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Aimed at enhancing golfing culture in India and to encourage young talent on international platform

Mumbai, 29th September, 2016: Allcargo Logistics, India’s leading integrated logistics player along with its global subsidiary ECU Worldwide in association with the Indo American Professional Golf Association (IAPGA) teed off IAPGA Golf Tour 2016 in U.S.A in September, 2016.

ECU Worldwide and Allcargo extended support as lead sponsors to this event with an aim to provide a platform to promising golfers who can showcase and hone their golfing skills across various cities of U.S.A.

IAPGA is an acclaimed organisation that supports golf tournament with an aim to raise funds to enable Indian professionals to participate in the US PGA Tour Qualifying School every year. The tournament enhances golfing culture in India and encourages young talent.

The tournament was housed with an impressive participation from golfers belonging to the Indian diaspora in U.S.A. The tour drew participation from 350 professional and amateur golfers. Professional golfers like Amardip Singh Malik, Abhijit Singh Chadha, Deepinder Singh Kullar and Mandeo Singh Pathania also participated. Some of the most esteemed customers of ECU Worldwide also participated and played golf at the events held in Los Angeles, Houston and New York.

Dr. Shashi Kiran Shetty, Chairman of Allcargo Logistics Limited was present at the event held at New York on 8th September, 2016 where he played and interacted with the other participants/golfers.

Commenting on the occassion, Dr. Shashi Kiran Shetty said: “I feel extremely happy to support this initiative which aims to encourage young and talented golfers to showcase their talent at international platforms. It was an unforgettable experience for me to play with these golfers and interact with them in New York. We have always created benchmarks and have believed in doing things which make a difference to the society and people’s lives. I want to extend my heartiest congratulations to IAPGA for envisioning and encouraging this emerging sport in India at an international level and making it successful.”

About Allcargo Logistics Ltd:

Allcargo Logistics Ltd., part of The Avvashya Group, is the leading integrated logistics solutions provider in India. The company offers specialized logistics services across Multimodal Transport Operations, Container Freight Station Operations, Coastal Shipping services with 5 owned and operated ships and Project & Engineering Solutions. Benchmarked quality standards, standardized processes and operation excellence across all the services and facilities, have enabled Allcargo Logistics Ltd. to emerge as the market leader in all these segments. Allcargo is today one of India's largest publicly owned logistics companies, listed on the Bombay Stock Exchange (BSE: ALLCARGO) and The National Stock Exchange of India (NSE: ALLCARGO).

 

For further information, please contact:

Divya Sheth

Adfactors PR

divya.sheth@adfactorspr.com | +91 9619105533

Avashya Foundation undertakes a Tree Plantation drive in Karnataka

 

Mumbai, July 11, 2016: Allcargo Logistics, India’s leading integrated logistics provider, through its NGO Avashya Foundation in association with Grow-Trees.com, the exclusive Indian Planting Partner for United Nation’s Environment Program (UNEP) has undertaken a noble cause of tree plantation at Chintamani, Karnataka. Under this activity Grow-Trees.com will plant 2857 trees in Chintamani area on behalf of ECU Worldwide – Allcargo’s international subsidiary that was recently re-branded.

This initiative also forms a part of project Maitree, Avashya Foundation’s unique environment sustainability and conservation program launched in January 2016.

This activity will benefit nearly 40 villages in and around Chintamani, Karnataka, since trees are not just a life support but also a livelihood for many families.

In 2015, Avashya Foundation has planted over 103000 trees as a part of environmental sustainability program. By planting and nurturing trees Avashya foundation aims to provide opportunities for villagers to earn additional income. 

 Commenting on the tree plantation drive, Ms. Arathi Shetty – Director of Allcargo and Avashya Foundation said: “We, believe in protecting the environment and work for the upliftment of the rural communities. To achieve this, we are proud to associate with Grow-Trees for a tree plantation drive. These initiatives go beyond philanthropy; discovering ingenious ways to give back to the society that make the world a better place to live and to focus on bringing inclusive development which contribute towards the realization of our social duties.”

About Allcargo Logistics Ltd:

Allcargo Logistics Ltd., is a global leader in integrated logistics solutions. The company offers specialized logistics services across Multimodal Transport Operations, Container Freight Station Operations and Project & Engineering Solutions. Benchmarked quality standards, standardized processes and operation excellence across all the services and facilities, have enabled Allcargo Logistics Ltd. to emerge as the market leader in these segments. Allcargo is today one of India's largest publicly owned logistics companies, listed on the Bombay Stock Exchange (BSE: ALLCARGO) and The National Stock Exchange of India (NSE: ALLCARGO).

Under the Avashya Foundation an NGO of the Avvashya Group, Allcargo also supports numerous Corporate Social Responsibility (CSR) initiatives, focusing on Natural Disaster Relief, Health Care, Education, Women Empowerment, Sports and Environmental Sustainability.

 

Mumbai, June 30, 2016: Allcargo Logistics Ltd, India’s leading integrated logistics provider and a part of the Avvashya group, today announced that Mr. Adarsh Hegde has been elevated as the Joint Managing Director with effect from 1st July, 2016.

Mr. Hegde has been with the company since its inception in 1993 and has played a pivotal role in Allcargo's growth story. His astute business sense and innovative methods have been instrumental in generating exponential growth opportunities for the Container Freight Station as well as to other businesses in India and internationally. 

Commenting on the appointment Mr. Shashi Kiran Shetty, Founder & Chairman, Allcargo Logistics Ltd said:Adarsh’s  aptitude and contributions have been invaluable to the Allcargo growth journey. Adarsh espouses a hands-on management style and is greatly respected for his people management skills, simplicity and industry wide relationships. We are sure that in the new role he will work with me more than ever before in the future growth of our business. We wish him  well in his new position and success in his new role.” 

As the Joint Managing Director at AllCargo Logistics, Mr. Hegde will oversee the business  of CFS&ICD, Project Forwarding & Engineering solutions, E-Commerce Logistics, coastal Shipping, and Contract Logistics.  In these areas, he will be responsible for crafting business strategy, developing strong leadership team and supporting initiatives to accelerate profitable growth.  In addition, Mr. Hegde will continue to play a key  role in overall group governance and business development.

Mumbai, June 13, 2016: Allcargo Logistics Ltd, India’s leading integrated logistics provider, listed
on BSE & NSE and part of the global conglomerate Avvashya Group, is proud to introduce the
first ever direct LCL service to Mangalore under its Non Vessel operating common carrier
(NVOCC) division. Allcargo names the frequency ‘Made to Call’.
Vessel named Godavari departed from Colombo on 2nd June and is slated to reach Mangalore
on 4th June which makes Allcargo the first mover in trade to cut down the route time to
Mangalore. Usually, LCL consolidators adopt a longer route by brining the shipment to Chennai
and then transferring it to the Inland Container Depots (ICD) in Bangalore from where the
customer collects his cargo and carries it to Mangalore via road. The entire procedure is very
time consuming. The new service of ‘Made to Call’ to Mangalore will benefit our clients and save
lot of time
Congratulating the organization and the industry, Chairman Mr. Shashi Kiran Shetty said, “It is
as if I have realized a dream, since we have seen our organization grow, I had an ardent desire
that Mangalore, my beloved hometown makes its mark on the map of Allcargo, and I am sure it
is just the beginning for Mangalore.
Shantha Martin, CEO – Indian Sub Continent, Middle East , Africa and East Med added, “I am
proud of my team, and we owe our success to each and every member of our team,….it is
through our team that we are where we are and extend my appreciation to the trade for being
very fast to subscribe to this service which is beneficial to them and their customers by reducing
the transit time and making it cost economical.”
Mr. Hareram, Sr. Vice President, also said that, “Mangalore is a chief port city on the west coast
of India and Indian government’s initiatives to strengthen maritime trade and develop port cities
through Sagarmala Project will see huge developments in Mangalore city”.
Allcargo’s Multimodal Transport Operations (MTO) segment involves NVOCC operations related
to LCL consolidation and Full Container Load (FCL) forwarding activities in India and across the
world through its wholly owned subsidiary ECU Worldwide. With a presence in over 160
countries and 300+ offices Allcargo is the global leader in NVOCC business with a strong network
covering over 4,000 port pairs across the world.
About Allcargo Logistics Ltd:
Allcargo Logistics Ltd., part of The Avvashya Group, is the leading integrated logistics solutions
provider in India. The company offers specialized logistics services across Multimodal Transport
Operations, Container Freight Station Operations, Coastal Shipping services with 5 owned and
operated ships and Project & Engineering Solutions. Benchmarked quality standards,
standardized processes and operation excellence across all the services and facilities, have
enabled Allcargo Logistics Ltd. to emerge as the market leader in all these segments. Allcargo is
today one of India's largest publicly owned logistics companies, listed on the Bombay Stock
Exchange (BSE: ALLCARGO) and The National Stock Exchange of India (NSE: ALLCARGO).
For more information
Divya Sheth
Adfactors PR
divya.sheth

