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Oct 31, 2017 01:54 PM IST | Source: CNBC-TV18

Uniquely placed as asset-light organisation in logistics space: Mahindra Logistics

The Mahindra Logistics' initial public offering (IPO) opens for subscription today and will remain open until November 2nd. In an interview to CNBC-TV18, Pirojshaw Sarkari, CEO of Mahindra Logistics spoke at length about the issue.

CNBC TV18 @moneycontrolcom

The Mahindra Logistics' initial public offering (IPO) opens for subscription today and will remain open till November 2nd. In an interview to CNBC-TV18, Pirojshaw Sarkari, CEO of Mahindra Logistics spoke at length about the issue.

It's a total offer for sale (OFS) issue. We have more than Rs 100 crore sitting in the company and we do not really need funds as we are an asset-light organisation, said Sarkari.

He further said that one of the areas that has been identified by Mahindra as a group is logistics to become a sector of the future.

According to him, the way to look at Mahindra Logistics is to divide it into two; Mahindra and Mahindra business and non-Mahindra business.

He further added that non-Mahindra business is growing at 65 percent CAGR in the last four years.

Talking about margins, he said we have uniquely placed ourselves as an asset-light organisation in the logistics space in India. An asset-light business requires very low capex and working capital and therefore, the return on equity that we provide to our stakeholders is very high.

Watch accompanying video for more details.
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