While UPS had a joint venture with an affiliate of Jet Airways, since the demise of Jet Airways, the venture has been all but dead. India has been on the cards of global logistics giants.

Sources said the new venture will look to foray into all types of logistics services, including warehouses, transportation and inventory management, and value-added services linked to the conveyance and shipment of all types of goods by air, land and sea.

Indigo’s cargo business has grown over 31 per cent year-on-year in terms of revenue in FY22.

Sources said the new venture will look to foray into all types of logistics services, including warehouses