Indian LSP Pallia Transport has entered into a 50:50 logistics joint venture with Italy’s Gruppo Mercurio to provide end-to-end vehicle movement services between India and Europe.
Called Mercurio Pallia Logistics, the new company is looking to benefit from the growth in Indian vehicle sales especially with Monday’s launch of the Tata Nano in Mumbai. It will also seek to capture movements of Indian made, small segment vehicles in Europe. Tata, for example, is planning a European version of the Nano for launch in two years.
Speaking at the launch of the joint venture in Gurgaon last week, Gruppo Mercurio Chairman Andrea Conti said: “The Indian automobile market is poised to be a significant growth hub. By setting up this JV we have taken a positive step forward in realising our ambitions in the India market. Small segment cars produced in India also have a good sales potential in Europe.”
The Italian company will bring its expertise in stockyard management, pre-delivery inspection and other value-added provision to the joint venture.
Meanwhile, Pallia Transport is planning to buy 100 transporters for the new company over the next year and has already placed an order for 20 trailers with Tata Motors.
Chairman of Pallia Transport Vipul Nanda told reporters that the joint venture will provide value added services to the Indian auto logistics market, worth Rs 2,000 crore ($394m) annually. “We will increase our existing business in car transportation with automobile companies including Maruti, Mahindra and Mahindra, Tata Motors, Hyundai, General Motors and Honda.”

He also said that Pallia was conducting a feasibility study for car movements in rail wagons.