Logistic Stock Okays Expansion Plans After 1:10 Stock Split & Order Win From BHEL

Tiger Logistics (India) Ltd is a prominent provider of end-to-end international logistics solutions, listed on the Bombay Stock Exchange. The company has a strong presence in India and caters to a variety of industry verticals, including automotive, engineering, yarns, textiles, pharmaceuticals, consumer durables, and commodities.

The company announced today that it has signed a Memorandum of Understanding (MOU) with PowerPac Holdings Limited, a division of Sikder Group, Bangladesh, in order to establish a joint venture (JV) in the global trade logistics industry and formalise a strategic partnership with Tiger Logistics (India) Limited.

With the diverse expertise of Sikder Group, which manages the development and operations of the Mongla Economic Zone in Mongla Port, the second-largest seaport in Bangladesh, Tiger Logistics seeks to play a pivotal role in stimulating economic growth in the region and beyond. Tiger Logistics recognises the growing and anticipated demand for international logistics, particularly between India and Bangladesh.

In addition, the Sikder Group is well-represented in a number of other businesses in Bangladesh, such as international trade, power generation, restaurants, hotels & leisure, insurance, healthcare, and infrastructure development. In order to take advantage of the growing potential offered by Bangladesh's global trade as well as its bilateral trade with India, the firms want to form a Joint Venture (JV) to build an international freight forwarding and logistics business. The JV will draw on the joint expertise of both organisations.

This initiative is part of an ongoing effort to improve the relationship between the two countries; in April 2023, Bangladesh allowed India permanent access to Chattogram and Mongla Port. This move is expected to have a major impact on the transhipment and transit of cargo vessels between the two nations, improving access to the northeastern states of India even further.

India's second-largest export partner on the subcontinent, Bangladesh is India's largest trading partner, with 12% of all exports to Bangladesh coming from India. In FY23, the overall trade turnover was $14.22 billion USD.

The state-run company Bharat Heavy Electricals Limited (BHEL) has awarded the logistics solutions provider another sizable contract for the shipment of products via air. The same was disclosed by the corporation in an exchange report this week. According to the exchange filing, the firm will handle import and export by sea and offer BHEL services such as customs clearance, forwarding, handling, transportation, and warehousing. In simpler terms, the company will offer BHEL full logistical solutions within the constraints of the tender.

On 9th January 2024, the Board of Directors of Tiger Logistics approved the proposal of sub-division/split of the company's 1 equity share having a face value of Rs. 10/- each into 10 equity shares having a face value of Re. 1 each, subject to the approval of shareholders and such other approvals as may be required. In this regard, the record date for such sub-division/ split shall be intimated to the stock exchange in due course.