The strategic move will position the company to accelerate growth across businesses by creating independent business undertakings, with sharper management focus, better access to right capital, and greater operational and financial flexibility. Allcargo Logistics would continue to be the leader in international supply chain, express logistics and contract logistics businesses with increased focus on digitization. The resulting company Allcargo Terminals will be the market leader in CFS business in India and continue to expand its footprint in ICDs. Five out of seven facilities of Allcargo are already on lease and the new resulting structure will make all seven CFS/ICDs completely asset light, positioning the company strongly to drive growth with high return on capital employed.

Under the proposed scheme of demerger, equipment rental and real estate businesses will move to TransIndia. This will create a unique portfolio of best in class grade A warehouses and other assets leased to marquee clients. The business will also hold the shares in the JV with Blackstone. Post demerger, the business would have opportunity to attract right pools of capital, as grade A warehousing is in very strong demand and capabilities of TransIndia will provide opportunities for robust growth.