Mahindra Logistics, one of the largest third-party logistics solutions providers, is planning to expand its market presence in South-East Asia through acquisition measures. The company is looking for acquisitions to expand its warehouse space and fuel its freight forwarding business with an aim to reach a business value of Rs 6,000 crores by FY 21, according to a PTI report.
“We are looking for acquisitions in SE Asia in the freight forwarding sector. This segment is just 5 per cent of our total business,” said Pirojshaw Sarkari, CEO, Mahindra Logistics. He said the company is committed to expanding warehousing space which offers a better margin for the company. “We are planning to expand warehousing space by two million square feet in the current fiscal,” Sarkari said.
The company’s freight forwarding business is handled through Lords Freight, a previously acquired company. Sarkari said the immediate target is to double the business in this sector.
Mahindra Logistics is certain about the growth curve of the Logistics Sector despite a slowdown in automotive and FMCG sectors.
“We will continue to grow despite the odds as 95 per cent of logistics is unorganised. Our margin would grow with more warehousing space. We hope to touch ₹ 6,000 crore revenue by FY21,” Sarkari said.
“We will add 2 million sq ft in the current fiscal. We have 15 million sq ft now across India and of which 1.5 million will be in the east.”
Pirojshaw Sarkari, CEO, Mahindra Logistics Ltd
Mahindra Logistics is also setting up a 1 lakh sq ft of sorting hub in Dankuni, Hooghly meant to serve the e-commerce sector.
Mahindra Logistics’ profit soared over 14.4 per cent for the three months ended March. Mahindra Logistics expects to outgrow the overall industry growth in the financial year 2019-20.
