Mahindra Logistics Ltd., (MLL), today said it had forged alliance with Indian Vehicle Carriers Pvt Ltd., (IVC), to be branded as 2×2 Logistics. The partnership is aimed at launching assetised operations in outbound automotive logistics, a statement issued by Mahindra said.
Mahindra Logistics will have a majority stake in ‘2×2 Logistics’, the new entity, which will initially invest in 100 specially designed car carriers to serve automobile and two-wheeler OEMs (Original Equipment Manufacturers). This partnership will allow MLL and IVC to further develop and expand their transportation networks, linking the North, West, South and East clusters of production and consumption of automobiles.
While speaking on the occasion, Pirojshaw Sarkari, CEO, Mahindra Logistics said:“This is the first time we will be significantly assetising our business by investing in 100 car carriers to begin with, and then ramping up capacity. It will help strengthen our operating capabilities in automotive logistics, our largest target industry vertical, with a clear focus on technology, quality and corporate governance. Forming such partnerships with our business associates will be an important part of our growth and success.”
“As OEMs expand their product lines in India, we see a significant potential for car carriers which are specially designed to meet a variety of needs, both in terms of dimensions of the vehicles being carried as well as special handling requirements. We will have a very specific focus on design innovation in car carriers in 2×2 Logistics. We are already one of the largest automotive logistics service providers in India and this joint venture will allow us to directly operate assets and serve our customers with a greater degree of predictability and control,” Sushil Rathi, Senior VP, Mahindra Logistics, pointed out.
“This is a proud moment for all of us as this JV has the potential to change the landscape of the Indian automobile logistics industry. Having been in the automotive logistics industry for more than 30 years, I can say without doubt that this new entity will have all the capabilities to become a one stop solution for outbound logistics. We hope to leverage each other’s strengths and offer the highest level of quality and service to our customers.
Also, while speaking to the media, KS Singhal, Founder & Owner, Indian Vehicle Carriersadded: “Our objective at Mahindra Partners is to nurture and grow the businesses of tomorrow. We follow a unique model of fostering innovation, creative business models and mutually beneficial partnerships. 2×2 Logistics will allow MLL to build a significant asset base and enhance its pan-India transportation network, leading us that much closer to an IPO by 2017.” says Parag Shah, Managing Partner, Mahindra Partners.”
MLL has been aggressively expanding its business with a focus on multiple industry verticals. In August, MLL acquired a majority stake in Lords Freight (India) Pvt. Ltd soon after private equity (PE) firm Kedaara Capital bought a significant minority stake for Rs. 200 crore in the logistics company.