Nippon Express Co., Ltd. ( TSE: 9062, the “Company” ), acting through its subsidiary Nippon Express ( South Asia & Oceania ) Pte. Ltd. has agreed to make an investment in Future Supply Chain Solutions Limited (“FSC”) (“Investment”). The Board of the Company, at its meeting held on September 20, 2019, approved the execution of a Share Subscription Agreement (“SSA”) and Shareholder Agreement (“SHA”) with FSC and a Share Purchase Agreement (“SPA”) with some FSC shareholders. FSC, listed on BSE Limited and the National Stock Exchange of India Limited, is among India’s leading logistics service providers and a part of the Future Group, India’s largest retail group.

The investment is subject to customary closing conditions and regulatory approvals.

- Objective of the Investment

The Nippon Express Group aims to become a logistics company with a significant presence in the global markets as laid out in the “Nippon Express Group Business Plan 2023 - Dynamic Growth” beginning from financial year 2018. An important part of the group’s core strategy is to focus on strengthening its India business to capitalize on the rapid growth expected in the Indian logistics market. The Indian logistics market is expected to have significant growth driven by key factors like 1) modernization of the road infrastructure network, 2) reorganization of traditional supply chain networks due to the implementation of GST ( Goods and Service Tax ) (*) and 3) consumption growth driven by a fast growing middle-income group.

Nippon Express first entered the Indian market in 2007 and currently focuses on international freight forwarding of cargo arriving in and departing from India. As a next step to further expand its India business, it is enhancing domestic logistics business in India to capture expanding domestic demand.

Headquartered in Mumbai, India, the Future Group is one of the largest business conglomerates engaged in modern retail trade with a pan-India footprint. The Future Group’s rapid growth in retail business is supported by FSC’s logistics capabilities. In a short span of time, FSC has established itself as one of the largest players in India, counting not only the Future Group as its anchor customer but also several fast-growing Indian and MNC customers.

The partnership with FSC will add complementary capabilities to Nippon Express and enable it to provide end-to-end logistics services to its customers resulting in the growth of its Indian logistics business.

(*) GST ( Goods and Services Tax ): Indirect tax levied on the supply of goods and services.

For details, please visit:

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- Outlook

The impact of the Investment on the consolidated performance of the Company for the fiscal year ending March 2020 will be minor.