Mahindra Logistics Ltd. has agreed to form a joint venture with Japan's Seino Holdings Co. to address warehousing and trucking needs of Japanese auto firms operating in India.
The joint venture, an equal partnership, will see the integrated third-party logistics service provider infuse up to Rs 2.2 crore in one or more tranches, according to an exchange filing on Thursday. The initial paid-up capital is set at Rs 4 crore. Following the investment, the joint venture will become an associate of Mahindra Logistics, and hence, a related party.
“In collaboration with Mahindra Logistics, we endeavour to serve Japanese customers in India,” Yoshitaka Taguchi, chief executive at Seino Holdings, said in a statement. “Through this partnership, we will offer comprehensive logistics solutions supported by digitisation…allowing us to efficiently manage the end-to-end supply chain.”
Seino Holdings will have the right to nominate any one of its directors as the chief executive officer of the joint venture. Mahindra Logistics will have the right to nominate a candidate as finance head.
“Seino Holdings is in alignment with our commitment to deliver exceptional customer experiences and robust process capabilities throughout the supply chain,” Mahindra Logistics CEO Rampraveen Swaminathan said in the statement. “We envision this partnership to create a Rs 1,000-crore business model over the next five years.”
On Thursday, Mahindra Logistics shares rose 0.93% to Rs 435.25 apiece on the BSE, even as the benchmark Sensex ended the day 0.83% lower at 73,885.60 points.
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