NEW DELHI : Tiger Logistics (India) Ltd has signed a memorandum of understanding (MoU) with PowerPac Holdings Ltd, a concern of the Sikder Group, Bangladesh, to establish a joint venture (JV) in the logistics sector for global trade. The joint venture is aimed at establishing an international freight forwarding and logistics business, Tiger Logistics said in its statement.
Tiger Logistics made the announcement in a statement, and its stock traded at ₹794 on the Bombay Stock Exchange, up by 0.08 per cent.
“Recognizing the increasing and forecasted demand for international logistics, particularly between India and Bangladesh, Tiger Logistics aims to play a pivotal role in stimulating economic growth in the region and beyond with the diverse expertise of Sikder Group, which handles the development and operations of the Mongla Economic Zone in Mongla Port,” it added.
Following the announcement, shares of Tiger Logistics (India) rose more than 3 per cent to Rs 815 on Friday, commanding a total market capitalization of more than 850 crore. The scrip had settled at Rs 793.40 in the previous trading session on Thursday. The stock is up 145 per cent from its 52-week lows at Rs 335.
Earlier this month, the company board of Tiger Logistics announced a stock split in 1:10 ratio. It means that each share of the company with a face value of Rs 10 each shall be divided into 10 equity shares with a face value of Re 1 each, said the company in its exchange filing with the bourses.
Sikder Group also has a significant presence in various other industries in Bangladesh, including banking, insurance, healthcare, restaurants, hotels & leisure, international trading, power generation, infrastructure development and more. The companies plan to enter into a Joint Venture (JV) to establish an International Freight Forwarding and logistics business.
The development comes in continuation of the strengthening of connectivity between the two nations, as Bangladesh granted India permanent access to Chattogram and Mongla Port in April 2023. This move is poised to play a significant role in the transit and trans-shipment of cargo vessels between the countries, said the company in the statement.
Bangladesh is India’s biggest trading partner in the subcontinent, and India is the second-biggest export partner, accounting for 12 per cent of the total exports to Bangladesh. The total trade turnover in FY23 touched $14.22 billion.
Tiger Logistics (India) is an international logistics player known for its expertise in handling the import and export of cargo and projects. It has a very strong base of approximately 50 agents and partners all over the world. Its competitive edge lies in its asset light model and providing a one-stop solution to customers for international trades.