Snapdeal’s parent Jasper Infotech has sold its logistics arm Vulcan Express to Future Group’s supply chain solutions subsidiary for Rs 35 crore. Kishore Biyani, Founder & Chairman, Future Group said in a statement that with this acquisition, the group plans to boost its last mile capabilities for its e-commerce and retail business.
Future Supply Chain’s network caters to Future Group as well as third-party customers for logistics. Its network is present pan-India, with 44 warehouses, 14 logistics hubs, 106 branches, and about 4.2m square feet of warehousing space. Incorporated in 2013, Vulcan has a network of
15 warehouses and 166 hubs, and maintains a total warehousing space of over 876,700 sq. ft. across India. Vulcan Express adds up operations across 100 cities, 2,000 pin codes, and 476 of its employees to Future Group. According to Future’s investor’s presentation, Vulcan reported turnover of Rs 1336 million for 9 months in FY18.
The Kishore Biyani’s group said in a statement that this transaction will also help Future Group to work on its new vision of ‘Retail 3.0, where the group plans to up its e-commerce game.
For Snapdeal, In July last year, the e-commerce player had put an end to months-long speculations of its merger with Flipkart, and said rather than merging it will bring out Snapdeal 2.0 and work things out. It had said that Snapdeal will sell its non-core assets, and will bring financial self-sustainability.
Jason Kothari, Chief Strategy & Investment Officer, Snapdeal, who led the recent sale of Snapdeal owned FreeCharge to Axis Bank and also led the sale of Vulcan Express, said that Snapdeal divests off an asset that is non-strategic in nature for Snapdeal 2.0, allowing it to focus its capital and management on its core e-commerce business.