Mahindra Logistics (MLL) jumped 6.54% to Rs 512 after the company signed an agreement with Bajaj Electricals for innovative logistics optimisation and outsourcing.
This deal is a complete end-to-end redesign and outsourcing of Bajaj Electricals' entire logistics by Mahindra Logistics, with the twin objectives of achieving enhanced & 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 1,000 crore over the next 5 years.MLL has developed a fully redesigned and consolidated logistics network for Bajaj Electricals, with storage optimisation, transportation management and inventory movement. As a part of the network, there will be two large ultra-modern mega-warehouses in Delhi and Mumbai. This network will operate fully IT-enabled fulfillment centres from which Bajaj Electricals. MLL will be deploying a healthy mix of dedicated long-haul fleets and local distribution trucks.
There will also be a transition towards sustainable logistics using electric delivery trucks from EDel by Mahindra Logistics.
Bajaj Electricals and Mahindra Logistics will continue to seek areas of logistics collaboration across businesses as a means of achieving competitive advantage and cost optimisation.
Shares of Mahindra Logistics zoomed as much as 13% to hit the day's high at Rs 543.
Bajaj Electricals was up 3.44% at Rs 1069.75 on the BSE.
Mahindra Logistics is an integrated third-party logistics (3PL) service provider, specializing in supply chain management and enterprise mobility (people transport solutions).
The company's consolidated net profit rose 17.36% to Rs 18.25 on a 15.29% increase in net sales to Rs 1046.75 crore in Q3 FY21 over Q3 FY20.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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