DHL & Lemuir Consolidate Logistics Business in India

Plan to consolidate Joint Venture in India to become the leader in air and ocean freight, contract logistics and customs brokerage Mumbai, 24 May 2007 – DHL, the world’s leading express and logistics company, and Lemuir Group, pioneers in the Indian logistics industry, today announced that Deutsche Post World Net and Lemuir have planned to consolidate their joint venture which would be named – DHL Lemuir Logistics Private Limited – in India. Deutsche Post World Net will hold 76 percent stake in the joint venture with 24 percent being held by Lemuir. The consolidated joint venture will combine the businesses of DHL Danzas Lemuir Pvt. Ltd. and Exel India Private Limited, which recently acquired the Contract Logistics and Customs House Brokerage operations for general cargo from Lee & Muirhead Pvt. Ltd. This consolidation will position DHL as the leader in International Freight Forwarding, Supply Chain Management and Customs Brokerage in India. The consolidation will combine the expertise of three well established players in the logistics space in India. The consolidated logistics business will trade under the DHL brand as DHL Global Forwarding for the freight forwarding business and DHL Exel Supply Chain for contract logistics. It will lead to significant benefits for customers, including greater geographic spread, product and service leadership and enhanced offerings to meet all their logistics and supply chain requirements. Rajeev Rajadhyaksha, earlier Managing Director of Exel India Pvt Ltd, has been appointed as Managing Director of DHL Lemuir Logistics Private Limited and Christoph Remund has been appointed as Chief Operating Officer of DHL Global Forwarding. The formation of DHL Lemuir Logistics Private Limited was an outcome of Exel joining Deutsche Post World Net’s (DHL’s parent company) global fold in December 2005. Across the world, DHL has been working to bring together DHL's Global Forwarding arm and Exel as an integrated business. John Allan, global CEO, DHL Logistics said, “Exel joining the Deutsche Post World Net family in 2005 cemented our position as the world’s leading logistics group. Our in-country teams have over the past year been working to consolidate individual businesses in every market. Upon the completion of the consolidation and integration in India, the DHL Logistics business will be bigger, better and stronger. The combined expertise of three leading players in the industry and the strength of over 2000 employees and 150 facilities will position us as a clear leader in contract logistics, air and ocean freight forwarding and customs brokerage in India. India is of strategic importance to DHL in Asia Pacific. This consolidation will create a strong platform to enable us leverage the opportunities in the logistics sector in India.” “Our focus over the next few months will be to transition and grow our partnership with existing customers, win new business given the opportunities presented by the consolidation, increase cross selling and integrate employees from the three erstwhile companies into one consolidated group,” Mr Allan added. According to DHL, the Indian logistics market is estimated to be around US$ 45 billion today. By 2015, it is expected to reach almost US$ 122 billion – growing at a compounded rate of over 11 percent, which is higher than the growth rate of the Indian economy. This consolidation is expected to result in a significant increase in the combined strengths of DHL’s logistics business in India, providing the largest network and service capabilities in the Indian logistics sector. Mr. Snehal Parikh, Managing Director, Lemuir Group and Chairman of DHL Lemuir Logistics Pvt. Ltd. said, “We are delighted to continue our close partnership with DHL in this joint venture. We are confident that the consolidated joint venture will benefit our customers and employees and help globalize our business and processes. It will allow us to serve our customers with a greater degree of service excellence, better technology and systems, global reach and a strong product portfolio.” DHL in India also comprises of DHL Express – India’s leading express company - and Blue Dart, a leader in domestic express, which will continue to operate as independent business units. About DHL DHL is the global market leader of the international express and logistics industry, specializing in providing innovative and customized solutions from a single source. DHL offers expertise in express, air and ocean freight, overland transport, contract logistic solutions as well as international mail services, combined with worldwide coverage and an in-depth understanding of local markets. DHL's international network links more than 220 countries and territories worldwide. 285,000 employees are dedicated to providing fast and reliable services that exceed customers' expectations. DHL is a Deutsche Post World Net brand. The group generated revenues of more than €60 billion in 2006. DHL Global Forwarding Jyoti Row Kavi Tel: +91 22 6698 3477 Mobile: +91 98200 37794 Email: jyoti.rowkavi@dhl.com R&PM:Edelman Ophira Samuel-Bhatia/Neha Chopra Tel: +91 22 2281 0168 -72 Mobile: +91 98202 20116 Email: ophira.samuel@edelman.com