Blue Dart soars on DHL tie-up
News Clip : The Business Standard
Friday, 13th September 2002
The Blue Dart scrip price hit the 20% upper circuit filter at Rs 75.10 on news of its entering into a sales pact with DHL Worldwide. The scrip opened at Rs 64.05, while the low for the day was Rs 62.70. Volumes on the National Stock Exchange and Bombay Stock Exchange were of the order of 21,033 shares and 56,850 shares, respectively.
The company announced that it has formed a sales tie-up with DHL, effective October 1, 2002. The tie-up will provide Blue Dart with the size of DHL, its logistics support along with its reach.
Currently, Blue Dart has an agreement with another large international carrier, FedEx, which will end on September 30, 2002. According to reports, the two partners decided to part following differences over pricing.
The shares of the company lost ground from July this year when news of the imminent split with Fedex was doing the rounds. Between July and September, the scrip lost more than 26% to the Rs 60 levels from the Rs 85 levels at which it was ruling.
The pact reached today with DHL has come as a much needed boost for both the company as well as the scrip. The company's international business contributes around 15 to 19% to its total turnover, the rest coming from its domestic activities.