J M Baxi buys Lift & Shift and Allcargo’s project forwarding business
Mumbai-based J M Baxi has expanded its heavy and over-dimensional cargo logistics business portfolio with the acquisition of Allcargo Logistics’ project forwarding and logistics business valued at $13 million. It has also placed and had its bid accepted to acquire Lift and Shift India’s heavy and over-dimensional cargo logistics unit.
Both transactions are subject to completion, which is expected in the coming weeks. On completion, both businesses will merge into J M Baxi Heavy, a wholly owned subsidiary of J M Baxi Ports & Logistics Limited.
Lift & Shift brings with it, a specialisation 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, J M 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 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 within 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 excellence in 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.
Dhruv Kotak, managing director of J M Baxi Group said, “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. The next decade will see momentum in demand bolstered by the National Infrastructure Pipeline with a size of US$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 organisation 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.”