As Allcargo company, Gati aims to be a complete logistics solutions provider

December 29 , 2020

Source: The Hindu Business Line

Hopes to ride shift in consumer demand, explore new business

Express logistics solutions provider, Gati Ltd, now part of Allcargo Logstics Ltd post its acquisition, aims for a decentralised, asset-light approach to growth, catering to new and emerging opportunities as an end-to-end logistics solutions provider.

Post the strategic acquisition by Allcargo, efforts are being directed towards restructuring key aspects of the business. External turnaround consultants have been engaged to manage this organisation-wide transformation called Project Avvashya. The project aspires to ‘Redefine Gati’ and consolidate its position as India’s premier express distribution company.

While focussing on the growing e-commerce business, it expects to tap international business leveraging the network of the Allcargo Logistics business.

As Gati gets set to hold its 25th Annual General Meeting under the new management of Allcargo Logstics on Monday (December 28, 2020), Shashi Kiran Shetty, Founder Chairman of Allcargo Logistics and now Gati CMD, in his message to shareholders, said: “Our company has also aligned its activities to fulfil its objective of delivering 1 million packages per day. Besides, the strategic acquisition by Allcargo Logistics provides us the much-needed impetus to grow and explore opportunities in the international market.”

“With the conclusion of the strategic acquisition, Gati is now a Allcargo Company. Gati can now offer its customers the opportunity to explore Allcargo’s services including Container Freight Stations and Inland Container Depots, Project Logistics, and Contract Logistics to tap into the strengths of Allcargo’s global network that operates through more than 300 offices in over 160 countries,” he said.

“Gati’s extensive domestic reach into more than 19,800 PIN codes and 735 out of 739 districts along with excellence in express distribution and first and last mile logistics combined with Allcargo’s worldwide presence and expertise in diverse logistics verticals, enables us to offer truly end-to-end logistics services to customers in India and across the world,” he said.

In FY2019-20 Gati closed with revenues of ?1,711.67 crore compared with ?1,863.19 crore in FY2018-19.

Leveraging opportunities
Gati Kausar, the cold chain solutions business, offers specialised solutions for pharmaceutical logistics amongst various other sectors. Due to a substantial activity in the e-commerce segment, the logistics footprint is set to grow.

“Being one of India’s premier express distribution companies with expertise in supply chain management, first and last mile deliveries, and well-designed as well as optimally-functioning hub-and-spoke model, we can look at leveraging multiple opportunities arising from the growth in e-commerce,” Shetty said.

The way ahead for the businesses is likely to be a decentralised approach. This can offer greater flexibility and strike the right balance between proximity to industry clusters as well as consumption centres.

In collaboration with over 4,000 business partners/associates, Gati operates India’s largest fleet of more than 5,000 vehicles. In light of increasing customer demands and expectations, Gati expects to increase its routes, reduce transit times and expand its warehousing footprint.



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