Future Group Said to Be in Discussions to Acquire Snapdeal’s Logistics Unit

Kishore Biyani-led Future Group is in initial stage of discussions to buy Snapdeal's logistics arm - Vulcan Express - for about Rs. 50 crores as the former looks to strengthen its supply chain business, according to multiple sources. The deal is expected to close in the next few weeks and may include the transfer of Vulcan's workforce to the Future Group as part of the deal, one of the sources said. Another source, briefed on the matter, said Future Group is keen on the deal as this will add more muscle to the retail giant's own third-party logistics operations.

The sources did not wish to be identified as the discussions are private. When contacted, both Snapdeal and Future Group declined to comment.

Vulcan Express offers end-to-end logistics and supply chain solutions to retail companies, especially e-commerce players in the country. It operates in over 100 cities through its distribution network. The Biyani-led group has its own third-party logistics service provider Future Supply Chain Solutions Ltd (FSCSL) which offers automated and IT-enabled warehousing, distribution and other logistics solutions.

FSCSL, which had raised Rs. 650 crore by way of IPO last month, has customers across sectors like retail, fashion, automotive and engineering, food and beverage, FMCG, e-commerce, healthcare, electronics, and technology.

If the deal goes through, it will also help Snapdeal which is looking to shed its non-core assets in a bid to survive in the hyper-competitive e-commerce market that includes majors like Flipkart and Amazon. Last year, Snapdeal rejected Flipkart's acquisition offer and said it would pursue an independent strategy. In July, it agreed to sell its payment wallet Freecharge to Axis Bank for Rs. 385 crore.