Mahindra Logistics Limited (MLL) has announced a capital infusion of Rs. 35 crore into its wholly-owned subsidiary, MLL Express Services Private Limited (MESPL), which operates under the brand name Rivigo by Mahindra Logistics. This strategic move aims to support working capital requirements, ensure business continuity, and drive overall expansion in the B2B express logistics segment.

Mahindra Logistics Strengthens Its Subsidiary MESPL

MESPL has been a key player in the B2B express logistics space, providing end-to-end services across India. In the financial year ending March 31, 2024, MESPL reported a turnover of Rs. 364.22 crore, marking significant growth from Rs. 121.62 crore in FY 2022-23. This infusion of Rs. 35 crore will provide MESPL with the necessary financial stability to continue expanding operations and cater to its growing customer base.

Nature of Transaction & Regulatory Compliance

As MESPL is a wholly-owned subsidiary of Mahindra Logistics, this investment falls under related party transactions. However, since the transaction is at arm’s length, it remains compliant with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 under Regulation 23(5). Mahindra Logistics confirmed that except for its direct shareholding, its promoter group and related entities have no additional interest in MESPL.

Investment Details & Financial Structure

The capital infusion involves an investment of Rs. 35 crore in cash through the acquisition of 3.5 crore equity shares of Rs. 10 each, fully paid at face value. This investment does not alter Mahindra Logistics' 100% ownership of MESPL, ensuring continued control over its subsidiary's operations.

Strategic Importance of the Investment

This move is expected to significantly enhance MESPL’s operational efficiency, network reach, and technological advancements in express logistics. With a PAN-India presence covering over 19,000+ pin codes and 220+ processing centers, Rivigo by Mahindra Logistics has established itself as a strong player in the logistics industry. The investment aligns with Mahindra Logistics’ broader vision to scale up its express logistics business and improve service capabilities.

No Regulatory Approvals Required

Mahindra Logistics has confirmed that no government or regulatory approvals are required for this investment. The acquisition process is expected to be completed before March 31, 2025.

Mahindra Logistics’ Expansion Strategy in Logistics & Transportation

The logistics sector in India is witnessing rapid growth, driven by increasing demand for faster deliveries and enhanced supply chain solutions. Mahindra Logistics' commitment to strengthening its subsidiary reflects its long-term vision for dominating the express logistics industry.

Rivigo’s Performance & Growth Trajectory

MESPL was originally incorporated on December 4, 2006, and became a wholly-owned subsidiary of Mahindra Logistics on May 17, 2022, after Mahindra Logistics acquired its complete paid-up share capital from Mahindra & Mahindra Limited. Since then, MESPL has made substantial progress, particularly after acquiring Rivigo’s B2B express Part Truck Load (PTL) business on November 10, 2022.

The company has expanded significantly, covering over 220+ processing centers and a broad customer base across various industries. Its financial growth has been remarkable, with the latest figures showing a consolidated turnover of Rs. 364.22 crore in FY 2023-24, compared to Rs. 121.62 crore in FY 2022-23 and Rs. 57.92 crore in FY 2021-22.

Conclusion: A Step Forward for Mahindra Logistics

With this investment, Mahindra Logistics is reinforcing its commitment to expanding its express logistics business. The capital infusion will enable MESPL to enhance its services, maintain a strong market presence, and cater to increasing industry demands. This move is a part of Mahindra Logistics’ broader strategy to strengthen its logistics and transportation ecosystem, providing seamless solutions across the supply chain.

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