Allcargo Logistics Limited · NSE:ALLCARGO
Allcargo Logistics — Merger or Acquisition (December 2023)
34 slides from Allcargo Logistics's merger presentation, Dec 21, 2023
Slide 1: Cover letter to stock exchanges
December 21, 2023 To, BSE Limited, National Stock Exchange of India Limited, Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G, Dalal Street, Fort, Bandra Kurla Complex, Mumbai – 400001 Bandra (E), Mumbai - 400 051 BSE Scrip Code: 532749 NSE Symbol: ALLCARGO Dear Sir/Madam, Sub: Investor Prese
Slide 2: Scheme of Arrangement Investor Presentation
SCHEME OF ARRANGEMENT Investor Presentation December 2023 1
Slide 3: Allcargo Logistics & Allcargo Gati: Existing Corporate Structure
ALLCARGO LOGISTICS & ALLCARGO GATI : EXISTING CORPORATE STRUCTURE Promoters Public Public 70% 30% Allcargo Logistics Limited (ACL) 50.2% ECU Worldwide 49.8% (Belgium) N.V Allcargo Gati Ltd (AGL) India ISC business 100% 70% Allcargo Supply Chain Pvt 30% Gati Express & Supply Ltd (ASCPL) Chain Pvt Ltd
Slide 4: Simplified Corporate Structure Post Restructuring
SIMPLIFIED CORPORATE STRUCTURE POST RESTRUCTURING Promoters Public Promoters Public 70% 30% 49.4% 50.6% ALLCARGO ECU LIMITED ALLCARGO LOGISTICS LIMITED Global ISC business Express Business India ISC business Contract Logistics Business Support functions International Supply Chain Domestic Supply Cha
Slide 5: Key Highlights (Allcargo ECU Limited)
KEY HIGHLIGHTS (ALLCARGO ECU LIMITED) ALLCARGO ECU LIMITED INTERNATIONAL SUPPLY CHAIN STRATEGIC • Independent strategic undertaking with sharp INDEPENDENCE focus on international supply chain business ENHANCED • Dedicated capital for driving digital initiatives FOCUS ON • Enhanced ecosystem play aro
Slide 6: Allcargo Gati Restructuring: 1 + 1 > 2
ALLCARGO GATI RESTRUCTURING: 1 + 1 > 2 ALLCARGO LOGISTICS LIMITED STRATEGIC BUSINESS ASPECTS BETTER SERVICING BENEFITS FROM COMBINED OFFERINGS; VALUE UNLOCKING EXPRESS + CLIENT NEEDS CUSTOMER STICKINESS CROSS-SELL OPPORTUINITES THROUGH SCALE CONTRACT LOGISTICS : CREATING DOMESTIC LOGISTICS POWERHOUS
Slide 7: Current Annual Financial Highlights
CURRENT ANNUAL FINANCIAL HIGHLIGHTS 17,643 1,305 16,333 1,059 Revenue EBITDA (₹ Cr) (₹ Cr) 8,449 456 International Supply ALLCARGO LOGISTICS (ACL) Chain FY21 FY22 FY23 FY21 FY22 FY23 72 1,469 1,242 38 EBITDA Revenue 36 EBITDA 1,012 (₹ Cr) (₹ Cr) Express (GESCPL) FY21 FY22 FY23 FY21 FY22 FY23 344 341
Slide 8: Scheme Detailing
Investor Presentation SCHEME DETAILING7
Slide 9: Scheme Highlights (1/2)
SCHEME HIGHLIGHTS (1/2) • Allcargo Logistics (ACL) to demerge its ISC business and support function into a separately listed entity, Allcargo ECU Limited Proposed Transaction (AEL). (under single Composite • ASCPL (entity holding CL business) and GESCPL (operating entity of express business) will th
Slide 10: Scheme Highlights (2/2)
SCHEME HIGHLIGHTS (2/2) • 1st October 2023 : Alllcargo Logistics to demerge its ISC business and support function Appointed Date • 1st October 2023 : ASCPL and GESCPL to merge into Allcargo Gati • Effective Date* : Allcargo Gati to merge into Allcargo Logistics • SEBI and Stock Exchanges • NCLT – Mu
Slide 11: Key Milestones, Indicative Timelines & Approvals Required
KEY MILESTONES, INDICATIVE TIMELINES & APPROVALS REQUIRED ~2-3 months ~6-7 months ~2-3 months Regulatory Filings & NCLT Filings & Board Approval ROC Filing & Listing Approvals Approvals • Approval of the proposed • Stock exchanges (BSE & • Filing of Scheme • ROC Filing scheme of arrangement, NSE), S
Slide 12: Proposed Composite Restructuring
