NEW DELHI, OCTOBER 24: FedEx Corp. the world's largest air express carrier, sees India's $450 million air express market growing at 15 percent a year, and its own business exceeding that growth, a top official said on Thursday.

Robert Elliott, president of the Indian subcontinent at FedEx, said the firm plans to increase its Indian cargo capacity by 900 tonnes to 2,100 tonnes by boosting the number of weekly flights to 16 from 11 by November.

"We're outpacing market growth. We have been growing at double digits and are in a strong position in India," Elliott told Reuters in an interview.

"We don't intend losing our leadership position and we will do everything we can to get more than a fair share of the pie."

Freight demand is soaring as Asia's third largest economy is amongst the fastest growing in world. India is aiming to hit the $100 billion mark in exports in the year to March 2006, and is also becoming a hot destination for foreign investment.

Elliott did not give Memphis-based FedEx's market share in India, but said the firm and its global rivals, United Parcel Service Inc. and DHL Express, Deutsche Post's express delivery arm, have roughly the same share.

DHL, which recently paid $163 million for a majority stake in Indian courier firm Blue Dart Express Ltd., also expects its Indian business to post double digit growth.

Several large domestic firms such as Gati Ltd., and dozens of smaller courier companies also compete in the fast expanding but fragmented Indian courier market.

FedEx had increased its retail outlets to 74 in 54 Indian cities from 36 in 11 cities and plans to double its headcount to about 450.

FedEx has a tie-up with domestic company Pafex Ltd. helping expand its reach to small and medium companies in other cities.

Elliott, who also looks after the company's operations in Europe, the Middle East and Africa, said FedEx was not looking at acquiring Indian courier companies at the moment and planned to grow organically.

"We will consider our options ... this is a good model for the time being."