BlackBuck Plans New Subsidiary to Expand Into Transport and Logistics Services

BlackBuck is preparing to set up a wholly owned subsidiary in India as it looks to build a business spanning transportation, logistics assets, fleet services and technology-led platforms. 

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The new company could be called BlackBuck Transport Services Private Limited or BlackBuck Trucking Services Private Limited, although the final name will depend on approval from the relevant authorities. 

BlackBuck’s board cleared the proposal at its meeting on September 11. The subsidiary will operate in the transportation and storage sector, with a mandate that extends from owning and leasing commercial vehicles to providing road transportation and digital services for the logistics ecosystem. 

New Business to Cover Trucks, Transport and Logistics 

The proposed subsidiary will be able to acquire, own or hire trucks, lorries and other vehicles and transport assets. These assets could then be offered on hire, lease or subcontract to goods transport agencies. 

Its scope also includes providing road transportation services to small and medium enterprises and other customers, giving the new business a direct role in the movement of goods. 

BlackBuck has kept the mandate broader than physical transportation alone. The subsidiary can also operate electronic platforms where trucks, lorries, containers, cold-storage vehicles and other transport assets can be discovered, listed or classified. 

Database services, fleet management, warehousing, mobility and other technology-enabled logistics services are also covered under the proposed business. 

BlackBuck to Hold 100% of New Company 

BlackBuck, together with its nominee, will subscribe to the entire share capital of the subsidiary, giving it 100% ownership and control. 

The investment will be made in cash, with shares subscribed at a face value of ₹10 each. The disclosure does not specify the total amount BlackBuck plans to invest or the number of shares that will initially be issued. 

As a wholly owned subsidiary, the new entity will also be considered a related party of BlackBuck. 

Final Name Awaits Approval 

The company has proposed two possible names for the business — BlackBuck Transport Services Private Limited and BlackBuck Trucking Services Private Limited. It may also adopt another name depending on what is cleared by the relevant authorities. 

No specific government or regulatory approval has been identified for the incorporation, apart from approval from a competent authority where required. 

The move gives BlackBuck a corporate vehicle through which it can pursue a mix of physical and digital logistics activities, ranging from owning transport assets and serving goods transport agencies to road freight, fleet management, warehousing and technology-enabled services.