Mahindra Logistics continues to drive innovation in India’s logistics sector by launching new infrastructure, fostering startup collaborations, and maintaining a strong sustainability focus. Despite financial challenges, the company remains committed to expanding its capabilities and enhancing efficiency across its supply chain operations.
Catapult 4.0: Fostering Innovation Through Startup Collaboration
Mahindra Logistics successfully concluded its fourth incubator program, Catapult 4.0, which focuses on co-creating cutting-edge logistics solutions with Indian startups. The program featured eight startups—Tarsyer, Vecros, Tokere, Ignomagine, Electrike, Quargos, KaviRise, and Nebularc—working on drones, smart warehousing, computer vision, and sustainable material handling solutions.
By participating in Catapult 4.0, these startups received hands-on mentorship, industry insights, and real-world exposure to help refine and scale their solutions. The program also included masterclasses on market strategies, business sustainability, and effective storytelling, ensuring participants gained essential entrepreneurial skills. Additionally, Mahindra Logistics introduced the Catapult Techathon 2.0, an initiative designed to engage college students in solving real-world logistics challenges through an intensive eight-week development process.
Expanding Warehousing Capabilities with Sustainability Focus
Mahindra Logistics continues to strengthen its infrastructure with two large warehousing facilities, reinforcing its role as a leader in sustainable logistics operations. The company recently unveiled a 6.5 lakh square feet warehouse in Bhiwandi, near Mumbai, which serves key industrial sectors such as automotive, e-commerce, and FMCG.
This state-of-the-art facility, strategically located near India’s largest port, enhances supply chain efficiency by providing seamless connectivity and advanced logistics capabilities. The warehouse incorporates 100% on-site renewable energy, efficient waste management systems, and a significant green cover, earning it an IGBC platinum certification for sustainability.
With 84 docks, a 13-meter clear height, and a load-bearing capacity of 8 MT/M², the Bhiwandi warehouse is designed to optimize storage, streamline operations, and maximize efficiency across multiple industries.
Phaltan Warehouse Expansion: Strengthening Support for Manufacturing
Beyond its Bhiwandi facility, Mahindra Logistics has announced another 6.5 lakh square feet warehousing project in Phaltan, near Pune, with an investment of ₹170 crore. This facility, developed in two phases, will primarily support automotive and manufacturing clients. The first phase, covering 3.5 lakh square feet, is scheduled for completion by the end of 2024.
Following the company’s commitment to sustainability, the Phaltan warehouse will incorporate renewable energy sources and green warehousing practices, further reinforcing Mahindra Logistics‘ eco-conscious approach to infrastructure expansion.
Financial Challenges and Growth Strategies
Despite its expansion and innovation efforts, Mahindra Logistics faced a 54% drop in standalone Profit After Tax (PAT), recording ₹8.5 crore in the September 2024 quarter, compared to ₹18.6 crore in the previous year’s same period. However, the company’s revenue grew by 9% to ₹1,236 crore, indicating a strong demand for its logistics solutions.
Mahindra Logistics attributes the profit decline to significant investments in capacity expansion and rising operational costs. However, the company expects improved financial performance in the latter half of the fiscal year, driven by enhanced efficiencies and new business opportunities.
Positive Outlook Amid Financial Setbacks
In Q1 FY25, Mahindra Logistics reported a net loss of ₹9.32 crore, slightly widening from the ₹8.55 crore loss in the same quarter last year. Despite this, the company achieved a 9.8% increase in revenue, reaching ₹1,420.02 crore, up from ₹1,293.22 crore in Q1 FY24.
The 3PL contract logistics and freight forwarding segments continued performing well, demonstrating Mahindra Logistics’ ability to adapt to evolving market demands. The company remains optimistic about its future, citing ongoing investments, strategic partnerships, and infrastructure development as key factors driving long-term success.
Mahindra Logistics’ Commitment to Innovation and Sustainability
Mahindra Logistics’ latest initiatives reinforce its position as a frontrunner in India’s logistics industry, balancing innovation, expansion, and sustainability. By investing in high-tech warehousing, supporting startup-led solutions, and maintaining a long-term vision for growth, the company aims to redefine logistics efficiency while reducing environmental impact.
Although financial challenges persist, Mahindra Logistics remains focused on expanding its capabilities, strengthening strategic partnerships, and integrating cutting-edge technology to navigate the ever-evolving logistics landscape successfully.
