Latest news with #AllcargoGroup
The Hindu
26-07-2025
- Business
- The Hindu
‘Tariff risks, geopolitical shifts call for supply chain reset'
As the world is grappling to deal with geopolitical realignments and tariff risks leading to global supply chain disruptions, a new order is emerging in which India would gain from this realignment, says Shashi Kiran Shetty, Founder & Chairman, Allcargo Group, one of India's biggest logistics firms having operations in 180 countries in an interview. Edited excerpts: How do you view the prevailing global supply chain scenario on the back of tariff war and geopolitical realignments? The global supply chain landscape remains volatile on the back of ongoing geopolitical shifts and economic uncertainties, particularly in Europe. The tariff war had posed a significant threat to trade flows, but recent signs of de-escalation, especially the progress in U.S.-China trade talks offer some respite. Nevertheless, the persistent disruption is setting the stage for supply chain diversification. Companies are reassessing their sourcing strategies and India stands to gain from this realignment. Tariff risks, changing global trade dynamics and geopolitical realignments call for a supply chain reset. Having said that, despite volatility, there are early signs of stabilisation, offering cautious optimism for stable global trade dynamics. Recently you had undertaken restructuring of your group. What is the rationale and your growth outlook for FY26? The rationale for the restructuring is to strengthen our flagship businesses with strategic independence and operational synergies apart from sharp management focus, financial flexibility, investment choices, and value-unlocking opportunity. After the successful restructuring of Allcargo Terminals Ltd and TransIndia Real Estate Ltd., both are pursuing their growth objectives independently. Thanks to a simplified structure and sharp business focus, we are now well-positioned to further streamline and accelerate our growth initiatives. In the next phase of restructuring, our express distribution business and contract logistics will come under a single entity after the merger, and the international supply chain business will be demerged and listed into a separate entity. Our businesses are poised to benefit with clear strategy & business plan to execute global opportunities. For FY26, we aim to boost our businesses through market share and strengthen our product offerings to achieve greater brand value, customer stickiness leading to higher profitability. Despite geopolitical uncertainty, we are focussing on growing our share in strategic markets for our international supply chain business, thus strengthening our global market leadership in LCL (Less than Container Load) consolidation business. On the domestic business side, the successful transformation of Allcargo Gati has led to enhanced efficiency and improved yields and these two factors will further accelerate the market share growth for us in the express logistics space. In addition, we are confident that the growth momentum will continue for our contract logistics business on the back of GDP growth, rising consumer spending, and a growing preference among large and mid-sized companies to partner with organized supply chain players like us. In addition, the growth of e-commerce and quick commerce sectors is expected to further drive the demand growth. The acquisition of Gati marked a major diversification into express distribution. What were the challenges in turning around Gati, and what is the path for long-term profitability? Well, when we initiated the process to acquire Gati in 2019, the company was grappling with financial and operational inefficiencies. However, Gati is a strategic acquisition for us, and we have a firm belief in its potential in regaining a leadership position in the domestic express distribution space. After acquiring the controlling stake in Gati in 2020, we focussed on a strategic overhaul which includes technology upgradation and cost optimisation. Our core focus areas included infrastructure, digitisation, sales acceleration, talent pool creation and operations. The goal was to align the company with the Group's common culture and values. By strengthening the leadership team, reducing debt by divesting non-core business, developing cloud-based Gati Enterprise Management System or GEMS 2.0, rationalising resources, expanding shipment hubs and adopting sustainable mobility, we have created a path to sustained growth for Allcargo Gati. We expect to see a significant boost to profit, going forward, on the back of steady volume growth driven by the combined entity of express and contract logistics, post the next phase of restructuring. You have built Allcargo from the ground up and shaped its growth. How are you preparing the next generation of leadership, and what legacy do you hope to leave behind? Developing the next generation of leadership is an integral part of our institution building process. So, I always focus on developing a strong leadership pipeline by on-boarding experienced professionals with proven track-record and grooming in-house talents with leadership potential professional development. At the same time, we have roped in diverse talent from outside the logistics industry. There are ample instances of young professionals joining the Group and eventually growing to lead various important global markets. We continue to invest in leadership