Over the past five years, Mahindra Logistics Ltd. (MLL) has witnessed rapid organic growth by diversifying its industry segment focus, developing an integrated logistics services portfolio and continuing to grow its unique people transport solutions. The company has doubled its revenue since and is currently operating at an annual turnover of over Rs. 2,000 crores. Two big verticals for MLL right now from the revenue perspective are Auto & Engineering and Auto Outbound. The company has also made significant investments in E-commerce, consumer and pharma verticals in the last two years with excellent results.
“Continuing the momentum, we are targeting revenues of Rs. 6,000 crores by 2020. Currently, we have 13 offices and more than 90 operating locations all over India. We see this number doubling five years from now”, says Mr. Sushil Rathi, Chief Operating Officer, Supply Chain Management, Mahindra Logistics Ltd.
MLL plans to achieve this target with organic as well as inorganic growth. On the inorganic front, the company has acquired majority stakes in LORDS Freight India Pvt. Ltd., enhancing its capabilities in international freight forwarding, and together it is inching towards a Rs. 100-crore mark. The company has also entered into a joint venture agreement with Indian Vehicle Carriers Pvt. Ltd. (IVC) to form a new company called ‘2×2 Logistics’ aimed at launching assetized operations in automotive outbound logistics. With a majority stake in the new company, the logistics outfit is operating under 150 specially designed car carriers to serve automobile and two-wheeler OEMs.
MLL is also looking at new and emerging areas of opportunity, including agricultural logistics and cold chain.
MLL offers two distinct solutions to its customers – Supply Chain Management (SCM) and People Transport Solutions (PTS). Within SCM, end-to-end logistics for customers, be it transportation or warehousing, are managed. Mahindra has customized technology-enabled solutions available.
“Currently, with over 50,000 trips a month across India, we are servicing over 200 corporates in the key industry sectors, namely, Automobile & Engineering, Automobile Outbound, E-commerce and Consumer & Pharma. In addition, we also provide freight forwarding solutions through our subsidiary LORDS. We are India’s fastest growing 3PL service provider and market leader in the automotive sector”, adds Mr. Rathi.
Under PTS, Mahindra caters to the employee transportation needs of enterprise customers by providing regular pick-up and drop services. With more than 50,000 employees transported per day, its solutions are fully IT enabled.
MLL has always been focusing on providing end-to-end integrated solutions right from planning to the implementation stage. Its capabilities in supply chain consultancy, warehousing and linefeed, transportation and value-added services are a reflection of its focus.
2020 focus
Discussing his company’s key focus areas for the next four years, Mr. Rathi lists reorganization in the light of GST, e-commerce and pharma as its top-most priorities. “We expect a significant reorganization leading to investments in large warehousing and stock management hubs at key locations, coupled with smaller set-ups closer to production and consumption centres. We at Mahindra Logistics have already started gearing up for the change and have even implemented such nodal operations for some of our large clients. The Indian e-commerce industry is amongst the fastest growing globally with a CAGR of over 30%. Marketplace/apparels/H&B/FMCG through online platforms are the major consumers of our services today. As an integrated logistics service provider, we are focusing our efforts towards customer satisfaction, given the entire consumer experience is a game of timing it right. Amongst the key industries we serve, the coming years will see us foray in a big way in to pharmaceuticals. Coupled with our investments in cold chain, we expect to create a big impact on this key industry vertical”, he clarifies.
In addition to the above, MLL also plans to make moves in new areas like coastal shipping and multi-modal transportation.
By Rajeswari Prasad