Following the news that Mahindra Logistics reached an annual turnover of 1,000 crore ($219m) last year to become one of India’s largest integrated 3PLs, the company’s CEO Pirojshaw Sarkari has revealed that it intends to double that figure by 2015 and will concentrate on logistics training to back up its development plans with the necessary expertise.
“When I came in last year, I set myself the objective of making Mahindra Logistics India’s largest and most preferred integrated LSP by 2015,” Sarkari told Automotive Logistics News. “That is what we are aiming at as a team to get to. We are at a 1,000 crore this year and we are aiming at 2,000 crores by 2015.”
He went on to say that because skilled manpower was scarce in India the company was focusing on raising the standard with the establishment of an in-house training institute to create the logistics expertise essential for its development plans, with 25% growth targeted this year.
Mahindra Logistics is also in the process of introducing Oracle’s Transport Management System to its business, beginning in its outbound division. Once followed by implementation in the company’s inbound division it will be the largest Oracle TMS implementation in India according to Sarkari, a significant move given the automotive industry’s generally inconsistent take up of TMS.
“I think the differentiating factor will come in through the basic track and trace that OTM will provide for our customers and their dealers in the automotive segment. And also the predictability, which is also really scarce right now in India,” he said.
Mahindra Logistics is focused on building its already strong presence in the automotive sector in India. It has captive business supporting sister company Mahindra & Mahindra, India’s fourth largest carmaker in terms of volume with just more than 167,000 vehicles sold last year and with recorded sales of 37,522 units in March, an 18% rise on the same period last year. Additionally, in the last couple of years Mahindra Logistics has secured business with Ashok Leyland, one of the largest trucking companies in the country, as well as providing storage and linefeed operations for General Motors’ Halol and Talegaon facilities.
The company is also concentrating on business expansion in China and the US. In China Mahindra & Mahindra already has two joint ventures for tractor production: Mahindra (China) Tractor, with Jiangling Motor Company Group; and Mahindra Yueda Yancheng Tractor Company, a joint venture with Jiangsu Yueda Yancheng Tractor Manufacturing.
“I am looking forward to the third quarter of this year to take on the logistics for these factories in China,” said Sarkari.
Mahindra and Mahindra’s Farm Equipment division has three plants that assemble tractors, which the logistics division is also aiming to support.
In the US, meanwhile, the company is hoping to build on its existing supply of spare parts to Navistar by targeting the wider commercial vehicle and automotive market.
“We are looking forward to being a supplier of spares, which is going to happen from India in a big way for automotive in the US,” said Sarkari.
