Gati Limited, India's leading Express Distribution and Supply Chain Management Company, has entered into a strategic alliance with Amsterdam based General Logistics Systems (GLS), one of the three largest parcel service providers in Europe. The alliance forms a crucial part of Gati's campaign to successfully penetrate and capture a significant market share in Europe by leveraging GLS International sales, logistical and support services. Gati also unveiled details of its new service, Gati Europe Express that will become operational in this quarter.
In the alliance with Gati, General Logistics Systems will act as a strategic partner for Gati in Europe providing easy access for Gati's customers in the region, while Gati will act as GLS' international strategic partner in India to better serve their customers in India . GLS serves 220000 customers throughout Europe , in 36 countries. It handles around 311 million parcels through 17800 vehicles and 32 transshipment points. It has reported revenue of 1.6 billion euros for FY 2006/2007 and currently employs 12000 employees.
Speaking to the media after signing the partnership agreement with GLS International, Mahendra Agarwal, Managing Director and CEO of Gati Limited said “We find the alliance with GLS very strategic for Gati. With the added benefits of GLS' infrastructure in Europe , their wider footprint across 36 countries and greater network flexibility, the GLS alliance will provide Gati's customers faster access and superior parcel services to Europe besides our existing market offerings in India and the Asia Pacific region. We believe that GLS is uniquely positioned to support our business efforts and expand our presence to the European markets."
Saadi Al-Soudani, Managing Director GLS International, said "The alliance with Gati is specially designed to provide both GLS and Gati customers the advantages of size, reach, flexibility along with infrastructure to provide unmatched service levels to each of its customers in India and Europe.”
"We are very pleased about our alliance with Gati and we are confident the reputation and quality of Gati brand will appeal to our clients and customers in Europe ." He added, “Through our new partner, Gati Ltd., our customers in Europe are linked to a leading express distribution and supply chain solutions company in India. This means we are improving their access to a promising market.”
With the launch of Gati Europe Express, Gati will connect businesses in India to Europe and GLS customers will find access to markets in India , even to the remotest of towns, as only Gati covers 594 out of 604 districts in India . The recently launched dedicated freighter service has established a vital link in Gati's multi modal network, enhancing its service performance levels to deliver shipments before noon to twenty major cities.
Our exports and imports in India are growing at 21% over last year. The share of imports from the European Union is about 16% of our total imports (US$ 29.80 bn) and exports to European Union is about 21% of our total exports which is equal to US$ 26.78 bn.
The Gati-GLS tie up will bring businesses in Europe and India under one banner and make connectivity a matter of choice and convenience.
Speaking further about Gati's alliance with GLS, Agarwal said “We are confident that this strategic alliance with GLS, one of the leading European players in Parcel, Logistics and Express, will open up new opportunities for our customers to do business in Europe . And in India Gati's leadership position will be further strengthened, and we will continue to stay ‘ahead in reach.”
Gati, owns one of the largest fleet on road in India with 4000 vehicles, a fleet of freighters, infrastructure, mechantronic warehouses and a multi modal network which will offer the customers a varied choice of mode to choose from, a portfolio of services and a service level of the highest order to deliver shipments against assured transit time and in tact. Gati has a very strong presence in the Asia Pacific Region with an established market presence in China , Hong Kong , Singapore , Sri Lanka , Thailand , Dubai and Nepal , and has experience in providing India centric solutions to customers in this region. In this strategic business move, Gati now sees an immense business opportunity to tap the market in Europe.
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