Mahindra Logistics to acquire Rivigo's B2B express business; Stock slips 1%

10 Nov 2022 , 11:31 AM

Mahindra Logistics Ltd. (MLL) and Rivigo Services Private Limited (RSPL) has announced on Thursday that they had reached agreement for purchase of RSPL's B2B express business by MLL.

Under the terms of the agreement, MLL will acquire the express business through a Business Transfer Agreement (BTA), including the customers, team and assets of RPSL's B2B express business, RSPL's technology platform and the Rivigo brand. RSPL will continue to own its truck fleet & the rights to the full truck load (FTL) operations.

MLL, one of India's leading integrated logistics companies, is focused on providing customers supply chain solutions, integrating its 3PL, FTL transportation, warehousing, cross border logistics, last mile and B2B express logistics services. The acquisition will augment MLL's existing B2B express business leveraging Rivigo's strong network, technology and process capabilities.

Gurgaon based Rivigo operates a pan India B2B express network, has a robust client base and a full-service technology suite. Rivigo's B2B express network currently covers over 19,000 pin-codes across the nation. Their 250+ processing centres and branches, spanning an area more than 1.5 million sq. ft. will add significant strength to MLL's express business capability.

Speaking on the occasion, Rampraveen Swaminathan, MD & CEO, Mahindra Logistics Limited said, "B2B Express Logistics continues to see strong tailwinds as customers focus on deepening delivery networks, enhance digital adoption and invest in agile supply chains. This acquisition will enhance and strengthen our offerings and reach for our customers in the B2B express and PTL space.

Team Rivigo has built deep capabilities, and we look forward to building on the strengths as we integrate the businesses. We are excited by the team, as they share a common ethos with a shared focus on empowering drivers & communities".

At around 11:28 AM, Mahindra Logistics Ltd is currently trading at Rs512 per share down by Rs7.5 or 1.44% from its previous closing of Rs519.50 per share on the BSE.

For feedback and suggestions, write to us at [e-mail]