The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
Mahindra Logistics Ltd., a unit of India’s biggest utility vehicle maker, expects higher revenues due to consolidation in the industry spurred by the nationwide sales tax.
It’s easier for a customer to get the full benefit of the Goods and Services tax by dealing with a fewer number of vendors, said Mahindra Logistics Chief Executive Officer Pirojshaw Sarkari in an interview in Chennai last week. Customers will seek large third-party logistics players instead of a number of carrying and forwarding agents previously, he added.
“Our vision is to become a 60 billion rupees top line revenue company by March 2021,” Sarkari said, adding the company posted 34 billion rupees ($469 million) in the year ended March 2018 .
“A lot of these small players are going to move out as they are not going to be able to comply with post GST scenario.â€
The nationwide implementation of the sales tax in July 2017 replaces a web of archaic tax laws and marked the biggest revenue collection reform in India’s post-independent history. The new measure will help companies such as Mahindra Logistics to lease more trucks and warehouses from small players and offer a one-stop solution to clients.
Credit rating agency Crisil Ltd. expects the third-party logistics market to grow as much as 21 percent on a compounded basis to 570 billion rupees by the financial year ending March 2020, Mahindra Logistics said in its latest annual report.