Allcargo Gati projects 40% rise in shipments this festive season

Logistics company Allcargo Gati on 23 September announced it is bracing for a 20% to 40% surge in shipment demand this festive season, due to a rise in e-commerce, quick-commerce, and overall consumer spending.

To manage the sharp rise in volumes, the company is adding 40,000 sq. ft. in Bengaluru, 17,000 sq. ft. in Kolkata, and 70,000–1,00,000 sq. ft. in Chennai with further plans to add 1,20,000 sq. ft. in Kolkata, the company said in a press release.

“By combining our new-age technology-driven operations with proven expertise, we have created the required bandwidth to cater to the festive demand spike,” said Ketan Kulkarni, MD and CEO of Allcargo Gati Limited.

He also noted that recent GST revisions are proving beneficial for express logistics players by improving cost efficiency and enabling faster deliveries.

On the manpower front, the company is deploying over 9,000 employees, with 4,500 dedicated to the e-commerce sector. Seasonal hires are undergoing intensive training, supported by performance-linked incentives to ensure efficiency and retention during the rush.

The company's strategy is also bolstered by investments in technology and a recent move to join the government-backed Open Network for Digital Commerce (ONDC), enhancing its digital footprint and service capabilities across 735 districts.

Shares of the company were trading lower in the afternoon session, as of 1:51 PM, the Allcargo Gati stock was down 0.71% at Rs 61.40 per share.