UPS really wants to sign a contract with Nokia in India

Global logistics major United Parcel Services (UPS) means business in India. It is trying to muscle its way into the logistics contract of Nokia (NYSE: NOK)’s Indian manufacturing facility at Sriperumbudur near Chennai.

Estimates show that the contract — said to be the largest in the country — is worth Rs 240 crore on an yearly basis. Currently, the supply chain solution of this facility is managed by DHL, Blue Dart, Gati and Panalpina, a Swiss company. Given that each of these companies is making a neat sum on this contract, the entry of UPS is a heartburn.

The opportunity is huge, considering that Nokia has produced almost 20 million handsets in just 11 months after starting production at Chennai in January this year. Experts estimate that the value of the logistics contract for Nokia phones could be around Rs 240 crore, worked out on the basis of new subscriber addition of 6.7 million a month and Nokia holding a major market share in the segment.

Moreover, Nokia will soon start manufacturing telecom equipment at the Chennai plant. “We are currently handling the entire vendor managed inventory (VMI) for Nokia at the Nokia Hi Hub at Sriperumbudur, but would like to extend this relationship and be able to offer a complete range of supply chain solutions,” said a top UPS official.

Source: The Economic Times

I’m a FedEx man myself, don’t really like UPS since they have a habit of leaving a package on your doorstep weather it requires a signature or not. At least in my experience. The FedEx man also greets me more politely, and by first name too.