Mahindra Logistics JV Agreement With Seino Holdings For Expansion Into Indian Market

Seino Holdings Co. Ltd, a leading Japanese logistics firm, is venturing into the Indian market by collaborating with Mahindra Logistics Limited. The partnership aims to provide integrated logistics solutions, including auto outbound, warehousing and transportation, and a comprehensive technology suite, to Japanese automotive and strategic non-auto customers in India.

The size of the joint venture entity, JVCo. will be reflected in its initial paid-up capital, which is set to be ₹4 crore. JVCo.’s ownership structure will be divided equally, with Mahindra Logistics Limited holding 50% and Seino Holdings Co., Ltd holding the remaining 50%.

Seino Holdings can offer optimised logistics solutions and expand its reach across India by harnessing Mahindra Logistics’ extensive capabilities and network. The Indian automotive industry has experienced significant growth and is now the third-largest automotive market globally. With a focus on electric vehicles and initiatives like “Make In India,” the industry anticipates continued growth from Japan-based OEMs

Cost of Acquisition

Mahindra Logistics has approved an investment of up to ₹2.20 crore in JVCo.

Related Party Transaction

The company’s investment or subscription to the share capital of the Joint Venture Company (JVCo) does not constitute a Related Party Transaction. However, post-investment, JVCo. will be categorised as an associate of the company. Thus, it will fall under the related parties’ purview. Apart from the share capital held by the company in JVCo., neither the promoter nor the promoter group or any associated companies have any vested interest in JVCo.

In response to the partnership, Yoshitaka Taguchi, CEO of Seino Holdings Co. Ltd expressed optimism and stated, “Seino Holdings is expected to provide significant value to customers, and in collaboration with Mahindra Logistics’ unmatched capabilities, we endeavour to serve Japanese customers in India. Through this partnership, we will offer comprehensive logistics solutions supported by digitisation, innovation, and a customer-centric approach, allowing us to efficiently manage the end-to-end supply chain”.

About Mahindra Logistics

Mahindra Logistics Limited (MLL) is a third-party logistics (3PL) provider, focusing on supply chain management and enterprise mobility. With an “asset-light” approach, MLL delivers customised, technology-driven solutions across the supply chain and people mobility services to 400+ corporate clients in sectors including Automobile, Engineering, Consumer Goods, and E-commerce.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.