Aligning the company’s strategy of focusing on high growth opportunities in express and contract logistics business in India, the leading logistics company has successfully acquired a 30 percent stake, or 1.50 lakh shares, worth Rs 406.71 crore in Gati-Kintetsu Express (GKEPL). This 30 percent stake accounts for 26 percent of KWE-Kintetsu World Express (S) and 4 percent of KWE-Kintetsu Express India.
Gati, Allcargo’s subsidiary, already holds a 70 per cent stake in GKEPL, leading it to 100 per cent with this acquisition by Allcargo, further facilitating a simplified corporate structure. The company also recently acquired some minority stakes in Allcargo Supply Chain, its partner.
Telling about the acquisition, Shashi Kiran Shetty, Founder & Chairman, Allcargo Group, said, “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 our 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 the group’s position in the domestic logistics space.”