Allcargo Terminals Ltd

Dear Shareholders,

Greetings to each one of you!

I am pleased to share with you that in FY 2023-24, your Company, Allcargo Terminals Limited, has performed well inspite of the challenging conditions. We grew in volumes and revenues despite the year being marked by exceptional geopolitical uncertainties that affected the flow of goods, rise in freight rates, increasing tariff pressure, and natural force majeure circumstances.

Being integral to global trade, Container Freight Stations (CFS) continued to play an important role of decongesting ports by shifting cargo and customs related activities away from the ports.

During the year, we capitalised on our pan-India presence, operational efficiency and strong customer base, and strengthened our value proposition with digital CFS infrastructure.

With digitalization accelerating global cargo movements and imports and exports handling, we at Allcargo Terminals, are redefining excellence with a new grip on growth with our digital-first solutions our, CFS-ICD network across Mumbai, Mundra, Kolkata, Chennai, and Dadri.

Harnessing India's growth opportunities

With a progress-oriented outlook bolstered by favorable policies, stable governance, manufacturing impetus with the Make in India initiative and product linked incentive schemes, increasing demand for e-commerce, among other factors, economic activity is expanding in India. Provisions to further infrastructure development and reduce logistics costs with the landmark Gati Shakti Masterplan and National Logistics Policy will bolster India's rising economic ambitions.

The global greenfield investment landscape is also seeing a significant shift, with India and Africa emerging as key destinations over the last two years.

Clearly, India is on the rise. As we move towards Atmanirbhar Bharat, robust CFS services bolstered by digital technology will be required to help India capitalize on the manufacturing boom and grow its global market base, and help our ports handle the anticipated large volume of goods.

At Allcargo Terminals, we stand ready to help India write this growth story and support the expanding EXIM activity. We already have a strong pan India presence, and are actively looking to expand our capacity at key port such as Mundra.

Maximizing India's EXIM potential

On account of trade relationships with Asia, Europe and the USA, and owing to a well-maintained central position within the geopolitical spectrum, India's trade moves far and wide.

India's exports increased to 115 countries out of the total 238 destinations during FY 2023-24 despite the global economic uncertainties, and exports to its top 10 destinations saw a 13 per cent year-on-year increase in

FY 2023-24. Significantly, the cargo handling capacity at the 12 major Indian ports nearly doubled from 871 million metric tonnes (MMT) in 2015 to 1617 MMT in 2023.

With 25% of port volumes being handled by CFS-ICDs, this growth in exports is likely to translate into increased demand for specialized CFS services. This demand is also set to be fuelled further by rising number of LCL shipments, increased share of container traffic in India's seaborne trade, cluster development for robust port connectivity and development of Dedicated Freight Corridors (DFC).

ATL's Role in India's Growth

To capitalise on India's EXIM potential, our strategic outlook for organic growth spans marketing and sales acceleration to grow market and wallet share, expansion into new, untapped geographies, innovative products and solutions, collaboration to offer integrated logistics services like express distribution and first and last mile logistics, venture into hub and spoke delivery services, as well as mutually enabling partnerships with peers and associates. We also look ahead to leverage

Allcargo Terminals overall expertise in strategic mergers and acquisitions to identify pathways and prospects for inorganic growth.

In the past fiscal, we have made significant efforts in strengthening every pillar of the foundation on which we build our bold, global ambitions, namely i) building and retaining a diverse, talented workforce ii) adopting latest digital tools and technologies iii) ensuring operations excellence with reliability at its core iv) being future-ready by focusing on sustainability and strong corporate governance.

Delivering digital-first customer experiences

Ever committed to enhancing customer delight, during the year, we fortified our already strong operational capabilities with cutting-edge digital CFS solutions.

During the year, we launched our myCFS app and portal, a one-stop point for contact-less CFS-ICD services, and was also upgraded with 18 enhanced utility features. myCFS has digitally transformed 67% of customer interactions and clearance processes at CFS facilities, increasing customer stickiness through a range of services like uploads and retrievals of documents, automated updates, faster clearance, online proforma, real-time delivery exports, and more. The analytics helps us track and optimize business visibility with key customers, while the smart yield management and centralized contract management are helping us take data-driven decisions in a flexible, agile manner.

Additionally, we implemented an organization-wide initiative to centralize our CFS software across all locations, and launched a CFS dashboard and our new CRM platform to power a more seamless backend and gain data driven insights to support informed decision making.

A digital-first approach like ours makes all the difference, as we cater to marquee customers in diverse industries in business sectors.

Collaboration and partnerships

Along with CFS-ICD services across all major ports in India, we also boost connectivity and business opportunities in countries like Bangladesh and Nepal.

In India, our association with Speedy Multimodes has been strengthened. Consequently, we have been able to innovate and tailor our products and services to meet very specific demands of businesses in the region, thus adding resilience and flexibility to their domestic and international supply chains.

As a part of Allcargo Terminals, we are in a unique position to leverage its legacy and experience to offer our customers benefit from single-window solutions delivered by one reliable partner.

Focus on ESG and sustainability

Our strategic approach to ESG is driven by our purpose of 'Helping global supply chains, while caring for sustainability', and guides all our business strategies, decisions, and processes.

We are aligned to Allcargo Terminals ESG goals of being carbon neutral by 2040 and contribute to it through various initiatives like using digitalization to optimize resources, power generation through solar energy, sustainability measures implemented in our facilities, tree plantation, clean-up drives, among others. Notably, we reached our landmark one millionth tree, and continue in our efforts to green the earth's surface.

The locations neighboring our sites are brimming with activities, as various health, skill training, and employee volunteering activities are contributing to the creation of a vibrant community enabled by a socially responsible entity.

Keeping up our forward strides

In addition to what we promised in FY 2022-23, we are confident that, as India moves towards its bold global trade ambitions, we are geared to not just continue, but also accelerate the facilitation of imports and exports, with our strategic pan-India presence, excellent operational capabilities fortified with digital technology, our customer-first approach, and ESG imperatives, all of which differentiates us in the market, as we take firm strides towards a Viksit Bharat.

You are an integral part of our journey as we enhance efficiencies and capabilities, strengthen business associations, and chart the course as a responsible corporate citizen dedicated to creating immense value for shareholders, customers, employees, and all our stakeholders.