Mahindra Logistics yesterday signed a deal with Bajaj Electricals for integrated logistics services and based on this news, the stock today opened over 4% higher at Rs.500 and soon went on to hit a new high at Rs.543.60. It is now trading at Rs,506 levels.
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, will be in excess of Rs.1,000 crore over the next 5 years.
Mahindra, for Bajaj has developed a fully redesigned and consolidated logistics network, with storage optimisation, transportation management and inventory movement through technology, best practice and automation. At the heart of the network, there will be two large ultramodern mega-warehouses in Delhi and Mumbai, with latest technology, automation and skillbuilding, enhanced by environmentally conscious, greener & sustainable warehouse practices.
This network will further operate fully IT-enabled fulfilment centres from which BEL’s dealers, distributors, customers will enjoy market-leading delivery lead times.
As part of the solution, Mahindra will be deploying a healthy mix of dedicated long-haul fleets and local distribution trucks, enabled by the latest tracking technology and control tower operation.
Those tracking the stock say that this is great news for Mahindra Logistics as it will be able to finally break free from the over dependence on Mahindra & Mahindra for all business.