Mahindra Logistics, looking at strengthening its information technology (IT) backbone in a bid to make it big in the logistics industry, may look at picking up stake in start-ups which are into advanced technologies.
Mahindra Logistics, looking at strengthening its information technology (IT) backbone in a bid to make it big in the logistics industry, may look at picking up stake in start-ups which are into advanced technologies, thus following up on its recent stake buy in Transtech Logistics (TLPL), which provides transport management solutions under the brand name ‘ShipX’.
Speaking at a select press conference here on Wednesday, Pirojshaw Sarkari, CEO, Mahindra Logistics, said, “We are looking at niche acquisitions, in the technology or analytics space especially, to optimise cost in logistics. We are not looking at acquiring any logistics company for topline growth.”
The company had hit the IPO street last November and currently has around Rs 100 crore cash in hand for any such requirement, he said.
He said that logistics industry is poised for a quantum jump on the back of implementation of GST and Mahindra Logistics, part of Mahindra Group, is planning to add around half a million square feet of warehousing space by the end of the current fiscal as part of its expansion in the country.
Pointing out that South remains a critical market for the company, the plans include expansion in cities like Chennai, Hyderabad and Bengaluru.
In Chennai, it will be adding two more warehouses to the existing three, focusing on automotive and manufacturing sector. It will add 2 lakh square feet before the end of the current fiscal.
“Bengaluru and Hyderabad are the two other areas where we will be setting up our warehouses in South India. We are looking at adding about half a million square feet before March 31, 2019,” said Sarkari.
He said in one year’s time, the company plans to add around one million square feet in total. It will be focusing on the high margin businesses of warehousing and distribution. It currently has around 13 million square feet space across the country.
The company has recently invested around Rs 7 crore in ShipX, a freight management solution start-up on transport management solution.