Mahindra Logistics to be Hived off as a Separate Company
Monday, October 01, 2007The Mahindra Group is planning to hive off its logistics division, Mahindra Logistics, into a different company. The group will invest at close to Rs 1,200 crore for expansion of the business.
Mahindra Logistics is also reportedly in talks with international players in similar businesses for investing and exploring joint venture possibilities.
The report indicated that usually large firms have a logistics division to handle in-house and external transportation business. But as the Indian economy continues to grow at near double digit rates, the demand for logistics, as well as the sector itself, is rapidly increasing.
Mahindra Logistics handles transportation requirements of specified projects for other companies. It also offers corporate employee transportation services mainly to information technology and outsourcing companies.
Mukesh Ambani is also entering Logistics in a big way. Previously he was unsuccessful in BUYING out India's largest Logistics company - VRL - Vijayanand Roadlines Pvt Ltd. VRL will go public sometime in 2008 according to our sources.
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