Mumbai, June 27, 2016: Allcargo Logistics Ltd, India’s leading integrated logistics provider and a part of the Avvashya group, is proud to associate with the unique initiative of ET Edge, The Economic Times Supply Chain Management & Logistics Summit 2016 (ET SCM) by sponsoring the prestigious event for the third consecutive year. The Summit was held on Friday, 24th June 2016 at The Leela, Mumbai.

The programme brought the who’s who of the corporate world together from various industries to deliberate & discuss on the current challenges and future of supply chain in India. The summit progressed through a series of panel discussions, conferences & interactions on topics pertaining to the supply chain in India. Allcargo Logistics Founder and Chairman, Shashi Kiran Shetty was one of the panelists for the discussion on ‘Developing an Integrated Supply Chain: Agile and Future ready’.

Mr. Shashi Kiran Shetty, Founder & Chairman of Allcargo Logistics Ltd said:It is a privilege to be a part of such a great initiative launched by ET Edge. The summit brought together industry tycoons and government experts on one platform which provided a platform to partner and explore various business opportunities. We are delighted to partner with the ET SCM as it gives an opportunity and vision to next level of growth that India is witnessing.

We at Allcargo, understand the importance of efficient supply chain and hence we ensure that our customers experience efficient supply chain management services with the promise of on-time delivery.” added Mr. Shetty

Allcargo’s supply chain management systems are capable of constantly evolving, adapting and aligning towards customer’s business goals. Allcargo’s warehouses are equipped with State-of-the-art facility design, best-in-class equipment, strong IT infrastructure, supply chain business process integration; temperature managed warehousing, strict safety and environment regulations, etc.

About Allcargo Logistics Ltd:

Allcargo Logistics Ltd., part of The Avvashya Group, is the leading integrated logistics solutions provider in India. The company offers specialized logistics services across Multimodal Transport Operations, Container Freight Station Operations, Coastal Shipping services with 5 owned and operated ships and Project & Engineering Solutions. Benchmarked quality standards, standardized processes and operation excellence across all the services and facilities, have enabled Allcargo Logistics Ltd. to emerge as the market leader in all these segments. Allcargo is today one of India's largest publicly owned logistics companies, listed on the Bombay Stock Exchange (BSE: ALLCARGO) and The National Stock Exchange of India (NSE: ALLCARGO).

 

For further information, please contact:

Divya Sheth

Adfactors PR

divya.sheth@adfactorspr.com | +91 9619105533

 

Mumbai May 2, 2016 – Allcargo Logistics Ltd, India’s leading integrated logistics solution
provider today announced the rebranding of its global subsidiaries, ECU Line, Econocaribe and
China Consolidators to ‘ECU Worldwide’ with the tagline ‘Geography Simplified’.
Allcargo Logistics Founder and Chairman Shashi Kiran Shetty said: “The name ECU-Worldwide
heralds the start of a new chapter. This is in line with our vision to become a USD 2 billion
revenue organization by the year 2020. This will propel us to constantly raise the bar and create
a dynamic and exciting transformation for our organization.
The new name signifies more than just a rebranding of our group companies. It provides us with
the impetus to deliver more, create new products and proactively propose solutions to surpass
client’s expectations to help achieve our ambitious growth targets.” added Mr. Shetty.
The main objective is to change the perception of the company from being just a shipping line
player to being an integrated ‘logistics solution provider’. The tagline ‘Geography Simplified’ too
shows a more product agnostic approach and compliments the group’s key advantage of
undisputed presence through a comprehensive network of 300+ offices located in 160+
countries.
The re-branding aims to achieve one global brand keeping in mind that the companies operate
under different brands in USA, Shanghai and UK. To address ever-changing business demands
from a global network of customers and to bridge the gap between diverse geographies, the
company has decided to close knit its network and to adopt a new identity: ECU WORLDWIDE.
ECU Line, one of the global leaders in providing LCL services was acquired by Allcargo Logistics in
2006. Whereas, Econocaribe one of the largest Non-Vessel Operating Common Carriers (NVOCC)
in the USA officially became a part of ECU Line’s global family in 2013.

 

KEY BUSINESSES DEMONSTRATE STRONG PROFITABLE GROWTH

IN THE FULL YEAR

 

CONSOLIDATED REVENUE FROM OPERATIONS AT RS 5,688 CRORE

 

GROSS PROFIT AT RS 1,876 CRORE – YOY INCREASE OF 11%

 

CONSOLIDATED NORMALIZED EBITDA (ADJUSTING FOR ONE TIME EXPENSES)

MAINTAINED AT RS 536 CRORE – YOY INCREASE OF 13%

 

NORMALIZED EBITDA MARGIN AT 9.4% - YOY INCREASE OF OVER 95 BPS

 

FOCUS ON CONSERVATIVE CAPITAL STRUCTURE – YOY INCREASE OF

16% IN NETWORTH; 36% DECLINE IN NET DEBT

 

BOARD APPROVES THE ACQUISITION OF CONTROLLING STAKE (61.13%) IN AVVASHYA CCI LOGISTICS PVT LTD (ACCI), JOINTLY WITH HCL 100% SUBSIDIARY OF THE COMPANY – ACCI IS ONE OF THE MARKET LEADERS IN CONTRACT LOGISITICS

 

May 20, 2016, Mumbai:   Allcargo Logistics Ltd. today announced its audited financial results for the quarter and year ended March 31, 2016.

 

The performance highlights are:

Consolidated Results – Q4 FY16

  • Total revenue from operations at Rs. 1,402.0 crore for the quarter ended March 31, 2016, as compared to Rs. 1,413.1 crore for the corresponding previous period, a decrease of 1%, mainly on account of lowering freight rates  
    • 83% of the revenues are from the global MTO business

 

  • The Gross Profit for the quarter ended March 31, 2016 was Rs 482.8 crore, as against Rs. 419.1 crore for the corresponding previous period, year on year growth of 15%, mainly on account of higher operating efficiencies and economies of scale
  • The Gross Profit margin for the quarter improved due to higher utilization, operational efficiencies and process excellence

 

  • EBITDA for the quarter ended March 31, 2016 was Rs. 125.4 crore as against Rs. 106.7 crore during the corresponding previous period, an increase of 18%, this was mainly on account of better capacity utilization and higher operating efficiencies

 

  • PAT at Rs. 69.1 crore for the quarter ended March 31, 2016, as against Rs 55.5 crore for the corresponding previous period, a jump of 25%

 

  • EPS for the quarter ended March 31, 2016 was Rs 2.74, for a face value of Rs. 2 per share, an increase of 25%

 

Consolidated Results –FY16

  • Total revenue from operations at Rs. 5,687.9 crore for the year ended March 31, 2016, as against Rs. 5,628.8 crore for the corresponding previous period, an increase of 1%, mainly on account of increase in volumes, despite continued lowering freight rates and notional currency impact

