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This is an archive article published on April 17, 2010

Mukesh Ambani flies into aviation space,invests in Deccan 360

Mukesh Ambani-led Reliance Industries,India’s largest listed company,has forayed into the aviation space as a “strategic investor” by acquiring over 26 per cent stake in Captain Gopinath-founded cargo airline Deccan 360....

Mukesh Ambani-led Reliance Industries,India’s largest listed company,has forayed into the aviation space as a “strategic investor” by acquiring over 26 per cent stake in Captain Gopinath-founded cargo airline Deccan 360. While the companies did not disclose the quantum of investment,RIL said that a wholly-owned subsidiary would provide “growth capital” for the new cargo airline.

“This investment will help Deccan 360 increase the air and surface network coverage across the country. Deccan 360 will introduce new services and systems to India’s express end-to-end supply chain logistics space in both business-to-business and retail sector,” Deccan said. The investment is being made by a wholly-owned subsidiary of Reliance Industries. RIL’s stake would be over 26 per cent,but below 50 per cent,Gopinath said. He,however,declined to comment when asked about the capital infused by Reliance Industries.

Mukesh Ambani,chairman and managing director,Reliance Industries,said,“We believe that our collaboration with Deccan 360 will see a transformation in the logistics domain in India. I have full faith in Capt Gopinath and his team to make this a big success. We are sure that this initiative will propel the customer experience to the next level in India in the logistics domain.”

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Deccan 360 is the first logistics company in India to adopt and develop a hub and spoke model. It has appointed national service providers on a franchisee model and has already set up over 80 service centers and eight surface hubs to service the operations. It has currently deployed eight freighter aircrafts,covering 15 airports,with a fleet of over 300 trucks and 850 vehicles nationwide. It has a capacity of more than 300 tonnes per night by air,with over 60 warehousing hubs,delivering overnight services to 50 cities,all driven by over 60 franchisees nationwide.

Gopinath,chairman and managing director,Deccan 360 said,“Deccan 360’s strategic partnership with Reliance will enable us to realise our dream faster — a dream of creating world class logistics to reach every nook and corner of India. Our air and surface network would open up backward reaches of India and integrate these with the metros. This logistics capability will help setting up both small scale industries and large manufacturing centres wherever resources are available and in turn reduce cost of the product and expand the consumer base.” Deccan 360 has integrated a multi modal capability ensuring clock-work precision in its operations and offers a never before reach.

The core of Deccan 360’s hub and spoke model is the state-of-the-art hub being developed across a total area of 50 acres at MIHAN,Nagpur. This central hub in Nagpur will form an extensive state-of-the-art multimodal (surface and air) storage,transportation and delivery network bringing connectivity to every corner of the country. To ensure enhanced customer service,a central call centre has been set up in Bangalore.

Deccan 360’s pan India air and surface transportation network supports an extensive service portfolio catering to differentiated express transportation needs of various industry verticals — pharmaceuticals,machinery,manufacturing,retail,electronics,textiles and banking depending on the time and value criticality of the products they ship.

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“Unlike other express companies,Deccan 360’s focus will be on delivering innovative customised express solutions nationwide. This would include reducing transit times between small towns and the rest of the nation,” he said.

Gopinath is credited with pioneering low-cost passenger airline service in India and had previously founded Air Deccan,the country’s first budget air carrier that he later sold to Vijay Mallya-led Kingfisher Airlines.

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