I would take this opportunity to thank you for your enduring trust inour abilities. It is this trust that empowers us liberates our thoughts and gives us theconfidence to boldly reimagine the future. This is a future where our success will beshaped by our sense of responsibility; this is a future that will see us enabling moreaccelerating more and caring more.
The year gone by has been perhaps the most challenging in the historyof your Company. Yet Mahindra Logistics (MLL) has emerged not only stronger financiallybut also with a deeper and more steadfast resolve to reimagine change and shape the futureof logistics and mobility in India.
In a year fraught with unimagined challenges we have continued to rise- in the face of challenges big or small in the goals we seek to fulfil in bringingpositive changes to people's lives. I am proud to say that we have continued to acceleratechange grow the business and enable communities to rise. The year gone by has beenperhaps the most challenging in the history of your Company. Yet Mahindra Logistics (MLL)has emerged not only stronger financially but also with a deeper and more steadfastresolve to reimagine change and shape the future of logistics and mobility in India. Letme put on record my deep appreciation and this is echoed by the Board for those of ourpeople who have continued to work through the pandemic - at times putting themselves andtheir families at risk - to keep essential services operating while providing relief tocommunities and those in need wherever and whenever possible. We owe a lot to our peopleand our business associates and without their support we would not have been able todeliver and exceed our commitments during the year.
The Changing Face of the Logistics Industry and our Business Model
Although change is intrinsic to our industry and though there has beena substantial change with the advent of the Goods and Service Tax there has never come atime when change of such immense proportions as those caused by the pandemic have beenthrust upon us. Both international trade and domestic logistics have undergone nothingshort of a revolution in a matter of 14 months. While this journey has been hard it hasalso created the ideal environment to reinvent and reimagine solutions offerings andbusiness models. Demand consumption channels supply and advantage have been completelyre-charted giving us opportunities never seen before. The advent of supply chainsfocussing on fulfilment logistics cross border logistics returns processing multi-modallogistics omni-channel retail and the emergence of direct-to- consumer as one of thefastest growing segments made us reimagine our focus areas and the way we deliver valueat MLL.
The scalability and flexibility of our asset-light business model hasallowed us to continue growing even in such challenging times. We have seen 28% growth inthe core segments of supply chain and freight forwarding achieved a revenue of Rs 3264crores and Profit After Tax (PAT) of Rs 31crores for FY21. A large part of the growth hasbeen driven by integrated solutions and our innovative approach to serving our customersdespite disruption and uncertainty. We have further pushed this envelope and have beenable to successfully execute end-to-end integration of solutions while taking overplanning and operating all logistics activities for customers.
The Future of Delivery Services
Despite the challenges this year we continuously worked towardsreimagining a sustainable future for logistics and our role in it. We secured ourselves afirm foothold in that future by launching one of India's largest electric vehicle basedlast mile delivery services EDel by Mahindra Logistics. EDel is already operationalacross six major cities in India and will be expanded to a total of 14 cities in the next12 months. EDel not only ensures a net zero carbon footprint delivery system in urban andsemi-urban areas but also does so by optimising economics with EVs better thanconventional vehicles. Our long-term association with the largest e-commerce and consumerproducts companies in India ensure that our fleet expansion plans and average utilisationare industry-leading as always. EDel is enabled by proprietary technology and controlsystems that are bound to enhance customer experience while ensuring safety and carbonneutrality.
Reimagining Solutions and Industry Focus
While leveraging change to drive growth has been a significant factorfor us this past year we have only been able to do so through our ability to changeadapt and adopt. Our freight forwarding business though severely affected at the start ofthe year has rapidly recalibrated value propositions and shown strong momentum. Two keysegments of our supply chain management business i.e. e-commerce and consumer logisticshave nearly doubled in size over the past 18 months and the ability to innovate and createnew solutions has been at the forefront of growth. This has been possible due to theintegration of solutions across diverse supply chain functions and processes as well asthe accretive bundling of technology in all that we do. Disruptive trends favouringscalability and the inherent flexibility of your Company's asset light business modelallowed us to recognise design for and deliver propositions ahead of competition.
Expanding Reach and Building World-class Facilities
We have also embarked on a journey of aggressive expansion of ourwarehousing footprint across the country setting up large format multi-user warehouseswith world class infrastructure facilities and operations. Your Company has added morethan 1 million sq. ft. of modern large format warehousing while following globalstandards on health and safety and environmental impact. The average utilisation of thisadded space has consistently been in excess of 97% and we have further contracted anadditional 4 million sq. ft. that will be inducted in the next few months as part of ourobjective of adding over 20 million sq. ft. in the next 36 months. The strategic locationof these new investments will give us and our customers unhindered access to every majorconsumption cluster in the country together with the proximity to production ormanufacturing centres. A key enabler has been our express partload and full-truck loadtransportation network that link manufacturers our warehouse network and consumers.
