CORPORATE

SpiceJet spins off cargo and logistics business into separate entity

SpiceJet on Monday said that it had hived off its cargo and logistics business, SpiceXpress, into a separate entity – SpiceXpress and Logistics – from April 1.  

The spin-off resulted in a one-time gain of Rs 2,555.77 crore for SpiceJet, substantially reducing its negative net worth, the company said. 

It also paved the way for SpiceXpress to raise funds independently, SpiceJet said. 

The decision to hive off SpiceXpress was in sync with the company’s long-term business plan and would unlock significant valuation of the logistics business, SpiceJet Chairman Ajay Singh said. 

Mr Singh further added: “The separation of our cargo and logistics arm is a stepping stone in our growth story which shall unfold in the times to come.” 

SpiceXpress reported a net profit of Rs 51.4 crore for the April-December period of FY23. 

According to Mr Singh: “SpiceXpress will provide greater and differentiated focus to cargo and logistics business and will allow the possibility of raising capital for the business to accelerate its growth.” 

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