Mumbai: Logistics operator Avvashya Group Thursday said it has formed a new company by consolidating three of its businesses.
The new venture, to be called Avvashya CCI Logistics Pvt. Ltd brings together its warehousing division CCI Logistics Ltd, Hindustan Cargo Ltd and the contract logistics division of Allcargo Logistics Ltd, a listed group company. Avvashya CCI Logistics will specialize in end-to-end logistics, contract logistics and supply chain management, the company said in a statement.
Avvashya Group is the holding company of these companies engaged in port logistics, contract logistics and third party logistics (3PL) including warehousing. Indian companies spend an average of 6-8% of sales towards logistics.
“As per the agreement reached between the promoters of Allcargo Logistics and CCI, Allcargo Logistics will hold 62% and CCI promoters will hold 38% share in the company,” Avvashya said in a statement.
Avvashya CCI will not only consolidate the existing businesses but also help in delivering cost and service efficiency. The combined entity will help to create technology-enabled solutions with 1.5 million sq.ft of operating warehousing space across more than 20 strategic locations in India.
Allcargo’s contract logistics division serves automobile, engineering, e-commerce, fashion and retail companies.
“Avvashya CCI will play an important role in offering composite services to valued customers in forward integration and backward integration logistics services delivering, reduced turnaround time due to efficient warehousing, storage, and last mile delivery which will provide a complete package of service to customers under one roof,” the company said in a statement on Thursday.
Shashi Kiran Shetty, founder, and chairman of Avvashya Group said Indian logistics market is expected to grow at the rate of 6-7% CAGR (compounded annual growth rate) to $160 billion by 2020.
Allcargo shares rose 0.95% to close at Rs.190.95 on the BSE on Thursday while the benchmark 30-share Sensex fell 0.80% to 27,835.91 points.
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Source: Mint
