Is Future Group buying Snapdeal's logistics firm?

There is a buzz going around that Future Group is in talks to buy Snapdeal's logistics arm Vulcan Express. The deal will be an all-cash and it would cost about Rs 50 crore.

Vulcan Express was formed about three years ago to replace gojavas as the primary logistics partner. The firm currently manages about half of Snapdeal's deliveries and shipments and is operational in more than 100 cities, offering logistics and supply chain solutions for retail and consumer companies.  

Company sources close to the development said that the deal will be a distress sale and the final valuation could be less than Rs 50 crore. The nature of the deal, including the size and through which company will it be done are still being worked out.

Vulcan Express provides logistics services, including warehousing, transportation, last-mile distribution and reverse logistics as well as quality control and refurbishment of goods for Snapdeal, smaller retailers and high-value product sellers such as cosmetics firms.

Biyani-owned Future Supply Chain is at present one of India's largest third-party logistics and supply chain firms. It recently raised Rs 650 crore by listing on the stock exchanges. The decade-old company caters to clients across consumer, food and beverages, ecommerce and electronics and has 44 distribution centres covering 4 million square feet of space and 105 branches servicing 11,228 pin codes in the country.

Tags: Future Group, snapdeal, snapdeal logistics arm vulcan express, snapdeal logistics arm, Vulcan Express, varindia