MILAGRES COLLEGE, MANGALURU

Project report on

MAHINDRA LOGISTICS

SUBMITTED TO MILAGRES COLLEGE, MANGALURU

To partial fulfillment of the requirements for the award of

DEGREE OF BACHELOR OF COMMERCE (B.COM)

BY
MASLOOD SUAD

REG NO: 203001533133

SUBMITTED IN THE FULFILLMENT OF THE
REQUIREMENT FOR THE UGC CAREER
ORIENTEDCOURCE ADVANCE DIPLOMA IN
LOGISTICS AND SUPPLY CHAIN
MANAGEMENT OF THE MANGALORE
UNIVERSITY
ACADEMIC YEAR 2022-23
CONTENTS

SL.NO. CHAPTERS PAGE NO.

I INTRODUCTION 1-5

II ABOUT THE INDUSTRY 6-8

III FINANCIAL IMPACT 9-11

IV IMPACT ON EMPLOYABILITY 12-15

V ECONOMICS ASPECTS 16-19

VI DIFFERENT SCHEME/FACILITIES GIVEN 20-22

BY GOVERNMENT

VII FINDINGS AND SUGGESTION 23-24

VIII CONCLUSION 25-27

REFERENCES 28
 CHAPTER-1

INTRODUCTION

About Mahindra logistics company;

Mahindra & Mahindra was incorporated as Muhammad & Mahindra in 1945 by the brothers J. C.
Mahindra and K. C. Mahindra, and Malik Ghulam Muhammad in Ludhiana, Punjab to trade steel.
Following the Partition of India in 1947, Malik Ghulam Muhammad left the company and
emigrated to Pakistan where he became the first finance minister of the new state (and later the
third Governor General in 1951). In 1948, K. C. Mahindra changed the company's name
to Mahindra & Mahindra.

Building on their expertise in the steel industry, the Mahindra brothers began trading steel with
UK suppliers. They won a contract to manufacture Willys Jeeps in India and began producing them
in 1947. By 1956, the company was listed on the Bombay Stock Exchange, and by 1969 the
company became an exporter of utility vehicles and spare parts.[5] Like many Indian companies,
Mahindra responded to the restrictions of the Licence Raj by expanding into other industries.
Mahindra & Mahindra created a tractor division in 1982 and a tech division (now Tech Mahindra)
in 1986. It has continued to diversify its operations through both joint ventures and greenfield
investments.

By 1994, the Group had become so diverse that it undertook a fundamental reorganization,
dividing into six Strategic Business Units: Automotive; Farm Equipment; Infrastructure; Trade
and Financial Services; Information Technology; and Automotive Components (known internally
as Symtec ). The new Managing Director, Anand Mahindra, followed this reorganization with a
new logo in 2000 and the successful launch of the Mahindra Scorpio (a wholly indigenously
designed vehicle) in 2002. Along with an overhaul in production and manufacturing methods,
these changes helped make the company more competitive and since then the Group's reputation
and revenues have risen noticeably. Currently, Mahindra & Mahindra is one of the 20 largest
companies in India. In 2009, Forbes ranked Mahindra among the top 200 most reputable
companies in the world.

In January 2011, the Mahindra Group launched a new corporate brand, Mahindra Rise, to unify
Mahindra's image across industries and geographies. [11] The brand positions Mahindra products
and services as aspirational, supporting customers' ambitions to 'Rise.'

In April 2012, the Mahindra Group expressed interest in purchasing the bankrupt automobile
company Saab, and placed several bids for Saab, though was outbid by Saab's new owner National
Electric Vehicle Sweden.[12]

1
Mahindra logistics is one of the few logistics providers which offers solutions in two distinct
business segments – Supply Chain Management (SCM) and Enterprise Mobility. We offer Supply
Chain solutions to diverse industry verticals such as Automotive, Engineering, Consumer Goods,
Pharmaceuticals, Telecom, Commodities, and E-commerce and also offer integrated employee
transportation solutions to enterprise across IT, ITeS, manufacturing, Banking, Financial Services
and Insurance, and Consulting Businesses.

We have an asset-light business model with a focus on technology and emphasis on customer
centricity. We create customized, technology-enabled logistics solutions that offer flexibility and
scalability.

Leaderships;

Keshub Mahindra, the Chairman Emeritus of Mahindra & Mahindra, is a graduate of Wharton
Business School, University of Pennsylvania, USA. He joined the company in 1947 and became
the chairman in 1963.

During his career he has also been Chairman of Bombay Chamber of Commerce and Industry
(1966–67), President of ASSOCHAM (1969–70), Chairman of the Indian Institute of Management
Ahmedabad (1975–85); Member of the Foundation Board – International Institute for
Management Development (1984–89).

His awards include: Companion – British Institute of Management(1985), Chevalier de la Légion

d'honneur (1987), Business India – Businessman of the Year(1989), Honorary Fellowship of All
India Management Association (1990), Institute of Company Secretaries of India (ICSI) Lifetime
Achievement Award for Excellence in Corporate Governance (2004), Lakshya Business Visionary
Award – NITIE (2006), ICFAI Business School (IBS) Kolkata Lifetime Achievement Award
presented by the Institute of Chartered Financial Analysts of India (ICFAI)(2007)

At the time of the Bhopal Disaster he was managing director of Union Carbide India Ltd.(In 2010
he was charged and indicted for causing death due to negligence and sentenced to 2 years'
imprisonment and Rs 1 Lakh fine. He was granted bail shortly after being sentenced.

Anand Mahindra is Chairman and Managing Director of Mahindra & Mahindra. He graduated
from Harvard University and earned his MBA from Harvard Business School in 1981.[28] He
joined the Mahindra Group in 1981 as an Executive Assistant to the Finance Director of the
Mahindra Ugine Steel Company.

