Mahindra War Room 2014

Logistics Business Caselet

MAHINDRA PARTNERS SECTOR

LOGISTICS BUSINESS

Mahindra Partners is the internal incubator of new businesses for the Mahindra Group,
supporting a portfolio of existing ventures across Retail, Logistics, Boats, Energy and
Media, while constantly exploring new ventures. This caselet pertains to the Logistics
Business.
BUSINESS BACKGROUND
Mahindra Logistics was founded in 2000 to service the complex transportation needs of
Mahindras Automotive Sector. Within a short span of time, Mahindra Logistics has
evolved into a premier logistics service provider in Supply Chain Management and
People Logistics, by expanding capacity to service external clients. Mahindra Logistics
offers these services to an extensive cross-section of major corporate clients today.

LIVE CHALLENGE: STRATEGY TO GO INTERNATIONAL

The logistics industry in India, especially the 3rd Party Logistics Segment, has been
growing robustly. Mahindra Logistics is among the five largest 3PL service providers in
India, with leadership position in outbound automotive logistics, and envisions to be
Indias leading, most preferred integrated logistics service provider.
Recently, Mahindra Logistics articulated a big, hairy, audacious goal (BHAG) to be
among the Top 10 Most Admired Logistics Companies Globally, by the year 2030.
Mahindra Logistics aspires to now go beyond the borders of India, and become an
International Logistics Service Provider. This goal has emerged from 3 imperatives:
The Mahindra Group itself going international and Mahindra Logistics wishes to
keep up with the Mahindra Groups aspiration.
Mahindra Logistics will increasingly focus on international freight forwarding by
air and ocean for both imports and exports, and aspires for exponential growth
through this segment.
Mahindra Logistics already serves large Indian and multinational customers,
whose needs over time will evolve to a single large integrated logistics service
provider.

Broadvision Perspectives Client Confidential

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Mahindra War Room 2014

Logistics Business Caselet

All of the above, coupled with an aspiration to amongst the most admired global
logistics companies, has prompted Mahindra Logistics to articulate this BHAG.
Mahindra Logistics is currently considering the following alternatives to go International:
1. Follow Mahindra Group, both in terms of major markets where the Groups products
and services are marketed as well as international production centres for the Group.
2. Use Mahindra Logistics International Freight Forwarding business as an entry
strategy for 3PL Contract Logistics as well. As the Frieght Forwarding business
expands, and as representative or owned offices are set up internationally to enable
the same, integrate into contract logistics solutions in those international geographies as
well.
3. Green field market entry, based on an estimate of the potential and evaluation of
the industry in a variety of fast growing geographies. This approach would involve
creating a value proposition customized to each of the chosen geographies and then
planning a market entry, either directly or in alliance with a local service provider.
Based on the above, evolve the detailed strategy for Mahindra Logistics to go
global with your recommended progression of the same, including the ideal
alternative of the 3 above or a mixed approach with objective justifications of the
same. For the Green Field Market Entry strategy, also identify the priority markets
for Mahindra Logistics to enter including the rationale for the same.

Broadvision Perspectives Client Confidential

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