Samsung SDS, the IT services unit of Samsung Group, said Tuesday in a regulatory filing that it is considering spinning off its logistics business in order to reinforce competitiveness in global logistics and bolster management capacity.
Since 2012 Samsung SDS has expanded into the logistics business, leveraging its information technology and IT competencies accumulated through its IT services business. Last year, the Samsung SDS logistics division racked up approximately 2.6 trillion won in sales.
However, the Samsung SDS logistics division has concentrated on doing business with its affiliates including Samsung Electronics and is scheduled to complete most of its logistics services for the affiliates by the end of 2016. Therefore, it is urgent for Samsung SDS to move beyond the Samsung Group for sustainable growth. To that end, it plans to establish a brand as a professional logistics company, seek M&A opportunities for better global execution and expansion of global sales networks and further expand into new business frontiers.
Samsung SDS is also poised to seek further ways to strengthen its competitiveness for sustainable growth amid rapid market changes in the industry, such as consistent customer demands for IT cost efficiency and the emergence of new information technologies (e.g. the IoT, big data) and new rivals like cloud computing companies.