development across levels. A strong example of our next-generation leadership in action is the team of young data scientists and analysts, led by Executive Director and Chief Digital Officer Vaishnav Shetty, who also spearheads ECU Worldwide's digital booking platform, ECU360. I am a firm believer of industry-academia collaboration and at IIM Mumbai with which I am associated as the Chairman of the Society and Board of Governors (BoG), we have created a talent nurturing ecosystem to create a robust talent pipeline for the logistics industry. I want to build an institution that is synonymous with best-in-class service, innovation, and integrity. Building a Multinational out of India requires a differentiated approach. What were your leadership strategies? One needs to adopt a nuanced and adaptive leadership approach to build a global organisation. One of the most critical aspects of that leadership strategy is understanding and respecting cultural differences. Each market has its own expectations, business practices, mindset and engagement styles. We have integrated this understanding into our approach with a strong emphasis on the systems and processes. At the end of the day, leading a multinational company is about balancing global integration with local relevance and building cohesive systems that empower regional teams to operate while remaining attuned to local culture. This vision is brought to life by a strong and collaborative leadership team. Adarsh Hegde, Managing Director at ECU Worldwide, plays a pivotal role in shaping our global operations. What are the company's investment and fund-raising plans? At this point in time, we do not have any immediate plans for fundraising or new investments. However, we will continue to assess our capital needs and review funding requirements as part of our strategic planning. We will continue to explore various funding options for our listed companies guided by business objectives i.e. to invest in new projects or to de-leverage. However, the focus at present is entirely on driving organic growth. What is your Net Zero goal and how are you implementing ESG strategies? Our ESG is driven by a strong commitment to sustainability, community empowerment, and corporate governance. On the sustainability side, we have set a goal to achieve carbon neutrality across our operations by 2040. To attain that objective and build a sustainable supply chain, we are investing in renewable energy adoption for our facilities and introducing emissions reduction norms for our shipping and transportation partners. We are also shifting from fossil fuel-based fleets to cleaner, alternate fuel vehicles. Our CSR arm, Avashya Foundation, has touched the lives of nearly 40,000 people focusing on six key pillars - Health, Education, Environment, Women's Empowerment, Sports, and Disaster Relief. Our initiatives are in line with the UN Sustainable Development Goals and cover aspects like diversity, equity and inclusion, occupational health and safety, and community development. One of our recent CSR initiatives, Sawangi Canal Project in Maharashtra's Vidarbha region, addressed water scarcity through rainwater harvesting and groundwater recharge. This initiative has created over 100,000 cubic metres of surface water storage, enriched 400 hectares of farmland, supported over 1,200 farmers directly and boosted livelihood for over 4,000 people.
CNBC
26-05-2025
- Business
- CNBC
Indian logistics company AllCargo Group prepared for both 'ramp-ups' and 'ramp-downs' in trade
Ravi Jakhar, Allcargo Group CFO & Director for Strategy, explains how the Indian logistics company is handling the week-to-week trade volatility. He says Europe - a big market for them - will likely remain subdued for a while. He also talks about the listing of its international business - which will automatically happen when that part the business is demerged in the coming months.
Business Standard
15-05-2025
- Business
- Business Standard
Allcargo Logistics appoints Ravi Jhakar as CFO
Allcargo Logistics said that its board has appointed Ravi Jakhar as the chief financial officer (CFO) with effect from 19 May 2025. Deepal Shah has resigned from the position of CFO with effect from closing business hours of 16th May 2025. Ravi Jhakar currently serving as designated as Chief Strategy Officer and further, he will be re-designated as director strategy & group CFO. Ravi Jhakar has pursued from IIT BHU and attended a course on entrepreneurship at Harvard Business School. He currently leads the overall strategy for the Allcargo Group and also oversees the finance and business functions on behalf of the board in Allcargos flagship international business ECU Worldwide. He oversees the Latin America region alongside various Joint Ventures the group in Scandinavia, Thailand, Turkey, Peru. He manages the equity fund raising activities for the group, Investor Relationship management and led some of the M&A for the group, like Nordicon, FairTrade, few others. He is on the board of Allcargo Gati, Allcargo Supply Chain and various subsidiaries across the world. Allcargo Logistics, an Allcargo Group company, it is the global market leader in less than container load (LCL) consolidation business operating under ECU Worldwide network. The companys consolidated net profit declined 11.5% to Rs 9.69 crore despite of a 27.8% jump in net sales to Rs 4105.74 crore in Q3 FY25 over Q3 FY24. The counter rallied 3.43% to end at Rs 31.02 on the BSE.
