Allcargo Logistics


Allcargo Logistics Ltd, part of the Avvashya Group, is a logistics firm headquartered in India. Its services comprise global multimodal transport operations, pan India container freight stations, inland container depots, third-party logistics, warehousing, contract logistics and logistics parks. The company operates across more than 160 countries through more than 300 offices. As one of India's largest publicly listed logistics companies, Allcargo Logistics has a consolidated revenue of INR 7346 Cr as of March 2020.

History

In 1993, Chairman of Allcargo Logistics Mr. Shashi Kiran Shetty founded Allcargo Logistics as a cargo handling operator at Mumbai port. Initially Allcargo Logistics was a shipping agency house and provided freight forwarding services.
In 1995, ECU Line, an Antwerp-based non-vessel operating common carrier, appointed Allcargo as their India agent. In 2003, the company started its first container freight station at the largest Indian port, Jawaharlal Nehru Port Trust in Mumbai. In 2007, it started two new CFSs at Chennai and Mundra ports followed by a second CFS at JNPT in the year 2012. In 2006, private equity firm New Vernon Capital Fund acquired 6.42% stake in Allcargo. In 2008, Blackstone GPV Capital Partners picked up a 6% stake in the company which was later increased to 14.99% in September 2009 by converting warrants worth US$23 million which the global private equity fund subscribed in February 2008.
In 2013, Allcargo Logistics acquired US based Econocaribe Consolidators and a controlling stake in Netherlands-based logistics company FCL Marine Rotterdam through its wholly owned arm Ecuhold NV.
Allcargo Logistics rebranded all its international acquisitions as ECU Worldwide on 2 May 2016.
In 2016, Allcargo Logistics also expanded into Contract Logistics with Avvashya CCI and offers customized end-to-end solutions for auto, pharma, chemical, e-commerce and spare part logistics.
In keeping with the increasing demand for warehousing and government policy changes, Allcargo Logistics decided to monetize its existing land banks and foray into logistics and industrial parks to provide world-class warehousing under Allcargo Logistics Industrial Parks Private Limited in 2018.
Allcargo Logistics acquired controlling stake in Hyderabad-based Gati Ltd. in 2020.
Today, the group is a US$1.2 billion organization, and one of India's leading business conglomerates.

Acquisitions

ECU Line : Allcargo's first acquisition was of the Belgium-based ECU Line, spanning three stages from 2005-06. Allcargo acquired 33.8% stake in ECU Line in June 2005, increased its stake to 49.9% in Jan 2006 with an option to increase the stake further, and acquired the remainder in Jun 2006, making Allcargo Logistics one of the largest NVOCC in the world. ECU Line's revenues at the time of the acquisition were 4.3 times the revenues of Allcargo Logistics.

Hindustan Cargo Ltd. : A former subsidiary of travel and forex major Thomas Cook, Hindustan Cargo is predominantly engaged in air freight forwarding and custom clearance. The company was acquired by Allcargo Logistics in 2006 for an undisclosed amount.
Hong Kong-based Companies :Allcargo acquired two Hong Kong-based companies with operations in China for US$22 million.
MHTC Logistics Pvt. Ltd : Allcargo acquired 100% equity in MHTC Logistics Private Limited, engaged in project logistics and freight forwarding.
Econocaribe Consolidators: Allcargo through its wholly owned subsidiary, ECU-LINE acquired Econocaribe Consolidators, a US based logistics company. Econocaribe specializes in freight consolidation and FCL services to Latin America, the Caribbean, Europe, the Mediterranean, the Middle East, Africa and Asia. It also offers import LCL/FCL transportation services from around the world to the United States and Puerto Rico.
FCL Marine Agencies: Allcargo Logistics through its step down wholly owned subsidiary company Ecuhold NV acquired majority stake in FCL Marine Agencies Rotterdam, a Netherlands-based Logistics company.
ECU Worldwide : ECU-Line globally rebranded as ECU Worldwide
Avvashya CCI : Expansion into customised auto, chemical, pharma and e-commerce sectors with Avvashya CCI for Contract Logistics
Gati : Acquired controlling stake in Hyderabad-based Gati Ltd., India’s premier express distribution company marking Allcargo’s foray into express logistics and first and last mile logistics

Services

Multimodal Transport Operations
Allcargo's MTO service comprises NVOCC operations related to LCL consolidation and FCL activities globally, through its wholly owned subsidiary ECU Line. Initially Allcargo entered the business of LCL consolidation as agents of ECU Line. With an international network across 89 countries and 189 own offices, the division provides direct export/import and multicity consolidation services.
Container Freight Stations and Inland Container Depots
Allcargo commenced CFS operations in 2003 at JNPT. At present it operates in all four CFSs.
In 2009 Allcargo entered the business of Inland Container Depots s. Its first ICD was at Kheda-Pithampur near Indore in the state of Madhya Pradesh, in a joint venture with Hind Terminals, with Allcargo's stake at 51%. Its second ICD was started at Dadri in the national capital region, in a joint venture with Container Corporation of India, with Allcargo's stake at 51%. Its services comprise export/import handling, LCL shipments, bonded/open warehousing, first/last mile transportation, maintenance and repair of dry container, reefer monitoring and hazardous material handling.

Project and engineering

Specializes in managing end-to-end project logistics, from planning to movement of project cargo, out of gauge / over dimensional cargo, over-weight consignments on turnkey and door-to-door basis, route surveys and multimodal/location transportation. The service also includes a fleet of over 1,000 equipment and specialized vehicles. Complete range of cranes, hydraulic axles and self-propelled modular transporters, strand jacks, trailers, fork-lifts and reach stackers.

Third-party logistics (3PL) and warehousing

Allcargo operates customized warehousing and supply through its own warehouses at Goa, Pithampur, Hosur and Bhiwandi. It has land banks in Nagpur, Indore, Hyderabad and Bengaluru of nearly 200 acres.

Logistics Parks

In keeping with the growing demand for logistics parks and Grade-A warehouses, Allcargo Logistics has ventured into this segment to offer state-of-the-art warehousing and industrial real-estate solutions. With a number of strategically located logistics parks across India, all in varied stages of development, Allcargo is expanding its nationwide warehousing footprint and tapping into key industrial and consumption centres. Characterised by innovative engineering, quality infrastructure and amenities, compliance with stringent health and safety standards, the warehouses ensure high operational efficiency and enable customers to minimise logistics overheads.

Express Distribution and First and Last Mile Logistics

Post the strategic acquisition of Gati, Allcargo’s capabilities now include surface and air express distribution, supply chain solutions, e-commerce and e-fulfilment, cold chain solutions and inventory supply chain management in addition to its existing ocean and land-side integrated logistics services.

Current shareholding

As on 31 March 2019, promoter and promoter group hold nearly 70.1% of the company's shares, Foreign Portfolio Investors hold 11.06% of the company’s shares and the rest is held by a mix of foreign corporate bodies, domestic corporate bodies and general public.

Awards and recognition