 

  • The Gross Profit for the year ended March 31, 2016 was Rs 1,875.6 crore, as against Rs. 1,690.8 crore for the corresponding previous period, year on year growth of 11%, mainly on account of better productivity, improved efficiencies and process excellence

 

  • The Gross Profit margin for the year increased to 33%

 

  • The Normalized EBITDA, after adjusting for onetime expenses, was Rs. 536.0 crore for the year ended March 31, 2016, as against Rs. 475.4 for the corresponding previous period, an increase of 13%. All the businesses have contributed to the growth in EBIDTA

 

  • The Normalized EBITDA margin for the year was 9.4%, a rise of nearly 100 basis points

 

  • PAT at Rs. 278.3 crore for the year ended March 31, 2016, as against Rs. 239.9 crore for the corresponding previous period, an increase of 16%, mainly on account of reduced interest cost

 

  • The Consolidated Return on Capital Employed (ROCE), without goodwill, was at 21%, as compared to 19% in FY15

 

  • EPS for the year ended March 31, 2016 was Rs 11.04, for a face value of Rs. 2 per share, as against Rs 9.52 in FY15

 

Resources and Liquidity:

As on March 31, 2016, the Networth increased by 16% to Rs. 2,206 crore and the Net Debt decreased by 36%              to Rs. 269 crore.

The net debt to equity ratio of the Company declined to 0.12 as on March 31, 2016, as compared to 0.22 as on March 31, 2015.

 

Business Performance:

Allcargo operates primarily in three segments, viz., Multimodal Transport Operations, Container Freight Stations Operations and Project & Engineering Solutions. These are consolidated business segments.

 

 

 

Multimodal Transport Operations (MTO):

 

  • MTO segment involves NVOCC (Non Vessel Owning Common Carrier) operations related to LCL (Less than container load) consolidation and FCL (Full container load) forwarding activities in India and across the world through its wholly owned subsidiary ECU Line

 

  • Allcargo is the leading player in global LCL consolidation market with a strong network across 164 countries and 300 plus offices covering over 4,000 port pairs across the world

 

  • The business clocked total volumes of 1,12,593 TEUs for the quarter ended March 31, 2016 as against 1,04,128 TEUs for the corresponding previous period, an increase of 8%, despite reducing freight rates due to excess capacity of shipping lines and continued decline in global trade.  China, India, parts of South East Asia and Europe contributed to the increase in volumes

 

  • The total revenue for the quarter ended March 31, 2016 was Rs 1,191 crore as against Rs 1,183 crore for the corresponding previous period, an increase of 1%, mainly on account of volume enhancement, this is despite lowering freight and notional currency impact arising from consolidation of accounts

 

  • EBIT was Rs. 62 crore for the quarter ended March 31, 2016, as against Rs. 22 crore for the corresponding previous period. This increase was driven by higher operating efficiencies and economies of scale

 

  • The Return on Capital (ROCE) employed for this business (excluding goodwill) increased to 61%, as compared to 50% in FY15

 

 

Container Freight Stations (CFS) / Inland Container Depot (ICD) Operations:

 

  • This segment operations are involved in import / export cargo stuffing, de-stuffing, customs clearance and other related ancillary services to both, importers and exporters

 

  • The CFS facilities are located near JNPT, Chennai and Mundra ports

 

  • The total capacity of the CFSs and ICDs at the end of March 31, 2016 is 5,73,000 TEUs per annum

 

  • The business clocked total volumes of 74,751 TEUs for the quarter ended March 31, 2016 as against 72,664 TEUs for the corresponding previous period, an increase of 3%, despite stagnant trade volume

 

  • The total revenue for the quarter ended March 31, 2016 was Rs 107 crore as against Rs 105 crore for the corresponding previous period, an increase of 2%

 

  • EBIT was Rs. 30 crore for the quarter ended March 31, 2016, as against Rs. 29 crore the corresponding previous period, an increase of 4%

 

  • The Return on Capital (ROCE) employed for this business (excluding goodwill) for this business increased to 38%, from 30% in FY15

 

 

Project & Engineering Solutions (P&E):

 

  • Project & Engineering Solutions segment provides integrated end-to-end project, engineering and logistic services through a diverse fleet of owned / rented special equipment like hydraulic axles, cranes, barges, reach-stackers and ships to carry ODC / OWC cargos as well as project engineering solutions across various sectors

 

  • The total revenue for the quarter ended March 31, 2016, was Rs. 128 crore as against Rs. 152 crore for the corresponding previous period, a decline of 16%

 

  • EBIT was at Rs. 19 crore for the quarter ended March 31, 2016, as against Rs. 30 crore for the corresponding previous period, a decline of 27% after adjusting for derivative gains

 

  • The Return on Capital (ROCE) employed for this business was at 9%

 

Recent Developments – Q4 FY16

 

  • In view of 100% interim dividend and 1:1 Bonus declared in financial year 2015-16, the Board of Directors have not recommended any final dividend to the shareholders for the financial year 2015-16. Second interim dividend of Re 1/- per share was declared on the enhanced capital post bonus issue in 1:1      

 

  • The Board granted its approval to sale and transfer company’s Contract Logistics Business to Avvashya CCI Logistics Private Limited (ACCI) (formerly known as CCI Integrated Logistics Private Limited) as a going concern on a slump sale basis for a total consideration of Rs.19.62 crore, as determined by the independent valuer. The sales consideration shall be discharged by ACCI by issue of equity shares resulting to the extent of to 6.63% of the expanded capital

       

  • The Board of Hindustan Cargo Limited, a wholly owned subsidiary of the Company, granted its approval to sale and transfer company’s Freight Forwarding Business to Avvashya CCI Logistics Private Limited (ACCI) as a going concern on a slump sale basis for a total consideration of Rs.31.29 Crore, as determined by the independent valuer. The sales consideration shall be discharged by ACCI by issue of further equity shares resulting to 10.57% of the expanded capital

 

  • In order to gain controlling stake of ACCI, the Board of Directors further approved acquisition of additional 43.93% stake from the promoter shareholders of ACCI for an aggregate consideration of Rs.130 Crore, as determined by the independent valuer

 

  • Post acquisition, the Company will hold 61.13% stake in ACCI

 

  • ACCI acquisition is a step taken to capture the fast growing contract logistics business dealing with e-commerce and auto chemicals sector. This will emerge as a significant contributor to the revenue and will further help to scale the business

  

  • The Company undertook a major rebranding exercise of its global subsidiaries ECU-Line and Econocaribe. Both ECU-Line and Econocaribe will be known as ECU Worlwide, with a new tagline ‘Geography Simplified’ starting May 2nd, 2016. The new identity will redefine brand experience for the company’s stakeholders across the globe following the integration of new services, technology, global best practices and professional expertise

 

  • The Shareholders of the Company approved raising of fund upto Rs.300 crore by issue of Secured Non-Convertible Redeemable Debentures on private placement basis

 

 

Stock Market Highlights – General Information and Shareholding Pattern as on March 31, 2016:

 

Particulars

 

Exchange Code

BSE: ALLCARGO / NSE: ALLCARGO

No. of Shares Outstanding

25,20,95,524

Closing Market Price (Rs.)1

157.30             

Market Capitalization (Rs. Crore)1

3,965

 

1BSE stock exchange as on May 20, 2016, market capitalization adjusted for bonus shares

               

Particulars

No of shares

% Holding

Promoters

17,62,68,640

69.9%

Foreign Investors – FIIs, FCs, NRIs and others

6,41,58,094

25.4%

Domestic institutions/ Banks/ Mutual Funds

3,10,477

0.1%

Indian Public

1,13,58,313

4.5%

Total  - 20,819 shareholders

25,20,95,524

100.0%

 

 

 

About Allcargo Logistics Limited

Allcargo Logistics Ltd., part of The Avvashya Group, is a global leader in integrated logistics solutions. The company offers specialized logistics services across Multimodal Transport Operations, Container Freight Station Operations and Project & Engineering Solutions. Benchmarked quality standards, standardized processes and operation excellence across all the services and facilities, have enabled Allcargo Logistics Ltd. to emerge as the market leader in all these segments.

