In order to consolidate its operations, Allcargo Logistics Firm accepted the plan to buy the contract logistics division of its joint venture partner CCI Integrated Logistics and sell its customs clearing division. According to its chief strategy officer, this is a necessary first step in ultimately dividing the whole firm into 4 independent entities. In 2016, Allcargo company bought majority ownership in CCI, and as a result, the joint venture Avvashya CCI was created.
The acquisition cost is determined by the contract that was inked in 2016 with ACCI JV partners, and given the business’s great growth over the years, this procedure is a high-value accretive acquisition. The significant acquisition will give the business management authority and simplify strategic decision-making, according to Sashi Kiran Shetty, founder and chairman of the Allcargo group. By taking this action, we can improve our service delivery capabilities and promote growth. Over the years, the company has experienced significant growth and has diversified into a number of new industry sectors. The company anticipates greater synergy between an express distribution and contract logistics to boost the group’s position in both the fast-growing express market and contract logistics.
Allcargo company bought majority ownership in CCI, and as a result, the joint venture Avvashya CCI was created
The logistics companies of Allcargo Contract manage inventories and offer third-party supply chain solutions to prestigious global customers in the chemical, e-commerce, auto, and other industries. The company declared an EBITDA of Rs 31 crore for the third quarter of the fiscal year 2023 and has a total area under the control of over 5 million square feet. According to the statement, the upcoming acquisition of KWE’s (Kintetsu Express Private Limited) stake in Gati will also allow for closer collaboration between the two companies, putting them in a better position to benefit from one another’s strengths as Allcargo buys out all of the partners’ stakes in both companies.
Allcargo Logistics would sell its 61.13 per cent ownership in the customs clearance industry
For Rs. 25cr, Allcargo Logistics would sell its 61.13 per cent ownership in the customs clearance industry. Allcargo logistics, an entity that is listed on the stock exchange, may ultimately lose its worldwide subsidiary ECU global as well as the Gati supply chain. Allcargo Terminals, which will house its container freight station and inland container depot businesses, and TransIndia Realty will be the other two organisations. The company signed a contract with private equity firm Blackstone in February to sell its logistics park. Ninety per cent of these logistics parks will be owned by Blackstone under the terms of the agreement, with the remaining ten per cent remaining with Allcargo Logistics and being demerged into TransIndia Realty. In April, TransIndia Realty and Allcargo terminals will both be put on the market. At the moment, Allcargo operated out of Three Hundred-plus branches serving 180 countries.