Allcargo Logistics

Allcargo Logistics Ltd, part of the Avvashya Group, is a logistics firm headquartered in India. Its services comprise global multimodal transport operations (non-vessel-operating common carrier, less than container load, and full container load), pan India container freight stations, inland container depots, third-party logistics, warehousing, contract logistics and logistics parks. The company operates across more than 160 countries through more than 300 offices. As one of India's largest publicly listed logistics companies, Allcargo Logistics has a consolidated revenue of INR 7346 Cr as of March 2020.[1][2][3][4][5][6]

Allcargo Logistics Ltd –
Part of The Avvashya Group
TypePublic company
IndustryLogistics and transportation
FoundedMumbai, India (1993)
FounderShashi Kiran Shetty
Headquarters
Mumbai, Maharashtra (India)
,
India
Area served
Worldwide
Key people
Shashi Kiran Shetty (Chairman)
ServicesMultimodal transport
RevenueINR 7346 Cr
Number of employees
4500 (2019)
Websiteallcargologistics.com

History

In 1993, Chairman of Allcargo Logistics Mr. Shashi Kiran Shetty founded Allcargo Logistics as a cargo handling operator at Mumbai port. Initially Allcargo Logistics was a shipping agency house and provided freight forwarding services.

In 1995, ECU Line, an Antwerp-based non-vessel operating common carrier (NVOCC), appointed Allcargo as their India agent. In 2003, the company started its first container freight station (CFS) at the largest Indian port, Jawaharlal Nehru Port Trust (JNPT) in Mumbai. In 2007, it started two new CFSs at Chennai (in Tamil Nadu) and Mundra (in Gujarat) ports followed by a second CFS at JNPT in the year 2012. In 2006, private equity firm New Vernon Capital Fund acquired 6.42% stake in Allcargo. In 2008, Blackstone GPV Capital Partners picked up a 6% stake in the company which was later increased to 14.99% in September 2009 by converting warrants worth US$23 million which the global private equity fund subscribed in February 2008.

In 2013, Allcargo Logistics acquired US based Econocaribe Consolidators and a controlling stake in Netherlands-based logistics company FCL Marine Rotterdam through its wholly owned arm Ecuhold NV.

Allcargo Logistics rebranded all its international acquisitions as ECU Worldwide on 2 May 2016.[7]

In 2016, Allcargo Logistics also expanded into Contract Logistics with Avvashya CCI and offers customized end-to-end solutions for auto, pharma, chemical, e-commerce and spare part logistics.[8]

In keeping with the increasing demand for warehousing and government policy changes, Allcargo Logistics decided to monetize its existing land banks and foray into logistics and industrial parks to provide world-class warehousing under Allcargo Logistics Industrial Parks Private Limited in 2018.[9]

Allcargo Logistics acquired controlling stake in Hyderabad-based Gati Ltd. in 2020.[10]

Today, the group is a US$1.2 billion organization, and one of India's leading business conglomerates.

Acquisitions

ECU Line (2005–06): Allcargo's first acquisition was of the Belgium-based ECU Line, spanning three stages from 2005 to 2006. Allcargo acquired 33.8% stake in ECU Line in June 2005, increased its stake to 49.9% in Jan 2006 with an option to increase the stake further, and acquired the remainder in Jun 2006, making Allcargo Logistics one of the largest NVOCC in the world. ECU Line's revenues at the time of the acquisition were 4.3 times the revenues of Allcargo Logistics.[4][11]

Hindustan Cargo Ltd. (2006): A former subsidiary of travel and forex major Thomas Cook, Hindustan Cargo is predominantly engaged in air freight forwarding and custom clearance. The company was acquired by Allcargo Logistics in 2006 for an undisclosed amount.[12]

Hong Kong-based Companies (2010):Allcargo acquired two Hong Kong-based companies with operations in China (one in Shanghai with 75% stake and the other in Ningbo with 100% stake) for US$22 million.[13]

MHTC Logistics Pvt. Ltd (2012): Allcargo acquired 100% equity in MHTC Logistics Private Limited, engaged in project logistics and freight forwarding.[14][15][16][17]

Econocaribe Consolidators(2013): Allcargo through its wholly owned subsidiary, ECU-LINE acquired Econocaribe Consolidators, a US based logistics company. Econocaribe specializes in freight consolidation and FCL services to Latin America, the Caribbean, Europe, the Mediterranean, the Middle East, Africa and Asia. It also offers import LCL/FCL transportation services from around the world to the United States and Puerto Rico.[18][19]

FCL Marine Agencies(2013): Allcargo Logistics through its step down wholly owned subsidiary company Ecuhold NV acquired majority stake in FCL Marine Agencies Rotterdam, a Netherlands-based Logistics company.[20]

ECU Worldwide (2016): ECU-Line globally rebranded as ECU Worldwide[7]

Avvashya CCI (2016): Expansion into customised auto, chemical, pharma and e-commerce sectors with Avvashya CCI for Contract Logistics[8]

Gati (2020): Acquired controlling stake in Hyderabad-based Gati Ltd., India's premier express distribution company marking Allcargo's foray into express logistics and first and last mile logistics[10]

Services

Multimodal Transport Operations (MTO)

Allcargo's MTO service comprises NVOCC operations related to LCL consolidation and FCL activities globally, through its wholly owned subsidiary ECU Line (based in Belgium). Initially Allcargo entered the business of LCL consolidation as agents of ECU Line. With an international network across 89 countries and 189 own offices, the division provides direct export/import and multicity consolidation services.[21]

Container Freight Stations(CFS) and Inland Container Depots (ICD)

Allcargo commenced CFS operations in 2003 at JNPT (near Mumbai). At present it operates in all four CFSs (two at JNPT and one each in Chennai and Mundra-Gujarat). In 2009 Allcargo entered the business of Inland Container Depots (ICD)s. Its first ICD was at Kheda-Pithampur near Indore in the state of Madhya Pradesh, in a joint venture with Hind Terminals (part of the Samsara Group), with Allcargo's stake at 51%. Its second ICD was started at Dadri in the national capital region, in a joint venture with Container Corporation of India (CONCOR), with Allcargo's stake at 51%. Its services comprise export/import handling, LCL shipments, bonded/open warehousing, first/last mile transportation, maintenance and repair of dry container, reefer monitoring and hazardous material handling.

