Mahindra Logistics gains on acquiring Rivigo's B2B express biz

Mahindra Logistics (MLL) rose 3.21% to Rs 520.75 after the logistics solution provider announced the acquisition of the B2B express business of Gurugram-based logistics firm Rivigo Services (RSPL).

MLL and RSPL announced that they had reached agreement for purchase of RSPL's B2B express business by MLL. Under the terms of the agreement, MLL will acquire the express business through a Business Transfer Agreement (BTA), including the customers, team and assets of RPSL's B2B express business, RSPL's technology platform and the Rivigo brand. RSPL will continue to own its truck fleet & the rights to the full truck load (FTL) operations.

The acquisition will augment MLL's existing B2B express business leveraging Rivigo's strong network, technology and process capabilities.

Gurgaon based Rivigo operates a pan India B2B express network, has a robust client base and a full-service technology suite. Rivigo's B2B express network currently covers over 19,000 pin-codes across the nation. Their 250+ processing centres and branches, spanning an area more than 1.5 million sq. ft. will add significant strength to MLL's express business capability.

Rampraveen Swaminathan, MD & CEO, MLL said, "This acquisition will enhance and strengthen our offerings and reach for our customers in the B2B express and PTL space. Team Rivigo has built deep capabilities, and we look forward to building on the strengths as we integrate the businesses. We are excited by the team, as they share a common ethos with a shared focus on empowering drivers & communities."

MLL is an integrated third-party logistics (3PL) service provider, specializing in supply chain management and enterprise mobility. 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 mobility services.

On a consolidated basis, net profit of MLL rose 310.94% to Rs 13.52 crore on 35.86% rise in net sales to Rs 1199.90 crore in Q1 June 2022 over Q1 June 2021.

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