Mahindra Logistics in talks with SE Asian companies for acquisitions in freight forwarding space
Mahindra Logistics is in talks with 4-5 South East Asian companies in a bid for global acquisitions in the freight forwarding space.
May 17, 2019: Mahindra Logistics is in talks with 4-5 South East Asian companies in a bid for global acquisitions in the freight forwarding space. Pirojshaw Sarkari, chief executive officer, Mahindra Logistics said that the acquisitions will take place over the next six months.
“We would prefer freight forwarding companies that have larger market presence across south east Asian markets. Though we are also open to joint ventures, we would prefer firms with a 'large market presence' across south east Asia including Indonesia, Thailand and Singapore,” added Sarkari.
Freight forwarding accounts for only 5 percent of Mahindra Logistics’ total revenue of Rs 3,860 crore posted in the 2018-19 financial year. “If we have to clock a turnover of Rs 6,000-crore company over the next few years, freight forwarding has to contribute 10 - 15 percent to revenue,” Sarkari said,
The third-party logistics service provider is also studying the feasibility of using inland and coastal waterways for goods movement. “Soon, we will enter this mode which is considered the world over as the least polluting and cheapest transport mode. We hope to trial-run cargo movement by end of this year,” Sarkari said.