Release Date: 31 August 2006
Release ID: 453
TNT N.V. today announced the acquisition of ARC India Limited which operates under the trade name Speedage Express Cargo Services, one of the leading road express companies in India.
This acquisition is a key component of TNT's Focus on Networks strategy as announced in December 2005. Acquiring Speedage is in line with TNT’s strategic objective to become the leading provider of express deliveries in the emerging markets in Asia, specifically India. Combining Speedage’s strong domestic road network with TNT’s international and domestic networks will form a powerful platform for further expansion in the fast growing Indian express market.
Mr. Peter Bakker, Chief Executive Officer of TNT N.V. said: “We are pleased to announce another excellent step in the implementation of our Focus on Networks strategy today. TNT will gain a top 3 position in the fast growing Indian domestic road express market with the acquisition of Speedage. The combined revenues for TNT in India after this acquisition will be approaching € 100 million in 2007. We believe that the combination of Speedage road based capabilities with TNT's international express operations will form the first integrated and strongest network available in India. Furthermore, it clearly complements our network strategy in Asia".
Mrs. Marie-Christine Lombard, Group Managing Director of TNT’s Express division, said: "The road based Express segment is projected to more than quadruple in the coming decade. Furthermore, the sustainable economic growth in India, major government investments in infrastructure and an opportunity to leverage on Europe being the largest trade partner with India, should support us to reach our objective to become the market leader in Express in India by 2010.”
Founded in 1995 and with an annual profitable turnover of Euro 17 million in FY 2005 / 06, Speedage has a strong and impressive list of customers, which includes global players, large and medium sized companies. This acquisition will add 514 depots, 26 transit hubs, 730 vehicles and 1,195 employees (and approx. 1,300 sub-contracted staff) to TNT’s existing resources enabling TNT to offer a comprehensive network covering all parts of India.
“Speedage is a result oriented company that has established a substantial network in India. With a 60% growth in its revenue over the past year, it is one of the fastest growing companies in the road express industry. This acquisition will allow TNT to extend the integrated air and road products spanning across ‘time critical’, ‘day definite’ and special services to a broad range of customers”, said Abhik Mitra, Managing Director, TNT-India.
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