Mahindra Logistics Limited announced that it has executed a Joint Venture Agreement with Seino Holdings Co., Ltd., Japan for incorporation of a Joint Venture Company ("JVCo") in India, by way of subscription to the Equity Share Capital of the JVCo., wherein the company will be holding 50% of the Equity Share capital of the JVCo. and the balance 50% will be held by Seino. The proposed JVCo will be formed to carry on the business of providing warehousing and trucking services and related services thereto primarily to Japanese automobile companies and Japanese auto ancillary companies and /or auto ancillary Affiliates in India and such other matters as may be agreed from time to time.

The scope of the joint venture is for Indian markets. The Shareholding in the proposed JVCo. is as follows: The Company ­ 50% of the Equity Share Capital, Seino ­ 50% of the Equity Share Capital.

The proposed JVCo. will be formed in India for carrying on the business of providing warehousing and trucking services and related services thereto primarily to Japanese automobile companies and Japanese auto ancillary companies and /or their respective automobile and/or auto ancillary Affiliates in India and such other matters as may be agreed from time to time. The Company has approved an investment of an amount upto INR 2.20 crore (in one or more tranches) in the JVCo.

The broad terms of the JV Agreement would be as follows: The Board of JVCo. will comprise of equal number of nominees; Seino shall have the right to nominate any one of the Seino's Direc for the position of the Managing Director and CEO of the JVCo.; The Company shall have the right to nominate a candidate for the position of the Finance Head of the JVCo.; Several customary matters such as approval of budget and business plan of JVCo. require an approval from both the Company and Seino, etc.

The investment/subscription to the share capital of the JVCo. does not fall within the purview of Related Party Transaction for the Company. Post investment by the Company, the JVCo.

will become an Associate of the Company and hence, Related Parties of the Company. Except to the extent of the share capital to be held by the Company in the JVCo., the promoter/promoter group/group companies have no interest in the JVCo. The initial paid-up capital of the JVCo.

will be of an amount of upto INR 4 crores. The JVCo. will be incorporated as a joint venture of the Company with Seino for carrying on the business of providing warehousing and trucking services and related services thereto primarily to Japanese automobile companies and Japanese auto ancillary companies and /or their respective automobile and/or auto ancillary Affiliates in India.