Mahindra Group's privately held firm Mahindra Logistics Ltd has partnered with the Mumbai-based vehicle carrier solution provider Indian Vehicle Carriers Pvt Ltd (IVC) to form a joint venture '2x2 Logistics', which is aimed at launching assetised operations in outbound automotive logistics, as per a press release. The financial details of the deal however were not disclosed.
Kedaara Capital-backed Mahindra Logistics will hold controlling stake in the new entity '2x2 Logistics', which will initially invest in 100 specially designed car carriers to serve automobile and two-wheeler OEMs (Original Equipment Manufacturers), the statement said.
The partnership will enable the two companies to further develop and augment their transportation networks, linking the North, West, South and East clusters of production and consumption of automobiles.
“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,” Mahindra Logistics' CEO Pirojshaw Sarkari.
“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.” says KS Singhal, founder & owner, IVC.
Earlier in August, Mahindra Logistics had acquired a controlling equity stake in Mumbai-based international freight forwarding company Lords Freight (India) Pvt Ltd for an undisclosed amount.
Mahindra Logistics is a third party logistics (3PL) service provider. It takes care of M&M’s supply chain needs, including inbound and outbound logistics, inter-plant movement, warehousing, line-feed and value-added services.
It also provides people transport solutions, a specialised line of business which helps corporate clients move employees to and from the workplace. The company has been aggressively expanding its business with a focus on multiple industry verticals.