Express logistics firm Gati has appointed Shashi Kiran Shetty, the founder-chairman of Allcargo Logistics which controls the former after a merger, as its chairman.
Allcargo had acquired a controlling 46.83 percent stake in the Hyderabad-based Gati for Rs 416 crore in April after the successful completion of the open offer, making it one of the largest multimodal logistics players in the country.
The appointment follows KL Chugh, who was the non-executive chairman of Gati for 22 years, stepping down from the board on July 24.
Allcargo in the statement on Saturday said the move will expedite the turnaround of the express logistics company.
The Gati board already represents Allcargo joint managing director Adarsh Hegde and chief investment officer Jatin Chokshi, as independent directors. The other as independent directors are Kaiwan Kalyaniwalla, Cynthia D'Souza, Mohinder Pal Bansal and Dinesh Kumar Lal.
"The new leadership will strengthen the two independent companies, align them to a common culture and values as also stimulate the transformation of the group into one of the largest multimodal logistics service providers in the country.
"It will also elevate us to an unchallenged position in the third-party logistics solutions space,” Shetty was quoted saying in the statement.
The express logistics industry is expected to reach Rs 48,000 crore by 2023.
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