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This Article is From Mar 04, 2021

Mahindra Logistics’ Large-Ticket Deal Win: ICICI Securities

Mahindra Logistics’ Large-Ticket Deal Win: ICICI Securities

Mahindra Logistics’ Large-Ticket Deal Win: ICICI Securities
An employee pulls a pallet loaded with boxes inside a warehouse. (Photographer: Dhiraj Singh/Bloomberg)

BQ Blue's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BloombergQuint's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Bajaj Electricals Ltd. and Mahindra Logistics Ltd. have announced they have signed a contract for innovative logistics optimisation and outsourcing.

The deal is a complete end-to-end redesign and outsourcing of Bajaj Electricals' entire logistics by Mahindra Logistics, with the twin objective of achieving enhanced and 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 10 billion over the next five years (more than Rs 2 billion per annum).

Margins, we believe, can be in the 9-10% range given the typical mix of warehousing and transportation involved in any end-to-end supply chain management contract.

Click on the attachment to read the full report:

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This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

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