The deal is expected to close in the upcoming few weeks and may include the transport of Vulcan’s work force into the Future Group within the bargain, one of the sources said. Another origin, briefed on the matter, stated Future Group is excited about the deal since this may add more muscle to the retail giant’s own third-party logistics operations.
The sources did not wish to be recognized as the talks are personal.
Vulcan Express presents end-to-end logistics and supply chain solutions to retail companies, especially e-commerce players in the country. It operates in over 100 cities throughout its distribution network. The Biyani-led group has its third-party logistics service supplier Future Supply Chain Solutions Ltd (FSCSL) that offers automated and IT-enabled warehousing, distribution and other logistics options.
FSCSL, which had raised Rs. 650 crore by way of IPO last month, has clients across industries such as retail, fashion, automotive and engineering, food and drink, FMCG, e-commerce, health care, electronics, and technology.
If the deal goes through, it will also help Snapdeal that’s looking to shed its own non-core assets in an effort to live in the hyper-competitive e-commerce market that includes majors like Flipkart and Amazon. Last year, Snapdeal refused Flipkart’s acquisition offer and said it might pursue an independent strategy. In July, it consented to market its payment wallet Freecharge into Axis Bank to get Rs. 385 crore.