Allcargo Logistics Limited has announced a significant expansion of its domestic distribution network with the launch of Allcargo Extended Reach (AER), marking a major milestone in the company's mission to strengthen nationwide accessibility and enhance service reliability across India. The initiative represents an upgraded and rebranded version of its earlier Extra Serviceable Stations (ESS) network.

Network Expansion Details

The AER initiative has achieved comprehensive coverage across India, with the company now serving 100% of available PIN codes in the country. The expansion demonstrates substantial growth in the company's operational reach and service capabilities.

The expanded network now enables seamless access to some of the country's most difficult-to-reach areas, including Port Blair, Ladakh, Jammu Kashmir, the Western Ghats, and the remote Northeastern belt. This enhancement substantially strengthens last-mile delivery capabilities and enables customers across industries to tap into new markets with improved consistency and predictability.

Strategic Infrastructure Improvements

Allcargo Logistics has undertaken a major operational redesign to support the AER network expansion. The company has implemented several technological and infrastructure enhancements to optimize service delivery:

• AI-driven planning tools for enhanced operational efficiency
• Intelligent routing systems for optimized delivery paths
• Fully digitalized workflows across the entire network
• Expanded and optimized hubs and line-haul routes
• Enhanced on-ground operational infrastructure

These improvements are designed to deliver faster, more reliable, and geographically comprehensive logistics services across the country, particularly benefiting MSMEs, digital-first businesses, and enterprises seeking dependable logistics solutions.

Market Positioning and Coverage

The expansion aligns with India's evolving logistics landscape, where demand is rapidly spreading beyond major metros to Tier II, III, V, and remote regions that are becoming high-growth consumption hubs. Ketan Kulkarni, Managing Director and Chief Executive Officer of Allcargo Logistics, emphasized that AER marks a new chapter in the company's domestic logistics journey, unlocking unprecedented speed, reliability, and market access for customers.

The initiative positions the company to support India's consumption-led growth and strengthens its mission to become India's most trusted logistics partner. The expanded footprint enables the company to power India's next phase of supply chain transformation while deepening support for the country's accelerating shift toward a more formal, digitally enabled economy.

Corporate Structure and Services

Following the composite Scheme of Arrangement, Allcargo Logistics Limited has merged its Domestic Supply Chain business and demerged its International Supply Chain (ISC) business as Allcargo Global. The domestic supply chain business houses express distribution and consultative logistics services.

The company's key business verticals include Express Distribution, Air Freight, E-commerce Logistics, First and Last Mile Delivery, along with specialized B2C services such as Laabh, Bike Express, and Student Express. These services are designed to meet the evolving needs of diverse customer segments across India's growing formal and digital economy.

With the launch of the Allcargo Extended Reach (AER) network, Allcargo Logistics has significantly expanded its coverage from 21,000 to over 32,000 PIN codes, doubling its direct serviceable locations to over 10,000. This expansion reinforces the company's commitment to providing comprehensive logistics solutions across India.

Allcargo Logistics Limited has provided crucial guidance to its shareholders regarding the calculation of cost acquisition for equity shares following a significant corporate restructuring. This move comes in the wake of the National Company Law Tribunal's approval of the company's composite scheme of arrangement on October 10, 2025.

Key Highlights of the Demerger Scheme

• Approval Date: October 10, 2025
• Appointed Date for Demerger: October 1, 2023
• Record Date: November 12, 2025

Cost Allocation Breakdown

The demerger allocates the cost of acquisition between Allcargo Logistics and the resulting company, Allcargo Global Limited, as follows:

This allocation is based on the net book value of assets as of the appointed date (October 1, 2023).

Implications for Shareholders

1. Share Allotment: Shareholders of Allcargo Logistics will receive one equity share of ₹2 each in Allcargo Global Limited for every one fully paid-up equity share of ₹2 held in Allcargo Logistics.

2. Tax Neutrality: The demerger satisfies conditions under Section 2(19AA) of the Income-tax Act, 1961, making it tax-neutral for shareholders under Section 47(vid).

3. Cost of Acquisition: For capital gains calculations, 12.06% of the original cost of Allcargo Logistics shares should be allocated to Allcargo Global Limited shares.

4. Acquisition Date: The acquisition date of new shares in Allcargo Global Limited will be considered the same as the original Allcargo Logistics shares for tax purposes.

Financial Snapshot

While the demerger is a significant event, it's important to consider Allcargo Logistics' overall financial position. As of March 2025:

The company has shown resilience with a slight increase in total assets despite challenging market conditions.

Conclusion

This corporate action represents a strategic move by Allcargo Logistics to optimize its business structure. Shareholders are advised to consult with tax professionals to understand the specific implications on their investments. The company's proactive communication on cost allocation demonstrates its commitment to transparency and shareholder interests amidst this significant restructuring.

Note: All financial figures are based on the latest available data as of March 2025.