CJ Logistics reinforces ties with India’s Tata Motors

South Korea’s CJ Logistics on Friday said its Indian subsidiary CJ Darcl has signed a memorandum of understanding with Tata Motors of India on forming a strategic partnership.

The signing ceremony on Wednesday in New Delhi, India, was attended by CJ Logistics CEO Kang Sin-Ho and Rajesh Kaul, vice president for sales and marketing of Tata Motors’ Commercial Vehicles Business Unit Division.

An affiliate of India's Tata Group, the automaker supplies transportation vehicles to CJ Darcl.

Under this MOU, CJ Darcl will reinforce logistics collaboration with Tata Motors.

They will cooperate in the operation of green transportation vehicles, simplify the comprehensive procedures for vehicle maintenance service by Tata Motors, boost CJ Darcl's vehicle operation efficiency and diversify logistics services.

As a high growth market, the Indian economy is expected to rise over 6% per year on average through 2027. Under the ongoing project Make in India for developing domestic manufacturing, high growth potential is forecast for the logistics sector of the world’s most populous country.

In 2017, CJ Logistics entered the Indian logistics market by acquiring a 50% stake in Darcl, India's largest transportation company, and has since steadily expanded its business there.

Based on its network of over 200 logistics bases, CJ Darcl provides comprehensive logistics service throughout India including rail, sea, transportation of heavy items and contract logistics.

"By boosting logistics cooperation with Tata Motors, we will solidify our leading position on the Indian market and further raise our status as a global comprehensive logistics company," CEO Kang said.

Write to Hun-Hyoung Ha at hhh@hankyung.com