Allcargo board approves split of CFS / ICD, real estate activities


The board of directors of Allcargo Logistics on Thursday approved the split of its CFS / ICD and real estate businesses, aimed at creating strategic business ventures to drive growth through separate opportunities. As part of the proposed spin-off program, the equipment and real estate rental activities will be transferred to TransIndia and the CFS / ICD (container freight stations / inland container depot) activities to Allcargo Terminals Limited, a-t -he declares. In addition, as part of the split, all three companies will have mirror shareholdings, which will not result in any change in shareholder rights for each entity, Allcargo said. After the split, shareholders will get 1 share each of Allcargo Terminals and TransIndia Realty & Logistics Parks for each share owned by Allcargo Logistics, he said, adding that the 1: 1 ratio will avoid split allocation and will benefit all shareholders.

The board of directors of Allcargo Logistics Ltd, at its meeting on Thursday, approved the split of the CFS / ICD business into Allcargo Terminals Limited and the split of equipment rental, logistics parks and other real estate assets in TransIndia Realty & Logistics Parks Limited (TransIndia), the company said. “The company is proud of its heritage and leadership, which has led to sustained long-term growth.

“Now we have business units that have reached the right scale and are looking for independence to drive the next phase of growth. The (spin-off) program will facilitate the strategic growth of the split businesses and strengthen the business, ”said Shashi Kiran Shetty, President of Allcargo Logistics, ECU Worldwide and Gati Ltd.

The company has seen a 15-20% CAGR growth in revenue and EBITDA over the past 15 years, and this split will lay the groundwork for the next phase of growth by providing independence for businesses. , he added.

This strategic move will position the company to accelerate growth across all businesses by creating independent business ventures, with more precise management focus, better access to the right capital, and greater operational and financial flexibility, Allcargo said.

At the same time, Allcargo Logistics will continue to be the leader in international supply chain, express logistics and contract logistics activities, with more emphasis on digitization, the company said. The resulting company Allcargo Terminals will be the market leader for CFS activities in India and will continue to expand its presence in ICDs, the company said in a statement. Five of Allcargo’s seven facilities are already leased and the resulting new structure will make the seven CFS / ICDs completely lightweight, positioning the company strongly to drive growth with a high return on capital employed, he added. By moving the equipment and real estate rental business to TransIndia, it will create a unique portfolio of premier Class A warehouses and other assets leased to reputable clients, he said. The company will also own the shares of the joint venture with Blackstone, he said, adding that after the split, the company would have the opportunity to attract the right pools of capital as Class A warehousing is very important. demanded and TransIndia’s capabilities will provide opportunities. for robust growth.

Part of the Avvashya group, Allcargo Logistics Limited is a global leader in multimodal logistics solutions with Allcargo Belgium NV, operating the ECU Worldwide network, a global market leader in sea freight consolidation. Nationally, Allcargo is the market leader in container freight stations and is one of the leaders in express logistics through its subsidiary Gati Ltd., in addition to having a strong presence in contract logistics and other activites.

(This story was not edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


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