Mahindra Logistics of Mahindra Group has received an investment of Rs
200 crore for a significant minority stake from Kedaara Capital, according to a
media release from the company. This is the venture capitalists’ maiden
investment and is an endorsement of the long term growth potential of the
Indian logistics sector, it said.
Mahindra Logistics Limited (MLL), a subsidiary of Mahindra &
Mahindra Ltd, is India’s leading Third Party Logistics service provider. Over
the past four years, MLL has grown rapidly by diversifying its industry segment
focus, developing an integrated supply chain services portfolio, and unique
people transport solutions.
In 2009, the Mahindra Group identified logistics as a key focus area,
and since then MLL has been part of the Mahindra Partners division, the US$ 800
million quasi private equity division of the Mahindra Group.
Commenting on the deal, Pirojshaw Sarkari, CEO, MLL, said, “We are
delighted to have Kedaara on board with us. They will add significant value to
our expansion plans as well as in evaluating and executing an acquisition led
growth strategy. This is a significant step towards an IPO by 2017 and
achieving our vision of being India’s most preferred integrated logistics
Manish Kejriwal, Managing Partner, Kedaara Capital, said, “This
investment is in line with our focus of partnering with leading Indian business
groups to enhance the value of their businesses. We are privileged to have a
long standing, trust-based relationship with the Mahindra Group and are excited
at this opportunity to work alongside a terrific management team to help create
a world class 3PL company. Further, our
collaboration with Mahindra Partners will allow us to exploit many other
Sunish Sharma, Managing Partner, Kedaara Capital, added, “Third party
logistics is one of the most attractive sub-segments of the Indian logistics
industry. It is growing rapidly, driven by the recognition of efficiencies and
competitive advantages added by integrated 3PL service providers and the growth
of the underlying Indian economy. Mahindra Logistics is uniquely positioned to
leverage these tail winds given its scale, differentiated capabilities and high
quality professional management team.”
Mahindra Partners exemplifies how the Mahindra Group creates value by
nurturing and building new businesses of the future. Through a turnaround
process, they have made MLL into one of the ten most profitable companies
within the Mahindra Group.
According to Parag Shah, Managing Partner, Mahindra Partners, “We tap
the Group’s unique strengths of constant innovation, prudence and creative
business models while incubating new ventures. Kedaara perfectly complements
our strategy and is the ideal partner for MLL. For the Mahindra Group, a total
investment of Rs. 30 crore till date has now achieved a multifold return.”
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