DTDC enters China via alliance

Desk to Desk Couriers (DTDC) is entering China through a marketing arrangement with Hong Kong based Kerry Logistics.

Kerry is part of the group that owns the global chain of Shangri-La hotels.

Under the agreement, the two organisations will forward consignments to each other for delivery in their respective territories. The relationship will be taken forward depending on how well it grows.

"We see great potential in the Chinese market and this is an important addition to our global business which now has footprints in the US, UK and the UAE," Subhasish Chakraborty, CMD of DTDC, said.

DTDC has had an expansionary mindset ever since Reliance-ADAG acquired 40% stake in DTDC.

Charkraborty says he finds the group very supportive and eager to take with it all partners on a high growth path and has already been directing group business towards DTDC.

The courier firm, which has till now been delivering documents and parcels, wishes to handle larger express cargo and eventually become a full scope logistics service provider by taking over parts of the distribution and supply chains of firms. This will take it into the warehousing and trucking businesses.

ADAG is currently in discussion with Patel Roadways and Chakraborty made it clear that any acquisition the group makes in this sector will be under the DTDC umbrella. DTDC has its won internal resources of Rs 12-15 crore and will easily be able to access another Rs 40 crore for acquisition purposes.