Mumbai: Indian low cost aviation service pioneer, Air Deccan founder Captain GR Gopinath, has secured a strategic investor in Mukesh Ambani-led Reliance Industries. RIL confirmed Friday that it was investing in Captain Gopinath-founded cargo airline Deccan 360.
Without revealing the quantum of investment, RIL said that a wholly-owned subsidiary would provide "growth capital" for the new cargo airline.
"We believe that our collaboration with Deccan 360 will see a transformation in the logistics domain in India," RIL chairman and MD Mukesh Ambani said in a statement.
The strategic investment would help Deccan 360 increase its air and surface network coverage across the country, the company said.
Meanwhile, market buzz has it that RIL's stake in Deccan 360 is expected to be above 26% but below 50%. A Reuters report pegs the investment by Reliance at $20-30 million. Two RIL representatives are likely to take their place on board of the cargo venture.
Capt Gopinath, chairman and managing director of Deccan 360, has invested $25 million in the venture.