PROPOSED COMPOSITE RESTRUCTURING The Demerger & Amalgamations outlined below are proposed to be carried out through one composite scheme of arrangement DEMERGER AMALGAMATIONS • Demerger of ISC business (and support functions) into a • Merger of ASCPL & GESCPL into Allcargo Gati new entity, AEL which
Slide 13: Allcargo Logistics Ltd
Investor Presentation ALLCARGO LOGISTICS LTD 12
Slide 14: Combining Powerhouses: Express + Contract Logistics
COMBINING POWERHOUSES: EXPRESS + CONTRACT LOGISTICS Integrated Solutions Basket of Offerings Increased Reach Cost Side benefits Provide Basket of Providing Integrated Integrated approach offerings to existing Expand our customer Increased Scale; Better Solutions across Entire enables cost saving and
Slide 15: Network Leader in Indian Supply Chain
NETWORK LEADER IN INDIAN SUPPLY CHAIN Jammu & Kashmir Himachal Pradesh UNIQUE COMBINATION OF Uttarakhand Punjab EXPRESS + CONTRACT LOGISTICS Haryana Delhi Jharkhand Uttar Pradesh Gurgaon 99% OF PINCODES SERVICED Jaipur Bihar Assam Rajasthan Guwahati Ahmedabad 150+ WAREHOUSE & DISTRIBUTION CENTERS Ba
Slide 16: Allcargo Gati 2.0 – Ongoing Journey to Profitable Growth
ALLCARGO GATI 2.0 – ONGOING JOURNEY TO PROFITABLE GROWTH INFRASTRUCTURE DIGITIZATION Key Focus Areas: Enhance customer experience and Key Focus Areas: Accelerating capacity operational excellence on front-end. Seamless integration creation to manage higher loads in most across various business verti
Slide 17: Digitalization
DIGITALIZATION Back-end Front-end Pick Up & Delivery automation CRM system Data Science • Pickup Registration, Validation, Visibility & Monitoring Managing customer relationships and Route optimization, Load planning, • Handheld printers for real time printing of labels enabling better service quali
Slide 18: Contract Logistics – Key Industries Catered
CONTRACT LOGISTICS – KEY INDUSTRIES CATERED Indicative Revenue Mix Chemicals, Food & Pharma 35-40% E-commerce 35-40% Auto/Industrial 18-20% Chemical, Food & Pharma Warehousing E-commerce & Retail Solutions Automotive & Engineering Solutions ▪ State of the art warehousing space ▪ Fully and semi-autom
Slide 19: Showcase #1: Increasing Efficiency for One of India's Largest Chemical Manufacturers
SHOWCASE #1: INCREASING EFFICIENCY FOR ONE OF INDIA’S LARGEST CHEMICAL MANUFACTURER Key Challenges ➢ Storage capacity management and resource management ➢ Mixed batch receipts ➢ Not having space for any value-addition ➢ High cost of primary and secondary transportation ➢ Difficult to arrange vehicle
Slide 20: Showcase #2: Warehouse Management Case Study
SHOWCASE #2: WAREHOUSE MANAGEMENT CASE STUDY German Manufacturer of RollingElement Bearings Bearing & Seal Manufacturer - SOW ➢ Inbound – Pallet In & Pallet Out operations, Receiving from Plant & Suppliers (Local & Imports) ➢ Manpower Management ➢ Inventory Management ➢ Repackaging ➢ Dispatch (Local
Slide 21: Contract Logistics - Awards & Recognition
CONTRACT LOGISTICS - AWARDS & RECOGNITION 2021 2021 2021 2019 SCM Pro warehousing Eco Samudra Manthan Awards Summit Warehouse & Logistics Scale Awards Excellence Awards •Best Chemical warehouse award •Best warehouse for safety practices 2019 2019 2018 2017 8th Manufacturing Supply 13th ELSC Leadersh
Slide 22: Allcargo ECU Ltd
Investor Presentation ALLCARGO ECU2121LTD
Slide 23: Global Leader in International Supply Chain Segment
GLOBAL LEADER IN INTERNATIONAL SUPPLY CHAIN SEGMENT Global #1 in LCL consolidation operating the SCALE CREATES largest global LCL network with 15% market FLYWHEEL OF SUCCESS share in operating markets 2,500 direct trade lanes, key value driver for small & large freight forwarders Distinct value prop
