JM Baxi Heavy has signed a definitive agreement to acquire Allcargo Logistics’s project forwarding & logistics business. It has also provided a binding offer to Lift and Shift India (Lift and Shift) to acquire its heavy and over-dimension cargo logistics business.
Lift and Shift has accepted the binding offer, which is subject to the execution of a definitive agreement for the business transfer between the parties. Both transactions are subject to completion, which is expected in the coming weeks. On completion, both businesses will merge into JM Baxi Heavy, a wholly owned subsidiary of JM Baxi Ports & Logistics.
Lift & Shift brings with it a specialization 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 & gas industry.
Together, JM Baxi Heavy and Lift & Shift will have the largest fleet of specialty equipment for over-dimensional & heavy cargo logistics like self propelled modular trailers (SPMT), barges and lifting equipment. This will enable JM 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 within India.
Allcargo’s Project Forwarding and Logistics business will add to JM 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.
Dhruv Kotak, MD, JM Baxi Group said, “We are just beginning to see the cycle turn. The next decade will see momentum in demand bolstered by the National Infrastructure Pipeline with a size of $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 JM 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.”
Adarsh Hegde, joint MD, Allcargo Logistics, said, “India, today, is looking ahead to bold business targets. Achieving them definitely needs robust infrastructure development, and JM Baxi Group has truly proved its capabilities in contributing to it. Allcargo and JM Baxi are happy to partner with each other in making this transaction successful.
This will be good for industry, customers and employees as businesses and capabilities come together. At Allcargo, this exit is aligned with our strategy to focus on Allcargo Group’s core business.
