"It's in an industry that is going to show tremendous growth in India," Shah said.
17 May 2024 | 5851 Views | By Shahkar Abidi and Ketan Thakkar
Mahindra & Mahindra (M&M) expects its logistics business to grow 5x over the next five years, having picked up pace.
Dr. Anish Shah, MD and CEO, M&M, during a recent post-results conference call with analysts, said, "Logistics is a business that executed poorly last year, that has picked up ...
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Mahindra & Mahindra (M&M) expects its logistics business to grow 5x over the next five years, having picked up pace.
Dr. Anish Shah, MD and CEO, M&M, during a recent post-results conference call with analysts, said, "Logistics is a business that executed poorly last year, that has picked up on execution very well this year right now. It's in an industry that is going to show tremendous growth in India."
"As we look at the Viksit Bharat goals, and where manufacturing in India is going to grow, logistics is going to be a key player in that space. That's a space that we will look at making more investments in. And we do see a 5x growth being very much achievable for logistics," he added.
According to Shah, the company's logistic business is mainly driven by the Express business, as a result of which there was a loss of Rs 55 crore in logistics for the year. "Execution has improved significantly. And what we are seeing now is a much stronger year for logistics in FY25," Shah continued.
M&M had earlier announced setting a target of becoming a Rs 10,000 crore logistics service provider by FY26. The company is currently in contract logistics, which includes providing transportation warehousing, stores, line feeds, and fulfillment services. Secondly, the company is also into B2B express. Furthermore, in the last mile delivery space, the company facilitates deliveries to customers of major e-commerce players. Additionally, in the freight forwarding segment, the company works in ocean and air freight.