The deal is expected to close in the upcoming few weeks and may include the transport of Vulcan’s workforce to the Future Group within the deal, one of the sources mentioned. Another source, briefed on the matter, said Future Group is keen on the deal since this may add more muscle to the retail giant’s own third-party logistics operations.
The sources didn’t wish to be recognized as the discussions are private.
Vulcan Express presents end-to-end logistics and supply chain solutions to retail companies, especially e-commerce players in the nation. It works in over 100 cities throughout its distribution system. The Biyani-led group includes its third-party logistics service supplier Future Supply Chain Solutions Ltd (FSCSL) that offers automated and IT-enabled warehousing, distribution and other logistics solutions.
FSCSL, which had raised Rs. 650 crore by means of IPO last month, has customers across sectors like retail, fashion, automotive and engineering, food and drink, FMCG, e-commerce, healthcare, electronics, and engineering.
If the deal goes through, it will also help Snapdeal which is looking to lose its non-core assets in a bid 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 sell its pocket Freecharge to Axis Bank to get Rs. 385 crore.