CCI, Allcargo form JV to gain from GST rollout

Allcargo will hold 62% stake in the company, while the promoters of CCI, balance 38%. The new company has been named Avvashya CCI Logistics Private Limited

Warehousing division of CCI Logistics Ltd– Hindustan Cargo Ltd– and contract logistics division of Allcargo Logistics on Thursday announced a logistics joint venture — Avvashya CCI Logistics Private Limited. Allcargo will hold 62% stake in the company, while the promoters of CCI, balance 38%. Among the focus areas will be contract logistics space as Goods and Services Tax (GST) has been cleared by the Union government. Shashikiran Shetty, founder and chairman of Allcargo Logistics, said, “The contract logistics opportunity is estimated to be around $5 billion.” This is expected to grow at a faster pace once GST comes into effect. The joint venture is targeting a revenue of around Rs 1,000 crore by 2020 by offering integrated logistics specialising in end-to-end logistics, contract logistics and supply chain management to sectors such as retail, auto-mobile, e-commerce, engineering, pharmaceuticals, etc.
“The Indian logistics market is expected to grow at the rate of 6-7% compound annual growth rate to $160 billion by 2020. This joint venture paves the way for growth,” said Shetty.

Source: DNA