Fu­ture Group mulls buy­ing Snapdeal’s lo­gis­tics Arm

Shoes & Accessories - - The Month That Was -

Fu­ture Group is in ini­tial stage of dis­cus­sions to buy Snapdeal’s lo­gis­tics arm — Vul­can Ex­press — for about ` 50 crore as the for­mer looks to strengthen its sup­ply chain busi­ness, ac­cord­ing to a re­li­able source.

Ac­cord­ing to the source: The deal is ex­pected to close in the next few weeks and may in­clude the trans­fer of Vul­can’s work­force to the Fu­ture Group as part of the deal, one of the sources said.

An­other source, briefed on the mat­ter, said that Fu­ture Group is keen on the deal as this will add more mus­cle to the re­tail gi­ant’s own third-party lo­gis­tics op­er­a­tions.

Vul­can Ex­press of­fers end-to-end lo­gis­tics and sup­ply chain so­lu­tions to re­tail com­pa­nies, es­pe­cially e-com­merce play­ers in the coun­try. It op­er­ates in over 100 cities through its dis­tri­bu­tion net­work.

The Biyani-led group has its own third-party lo­gis­tics ser­vice provider Fu­ture Sup­ply Chain So­lu­tions Ltd (FSCSL) which of­fers au­to­mated and It-en­abled ware­hous­ing, dis­tri­bu­tion and other lo­gis­tics so­lu­tions.

FSCSL, which had raised ` 650 crore by way of IPO last month, has cus­tomers across sec­tors like re­tail, fash­ion, au­to­mo­tive and en­gi­neer­ing, food and bev­er­age, FMCG, e- com­merce, health­care, elec­tron­ics and tech­nol­ogy.

If the deal goes through, it will also help Snapdeal which is look­ing to shed its non­core as­sets in a bid to sur­vive in the hy­per­com­pet­i­tive e-com­merce mar­ket that in­cludes ma­jors like Flip­kart and Ama­zon. Last year, Snapdeal re­jected Flip­kart’s ac­qui­si­tion of­fer and said it would pur­sue an in­de­pen­dent strat­egy. In July, it agreed to sell its pay­ment wal­let Freecharge to Axis Bank for ` 385 crore.

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