Logistics Company Expands Reach & Efficiency with Acquisition of Ecom Express Ltd
Delhivery Limited has informed shareholders of its intention to acquire Ecom Express Limited to increase operational capacity.
Delhivery Limited has informed shareholders of its intention to acquire Ecom Express Limited to increase operational capacity. The acquisition will lead to scale advantages, which will increase the operating efficiency of the company. Delhivery has constantly provided superior service quality and profitability through its integrated network model, larger scale, and technology investments. Approval of the acquisition is subject to the Competition Commission of India. Ecom Express reported a PAT loss of Rs. The company recorded a PAT loss of Rs 398 crore for 9MFY25 which included a non-cash loss on fair valuation of financial liability. The integration will be margin accretive for Delhivery as the company does not expect any substantial corporate overhead costs to support the acquired volume. The company plans to reduce its network footprint and corporate overheads to a level that is commensurate with the combined business and expects incremental profits from retained revenue to offset temporary costs of network and overheads rationalization.
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Delhivery Limited is one of the leading logistics companies in India, which provides a wide range of services including express parcel delivery, PTL and TL freight, warehousing and supply chain solutions. The company operates an asset-light business model by using fleet owners and delivery agents. Delhivery was the largest logistics company by revenue in FY24 and had operations in over 220 countries and territories. The express parcel services segment contributed 58.7% to FY24 revenue, with the company shipping 740 million parcels. The investments made by Delhivery in infrastructure and technology have helped the company to grow its network and services. The company has 29 sortation centers and 111 gateways with a daily sort capacity of 7.1 million shipments. Delhivery uses data intelligence capabilities to support real-time operational decision-making, processing large amounts of transaction and environmental data. The company is expanding its infrastructure and fleet to meet its growth plans.
The company has a market cap of over Rs 18,000 crore. Investors should keep an eye on this mid-cap logistics stock.
Disclaimer: The article is for informational purposes only and not investment advice.