Allcargo to buy majority stake in CCI for Rs 130 crore

MUMBAI: Allcargo Logistics, part of the Avashya Group, will invest Rs 130 crore to buy a controlling stake in CCI Logistics.

The deal will lead to the formation of a new entity in which Allcargo will hold 62 per cent, while the rest is held by CCI.

On February 15, it got an inprinciple board approval to buy a majority stake in CCI, a company in freight forwarding and contract logistics with a special focus on chemicals.

A person in the know said the merged entity will have a topline of Rs 500 crore and an Ebitda of Rs 35 crore this financial year.

Analysts have lauded Allcargo's moves to expand in the contract logistics space. The company is slated to announce its earnings on Thursday.

"AGLL boasts of a diversified presence across different logistics verticals ranging from Multimodal Transport Operations, CFS/ICD terminal operations to Project and Engineering Solutions. With presence across the business value chain, it stands to benefit from its relationship with customers common across segments. The business is expected to benefit from a recovery in global trade, profiting its MTO segment," said Prateek Kumar of Antique Stock Broking in a recent note.