Mahindra Logistics Ltd

We envision a future, where we help a resurgent Indian economy take its rightful place in the world economy. By enabling the creation of a robust logistics ecosystem and providing integrated solutions, we will help enterprises Make in India, by helping them Move in India. We are on a journey to create an institution which will Rise by being future ready, generate long term value creation and create a more equal world.

The resilience of India is reflected in the unwavering spirit of its people, the diversity of its culture, and the innovative solutions it generates.

Over the past few years, your Company has been driven by a vision to create integrated, customised Logistics and mobiLity soLutions through technology, peopLe and process capabilities. This customer led approach wiLL help us Rise to our aspiration of reaching our goaL of ^ 10,000 Crores of revenue and cLass Leading financiaL returns. During 2022-23, we took severaL steps to acceLerate this journey in a period of uncertainty and opportunity.

The Post-Pandemic World

The post-pandemic era has witnessed the emergence of new economic and geo-poLiticaL dynamics. The worLd has undergone significant transformations and adaptations in response to the chaLLenges brought about by the pandemic. We have seen greater focus, resiLience, innovation and greater emphasis on areas such as heaLthcare, digitaLisation, sustainabiLity, and sociaL weLL-being. During the past year, we witnessed continuing shifts in the gLobaL economy. Even as worLd economy gained a sense of normaLcy, new chaLLenges emerged, incLuding a sLowdown in the economies of the United States and Europe. Factors such as poLiticaL tensions, trade disputes, regionaL conflicts, and shifting aLLiances contributed to economic uncertainty through the year.

In this backdrop, the Indian economy has witnessed a remarkabLe emergence. Despite the chaLLenging times across the worLd, our nation has demonstrated resiLience and adaptabiLity, propeLLing itseLf towards a path of recovery and growth. The resiLience of India is reflected in the unwavering spirit of its peopLe, the diversity of its cuLture, and the innovative soLutions it generates. As the country continues to evoLve and grow, its resiLience remains a driving force that propeLs it forward.

Through the year, the easing of suppLy chain constraints heLped drive recovery in many sectors, especiaLLy in automotive and discrete manufacturing. The automotive sector is experiencing improved avaiLabiLity of cruciaL components and materiaLs. This has enabLed manufacturers to ramp up production, meet consumer demand, and reduce deLivery Lead times. With a smoother and more efficient suppLy chain, the auto industry is witnessing increased productivity, greater operationaL stabiLity, and a positive impact on the overaLL growth and performance of the sector.

The government has recognised the significance of infrastructure deveLopment for economic growth, job creation, and improving the quaLity of Life for its citizens. SubstantiaL investments have been made in sectors such as transportation, energy, teLecommunications, and urban deveLopment, among others. There has been a significant shift in areas of cLimate change and decarbonisation with significant pubLic sector and government investments in this area, a trend which is LikeLy to continue and acceLerate.

WhiLe these trends impacted us positiveLy, we have aLso witnessed softening in consumption across some severaL end markets. Consumers have become more mindfuL of their purchases, focusing on essentiaL needs, prioritising savings and have started shifting their buying patterns from onLine to offline channeLs as weLL. This adjustment in consumption patterns reflects the changing economic Landscape and the need for individuaLs and househoLds to adapt to the new normaL. Some sectors such as E-commerce were aLso impacted by the retreat of Covid19.

Logistics - Driving the New india

2022-23 saw the introduction of severaL Landmark reforms in the Logistics sector. The Launch of the NationaL Logistics PoLicy (NLP) in September 2022 marks a significant miLestone in the deveLopment of the Logistics sector. The poLicy is expected to provide a comprehensive framework and strategic direction to unLock the potentiaL of the Logistics industry in the country. The NLP represents an integrated and coLLaborative framework, which wiLL drive our nation towards a Long term goaL of reduction in Logistics costs to 8% of GDP. Combined with the introduction of decarbonisation programs, we firmLy beLieve this is an achievabLe target.