 

The company currently operates out of 300 plus offices in 164 countries and gets supported by an even larger network of franchisee offices across the world. Allcargo is today one of India's largest publicly owned logistics companies, listed on the Bombay Stock Exchange (BSE: ALLCARGO) and The National Stock Exchange of India (NSE: ALLCARGO).

 

 

Caution Concerning Forward-Looking Statements: This document includes certain forward-looking statements. These statements are based on management's current expectations or beliefs, and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive, technological and/or regulatory factors.  Allcargo Logistics Limited is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.

 

 

FOR FURTHER INFORMATION PLEASE CONTACT:

Savli Mangle, Vice President – IR

Allcargo Logistics Ltd

Email: savli.mangle@allcargologistics.com  

Sharad Jain, Senior Analyst – IR

Allcargo Logistics Ltd

Email: sharad.jain@allcargologistics.com  

 

                       

 

 

 

 

ALLCARGO LOGISTICS LIMITED

Avvashya House, CST Road, Kalina, Santacruz (E), Mumbai – 400 098, India

Tele: +91 22 6679 8100 Fax: +91 22 6679 8195 Website: http://www.allcargologistics.com/  

 

 

EARNINGS RELEASE

 

KEY BUSINESSES DEMONSTRATE STRONG PROFITABLE GROWTH

IN THE FULL YEAR

 

CONSOLIDATED REVENUE FROM OPERATIONS AT RS 5,688 CRORE

 

GROSS PROFIT AT RS 1,876 CRORE – YOY INCREASE OF 11%

 

CONSOLIDATED NORMALIZED EBITDA (ADJUSTING FOR ONE TIME EXPENSES)

MAINTAINED AT RS 536 CRORE – YOY INCREASE OF 13%

 

NORMALIZED EBITDA MARGIN AT 9.4% - YOY INCREASE OF OVER 95 BPS

 

FOCUS ON CONSERVATIVE CAPITAL STRUCTURE – YOY INCREASE OF

16% IN NETWORTH; 36% DECLINE IN NET DEBT

 

BOARD APPROVES THE ACQUISITION OF CONTROLLING STAKE (61.13%) IN AVVASHYA CCI LOGISTICS PVT LTD (ACCI), JOINTLY WITH HCL 100% SUBSIDIARY OF THE COMPANY – ACCI IS ONE OF THE MARKET LEADERS IN CONTRACT LOGISITICS

 

May 20, 2016, Mumbai:   Allcargo Logistics Ltd. today announced its audited financial results for the quarter and year ended March 31, 2016.

 

The performance highlights are:

Consolidated Results – Q4 FY16

  • Total revenue from operations at Rs. 1,402.0 crore for the quarter ended March 31, 2016, as compared to Rs. 1,413.1 crore for the corresponding previous period, a decrease of 1%, mainly on account of lowering freight rates  
    • 83% of the revenues are from the global MTO business

 

  • The Gross Profit for the quarter ended March 31, 2016 was Rs 482.8 crore, as against Rs. 419.1 crore for the corresponding previous period, year on year growth of 15%, mainly on account of higher operating efficiencies and economies of scale
  • The Gross Profit margin for the quarter improved due to higher utilization, operational efficiencies and process excellence

 

  • EBITDA for the quarter ended March 31, 2016 was Rs. 125.4 crore as against Rs. 106.7 crore during the corresponding previous period, an increase of 18%, this was mainly on account of better capacity utilization and higher operating efficiencies

 

  • PAT at Rs. 69.1 crore for the quarter ended March 31, 2016, as against Rs 55.5 crore for the corresponding previous period, a jump of 25%

 

  • EPS for the quarter ended March 31, 2016 was Rs 2.74, for a face value of Rs. 2 per share, an increase of 25%

 

Consolidated Results –FY16

  • Total revenue from operations at Rs. 5,687.9 crore for the year ended March 31, 2016, as against Rs. 5,628.8 crore for the corresponding previous period, an increase of 1%, mainly on account of increase in volumes, despite continued lowering freight rates and notional currency impact

 

  • The Gross Profit for the year ended March 31, 2016 was Rs 1,875.6 crore, as against Rs. 1,690.8 crore for the corresponding previous period, year on year growth of 11%, mainly on account of better productivity, improved efficiencies and process excellence

 

  • The Gross Profit margin for the year increased to 33%

 

  • The Normalized EBITDA, after adjusting for onetime expenses, was Rs. 536.0 crore for the year ended March 31, 2016, as against Rs. 475.4 for the corresponding previous period, an increase of 13%. All the businesses have contributed to the growth in EBIDTA

 

  • The Normalized EBITDA margin for the year was 9.4%, a rise of nearly 100 basis points

 

  • PAT at Rs. 278.3 crore for the year ended March 31, 2016, as against Rs. 239.9 crore for the corresponding previous period, an increase of 16%, mainly on account of reduced interest cost

 

  • The Consolidated Return on Capital Employed (ROCE), without goodwill, was at 21%, as compared to 19% in FY15

 

  • EPS for the year ended March 31, 2016 was Rs 11.04, for a face value of Rs. 2 per share, as against Rs 9.52 in FY15

 

Resources and Liquidity:

As on March 31, 2016, the Networth increased by 16% to Rs. 2,206 crore and the Net Debt decreased by 36%              to Rs. 269 crore.

The net debt to equity ratio of the Company declined to 0.12 as on March 31, 2016, as compared to 0.22 as on March 31, 2015.

 

Business Performance:

Allcargo operates primarily in three segments, viz., Multimodal Transport Operations, Container Freight Stations Operations and Project & Engineering Solutions. These are consolidated business segments.

 

 

 

Multimodal Transport Operations (MTO):

 

  • MTO segment involves NVOCC (Non Vessel Owning Common Carrier) operations related to LCL (Less than container load) consolidation and FCL (Full container load) forwarding activities in India and across the world through its wholly owned subsidiary ECU Line

 

  • Allcargo is the leading player in global LCL consolidation market with a strong network across 164 countries and 300 plus offices covering over 4,000 port pairs across the world

 

  • The business clocked total volumes of 1,12,593 TEUs for the quarter ended March 31, 2016 as against 1,04,128 TEUs for the corresponding previous period, an increase of 8%, despite reducing freight rates due to excess capacity of shipping lines and continued decline in global trade.  China, India, parts of South East Asia and Europe contributed to the increase in volumes

 

  • The total revenue for the quarter ended March 31, 2016 was Rs 1,191 crore as against Rs 1,183 crore for the corresponding previous period, an increase of 1%, mainly on account of volume enhancement, this is despite lowering freight and notional currency impact arising from consolidation of accounts

 

  • EBIT was Rs. 62 crore for the quarter ended March 31, 2016, as against Rs. 22 crore for the corresponding previous period. This increase was driven by higher operating efficiencies and economies of scale

 

  • The Return on Capital (ROCE) employed for this business (excluding goodwill) increased to 61%, as compared to 50% in FY15

 

 

Container Freight Stations (CFS) / Inland Container Depot (ICD) Operations:

 

  • This segment operations are involved in import / export cargo stuffing, de-stuffing, customs clearance and other related ancillary services to both, importers and exporters

 

  • The CFS facilities are located near JNPT, Chennai and Mundra ports

 

  • The total capacity of the CFSs and ICDs at the end of March 31, 2016 is 5,73,000 TEUs per annum

 

  • The business clocked total volumes of 74,751 TEUs for the quarter ended March 31, 2016 as against 72,664 TEUs for the corresponding previous period, an increase of 3%, despite stagnant trade volume

 