Project and engineering

Specializes in managing end-to-end project logistics, from planning to movement of project cargo, out of gauge / over dimensional cargo, over-weight consignments on turnkey and door-to-door basis, route surveys and multimodal/location transportation. The service also includes a fleet of over 1,000 equipment and specialized vehicles. Complete range of cranes (crawler, telescopic, truck lattice and all-terrain), hydraulic axles and self-propelled modular transporters (SPMTs), strand jacks, trailers (low bed, semi low bed and high bed), fork-lifts and reach stackers.[22][23]

Third-party logistics (3PL) and warehousing

Allcargo operates customized warehousing and supply through its own warehouses at Goa, Pithampur (near Indore in the state of Madhya Pradesh), Hosur (in the state of Tamil Nadu) and Bhiwandi (near Mumbai in the state of Maharashtra state). It has land banks in Nagpur, Indore, Hyderabad and Bengaluru of nearly 200 acres.

Logistics Parks

Allcargo Logistics has ventured into this segment.

Express Distribution and First and Last Mile Logistics

Post the strategic acquisition of Gati, Allcargo's capabilities now include surface and air express distribution, supply chain solutions, e-commerce and e-fulfilment, cold chain solutions and inventory supply chain management in addition to its existing ocean and land-side integrated logistics services.

Current shareholding

As on 31 March 2019, promoter and promoter group hold nearly 70.1% of the company's shares, Foreign Portfolio Investors hold 11.06% of the company's shares and the rest is held by a mix of foreign corporate bodies, domestic corporate bodies and general public.

References
  1. "Import Services from Air Freight Forwarder in Vietnam". Allcargo Logistics. Archived from the original on 9 May 2015. Retrieved 11 August 2015.
  2. "Moneycontrol.com". Moneycontrol.com. Retrieved 11 August 2015.
  3. N. K. Kurup (24 June 2013). "Allcargo sees growth potential in Asian market | Business Line". Thehindubusinessline.com. Retrieved 11 August 2015.
  4. "AllCargo Logistics begins corporate recast | Business Line". Thehindubusinessline.com. 29 February 2012. Retrieved 11 August 2015.
  5. "Riding the tide: The Shettys of Allcargo - Business Today- Business News". Businesstoday.intoday.in. 17 April 2011. Retrieved 11 August 2015.
  6. "Investor Relations". allcargologistics.com. Retrieved 31 July 2020.
  7. "Allcargo Logistics Ltd". Business Standard. Retrieved 31 July 2020.
  8. "Allcargo Announces Joint Venture With CCI Logistics". NDTV.com. Retrieved 31 July 2020.
  9. Manoj, P. "GST effect: Allcargo plans logistics and industrial parks". @businessline. Retrieved 31 July 2020.
  10. "Gati to return to profitability next quarter: Allcargo Logistics". The Economic Times. Retrieved 31 July 2020.
  11. "Allcargo Global to demerge two business divisions, buy new vessels - timesofindia-economictimes". Articles.economictimes.indiatimes.com. 2 March 2012. Retrieved 11 August 2015.
  12. "Hindustan Cargo Ltd (Acquired by Allcargo Logistics)". Supply Chain Leaders. Retrieved 11 August 2015.
  13. "Allcargo Global Logistics acquires two Hong Kong firms". The Hindu. 25 February 2011. Retrieved 11 August 2015.
  14. "Postal Ballot Notice" (PDF). Thehindubusinessline.com. Retrieved 11 August 2015.
  15. "Allcargo Global Logistics to demerge two business units". Shippingherald.com. Archived from the original on 30 July 2013. Retrieved 11 August 2015.
  16. "Allcargo Logistics to demerge project division of MHTC Logistics - Yahoo India Finance". In.finance.yahoo.com. 15 February 2012. Retrieved 11 August 2015.
  17. indiainfoline.com. "Allcargo Logistics' board approves merger of MHTC Logistics". Indiainfoline.com. Archived from the original on 30 July 2013. Retrieved 11 August 2015.
  18. P.R. Sanjai (27 September 2013). "Allcargo Logistics buys US firm Econocaribe Consolidators". Livemint. Retrieved 11 August 2015.
  19. "AllCargo Logistics buys Econocaribe Consolidators for close to $50 mln". Business Standard. Retrieved 11 August 2015.
  20. "Allcargo Logistics acquires majority stake in FCL Marine Agencies Rotterdam". Moneycontrol.com. Retrieved 11 August 2015.
  21. "Best Multimodal Transport Operators in India". Allcargo Logistics. Archived from the original on 31 August 2013. Retrieved 11 August 2015.
  22. "Allcargo to set up rail terminal in Hyderabad - timesofindia-economictimes". Articles.economictimes.indiatimes.com. Retrieved 11 August 2015.
  23. "Allcargo Logistics - Exploring value in Heavy Lifting". Nbmcw.com. Archived from the original on 5 July 2013. Retrieved 11 August 2015.
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