Allcargo Logistics completes acquisition of 30% stake from KWE in Gati subsidiary Breakthrough

Allcargo Logistics completes acquisition of 30% stake from KWE in Gati subsidiary Logistics Limited has acquired a 30% stake in Gati-Kintetsu Express (GKEPL) for Rs 406.71 crore. The deal, which includes purchasing shares from KWE-Kintetsu World Express and KWE Kintetsu Express India, gives Allcargo and Gati 100% stakes in GKEPL. The acquisition aligns with Allcargo’s strategy to focus on high growth opportunities in express and contract logistics in India and simplifies the corporate structure. The move aims to derive synergies from contract logistics and express distribution. Allcargo Logistics has decisively strengthened its hold over the express logistics domain by finalizing

The acquisition of a 30 percent stake in Gati-Kintetsu Express Private Limited (Gati-KWE) from Kintetsu World Express (KWE), thereby consolidating its ownership along with Gati Ltd.’s existing 70 percent and simplifying the corporate structure to provide greater strategic clarity and agility. This stake, comprising 1.5 lakh shares and valued at approximately ₹406.7 crore, included 26 percent acquired from KWE-KWE (S) Pt. Ltd. and 4 percent from KWE Kintetsu Express (India), and its completion on June 8, 2023, followed the signing of the share purchase agreement in March The move marks a key milestone for Allcargo’s ambition to unify its logistics offerings under a single umbrella.

Merging its global multimodal capabilities especially in LCL consolidation through ECU Worldwide with Gait’s deep domestic express delivery reach, spanning nearly 19,800 PIN codes across 735 of India’s 739 districts With this transaction now complete, is poised to offer customers an unmatched integrated logistics experience, blending its ocean-side strengths including container freight station (CFS), inland container depot (ICD), project logistics, and contract warehousing with Gait’s best-in-class first- and last-mile surface and air express distribution services The integration unlocks competitive synergies: customers can now access a truly unified platform managing everything from international LCL forwarding to door-to-door deliveries across India, supported by a scalable, digitally enabled infrastructure. Indeed, operational transformation has already begun in concert with digital enhancements.

Via platforms like ECU360 v2.0 and technology systems at Gati, along with digital backlog improvements in routing, tracking, and customer engagement The strategic realignment has been anchored by leadership consolidation and organizational change: Allcargo’s Chairman, Mr. Shashi Kiran Shetty, has also assumed leadership as Chairman of Gati; Adarsh Hegde, Joint MD at Allcargo, now leads Gati-KWE as Managing Director; and several senior leaders from Allcargo have joined Gait’s board to drive operational excellence, supported by a transformation office in partnership with Alvarez & Marsal Beyond the business benefits, the acquisition allows a unified culture to emerge—something that leadership credits for the unexpectedly smooth post-deal integration, especially under the turbulence of the global pandemic. (Express Logistics)

From a market standpoint, this strategic move elevates Allcargo to a preeminent position in India’s logistics industry. By merging Gait’s pan-India express network—including extensive trucking, last-mile delivery, and warehousing infrastructure with Allcargo’s global portfolio of services, the company has effectively become a one-stop ecosystem covering ocean freight, airborne shipments, multimodal transport, and express logistics The express logistics sector in India, already valued in the tens of thousands of crores, amplifies the long-term revenue potential of the unified entity, which envisions itself not just as a service provider but as a logistics enabler on par with global peers

Moreover, the transformation isn’t limited to scale it extends to sustainability, digitalization, and operational efficiency. Gati and Allcargo’s combined entity is embracing alternative-fuel vehicles, cloud migration for scalability, AI and IoT-driven logistics optimization, and tailored solutions for MSMEs and D2C brands, reinforcing its vision of being both future-proof and customer-centric In sum, the acquisition of the remaining 30 percent stake from KWE solidifies Allcargo Logistics’ strategic vision creating a fully integrated logistics powerhouse with seamless end-to-end capabilities, transformational leadership, state-of-the-art in (Allcargo), technology, and a nationwide footprint. This move not only positions the company to serve India’s growing logistics demand but also strengthens its readiness to support global shippers with a unified, efficient, and scalable supply chain engine.