INDIA: Fung Capital to invest $30m in logistics firm
Fung Capital USA, the private equity firm headed by the bosses of global sourcing giant Li & Fung, is investing $30m in the logistics and supply chain company owned by India's Future Group.
The investment in a 26% stake in Future Logistic Solutions Ltd - which is being renamed Future Supply Chain Solutions - will help boost the company's infrastructure, technology platforms and expand its supply chain network.
The two firms are keen to stress, however, that while Fung Capital is owned by Victor Fung and William Fung, the controlling shareholders of the Li & Fung Group, the deal is unrelated to any of Li & Fung's companies.
The logistics firm currently services over 1100 retail outlets across India, managing more than 2.6m SKUs from 30 warehousing centres in India.
"We are building a world class supply chain infrastructure for the consumption products in India which is presently very limited, despite it being a critical support required in India's rapidly growing economy," said the unit's managing director Anshuman Singh.
"We will be investing in physical as well as technology infrastructure that will reduce the time-to-market and cost-to-market for fashion and apparel and other consumer categories."
The Indian logistics market is estimated to be about $100bn, with organised players having just 6% of the market.
Help test our new apparel sourcing tool.
- Rana Plaza four years on – Timeline of change
- Trump and Brexit get a dose of pragmatism
- Industry groups reaffirm commitment to Bangladesh
- Using worker surveys to drive supply chain change
- Where does VF supply chain sit in growth strategy?
- Nike filed patent for "reinforced denim"
- Gap unveils five-year sustainable fibres pledge
- Adidas and Reebok top transparency index
- US textile industry applauds Trump executive order
- Lenzing unveils new sustainability strategy
- Global market review of denim and jeanswear – forecasts to 2022
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Clothing Market in the Top 5 American Countries to 2021 - Market Size, Development, and Forecasts
- Myanmar - ISA Country Report