The Hindu : Business : Geopost to offer express parcel services

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Geopost to offer express parcel services

Special Correspondent

NEW DELHI: Geopost, a subsidiary of French state-run postal services firm La Poste, on Wednesday announced its strategic tie-up with Continental Air Express to set up a joint venture firm offering express parcel services in India.

The joint venture, DPD Continental Pvt. Ltd., will receive an investment of euro 4.66 million (about Rs. 31 crore) and offer its services in New Delhi, Mumbai, Bangalore, Chennai and Kolkata by year-end.

“We received the FIPB approval for investment of 2.8 million euro in the business, which will be invested by Geopost, while the balance will be invested by Continental,” DPD Continental CEO Gautam Nath told reporters here.

Joint venture

Geopost will hold 60 per cent in the joint venture and Continental Air the balance. The investment would be used for setting up offices and streamlining operations. “Our strategy globally has been to partner with airlines and fleet for delivery of packages and not investing heavily on assets. This is what we intend to follow in India,” Geopost Intercontinental CEO Wolfgang Lehmacher said.

The joint venture company will start operations in five cities.

“We will begin by offering international parcel service and look at the domestic service by the middle of next year,” Mr. Nath said.

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