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 rise, Ketan Kulkarni, Deputy Managing Director, Gati Express and Supply Chain Pvt Ltd (GESCPL), said: “At Allcargo Gati, our primary objective is to provide exceptional logistics solutions with unmatched reliability and efficiency. This price revision is a strategic response to the evolving economic environment. Amid rising fuel costs and inflationary pressures, this move is essential to maintaining the high standards of service our customers expect. The revised pricing will allow us to further invest in infrastructure and technological advancements enabling us to be well-positioned to meet the increasing demands of our clients across diverse regions.”
Commenting on this development, Uday Sharma, Chief Commercial Officer, Allcargo Gati Limited said, “This price revision reflects our focus on delivering superior value to our customers while ensuring 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.”
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
