Strategic approach to global challenges
As we look back at the past year and strategize for the future, we do so with a global
perspective, positive outlook, and calibrated caution. The global business landscape
continues to face macro-economic challenges, including prolonged geopolitical
uncertainties, issues of port congestion, environmental issues such as the drought in the
Panama Canal, and emerging complexities. Despite these challenges, the International
Monetary Fund (IMF) projects a balanced global growth, with inflation falling faster than
expected in many regions.
India's Promising Growth Trajectory
Global challenges notwithstanding, India stands out with a relatively bright growth
prospect. The IMF has revised India's growth rate at 7% in July 2024. Supported by a
stable governance outlook, development-friendly policies, and nationwide initiatives to
boost manufacturing, infrastructure, and transportation, India is poised for significant
economic advancement.
Capitalizing on Global and Domestic Opportunities
The global logistics market reached USD 5.4 trillion in 2023 and is expected to grow to
USD 7.9 trillion by 2032.
Key drivers include digitalization, technologies like AI and Blockchain, and increasing
customer demand for end-to-end solutions and faster delivery systems. Our presence in 180
countries, strategic mergers and acquisitions, and diverse offerings position us
advantageously in this expanding market.
In India, the logistics sector benefits from the government's development agenda and
budget provisions, including major economic railway corridors, significant capital
expenditure, the proposal to enhance road connectivity, and build industrial parks. Our
domestic businesses, including express distribution under AllcargoGATI and contract
logistics under Allcargo Supply Chain, enable us to provide integrated logistics across
the nation, with first and last mile coverage spanning the whole of India.
Delivering International Supply Chain Excellence
Despite a challenging year, our LCL and FCL volumes remained stable. We anticipate
improved performance in our International Supply Chain business due to cost restructuring,
easing inflation and increasing consumer demand. Our efforts include outsourcing to cost
efficient geographies, automation, digitalization, and offering innovative products across
key global trade lanes. We are also looking at sharpening our business strategy in key
geographies such as Latin America.
Driving Digital Transformation
Digital transformation is at the core of our strategy. We are integrating data
analytics, customer-centric innovation and automation, creating a unique global network
and operating rhythm. Our digital logistics platform, ECU360, facilitates over 50% of our
global shipments digitally.
Strategic Restructuring for Flexibility
Our endeavour to create clear focus on each vertical led to the strategic scheme of
demerger creating two new listed entities, Allcargo Terminals Limited and Transindia Real
Estate Limited. Building on this, to further streamline the different businesses, while
continuing to strengthen our portfolio of end-to-end logistics service, the holding
Company of ECU Worldwide will now be Allcargo ECU Limited; thereby consolidating the NVOCC
business globally. This restructuring provides flexibility and agility for each business
to pursue growth opportunities, enhance profitability and ensure strong corporate
governance.
Commitment to ESG and a Better World
As a responsible corporate entity, having adopted a strategic approach to ESG journey,
we have identified our ESG goals, the most important of which our aim to be carbon neutral
by 2040. To achieve this we are leveraging technology to optimize processes and resources.
Our operations in 180 countries are supported by a diverse team, promoting an inclusive
and resilient organizational culture. We align with the United Nations Sustainable
Development Goals, focusing on community development, environmental protection, and
ethical business practices.
Through our CSR arm, we work collaboratively with a network of well curated partner
NGO's to reach out the wider community with carefully crafted initiatives in the six
intervention areas of Education, Environment, Health, Women Empowerment, Disaster Relief
and Sports. I'm happy to share that during the year, Maitree - one of our key projects
planted a landmark one million trees.
Looking Ahead
FY23-24 has been a year of challenges and uncertainties, but our collaboration,
ingenuity and commitment to delivering logistics backed by technology and care position us
to navigate complexities and move forward. As we celebrate 30 years of excellence, we
remain steadfast in our mission to innovate and create logistics magic.
Sincerely,
Shashi Kiran Shetty
Founder and Chairman