MahindraNSE 0.32 % Logistics is actively looking at acquisitions in the logistics-technology space as it tries to increase operational efficiencies through higher levels of digitisation, its chief executive has said.
“Especially (looking at acquisitions) in the tech analytics space,” Pirojshaw Sarkari told ET in an interview. Sarkari said Mahindra Logistics is in talks with two companies. Three months earlier, it invested in Transtech Logistics in a two-step transaction that will see it holding 51% in the logistics technology startup. Sarkari said the company aims to bring in higher levels of seamlessness in its business from “order to cash” through more digitisation.
It is also trying to consolidate its freight forwarding business, said Sarkari.
Mahindra Logistics listed itself on the bourses through a successful IPO last year. The company currently gets 57% from its revenue from the Mahindra, down from 88% in the last decade.
The logistics industry is seen to be on the threshold of unprecedented development with government initiatives such as GST and the eWay bill, the advent of ambitious and efficient e-commerce companies and growth in consumption in sectors such as retail.
Mahindra Logistics is also among several companies working with the government to bring in standardisation in assets and infrastructure from pallets to warehouses, grading of warehouses, standardisation of logistics contracts and proposals for trucking insurance among other things said Sarkari.
Source: Economic Times