Interglobe Enterprises has formed a 50:50 joint venture with United Parcel Service (UPS), making an entry into the logistics and cargo sector. Interglobe Enterprises also holds 37.82% stake in Indigo airlines. However, the joint venture is completely separate of Indigo’s operations the airline clarified. “The cargo arrangement between Interglobe Enterprise and UPS has nothing to do with us. That’s a standalone operation. They have their own agreements which have no impact on IndiGo,” CEO Ronojoy Dutta said in a post results call with analysts. Dutta said that IndiGo’s cargo business will continue to cater to all customers and not be selective about UPS.
“The business of UPS is more likely to focus on small shipments and surface transport. We are into consolidated shipments. These are two ships passing in the night. We don’t signal each other. We have nothing to do with each other,” he said.
While UPS had a joint venture with an affiliate of Jet Airways, since the demise of Jet Airways, the venture has been all but dead. India has been on the cards of global logistics giants. Sources said that the new venture with Interglobe will look to foray into all types of logistics services including warehouses, transportation and inventory management, and value-added services linked to the conveyance and shipment of all types of goods by air, land and sea.
