J M Baxi Heavy Pvt Ltd, a wholly-owned unit of J M Baxi Ports & Logistics Ltd has acquired the ‘Project Forwarding and Logistics’ business of Allcargo Logistics Ltd for ₹98.64 crore.
Separately, J M Baxi Heavy has made a binding offer to Lift & Shift India Pvt Ltd (Lift and Shift), to acquire its heavy and over-dimension cargo logistics business. Lift and Shift has accepted the binding offer, subject to the execution of a definitive agreement for the business transfer between the parties.
On completion, both businesses will merge into J M Baxi Heavy Pvt Ltd.
Lift & Shift specialises in engineered logistics services for the niche and growing category of super-heavy lifting, shifting and multimodal transportation. It caters to sectors such as petrochemicals, hydrocarbon, fertilisers, renewable energy, power generation, civil construction, large scale manufacturing and prominently offshore oil and gas industry.
J M Baxi Heavy and Lift & Shift will have the largest fleet of specialty equipment for over-dimensional and heavy cargo logistics like Self Propelled Modular Trailers (SPMT), barges and lifting equipment. This will enable J M Baxi Heavy to reach a wider customer base, improve its service proposition and create synergies in efficiency building, while being able to mobilise equipment and personnel swiftly, anywhere in India.
Allcargo’s Project Forwarding and Logistics business will add to J M Baxi Heavy’s existing network with enhanced geographical presence in the Indian sub-continent and Africa, as well as diverse clientele in the Project Forwarding and Logistics sector. Additionally, backed by its customised lifting and transportation solutions, Allcargo’s expertise in project forwarding and long-haul transportation of heavy/over-dimension cargo will further bolster J M Baxi Heavy’s existing strengths in this segment.
“The Indian economy has strong fundamentals for growth, and this acquisition comes at a time where there is an upsurge in capital expenditure in various sectors in the country. We are just beginning to see the cycle turn,” said Dhruv Kotak, Managing Director, J M Baxi Group.
The next decade, according to Dhruv Kotak, will see momentum in demand bolstered by the National Infrastructure Pipeline worth $1.5 trillion. The acquisition of the two business divisions of Allcargo and Lift & Shift will add immense value, weave in synergies with the current line of business at J M Baxi Heavy and expand opportunities for the organization to be present in high growth categories.
“Through this, we will be able to cater to our customers across the infrastructure space in the Indian and African sub-continents. The acquisitions will further strengthen, JM Baxi’s strategy for long term growth and enable us to continue being an active participant in the Indian growth narrative,” Kotak added.
“At Allcargo, this exit is aligned with our strategy to focus on Allcargo Group’s core business,” said Adarsh Hegde, Joint Managing Director, Allcargo Logistics,