Mahindra Logistics Ltd (MLL), a subsidiary of Mahindra & Mahindra Ltd, has acquired a controlling equity stake in Mumbai-based international freight forwarding company Lords Freight (India) Pvt Ltd for an undisclosed amount, as per a company statement.
The fund will be used for Lords Freight’s expansion plans. Lords Freight was founded in 2011 and is based out of Mumbai with a presence in most major cities in India.
“This investment by MLL will allow us to pursue a strategy of enhancing our capabilities and expanding our international presence, while simultaneously leveraging MLL’s customer base and process methodologies,” said Shamsudeen Ahmed, chairman, Lords Freight (India).
“With this acquisition, MLL’s service portfolio will be considerably enhanced. Lords presented an ideal opportunity for us given its proven track record of growth, strong focus on quality and the fact that it has a strong cultural fit with Mahindra Logistics,” said Pirojshaw Sarkari, CEO, Mahindra Logistics Ltd.
In April, private equity firm Kedaara Capital invested Rs 200 crore ($33.1 million) in Mahindra Logistics for a significant minority stake.
“Since our partnership with Kedaara Capital earlier this year, we see a very clear path to an IPO for Mahindra Logistics. It is our goal to grow to Rs 6,000 crore and this is the first of several in-organic steps we have planned,” said Parag Shah, Managing Partner, Mahindra Partners.
Mahindra Logistics is a third party logistics (3PL) service provider. It takes care of M&M’s supply chain needs, including inbound and outbound logistics, inter-plant movement, warehousing, line-feed and value-added services.
It also provides people transport solutions, a specialised line of business which helps corporate clients move employees to and from the workplace.
On the other hand, Lords Freight is a global freight forwarding company with capabilities in customs brokerage, transportation and warehousing.
(Edited by Joby Puthuparampil Johnson)