Avvashya Group firms, Allcargo Logistics and ECU Worldwide, today announced a joint venture with CCI Logistics for consolidation of its contract business.
"As per the agreement reached between the promoters of Allcargo and CCI, Allcargo will hold 62 per cent and CCI promoters will hold 38 per cent share in the company," Allcargo said in a statement.
The new entity, Avvashya CCI Logistics Pvt Ltd, is a joint venture between three business entities -- Warehousing division of CCI Logistics Ltd and Hindustan Cargo Ltd and the Contract Logistics Division of Allcargo Logistics.
Allcargo's Contract Logistics division offers services to companies in sectors like automobile, engineering, e-commerce, fashion and retail since last few years.
"The newly formed entity will aim to create business synergies by taking the strengths of all the portfolios to make an enterprise that will stand out as a powerhouse in integrated logistics business specializing in end to end logistics, contract logistics and supply chain management," the statement said.
The company said the combined entity will help to create technology enabled solutions value offering to the customers with over 1.5 million sq ft of operating warehousing space across more than 20 strategic locations in India.
It said the Board of Avvashya CCI will be headed by Shashi Kiran Shetty as chairman, Naresh Sharma as managing director while the board of directors will comprise Adarsh Hegde, Satish Sharma and MP Bansal.
The key management team of the company will comprise of V Balaji as CEO-Contract Logistics and Deepal Shah as CEO- International Logistics.
Shetty, Founder and Chairman of Avvashya Group said: "Indian logistics market is expected to grow at the rate of 6-7 per cent CAGR to USD 160 billion by 2020. The formation of ACCI paves the way to deliver excellent growth and profitability."
Director, CCI Logistics, Naresh Sharma said "The joint venture will not only help us integrate our front and backend operations but will also help us expand our reach across geographies.
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