2
Community initiatives;

The Mahindra Group is extensively involved in philanthropy and volunteering. It is considered an

active participant in the Indian Corporate Social Responsibility field and received the Pegasus
Award for CSR in 2007. Mahindra engages in philanthropy primarily through the KC Mahindra
Trust, which serves as the CSR arm of the group (although many subsidiaries have their own CSR
initiatives, notably Tech Mahindra and Mahindra Satyam). Founded in 1953 by K.C Mahindra,
the trust focuses primarily on fostering literacy in India and promoting higher learning through
grants and scholarships. Mahindra operates several vocational schools as well as the Mahindra
United World College.

The KC Mahindra Trust's primary project however is Project Nanhi Kali, which targets the
education of young Indian girls.[20] The foundation currently supports the education of
approximately 153,190 underprivileged girls.[21] Other initiatives include Mahindra Hariyali (a 1
million tree planting campaign)[20] as well as sponsorship of the Lifeline Express, a mobile hospital
train. Mahindra employees also plan and lead their own service projects through Mahindra's
Employee Social Options Plans. In 2009, more than 35,000 employees participated.

The Mahindra Group was responsible for the creation of Mahindra United World College,
a UWC campus located in Pune.
Mahindra supports the Mahindra Excellence in Theatre Awards to recognize Indian theater talent,
the Mahindra Indo-American Film Festival, and the Mahindra Lucknow Festival. In 2011, it held
the first annual Mahindra Blues Festival with guests including Buddy Guy, Johnny Lang, and
Shemekia Copeland at the Mehboob Studios in Mumbai. Mahindra partners with the NBA and
Celtic Football Club to bring grassroots basketball and football to India.

Strategy;

The business strategy of logistics services primarily includes inventory control, storage
management and value-added services.

We manage over 17 million square feet of warehousing space at multiple locations across the
country. These include a mix of built-to-suit, dedicated, and multi-user warehouses. We have
deployed customised Material Handling Equipment (MHE) as well as extensive automation and
are proficient in handling the existing warehouses for clients to optimise their functioning.

Our strategically located stockyards across the country consist of large format multi-brand ones in
key locations, ensuring flexibility and scalability. We use best in class latest proprietary tools &
technologies for improving productivity and increasing efficiency.

3
Company history;

ahindra Logistics Limited (MLL) is a portfolio company of Mahindra Partners the USD 1 billion
private equity division of the USD 20.7 billion Mahindra Group. MLL is an integrated third-party
logistics (3PL) service provider specializing in supply chain management and people transport
solutions. MLL serves over 350 corporate customers across various industries like Automobile
Engineering Consumer Goods and E-commerce. The Company pursues en ' asset-light' business
model providing customised and technology enabled solutions that span across the supply chain
and people transport operations. Mahindra Logistics Limited was incorporated as a public limited
company on 24th August 2007.

The Company was granted the certificate for commencement of business on 15th October 2007
by the Registrar of Companies.The Promoter Mahindra & Mahindra Limited through its logistics
division Mahindra Logistics - undertook the business of providing logistics solutions warehousing
freight forwarding and supply chain services (the 'Logistics Business'). Pursuant to a business
transfer agreement dated September 11 2008 between the promoter and Mahindra Logistics
Limited the entire Logistics Business was transferred to Mahindra Logistics Limited.

Subsequently the Logistics Business has since then been undertaken by Mahindra Logistics
Limited and its Subsidiaries.During the financial year ended 31 March 2011 the company achieved
Rs 1000 crore of revenue from operations. In 2014 Kedaara Capital Alternative Investment Fund
- Kedaara Capital AIF 1 and Normandy Holdings Limited a wholly owned subsidiary of Kedaara
Capital I made investment in the company.

During the year under review Mahindra Logistics Limited entered e-commerce sector by starting
operations for one of India's leading ecommerce companies.Mahindra Logistics Limited entered
into a joint venture with IVC Logistics Limited pursuant to shareholders' agreement dated August
28 2014 to form 2X2 Logistics. 2X2 Logistics offers pan-India transportation services for finished
automobiles. In 2015 the company appointed a reputed strategic consultancy firm to help with a
business transformation exercise.

Mahindra Logistics Limited acquired shares aggregating to 60% of the paid-up share capital of
Lords Freight (India) Private Limited for Rs 8 crore pursuant to a share subscription and share
purchase agreement dated July 14 2014. Lords specializes in international freight forwarding.In
2016 the company entered into business contract with one of the largest steel producers in India.
During the financial year ended 31 March 2017 the company achieved Rs 2500 crore of revenue
from operations.The company came out with an initial public offer (IPO) during the period from
31 October 2017 to 2 November 2017.

4
 The IPO comprised of offer for sale of a total of 1.93 crore shares by selling shareholders.
Promoter Mahindra & Mahindra offloaded 96.66 lakh shares through the IPO. Two institutional
investors viz. Normandy Holdings Limited and Kedaara Capital Alternative Investment Fund -
Kedaara Capital AIF 1 offloaded 92.71 lakh shares and 3.95 lakh shares respectively. There was
no fresh issue of shares by the company. The stock debuted at Rs 432 on BSE on 10 November
2017 a premium of 0.69% compared to IPO price of Rs 429 per share.

The Board of Directors of Mahindra Logistics at its Meeting held on 2 August 2018 approved
additional investment in Lords Freight (India) Private Limited a Subsidiary Company (Lords) by
way of purchase of 2.05 lakh equity shares of Lords (representing 8.69% of equity share capital of
Lords) from the existing shareholders of Lords. Consequently Share Purchase Agreement and
other related documents have been executed between the company and respective selling
Shareholders of Lords. On completion of the said purchase the company's shareholding in Lords
would increase from 60% to 68.69%.On 30 August 2018 Mahindra Logistics (MLL) announced
the acquisition of a strategic stake in Transtech Logistics also known as ShipX. ShipX is a SAAS
(Software as a Service) based Transport Management Solution (TMS) platform that serves the
supply chain automation needs for 3PLs shippers and transporters.

