Mahindra Logistics is buying the organisation’s network with customer contracts, along with the technology and the brand, he said.
“In terms of margins, Rivigo did lose money in the last 12 months on B2B business. (But) Contribution margins or unit margins of the business are positive and quite favourable. The business has a very strong above median yield profile,” Swaminathan said.
Combining the businesses will yield benefits in terms of scalability and overall tonnage will rise by 40% on a monthly basis, he said.
Swaminathan expects the business to be Ebitda-positive and EPS-accretive over the next four quarters and sees a positive long-term margin profile.
“This first 12 months’ focus is ensuring customer delivery and service remains exceptional, and we turn around to be EPS-accretive over the next 12 months,” he said.
