Mahindra Logistics Ltd (MLL), a subsidiary of Mahindra & Mahindra, has announced that it has acquired a majority stake in Lords Freight (India).
20 Aug 2014 | 4440 Views | By Autocar Pro News Desk
Mahindra Logistics Ltd (MLL), a subsidiary of Mahindra & Mahindra, has announced that it has acquired a majority stake in Lords Freight (India). This acquisition will provide impetus to Mahindra Logistics’ expansion plans.
“Our vision is to be India’s leading, most preferred integrated logistics service provider and international freight ...
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Mahindra Logistics Ltd (MLL), a subsidiary of Mahindra & Mahindra, has announced that it has acquired a majority stake in Lords Freight (India). This acquisition will provide impetus to Mahindra Logistics’ expansion plans.
“Our vision is to be India’s leading, most preferred integrated logistics service provider and international freight forwarding is an essential component of this vision. With this acquisition, MLL’s service portfolio will be considerably enhanced. Lords presented an ideal opportunity for us, given its proven track record of growth, strong focus on quality and the fact that it has a strong cultural fit with Mahindra Logistics. This is our maiden investment, and will considerably add to the value proposition we offer our customers,” said Pirojshaw Sarkari, CEO, Mahindra Logistics Ltd.
MLL, which operates a fleet of over 25,000 vehicles, says it is one of India’s leading Third Party Logistics (3PL) service providers. Over the past four years, it has grown rapidly by diversifying its industry segment focus, developing an integrated supply chain services portfolio, and unique people transport solutions.
"Since our partnership with Kedaara Capital earlier this year, we see a very clear path to an IPO for Mahindra Logistics. It is our goal to grow to Rs 6,000 crore (by CY2020) and this is the first of several in-organic steps we have planned. Through a turnaround process, we have made MLL into one of the 10 most profitable companies within the Mahindra Group,” said Parag Shah, managing partner, Mahindra Partners.
“We are very excited to work with the team at Mahindra Logistics. We at Lords have a keen focus on accelerated growth. This investment by MLL will allow us to pursue a strategy of enhancing our capabilities and expanding our international presence, while simultaneously leveraging MLL’s customer base and process methodologies. Lords has always had a keen focus on the critical attributes of technology, talent and a global network since its inception; greatly encouraged by a discerning customer base,” said Shamsudeen Ahmed, chairman, Lords Freight (India) Pvt Ltd.
In April this year, Kedaara Capital, a private equity firm, co-founded by Manish Kejriwal, former boss of the Temasek India equity company, announced plans to invest Rs 200 crore in Mahindra Logistics.
At present, Mahindra Logistics has a 90 percent exposure to the auto sector with the rest being in non-auto sectors. The company hopes to take the non-auto share to 50 percent in about three years, and has identified several potential sectors including fast-moving consumer goods, consumer durables and hi-tech. The company is targeting a turnover growth from the existing Rs 1,800 crore to Rs 6,000 crore by the year 2020.