Allcargo Gati Limited , a leading player in the Indian logistics sector, has unveiled an ambitious five-year strategic plan aimed at driving substantial growth and profitability through 2030. The company recently held an Analyst Day presentation, outlining its vision for the future and detailing its transformation initiatives.

Financial Performance and Transformation

Despite flat revenue growth over the past five years, Allcargo Gati has made significant strides in improving its profitability metrics. The company reported revenue from operations of ₹1,708.00 crores, with notable improvements in key financial indicators:

• EBITDA growth: 165% CAGR
• ROCE improvement: Approximately 200 basis points
• Debt repayment: ₹250.00 crores
• Investment in transformation initiatives: Over ₹900.00 crores

The company has maintained a net cash position, showcasing its financial resilience and commitment to a lean balance sheet.

Strategic Growth Targets

Looking ahead, Allcargo Gati has set ambitious targets for its future performance:

• Combined revenue growth: 12-14% CAGR through 2030
• Projected revenues: ₹1,961.00 crores by fiscal 2028
• EBITDA margins: Improvement to 20%+ by fiscal 2030
• ROCE: Enhancement to 21%+ by fiscal 2030

The strategy focuses on two key business segments:

1. B2B Express Logistics
2. Supply Chain Services

Operational Strengths and Growth Drivers

Allcargo Gati boasts an extensive operational network, positioning it well for future growth:

• 700+ facilities covering 100% serviceable pin-codes in India
• Over 9,000 trucks in its fleet
• Strategic airline partnerships

Key growth drivers identified by the company include:

• Expansion in e-commerce
• Increased presence in automotive sector
• Growth in healthcare and chemical sectors
• Investments in AI-enabled platforms and digital tools

Corporate Governance and Sustainability

The company has also emphasized its commitment to corporate governance and sustainability:

• Zero non-compliance with regulations year-on-year
• 100% suppliers to be ESG-screened by 2040
• Targeting 100% carbon neutrality by 2040
• 13% energy currently sourced from renewables
• Introduction of 500+ EVs and CNG last-mile trucks

Management's Perspective

Ketan Kulkarni, Managing Director & CEO of Allcargo Gati, stated, "Our strategy focuses on delivering results above market growth and increasing market share by targeting both macro indicators and high-performance micro indicators. We are committed to realizing the company's potential for future growth and expansion in the attractive logistics sector."

Conclusion

As Allcargo Gati embarks on this ambitious journey, the company appears well-positioned to capitalize on the growing logistics market in India. With its focus on technology-driven solutions, operational efficiency, and strategic growth initiatives, the company aims to transform itself into a domestic logistics leader in the coming years.

Investors and industry observers will be keenly watching Allcargo Gati's progress as it works towards achieving its ambitious targets in an increasingly competitive and dynamic logistics landscape.

The National Company Law Tribunal (NCLT), Mumbai Bench, has reserved its orders on the Composite Scheme of Arrangement involving Allcargo Gati Limited (formerly known as Gati Limited) and its related companies. This development marks a significant step in the corporate restructuring process for these logistics companies.

Details of the Arrangement

The Composite Scheme of Arrangement is being processed under Sections 230 to 232 of the Companies Act, 2013. It involves multiple entities:

• Allcargo Logistics Limited (Demerged Company and Transferee Company 2)
• Allcargo Supply Chain Private Limited (Transferor Company 1), a wholly-owned subsidiary of Allcargo Logistics
• Gati Express & Supply Chain Private Limited (Transferor Company 2)
• Allcargo Gati Limited (Transferee Company 1 and Transferor Company 3)
• Allcargo Global Limited (Resulting Company), formerly known as Allcargo Worldwide Limited and Allcargo Ecu Limited, a wholly-owned subsidiary of Allcargo Logistics

Regulatory Compliance

Allcargo Gati Limited, in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, has informed the stock exchanges about this development.

Next Steps

With the NCLT reserving its orders, the logistics industry and investors will be keenly awaiting the final decision on this corporate restructuring. The outcome of this arrangement could potentially reshape the operational structure of these companies within the Allcargo group.

Shekhar R Singh, Company Secretary of Allcargo Gati Limited, confirmed this development in an official communication to the stock exchanges. The company has also made this information available on its website at www.allcargogati.com .

Investors and stakeholders of Allcargo Gati Limited will be monitoring the situation closely as the NCLT's decision could have significant implications for the company's future operations and market position in the logistics sector.