Slide 24: Uniquely Positioned with Unmatched Digital & Operational Capabilities
UNIQUELY POSITIONED WITH UNMATCHED DIGITAL & OPERATIONAL CAPABILITIES Conventional players have operating network Digital start-ups lack operational but lack digital capabilities footprint and scale FCL LCL Air Industry is converging …leading to stricter requirements towards an increasing for real t
Slide 25: ECU 360 Always Moving Forward
ECU 360 ALWAYS MOVING FORWARD ▪ Mature ▪ Nascent ▪ Does not exist 2020 2023 Features Trade Lanes Customer Profile Registration Process Speed of Quote Reply Booking Track and Trace – automatic Documentation Management Customized Reports & Analytics API Customs Module Knowledge Portal (newsletters etc
Slide 26: Digital Framework for Logistics
DIGITAL FRAMEWORK FOR LOGISTICS Recruitment Intelligent Analytics & Ecosystem Integration with Physical RDA end-to-end Automation Workflows Internet / IoT & RPA recommendation engines service offering Knowledge transfer / Data Aggregation Tools assessments for enhanced visibility ENABLE ENHANCE ENGE
Slide 27: How AI & Automation Are Creating a Unique Global Network and Operating Rhythm
HOW AI & AUTOMATION ARE CREATING A UNIQUE GLOBAL NETWORK AND OPERATING RHYTHM Real time prescriptive yield intelligence Sales CRM 2.0 (Optimisation & Gamification) Customized dynamic Customized and Real time pricing focused sales supply visibility push ECU360 (Growth & customer Customer Centricity d
Slide 28: BOD & Management
Investor Presentation BOD & MANAGEMENT 27
Slide 29: Board of Directors – Allcargo Logistics
BOARD OF DIRECTORS – ALLCARGO LOGISTICS SHASHI KIRAN SHETTY ADARSH HEGDE ARATHI SHETTY Founder & Executive Chairman Managing Director Non-Executive Director A pioneer in logistics industry and a visionary, first Associated with Allcargo Logistics since inception and A leader with strong focus on sus
Slide 30: Management Team - Allcargo Logistics
MANAGEMENT TEAM - ALLCARGO LOGISTICS RAVI JAKHAR DEEPAL SHAH Group Chief Strategy Officer Group Chief Financial Officer A thought leader with a unique blend of entrepreneurial, management A proven leader with over 20 years experience in diverse fields such as and advisory experience across diverse s
Slide 31: Management Team - ECU Worldwide
MANAGEMENT TEAM - ECU WORLDWIDE TIM TUDOR DMITRIY IOFFE SIMON SACHU CEO CCO LCL CCO, Global Air, FCL & Procurement An industry veteran with three decades of experience Highly recognised commercial leader with rich experience An industry veteran with 20+ years He served as in shipping and logistics i
Slide 32: Board of Directors – Allcargo Gati & GESCPL
BOARD OF DIRECTORS – ALLCARGO GATI & GESCPL Allcargo Gati Limited Gati Express & Supply Chain Private Limited (GESCPL) Mr. Shashi Kiran Shetty Mr. Dinesh Kumar Lal Chairman & Managing Director Non-Executive Independent Director A pioneer in logistics industry and a visionary, first A veteran with ov
Slide 33: Management Team – Allcargo Gati
MANAGEMENT TEAM – ALLCARGO GATI PIROJSHAW (PHIL) SARKARI ANISH MATTHEW MEHERNOSH N. MEHTA MD & Chief Executive Officer (GESCPL) Chief Financial Officer Chief HR Officer CA by profession with decades of leadership Strategic leader with 19+ years of experience in Rich and diversified experience of 19+
Slide 34: Thank You
Investor Relations Sanjay Punjabi +91 9821080048 sanjay.punjabi@allcargologistics.com Investor Presentation THANK YOU 33
Allcargo Logistics — Merger or Acquisition (December 2023) on 6ix