ShipX has been working with MLL for over 3 years and has been enabling transportation
solutions. This acquisition will help MLL to increase end-to-end digitization and bring in
operational efficiencies.The Board of Directors of the company at its meeting held on 29 August
2018 approved further investment in Lords Freight (India) Pvt. Ltd. by way of an additional
purchase of 2.39 lakh equity shares of Lords (representing 10.12% of equity share capital of Lords)
from the existing shareholders of Lords.The Board of Directors of Mahindra Logistics Limited at
its meeting held on 1 November 2018 approved further investment in Lords Freight (India) Pvt.
Ltd. Subsidiary Company (Lords) by way of purchase of Rs 1.19 lakh equity shares of Lords
(representing 5.063% of equity share capital of Lords) from an existing shareholder of Lords.

On completion of the said purchase (along with the purchase approved by the Board of the
Company at its meeting held on 29 August 2018) the company's shareholding in Lords would
increase to 83.874%.During the year 2018 in view of the Initial Public Offer of the Company all
partly paid equity shares of the Company i.e. 40774 equity shares which were partly paid up to the
extent of Rs 2/- per share and 1581273 equity shares which were partly paid up to the extent of Re
1/- per share were made fully paid up pursuant to a call of Rs 8/- per share and Rs 9/- per share
respectively.

5
 CHAPTER-2

ABOUT THE INDUSTRY

Automotive;

Industry expertise, extensive partner network and state of the art technology, Mahindra Logistics
creates value across different sub-sectors of Auto industry. We provide efficiencies derived from
bespoke solutions design, customised technology and specialised skill building. We optimise cost,
quality and speed for some of the largest OEMs in Auto sector.

Our resources and expertise pan across sub-segments of Auto such as 2-wheeler, 4-wheeler, Heavy
Vehicles, Tractor & farm, Auto Components, Auto Aftermarket & Spares etc. with footprints all
over India.

 Milk run at supplier

 Consolidation and distribution through cross docks
 Freight forwarding
 3rd party procurement service vendor managed inventory
 Procurement planning

Engineering;

We ensure our customers consistently meet and exceed expectations at every touchpoint through
benchmarking, developing quality and compliant strategies across the entire value chain. We help
our customers redefine their solution vision so that the impact is much greater than the
expectations.

Our resources and expertise pan across segments like capital goods, heavy machinery/equipment,
light engineering products such as castings, forgings, and fasteners, semiconductor, power
generation & transmission equipment, ferrous & non-ferrous metal products & parts etc. with
footprints all over India.

We help manufacturing & engineering industries to significantly boost both productivity and
effectiveness, through various offerings that encompass everything from order management,
logistics solutions, production support and lean warehousing.

6
Consumer products;

We offer integrated solutions from design to delivery, manage warehousing and distribution
centers, secondary and last mile transportation while optimizing distribution systems and networks
for FMCG, Consumer Durables and large retailers.

We provide a whole suite of multi-channel and direct-to-market offerings using best-in-class

technology. Our solutions are designed to serve your need.

 Dedicated vehicles on circuits with contracted back haul via a tripartite agreement to realize
benefits of 5-15% cost savings for each party
 Greater availability of vehicle at plant
 Technological solutions to provide complete transit visibility
 Lower transit time
 Minimum damage/pilferage

Pharmaceutical;

We provide differentiated and customised logistics solutions at every step of the supply
chain to pharmaceutical and life sciences companies.

Our Solutions for pharma industry range from the delivery of raw materials into the manufacturing
process to delivery of finished drugs and medical equipment.

From freight forwarding, customs clearance, transportation, warehousing to responsible

destruction of expired products and refurbishment, we provide integrated solutions to meet the
logistics needs of the industry

Telecommunication;

We offer a broad base of logistics solutions for network operators of large telecom firms
in India.

From services such as storage, distributions and returns, to highly specialised and technical
offerings such as maintenance, network expansion and critical parts delivery, we offer end-to-end
logistics services to telecom Industry.

Our pan-India reaches, and unique sector experience makes us the preferred supply chain partner
in the telecom industry.

7
Ecommerce;

We offer complete end to end logistics solutions with focus on speed, safety and reliable
nation-wide delivery services to e-commerce industry
.
Understanding scalability, flexibility, focus on customer experience and leveraging the right
technology has made us one of the largest partners of the e-commerce industry. Be it storage and
processing, automation and robotics, transportation and last-mile deliveries, we provide integrated
solutions with the highest levels of performance and reach, creating an unmatched blend of
capabilities and offerings for the industry.

Our solutions come with the advantage of agility and scalability and this gives us the capacity to
handle high volumes of e-commerce transactions during peak season.

 Strong Primary/Secondary and Tertiary Distribution Network

 Dedicated Control Tower
 Sort Centers/ Hubs across Various Cities

 Alternate Distribution Model

 365 days Operations
 COD Management

Commodities;

We offer customized transportation services as per the requirements and logistics planning
for wide variety of Industries. We apply a blend of network redesign, the best in telematics
and transportation management for cost optimisation and maximising efficiency.

We also provide consulting services uniquely designed for each of our customer coupled with
control tower operations for various industries.

Our experiences over the years have helped us understand the businesses of our clients effectively.
We are equipped to deliver innovative and unique transportation and warehousing solutions.

And by understanding the specific requirement, we design a tailor-made solution, combining the
required logistics components. The solution can range from a simple freight forwarding service to
a highly sophisticated and integrated end-to-end logistics solution.

