Mahindra Logistic Ltd (MLL), a leading third-party logistics (3PL) solution provider, has made a significant move in expanding its warehousing capabilities. The company has announced the establishment of a new warehousing facility in Phaltan, Maharashtra, dedicated to serving Cummins India, a global power leader in the design, manufacture, and distribution of engines and power solutions.

Strategic Partnership

This new development marks an important step in the strategic partnership between Mahindra Logistics and Cummins India. The decision to set up a dedicated warehousing facility underscores the growing relationship between the two companies and Mahindra Logistics' commitment to providing tailored logistics solutions to its clients.

Expansion of Operations

The establishment of the new warehouse in Phaltan signifies a notable expansion of Mahindra Logistics' operations. This move is likely to enhance the company's warehousing footprint and strengthen its position in the logistics sector. By setting up a facility specifically for Cummins India, Mahindra Logistics demonstrates its capability to offer customized solutions to meet the unique requirements of its clients.

Location Significance

Phaltan, located in Maharashtra's Satara district, is known for its industrial development. The choice of this location for the new warehouse could be strategic, potentially offering advantages such as proximity to Cummins India's manufacturing facilities or key transportation routes.

Implications for Both Companies

For Mahindra Logistics, this new facility represents an opportunity to deepen its relationship with a significant client and potentially increase its revenue streams. It also showcases the company's ability to execute large-scale, client-specific projects.

For Cummins India, partnering with a reputable logistics provider like Mahindra Logistics for a dedicated warehousing solution could lead to improved supply chain efficiency and better inventory management.

Conclusion

This development is a testament to Mahindra Logistics' continued focus on expanding its service offerings and client base in the competitive logistics sector. As the logistics industry continues to evolve, such strategic partnerships and dedicated facilities may become increasingly important for companies looking to optimize their supply chain operations.

Mahindra Logistics , one of India's leading integrated logistics solutions providers, has reported a mixed set of financial results for the fourth quarter and fiscal year ended March 31, 2025, with significant growth in key segments and a substantial increase in standalone profit.

Financial Performance

Q4 FY2025

• Standalone Profit After Tax (PAT): ₹13.12 crore, up 67% year-over-year (YoY)
• Standalone revenue: ₹1,293.00 crore
• Consolidated net loss narrowed to ₹6.75 crore
• Consolidated revenue: ₹1,569.51 crore, up 8.00% YoY
• Contract logistics grew 9.00% YoY
• Cross-border logistics increased 20.00% YoY
• Last mile delivery expanded 10.00% YoY
• B2B express revenue declined 4.00% YoY, but volumes recovered quarter-on-quarter

Full Fiscal Year 2025

• Consolidated revenue grew 11.00% YoY

Segment Performance

Supply Chain Management

This segment, which includes Contract Logistics, Cross Border, and Last Mile Delivery services, showed strong growth:

Major expansions in warehousing are currently in progress.

Strategic Initiatives

The company highlighted several key initiatives during the year:

• Continued focus on expanding margins through:
  • Increased share of solutions
  • Cost management
  • Turnaround of the express business
• Ongoing major expansions in warehousing

Management Changes and Dividend

• Hemant Sikka appointed as new MD and CEO
• The board recommended a final dividend of ₹2.50 per share

Management Commentary

The company's management emphasized the positive trend of revenue growth, driven by growth in 3PL contract logistics and Express. They noted that for the full year, revenue grew by 11.00%, driven by:

• Account additions
• New offerings
• New launches

Mahindra Logistics continues to focus on leveraging its strengths in integrated logistics solutions and expanding margins to drive future growth, despite challenges in the B2B express business.