Logistics is the backbone of any economy. Hence, growth in the sector is indicative of growth in the country. In a post pandemic world where economic activity has picked up, it is reassuring to note the growth of India based, global logistics conglomerate, Allcargo Logistics.
Known for providing world-class, end-to-end integrated logistics services and global multimodal transport services, Allcargo’s revenue growth for FY 2021-22 has broken its own previous records in its nearly thirty year history of creating logistics magic.
The company registered an astounding 91% growth in its topline, crossing a landmark INR 20,000 Cr, and a reported EBITDA of INR 1,516 Cr. Consequently, the PAT trebled to INR 900 Cr. These numbers are a testament to the logistics leaders’ market leadership, and ingenuity, setting the stage for the next phase of growth.
The right environment
Last year, after a hiatus of nearly two years and the deadly second wave of COVID-19, the economy and businesses were eager to open up. Such businesses were in need of robust and reliable logistics services to help them emerge stronger than before. Further, 2021 was also an exceptional year of the entire shipping industry. Seeing the opportunity to support businesses, Allcargo capitalised on its strengths across verticals – CFS-ICDs, NVOCC, express distribution, contract logistics, logistics parks, and equipments to create value for customers.
In addition to the right opportunities which were capitalised on, this success is the culmination of various strategic decisions taken by the leadership such as digital investments, inorganic growth through new ventures and mergers and acquisitions in different geographies, strategic divestment to go asset light in some verticals, and the focussed dedication by an expert team of professionals.
“The Company’s record performance is an outcome of sustained strategic initiatives over the last few years. Our sharp focus on technology has benefitted us in many ways, be it using data science and automation to drive optimization, or digital platforms to serve customers better. Alongside, our market leading operational capabilities have allowed us to generate strong cash flows and profits also, besides exceptional growth in revenue. This approach has attracted business leaders across the world to join our management team, positioning us well to drive the next phase of asset light growth. Further, the recently announced demerger will provide strategic independence and financial flexibility to businesses boosting growth in the long term,” says Mr Shashi Kiran Shetty, Chairman, Allcargo Logistics, ECU Worldwide and Gati Ltd.
Bolstering this success is a dedicated team, which works with single-minded purpose to unleash value for customers. In this quest, the team has actively sought out opportunities, and looked to make the most of it. This explains the stellar growth across verticals for the business.
A strong sense of ownership, contributes to this success. It is due to this very same flexibility that allows one to take onus, and an enabling eco-system to achieve their true potential that has earned Allcargo a score of 83 in the Great Place to Work survey. It is a remarkable six-point jump from the previous score of 77.
The terrific numbers, while being a culmination of various strategic decisions, is also just the beginning for a new phase of growth for the company, as it looks to create more value for customers, investors, partners and all stakeholders.