Delhivery’s Rs 52 Cr Investment for 4.75% Stake in Falcon Autotech
Delhivery, one of India’s leading logistics and supply chain solutions providers, has recently announced its plans to acquire an additional 4.75% stake in Falcon Autotech, a pioneer in warehouse automation solutions.
This strategic move comes as part of Delhivery’s ongoing efforts to strengthen its position in the rapidly evolving e-commerce and logistics industry.
The investment of approximately Rs 52 crore demonstrates Delhivery’s commitment to innovative technologies and its vision to revolutionize the supply chain landscape.
On Saturday, Delhivery declared that its board has accepted the plan to pay around Rs 52 crore to acquire an extra 4.75 percent of Falcon Autotech Pvt Ltd’s equity share capital. Following this transaction, Delivery will own 39.33% of Falcon Autotech in total.
“In its meeting on November 04, 2023, the Board of Directors of the Company considered and approved the proposal to purchase an additional 4.75% of the equity share capital of Falcon Autotech Private Limited, an Associate Company of Delhivery Ltd., from its executives and promoters for a total consideration of approximately Rs 52 crore,” the company stated in a regulatory filing. The agreement is set to expire on December 31, 2023.
As of March 31, 2023, Falcon Autotech, a warehouse automation company, had a net value of Rs 197.56 crore and an authorised share capital of Rs 2 crore. In FY23, the firm reported a turnover of Rs 280.70 crore.
According to Delhivery, the acquisition will significantly reduce project timelines, provide bespoke designs and workflows tailored to their needs, grant early access to new technologies and features, and act as a single integrator for automation, mezzanine, and TBCs, which will streamline project management and service support.
Today, Delhivery also disclosed its fiscal second quarter results. In the second quarter of FY24, it had a net loss of Rs 102.94 crore, down 59.5 percent from Rs 254.11 crore in the same time the previous year. The business reported operating revenue of Rs 1941.75 crore, up 8.1% from Rs 1796.10 crore in the second quarter of FY23.
Delhivery, founded in 2011, has emerged as a prominent player in India’s logistics and supply chain sector. The company offers a wide range of services, including last-mile delivery, warehousing, freight forwarding, and e-commerce fulfillment.
Over the years, Delhivery has grown exponentially, evolving into a comprehensive logistics solution provider with a vast network of delivery personnel, warehouses, and technology-driven systems.
Falcon Autotech, on the other hand, specializes in providing advanced warehouse automation solutions to businesses across various industries. With a focus on robotics and artificial intelligence, Falcon Autotech’s solutions are designed to optimize warehouse operations, enhance efficiency, and reduce operational costs. The company’s cutting-edge technologies have gained recognition both in India and on the global stage, making it an attractive investment for Delhivery.
Delhivery’s decision to acquire an additional 4.75% stake in Falcon Autotech reflects the company’s commitment to leveraging technology for streamlining its operations and enhancing customer service. The investment, totaling approximately Rs 52 crore, is expected to further strengthen Delhivery’s partnership with Falcon Autotech and facilitate collaborative efforts to integrate automation into its logistics and warehousing processes.
Benefits of the Investment
- Enhanced Operational Efficiency: By integrating Falcon Autotech’s warehouse automation solutions, Delhivery aims to improve its operational efficiency significantly. Automated systems can help optimize inventory management, reduce order processing times, and enhance order accuracy.
- Faster Order Fulfillment: The use of robotics and AI in warehouses can lead to quicker order picking and packing, resulting in faster order fulfillment and improved customer satisfaction.
- Cost Reduction: Automation can lead to reduced labor costs, lower error rates, and decreased energy consumption, contributing to cost savings in the long run.
- Scalability: As Delhivery continues to expand its operations to meet the growing demands of the e-commerce industry, automation can offer scalability, allowing the company to handle higher volumes of shipments efficiently.
- Competitive Advantage: By investing in cutting-edge technology, Delhivery can gain a competitive edge in the market, offering superior logistics services to its customers and attracting more businesses to its platform.
The logistics and supply chain industry in India is undergoing a rapid transformation, driven by e-commerce growth, changing consumer preferences, and evolving market dynamics. Delhivery’s strategic investment in Falcon Autotech positions the company well to adapt to these changes and stay ahead of the competition.
As e-commerce continues to grow and customer expectations evolve, the demand for efficient and technologically advanced logistics solutions is expected to rise. Delhivery’s commitment to innovation through partnerships like this one demonstrates its dedication to meeting these evolving demands and remaining a leader in the industry.
Delhivery’s decision to acquire an additional 4.75% stake in Falcon Autotech and invest approximately Rs 52 crore is a significant step toward enhancing its capabilities in the logistics and supply chain sector.
By leveraging Falcon Autotech’s warehouse automation solutions, Delhivery aims to improve operational efficiency, reduce costs, and gain a competitive edge in the rapidly evolving e-commerce landscape.
This strategic move positions Delhivery as a forward-thinking logistics provider committed to delivering top-notch services to its customers and adapting to the changing demands of the industry.
