Companies

Gati to form JV with KWE of Japan

Supply-chain solutions provider Gati has decided to enter into a joint venture agreement with Japanese firm Kintetsu World Express (KWE). Under the agreement, express distribution supply-chain businesses of both the firms will be merged.

As part of the agreement, Gati will hold 70 per cent stake in the joint venture, Gati-Kintetsu, while 30 per cent will be held by KWE.

Gati's entire express distribution and supply-chain (EDSC) business will move into the joint venture through a business transfer agreement, a process that is likely to take another two months for completion.

The Gati-KWE joint venture is aimed at combining Gati's expertise in third-party logistics and express distribution in the country with KWE's freight forwarding expertise and global customer base.

The venture would also invest in high-end third-party logistics facilities that would include temperature-controlled warehouses.

KWE will invest Rs.267.70 crore for its 30 per cent stake in the joint venture through a combination of primary and secondary acquisition of shares and the funds raised from the transaction would be used to reduce debt.

KWE has a significant client base in Japan, including some of the top companies in electronics and IT industries.


Our code of editorial values

This article is closed for comments.
Please Email the Editor

Printable version | Sep 18, 2021 4:46:52 PM | https://www.thehindu.com/business/companies/gati-to-form-jv-with-kwe-of-japan/article2889766.ece

Next Story