In a pioneering Indo-Saudi joint venture (JV) after Prime Minister Narendra Modi’s recent visit and the sweeping economic reforms by the Kingdom, India’s Patel Integrated Logistics Ltd. (PILL) has teamed up with Saudi-based Nationwide Group to develop Pivot Logistics.
The JV, harnessing the synergies of two leading groups with legacy and experience, has been floated to tap the emerging opportunities in the largely-fragmented logistics sector of the GCC and at the same time to add new dimension to the ecosystem.
Nationwide Group was founded by Saudi businesswoman Abeer bint Mohammed, who is ranked 11th on last Forbes Most Powerful Arab Women list while PILL was launched by Asgar Patel as a one-truck entity back in 1959 and transformed it into a global leader.
Under the memorandum of understanding, PILL will share its know-how, manpower and technology to set up and manage the end-to-end operations of the venture. In the collaboration, PILL will not make any capital investment, but will earn 19.85 percent sweat equity for applying their superior know-how in managing the venture’s operations.
Pivot Logistics will set up a network of 50+ destinations with operations in warehousing and logistics software to begin with and is expected to make a revenue of around Rs.40 million rupees in the next 2-3 years.
“With the lucrative margin available in the Gulf countries, the JV is expected to significantly enhance the bottom line of PILL,” said PILL Executive Vice Chairman Areef Patel.
By 2017, the venture will begin operations in Dubai and then across the Gulf countries by 2018.
“Our vision is to be a capital player in solidifying the role of logistics in any company's success regardless of size or cycle stage. As logisticians, we simplify to profit and minimize to grow,” said Pivot Logistics’ GM and part owner Hazem Alnajar.
The JV, harnessing the synergies of two leading groups with legacy and experience, has been floated to tap the emerging opportunities in the largely-fragmented logistics sector of the GCC and at the same time to add new dimension to the ecosystem.
Nationwide Group was founded by Saudi businesswoman Abeer bint Mohammed, who is ranked 11th on last Forbes Most Powerful Arab Women list while PILL was launched by Asgar Patel as a one-truck entity back in 1959 and transformed it into a global leader.
Under the memorandum of understanding, PILL will share its know-how, manpower and technology to set up and manage the end-to-end operations of the venture. In the collaboration, PILL will not make any capital investment, but will earn 19.85 percent sweat equity for applying their superior know-how in managing the venture’s operations.
Pivot Logistics will set up a network of 50+ destinations with operations in warehousing and logistics software to begin with and is expected to make a revenue of around Rs.40 million rupees in the next 2-3 years.
“With the lucrative margin available in the Gulf countries, the JV is expected to significantly enhance the bottom line of PILL,” said PILL Executive Vice Chairman Areef Patel.
By 2017, the venture will begin operations in Dubai and then across the Gulf countries by 2018.
“Our vision is to be a capital player in solidifying the role of logistics in any company's success regardless of size or cycle stage. As logisticians, we simplify to profit and minimize to grow,” said Pivot Logistics’ GM and part owner Hazem Alnajar.
