Logistics company Budget Group today said it has tied up with global firms FARDAR Express, Network Courier and AJ Worldwide for wider reach, and the consortium plans to invest about USD 12 million into the partnership.
Apart from this, Budget Group also plans to invest another USD 3-5 million in next 5 years, the company said in a statement.
"Budget Group has tied up with world's top international logistics companies - FARDAR Express, Network Courier and AJ Worldwide - for a wider reach across China, Hong Kong, Singapore, the US and European markets.
"The international consortium plans to invest close to USD 12 million through credit facility & investment into this partnership," it said.
This will expand its reach to the international network of 11 more countries.
Driven by growth in the manufacturing sector and improving infrastructure, the organised logistics in the country is projected to expand at 15-20 per cent CAGR over next five years, the company said.
Indian logistics sector has grown at a rate of 15 per cent, it said adding the sector "is poised for accelerated growth, led by improvement in transport infrastructure, increased e-retailing penetration, impending GST implementation, and other initiatives like Make in India."
"The Make in India campaign and proposed GST Bill are bound to impact the sector's performance and will help the logistics industry," said Budget Group Chairman Manoj Kumar.
However, in comparison to its global peers, Indian logistics industry still lags on account of infrastructure constraints, he said.
The Group's Managing Director, Satdev Kataria said, "as we scale up our business and move up in the value chain for specialised tasks, our national and international competence will further improve and will help serve the nation in a better manner."
FARDAR Group Chairperson Ma Li Yu said India has huge opportunity for transportation sector, especially in cargo and logistics space.
"There is a huge opportunity for international collaboration to stay connected in the cross national economy of cargo and logistics space. We feel really optimistic with our alliance with Budget Group," Ma said.