  • The total revenue for the quarter ended March 31, 2016 was Rs 107 crore as against Rs 105 crore for the corresponding previous period, an increase of 2%

 

  • EBIT was Rs. 30 crore for the quarter ended March 31, 2016, as against Rs. 29 crore the corresponding previous period, an increase of 4%

 

  • The Return on Capital (ROCE) employed for this business (excluding goodwill) for this business increased to 38%, from 30% in FY15

 

 

Project & Engineering Solutions (P&E):

 

  • Project & Engineering Solutions segment provides integrated end-to-end project, engineering and logistic services through a diverse fleet of owned / rented special equipment like hydraulic axles, cranes, barges, reach-stackers and ships to carry ODC / OWC cargos as well as project engineering solutions across various sectors

 

  • The total revenue for the quarter ended March 31, 2016, was Rs. 128 crore as against Rs. 152 crore for the corresponding previous period, a decline of 16%

 

  • EBIT was at Rs. 19 crore for the quarter ended March 31, 2016, as against Rs. 30 crore for the corresponding previous period, a decline of 27% after adjusting for derivative gains

 

  • The Return on Capital (ROCE) employed for this business was at 9%

 

Recent Developments – Q4 FY16

 

  • In view of 100% interim dividend and 1:1 Bonus declared in financial year 2015-16, the Board of Directors have not recommended any final dividend to the shareholders for the financial year 2015-16. Second interim dividend of Re 1/- per share was declared on the enhanced capital post bonus issue in 1:1      

 

  • The Board granted its approval to sale and transfer company’s Contract Logistics Business to Avvashya CCI Logistics Private Limited (ACCI) (formerly known as CCI Integrated Logistics Private Limited) as a going concern on a slump sale basis for a total consideration of Rs.19.62 crore, as determined by the independent valuer. The sales consideration shall be discharged by ACCI by issue of equity shares resulting to the extent of to 6.63% of the expanded capital

       

  • The Board of Hindustan Cargo Limited, a wholly owned subsidiary of the Company, granted its approval to sale and transfer company’s Freight Forwarding Business to Avvashya CCI Logistics Private Limited (ACCI) as a going concern on a slump sale basis for a total consideration of Rs.31.29 Crore, as determined by the independent valuer. The sales consideration shall be discharged by ACCI by issue of further equity shares resulting to 10.57% of the expanded capital

 

  • In order to gain controlling stake of ACCI, the Board of Directors further approved acquisition of additional 43.93% stake from the promoter shareholders of ACCI for an aggregate consideration of Rs.130 Crore, as determined by the independent valuer

 

  • Post acquisition, the Company will hold 61.13% stake in ACCI

 

  • ACCI acquisition is a step taken to capture the fast growing contract logistics business dealing with e-commerce and auto chemicals sector. This will emerge as a significant contributor to the revenue and will further help to scale the business

  

  • The Company undertook a major rebranding exercise of its global subsidiaries ECU-Line and Econocaribe. Both ECU-Line and Econocaribe will be known as ECU Worlwide, with a new tagline ‘Geography Simplified’ starting May 2nd, 2016. The new identity will redefine brand experience for the company’s stakeholders across the globe following the integration of new services, technology, global best practices and professional expertise

 

  • The Shareholders of the Company approved raising of fund upto Rs.300 crore by issue of Secured Non-Convertible Redeemable Debentures on private placement basis

 

 

Stock Market Highlights – General Information and Shareholding Pattern as on March 31, 2016:

 

Particulars

 

Exchange Code

BSE: ALLCARGO / NSE: ALLCARGO

No. of Shares Outstanding

25,20,95,524

Closing Market Price (Rs.)1

157.30             

Market Capitalization (Rs. Crore)1

3,965

 

1BSE stock exchange as on May 20, 2016, market capitalization adjusted for bonus shares

               

Particulars

No of shares

% Holding

Promoters

17,62,68,640

69.9%

Foreign Investors – FIIs, FCs, NRIs and others

6,41,58,094

25.4%

Domestic institutions/ Banks/ Mutual Funds

3,10,477

0.1%

Indian Public

1,13,58,313

4.5%

Total  - 20,819 shareholders

25,20,95,524

100.0%

 

 

 

About Allcargo Logistics Limited

Allcargo Logistics Ltd., part of The Avvashya Group, is a global leader in integrated logistics solutions. The company offers specialized logistics services across Multimodal Transport Operations, Container Freight Station Operations and Project & Engineering Solutions. Benchmarked quality standards, standardized processes and operation excellence across all the services and facilities, have enabled Allcargo Logistics Ltd. to emerge as the market leader in all these segments.

 

The company currently operates out of 300 plus offices in 164 countries and gets supported by an even larger network of franchisee offices across the world. Allcargo is today one of India's largest publicly owned logistics companies, listed on the Bombay Stock Exchange (BSE: ALLCARGO) and The National Stock Exchange of India (NSE: ALLCARGO).

 

 

Caution Concerning Forward-Looking Statements: This document includes certain forward-looking statements. These statements are based on management's current expectations or beliefs, and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive, technological and/or regulatory factors.  Allcargo Logistics Limited is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.

 

 

FOR FURTHER INFORMATION PLEASE CONTACT:

Savli Mangle, Vice President – IR

Allcargo Logistics Ltd

Email: savli.mangle@allcargologistics.com  

Sharad Jain, Senior Analyst – IR

Allcargo Logistics Ltd

Email: sharad.jain@allcargologistics.com  

 

Mumbai, November 23, 2015: The Founder and Chairman of Allcargo Logistics Ltd, Dr. Shashi Kiran Shetty was awarded the prestigious “Lifetime Contribution to Freight Award” at the Global Freight Awards 2015. The awards ceremony was held in London on 19th November 2015.

Now in its 19th year, the Global Freight Awards (formerly known as the IFW Awards) is a truly prestigious event, celebrating the expertise of one of the world’s most important industries. The awards are a vibrant celebration of the key players in the world of freight.

This award was presented to Dr. Shetty as recognition for his contribution to the well being of the logistics & freight industry. Spanning a marvelous career of over four decades, Dr. Shetty is the pioneer and a visionary who has taken Indian logistics industry to a global scale. Under his leadership today Allcargo is India's largest logistics company in the private sector listed on BSE & NSE. With presence in over 90 countries and over 200 offices globally, Allcargo is truly an Indian multinational whose consolidated revenues are expected to cross over USD 2 billion by 2020.

This award adds another "prestigious" feather to his cap after being conferred with the "Distinction of Commander of the Order of Leopold II" by the Royalty of Belgium and an "Honorary Doctorate" by Mangalore University in the recent past.

Speaking on the occasion Dr. Shetty said: "This is indeed another proud moment in my professional life. It is truly a privilege to be recognized amongst the global players in the freight and logistics industry. I am thankful for all the support given by my industry colleagues and mentors, without which I wouldn't have achieved this success. We, at Allcargo, will continue to make valuable contributions which will benefit the industry and all the stakeholders in the long run".

About Global Freight Awards – The award honors individuals and companies who have achieved high standards in the freight and logistics industry during the past year.

About Allcargo Logistics Ltd - Allcargo Logistics Ltd., part of The Avvashya Group, is a global leader in integrated logistics solutions. The company offers specialized logistics services across Multimodal Transport Operations, Container Freight Station Operations and Project & Engineering Solutions. Benchmarked quality standards, standardized processes and operation excellence across all the services and facilities, have enabled Allcargo Logistics Ltd. to emerge as the market leader in all these segments. Allcargo is today one of India's largest publicly owned logistics companies, listed on the Bombay Stock Exchange (BSE: ALLCARGO) and The National Stock Exchange of India (NSE: ALLCARGO).

