AVG Logistics Limited has announced a strategic partnership with Nestlé India Limited and Ashok Leyland Limited focused on green supply chain transformation. The collaboration represents a significant milestone in sustainable logistics operations and environmental responsibility through the deployment of 50 CNG trucks for green corridor operations.

Partnership Overview

The strategic alliance involves establishing a dedicated green corridor for Nestlé India operations using CNG-powered vehicles. This initiative marks a transformative step in the logistics sector, aiming to reduce market dependency while enhancing operational cost efficiency and supply chain strength.

Environmental Impact and Operational Benefits

The CNG-powered vehicle fleet is projected to deliver substantial environmental benefits through reduced carbon emissions. The initiative demonstrates the synergy between operational efficiency and carbon mitigation while strengthening supply chain resilience.

Key Personnel and Strategic Support

AVG Logistics has acknowledged instrumental support from key personnel across partner organizations. From Nestlé India, the company recognized Varun Gupta, Supply Chain Director for Nestlé SAR, and Balbir S Bhalla, Head of Physical Logistics for SAR, for their continuous guidance and support.

The partnership with Ashok Leyland was facilitated through the valuable contribution of Arindam Das, Zonal Manager, who enabled cleaner and more reliable transportation solutions for the green corridor initiative.

Strategic Objectives and Future Outlook

The partnership aligns with AVG Logistics' commitment to integrating sustainable innovation into value chains. The company aims to leverage cost-effective transportation models, technology-led logistics solutions, and green logistics strategies to deliver measurable value to partners.

The collaboration is expected to facilitate innovative supply chain solutions and contribute to improved operational performance. The partnership emphasizes the integration of business objectives with environmental goals, positioning AVG Logistics for sustainable growth and enhanced supply chain strength in the logistics sector.

AVG Logistics Limited has entered into a strategic memorandum of understanding (MoU) with Baidyanath LNG Private Limited to accelerate the adoption of liquefied natural gas-powered transportation solutions across India's industrial landscape. The partnership represents a significant step towards sustainable logistics operations in key sectors.

Partnership Scope and Objectives

The collaboration targets major industrial segments including steel and metals, fast-moving consumer goods (FMCG), cement, and other high-volume logistics operations. The partnership aims to establish a comprehensive LNG-powered transportation ecosystem that addresses the growing demand for cleaner fuel alternatives in the logistics sector.

Roles and Responsibilities

Under the memorandum of understanding, both companies will contribute specific expertise and resources to develop the LNG transportation infrastructure. Baidyanath LNG Private Limited will provide dedicated LNG-powered fleets and ensure access to LNG filling stations across key routes. The company will also work closely with AVG Logistics to develop customised LNG solutions tailored to specific transportation requirements.

AVG Logistics will leverage its existing customer relationships and market presence to promote LNG as a viable alternative fuel option. The company plans to offer comprehensive LNG-powered logistics solutions to both existing and prospective customers across its operational network.

Strategic Benefits and Expected Outcomes

Sanjay Gupta, Managing Director and Chief Executive Officer of AVG Logistics, highlighted that the collaboration aligns with the company's focus on sustainable and profitable growth. The integration of LNG-powered fleets is expected to deliver multiple operational benefits:

Infrastructure Development Plans

Vaddadi Subbarao, Director of Baidyanath LNG, emphasised that the agreement supports the company's expansion plans for LNG refuelling infrastructure across India. The partnership will enable uninterrupted LNG supply along key trucking routes, facilitating the broader shift towards cleaner heavy-duty transportation solutions.

The infrastructure development will focus on establishing strategic LNG filling stations that ensure seamless operations for commercial vehicles operating on major industrial corridors. This approach aims to address one of the primary challenges in LNG adoption – the availability of reliable refuelling infrastructure.

The MoU between AVG Logistics and Baidyanath LNG is expected to accelerate LNG-powered transportation adoption across various industrial sectors, including steel, FMCG, and cement logistics. This partnership marks a significant step towards more sustainable and efficient logistics operations in India's industrial landscape.