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Allcargo Logistics Ltd, India’s largest integrated logistics solutions provider, enters into the express logistics space by acquiring a controlling stake in Gati Ltd – a pioneer in the segment.
The final completion of the deal in the next two-three months will allow Allcargo to offer end-to-end transportation facility to customers and help the company to emerge as India’s largest logistics company by revenue in the private sector with an operational presence across the length and breadth of India.
A study led by Deloitte reveals, the express logistics industry is expected to reach INR 48,000 crore (USD 7 billion) by 2023, with consumption, shift from unorganised to organised trade, e-commerce (domestic and cross border) and significant demand from the small and medium B2B segment are the primary growth drivers.
“The exponential rise in cross-border and domestic e-commerce has opened up new markets for traditional express players such as Gati. With Allcargo’s existing strength in the ocean transportation business and Gati’s expertise in land and air transportation, we are now in a unique position to offer our customers a suite of truly multimodal solutions.”
– Shashi Kiran Shetty, Chairman, Allcargo Logistics Ltd.
Post the new deal, Gati will be able to leverage Allcargo’s Global network to provide time and cost-efficient solutions to clients.
“With this strategic deal with Allcargo Logistics, we have entered a new era of consolidation in the domestic express logistics space. This collaboration also reiterates our commitment to ensure maximum outreach across untapped markets and provide benchmarked last-mile delivery solutions to our clients.”
– Bala Aghoramurthy, Deputy Managing Director, Gati Ltd.
Apart from this, the acquisition also makes a strategic relationship between Allcargo and Kintetsu World Express (KWE), the 10th largest air freight forwarder in the world.
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