"MLL has announced a partnership with Indian Vehicle Carriers (IVC), to be branded as 2x2 Logistics, aimed at launching assetised operations in outbound automotive logistics, offering OEMs global standards of service and technology," a release issued here said.
Mahindra Logistics, a subsidiary of Mahindra & Mahindra, will have a majority stake in the new entity and will initially invest in 100 specially designed car carriers to serve automobile and two-wheeler OEMs.
"It will help strengthen our operating capabilities in automotive logistics, our largest target industry vertical, with a clear focus on technology, quality and corporate governance. Forming such partnerships with our business associates will be an important part of our growth and success," MLL Chief Executive Pirojshaw Sarkari said.
This partnership will allow MLL and IVC to further develop and expand their transportation networks, linking the north, west, south and east clusters of production and consumption of automobiles, the release said.
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2x2 Logistics will allow MLL to build a significant asset base and enhance its pan-India transportation network, leading us that much closer to an IPO by 2017.
MLL has been aggressively expanding its business with a focus on multiple industry verticals. In August, MLL acquired a majority stake in Lords Freight soon after private equity firm Kedaara Capital bought a significant minority stake for Rs 200 crore in the logistics company.