Allcargo buys partner's 39% stake in contract logistics arm
WAREHOUSING & LOGISTICS

Allcargo buys partner's 39% stake in contract logistics arm

Allcargo Logistics paid Rs 145 crore for the remaining 38.87 percent ownership of its partner ACCI in the contract logistics arm, valuing the company at Rs 373 crore on an enterprise basis.

Allcargo has also chosen to sell its non-core customs clearing business by selling its 61.13 percent ownership for Rs 42 crore.

With the acquisition, Allcargo will own 100% of the contract logistics business, creating an excellent synergy between contract logistics and express distribution.

According to the corporation, the acquisition price is based on the agreement struck with ACCI in 2016 and the company's growth in this business over the years.

The acquisition gives management authority and makes strategic business decisions easier. This will also assist us improve our service delivery capabilities in order to promote growth.

Over the years, the company has expanded rapidly, extending into various new sector segments. We expect additional synergies between our contract logistics and express distribution with full ownership, said Shashi Kiran Shetty, founder and chairman of the Allcargo company.

The contract logistics division of Allcargo manages inventory and provides third-party supply chain solutions to local and international customers in the chemicals, automotive, e-commerce, and other industries.

He stated that the company manages approximately 5 million square feet of space and generated a pre-tax profit of Rs 31 crore for the December quarter.

He also stated that the forthcoming acquisition of KWE's investment in Gati will allow for greater collaboration between the two organisations, allowing them to better use each other's strengths, with Allcargo purchasing complete stakes in both businesses.

The board of directors also approved the sale of the group's smaller non-core customs clearance operation. As a result, Allcargo would sell its 61.13 percent ownership for Rs 42 crore in enterprise value.

Shetty stated that this sale is part of the process of abandoning non-essential businesses in order to combine core businesses.

With the merger of Allcargo Terminals and TransIndia, which has already been approved by the NCLT, the company will have two different business segments: international supply chain and express and contract logistics.

Allcargo Logistics is a global leader in multimodal logistics solutions and its wholly-owned subsidiary Allcargo Belgium, which operates ECU Worldwide network is a global leader in ocean freight consolidation.

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Allcargo Logistics paid Rs 145 crore for the remaining 38.87 percent ownership of its partner ACCI in the contract logistics arm, valuing the company at Rs 373 crore on an enterprise basis. Allcargo has also chosen to sell its non-core customs clearing business by selling its 61.13 percent ownership for Rs 42 crore. With the acquisition, Allcargo will own 100% of the contract logistics business, creating an excellent synergy between contract logistics and express distribution. According to the corporation, the acquisition price is based on the agreement struck with ACCI in 2016 and the company's growth in this business over the years. The acquisition gives management authority and makes strategic business decisions easier. This will also assist us improve our service delivery capabilities in order to promote growth. Over the years, the company has expanded rapidly, extending into various new sector segments. We expect additional synergies between our contract logistics and express distribution with full ownership, said Shashi Kiran Shetty, founder and chairman of the Allcargo company. The contract logistics division of Allcargo manages inventory and provides third-party supply chain solutions to local and international customers in the chemicals, automotive, e-commerce, and other industries. He stated that the company manages approximately 5 million square feet of space and generated a pre-tax profit of Rs 31 crore for the December quarter. He also stated that the forthcoming acquisition of KWE's investment in Gati will allow for greater collaboration between the two organisations, allowing them to better use each other's strengths, with Allcargo purchasing complete stakes in both businesses. The board of directors also approved the sale of the group's smaller non-core customs clearance operation. As a result, Allcargo would sell its 61.13 percent ownership for Rs 42 crore in enterprise value. Shetty stated that this sale is part of the process of abandoning non-essential businesses in order to combine core businesses. With the merger of Allcargo Terminals and TransIndia, which has already been approved by the NCLT, the company will have two different business segments: international supply chain and express and contract logistics. Allcargo Logistics is a global leader in multimodal logistics solutions and its wholly-owned subsidiary Allcargo Belgium, which operates ECU Worldwide network is a global leader in ocean freight consolidation. Also Read Duhai depot of RRTS project starts its operation for 82km Yogi Adityanath govt. sets timeline to make power plants

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