8
 CHAPTER-3

FINANCIAL IMPACT

Mahindra Logistics' revenue grew 113 per cent to Rs 873 crore in Q1 of FY22 against Rs 410 crore
in the same quarter of the previous fiscal.

Profit before tax was Rs 12 crore in Q1 FY22 compared to Rs 22 crore loss in Q1 of FY21. While
profit after tax grew 155 per cent to Rs 9 crore against Rs 17 crore loss in April-June quarter of
last year.

"Growth in supply chain segment during the quarter at 114% YoY, contributed by increased
business volumes across all end markets," a company statement said. It said revenue from
warehousing services and solutions grew 30 per cent over the same period last year.

At the end of the April-June quarter, Mahindra Logistics' earnings before interest, taxes, and
amortisation (EBITA) stood Rs 47 crore compared to Rs 1 crore in Q1 of last year.

As of June 30, 2021, the firm's earnings per share (diluted) stood at Rs 1.26 as compared to negative
Rs 2.21 last year. The results show the firm braced the second wave of the COVID-19 pandemic
much better than the first.

Rampraveen Swaminathan, Managing Director and CEO of Mahindra Logistics, said, "Our strong
focus on customer retention, new account acquisition and cost reduction helped us offset these
challenges".

Swaminathan said the implementation of the firm's strategic initiatives continued through the
quarter and Mahindra Logistics anticipates a strong uptick in the economic activity in the rest of
the year.

9
Mahindra logistics Ltd on Tuesday reported a consolidated net profit of Rs 9.35 crore for the
quarter ended June 30, 2021.

The company had posted a consolidated net loss after taxes, non-controlling interests and share of
loss of joint venture of Rs 15.81 crore in the year-ago period, Mahindra Logistics Ltd (MLL) said
in a filing to BSE.

The consolidated total income of the company during April-June quarter increased to Rs 875.28
crore over Rs 413.27 crore in the year-ago period.

"We delivered a strong performance despite the challenging external environment due to the rapid
spread of Wave 2 of the Covid 19 pandemic. The regional lockdowns, high commodity costs and
fuel prices impacted demand across the end markets.

"Our strong focus on customer retention, new account acquisition and cost reduction helped us
offset these challenges," Rampraveen Swaminathan, managing director and CEO of Mahindra
Logistics, said.

Implementation of strategic initiatives continued through the quarter and the firm anticipates a
strong uptick in economic activity in rest of the year, he added.

"We have launched several initiatives to improve our preparedness for the future with employee
assistance programs and vaccination campaigns. As part of the relief program, the company
supported the 'Mahindra Oxygen on Wheels'," Swaminathan said.

The company said the first quarter of FY'21 had witnessed extreme disruptions due to lockdowns
imposed to contain the spread of COVID-19 and hence to that extent the previous year's numbers
factor that impact.

Mahindra Logistics is an integrated third-party logistics (3PL) service provider specialising in

supply chain management and enterprise mobility (people transport solutions).

10
 reported 112.78% growth in total sales revenues for the Jun-21 quarter on consolidated basis
at Rs873.36cr. On a sequential basis, revenues were down -10.33% compared to Rs974cr
revenues in Mar-21 quarter as COVID 2.0 impacted the logistics demand as well as supply
chains.

There was a sharp growth in both its key verticals. The supply chain management or SCM
vertical saw yoy growth at 114% growth at Rs840cr while enterprise mobility saw 87% growth
at Rs33.3cr in the Jun-21 quarter.

Net profit for the Jun-21 quarter turned around to Rs9.35cr on a yoy basis compared to net loss
of Rs-15.81cr in the Jun-20 quarter. Despite a sharp spike in operating expenses, the higher top
line helped better absorb fixed cost commitments.

On sequential basis, net profits were lower by -25.68% due to revenue and supply chain impact
of COVID 2.0. On the margins front, the net margins for Jun-21 quarter stood at 1.07% against
-3.85% in Jun-20 quarter and 1.29% in the sequential Mar-21 quarter.

11
 CHAPTER-4

IMPACT ON EMPLOYABILITY

India’s logistics industry is witnessing an immense transformation. Digital interventions, new

start-ups, implementation of new policies and evolving business models are some of the aspects
which are impacting the sector. In an era of technological commotions, 'grow or go' is the new
norm for the industry.

In addition to the general challenges that logistics industry faces, one of the biggest ones is to
hire and make logistics a preferred profession for the millennial population. But we are seeing
things changing.

There is an increased focus on tech-driven applications in the industry. It has given rise to roles
like analytics, control tower, digital transformation, and digital marketing.

We remain highly confident and enthusiastic that hiring across the logistics and allied
transportation sectors will rise in the months ahead. According to a recent report from
Teamlease, the conferring of infrastructure status, the introduction of GST and the subsequent
rise in investment could lead to the creation of three million jobs in logistics across the country
by 2022.

Gender diversity remains a challenge and specifically in the logistics sector. To boost the same
Mahindra Logistics has taken special initiative called – Udaan – a second careers (comeback)
program for women. The initiative stems from the Mahindra Logistics’ policy of Diversity and
Inclusion.

It is aimed at providing an opportunity and platform through which women professionals can re-
join the corporate world after a career break. This entails fulltime employment opportunities for

12
women who have opted for a break during the course of their career. This policy applies to all
levels, functions, and divisions.

Logistics sector is using new recruitment methods like recruitment via social platforms, which
has shown extremely good results.

Hiring through LinkedIn has increased significantly over the years. Additionally, we have
recently invested in the implementation of the recruitment SAP module of Success Factor for
referral and faster recruitment process.

The sector is also pursuing millennials through a robust campus recruitment program. We run a
white paper contest ‘Logiquest’ that aims at providing a platform to youngsters to come up with
an innovative solution for sector issues.

