Mumbai-based logistics company Allcargo Logistics, on Thursday said it has received board approval to acquire a 30% stake in Gati Kintetsu Express Pvt. Ltd from its Japanese joint venture partner Kintetsu World Express (KWE) group.
In the JV, Allcargo group company Gati holds 70% stake and KWE holds the remaining 30%.
Last week, Mint had reported that Gati is looking at buying out its joint venture partner Kintetsu to further drive the company’s growth.
Allcargo Logistics acquired Gati and now owns more than 50% stake in the company. KWE owns around 3.5% shares in the company.
KWE India is the Indian subsidiary of KWE, which is part of the Kintetsu Group, a global conglomerate consisting of 130 affiliated companies.
Bangalore headquartered KWE India offers international air freight forwarding, international sea freight forwarding, customs handling, import and export of goods, warehousing, and last-mile delivery to both business-to-business (B2B) and business-to-commerce (B2C) businesses across India.
Founded in 1989, Gati has presence across Asia, including a nationwide network that covers 99% of the country's districts. The platform’s key business verticals include express distribution, air freight, ecommerce, first and last mile logistics, among others. It also offers B2C services like Laabh, Bike Express, Student Express, and others.
As per filings, for the quarter ended September 30, 2022, Gati reported a total income of Rs 442.60 as against Rs 436.72 crore it earned in the previous quarter.