New Delhi: Mahindra Logistics, the transportation and logistics arm of the Mahindra & Mahindra group on Tuesday said it is scouting for a partner in China as it looks to expand its new foray into the international markets.
The company, which clocked a turnover of Rs 1,000 crore last fiscal, is eyeing a growth of 25% this year.
It also plans to set up 11 warehouses in North, South and West India in partnership with developers to enhance its supply chain management services ahead of the planned rolled out of Goods and Services Tax.
“We are looking at all the international markets for freight forwarding by both sea and air. The top two priority markets are the US and China,” Mahindra Logistics CEO Pirojshaw Sarkari told PTI.
Considering the traffic between India and China, he said the company is “looking for a partner in China to expand the freight business”.
“As for the US market we are currently developing lane,” he said, adding, the choosing a partner would come later.
Six months back Mahindra Logistics had started its international vertical in sync with the global expansion of the M&M group and got into freight forwarding.
On the domestic front, Sarkari said the company expects consolidation by many corporates in their logistics chain once GST is introduced in India and Mahindra Logistics would look to tap the opportunity by strengthening its warehousing facility.
“We will be setting up three mega warehouses of 5,00,000 sq ft and another eight smaller ones of around 1,50,000-2,00,000 sq ft,” he said.
The three mega warehouses will come up in North, South and West India.
These will be leased out from developers who will build them according to the company’s requirements, he added.
On the revenue side, Sarkari said: “Last fiscal we crossed the Rs 1,000 crore mark and this year we are looking at a growth of 25%.”
Out of the total, Rs 300 crore were from the people transport services provided to many BPOs, ITes and other corporates, he said, adding the rest Rs 700 crore were from the supply chain management vertical.
Sarkari said the company has made investments of over Rs 10 crore in technology and “with a growing focus on transportation, warehousing and international logistics, we are set to become truly globally competitive”.