The rapid growth and increase in the number of entries for Logiquest from across coveted
institutes in the country reflect the exciting times in the logistics sector for the millennials.

In the age of automation and machine learning, the logistics industry is still at a formative stage in
India and is not adequately penetrated with digital tech. As a result, there are not too many
professionals who have a background in digital tech and the industry must catch up to it.

Logistics essentially involves dealing with physical goods. Therefore, many of employees would
need to be present at work locations e.g. handling in-plant logistics. Technology in these cases
makes the employees work more effectively, especially in the use of hand-held devices.

On the other hand, the office workspace which works with on-ground operations will have a
different impact. We observed a very positive change in the workplace after the introduction of
some latest technologies.

In the future, there is a bright side for people working from remote locations. And there is also a
possibility of an increase in working from home, which in turn will bring down investment in
office space.

13
Across the logistics industry, it is very important to have certain skill sets. They are:

1. Analytical
2. Team Management
3. Strong orientation towards technology
4. Process orientation
5. Managing a relationship with the customer

The intensity of these skills varies by function and levels. As mentioned earlier, given that
logistics sector is changing and is becoming more technology driven, it is also important that the
workforce continuously makes efforts towards enhancing their skill and knowledge to work and
adapt to latest processes.

The impetus that the government is providing to the Indian logistics sector over the last few
quarters has been unprecedented. The sector has received major boost including GST
implementation, infrastructure status for the industry, the appointment of a logistics secretary,
increase in axle load in heavy vehicles, the launch of major infrastructural projects like
Bharatmala, Sagarmala,

Udan, amongst others. There have been some procedural changes too - The implementation of
the e-way bill and the initiative to set up a National Logistics Portal by the Department of
Commerce, which will make the processes more efficient. All these initiatives will definitely
drive the industry to create more jobs in the very near future.

By the end of 2020, Amazon employed over one million employees worldwide. In 2020 alone,
the company added 400,000 jobs. That includes both full-time and part-time employees.

Although one million seems like a large number, it is actually low by retail industry standards
because Amazon does not have a significant storefront presence. A traditional store requires far
more employees. For example, Walmart (WMT) employs approximately 2.2 million people
worldwide.

14
Chitrali Ghatak in conversation with Mr. Edwin Lobo, Senior General Manager - Human
Resources, Mahindra Logistics.In the midst of doctors, medical staff, policemen etc, who often go
unnoticed among the frontline warriors are the employees in the logistics sector.

Be it the delivery of oxygen cylinders, medical equipment or medicines, the staff in the logistics
sector are currently fighting a battle with time and with the pandemic. Hence the demand for these
frontline workers in logistics is witnessing a surge.

Logistics industry leaders also agreed that hiring has been on an upward trajectory in the sector
since it comprises frontline workers whose demand has peaked during the Covid crisis. They said
that many roles in the sector have become location-agnostic owing to the ongoing pandemic
situation leading to the availability of a larger talent pool to tap.

Discussing the hiring trends in the logistics sector, Edwin Lobo, Senior General Manager - Human
Resources, Mahindra Logistics, said, “Hiring has seen momentum in roles pertaining to
warehousing operations, transportation, automation, vendor management and various roles
specific to managing e-commerce operations.”

“At Mahindra Logistics, we have been focusing on diversity and inclusion-based hiring from
diverse talent pools like persons with disabilities (speech and hearing impaired and partial
locomotor), the LGBTQ community, second careers for women and armed forces veterans under
the VEER (Veteran Employment, Engagement and Retention) Programme,”

Lobo said.
While agreeing that hiring trends vary across specific seasons in the logistics sector, Rajendra
Ghag, CHRO, Blue Dart, said, “However, a hiring trend that is taking over is the ability to assess
a candidate’s capability as they work remotely from their homes. Employers would want to hire
individuals who would easily be able to adapt to the need of the hour which is digitization and
technology, to help boost employee productivity.”

15
 CHAPTER-5

ECONOMIC ASPECTS

COVID-19 RELIEF;

Discussing the hiring trends in the logistics sector, Edwin Lobo, Senior General Manager - Human
Resources, Mahindra Logistics, said, “Hiring has seen momentum in roles pertaining to
warehousing operations, transportation, automation, vendor management and various roles
specific to managing e-commerce operations.”

“At Mahindra Logistics, we have been focusing on diversity and inclusion-based hiring from
diverse talent pools like persons with disabilities (speech and hearing impaired and partial
locomotor), the LGBTQ community, second careers for women and armed forces veterans under
the VEER (Veteran Employment, Engagement and Retention) Programme,”

Lobo said.
While agreeing that hiring trends vary across specific seasons in the logistics sector, Rajendra
Ghag, CHRO, Blue Dart, said, “However, a hiring trend that is taking over is the ability to assess
a candidate’s capability as they work remotely from their homes. Employers would want to hire
individuals who would easily be able to adapt to the need of the hour which is digitization and
technology, to help boost employee productivity.”

Diversity and inclusion;

Through our five-year Diversity and Inclusion (D&I) roadmap, we have provided career
opportunities to women officers from the armed forces and strengthened our Second Career
Programme for women called Udaan. We inducted employees for an e-learning programme on the
Prevention of Sexual Harassment (POSH) Act.

We firmly believe in work-life balance and implemented the Birth & Beyond policy to enable
women employees to balance their responsibilities at home and work. The policy focused on
creating a conducive work environment for women employees through pre-maternity, maternity
and post maternity (early motherhood) periods, by giving them flexibility in work schedules and
workloads

. Further, to identify opportunities based on feedback from women employees, we launched the
She Survey. We analysed the feedback and made several improvements to our polices and
processes.

16
Learning and development;

Being an asset light company, we truly believe that our biggest asset is our people. Our success
and growth are a direct result of their development. Our employees represent an integral part of
the process of driving change in the organisation.