The Launch of the UniversaL Logistics Interface PLatform (ULIP) and the Open Network for DigitaL Commerce (ONDC) represents a significant development in the digital infrastructure of the logistics sector. These initiatives are set to bring about a transformative change in how logistics operations are conducted and managed, leading to greater efficiency, transparency, and competitiveness in the industry, under the Gati Shakti initiative, there has been a continued focus on the growth and development of integrated infrastructure for the Logistics sector. By streamLining processes, improving infrastructure, and promoting efficiency, Logistics costs are LikeLy to decrease, making the movement of goods more affordabLe and competitive. The reforms in the Logistics sector in India have the potentiaL to drive down costs, foster the growth of formaLised pLayers, and support the achievement of the $5 triLLion GDP vision.

Staying the Course

I am pLeased to share that we have continued to stay the course on the strategy we had Launched a few years ago and continue to make progress.

Our 3PL Business continues to drive a focus on integrated soLutions and technoLogy Lead vaLue creation. During the year we continued to expand our warehousing network and soLutions, comprising over 20% of our annuaL 3PL revenues. We Launched severaL new Logistics for spares, fuLfiLment and expanded offerings for end markets such as the teLecom.

The year was a chaLLenging year for Cross Border Logistics business. After 18 months of significant price increases, the Last year saw a sharp correction in prices of most Lanes for air & sea movement. ResuLtantLy, we too saw a sharp reduction in our saLes revenues. However, we managed to partiaLLy offset the impact of these price reductions through voLume growth, as we expanded our coverage to over 55 Large gLobaL trade Lanes. In a move to further drive growth and expand its service offerings, we have Launched air charter services based in the United Arab Emirates (UAE). Our Long term growth rate over the past 3-4 years remains positive and we are excited by the segment's Long term potentiaL.

Our Last-MiLe DeLivery business has experienced strong organic growth, with a year-on-year growth of 16%. Despite chaLLenges faced in the market, we have focused on improving profitabiLity in Last-miLe business through effective cost management, process optimisation, and operationaL efficiency. We have aLso witnessed the continued expansion of EDEL (ELectric Last MiLe

DeLivery) services. As India's Largest pLayer in this space, Mahindra Logistics operates over 1,300 eLectric vehicLes (EVs), and 70 charging stations, across 19 cities with integrated tech stack for Last miLe deLivery operations.

The B2B Express segment has been growing significantLy and is an area of strategic focus for us. In 2022-23 our B2B Express demonstrated consistent growth and network expansion, which was further strengthened by strategic acquisitions in Late Q3 2022-23.

Accelerating our Growth

Our commitment to acceLerating growth and driving scaLe Led us to successfuLLy compLete three acquisitions/strategic investments in 2022-23.

These acquisitions aLign with our strategic objectives of growing in B2B Express, MobiLity and LMD and further enhance our capabiLities in key areas. Our acquisition of Meru (MobiLity) and Rivigo (B2B Express) and investment in ZipZap (Last MiLe DeLivery) have significant Long term vaLue creation opportunity and further expand our basket of services. These acquisitions bring additionaL capabiLities, expertise, and market presence to Mahindra Logistics, enabLing it to expand its service offerings and cater to a wider customer base. The integration of these acquisitions is progressing as pLanned, with the aim of achieving profitabiLity.

Financial Performance

During 2022-23 our standaLone revenues grew by 23% from ^ 3,631 Crores to ^ 4,459 Crores. The Company has activeLy focused on cost optimisation and margin improvement. Profit After Tax (PAT) grew by 164% from ^ 24 Crores to ^ 65 Crores. ConsoLidated revenues grew by 24% from ^ 4,141 Crores to ^ 5,128 Crores. Profit After Tax (PAT) on consoLidated basis grew from ^ 15 Crores to ^ 25 Crores. As we scaLe up the new acquisitions, we remain confident that we wiLL be abLe to grow revenue and earnings, through cost optimisation, synergy and by providing a greater portfoLio of integrated Logistics to our customers.

