Acquisition marks Allcargo’s entry into B2C logistics
Allcargo Logistics Ltd., India’s largest integrated logistics solutions provider has forayed into the express logistics space by acquiring a controlling stake in Gati Ltd. - a pioneer in the segment.
Through this transaction Allcargo has added another domestic service to its portfolio by entering a segment which has been growing exponentially.
Allcargo has become the only Indian company to provide a comprehensive range of services Multimodal Transport Operations (MTO), Container Freight Station Operations/Inland Container Depot Operations (CFS-ICD), Projects & Engineering Solutions, Warehousing, Distribution, Contract logistics and Logistics parks.
With the formal completion of this deal in the next two to three months, Allcargo will emerge as India’s largest logistics company by revenue in the private sector with an operational presence across the length and breadth of India.
India’s express logistics industry is expected to reach USD 7 billion by 2023, according to a study led by Deloitte in 2018. This growth will primarily be driven by domestic consumption, shift from unorganised to organised trade, e-commerce (domestic and cross border) and significant demand from the small and medium B2B segment.