Future group in talks to buy Snapdeal's logistics arm Vulcan Express

As per the report, Vulcan Express, which manages about half of Snapdeal's deliveries and shipments, replaced gojavas as the primary logistics partner when it was formed about three years ago.

Biyani owned Future Supply Chain raised Rs 650 crore by listing on the stock exchanges. Image source: Company website

India's largest retailer, Future group is in talks to buy online retail platform Snapdeal's logistics arm Vulcan Express for about Rs 50 crore in an all-cash deal, reports ET.

As per the report, Vulcan Express, which manages about half of Snapdeal's deliveries and shipments, replaced gojavas as the primary logistics partner when it was formed about three years ago.

The company, currently operational in more than 100 cities, offers logistics and supply chain solutions for retail and consumer companies, which could help Kishore Biyani's wider strategy of integrating Future Group's digital and brick-and mortar retail businesses.

"It will be a distress sale and the final valuation could be less than Rs 50 crore. The contours of the deal, including the size and through which company it will be done, are still being worked out," said people aware of the development to ET.

Biyani owned Future Supply Chain, which is one of India's largest third-party logistics and supply chain firm, raised Rs 650 crore by listing on the stock exchanges, a couple of weeks back. The company caters to clients across consumer, food and beverages, ecommerce and electronics and gets about 63% of its revenue from group entities.

Vulcan Express on the other hand provides logistics including warehousing, transportation, last-mile distribution and reverse logistics as well as quality control and refurbishment of goods, for Snapdeal.

According to a person, associated with the deal, said, "the deal will also benefit Snapdeal for its 2.0 strategy of creating an asset-light model and focussing on the ecommerce business. Vulcan will continue to be one of the logistics partners for Snapdeal even under the new owner."

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