Allcargo Logistics acquires 30% stake in Gati-Kintetsu Express for Rs 406.7cr

Allcargo Logistics, an India-based provider of multimodal logistics solutions and part of The Allcargo Group, has concluded the acquisition of a 30% stake in Gati-Kintetsu Express (GKEPL) for INR 406.71 crores.

The acquisition involved the purchase of 1.50 lakh shares, with Allcargo’s subsidiary, Gati, already holding a 70 percent stake in GKEPL. GKEPL is a prominent player in India’s express logistics sector, offering surface express distribution, air express distribution, and supply chain management solutions.

The transaction included the acquisition of 1.3 lakh shares (26 percent) from KWE-Kintetsu World Express (S) and 20,000 shares (4 percent) from KWE Kintetsu Express India.

With this strategic move, Allcargo and Gati now hold a 100 percent stake in GKEPL, signifying complete control and ownership as outlined in the Share Purchase Agreement (SPA) signed earlier in March 2023.

In addition to the GKEPL acquisition, Allcargo has also acquired the minority stake of its partner in the contract logistics business under Allcargo Supply Chain. The company’s contract logistics segment specializes in inventory management and provides third-party supply chain solutions to renowned Indian and international customers across diverse industries such as chemicals, automotive, and e-commerce.

Shashi Kiran Shetty — Allcargo Group Founder and Chairman said: “It has been a fruitful association with KWE. The Share Purchase will offer Allcargo Logistics, along with its subsidiary Gati, full ownership and control and facilitate strategic decision‐making in the company.

“This will help us enhance service delivery capabilities to make further progress and usher in the next phase of growth. Going forward, we expect a stronger synergy between contract logistics and express distribution to further strengthen group’s position in the domestic logistics space.”

These acquisitions align with Allcargo’s focused strategy to capitalize on high-growth opportunities within India’s express and contract logistics sectors, while also streamlining the corporate structure.

By gaining full ownership and control of GKEPL, Allcargo aims to strengthen its service delivery capabilities and drive further growth. The company plans to leverage the synergies between contract logistics and express distribution, solidifying its position in the domestic logistics landscape.

Yasuyuki Tani — KWE Regional Managing Director of Southeast Asia and Oceania Region said: “KWE as a group and more specifically KWE India shared excellent relationship with Gati and Gati‐Kintetsu over the past 10 years. This relationship will now be more strategic partnerships in domestic logistics operations in India. As an international freight forwarder, will continue to engage with Allcargo Group in various areas and explore new opportunities as it may present in the future in India and overseas.”