Allcargo ropes in turnaround experts Alvarez and Marsal to revive logistics company Gati

MUMBAI: Allcargo Logistics has appointed turnaround expert Alvarez and Marsal to revive logistics company Gati, in which it acquired 46.83% in March.

Alvarez and Marsal will also help in integrating Gati into its new majority shareholder, Allcargo chairman Shashi Kiran Shetty told ET in a recent interview.

Additionally, Allcargo has appointed McKinsey & Co to chart out a path for the new normal post the Covid-19 crisis, which will include greater dependence on digital strategy, among other things.

Shetty said Gati’s shipment volumes fell to 5% of last year’s figure in March and the beginning of April. The govt has allowed transport of all goods — essential and non-essential — since then, giving some respite to logistics companies. Gati’s revenue is now at about 25% of the previous year’s figure.

Shetty said sectors such as logistics, supply chain, hospitality and aviation deserve much more than the stimulus announced. He said the government should back salaries to employees, instruct banks to push back loan repayments by six months and not charge interest. Road tax and insurance premium should be deferred for six months.


Shetty said truck drivers shouldn’t face harrassment from police and traffic officials, a constant during the lockdown and and key reason for supply chain disruption. Transporters, drivers and labourers are now reluctant to return. But Shetty said Allcargo has done its bit by accomodating 3,000 of Gati’s labourers at its premises.

Allcargo is trying to find out new ways of doing business, in its freight forwarding and other businesses, adding that air and sea cargo operations would be integrated so shipments not going via China would air routed through Dubai.


READ  Hoopy raises funds from Lead Angels, Venture Farmer

Leave a Reply