Direct Logistics buys Chinese company

China-India two way trade is set to reach $20 billion by 2008. Which is probably why Mumbai-based Direct Logistics India, a company that facilitates exports and imports by sea and air, has acquired a Chinese logistics company, Shenzhen Dida Logistics.

This is the first-ever acquisition by an Indian company in the Chinese freight forwarding industry.

Direct Logistics, which is in the process of setting up its own office in China, is currently into warehouse-to-warehouse international transportation and marine insurance, apart from cargo in and out from the ­country.

Mark Fernandes, chairman of Shipping and Aviation committee of Indian Merchants’ Chamber and former president of Bombay Customs House Agents’ Association said, ‘The reverse trend of Indian companies acquiring international companies has started, though it was overdue. Indian logistics companies need to strengthen their global presence for effective network of cargo transportation. Acquisitions will add value to Indian companies.’

The two-way trade, China-India, which was $18.7 billion in 2005 is growing at an average annual rate of 32%.