Allcargo Logistics Limited , India's largest integrated logistics solutions provider, has received approval from the National Company Law Tribunal (NCLT) Mumbai Bench for its ambitious business restructuring plan. This approval marks a significant milestone in the company's strategic reorganization efforts, which have been in progress for the past four years.

Key Aspects of the Restructuring

The approved Composite Scheme of Arrangement involves several crucial changes to Allcargo's corporate structure:

1. Demerger of International Business: The International Supply Chain business will be demerged into a new listed entity called Allcargo Global Limited.

2. Consolidation of Domestic Operations: The domestic express and contract logistics business, currently under various subsidiaries, will be consolidated under Allcargo Logistics Limited.

3. Shareholder Benefits:

   • Shareholders of Allcargo Logistics will receive shares in both entities on a 1:1 basis.
   • Allcargo Gati shareholders will get 63 shares of Allcargo Logistics for every 10 shares held.

Rationale and Expected Outcomes

The restructuring is designed to achieve several strategic objectives:

• Independent Operations: Both international and domestic businesses will operate independently, allowing for clearer strategic focus and dedicated management oversight.
• Efficient Capital Allocation: The new structure is expected to facilitate more efficient allocation of capital across different business segments.
• Enhanced Shareholder Value: The simplified structure allows shareholders to directly assess and participate in each business segment.
• Synergy Creation: The restructuring aims to create synergies through customer integration in express and contract logistics.

Implementation Process

With the NCLT approval secured, Allcargo Logistics will now proceed with the following steps:

1. Filing the sanctioned scheme with the Registrar of Companies
2. Determining record dates for share allotment
3. Allotting shares as per the approved scheme
4. Listing of the demerged entity, Allcargo Global Limited

Future Outlook

Post-restructuring, the Allcargo Group will have four listed strategic business units:

1. Allcargo Global Limited (International Supply Chain business)
2. Allcargo Logistics Limited (Domestic logistics)
3. Allcargo Terminals Limited (CFS/ICD business)
4. TransIndia Real Estate Limited (Real estate business)

Ravi Jakhar, Group Chief Financial Officer (CFO) and Director - Strategy of Allcargo Logistics Limited, commented on the development, stating, "The restructuring empowers our flagship businesses with strategic independence, while creating synergies through customer integration in express and contract logistics, and direct shareholding in operating entities. It establishes clear financial accountability with leadership team focused on growth, returns, and a digital-first approach."

This corporate action represents a significant step for Allcargo Logistics, potentially positioning the company for more focused growth and enhanced value creation for its stakeholders in the evolving logistics landscape.

Allcargo Logistics Limited has announced a significant corporate restructuring move, as the National Company Law Tribunal (NCLT) Mumbai Bench sanctioned a Composite Scheme of Arrangement involving the company and its subsidiaries on October 10, 2025.

Key Details of the Arrangement

The sanctioned scheme involves multiple entities within the Allcargo group:

The arrangement encompasses mergers, demergers, and restructuring under Sections 230 to 232 of the Companies Act, 2013. This move is expected to streamline operations and potentially enhance synergies within the Allcargo group.

Regulatory Compliance and Next Steps

Allcargo Logistics has duly informed the stock exchanges about this development, adhering to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company is currently awaiting the certified copy of the NCLT order along with the sanctioned scheme.

In its communication to the stock exchanges, Allcargo Logistics stated that once received, the certified copy of the order and the sanctioned scheme will be uploaded on the company's official website ( www.allcargologistics.com ) for public access.

Implications and Outlook

While the specific details of how this arrangement will impact the company's operations are yet to be disclosed, such corporate actions often aim at improving operational efficiency, consolidating resources, and creating more focused business units. Shareholders and market participants will likely be keen to analyze the full implications of this restructuring once the complete details are made available.

As this development unfolds, it will be crucial to monitor how Allcargo Logistics implements this sanctioned scheme and what strategic benefits it may bring to the company and its various subsidiaries in the logistics and supply chain sector.

Investors and stakeholders are advised to keep an eye on further announcements from the company for a more comprehensive understanding of this corporate action and its potential impact on the group's future performance and structure.