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Allcargo Logistics, the multimodal logistics solutions provider, has completed the acquisition of 1.50 lakh shares (30% stake) in express logistics player Gati-Kintetsu Express (GKEPL) for INR 406.71 crore. Allcargo’s subsidiary, Gati already holds 70% stake in GKEPL. This brings Allcargo’s stakes in GKEPL to 100%, including that of Gati. The deal includes purchasing 1.3 lakh shares (26%) from KWE-Kintetsu World Express (S) and 20,000 shares (4%) from KWE Kintetsu Express India.
GKEPL provides surface express distribution, air express distribution as well as supply chain management solutions.
“It has been a fruitful association with KWE. The Share Purchase will offer Allcargo Logistics, along with its subsidiary Gati, full ownership and control and facilitate strategic decision-making in the company. This will help us enhance service delivery capabilities to make further progress and usher in the next phase of growth. Going forward, we expect a stronger synergy between contract logistics and express distribution to further strengthen group’s position in the domestic logistics space.”
Shashi Kiran Shetty, Founder & Chairman, Allcargo Group
Allcargo’s contract logistics business is engaged in managing inventories and providing third party supply chain solutions to marquee Indian and international customers across chemical, auto, e-commerce and other industries.
These acquisitions are in line with the company’s strategy to sharpen the focus on high growth opportunities in express and contract logistics business in India. This move will also facilitate simplification of the corporate structure. Allcargo is well positioned to derive synergies from contract logistics and express distribution.
“KWE as a group and more specifically KWE India shared excellent relationship with Gati and Gati-Kintetsu over the past 10 years. This relationship will now be more strategic partnerships in domestic logistics operations in India. As a international freight forwarder, will continue to engage with Allcargo Group in various areas and explore new opportunities as it may present in the future in India and overseas.”
Yasuyuki Tani, Regional Managing Director, Southeast Asia and Oceania Region, KWE
Logistics Insider Magazine June Issue 2023