Mahindra Logistics spurts after deal with Bajaj Electricals

Mahindra Logistics (MLL) jumped 6.54% to Rs 512 after the company signed an agreement with Bajaj Electricals for innovative logistics optimisation and outsourcing.

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 & industry-best service levels, coupled with a logistics cost saving in excess of 25%. The total contract value of this deal will be in excess of Rs 1,000 crore over the next 5 years.

MLL has developed a fully redesigned and consolidated logistics network for Bajaj Electricals, with storage optimisation, transportation management and inventory movement. As a part of the network, there will be two large ultra-modern mega-warehouses in Delhi and Mumbai. This network will operate fully IT-enabled fulfillment centres from which Bajaj Electricals. MLL will be deploying a healthy mix of dedicated long-haul fleets and local distribution trucks.

There will also be a transition towards sustainable logistics using electric delivery trucks from EDel by Mahindra Logistics.

Bajaj Electricals and Mahindra Logistics will continue to seek areas of logistics collaboration across businesses as a means of achieving competitive advantage and cost optimisation.

Shares of Mahindra Logistics zoomed as much as 13% to hit the day's high at Rs 543.

Bajaj Electricals was up 3.44% at Rs 1069.75 on the BSE.

Mahindra Logistics is an integrated third-party logistics (3PL) service provider, specializing in supply chain management and enterprise mobility (people transport solutions).

The company's consolidated net profit rose 17.36% to Rs 18.25 on a 15.29% increase in net sales to Rs 1046.75 crore in Q3 FY21 over Q3 FY20.

Powered by Capital Market - Live News