We therefore endeavour to build and uphold their trust through a wide range of platforms and
initiatives.

Based on the premise of ‘Happy employees create happy customers’, Sandhaan is a programme
designed for account delivery managers who manage teams at locations. It is a leadership
development programme conducted in three phases.

The programme builds the leadership and customer servicing capabilities of these managers. They
are then provided a platform to share their learnings with their colleagues and then drive business
impact projects by creating ‘Moments of Truth’ for customers – called ‘Sandhaan Moments of
Truth’ – 60 days after the completion of the programme.

The presentations are evaluated by a jury and a few best ones are showcased to the senior
leadership team. The first phase focused on leadership skills and the second on customer service
excellence.

The third phase was launched this year by developing an in-house case study after understanding
the development areas and opportunities that existed to strengthen customer experience and
managerial skills.

The Achieving Excellence (ACE) programme trains employees on topics such as operations
management, value stream mapping, financial management and people management. After the
training, the employees are given transformation projects to implement their learnings and create
business impact

17
Education support;

Being an asset light company, we truly believe that our biggest asset is our people. Our
success and growth are a direct result of their development. Our employees represent an
integral part of the process of driving change in the organisation. We therefore endeavour
to build and uphold their trust through a wide range of platforms and initiatives.

In a company that is rapidly growing, we invest in building the capability of our people &
consistently strive to create future leaders. We have a strong talent management framework that
focuses on the progress of our employees at different levels.

Housing and food insecurity;

Logistics is an invisible thread that binds every element of a business. And we aim at bringing
different stakeholders together to form a seamless flow of activity and thus make life easy. With
every parcel we move, and in each trip we make, each of us strives to make a difference.

We accelerate the wheel of economy. And we transform the lives we touch. Be it our business
partners, drivers, their families or communities at large, we spread smiles with every mile. This in
turn brings prosperity for everyone.

WE SET BENCHMARKS ONLY TO BREAK THEM EVERY TIME. NOW THAT’S A

SIGN OF TRUE LEADERSHIP.

We continuously set new benchmarks in our industry. We lead the way by collaborating with our
customers, competitors and business partner.

WE ARE IN THE BUSINESS OF HELPING PEOPLE RISE IN LIFE. LOGISTICS IS

JUST HOW WE DO IT.

Logistics is an invisible thread that binds everyone. This thread helps us in transforming lives
across geographies. We enhance our reach through our valued partners and together we work
towards enriching and empowering lives. In every parcel we move and, in every trip, we make,
each of us strives to make a difference.

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Company fund for employees;

To aid drivers impacted by lockdown and provide them instant relief, Mahindra Logistics on
Monday launched an initiative under which it will transfer Rs 3,000 to each driver's bank account.

The initiative named HOPE (Helping Our People during Emergencies), aims to support drivers
financially to aid the battle against the COVID-19 lockdown.

The nationwide lockdown has impacted a large number of drivers, whether they are drivers
ferrying goods between states, or those who drive taxis and for ride-sharing companies. These
drivers are mostly stranded and are struggling to make ends meet.

The company has partnered with Samhita Social Ventures - a social enterprise and SuperMoney -
a financial lending tech platform to reach out to the beneficiaries within ecosystem.

This move will create an ecosystem to channelise CSR funds of other companies to provide
economic support and recovery to workers, the company said in a statement.

"As a part of the initiative, Mahindra Logistics will be providing immediate relief by transferring
Rs 3,000 to each driver's bank account, to buy essential commodities. This will be followed by
other support provided to these drivers like health insurance cover, leveraging government
schemes and loan guaranteeing model," the statement said.

In addition to this, Mahindra Logistic would strengthen healthcare professionals' abilities to

respond and provide support to affected families using digital channels, it added.

"With over 30 per cent of commercial vehicles stranded on roads across the country, drivers need
urgent support. Truck drivers and their families are in immediate need of cash for food and other
basic facilities," Mahindra Logistics MD & CEO Rampraveen Swaminathan said.

Swaminathan further said "we have launched several programs to support the driver community
along with our business partners. Through this initiative, of short term financial relief and hope we
aim to help these drivers and their families until the situation in the country is restored,"
Swaminathan said.

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 CHAPTER-6

DIFFERENT SCHEME /FACILITIES GIVEN BY GOVERNMENT

Mahindra Logistics Limited (MLL) is one of the largest Third Party Logistics (3PL) solutions
providers in the Indian logistics industry
MLL has an asset-light model and operates in two distinct business segments - Supply Chain
Management (SCM) business accounting for ~89% of overall revenues and Corporate People
Transport Solutions (PTS) business accounting for balance 11%.
.

 Under the SCM segment, it offers customized end-to-end logistics solutions and
services (transportation & distribution, warehousing, in-factory logistics and value-
added services). It has a large network of over 1,000 business partners that provide
the operating assets and MLL operates through a pan-India network of 24 city
offices and over 350 client and operating locations.

Under the PTS segment, the company offers people transportation solutions and
services to over 100 domestic and multinational companies operating in various
industries. The fleet of vehicles is provided by a network of over 500 business
partners and MLL operates in 12 cities and has over 120 clients across India.

The company is a 3PL specialist is expected to benefit post-GST as the focus of
Manufacturer’s will shift towards gaining logistic efficiencies and employ services
of players like MLL.

Majority of the 3PL service providers in India follow an asset-heavy model while
MLL has an asset-light business model which enables it to cater to client’s demands
in an efficient manner.

Owing to the above-mentioned asset-light nature of the business, the company was
able to post revenue CAGR of ~14.9% over FY13-17. This is likely to sustain in
coming years owing to expanding market for 3PL companies. Its Asset light model
is expected to facilitate this growth.

