The deal includes purchasing 1.3 lakh shares (26 %) from KWE‐Kintetsu World Express (S) (KWE Singapore) and 20,000 shares (4%) from KWE Kintetsu Express India.

With the conclusion of this transaction, Allcargo, along with Gati, now holds 100% stakes in GKEPL and assumes complete control. Allcargo's subsidiary, Gati already holds 70% stake in GKEPL.

These acquisitions are in line with the company's strategy to sharpen the focus on high growth opportunities in express and contract logistics business in India. This move will also facilitate simplification of the corporate structure. Allcargo is well positioned to derive synergies from contract logistics and express distribution.

Shashi Kiran Shetty, founder & chairman, Allcargo Group, said, “The Share Purchase will offer Allcargo Logistics, along with its subsidiary Gati, full ownership and control and facilitate strategic decision‐making in the company. This will help us enhance service delivery capabilities to make further progress and usher in the next phase of growth. Going forward, we expect a stronger synergy between contract logistics and express distribution to further strengthen group's position in the domestic logistics space.”

Yasuyuki Tani, regional managing director, Southeast Asia and Oceania Region, KWE said, “KWE as a group and more specifically KWE India shared excellent relationship with Gati and Gati‐Kintetsu over the past 10 years. This relationship will now be more strategic partnerships in domestic logistics operations in India. As a international freight forwarder, will continue to engage with Allcargo Group in various areas and explore new opportunities as it may present in the future in India and overseas.”

Allcargo Logistics is an integrated logistics service provider and operates in multiple business segments – multimodal transport operation (MTO), container freight station (CFS) / inland container depot (ICD), projects and engineering (P&E), contract logistics, and logistics parks (LPs) in which it has forayed recently.

The company's consolidated net profit slipped 75.1% to Rs 61.56 crore in Q4 FY23 as compared with Rs 246.87 crore in Q4 FY22. Net sales declined 37.9% year on year to Rs 3,395.10 crore in Q4 FY23.

The scrip rose 0.90% to Rs 296.65 on the BSE.