Logistics player Budget Group on expansion spree
Budget Group is spreading its wings abroad through tie-ups with international logistics firms.
This home grown logistics firm on Saturday announced strategic alliances with China-based FARDAR Group, Singapore-based Network Courier and A.J. Worldwide to expand its reach to 11 more countries across Asia, South Asia, Europe and the US.
Manoj Kumar, Founder and Chairman of Budget Group said, “This international consortium plans to invest close to USD 12 million through credit facility and investments into this partnership.” Besides this investment, Budget Group on its part will invest another USD 3-5 million in next 3-5 years, Kumar said.
Given the growing nature of manufacturing industry and e-commerce penetration in India, there is huge opportunity for international collaboration to stay connected in the cross national economy of cargo and logistics space, said Ma Li Yu (Mary Ma), Chairperson FARDAR Group.
Mary Ma said, “We feel really optimistic with our alliance with Budget Group in India and hope, it will undoubtedly be a great way to grow both the companies and get access to global footprint on the go.”
Organised logistics industry in India is projected to expand 15-20% compounded annual growth rate (CAGR) over the next five years. Indian logistics sector has grown at a rate of 15% in the last five years.