EARNINGS RELEASE

CONSOLIDATED TOTAL REVENUE FROM FOR THE YEAR AT RS 5,681 CRORE – YOY INCREASE OF 16%

83% OF REVENUE FROM GLOBAL MTO BUSINESS

CONSOLIDATED EBIDTA AT RS 528 CRORE – YOY INCREASE OF 23%

CONSOLIDATED PAT AT RS 240 CRORE – YOY INCREASE OF 61%

CONSERVATIVE CAPITAL STRUCTURE – NET DEBT TO EQUITY AT 0.22

EARNINGS PER SHARE AT 19.0 FOR A FACE VALUE OF RS 2 PER SHARE – YOY INCREASE OF 61%

BOARD RECOMMENDS FINAL DIVIDEND AT 70% i.e. RS 1.4 PER EQUITY SHARE. INTERIM DIVIDEND PAID AT 30% i.e. RS 0.6 PER EQUITY SHARE

May 21, 2015, Mumbai: Allcargo Logistics Ltd. today announced its audited financial results for the quarter and year ended March 31, 2015.

The performance highlights are:

Consolidated Results – Q4 FY15

  • Total revenue (including other income) at Rs. 1,434.2 crore for the quarter ended March 31, 2015, as against Rs. 1,286.5 crore for the corresponding previous period, an increase of 11%. This growth has been driven by all the businesses of MTO, CFS and P&E. 82% of the revenue is from the global MTO business
  • EBIDTA (including other income) at Rs. 125.0 crore for the quarter ended March 31, 2015, as against Rs. 101.3 crore for the corresponding previous period, an increase of 23%
  • EBIDTA margin for the quarter at 8.7% as against 7.9%, increase of 84 basis points
  • PAT at Rs. 55.5 crore for the quarter ended March 31, 2015, as against Rs. 11.5 crore for the corresponding previous period
  • EPS for the quarter ended March 31, 2015 was Rs 4.4, for a face value of Rs. 2 per share

Consolidated Results – FY15

  • Total revenue (including other income) at Rs. 5,681.4 crore for the year ended March 31, 2015, as against Rs. 4,887.7 crore for the corresponding previous period, an increase of 16%, mainly on account of increase revenues across all businesses of MTO, CFS and Project and Engineering. 83% of the revenue is from the global MTO business
  • EBIDTA (including other income) at Rs. 528.0 crore for the year ended March 31, 2015, as against Rs. 427.8 crore for the corresponding previous period, an increase of 23%
  • EBIDTA margin for the year at 9.3% as against 8.8%, increase of 54 basis points
  • PAT at Rs. 239.9 crore for the year ended March 31, 2015, as against Rs.149.3 crore for the corresponding previous period, an increase of 61%
  • EPS for the year ended March 31, 2015 was Rs 19.0, for a face value of Rs. 2 per share, an increase of 61%
  • The Board of Directors have recommended, subject to the shareholders’ approval, a final dividend @ 70% i.e. Rs. 1.4 per equity share of Rs. 2 each for the financial year ended March 31, 2015. An interim dividend @ 30% i.e. Rs. 0.6 per equity share had already been paid, making total dividend @ 100% Rs. 2.0 per equity share

Resources and Liquidity: As on March 31, 2015, the Networth stood at Rs. 1,908 crore and the Net Debt was at Rs. 421 crore. The net debt to equity ratio of the Company stood at 0.22 as on March 31, 2015.

Business Performance: Allcargo operates primarily in three segments, viz., Multimodal Transport Operations, Container Freight Stations Operations and Project & Engineering Solutions. These are consolidated business segments.

Multimodal Transport Operations (MTO):

  • MTO segment involves NVOCC (Non Vessel Owning Common Carrier) operations related to LCL (Less than container load) consolidation and FCL (Full container load) forwarding activities in India and across the world through its wholly owned subsidiary ECU Line
  • Allcargo is amongst the leading players in the global LCL consolidation market with a strong network across 90 plus countries and 200 plus offices covering over 4,000 port pairs across the world
  • The business clocked total volumes of 4,22,200 TEUs for the year ended March 31, 2015 as against 3,34,870 TEUs for the corresponding previous period, an increase of 26%
  • The total revenue for the year ended March 31, 2015 was Rs 4,774 crore as against Rs 4,149 crore for the corresponding previous period, an increase of 15%
  • EBIT was Rs. 190 crore for the year ended March 31, 2015, as against Rs. 156 crore for the corresponding previous period, an increase of 22%

Container Freight Stations (CFS) / Inland Container Depot (ICD) Operations:

  • This segment operations are involved in import / export cargo stuffing, de-stuffing, customs clearance and other related ancillary services to both, importers and exporters
  • The CFS facilities are located near JNPT, Chennai and Mundra ports
  • The total capacity of the CFSs and ICDs at the end of March 31, 2015 is 5,73,000 TEUs per annum
  • The business clocked total volumes of 2,12,472 TEUs for the year ended March 31, 2015 as against 1,86,598 TEUs for the corresponding previous period, an increase of 14%
  • The total revenue for the year ended March 31, 2015 was Rs 403 crore as against Rs 315 crore for the corresponding previous period, an increase of 28%
  • EBIT was Rs. 109 crore for the year ended March 31, 2015, as against Rs. 96 crore the corresponding previous period, an increase of 13%

Project & Engineering Solutions (P&E):

  • Project & Engineering Solutions segment provides integrated end-to-end project, engineering and logistic services through a diverse fleet of owned / rented special equipment like hydraulic axles, cranes, barges, reach-stackers and ships to carry ODC / OWC cargos as well as project engineering solutions across various sectors
  • The total revenue for the year ended March 31, 2015, was Rs. 530 crore as against Rs. 423 crore for the corresponding previous period, an increase of 25%
  • EBIT was Rs. 75 crore for the year ended March 31, 2015, as against Rs. 14 crore for the corresponding previous period

Recent Awards and Recognitions – FY15

  • Mr. Shashi Kiran Shetty, Chairman of Ecu-Line and Allcargo Logistics has been conferred the Distinction of Commander of the Order of Leopold II by HM King Philippe of Belgium. The decoration is awarded for his remarkable efforts in strengthening economic relations between India and Belgium, notably by creating a significant economic impact in the Antwerp Port by the activities of Ecu-Line and Allcargo Logistics
  • Awarded ‘Asia’s Most Promising Brand’ in the logistics space for 2013-14 by World Consulting & Research Corporation (WCRC), a leading brand consulting firm and KPMG India
  • Featured amongst ‘The Elite 100’ in a special 28th anniversary issue of ‘Dalal Street Investment Journal’, India’s oldest and leading investment magazine, June, 2014
  • Ranked at #209 - ‘Business World’ in the Top 500 companies across India list
  • ‘Business Leader of the Year’ – CHEMTECH’s Leadership & Excellence Awards 2014
  • ‘CFS Operator of the Year and Most Diversified Logistics Company of the Year’ - the Gujarat Star Awards, 2014
  • ‘LCL Consolidator of the Year’ – EXIM’s North India Multimodal Logistics Awards, 2014
  • Awarded as the ‘Best Service Provider’ by D P World Chennai Container Terminal for the second consecutive year
  • ‘Best CFS Operations’ – Indian Chamber of Commerce’s ICC Supply Chain and Logistics Excellence Awards, 2014
  • Best Project Logistics Company of the Year’ and Mr. Shashi Kiran Shetty felicitated with ‘Lifetime Achievement Award’ at the ‘8th Express Logistics & Supply Chain Conclave’
  • ‘Indian Logistics MNC of the Year’, ‘Project Cargo Mover of the Year’ and ‘Women Professional of the Year – Mrs. Shantha Martin’ at Maritime & Logistics Awards (MALA), 2014

Stock Market Highlights – General Information and Shareholding Pattern as on March 31, 2015:

Particulars  
Exchange Code BSE: ALLCARGO / NSE: ALLCARGO
No. of Shares Outstanding 12,60,47,762
Closing Market Price (Rs.)* 329.25
Market Capitalization (Rs. Crore)* 4,150
* As on May 21st, 2015
Particulars No of shares % Holding
Promoters 8,81,34,024 69.9%
Foreign Investors – FIIs, FCs, NRIs and others 3,21,61,321 25.5%
Domestic institutions/ Banks/ Mutual Funds 7,172 0.0%
Indian Public 57,45,245 4.6%
Total - 10,960 shareholders 12,60,47,762 100.0%

