The deal is anticipated to close in the next few weeks and may include the transfer of Vulcan’s work force into the Future Group within the deal, one of the sources mentioned. Another source, according to the topic, stated Future Group is excited about the deal since this may add more muscle into the retail giant’s own third party logistics operations.
The sources did not want to be recognized as the talks are personal.
Vulcan Express presents end-to-end logistics and supply chain solutions to retail businesses, especially e-commerce players in the country. It operates in over 100 cities throughout its distribution system. The Biyani-led group includes its third-party logistics service provider Future Supply Chain Solutions Ltd (FSCSL) which offers automated and IT-enabled warehousing, distribution and other logistics options.
FSCSL, that had increased Rs. 650 crore by way of IPO last month, has customers across sectors such as retail, fashion, automotive and engineering, food and drink, FMCG, e-commerce, healthcare, electronics, and technology.
If the deal goes through, it will also help Snapdeal which is looking to shed its non-core assets in an effort to live in the hyper-competitive e-commerce market that includes majors like Flipkart and Amazon. This past year, Snapdeal refused Flipkart’s acquisition deal and said it would pursue an independent strategy. In July, it consented to sell its payment wallet Freecharge to Axis Bank to get Rs. 385 crore.