Allcargo Logistics has entered the express market with its acquisition of a majority stake in Gati, an express and supply chain solutions player in India. The LCL-focused provider has added another domestic service to its portfolio by entering a segment which has been growing exponentially, as it hopes that Gati’s domestic express transportation segment will allow the company to offer end-to-end transportation capabilities to customers.
To date, Gati has a presence in 727 Indian districts and a service network reaching out to 19,000 PIN codes across the country, as well as a wide-ranging customer base that comprises of top Indian industry leaders, e-commerce players and SMEs. The company had been looking for a strategic partner to help it to further expand and grow and there is hope that as a result of the deal, Gati will be able to leverage Allcargo’s global network to provide time and cost-efficient solutions to clients.
Allcargo said that through this deal it hopes to tap into the growing Indian transportation and logistics market which is expected to further consolidate owing to the digital push and reforms pursued by the Indian government. Furthermore, Allcargo hopes that Gati’s partnership will strengthen its reach within India and supplement the company’s warehousing and contract logistics services.
“The rise in cross-border and domestic e-commerce has opened up new markets for traditional express players such as Gati. With Allcargo’s strength in the ocean transportation business and Gati’s expertise in land and air transportation, we are now in a position to offer our customers many multimodal solutions,” stated Mr. Shashi Kiran Shetty, Chairman, Allcargo Logistics Ltd.
“With this deal with Allcargo Logistics, we have entered a new era of consolidation in the domestic express logistics space,” stated Mr. Bala Aghoramurthy, Deputy Managing Director, Gati Ltd.
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