Mahindra Logistics Limited (MLL) has approved a Rs 35 crore investment in its wholly-owned subsidiary, MLL Express Services Private Limited (MESPL). The company aims to strengthen its express logistics segment by supporting working capital requirements and ensuring smooth operational continuity. This decision aligns with MLL’s broader strategy to enhance its footprint in the B2B express logistics market.
Rights Issue to Maintain 100% Ownership
MLL will subscribe to a rights issue of up to 3.5 million equity shares of MESPL at a face value of Rs 10 each. The company has structured this investment to be payable in cash at par value. This move ensures that MLL retains its complete ownership of MESPL, reinforcing its commitment to the express logistics segment. With this capital infusion, MESPL can enhance service efficiency, improve technology infrastructure, and streamline delivery networks.
Strategic Investments for Long-Term Growth
This latest investment follows a prior decision in October 2024, when MLL’s Board approved a Rs 50 crore investment in MESPL. The company had subscribed to a rights issue of 5 million equity shares at Rs 10 each during that period. These strategic capital infusions underscore MLL’s long-term commitment to strengthening express logistics operations, enhancing cost efficiencies, and driving business expansion.
Acquisition of Rivigo’s B2B Express Business
In November 2022, MLL, through MESPL, completed the acquisition of Rivigo Services’ B2B express business for Rs 220.9 crore. This acquisition significantly bolstered MLL’s position in the express logistics market by integrating Rivigo’s extensive network and expertise. Operating under the brand name “Rivigo by Mahindra Logistics,” MESPL has since expanded its service offerings and improved last-mile delivery efficiency.
Commitment to Profitability and Market Leadership
Mahindra Logistics remains dedicated to making its express logistics segment profitable through cost optimization, process efficiency, and innovative service models. The company has been focusing on streamlining its operations, leveraging technology, and expanding service reach to ensure sustainable growth. With these strategic investments, MLL aims to enhance customer experience, strengthen infrastructure, and improve delivery timelines.
Future Prospects for Mahindra Logistics
By continuing to invest in MESPL, MLL demonstrates its confidence in the growing demand for express logistics solutions. The company remains focused on driving efficiency, expanding market share, and maintaining leadership in the competitive logistics landscape. As e-commerce and supply chain requirements evolve, Mahindra Logistics is well-positioned to capitalize on emerging opportunities and deliver value-driven logistics solutions.
This investment not only strengthens MESPL’s financial foundation but also solidifies Mahindra Logistics’ strategic vision for the express logistics sector. With a clear roadmap and structured growth plan, the company is set to achieve greater operational excellence and industry leadership.
