April 4, 2019
Daifuku said that robust growth in the economy has brought a surge in need for automation in manufacturing and logistics
Daifuku said that owing to the current strong demand there was a growing need to establish a localized manufacturing network
Daifuku’s purchase comes months after LOGOS, a multinational logistics firm, bought 2 logistics parks in Chennai for US$99 million
India’s logistics sector is expected to attain a valuation of around US$215 billion by 2020, from around US$160 billion in 2017
Daifuku Co Ltd, a Japanese material-handling equipment company, said on April 4 that it has completed the acquisition of Hyderabad-based Vega Conveyors & Automation Pvt Ltd. The Japanese logistics firm is looking to expand in the fast-growing Indian market with the purchase. Vega is involved in consultation, design, manufacturing, installation and servicing of conveyors and other material handling equipment in India. Daifuku said that in recent years, the robust growth of the Indian economy has brought a surge in need for automation within the manufacturing and logistics sectors.
The Japanese company had established a sales office in Mumbai in September 2016 for the Factory and Distribution Automation (FA&DA) Division of its Indian subsidiary, Daifuku India Pvt Ltd. Daifuku said that owing to the current strong demand there was a growing need to establish a localized manufacturing network in India. Generating synergy with Vega’s development and manufacturing bases, Daifuku aims to expand its business in India and other markets within Asia and Oceania. Daifuku added that merger of resources with Vega will help expand manufacturing and distribution in Asia.
Daifuku’s purchase comes months after LOGOS, a multinational logistics firm, bought two logistics parks in Chennai from Casagrand Group for more than US$99 million. LOGOS expect the Indian capacity to boost its Asia Pacific portfolio. Increasing number of manufacturing and infrastructural activities around India has offered opportunities in India’s logistics and transportation space. Logistics sector is expected to attain a valuation of around US$215 billion by 2020, from around US$160 billion in 2017. The growth is anticipated to draw investment of around US$500 billion by 2025.