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Gati Launches itself into the Next Phase of Growth with All Cargo Logistics Kintetsu World Express Japan

Covai Post Network


GATI Ltd. (NSE: GATI, BSE: 532345) India’s leader in Express Distribution and Supply Chain Solutions, has offloaded a significant equity stake to Allcargo Logistics Ltd. India’s largest integrated logistics solutions provider.


Founded by Mr. Mahendra Agarwal in 1989, Gati pioneered express distribution in India. He is credited as the visionary who heralded the start of the express logistics industry in the country, and built the GATI conglomerate to create a logistics & supply chain solutions powerhouse, tapping into strategic growth verticals over the last 30 years. Today, GATI’s revenues are in excess of Rs. 1,800 crores, with a variety of offerings, spanning from express distribution to 3PL operations. It boasts of some of the largest corporate clientele, across industry verticals, amongst its vast customer base in India.


Mr. Agarwal has been scouting for an established strategic partner who could provide management and operational synergies, and launch GATI into its next growth phase, and build an enterprise so large that it has the scale to benchmark itself with best of global peers in express logistics. GATI found Allcargo Logistics Ltd. (“Allcargo”) an able and competent partner. Allcargo Logistics is the global leader in LCL consolidation through its wholly owned subsidiary ECU Worldwide. Mr. Agarwal said, “This alliance strengthens GATI with more management bandwidth, operational synergies, cross-selling opportunities, and financial strength. Further, the alliance between GATI-Allcargo will also help consolidate GATI’s position in the domestic logistics sector by adding capabilities that cover the entire range of logistics functions for its customers, and increase GATI’s revenue potential manifold catapulting Gati+Allcargo to be the No. 1 logistics leader in the Indian subcontinent.”


Kintetsu World Express (KWE) – part of the US$ 10.3 Billion Kintetsu Group Holdings, Japan; which entered into a Joint Venture with GATI to form the GATI-KWE subsidiary in 2012, continues to remain strongly invested, and will retain its existing association with GATI.


The change in GATI's shareholding and management control, with Allcargo coming on board as a majority shareholder, will not impact the regular day-to-day business operations in any manner including customers, employees, vendor partners and other stakeholders; and will only help GATI emerge as an even stronger logistics brand in the future.


Systematix Corporate Services Limited acted as an exclusive financial advisor to the parties on the transaction.


For any queries you may reach out at  [email protected] or call +91 9953137673


About Gati Ltd.

Gati Limited (www.gati.com) is a pioneer and leader in Express Distribution and Supply Chain Solutions in India and delivers over 6 million packages a month. Gati started in 1989 as a cargo management company and expanded to serving complex business solutions in Air & Surface Distribution, e-Commerce logistics, Warehousing, Value-added Transportation, Freight Forwarding and Cold Chain. Gati has now grown into an organization with more than 5,000 business partners with a network reach of 700 plus districts covering 99% of India. Gati has a 5000 plus fleet including refrigerated vehicles and world class warehousing facilities across India, with significant additional presence also in the Asia Pacific region and South Asian countries.

Source: Newsvior

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