Mahindra Logistics shares surge 13% to hit 52-week high on new agreement with Bajaj Electricals

Updated : March 04, 2021 12:03 PM IST

The MLL stock rose as much as 13 percent to its 52-week high of Rs 543 per share on the BSE.

Bajaj Electricals also rose as much as 6.2 percent to its day's high of 1,099 per share.

Mahindra Logistics (MLL) shares rallied 13 percent to a 52-week high of Rs 543 on Thursday, in a weak market. MLL said it has won a contract from Bajaj Electrical for Rs 1000 crore over five years. The deal is a complete end-to-end redesign and outsourcing of Bajaj Electricals’ entire logistics operations to Mahindra Logistics.

The Bajaj Electricals stock rose 6.2 percent to its day's high of Rs 1,099.

The twin objectives of the deal will be achieving enhanced service levels, coupled with a logistics cost saving in excess of 25 percent, the company said in a press release. It added that the total contract value of this deal will be in excess of Rs 1,000 crore over the next 5 years and is the outcome of a unique and collaborative solution.

As part of the solution, Mahindra Logistics will be deploying a healthy mix of dedicated long-haul fleets and local distribution trucks, enabled by the latest tracking technology and control tower operations.

Speaking on the occasion, Anuj Poddar, Executive Director of Bajaj Electrical, said, "This collaboration with MLL is one such key initiative and I am confident that it will help transform our logistics, help us serve our customers efficiently, strengthen our competitiveness and also drive improved margins."

Mahindra Logistics MD Rampraveen Swaminathan said “I believe what we are aiming to do for BEL is truly unique and exceptional; enhancing service levels to their customers significantly, while simultaneously driving down costs. I don’t think this would be possible without the extensive use of technology - across network design, warehouse management and transport optimisation and control."

Published : March 04, 2021 11:31 AM IST

Mahindra Logistics shares surge 13% to hit 52-week high on new agreement with Bajaj Electricals

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