Mahindra Logistics Ltd. (MLL) and Rivigo Services Private Limited (RSPL) announced 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 fullservice 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.
Sale/Transfer of Enterprise Mobility Business of the Company to MLL Mobility Private Limited
Mahindra Logistics entered into a Business Transfer Agreement with MLL Mobility Private Limited (formerly known as Meru Mobility Tech Private Limited) (“MMPL”), wholly-owned subsidiary of the Company for sale/transfer of the Enterprise Mobility business of the Company as a going concern on slump exchange basis, effective 1 October 2022, for a lump sum consideration of Rs. 36.12 crore to be discharged by MMPL through issue of equity shares to the Company, on the terms and conditions more specifically defined in the said agreement.
During financial year 2021-22, the EM business earned a turnover of Rs. 144.4 crore, which constituted 3.97% of the Standalone Turnover of the Company for the year 2021-22.
The EM business being part of the Company’s overall business, its net worth not separately computed by the Company. The Gross Margin of the EM business of the Company for the financial year 2021-22 amounted to Rs. 11.5 crore
MMPL is in the business of providing B2C transportation services and corporate transportation service solutions to companies in various sectors such as BPOs, Banking, IT and ITES in ride hail segment. MMPL has a large number of Electric Vehicles in their fleet.