Latest News | Sitics Logistic Solutions Acquires Cold Chain Start-up Udgam Logistics

Mumbai, Sep 7 (PTI) Third-party logistics firm Sitics Logistic Solutions on Tuesday said it has acquired Delhi-based cold chain and distribution start-up Udgam Logistics, paving its entry into the USD 25-billion cold chain space besides tapping into new markets.

The company, however, did not disclose the acquisition amount.

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This is the second buyout for the Palakkad (Kerala)-based technology-enabled supply chain company in the recent past. In early-May this year, it acquired Quifers, an innovative logistics tech start-up.

Bucking the challenges of the pandemic, Sitics Logistic Solutions has acquired Udgam Logistics for an undisclosed amount, the company said in a statement.

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Founded by Shailendra Singh and Rahul Mathur, Udgam caters to segments such as quick service restaurant (QSR), pharmaceuticals, agriculture, dairy, fruits and vegetables, retail and marine products. It currently offers primary and last-mile solutions.

The latest acquisition of Udgam Logistics has driven Sitics up the value chain in the global third-party logistics market, it said.

The company added that while it places the company among the unique integrated supply chain service providers, it also gives entry into the USD 25-billion cold chain market.

The market positioning of Udgam, with its state-of-the-art temperature-controlled solutions, will expand the footprint of Sitics and help it tap into new markets and significantly boost its revenue, Sitics said.

The combination would unlock tremendous cross-selling and up-selling opportunities for both the companies as a combined entity, it added.

"In continuing with our vision of building capabilities across the logistics value chain, this acquisition will help Sitics target a new segment and provide tremendous value to our clients," said Sitics Logistic Solutions founder CEO Sikander A M.

He added that sectors like pharma, QSR, hotel/ restaurant/catering (HORECA), agriculture, dairy, and marine are rapidly growing. The sectors are in need of a world-class temperature-controlled supply chain, which Sitics will be able to provide through Udgam's expertise, experience, and processes.

"Combined with our technology platform, it has equipped us to offer cutting-edge unique solutions that will build a market-leading presence in the segment," he added.

With core capabilities in supply chain planning, freight forwarding, transportation, warehousing and e-commerce logistics, Sitics also provides solutions such as direct-to-customer (D2C), direct-to-retailers (D2R), and cross-border e-commerce.

It has a presence in five countries and manages over 130 projects across over seven sectors.

"Udgam's merger with Sitics would enable it to emerge as an integrated player with wide reach, offering unique and innovative solutions in the logistics domain, especially with respect to temperature-controlled supply chains," said Rahul Mathur, founder and director of Udgam Logistics.

Sitics' presence and expertise in logistics tech, e-commerce, warehousing, clearing and forwarding (C&F) operations spanning across Southeast Asia, Europe, Australia and the US, unfold many opportunities to develop this vertical with cutting-edge and tech-driven solutions, he said.

Kochi-based investment advisory firm Backwater Capital was the advisor to the transaction, as per the statement. HRS hrs

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)