Allcargo Logistics & Allcargo Gati Boards accepts Business Restructuring Scheme

The Boards of Allcargo Logistics, a leading logistics company in India, and Allcargo Gati, a limited logistics company situated in Hyderabad, have approved the combined scheme of planning for restructuring the business system under Allcargo and Allcargo Gati.

The International Supply Chain (ISC) business will be divided into a separate firm called Allcargo ECU through the use of the composite system. This would cover the foreign subsidiaries owned by ECU Worldwide NV as well as the portion of the ISC business that is based in India. After taking into consideration regulatory files, NCLT permission, ROC filings, and other relevant activities, the plan is anticipated to be implemented in ten to twelve months.

This will enable the company to further drive cost efficiency by consolidating its infrastructure footprint and combining management structure across both businesses.

After the ISC demerger, the emerging company, Allcargo Logistics, would include both express and contract logistics businesses. Through customer integration in express and contract logistics businesses, direct shareholding in operating companies, and operational synergies, Allcargo Group hopes to enable its flagship businesses with both strategic independence and operational synergies.

In the end, Allcargo Group plans to pursue four specified strategic business initiatives. After the ISC company was demerged, AllCargo Terminals, TransIndia Real Estate, and Allcargo ECU were all included. All four of the listed businesses.