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Future Group may buy Snapdeal's logistics arm for Rs 500 mn: Sources

According to one source, the deal is expected to close in next few weeks and may include transfer of Vulcan's workforce to Future Group as part of the deal

Press Trust of India  |  New Delhi 

Kishore Biyani. File Photo: Kamlesh Pednekar
Kishore Biyani. File Photo: Kamlesh Pednekar

Kishore Biyani-led is in the initial stage of discussions to buy Snapdeal's logistics arm -- -- for about Rs 500 million as the former looks to strengthen its supply chain business, according to multiple sources.

The deal is expected to close in the next few weeks and may include the transfer of Vulcan's workforce to the as part of the deal, one of the sources said.

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

The sources did not wish to be identified as the discussions are private.

When contacted, both and declined to comment.

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 (FSCSL) which offers automated and IT-enabled warehousing, distribution and other logistics solutions.

FSCSL, which had raised Rs 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,

If the deal goes through, it will also help which is looking to shed its non-core assets in a bid to survive in the hyper-competitive e-commerce market that includes majors like Flipkart and Amazon.

Last year, rejected Flipkart's acquisition offer and said it would pursue an independent strategy. In July, it agreed to sell its payment wallet Freecharge to for Rs 385 crore.

First Published: Thu, January 04 2018. 00:50 IST
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