Mahindra Logistics to invest up to Rs 7 cr in ShipX

Mahindra Logistics (MLL), a third-party logistics solution provider, today said it will invest up to Rs 7 crore in Transtech Logistics (TLPL), which provides transport management solutions under the brand name 'ShipX'.

Under the transaction, MLL will acquire up to 1,15,554 compulsory convertible preference shares and 100 equity shares, MLL said in a regulatory filing.

The company would make aggregate investment of up to Rs 7 crore in TLPL through subscription to its shares, it added.

The transaction is expected to be completed by August 31, 2020.

"The proposed investment in TLPL, which has built a technology platform, is expected to bring operational efficiencies in the supply chain management function of the company," MLL said.

It added that the transaction will also provide opportunities to the company to offer technology solutions to its customers and business partners.

Also, this is part of the larger end-to-end digitisation plan for MLL.

MLL has been a customer to ShipX for over three years and has been using the product for its supply chain management vertical.

Incorporated in October, 2008, TLPL operates from Bengaluru and had registered revenue of Rs 53 lakh in FY17-18.

"Logistics in future will be more technology driven both in terms of our own operations, as well as interfaces with our customers and business partners. With our asset light business model, we are already like a 'platform'," Mahindra Logistics CEO Pirojshaw Sarkari said.

The strengthening of the relationship with ShipX opens up a new opportunity to take this to the next level, he added.

Amarnath Kalale, co-founder of Transtech, said the investment will help the company in developing more product features and strengthening the organisation.

Shares of MLL were trading marginally higher from yesterday's closing on the BSE at Rs 561.30 per share.