Mahindra Logistics to double its revenue to Rs 10,000 crore by FY26
The company's operating revenue during FY23 stood at Rs 5,128.3 crore.
Mahindra Logistics, the logistics arm of Mahindra & Mahindra (M&M), which is one of its growth gems, is expected to double its revenue to Rs 10,000 crore by FY26, according to CEO Anish Shah. This is due to the rapid growth of the Indian logistics sector and the company's own initiatives.
"This is one business that is going to grow dramatically. As India benefits from China- plus- one approach and the economy in India grows, the industry is going to be a key beneficiary. From a company standpoint, we are taking action to build an end-to-end logistics solution company," said Shah during a post-results conference call with the media on Friday. "The execution of all planned efforts by the company has improved significantly," he added.
Mahindra Logistic's operating revenue during FY23 stood at Rs 5,128.3 crore. It was Rs 4,083 crore and Rs 3,263.7 crore in FY22 and FY21, respectively.
Mahindra Logistics is an integrated third-party logistics (3PL) service provider, specialising in supply chain management and enterprise mobility. It serves over 400 corporate customers across various industries, including automobiles, engineering, consumer goods, and e-commerce, while pursuing an "asset-light" business model. It competes with the likes of Delhivery, Allcargo, VRL Logistics, and TCL Express, among others, across different segments.
Mahindra Logistics, in a statement released last month, stated that its 3PL supply chain services during Q2 FY24 have been growing 4% YoY, driven by growth in automotive and engineering, consumer, and durables. While e-commerce volumes remained weak during the quarter, softness continued to roll over. However, the activity levels picked up towards the end of the quarter to prepare for a peak during the festive season in Q3, the company added.
Mahindra Logistics' warehouse space under management stood at 19 million sq. ft. in the 3PL business, while the current expansions in Chakan, Kolkata, Nasik, and Guwahati are on track. The company launched a 6.5 lakh sq. ft. multi-client warehouse in Bhiwandi, Mumbai, to manage fulfilment and distribution for the automotive, e-commerce, and FMCG industries.
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