SpiceJet announces transfer of logistics business to SpiceXpress

Budget airline SpiceJet today announced that it was transferring its cargo and logistics services with all the related assets and liabilities, including, know-how, trademark, licenses, franchises, customer contracts, distribution network etc on a slump sale basis to its subsidiary SpiceXpress and Logistics Private Limited. As per the last quarterly segment reporting by the company ended June 30, 2021, the logistics arm reported a net profit of INR 30 crore. The revenue increased by 285 per cent to INR 473 crore for the reported quarter as compared to INR 166 crore in the same quarter last year.
“The proposed transfer of business to SpiceXpress will allow the new company to rapidly grow its innovative logistics platform and its unique fulfilment as a service business model.” said Ajay Singh, Chairman and Managing Director, SpiceJet
SpiceXpress will also be able to raise capital independent of SpiceJet to fund this growth, he mentioned.
Singh said he was confident that the performance of SpiceXpress as an independent entity will leverage and unlock significant value for SpiceJet and all its shareholders.