Patel Logistics inks JV with Dubai co to launch e-commerce arm

Leading logistics player Patel Integrated Logistics today signed a joint venture agreement with Dubai-based Fetchr to launch a dedicated e-commerce arm named DeliverEx.
"We have signed a letter of intent with Fetchr to launch a 51:49 JV called DeliverEx to dedicatedly serve the e-commerce space both in the B2B and B2C segment," Patel Logistics Executive Vice-Chairman Areef Patel told PTI.
He said the companies will together invest Rs 40 crore in the new venture which will be launched over the next two months.
"We hope to have 20-25 branches to begin with and take the branch network to around 200 over the next two years," Patel said, adding his company will own 51 per cent in the new entity which will be based in Mumbai.

Fetchr provides cutting edge technology for e-commerce and related services. It is a leading operator in the West Asian markets and will bring in technology for the JV.
Meanwhile, Patel Logistics today reported a 16.2 per cent jump in net profit at Rs 2.37 crore, while revenue rose 8.6 per cent to Rs 122.22 crore for the three months to June.

"We continue to maintain a positive long-term business outlook on the back of strong business fundamentals and increased focus on new-age opportunities like e-commerce delivery.
"Going ahead, GST rollout will change the dynamics of the logistics sector with supply chain efficiencies driving the demand paradigms in the e-commerce space," Patel said.

The company has decided to go for a rights issue to part fund the new JV, Patel said.
During the quarter, the company also entered into a JV with Nationwide Group-promoted Pivot Logistics in Saudi Arabia to enter the GCC markets. The JV will begin operations by 2017.