Shashi Kiran Shetty
Chairman and Managing Director
The world has taken giant leaps over the past few years. Possibly at no point inhistory has mankind made such a massive climb on the mountain of progress. Digitalinnovation has not only democratised opportunities but has also given enterprises a newdomain to operate in the virtual one. Enabling these enterprises with the on-groundmovement of goods is the logistics sector which is creating new possibilities forbusinesses.
Propelled by technology and an increase in world trade driven by an increase intrade agreements the global logistics market has grown significantly. It was valuedat USD 9.5 trillion in 2021 and by 2027 it is expected to reach USD 13.3 trillion with acompounded annual growth rate of 5.7% in the intervening years.
The one way across the world
Being in the business of facilitating commerce and trade and bolstering economiesaround the globe Allcargo Logistics consolidated its strengths to create logistics magicfor businesses the world over during FY 2022. The brand which for close to threedecades has come to be identified for its ingenious solutions and customer-centricapproach amalgamated its various businesses across the logistics spectrum to be and dothings one way across the world. The merging of our strengths under the unified aegis ofAllcargo Group could not have come at a better time. As we look back at FY 2020-21 wecelebrate what has been our most successful year to date. It is a testament to thebusinesses we have grown the dreams we are helping come true and the passions we haveignited. Last year Allcargo set its sights far and wide and rose like a phoenix to meetthe diverse requirements of businesses on different shores. These efforts were rewarded bythe market where Allcargo was able to consolidate its leadership across key businesses.Today Allcargo ranks among the top 20 logistics companies in the world.
Doing the right thing at the right time
While it may seem that good fortune caused favourable winds to fill our sails thetriumph of last year can be attributed to anything but a windfall. It is the culminationof various dynamic factors that have been artfully engineered to come together to reaprich dividends by a team for whom customer centricity and commitment to excellence havebecome a culture. What has worked in our favour is firstly bold ambitions and secondlythe skill and expertise with which we have navigated several global challenges andmitigated their impact to a great extent. During the first year of the COVID-19 pandemicwhen businesses became conservative we took on a group-wide transformation project incollaboration with McKinsey & Company which is compounding its benefits today. Ouroffices around the world continue to recalibrate processes and operations in order to dothings one way across the globe. Strengthened by a single-minded focus across geographiesI am pleased that our various integrated logistics businesses have done exceptionallywell.
A remarkable business performance
Our International Supply Chain - ISC division has excelled both overseas and in Indiato reinforce our position as the world's LCL consolidation leader. The year also sawAllcargo move up the ranks to become the world's 18th largest ocean freight forwarder andcreate history in Indian export consolidation with the highest ever export consoles in amonth from Nhava Sheva Maharashtra. Backed by our state-of-the-art digital logisticsplatform ECU360 we are also enabling our freight forwarding partners and associates toexplore the potential of technology and keep pace with changing times.
Long recognised for exceptional quality and value for customers the container freightstation (CFS) business also saw stellar growth. Our CFSs have catered to the evolvingneeds of the market to deliver exceptional value. Whether it is through innovativeproducts and services or the implementation of digital portals like myCFS the CFS-ICDdivision has been making inroads into new markets and opportunities.
Having set world-class standards for facilities operations and customer service ourcontract logistics division especially chemical warehousing has been winning praise fromall quarters from juries and customers alike. The approach of leveraging new-agetechnology in a manner that enhances human capital has augured well for both the businessand our customers. Further we expanded our nationwide footprint by building world-classlogistics parks in Farukh Nagar Haryana and Malur Karnataka. At 100 acres each theyhold the distinction of being the largest in the country. Built to internationalstandards these strategically-located logistics parks are enabling businesses to make themost of the e-commerce boom that is likely to drive consumption and consequently thedemand for Grade-A warehousing. The coming years we would see the Express and Warehousingsegments grow at the fastest pace within the logistics sector and as one of the largestplayers in the segment we are excited to be at the forefront of this growth. Moreoverour express distribution and domestic air freight services in collaboration with Gati arealso seeing sturdy growth and customers across India have reinforced faith in Gati'sunmatched network and services. Gati has been certified as the Most Trusted ExpressServices Domestic Brand 2022. Steered by exceptional leadership Gati has undergonesignificant transformation and is on its way to regaining its glory as India's undisputedleader in express distribution. The air freight wing of our global subsidiary ECUWorldwide has focussed on consolidating itself over the past year and is prepared tospread its wings to reach for higher skies in the new business year.