Employees want more balance in their working patterns, with a hybrid work model and
flexibility being key. Even as the office retains its place in a working set-up being reshaped in
a post-COVID world, aspirations are increasing from the modern workplace while
homeworking is still preferred, according to JLL’s latest Workers Preference Barometer for

20
India.

91% of the respondents favour flexible working hours. The priorities of the workforce have
undergone a shift with an empathetic employer and work-life balance being their key asks,

While the workforce shifted seamlessly to Work From Home (WFH) due to the pandemic for
over a year now, the prolonged and enforced homeworking has brought to the fore the need to
“connect’ with colleagues, while more traditional levers such as ‘purpose in the job’ and ‘vithe
survey.

The social interactions that an office space provides are being sorely missed, to the extent that
41% of the workforce is craving ‘real’ human interactions with colleagues while 31% of them
miss a change of scenery. Amongst the most missed aspects of the weekly routine, coffee and
socializing in social activities, personal time for relaxing and spending time with family stand
out.

India prefers homeworking, but balance in working patterns has emerged as a key theme. 79%
of the workforce wants to work remotely from home at least once in a week, and this number
goes up to 89% when a third-party place of work is added. An ideal working week, post Covid,
seems to be one where employees spend three days working remotely and two days in office,
with office remaining a key element to the aspirational working regime. According to the
survey,

21% of the workforce does not want to work from home in the future, as opposed to 16% in
October last year. However, flexibility is becoming more attractive. 91% of the workforce want
to choose their schedules and working hours as per the latest results, up from 69% as per results.

The hybrid work environment retains its appeal, but more people want to return to the office at
least once a week, says the survey findings. Almost 75% of the surveyed employees want to
work from office at least once a week compared to 52% in October 2020. Significantly, still
79% employees today want to work from home atleast once a week compared to 84% in October
2020, indicating that homeworking as part of flexible work patterns is a key desire.

21
The survey also brings to the fore renewed aspirations from the workplace of the future. This
will act as a barometer for the employers and occupiers to understand changing needs from the
workplace and workplace strategies, which will provide a more balanced work-life pattern to
employees as they aspire to return to purpose-led offices in the future.

“The offices of the future will have to be more human-centric, putting health and well-being at
the forefront. Almost 60% of those surveyed believe that a workplace that promotes a healthy
lifestyle and safety is a key priority. There is a greater understanding and need for work-life
balance amongst employees now. We are also seeing the need for human connection gaining
prominence amongst employees as they crave social connections and emotional engagements
in the workplace. Companies will need to be mindful of the requirement for more flexible work
patterns even as they are putting greater focus on the well-being of employees and extending
support to help employees navigate an array of health challenges,” said Radha Dhir, CEO JLL.

JLL’s research shows that more than half of respondents feel overwhelmed by a huge mental
load and are worried about their job security, while majority of young parents have expressed
that they have many personal and professional responsibilities to cope with which is intensify
overwhelmed.

According to the survey, 91% of employees who are highly satisfied with their office
environment strongly miss their offices. However, office satisfaction rate has also dropped as
employees now have renewed expectations of their office environment. While there is a dip in
productivity levels at home, a significant number still feel more productive at home. But more
employees are looking forward to “purpose-led offices” of the future.

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 CHAPTER-7

FINDINGS AND SUGGESTION

Mahindra Logistics Limited is end-to-end logistics solution and service provider. Mahindra
Logistics is part of Mahindra Group (M&M), one of India's leading corporate groups with
operations across several industries and countries. Before 2008 the logistics business of M&M was
operated as a division of M&M serving the transportationand distribution, warehousing and in-
factory logistics requirements of M&M.

The logistics solution of the company includes transportation and distribution, warehousing, in-
factory logistics and value added services to its clients.

Company also provide people transportation solutions and services across India to over 100
domestic and multinational companies operating in the IT, ITeS, business process outsourcing,
financial services, consulting and manufacturing industries in 12 cities and over 120 clients.

Mahindra Logistics Limited, one of India’s largest (on the basis of annual revenue) 3PL solutions
providers in the Indian logistics industry which was estimated at ₹6.40 trillion in Fiscal 2017,
according to the CRISIL Report.

It believes that its competive advantage is its “asset‐light” business model pursuant to which
assets necessary for its operations such as vehicles and warehouses are owned or provided by a
large network of business partners. Its technology enabled, “asset‐light” business model allows for
scalability of services as well as the flexibility to develop and offer customized logistics solutions
across a diverse set of industries. It operates in two distinct business segments, supply chain
management (“SCM”) and corporate people transport solutions (“PTS”).

SCM business: The Company offers customized and end‐to‐end logistics solutions and services
including transportation and distribution, warehousing, in‐factory logistics and value added
services to its clients.

PTS business: The Company provides technology‐enabled people transportation solutions and
services across India to over 100 domestic and multinational companies operating in the IT, ITeS,
business process outsourcing, financial services, consulting and manufacturing industries.

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We believe that information technology will lead and revolutionize logistics.
With this belief we integrate technology as a part of holistic supply chain and solutions. Through
advanced technology, we ensure high visibility, efficiency, and responsiveness leading to supply
chain management.

Technology forms the backbone of all our offerings. Extensive use of technology ensures that all
the operations work smoothly and efficiently. Most of the technologies deployed by MLL have
been extensively worked upon to suit our and our customers’ unique requirements and are
successfully tried every day in every operation that we do.

Mahindra Logistics Ltd is a domestic third-party logistics service provider. It operates in two
business segments including Supply Chain Management Business, and Enterprise Mobility
Service. The Supply chain management offers customized and end-to-end goods logistics solutions
and services including transportation and distribution, warehousing, in-factory logistics and value-
added services.

