Hellman Worldwide Logistics forms JV with Sri Lanka’s MAS Holdings to set up focused air and sea unit
Hellmann Worldwide Logistics (HWL) and MAS Holdings has reportedly established a joint venture (JV) Hellmann MAS Supply Chain (HMSC) in Sri Lanka by combining Hellmann´s existing contract logistics business in Sri Lanka and in-house logistics activities of MAS.
A local news report states that with the formation of the new JV, the existing HWL business in Sri Lanka transitions into a focused air and sea unit, whilst the new JV will provide contract logistics and Fourth Party Logistics (4PL) services in Sri Lanka.
In addition to the existing Hellmann contract logistics business in Sri Lanka being transferred to the new joint venture, a new fashion logistics facility will be opened at the MAS compound in Katunayake Export Promotion Zone (KEPZ).
According to reports, it is the vision of HMSC to create a pull model supply chain using Sri Lanka as the hub for major global fashion brands, help produce market specific products by offering value-added services and facilitate an e-commerce channel from the source.
HMSC is to also manage the procurement and coordination of MAS’ incoming air freight.
HMSC is to further provide its services to MAS as well as Hellmann’s existing contract logistics customers. Services offered by HMSC, which include warehousing, value added services such as re-packing, labelling, ratio packing, etc. and 4PL logistics services, will also be offered to other potential customers in Sri Lanka.
Hellmann Middle East and South Asia (MESA) CEO Madhav Kurup has been quoted as saying, “This joint venture is a clear example of two family-owned companies with similar DNA coming together to create a unique expertise in Sri Lanka that will have the ability to provide services of the highest standards in contract logistics and 4PL. This venture further helps us position ourselves as the market trend setter in the global fashion supply chain, as it evolves from a push model to pull model. MAS’ well-established credibility with Hellmann’s global logistics expertise, systems and processes will make us invincible in the market place.”
Meanwhile, MASC Chief Operating Officer Shirendra Lawrence has said, “We are constantly progressing and looking for dynamic companies to connect with to enhance our service, offering beyond traditional value proposition. This strategic partnership with global logistics partner Hellmann is timely as it gives MAS a strong foundation to offer warehousing, value added services and 4th party logistics solutions. Hence, it gives us the opportunity to further enhance our agility and speed to market.”
OSL take:
The JV between Hellman Worldwide and MAS Holdings could be viewed as a unique expertise in Sri Lanka that will have the ability to provide services of the highest standards in contract logistics and Fourth Party Logistics. Local businesses as well as foreign businesses could look at forming similar joint ventures that would improve the overall businesses of both business entities.
| Article Code : | VBS/AT/20180202/Z_3 |