Germany headquartered Rhenus Group has raised its holding in the Indian logistics joint venture with local partner Western Arya Group to 49 per cent. The transaction terms were not disclosed but the firm said the deal involves merger of Rhenus’ existing domestic trucking activity into a joint venture with Aryas.
Three years ago Rhenus had acquired 25 per cent in Pro Logistics India, a Western Arya Group company. This was renamed as Rhenus ProLog Logistics Ltd. Pro Logistics operated in South and Southeast Asia with its own offices in Singapore, the Philippines, Malaysia, Thailand and India. The company has been a partner for Rhenus Freight Logistics, particularly in the air and ocean divisions and the deal added revenues of $50 million and 600 employees to Rhenus.
Aryas continued to run their remaining business under Mumbai-based Western Arya. The latest deal involves merger of Rhenus ProLog Logistics with Western Arya which has been now rechristened as Rhenus Logistics India Ltd.
Aryas will own 51 per cent in the JV and will be leading the operations under Rhenus banner. The board members of the JV comprise Vivek Arya, managing director; Parikshit Arya, joint managing director; and Uwe Oemmelen, Rhenus’ representative board member.
This JV will enable Rhenus to strengthen its presence in India and also help develop the market in Asian region for the Rhenus brand.
Klemens Rethmann, CEO, Rhenus Group, said, "Through the Arya Group we now have our own services in the air, ocean, customs clearance, distribution and third-party logistics in India. As a result, we will be able to offer our customers more comprehensive services in India.”
Arya, who is managing director, Rhenus Logistics India Ltd, said, "With this merger and joint venture, we are able to expand our presence in European sub-continent and Asian countries.”
Rhenus Logistics India has presence across all major gateways in India with capabilities to offer freight forwarding, warehousing and distribution, foreign trade management services, customs clearance across gateways and other transport related services through former Western Arya transport network.
The Rhenus group has an annual turnover of €4 billion and employs over 24,000 people at more than 350 locations worldwide.
(Edited by Joby Puthuparampil Johnson)