Logistics firm Allcargo Gati Ltd (formerly Gati Ltd) on September 26 announced a 10.2% average General Price Increase (GPI) effective from January 1, 2025, for its Express Distribution services.
“This is the first price revision since Allcargo Logistics Limited’s strategic acquisition of Gati in 2019, driven by the necessity to align pricing with ongoing operational investments and maintain high standards of service quality. The GPI will help offset the significant increase in costs over the years, taking into consideration inflation, administrative costs related to regulatory and security measures, enabling further investment in infrastructure and technological advancements,” said the company in a statement.
Allcargo Gati’s shares on NSE rose over 3% on September 26 to trade at Rs 119.85 apiece.
New customers who sign up between October 1 and December 31, 2024, will have the GPI excluded.
Commenting on the price hike, Ketan Kulkarni, Deputy Managing Director, Gati Express and Supply Chain Pvt Ltd (GESCPL), said: “At Allcargo Gati, our endeavour always is to deliver unexcelled logistics solutions with unmatched reliability and efficiency. This price correction aims at addressing the emerging economic order. The increased fuel prices and inflation thereby make this move quite imperative for sustaining the standards of service that our customers expect from us”. This price adjustment will enable us to continue investing in infrastructure and technology, so we can better position ourselves to meet the continually growing client requirements in different regions.
Commenting on this development, Uday Sharma, Chief Commercial Officer, Allcargo Gati Limited, said, “This price revision reflects our keen focus on delivering superior value to our customers while building in sustainability and excellence. Allcargo Gati’s crucial investments in key areas like infrastructure development, technology, and workforce, all of which have been strategic to our ability to deliver leading service quality.”
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Source: Moneycontrol
News Desk
