LEAP India Acquires Asset Renting Firm SKAN Marine

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SUMMARY

SKAN’s acquisition would help LEAP become the number 2 company in India in forklift renting space when combined with its subsidiary Taron

The deal will improve the turnover and EBITDA of both companies

Set up in 2013, LEAP India offers a slew of products and services for transportation and storage management, inventory management and SAP IT solutions

Supply chain solutions startup LEAP India on Friday (February 24) announced its acquisition of Mumbai-based asset renting firm SKAN Marine. However, it did not disclose the acquisition cost.

The acquisition will help LEAP improve its position in the forklift renting segment and further improve the turnover and EBITDA of both the companies, a statement said.

SKAN’s acquisition would also help LEAP become the number 2 company in India in forklift renting space when combined with its subsidiary Taron. LEAP aims to grab number one position in the next 12 months, it added.

Founded in 1983, SKAN Marine is a forklift and asset renting firm. It offers rental services for forklifts, reach trucks, tow trucks and battery-operated pallet trucks.

It has a pan-India presence and offers services to 75 customers operating in diverse industries such as FMCG, glass, tyre, steel and heavy metal. Its clientele includes Reliance Industries, Nestle India, Honda Motors, Piramal Glass, LG, and Owens Corning.

“It has been a long time since SKAN Marine has been in the business and LEAP India shares synergy with our company. We share a similar path. Supply chain requires a lot of strategy to grow whether in volume or in profits, therefore it becomes important to decide your bottom line as the prices are not going down and demands are increasing in the industry,” said Suresh Sood, MD of SKAN Marine Services.

The development comes about one-and-a-half years after LEAP raised $34 Mn in a funding round led by Schroder Adveq and IIFL fund. Its early investors Mayfield Fund, IndiaNivesh, and Sixth Sense Ventures partially exited the startup in the round.

Set up in 2013 by Sunu Mathew, the Mumbai-based startup offers a slew of products and services for transportation and storage management, inventory management and SAP IT solutions to organisations across India.

“SKAN Marine has been one of the leading specialised material handling companies in India. We want to position LEAP India as a leading company in forklifts as well. This will enable us to partner with businesses where SKAN Marine has a strong presence, while continuing to work with brand’s where Taron already has its root base to accelerate growth of our brand identities,” said Mathew, founder and MD of LEAP India.

LEAP India competes with the likes of logistics tech startups Algorhythm, Porter and LetsTransport.

As per a Statista report, India’s supply chain market was valued at $250 Bn in the financial year 2021 and is expected to become a $380 Bn industry by 2025, growing at a CAGR of 10-12% during the period.