J M Baxi Ports and Logistics Limited’s subsidiary, J M Baxi Heavy Pvt. Ltd. has signed a definitive agreement with Allcargo Logistics Limited’s Project Forwarding and Logistics business for INR 98.64 crore. They also made a binding offer to Lift and Shift India Pvt. Ltd. to procure their heavy and over-dimension argo logistics business, which has been accepted.
At Allcargo, this exit is aligned with our strategy to focus on Allcargo Group’s core business.Adarsh Hegde, Joint Managing Director, Allcargo Logistics
Both the transactions will be subject to completion, which is expected to happen in the upcoming weeks. Once completed, both the businesses will merge into J M Baxi Heavy Pvt. Ltd. which is a part of the private maritime logistics company J M Baxi Group.
The acquisition of the two business divisions of Allcargo and Lift & Shift will add immense value, weave in synergies with the current line of business at J M Baxi Heavy and expand opportunities for the organisation to be present in high growth categories. Through this, we will be able to cater to our customers across the infrastructure space in the Indian and African sub-continents. The acquisitions will further strengthen, J M Baxi’s strategy for long term growth and enable us to continue being an active participant in the Indian growth narrative.”Dhruv Kotak, Managing Director, J M Baxi Group
Bain Capital, a global private equity player, signed up for a minority stake in J M Baxi Group in December 2020, who also plans to raise INR 2,000-2,500 crore through an IPO. The Group is promoted by business tycoon Krishna Kotak and provides integrated logistics services and transportation conglomerates, with a focus on port-based logistics – making the J M Baxi Group a premiere in India.
Along with an increase in the clientele and network for J M Baxi Heavy, Allcargo will also bring in their expertise in heavy cargo long haul transportation along with their customised lifting and transportation solutions. Similarly, Lift & Shift India will bring with it, a specialisation in engineered logistics services for super-heavy lifting, shifting and multimodal transportation. The merger also means that JM Baxi Heavy will boast of the largest fleet of specialised equipment for heavy cargo, enabling them to reach a wider customer base, improve their service proposition and create synergies in efficiency building.