AVG Logistics Limited , a prominent multimodal logistics solutions provider in India, has announced a significant expansion into the liquid chemical transportation segment. The company has secured a ₹20 crore term loan facility from a leading Non-Banking Financial Company (NBFC) to support this strategic move.

Funding Allocation

The newly acquired funds will be utilized for two primary purposes:

1. Working capital requirements
2. Capital expenditure, specifically for:
   • Importing ISO tank containers
   • Fleet expansion

Expansion into Liquid Chemical Transportation

AVG Logistics is venturing into the specialized domain of liquid chemical transportation, which the company describes as a rapidly growing segment within the Indian logistics industry. This move aligns with AVG's vision of offering sustainable and reliable logistics solutions to India's top businesses.

Integration with Existing Services

The company plans to integrate liquid chemical transport through ISO tank containers with its existing rail-based logistics services. This integration aims to cater to industries such as:

• Chemicals
• Oils
• Other liquid commodities

Environmental Impact

By combining ISO tank containers with rail-based logistics, AVG Logistics is contributing to more environmentally responsible supply chain practices. This approach is expected to reduce carbon emissions and promote greener transportation methods.

Management's Perspective

Sanjay Gupta, Managing Director of AVG Logistics Limited, commented on the development:

"This strategic initiative marks a new chapter in our commitment to deliver innovative, efficient, and sustainable bulk liquid transport solutions to customers across industry. By integrating ISO tank containers into our logistics portfolio, we are expanding our capabilities and also strengthening our role as a reliable partner in this niche segment."

Company Overview

AVG Logistics Limited, founded in 2010, has established itself as a trusted logistics partner for businesses across India. The company offers a wide range of services, including:

• Road and rail transportation
• Reefers/cold chain services
• Warehousing
• Third-Party Logistics Services (3PL)

Operational Highlights

• Over 50 fully automated branches pan-India
• 3000+ fleet of hired & owned vehicles
• 705,000 sq. ft. of warehousing space
• 600+ workforce of dedicated professionals

Financial Performance

AVG Logistics reported the following financial metrics:

Client Portfolio

AVG Logistics serves a diverse range of clients, including major corporations such as:

• Nestle
• Hindustan Unilever Limited (HUL)
• ITC
• TATA Steel
• Coca Cola

This strategic expansion into liquid chemical transportation is expected to further diversify AVG Logistics' service offerings and strengthen its position in the Indian logistics market.

AVG Logistics , a prominent player in the logistics sector, has made a significant move to bolster its future growth plans. The company has successfully obtained banking facilities amounting to ₹112.00 crore to fund its capital expenditure requirements for the fiscal year 2025/26.

Strategic Investment for Future Growth

The secured banking facilities represent a strategic investment for AVG Logistics, aimed at enhancing its operational capabilities and market position. This substantial financial backing is expected to play a crucial role in the company's expansion plans and technological advancements.

Projected Revenue Impact

AVG Logistics has set ambitious targets for the utilization of these funds. The company anticipates that this investment will generate approximately ₹100.00 crore in annual revenue. This projection underscores the potential impact of the planned capital expenditure on the company's financial performance.

Implications for Shareholders and Market Position

The successful securing of these banking facilities may be viewed positively by shareholders and market analysts. It demonstrates the company's ability to access significant funding for growth initiatives, which could potentially strengthen its competitive position in the logistics industry.

Looking Ahead

As AVG Logistics prepares to deploy these funds in the coming fiscal year, stakeholders will be keen to observe how effectively the company utilizes this capital to drive growth and enhance shareholder value. The logistics sector continues to be a critical component of the economy, and strategic investments like these could play a pivotal role in shaping the industry landscape.

Investors and industry observers will likely monitor AVG Logistics' progress closely as it implements its capital expenditure plans and works towards achieving its projected revenue targets in the fiscal year 2025/26.