Allcargo Logistics appointed turnaround expert Alvarez and Marsal to revive Gati and to integrate and improve the best practices between the two companies, in which it acquired 46.83% in March 2020. Allcargo Chairman Shashi Kiran Shetty expects the integration of the two companies over the next 16 months.
Chairman Shashi Kiran Shetty also expects a brighter future for the Hyderabad-based subsidiary as it is awaiting a tax write-back of Rs* 500-600m through the ongoing dispute settlement scheme and thus close the fiscal year with a healthy bottomline.
“We’ve applied for the Vivad Se Vishwas scheme, under which the government is encouraging taxpayers to end their disputes with taxmen through a negotiated settlement. Gati has a disputed tax claim of Rs 150-160bn and we hope to settle it at half… and thus will be able to write back at least Rs 500-600m by December,” Shetty told PTI.
“While April was really bad, from mid-May, the situation began to improve and so far June seems to be normal. But Mumbai being But Mumbai being still shuttered is a big drawback,” Shetty added.
Additionally, Allcargo has appointed McKinsey & Co to chart out a path for the new normal post the Covid-19 crisis, which will include greater dependence on digital strategy, among other things.
*Rs 85.5 = €1.00 / Rs 76 = $1.00
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