Mahindra Logistics: on the road to success

Mahindra Logistics Limited (MLL), a wholly owned subsidiary of Mahindra & Mahindra Ltd., is a fully integrated third party logistics service provider specializing in both supply chain management and people transport solutions and provides such solutions to companies across a diverse cross section of industries.

The foundation of Mahindra Logistics was laid in the year 2000 as a strategic initiative to enhance focus on logistics services to both internal and external customers. It was soon engaged in taking care of Mahindra’s complex supply chain needs including inbound and outbound logistics, inter-plant movement, warehousing, linefeed and value added services amongst other solutions. This supply chain expertise was then extended to other customers spanning various industry verticals. 

Today, MLL is a fully integrated third party logistics service provider specializing in both supply chain management and people transport solutions, providing such solutions to companies across a diverse cross section of industries. The company serves over 200 large corporate customers across its operating verticals. 

In terms of revenue, MLL has been growing briskly in the recent past, despite broader economic concerns. The company closed last year at Rs. 1300 crores, and expects to close this year with revenues in excess of Rs. 1700 crores, with a robust plan to double our revenue in 4 years. It is MLL’s aspiration to be a billion dollar company with a firm focus on integrated 3PL solutions. This aspiration is entirely achievable given the size and growth of the industry in India. The company’s service portfolio sees it firmly focused on integrated 3PL solutions spanning the supply chain. From transportation, both domestic and international, to large format warehousing - multi-user and built to suite, in plant logistics including kitting, sequencing and line feeding, to freight forwarding and various value added services.

In terms of what really makes MLL different and allows it to evolve; Information Technology and how the company integrates the same into supply chain solutions is a key factor. Mahindra Logistics has invested in excess of 1 million US dollars in project MILES – the Mahindra Integrated Logistics Execution System. MILES is based on the Oracle Transport Management system and seeks to create value for customers and partners who have a considerable transportation spend.   

Besides the significant investments made in information technology, MLL has also recently invested in over 500,000 square feet of modern warehousing space in western India, this is a mix of both multi-user and built to suite facilities in a single complex, and adds to the 4 million square feet already operational. MLL’s plan is to now develop another million square feet of modern warehousing in south and north India. These complexes will include both multi-user and built to suite units with the very best / latest design, engineering, layout, material handling systems, automation and warehouse management systems.

On the international front - an area of considerable focus and a significant growth driver - the company is currently evaluating several international players to partner with and grow this part of the business. MLL wants to partner with such players who will support it on key lanes being developed, most importantly USA, Europe, South East Asia, China and Africa. MLL will soon be establishing a presence in several Asian counties, including China, Indonesia and Thailand. This is part of its plan to gradually extend the 3PL solutions it provides beyond the borders of India and support new and existing customers with such solutions across the globe. This expansion will be focused on value added 3PL services to several large customers in these locations and will expand beyond that as well.  

MLL currently spends in excess of Rs. 1000 crores on transportation services for various customers. This basically means that it can have a significant impact on reducing emissions and increasing efficiency of its transportation business. There are several major initiatives MLL has launched which will have a positive impact in the long run – CO2 footprint measurement and reduction, driver training and sensitization and transport route optimization amongst others.

Mahindra Logistics has also instituted the ‘Driver of the Year’ award which will be presented to five drivers every year for exceptional efforts and achievements. This initiative is just the first step towards becoming more involved with the thousands of truck drivers who support the company’s business and training and developing them to overcome the challenges they face on a daily basis.

The company recently held its second annual Transport Business Partners Awards event, which seeks to recognize and felicitate those transporters who work very closely with it and are fundamental to its success. The Business Partner awards seek not only to recognize and congratulate major transport partners but also those individuals without whom business would just grind to a halt – the drivers.

All of this has led Mahindra Logistics to develop and become India’s largest automotive logistics company as of today. While MLL has always been strongly focused on Automotive Logistics, it also serves customers across industries and business verticals. Mahindra Logistics will truly be at the core of all business.

About The Mahindra Group

The Mahindra Group focuses on enabling people to rise. Mahindra operates in the key industries that drive economic growth, enjoying a leadership position in tractors, utility vehicles, information technology and vacation ownership. Mahindra has a presence in the automotive industry, agribusiness, aerospace, components, consulting services, defence, energy, financial services, industrial equipment, logistics, real estate, retail, steel and two wheelers.

A US $15.4 billion multinational group based in Mumbai, India, Mahindra employs more than 144,000 people in over 100 countries. In 2011, Mahindra featured on the Forbes Global 2000 list, a listing of the biggest and most powerful listed companies in the world. Dun & Bradstreet also ranked Mahindra at No. 1 in the automobile sector in its list of India’s Top 500 Companies. In 2010, Mahindra featured in the Credit Suisse Great Brands of Tomorrow. In 2011, Mahindra acquired a majority stake in Korea’s SsangYong Motor Company.

www.mahindra.com

For further enquiries

Roma Balwani                                         

Senior VP & Group Head - Corporate Communication                           

Mahindra & Mahindra Ltd                                           

Phone: +91 22 2490 1441                                             

Email: balwani.roma@mahindra.com