FM LOGISTIC ACQUIRES SPEAR LOGISTICS, MAJOR PLAYER IN INDIAN LOGISTICS MARKETGroup
FM LOGISTIC ACQUIRES SPEAR LOGISTICS,
MAJOR PLAYER IN INDIAN LOGISTICS MARKET
The international group FM Logistic has just become majority shareholder of Spear Logistics, one of the leading Indian logistics companies. The shares were acquired from a private investor who had owned them since 2009. The two companies are uniting their strengths and complementarity in the aim of providing optimum services to their respective customers in the Indian market.
FM Logistic and Spear Logistics will operate in the strategic sectors of e-commerce, telecommunications, retail, consumer goods, industry and automotive. As key territorial players, the companies have the same objectives: customer proximity and operational excellence.
Spear Logistics is ranked among the TOP 5 Indian providers. The combination of its excellent reputation and FM Logistic’s expertise constitutes a strategic alliance in the Indian market.
A recognised national brand
Spear Logistics was founded in 2001. It is one of the leaders in Indian logistics with a revenue of 18 million euros (by the end of financial year March 2016). The company provides a wide range of services: warehousing, distribution, transport management and high value-added services such as co-packing.
With its 1 600 professionals, Spear Logistics operates from 75 warehouses located in 23 towns in 12 states: Mumbai, New Delhi, Pune, Hyderabad, Ahmedabad, Bangalore, Chennai, Nagpur, Kolkata... The logistics provider has 270 000 square metres of warehousing space and works with around a hundred partners for its transport and distribution business. Thanks to the competency and skills of its expert teams, Spear became a key player, awarded for its operational excellence (three prizes in 2015 including the company of the year award attributed by the Indian Institute of Materials Management).
An international player able to anticipate the needs of emerging countries
True to its "Ambition 2022" strategic plan, FM Logistic is supporting its customers’ growth by expanding to new areas in emerging countries: setting up base in China in 2005 and an acquisition in Brazil in 2013.
In 2015, the Indian economy experienced a growth rate of over 7 %. By 2030, it will be the biggest consumer market worldwide and the third largest economy in the world. Furthermore, the Indian logistics market is at the dawn of an unprecedented move to reorganization and consolidation led by the new tax harmonisation law for products and services (GST) and by the swift development of e-commerce.
In such a context, the country constitutes a real launchpad and an extraordinary opportunity for the development of FM Logistic in Asia.
Bringing skills together
In addition to its in-depth knowledge of the diversity and complexity of the Indian market, Spear Logistics brings with it nationwide coverage and a customer base comprised of major national and multinational companies. With this in mind, Spear Logistics’ current executive team will continue to run the company. One of the founders, Gautam Dembla, will take on the role of Managing Director.
FM Logistic will be bringing its international network into the partnership, along with its reputation, its cutting-edge working tools and all the latest technologies in logistics innovation.
Together, FM Logistic and Spear Logistics will prepare the groundwork in order to implement a logistics plan in line with tax harmonisation. This project will lead to the creation of regional distribution centres that FM Logistic and Spear Logistics will manage from multi-client platforms, which will be set up near the main Indian cities.
“This alliance of skills enables us to offer our customers a global and reliable service - from warehousing to distribution and transport, covering all distribution channels, including e-commerce, for industrials and retailers, and for all sectors”, says Gautam Dembla, Managing Director of Spear Logistics.
« With the acquisition of Spear Logistics we are integrating a company of great logistics professionals», affirms Jean-Christophe Machet, CEO of FM Logistic. « These new teams constitute an extraordinary asset in meeting the requirements of our customers in a major FMCG market. »