About Allcargo Logistics Limited
Allcargo Logistics Ltd., part of The Avvashya Group, is a leading multinational company providing integrated logistics solutions. The company offers specialized logistics services across Multimodal Transport Operations, Container Freight Station Operations and Project & Engineering Solutions. Benchmarked quality standards, standardized processes and operation excellence across all the services and facilities, have enabled Allcargo Logistics Ltd. to emerge as the market leader in all these segments.
The company currently operates out of 200 plus offices in 90 plus countries and gets supported by an even larger network of franchisee offices across the world. Allcargo is today one of India's largest publicly owned logistics companies, listed on the Bombay Stock Exchange (BSE: ALLCARGO) and The National Stock Exchange of India (NSE: ALLCARGO).
Caution Concerning Forward-Looking Statements: This document includes certain forward-looking statements. These statements are based on management's current expectations or beliefs, and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive, technological and/or regulatory factors. Allcargo Logistics Limited is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.

Mumbai: 13 August, 2015 – Allcargo Logistics has announced the acquisition of two additional vessels aggregating 24000 DWT. for its coastal shipping business. Post this acquisition Allcargo now owns a total of five cargo vessels making it one of the largest players in the logistics industry. The main criterion for this acquisition was to cater to the growing requirements not only of coastal shipping but regional trade and commerce as well.

India has over 7,000 km of coastline. Considering India’s demography and strategic location as a global trade hub, the coastline will play a major role in coastal shipping services which lead to efficient, cost effective and time saving mode of cargo transport. With the government increasing its focus on decongesting the exiting road and rail network, coastal shipping will play a pivotal role in India’s growing economy.

Allcargo specializes in moving bulk, break bulk, containerized and project cargo under its coastal shipping business. With many companies realizing the benefits of cargo movement through coastal route, Allcargo is well placed to lead the space and provide best in class services. Allcargo’s unique capability as an integrated logistics service provider is main reason it is a leader in the industry. Allcargo also specializes in NVOCC wherein it is the one of the largest LCL consolidators in the world. Allcargo is a leader CFS & ICD operations pan India with six world class facilities as well as a leader in the project logistics and equipment hiring space. Allcargo is also one of the fastest growing service providers in the contract logistics space. With these capabilities, Allcargo is well placed to provide an unparalleled coastal shipping service which adds value to its customers’ logistics requirements.

Speaking on the acquisition Founder & Chairman of Allcargo, Mr. Shashi Kiran Shetty said: “As an organisation, we believe that India’s economy will need a more efficient and time saving mode of transportation, to keep pace with its growth. Coastal Shipping is the solution for this opportunity. We are helping our customers to create logistics solutions through coastal shipping, making their cargo movement more seamless and cost effective”.

About Allcargo Logistics Ltd
As part of the Avvashya Group, Allcargo Logistics is a global leader in integrated logistics headquartered in India. Allcargo is India’s largest logistics company in the private sector listed on BSE & NSE. Its services comprise global Multimodal Transport Operations (NVOCC, LCL & FCL), pan India CFS/ICD operations, Project and Engineering Solutions (Project Logistics & Equipment Hiring Solutions), Ship Owning & Chartering and Contract Logistics services. Allcargo’s consolidated turnover as of March 2015 stood at INR 5,681/- crore.

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World Economic Forum has identified Allcargo Logistics as one of the 26 Indian companies in its Global Competitiveness Report 2016-17.

India’s competitiveness has improved as the country rose to the 39th rank from last year’s 55th rank, among 138 countries. 

Allcargo has been named with the likes of Ola cabs, Apollo Hospitals, Dabur India, Forbes Marshall, Parle Agro, Paytm, WNS and many more.

These companies have been pivotal in catapulting India’s ranking.

This is a rare moment of recognition.

Read full article here

 

World Economic Forum has identified Allcargo Logistics as one of the 26 Indian companies in its Global Competitiveness Report 2016-17.

India’s competitiveness has improved as the country rose to the 39th rank from last year’s 55th rank, among 138 countries. 

Allcargo has been named with the likes of Ola cabs, Apollo Hospitals, Dabur India, Forbes Marshall, Parle Agro, Paytm, WNS and many more.

These companies have been pivotal in catapulting India’s ranking.

This is a rare moment of recognition.

Read full article here

Allcargo Chairman seeks to keep the momentum going.

It is another tough year for the container shipping industry and businesses affiliated with it, but Allcargo Logistics seems to be rising above the doom and gloom.

Downoad the complete PDF of this article here - Containerisation International

Founded in Belgium in 1987, ECU Worldwide (erstwhile ECU-LINE) the company was eventually acquired by Allcargo Logistics in 2006. Some seven years later Allcargo Logistics went on to take over Econocaribe a leading LCL consolidator in the US. Through these acquisitions strengthened the company’s operations across the globe. In its latest move Allcargo Logistics has rebranded its global subsidiaries, ECU-LINE, Econocaribe and China consolidators to ECU Worldwide with the tagline “Geography Simplified.”

Download the complete PDF of this article here - Asia Maritime

The idea that the home of the world's biggest neutral non-vessel-operating common carrier is found in India is still surprising a decade after Mumbai-based allcargo logistics acquired ECU-Line, now ECU Worldwide.

Download the complete PDF of this article here - American Shipper

Lloyd’s List Asia Awards, 2016, one of the most coveted awards in the Asian shipping and logistics industry felicitated Allcargo Logistics with the ‘Logistics Award’ at the awards ceremony held on 20th October, 2016 at Shangri-La Hotel, Singapore.

The Lloyd’s List Award series recognises the industry’s successes, setting a benchmark for excellence while rewarding innovative ideas and concepts that have pushed the boundaries of what is possible. Lloyds List Asia, which is a part of Maritime Intelligence, recognises best of logistics professionals and companies in Asia.

Allcargo was adjudged as a winner by a jury of global industry leaders for its excellent end to end logistics services and its dedicated focus on using local talent to find results in a challenging market. The North East Agra project, a first of its kind power project undertaken by Projects and Engineering Solutions Team was submitted as a nomination to substantiate Allcargo’s capability of delivering maverick projects efficiently.

Besides, the 2016 Asia awards’ judges have considered the difficult market conditions faced by the idustry globally, which has made this achievement for Allcargo all the more noteworthy.

The award was collected by our representatives from the Singapore office.

Shipping & Logistics industry’s largest awards ceremony, Maritime And Logistics Awards, 2016 was held on 28th September, 2016 at St. Regis Hotel, Mumbai. Over 500 representatives from Shipping Lines, Logistics Service Providers, Transporters, CHAs, Industry Associations, Ports, as well executive management of private sector companies, got together, to felicitate and recognize the achievements of organisations through the year.

Leading organisations were awarded across varied categories for their performance in the logistics space. As one of the Guests of Honour, Mr. Adarsh Hegde, Joint Managing Director, Allcargo Logistics addressed the gathering and appealed to the industry to work together to overcome the difficulties that it is currently facing.

Mr. Hegde, also introduced ‘Nipun’, Avashya Foundation’s noble initiative of imparting skills to the youth belonging to the lower strata of the society and help them build careers, leading to financial stability. This was followed by a short AV of Nipun. Mr. Hegde, latter also said that it is essential for organizations to focus on skill development and invited on stage Dr. Nilratan Shende, DGM – CSR, Allcargo Logistics and one of the beneficiaries of Nipun, Mr. Akash. While Mr. Shende imparted the message of importance of organizations being socially responsible, Mr. Akash explained how his life changed for better after being trained at Nipun and expressed his gratitude for helping him build a better career. 

