Mahindra Logistics considers Tamil Nadu as significant driver for growth
Posted on: 19/Sep/2018 4:45:44 PM
Mahindra Logistics Ltd. (MLL), one of India’s largest 3PL solution providers, is strengthening its presence in Tamil Nadu and considers the state as one of its key region for growth. With a thriving industrial and business hub, the region holds strategic value for the company’s growth, especially in the auto sector.
MLL is one of the largest 3PL logistics providers to the auto and its allied industries. Today, it serves almost all multi-national auto OEMs (Original Equipment Manufacturer) in the country like BMW, Volkswagen, Hyundai and Mercedes Benz, besides Mahindra & Mahindra, Ashok Leyland, amongst others. As it is one of the oldest and the largest logistics service providers to the auto sector, the company has to its credit a number of technology and process innovations. These constant enhancements and the company’s ability to adapt to various situations, has made MLL, an expert in servicing its auto clients across the country.
Warehousing and distribution is one of the major thrust areas for Mahindra Logistics in this region. Chennai and its neighboring locations occupy 7 lakh square feet of warehousing space, out of 13 million square feet space, the company occupy nationwide.
Mr. PirojshawSarkari, CEO, Mahindra Logistics Limited, said, “Tamil Nadu is a key market for Mahindra Logistics and contributes a significant share to the business. Some of the key customers in our Supply Chain business from this region include BMW, Wabco, ITC, while in our People Transport business, we have customers like Tech Mahindra, Flextronics, Paypal, Fidelity, Valeo India, amongst others. We have close to 2000 persons working for us in the region. We look forward to continued business growth - from existing customers and new customers”.
Mahindra Logistics continued to report robust performance on the back of healthy revenue growth in Supply Chain Management business. While its business from Mahindra business growth of 28% in FY 2018,Non-Mahindra business grew by 32%, led by revenues from freight forwarding, Consumer & Pharma, E-commerce and Auto & Engineering clients. In Q1 FY19, while EBDTA grew by 52% and revenue by 9%, the company’s PAT increased by 61%.
The Indian logistics sector has received major boost due to various factors including GST implementation, infrastructure status by the Govt, technological advancements amongst others. The domestic logistics sector is projected to grow at CAGR 13 per cent to Rs 9.2 trillion by FY20 from Rs 6.4 trillion in FY17. Further, the third-party logistics space is expected grow at a 19-20 per cent CAGR to reach Rs 580 billion by 2019-20 from Rs 325-335 billion in FY17.
