ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Masahiro Okafuji, President & CEO; hereinafter “ITOCHU”) announced today that, jointly with ITOCHU LOGISTICS CORP. (headquartered in Minato-ku, Tokyo; Kazuhide Sasa, President & CEO; hereinafter “ITOCHU LOGISTICS”), it has reached an agreement with Parekh Integrated Services Pvt. Ltd. (headquartered in Mumbai, India; Mr. Vikram H. Parekh, Director & Chairman; hereinafter “Parekh”) on the establishment of a logistics company, I P Integrated Services Private Limited (hereinafter, “I P”). I P will be established by November this year and will begin operating around December. By establishing I P, ITOCHU will roll out high-quality, comprehensive logistic services over the entire country (230 bases in 53 cities), mainly in the fields related to daily consumer goods, consumer electronics, and machinery parts.

Under a business alliance with Parekh, the ITOCHU Group has been operating a logistic business in India for approximately two years since 2009, accumulating know-how in logistics and business practices in India. The Group has made the decision to establish I P as a joint venture with Parekh, to roll out the logistics business throughout India. The founding of this company aims to respond to the acceleration of India’s economic growth, the deregulation of domestic distribution, and the rapid increase in the number of Japanese companies making forays into India, by ensuring intermodal logistics from import and export to domestic distribution and by providing high-quality, Japanese-style logistics services.

Parekh provides logistics services throughout India, and its customers include major foreign companies. The company excels especially in logistics of daily consumer goods. By making use of Parekh’s network, I P will be the first Japanese logistic company in India with bases all over the country (230 bases in 53 cities) and will be able to provide just-in-time services via the nationwide network. The company will also apply the ITOCHU Group’s meticulous, Japanese-style logistics services to operate a comprehensive logistics business, including nationwide distribution of products, logistics in procurement of raw materials and parts, transportation and installation of machines and equipment, and intermodal transportation services in conjunction with imports and exports, mainly in areas related to daily consumer goods, consumer electronics, and machinery parts.

As to its overseas local logistics business, the ITOCHU Group already operates a logistic network that covers all of China (in 63 cities; with a total area of centers of more than 750,000m2). It is one of the largest logistics businesses in China operated by a Japanese company. ITOCHU will link I P’s logistics network in India and ITOCHU Group’s networks in Japan and all of China with the international logistic network of ITOCHU LOGISTICS, to provide a supply chain spanning Asia to corporate customers operating in the region.

Profile of I P (the new company)

Profile of ITOCHU LOGISTICS CORP.

ITOCHU LOGISTICS CORP. is the core comprehensive logistics company of ITOCHU Corporation, with logistics networks worldwide. As a comprehensive logistics company affiliated with a trading company, ITOCHU LOGISTICS provides logistics services by making full use of its information power, overseas networks, and comprehensive logistics functions for land, sea, and air shipping.

Corporate name	ITOCHU LOGISTICS CORP.
President & CEO	Kazuhide Sasa
Headquarters	Sumitomo Life Akasaka Building 5th & 6th Floors, 3-3-3 Akasaka, Minato-ku, Tokyo, Japan
Established	1961
Capital	4,260 million yen
Number of employees	345 (as of March 31, 2010)
Sales	49,316 million yen
URL	http://www.ilogi.co.jp

Profile of Parekh

Parekh operates a third-party logistics business in India, mainly in the field of consumer goods, within the Parekh Group, the core businesses of which are financing and logistics.

Corporate name	Parekh Integrated Services Pvt. Ltd.（PISPL)
Director & Chairman	Mr.　Vikram　H.　Parekh
Head Office	1st Floor, IIT Bhatti, Italian Textile Compound, Geregaon(East), Mumbai
Established	1992
Capital	70 million yen
Number of employees	Approx. 1,500
Sales	1,640 million yen
URL	http://www.pispl.in/

I P’s bases across India (53 cities)