Enterprise Mobility Service provides technology-enabled and customized solutions for the daily
pick-up and drops requirements of enterprises. The company derives the majority of the revenue
from Supply chain management segment.

Mahindra Logistics Limited provides third party logistic services in India and internationally. It
operates through two segments, Supply Chain Management (SCM) and Enterprise Mobility
Services (EMS). The SCM segment offers customized and end-to-end logistics solutions and
services, including transportation and distribution, warehousing, in-factory logistics, and value-
added services.

This segment serves domestic and multinational companies operating in various industry verticals,
including automotive, engineering, telecom, consumer goods, pharmaceuticals, e-commerce, bulk,
banking, IT, financial services, insurance, and consulting businesses. The EMS segment provides
technology-enabled people transportation solutions and services for domestic and multinational
companies operating in the information technology, information technology-enabled service,
business process outsourcing, financial services, consulting, and manufacturing industries.

It also provides freight forwarding services for exports and imports, customs brokerage
operations, project cargo services, and charters. The company was founded in 2000 and is based
in Mumbai, India. Mahindra Logistics Limited is a subsidiary of Mahindra & Mahindra Limited.

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 CHAPTER-8

CONCLUSION

As an industry today, logistics contributes more to the Indian GDP than Agriculture. As per the
Ministry of Statistics and Programme Implementation, share of Agriculture in 2017-18 stands at
12.2 percent, whereas Logistics stands at 14 percent. This is only the beginning. The economic
survey for 2017-18 revealed that the logistics industry will grow from present worth of $160
billion to $215 billion by 2020.

This massive growth will be aided by favourable governmental policies, improved infrastructure,
enhanced digitization by logistics players, and last but not the least – by organized Third Party
Logistics (3PL) players in the country.

The Indian logistics sector is currently at a transformational junction due to policy changes, and
huge effort towards development of transportation infrastructure. The earlier introduction of
policies related to GST, e-way bill, Logistics Performance Index for States, nodal department for
logistics and others will alter the way this industry functions. In addition, the recent policy changes
pertaining to ecommerce business rules will affect the way logistical operations are conducted.

Infrastructural Challenges:

India moves more than 80 percent of its goods by road. However, the conditions of these roads
need improvement. One of the major reasons for higher logistics spend in India is inadequate
transportation infrastructure that leads to frequent delays, disruptions and affects delivery
schedules.

The entire nation is currently in a huge infrastructure development mode, especially pertaining to
transportation infrastructure such as highways, railway lines, airports and ports. These massive
transportation infrastructure works by the Government, such as Golden Quadrilateral project,
Dedicated Freight Corridor, Inland water movement project and others are currently underway to
be a boon for the logistics industry.

Technological Adoptions:

Logistics today is all about digitization and automation. In recent years, the role of logistics has
increased multiple times. Earlier, the role of logistics involved merely transporting goods from one
location to another. However, today with the fastpaced e-commerce landscape, the expectations of
customers have also changed drastically. The expectations range from the need to track the
whereabouts of one’s consignment, to the time that has been delivered.

25
Disruptive technologies have made hardware more accessible to drive Supply Chain
improvements. Some of these technological interventions have the potential to completely reshape
the Indian Logistics industry. Today’s top-notch technologies include Warehouse Robotics &
Automated Guided Vehicles, IoTs on Trucks, Cloud solutions and Last Mile connectivity solutions
using sophisticated optimization algorithms along with big data interventions.

It is believed that there will be further growth in technological adoption since logistics players will
look at new ways to overcome challenges and align themselves to change. The industry will
witness enhanced automation across the logistics and supply chain industry, especially in
warehousing. This technological adoption will transform the way this industry currently functions.

In near future, this rapid evolution in technology will enable driverless transportation models
wherein advanced computing and technology shall drive trucks and trains without needing any
human intervention. Even warehouses are moving towards reducing human intervention through
introduction of robotics and mechanized unloading and movement of cargo. These technologically
aided solutions don’t merely reduce operational costs but also enhance efficiency across the entire
network.

Role of 3PL companies:

The massive demand for such services has given rise to thirdparty logistics (3PL) providers. Large
companies aren’t affected by logical and supply chain issues since they also possess integrated
supply chains and allied facilities. But the vast majority of businesses in India are small and
medium-sized enterprises, with limited ability to manage such situations. Hence, the role of 3PL
providers remains important in today’s changing business environment.

The usage of 3PL services provide companies with bottom-line cost savings, enhanced flexibility
and quicker responsiveness and higher efficiency. However, the most important benefit achieved
by companies is that they can now focus on their core activities of manufacturing and operations
while outsourcing allied activities such as those related to supply chain functions.

It would be pertinent to point out that Logistics is another sector that has seen a steady growth in
its contribution to employment in the country. The increasing number of millennials in India,
whose education is not sufficient for white-collared jobs, are being employed successfully in
dignified jobs across e-commerce, warehousing, and food-delivery sectors. And this is just the
beginning. With these sectors growing at a massive pace, the future of young India looks bright.

The Road ahead;

26
In conclusion, the government and industry are taking initiatives to improve the logistics sector
through various means. These efforts have led to India’s position jumping by 19 positions in
International Logistics Performance Index (LPI) - from 54th rank in 2014 to 35th position in
2016 out of 160 countries.

In spite of these efforts, the World Bank’s Doing Business (DB) report 2018 revealed that it takes
more than six days to export and 13 plus days to import goods to and from India, across
transportation modes.This is much higher than the average time taken in the developed world.

Hence, there is need for much more effort - both regulatory and industry led. It is hoped that 2019
will witness greater movement in the logistics industry that shall support India’s growing economic
aspirations and propel it onto the world’s commercial center stage.

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 REFERENCES

https://mahindralogistics.com/

https://mahindralogistics.com/about-us/

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