Nippon Express acquires Indian logistics company as subsidiary

Nippon Express recently acquired 51% of the outstanding shares of the Indian air/ocean cargo agent J I Logistics Private Limited ("JLPL"), signing a contract on February 22 to rename the company "Nippon Express (India) Private Limited" ("NE India") and finalizing the sale on April 2.

Since 2000, Nippon Express has set up representative offices in two Indian cities - New Delhi and Bengaluru (formerly Bangalore) - and engaged in air and ocean cargo operations through its local agent Jayem Impex Private Limited. In recent years, however, there has been a steady stream of Japanese automobile-related companies expanding into India, prompting expectations of increased factory equipment and parts shipments. In addition, India's rapid economic development is driving greater imports of consumer goods, and demand is rising for the transport of IT, electric and precision equipment from Japan, China and Southeast Asia as well as for local warehousing and distribution services. To meet this demand, Nippon Express decided to acquire JLPL so that it could provide its own customs clearance services.

The acquisition of JLPL will bring Nippon Express' network in India to 17 locations in 10 cities (Delhi, Bengaluru, Mumbai, Kolkata, Chennai, Hyderabad, Cochin, Trivandrum, Pune, Coimbatore) staffed by approximately 300 employees, making it the largest Japanese logistics company in the country.

This acquisition will also expand the Nippon Express Group to 355 locations in 204 cities in 37 countries as of April 2007.

• JI Logistics Private Limited
• Headquartered in Bengaluru (in the state of Karnataka), this company was established in September 2006 as a spinoff from Jayem Impex Private Limited, Nippon Express' longtime local agent, to handle transport-related operations.

	Company to be acquired	Changes after acquisition
Company name*	J I Logistics Private Ltd.	Nippon Express (India) Private Ltd
Location of head office	Bengaluru, Karantaka	Same
Capital	INR 10,000,000 (approx. 27.9 million yen)	Same
Shares	INR10 * 1,000,000 shares	Same
Date of establishment	September 2006 (February 1993 for JIPL)
Shareholder composition	Indian shareholders 100%	Nippon Express 51% Indian shareholders 49%
Directors	5	3 from Nippon Express 2 Indian directors
Executive officers	Mr. P. Krishna Murthy, President	Mr. P. Krishna Murthy, President Mr. Toshihisa Hayashi, Vice President (to be seconded from NE)
Nature of business	Customs clearance, air/ocean cargo forwarding	Air/ocean cargo forwarding, customs clearance, removals, warehousing
Locations	Head office and 17 locations in 9 Indian cities	Same
Employees	Approx. 300	Same
Sales	INR190 million (approx. 530 million yen) in 2006	INR359 million (approx. 1,000 million yen)

• Application pending on post-acquisition change of company name