Bajaj Electricals Limited (BEL) and Mahindra Logistics Limited (MLL) today announced signing an agreement for innovative logistics optimisation and outsourcing arrangement.03 MARCH, 2021 | India
~Association marks one of the largest deals in Indian logistics industry – in excess of INR 1,000 Crores contract value over the next five years~
Mumbai, India, 3 March 2021: Bajaj Electricals Limited (BEL) and Mahindra Logistics Limited (MLL) today announced signing an agreement for innovative logistics optimisation and outsourcing arrangement. This deal is a complete end-to-end redesign and outsourcing of Bajaj Electricals’ entire logistics by Mahindra Logistics, with the twin objectives of achieving enhanced and industry-best service levels, coupled with a logistics cost saving in excess of 25 percent. The total contract value, of this one-of-its-kind deal in the Indian Logistics industry, will be in excess of INR 1,000 crores over the next five years and is the outcome of a unique and collaborative solution.
Working together closely, MLL has developed for BEL a fully redesigned and consolidated logistics network, with storage optimisation, transportation management and inventory movement through technology, best practice and automation. There will be two large ultra-modern mega-warehouses in Delhi and Mumbai, with latest technology, automation and skill-building enhanced by environmentally conscious, greener and sustainable warehouse practices at the heart of the network. This network will further operate fully IT-enabled fulfilment centres from which BEL’s dealers, distributors, customers will enjoy market-leading delivery lead times. As part of the solution, MLL will be deploying a healthy mix of dedicated long-haul fleets and local distribution trucks, enabled by the latest tracking technology and control tower operations. There will also be a transition towards sustainable logistics using electric delivery trucks from EDel by Mahindra Logistics.
For BEL, this project marks a significant transition towards leveraging logistics management as a competitive advantage. Speaking on the occasion, Anuj Poddar, Executive Director, said, "At Bajaj Electricals, we have been actively working towards various strategic initiatives to enhance value for our customers and other stakeholders. This collaboration with MLL is one such key initiative. I am confident that it will help transform our logistics, serve our customers efficiently, strengthen our competitiveness and drive improved margins.
Commenting on this milestone for MLL, Rampraveen Swaminathan, CEO & MD said, “I believe what we are aiming to do for BEL is truly unique and exceptional; enhancing service levels to their customers significantly, while simultaneously driving down costs. I don’t think this would be possible without the extensive use of technology - across network design, warehouse management and transport optimisation and control. Adapting our learnings from disparate industry verticals allowed us to create an innovative solution for the consumer durables and electronics business, leveraging our reach, know-how and tech investments in equal parts.”
This association is a major end-to-end outsourcing of entire logistics by a leading Indian business group. Bajaj Electricals and Mahindra Logistics will continue to seek logistics collaboration across businesses to achieve competitive advantage and cost optimisation.
About Bajaj Electricals Limited:
Bajaj Electricals Limited, (BEL), a globally renowned and trusted company, with a turnover of INR 4,987 crores (FY 19-20), is a part of India's leading business conglomerate "Bajaj Group". With a business portfolio that spans across Consumer Products (appliances, fans, lighting) and EPC (illumination, power transmission and power distribution), BEL also has a strong presence in premium home appliance and cookware segments with brands like Morphy Richards and Nirlep. BEL has an expansive network of 20 branch offices, 478 distributors and more than 200,000 retail outlets across India, combined with over 500 consumer care centres, fortifying its dominant presence in the consumer products sector. The EPC segment of BEL includes EHV transmission line projects, EHV substations, monopoles for transmission and distribution, electrification projects, high mast and street lighting, sports lighting, industrial and commercial lighting, specialised illumination projects on turnkey basis and other solutions. BEL has always lived up to its ethos of putting the consumer first and meeting its core brand value of "Inspiring Trust".
For more details, please visit: www.bajajelectricals.com/
About Mahindra Logistics Limited:
Mahindra Logistics Limited (MLL) is an integrated third-party logistics (3PL) service provider, specialising in supply chain management and enterprise mobility (people transport solutions). Founded more than a decade ago, MLL serves over 400+ corporate customers across various industries like Automobile, Engineering, Consumer Goods and E-commerce. The Company pursues an “asset-light” business model, providing customised and technology-enabled solutions that span across the supply chain and people transport operations. MLL is part of the Mobility Services Sector (MSS) of the Mahindra Group.
For more information, visit: www.mahindralogistics.com
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