 "Patel Logistics floats JV with Saudi firm")
The joint venture, Pivot Logistics, expects to earn around Rs 40 crore in revenue over the next three years and plans to have over 50 warehousing and logistics points to begin with, Patel Logistics said in a statement today.
Under the JV agreement, which does not involve any cash transaction, Patel will share its know-how, manpower and technology to set up and manage end-to-end operations in the highly fragmented Gulf logistics sector which is undergoing radical changes following a big knock on their finances after the steep plunge in crude prices.
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"With the lucrative margin available in the Gulf countries, the JV is expected to significantly enhance the bottom line of Patel Logistics," company's executive vice-chairman Areef Patel said.
He said the JV will not be limited to Saudi Arabia but will soon have operations in Dubai and then across the Gulf by 2018.
"The Saudi logistics sector is highly unorganised with low tech penetration and we see bright prospects of growth, given our track record and initiatives back home," Patel said.
The Mumbai-based firm also has plans to enter the Gulf air cargo sector through the JV on the line of Patel On-Board Couriers and marine sector in the third phase.
Patel Logistics moves cargo worth Rs 12,000 crore annually with presence in 800 locations. It has recently set up an arm for e-commerce, after partnering Amazon for express delivery.
The Nationwide Group set up in 1976 is also in general contracting business, computer education, and also into food & beverages apart from operating and maintaining all military seaports on west coast of the largest Arabian economy.
The Nationwide Group was founded by Saudi's first businesswomen Abeer Bint Mohammed, who is ranked 11th on the Forbes 'most powerful Arab women' list and a royal family member, while Patel Logistics was founded by Asgar Patel as a one-truck entity way back in 1959 and since then has transformed it into a global leader.