Rahul Bhatia-led InterGlobe Enterprises and Atlanta-based UPS on May 26 announced a joint venture to cater to B2B logistics services in various segments, including automobiles, pharmaceuticals and electronics, in the Indian market. The joint venture entity — MOVIN — will be based out of Gurugram and will have representation on its board from both UPS and InterGlobe Enterprises.
MOVIN will offer day-definite, express as well as time-definite solutions, which would help businesses with better predictability and competitiveness to integrate into the global value chain. In an interaction with PTI, InterGlobe Enterprises Director J.B. Singh said the opportunity in the domestic B2B segment is large and would continue to grow significantly.
"More importantly, this express segment where we are going to operate (will grow). India will need more excellence, more transparency, more predictability for businesses to become efficient. So we see this segment growing enormously," he stated. He noted that the JV firm, with its separate board and management team, will have presence across various sectors, including auto, pharma, healthcare, apparels, electronics and e-commerce B2B among others.
While declining to share details about the investments in the JV and its structure, Singh noted that it would have presence across the country. "MOVIN has genes of InterGlobal and UPS, both organisations who know how to build scale. India is about scale, so MOVIN will build scale in India," he said.
The JV entity has already started operations in Delhi, Mumbai and Bengaluru, he added. When asked if the new brand would have any sort of connection with other group entities like IndiGo, Singh said: "No. It (MOVIN) has a separate board, separate investors. We are operating in a different market. We will of course work with multiple suppliers on land and air and IndiGo will be one of the suppliers." He noted that India's growth towards a $5 trillion economy will be largely supported by the growth of local businesses and logistics, which are key contributors to India's economy.
"I am confident that InterGlobe's deep understanding of the Indian market, combined with UPS's 114 years of logistics expertise will make this venture a success," Singh said. The partners are certain that the foray into logistics with MOVIN will contribute significantly to the rapid development and growth of businesses, especially small and medium enterprises, in the country, he added.
Leveraging UPS' global logistics expertise combined with InterGlobe's deep understanding of the Indian market, MOVIN will build technology-backed solutions that will link companies across the country to international businesses with speed, reliability and enhanced digital customer experience. The JV will offer seamless integration across air and ground networks to B2B customers, enabling an uninterrupted flow of goods backed by consistent, predictable and responsive operations.
"Together, we will empower local businesses to grow and connect them to trade opportunities around the world," UPS President Indian subcontinent, Middle East and Africa, Ufku Akaltan said. With a strategy of customer-first, people-led, innovation-driven, UPS is further expanding its global network, including healthcare solutions, through a unique partnership that will create a suite of services to serve B2B customers' need to grow, he added.
Akaltan noted that India is a very important high-growth market for UPS. The company has been operating in the country for the last 30 years. "UPS international is focussing on export and import of services and MOVIN would focus on B2B domestic services. Actually, it is a very strong combination… MOVIN complements UPS' presence in India," Akaltan said.
The JV partnership shows the company's commitment and belief in the future of India which is very bright, he noted. UPS reported a revenue of $97.3 billion in 2021. It provides a broad range of integrated logistics solutions for customers in more than 220 countries and territories.
InterGlobe Enterprises has presence in aviation, hospitality and travel-related services.