Technology and Automation

LogiOne, an integrated digitaL pLatform deveLoped by your Company, aims to streamLine and optimise various aspects of Logistics operations. It Leverages advanced technologies such as artificial inteLLigence, machine Learning, data analytics, and cLoud computing to enhance efficiency, visibility, and controL across the supply chain. Through LogiOne, businesses can benefit from end-to-end visibility and reaL-time tracking of shipments, inventory management, warehouse operations, transportation pLanning, and more. LogiOne comprises of severaL stacks and we have aLready Launched LogiFreight (Transport Management), LogiPick (Warehouse Management), LogiOpt (Optimisation tooLs) and others are in process of reLease.

Your Company continues to operate the premier startup incubator for Logistics sector and mobiLity, Catapult. The 3rd edition of our program, this year, attracted an impressive pooL of 167 start-ups from the Supply Chain & MobiLity sector. These seLected cohort have now embarked on an exciting journey, coLLaborating cLoseLy with us on reaL-worLd use cases. Together, we are working towards developing cutting-edge solutions that are taiLored to meet the demands of the market.

Drive to Net Zero

Our vision is to become net zero by 2039-40. We fuLLy reaLise that we must act today, to drive this change- championing green Logistics and taking proactive steps to reduce our carbon footprint. To achieve this, we have initiated severaL impactful measures and joined the Science Based Targets Initiatives (SBTI) to establish cLear metrics and goaLs.

One of the key initiatives we are undertaking for decarbonisation is the deployment of a Large fleet of eDEL eLectric vehicLes (EVs). By transitioning to EVs, we aim to significantly reduce emissions and contribute to a cLeaner and greener transportation ecosystem.

As part of this effort, we are investing in supporting infrastructure such as charging stations, parking Lots, and battery-swapping stations. We are aLso focused on training our workforce in EV operations, implementing efficient route pLanning, and Leveraging technology to optimise EV utilisation. Our EV cargo & PV fleet has now completed over 25 Mn green kiLometres and delivered over 8 Mn packages.

In addition to our EV initiatives, we are actively investing in making our warehousing facilities energy efficient and sustainabLe. Our goaL is to obtain IGBC pLatinum and LEED certification for aLL our muLti-cLient Large format warehouses. Currently, over 4 Mn SFT of our warehouses are energy-positive, owing to the utilisation of soLar power. By adopting renewable energy

sources and implementing energy-saving measures, we aim to minimise our environmental impact whiLe maintaining operational efficiency. These programs are accompanied by a focus on circuLarity and energy conservation practices.

Road Ahead

your Company wiLL maintain its strategic focus on driving scaLe and delivering a compeLLing vaLue proposition to our customers. We remain committed to cost management, continuous improvement, innovation, and customer-centricity as we navigate the dynamic and evoLving Landscape of the Logistics industry.

Our greatest assets are our peopLe. We wiLL continue to invest in severaL areas to enabLe this. Some key aspects of our approach are Empowering Women, Ski LL Development, Community empowerment and weLfare.

I am pLeased to share that your Company was Great PLace to Work™ certified for a second year in a row.

We are committed to driving future-ready, vaLue- accretive businesses that contribute to creating a more equaL worLd.

I wouLd aLso Like to express my sincere appreciation for Mr. Ajay Mehta and Mr. Amit Sinha, who have stepped down from the Board. Their invaLuabLe contributions and dedicated service have greatLy benefited our organisation, and we extend our gratitude for their exceptional guidance. My appreciation aLso extends to our other directors of the board, for their support and engagement through the past year.

in Homage

As I bring this message to a cLose, I wouLd Like to pay a heartfelt tribute to Mr. Keshub Mahindra. The Loss we have suffered with his passing cannot be measured.

But we continue to draw inspiration from his remarkabLe exampLe and take pride in the iLLustrious Leadership that continues to guide the Mahindra Group.

Thank you for your continued support of our Company. I remain confident that we wiLL coLLectiveLy continue to rise.