Mahindra Logistics’ Large-Ticket Deal Win: ICICI Securities
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ICICI Securities Report
Bajaj Electricals Ltd. and Mahindra Logistics Ltd. have announced they have signed a contract for innovative logistics optimisation and outsourcing.
The deal is a complete end-to-end redesign and outsourcing of Bajaj Electricals’ entire logistics by Mahindra Logistics, with the twin objective of achieving enhanced and industry-best service levels, coupled with a logistics cost saving in excess of 25%.
The total contract value of this deal will be in excess of Rs 10 billion over the next five years (more than Rs 2 billion per annum).
Margins, we believe, can be in the 9-10% range given the typical mix of warehousing and transportation involved in any end-to-end supply chain management contract.
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