Mahindra Logistics plans to lower parent’s share in business
Logistics provider eyes acquisitions in southeast Asia
Mahindra Logistics Ltd. (MLL) is planning to bring down the share of the Mahindra group companies to less than 50% of its turnover by 2021, said Pirojshaw Sarkari, CEO of the company.
Addressing the media on Tuesday, Mr. Sarkari said at present, 54% of the business came from Mahindra Group and 46% from non-Mahindra firms. “We have reduced [the share] over the years. It was 80-20 in 2008. We aim to bring it to less than 50% from Mahindra Group companies by 2021 when a ₹6,000 crore turnover is being targeted (₹3,860 crore in fiscal 2019),” he said. The firm was scouting for acquisition in southeast Asia to strengthen its freight forwarding business, he added.
An integrated third party logistics service provider, MLL is a portfolio company of Mahindra Partners, the private equity arm of the Mahindra Group. An integrated third party logistics service provider, it specialises in supply chain management and people transport solutions targetting four verticals — automobiles, engineering, consumer goods and e-commerce. Mr. Sarkari said the firm was studying the feasibility of using inland and coastal waterways for goods movement.
Water transport mulled
“Soon, we will enter this mode which is considered the world over as the least polluting and cheapest transport mode,” he said.
The company is now increasing its focus on the eastern markets to drive growth and is setting up its first automated integrated sorting centre at Dankuni in West Bengal’s Hooghly district.”This centre will do everything, from unloading to sorting and packaging. West Bengal and the entire eastern region is key for MLL . Kolkata continues to be a transit logistics gateway for the entire east,” he said, adding it would also improve accessibility to the northeast.
Replying to a query on acquisitions, he said MLL was looking for acquisitions in southeast Asia in the freight forwarding sector, which would help exporters. “We need a presence in this segment to access countries like Indonesia, Malaysia, Singpaore and Thailand,” Mr. Sarkari said.
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