At the felicitation ceremony, Allcargo was conferred with two awards for outstanding business performance. Below are the awards we have received.

  1. Logistics Super-brand of the year
  2. Heavy Lift/Project Mover of the Year

Mr. Adarsh Hegde was felicitated as ‘Dynamic Logistics Professional of the Year’, for his contribution towards the industry.

The logistics sector has benefited immensely from the emergence of organised retail, increase in foreign trade, and the Make in India campaign that is aimed at turning the country into a manufacturing hub. Shashi Kiran Shetty, founder & chairman of Allcargo Logistics Ltd tells Ateeq Shaikh that the growth in online shopping, which has so far helped logistics, is set to accelerate in the coming years and will put significant pressure on the sector. This will mean significant investment in technology, quality of people, delivery network to manage small infrastructure, says Shetty. He also discusses the challenges faced by logistics companies due to lack of proper infrastructure, which increases the logistics cost in the country to around 10-15% as compared to 3-4% for other countries. But Shetty believes that India still has a big opportunity. The implementation of GST will open up a plethora of opportunities for the logistics players and make inland transport more cost effective.

 

Q) What are the strengths and weaknesses of third party logistics (3PL)?

A. To list out, strengths are the improving end-consumer services provided. Secondly, third party logistics immensely helps companies in reducing their capital investment and among the last points, it improves the overall efficiency. The disadvantages are the need to share confidential information with the 3PL service provider and difficult to establish a cost-effective partnership.

 

Q) With e-commerce sector mushrooming, how has the logistics changed in the country and how much has it has contributed to the overall industry growth? How do you see the sector evolving in the coming years?

A. India's e-commerce market is likely to touch $38-billion mark in 2016, a massive jump over the $23 billion revenues clocked by the industry in 2015. E-commerce will contribute to 70% of their total revenue. Online shopping is picking up fast in all the major cities. With increasing penetration of the Internet and mobile commerce, online shopping is expected to penetrate into tier 2 and tier 3 markets. This growing demand will put significant pressure on logistics - to ensure that the right product is delivered in the shortest time at the lowest possible cost. This will mean significant investment in technology, quality of people, delivery network to manage small infrastructure (good quality warehouses). Logistics companies need to create operating models, infrastructure which can scale up during seasons and scale down during non-seasons.

 

Q) In India, the overall logistics costs remain high as compared to global standards. What are the reasons? How can the costs be reduced? What measures are needed from the industry players as well as from the government?

A. As a country, we are facing trade deficit as China is our largest trading partner and their economy is not doing well. India has been facing its ripple effects. But, we are bracing up and are well placed to meet domestic demands as well as demand from the other countries. In fact, logistics will play an important role in Make in India. India's poor infrastructure has been a challenge. But the new government is addressing it with new initiatives. The results will take some time to show. GST will also help as stoppage and fuel consumption should help in removing bottlenecks.

 

Q) Despite various initiatives like Make In India, law reforms, ease of doing business, developing waterways, dedicated freight corridor, etc, the manufacturing sector is still struggling. How has it impacted the logistics industry?

A. The Indian logistics sector has benefited immensely from the emergence of organised retail, increase in foreign trade and India becoming the manufacturing hub. However, it continues to face challenges due to lack of proper infrastructure which is one of the major deterrents to its growth. The infrastructural bottlenecks increase the logistics cost of the country to around 10-15% compared to other countries where it is only 3-4%. Besides, the lack of trained human resources is another challenge for the sector. Saying that, with the current impetus of the government, we believe that India still has a big opportunity compared to other countries.

 

Q) How will Goods & Services Tax change the dynamics of the logistics industry?

A. At the moment, a majority of India's logistics challenges are related to wastage of time, fuel and investments due to multi-level taxation, regulations, policies and approval mechanism between different states. Today, from a business perspective, each state is a different country when it comes to moving EXIM (export/import) cargo or any other product within India. The implementation of GST will not only bring efficiencies across all the businesses but will also open up a plethora of opportunities for logistics players like us. For logistics players like us, the introduction of GST would allow us to aggregate state-based warehouses into large, regional warehouses that offer cost and operational efficiencies in big markets. As logistical inefficiencies and primary transport costs reduce, the hub and spoke model will proliferate, improving service levels. This will make inland transport more cost effective. GST is expected to facilitate removal of check posts at state borders, which will cut travel time and aid faster road freight.

 

Q) What kind of growth is anticipated with the implementation of GST?

A. The key verticals benefiting from GST would be our vertical of contract logistics and logistics park that is Avvashya CCI and our logistics park project at Jhajjar. With the GST becoming reality, we expect to substantially improve the efficiencies in our contract logistics business segment and transportation & equipment business in terms of transportation turnaround time, lesser number of check post and operational expenses rationalisation, fewer number of warehouses by the companies, keeping in mind purely the commercial thing rather than the taxes of the different states.

 

Q) With the changing scenario in the logistics sector in India, what will be the share for logistics for each mode of transport - road, rail, air, and inland waterways by 2020?

A. Many research reports claim numbers. Given the current fragmented state of logistics, it is difficult to comment on the exact percentage. However, with the government announcing various initiatives in almost every sector, we are confident that each of the segments will witness significant growth opportunities in the coming years.

A container customized to accommodate a bar, DJ console and lights, signifies that we at Allcargo and ECU Worldwide have lots of fun in what we do and love to share the fun with our customers. The Funtainer took months to get its shape. It will set out on a journey across the world, to visit major ports in major cities across US, Europe, Americas, Australia, Africa and Asia to connect us with our customers in these regions.

Funtainer’s next destination in Antwerp Belgium. Our mascot Captain Funtastic will soon begin his journey to bring Funtainer to connect with each one of you, our business associates and customers for a grand party. 

The fun-filled Funtainer unveiling event opened with thrilling aerial acts. The event saw 400+ customers of Allcargo and ECU Worldwide participate and network with each other.

Dr. Shashi Kiran Shetty, our Chairman, welcomed the guests with a warm speech and set the stage open for vibrant performances. Amidst the 3D mapping, the Funtainer, was thrown open for people to enter it and click selfies.

The Funtainer was prepared at our CFS near JNPT. What first looked like a normal 20’ container, was transformed into this cool container with elements of entertainment. Thus the name Funtainer. Our guests were treated to scrumptious food and drinks while a band performed and engaged with them. We have also partnered with Grow Tress to plant trees in the name of every guest as a return gift. Token certificates of this initiative were given away to all the guests who participated in the Funtainer launch event.

Bringing you some glimpses from the event as it progressed.

Captain Funtastic will soon set out with the Funtainer for Antwerp, Belgium.

Introduces the Tagline ‘Geography Simplified’ to Compliment the Global Leadership and Extensive Presence ECU Line, one of the global leaders in NVOCC, a 100% subsidiary of Allcargo Logistics Ltd, today announced the global roll out of its new corporate brand identity ‘ECU Worldwide’ with the tagline ‘Geography Simplified’. ECU Worldwide Chairman Shashi Kiran Shetty said, ”The name ECU Worldwide heralds the start of a new chapter. Our new identity is committed to consistently creating value for customers by providing best-in-class services across continents. The integration of new services, technology, global best practices and professional expertise shall re-define the brand experience for our stakeholders.” “This is in line with our vision to become a USD 2 billion revenue organization by 2020, which propels us to constantly raise the bar and create a dynamic and exciting transformation for our organization,” added Mr. Shetty. The main objective behind rebranding is to change the perception of the company offering end-to-end services and a global player providing value-added services to the customers being an ‘integrated service provider’. The tagline ‘Geography Simplified’ too shows a more product agnostic approach complimenting the group’s undisputed presence through a comprehensive network of 300+ offices located in over 160+ countries. With the rebranding, ECU Worldwide will also deliver new offerings such as Full Container Load (FCL) and Air Freight. Its parent company Allcargo Logistics, leading integrated logistics player in India is listed on both Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).