Mahindra Group stock engaged in the business of providing third-party logistics in talk after it announced the development of a state-of-the-art warehousing facility with an investment of Rs. 170 Crores.
At 12:25 p.m the shares of Mahindra Logistics Limited were trading at Rs. 431.90, down 0.87 percent from its previous day’s close price of Rs. 435.70 and its market capitalization is Rs. 3,114.84 Crores.
Mahindra Logistics Limited has announced the development of a state-of-the-art warehousing facility in Phaltan, near Pune encompassing an expansive area of 6.5 lakh sq. ft.,. It will be developed in two phases with the first phase, comprising .5 lakh sq. ft., scheduled to be operational by the end of 2024.
The new warehousing facility is spread over an area of 25 acres in Phaltan and is strategically located near key customers in auto OEM & components. Through this warehouse, it will manage inbound logistics to manufacturing and distribution solutions of diverse clients in automotive and manufacturing sectors, located in the region.
The new facility will be integrated with Mahindra Logistics Limited’s national network of warehouses, full truckload, and express parcel service. Phase 1 has been contracted to a manufacturing customer and will function as their national logistics center and go live by Q3, 2024-25.
The company and its partners are set to invest Rs. 170 crores in capital across multiple phases to develop the new facility and related infrastructure. As a part of this announcement, Mahindra Logistics Limited also plans to dedicate resources to skill development initiatives, creating employment opportunities for more than 500 individuals in the region.
Mahindra Logistics Limited is one of the largest third-party logistics companies in India, that provides customized logistic solutions to organizations by integrating the right technology across diverse industry verticals such as Automotive, Engineering, Consumer Goods, Pharmaceuticals, and many more.
Its revenue from operations grew by 23.85 percent from Rs. 4,140.76 Crores in FY22 to Rs. 5,128.29 Crores in FY23, accompanied by increasing profits of Rs. 15.06 Crores to Rs. 27.42 Crores.
It has reported a return on equity (ROE) of 4.45 percent and a return on capital employed (ROCE) of 7.36 percent, it is making decent returns on its equity and capital employed.
Written by: Bharath K.S
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