Steering us to success across verticals have been a number of critical decisions thatwe have taken to capitalize on opportunities and to strengthen Allcargo's presence theworld over. The Joint Venture with Nordicon the leading ocean freight services providerin the Nordic region with extensive rail freight capabilities has strengthened ourpresence in the Nordics. While closer home we consolidated our businesses by exitingnon-core ventures whose assets were sold off with the objective of becoming asset-light.
Further our decision to demerge into three public listed companies has been receivedwell by stakeholders who stand to significantly gain from this strategic move. It willempower the businesses to gain strategic independence and financial and operationalflexibility enabling greater individualized focus to manage strategize and analyse foraugmented growth.
Our people our strength
Making all our feats possible are the efforts of an ingenious team of professionals.Armed with experience and expertise they deliver excellent solutions that augment valuefor customers. The team has been enriched with the addition of industry-leading talentacross offices in the world with a number of CXO-level experts and critical managersjoining Allcargo Group to lead us to newer victories by facilitating growth and digitaladoption. With our workforce comprising of more than 50% women in our global subsidiaryECU Worldwide we are committed to replicating this healthy model of gender balance inIndia as well. The Restart programme launched during the year is slated to be agame-changer. Aimed at bringing in more diversity women who have had to take a break fromtheir careers for personal and domestic reasons have the opportunity to ease back intothe workplace by taking up full-time or project-based roles.
As the pandemic has caused us to reassess our relationship with our physical andemotional well-being various initiatives have been implemented to not only create betterwork-life balance but overall improve the quality of our team's physical and mentalhealth. After all the team is an aggregate of individual members and at Allcargo webelieve we are one family.
Digital innovation has drastically altered the way we think act live and do business.The future is digital and to support the digital aspirations of businesses we haveinvested heavily in our digital play to drive efficiencies across the board during FY2021-22. Allcargo Group has built digitally-enabled companies and it is a testament to ourfaith and focus in technology that all our digital interfaces put together over 55% ofall export bookings are now executed through digital platforms. Our intensive efforts toensure the safety of our stakeholdersRs interests have been recognized with ISO27001certification for the robustness of our data cybersecurity and information technologyinitiatives. The endeavour to leverage the potential of data science digitalization andnew-age technologies will certainly gain more momentum in the coming years. FY 2021-22also stands out as the landmark year wherein Allcargo's entire finance function spreadacross continents embarked on a transformation project aimed at optimizing standardizingand simplifying processes to bring in enhanced efficiencies. All of these diversestrategic measures form the architecture for our sustainable growth as a digital-firstcustomer-centric and agile logistics company delivering excellence to customersworldwide.
Committed to a sustainable tomorrow
Even as we keep pushing boundaries to scale new heights on the business front AllcargoGroup is ever committed to building a sustainable future. This is reflected in the strongdedication to Environmental Social and Governance (ESG) and Health Safety Security andEnvironment (HSSE) norms from our Board of Directors who continue to guide us on this aswell as our team members who drive our initiatives ahead.
Our people-centric policies and adherence to the highest forms of corporate governancecontribute to making Allcargo a Great Place to Work. It is a matter of great pride that wehave achieved an incredible score of 83 which is 6 points higher than our previous scoreof 77.
We are taking efforts to reduce our impact on the environment by optimizing ouroperations and being eco-conscious in our approach towards our logistics assets as well asour daily requirements. Initiatives that enable our team members to participate involunteering activities and make a difference to society have always received enthusiasticsupport and participation. Moreover our CSR arm Avashya Foundation carries out a numberof inclusive programmes that reach out to communities help increase the earth's greencover empower women and youth enable healthcare for the underprivileged and make adifference across six focus areas Education Environment Health WomenEmpowerment Disaster Relief and Sports. Each of these initiatives is designed to createtangible change in society and the environment. An instance of this would be our Maitreeprogramme under whose aegis we have planted more than 710000 trees to not only helprestore the ecosystem but also help diversify the incomes of tribal farmers in interiorMaharashtra. Together we have made a difference in over 360000 lives till date andcontinue to leverage our network of NGO partners to reach out to many more beneficiariesyear after year.
The way ahead
As India takes forward steps to become an Atmanirbhar Bharat and grow into a USD 5trillion economy that emerges as a global trade hub and logistics powerhouse AllcargoGroup is geared to support the nation with an international supply chain expressdistribution and contract logistics solutions that create logistics magic worldwide.
In the months and years that follow we look ahead to powering collaborative businessstrategies and decisions that co-create value for customers employees shareholders andall our stakeholders.
|Shashi Kiran Shetty |
|Chairman Allcargo Logistics |