This is the 2" Annual report of the Company as a listed entity. Iam happy to see that as a leading 3PL company in the country we are constantly raisingthe bar. We have successfully expanded our activities into new sectors by leveraging thetrust we have earned from our customers as well as our business partners and we thank allour valued stakeholders for their continued support.
During the financial year Mahindra Logistics continued its growthtrajectory. Consolidated revenues have risen to 3851 crores a growth of 13%. And theProfit Before Tax increased to 133 crores a growth of 31%.
While looking into the future of logistics in India we cannot divorceoneself from the awareness of the Company's role in society and the many lives it touchesdaily while servicing customers. Only those companies that share a common PURPOSEalongside an understanding of their obligations to the communities they operate in willconsistently prosper and enhance their anti-fragile capabilities. During this year TheCompany has articulated its PURPOSE -'Accelerating Commerce Empowering Communities toRISE'.
Our PURPOSE is based on five principles as stated below:
| Reimagining Solutions || Shaping the Industry || Earning Trust |
| Transforming Lives || Sustaining the Environment || |
Technology plays a vital role in logistics both in terms of operationsas well as the interface with the customers and business partners. The Company is focusingon technology-enabled solutions alongside value-added services and this will be the keyfocus area going forward as well. The Company continues its active investments intechnology both internally developed as well as through external partnerships. In October2018 we acquired a strategic stake in Transtech Logistics also known as ShipX. ShipX isa SaaS (Software as a Service) based Transport Management Solution (TMS) platform thatserves the supply chain automation needs for 3PLs shippers and transporters. Thisacquisition will strengthen Mahindra Logistics' strategy of being a technology-drivencompany. As part of Mahindra Logistics' post-GST strategy of launching modern facilitiesa new built-to-suit model warehouse space of 270000 sq. feet has been launched inChakan Pune. This state-of-the-art warehouse is a multi-product multi-user warehousewith the possibility of flexible capacities and tenure. Mahindra Logistics continues toevaluate more such opportunities to add to its warehousing footprint.
SHAPING THE INDUSTRY
As per the Economic Survey 2017-18 the Indian logistics sectorprovides livelihood to over 22 million people. Improving the efficiency of this sectorwould facilitate a 10% decrease in indirect logistics cost leading to a growth of 5-8% inexports. To achieve this the government has taken several decisions like establishing anew Logistics Department in the Ministry of Commerce unveiling of Draft NationalLogistics Policy inclusion of the logistics sector in the Harmonised Master List ofInfrastructure Subsector rapid work on dedicated freight corridors and emphasis onmulti-modal Iogistics.The Draft National Logistics Policy mentions that the IntegratedNational Logistics Action Plan will serve as an optimised master plan to define logisticspriorities across ministries including MoRTH (Ministry of Shipping Ministry ofRailways) Ministry of Civil Aviation Department of Posts and the user ministries(Ministry of Coal Ministry of Steel Ministry of Mines) and others. In line with MahindraLogistics' PURPOSE principle of Shaping the Industry the Company constantly works withindustry bodies and the government in supporting the above initiatives. If the efficiencyof logistics movement in the country does not improve India cannot be competitive in itsmanufacturing. Today 75% of the country's goods are transported by road and driver welfareand training are fundamental levers in increasing the performance of this sector. Thesedrivers literally drive our economy and Mahindra Logistics has over the last many yearsrecognised the value of their contributions. In the current year Mahindra Logisticsundertook the additional goal of up-skilling 10000 drivers across the country under thePradhan Mantri Kaushal Vikas Yojana (PMKVY) with a focus on sensitising training andempowering them about safety security and welfare aspects. The training programme covered229 locations pan India. While the primary focus of this programme was to train driverswho are associated with Mahindra Logistics it was extended to many other drivers who workfor the industry at large.
Mr. Anand Mahindra Chairman of Mahindra & Mahindra Ltd. in hisletter to the Prime Minister Mr. Narendra Modi says "For me this is a significantachievement as a responsible business group and I have no doubt that Mahindra Logisticswill continue to support MAKE IN INDIA with their focus on MOVE IN INDIA while up-skillingdrivers".
During the year the Company worked closely with its customers inmanaging and improving their supply chains. This involved redesigning supply chains in thepost GST environment supporting new product launches handling peak volumes usingmultimodal transportation relocating facilities and seamless transition from earlierservice providers including integrating technologies. Mahindra Logistics has over theyears gained the trust of its valuable business partners to strengthen its asset-lightmodel and empowered them to grow along with the Company. A Business Partner Council hasbeen formed to improve these partnerships through sharing business governance practicesupgrading their technology platforms training in customer-centricity basic etiquetteamongst others.
In continuation with its commitment towards society the Company hasadopted another village called Tembha in Thane District with the objective ofcontinuously improving the overall development of the villagers and their physicalinfrastructure. Mahindra Logistics also continues several other initiatives through itsCSR outreach and employee contributions which are outlined in greater detail in thisreport. Zero Accident is a philosophy in itself not just a numerical goal. Thisphilosophy states that nobody should be injured due to an accident and that all accidentsare preventable. Therefore Mahindra Logistics is working towards creating a 'ZeroAccident Zone' on the Nashik - Bhiwandi Expresswaya major corridor where the Companyoperates.
SUSTAINING THE ENVIRONMENT
Mahindra Logistics continues to demonstrate leadership in aiming forgrowth with a sustainable footprint across all its activities. Several initiatives are inprogress towards achieving this goal including the adoption of electric vehicles whereverfeasible redesigning warehouses and upgradation of older vehicles.
Looking ahead this industry will see innovative disruption through theimpact of digitisation creating unprecedented opportunities to redefine business modelsdramatically improve sustainable operating efficiencies and enhance customer experiences.Mahindra Logistics aims to retain a leadership position and drive this transformationagenda to achieve industry leading growth through: - Focus on customer-centricity:Developing new business models and value-added solutions while simultaneously expandingthe Company's geographic and service footprint across new customers and industry segments.
- Technology enablement: Catalysing innovation by embedding technologyand analytics across every process and channel so as to deliver with speed agility andpredictability.
- Purpose led growth: Which recognises the Company's governance socialand sustainability obligations as the north star in daily activities. In conclusion Iwould like to state that while we operate in a favourable economic environment existingand emerging competitive forces of technology start-ups and the unorganised sector willcontinue to challenge the Company. As an industry leader we shall aim to deliverconsistent purposeful growth in revenues and profits. I thank all the stakeholders fortheir trust and belief and I look forward to their continued support.
|Warm Regards |
|Zhooben Bhiwandiwala |