G.R. Gopinath in Mumbai on Friday. (PTI)

Mumbai, April 16: Mukesh Ambani today entered the logistics space when a subsidiary of Reliance Industries (RIL) acquired a stake in Deccan 360, the express transportation firm floated by Captain G.R. Gopinath of Air Deccan fame.

Though the Reliance group did not disclose financial details of the transaction, including the stake purchased or the consideration paid, Gopinath said at a press conference that it had bought between 26 per cent and 50 per cent. He did not disclose the investment though it is learnt to be close to $30 million.

Reliance said it was providing growth capital to Deccan 360 as a strategic investor. The investment is expected to be a win-win deal as Deccan will use the funds to expand its coverage both on air and surface front. The investment will provide supply chain services and logistics for Mukesh Ambani’s retail operations.

Mukesh Ambani is not alone in tapping the logistics or the express space. Around four years ago, younger brother Anil Ambani’s Reliance Private Equity, the arm of Reliance Capital Ltd, bought 44 per cent in DTDC Courier & Cargo for Rs 70 crore.

Deccan 360, an cargo airliner and a freight services company, now has eight freighter aircraft covering 15 airports with a fleet of over 300 trucks and 850 vehicles nationwide. It has a capacity of more than 300 tonnes per night by air, with over 60 warehousing hubs and it delivers overnight services to 50 cities through 60 plus franchisee nationwide.

Deccan 360’s air and surface transportation network caters to express transportation needs of various industry verticals that include pharmaceuticals, machinery, manufacturing, retail, electronics, textiles and banking. Like many of its peers, Deccan 360 is in an expansion mode as demand for logistics and express transportation is expected to jump with the Indian economy picking up steam.

In a statement, Reliance said its investment would help Deccan to increase the air and surface network coverage across the country. It added that Gopinath’s company would introduce various services to serve India’s express end-to-end supply chain logistics space in both business-to-business and retail sector.