Allcargo Logistics made a joint venture with the CCI Logistics to create a company which will cater every kind of logistics requirement of the market. The joint alliance is primarily aimed to reap the benefits from the upcoming Goods and Service Tax (GST) in India. The JV will focus on the contract logistics category which will have a great potential after the Government of India clears the GST Bill.
Members of the JV
In this joint venture, Avvashya Group’s Allcargo will hold 62 percent of the share, while the rest 38 percent will be owned by the CCI Logistics. The alliance is being formed by the Contract Logistics part of Allcargo Logistics, Hindustan Cargo Limited and the Warehouse division of the CCI Logistics. Hindustan Cargo Limited is a daughter company of Allcargo Logistics. The joint venture is named as Avvashya CCI Logistics Private Limited.
Benefits of the new alliance
The new entity is formed by combining the bests of each partner. Allcargo has one of the best contract logistics services in India. It has various clients from the vast sector of the consumer industry, ranging from e-commerce and fashion to retail and automobiles. On the other hand, the CCI Logistics have some of the most advanced warehouses in the country.
The Hindustan Cargo Ltd. specializes in logistical technology and human resources. The joint alliance of these companies will have enough potential to dominate almost every sector of the logistics business ranging from handling the supply chains, providing end to end service and contract logistics.
Prospective of the latest Avvashya CCI Logistics
The newly formed Avvashya CCI Logistics Pvt Ltd boasts over 1.5 million square feet of warehouse storage spread across 20 prime locations in the country. The company aims to provide technologically advanced all-round solutions to its prospective clients.
Allcargo founder Shashi Kiran Shetty mentioned that the country’s logistical market is set to grow at a compound rate of 6-7 percent per year and is expected to reach $160 billion within 2020. He expects that this joint venture will play a significant role during this growth.