Staying Technology Focussed
We have continued to focus on developing and implementing world- classtechnology in both front-line as well as support functions. While helping us retain ourcompetitive advantage this gave us the freedom to innovate and grow in emerging segmentsand markets. Our key focus has also been on deploying the very best in data analytics toenhance customer experience and satisfaction. This year has seen us integrate alltransport management and track and trace technology into fully automated and intelligentcontrol towers. We have further deployed standardisation and control systems in ourwarehousing stores and linefeed and employee mobility businesses. This will not only helpus drive greater efficiency and quality in our services but has also enabled costoptimisation amid a challenging external environment.
Growing with our Partners
Our asset-light business model would not have retained its advantagewithout the support of a large trusted and expanding ecosystem of business associates. Wehave reimagined our approach to this critical pillar by launching and adopting a360-degree platform for our business associates This platform allows business partners togrow along with us while giving them a variety of loyalty benefits including financialincentives support and recognition. This collaborative ecosystem has allowed us to bringcentralised procurement scale benefits to our smaller partners while encouraging a focuson quality Environment Health Safety (EHS) and compliance.
Our objective is to create many more entrepreneurs small and mediumbusinesses owners and enable them to consistently succeed in the industry. We are furtherplanning educational financial safety compliance and best practices programmes for ourbusiness associates.
Driving Positive Change
Keeping with the lofty traditions of the Mahindra Group we at MLLtook another step towards securing greater diversity and inclusion among our people. Thisyear we have inducted more than 700 women into our frontline workforce encouraging womento take on non-traditional roles as MHE operators drivers and supervisors.
Our second careers programme Udaan allows women to return to theirprofessional life after a break.
We launched the LGBTQIA Inclusion policy to create an equal place towork for all including the LGBTQ+ community. Your Company has also formulated policies andsupportive processes for hiring and inducting persons with disabilities (PWD). This hasallowed us to bring into our family more than 80 PWD and 12 LGBTQ+ employees and create anequal and comfortable workplace. Last but not the least we are proud to announce a careertransition programme through direct employment for ex-armed forces personnel which hasallowed us to successfully induct over 12 personnel.
Keeping the Wheels Turning and Helping Communities
Even while recalibrating our growth strategies we remained aresponsible organisation that we have always been. Your Company remained at the forefrontof India's emergency response serving to its utmost needs of customers in thepharmaceutical food and grocery and other essential items segments despite alldifficulties. Helping these
We have also embarked on a journey of aggressive expansion of ourwarehousing footprint across the country setting up large format multi-user warehouseswith world class infrastructure facilities and operations. Your company has added morethan 1.4 million sq. ft. of modern large format warehousing while following globalstandards on health and safety and environmental impact. customers maintain supply anddeliveries of essential goods and lifesaving drugs was our biggest objective and our teamsperformed superlatively.
Simultaneously we launched Alyte free emergency services under ourEnterprise Mobility business Alyte. Through this service we provided free transportationservices to senior citizens or pregnant women who were in urgent need of medical attentionor wanted to go for vaccination and to thousands of people in dire need of transportationreached out to us for help through our helpline. Meanwhile our teams took it uponthemselves to support truck drivers stranded on the highways with food medicine and otherassistance. When normalcy returned with the lifting of the lockdown we were at theforefront resuming our services. This sense of service has been unflagging even duringthe second wave of COVID-19 infections sweeping the country.
The logistics industry will continue its robust growth but it is ourbelief that 3PL logistics will grow much faster and in turn lead to the growth offulfilment logistics channel consolidation cross border logistics express services
and integrated solutions. This places your Company in a unique positionto reimagine solutions grow and create new and innovative business models of the future.We will continue to invest where we see the most impact and what enables us to dream anddeliver big. With our intrinsic belief that doing well is not enough unless we can do goodas well we continue to rise to promote what is good for everyone in these challengingtimes.
I would like to express my heartfelt gratitude to all our employees andtheir families who have kept us Rising in these difficult times. I would also like tothank our MD and CEO Rampraveen Swaminathan and his team for leading by example andexemplifying the values of the Mahindra Group. Thank you and I wish you all the very bestof health and well-being.
Dr. Anish Shah
Chairman & Non-Executive Director