| 28 | VIEWPOINT: ALLCARGO GROUP Allcargo Group: Using technology to stay ahead of the curve In the next five years, it aims to be among the top 10 players in the global logistics space technology-based interventions through the National Logistics Policy and PM Gati Shakti National Master Plan, create immense possibilities to be a formidable player in the global logistics sector. Our unmatched global presence in 180 countries integrates very well with our extensive local express distribution network in India, placing us in a unique position to leverage the fast growth of the Indian economy. We have a vision for sustainable growth driven by institutionalising our core values and purpose, building a diverse organisation with seasoned leadership, collaborating with niche start-ups, and using technology to enhance overall efficiency and flexibility to continue being frontrunners in an evolving business environment. In the next four to five years, Allcargo Group aims to be among the top 10 players in the global logistics space. India is on the path to becoming a $5 trillion economy in a matter of years. How do you plan to take advantage of this growth opportunity? As the nation prospers and experiences economic growth, there will be multi-pronged logistics requirements, specifically in the areas of e-commerce and warehousing. Not only are we are geared to cater to these, but also well-adept to be a single, reliable partner offering endto-end solutions that cover diverse logistics verticals. Our innovative solutions, investments in technology, and strategic partnerships with other industry players, supported by two key drivers of market tailwinds and growing market share, enable us to further our market leadership in India and across the globe. The global economy faces the prospects of an economic recession and a sharp rise in credit costs this year. How are you preparing your company to meet this challenge? We, at Allcargo Group, are monitoring the economic situation to stay prepared for the challenges of a global economic recession, should it arise. With our digital capabilities and agile operations, we aim to become the partner of choice for our customers. This will help us expand market share and retain and grow volumes even with recessionary headwinds. India is set to be one of the fastest-growing economies in the world this year. How are you leveraging this to grow your company? As an industry leader in the logistics sector, Allcargo Group is witnessing immense growth opportunities in India, fuelled by the government’s economic initiatives to increase manufacturing output and the rising local consumption demand. We are looking at diversifying our scope and services to offer best-in-class, end-to-end logistics services in this fastest-growing market. Door-to-door shipments, innovations in the digital space, expanding in the Less than Container Load (LCL) segment, and growing our express distribution operations are our key areas of focus. Howdoes India’s growth enable you to gain a competitive edge over your peers in the global market? India’s economic growth, along with the Government of India’s steps to identify bottlenecks and implement He is the Founder and Chairman of Allcargo Group. A logistics industry veteran with over three decades of experience, he has built what is now the global leader in LCL consolidation and India’s largest integrated logistics powerhouse. Mr Shetty has been at the helm of more than 10 strategic acquisitions in the past decade and has an impeccable track record in successful integration, while also driving growth organically. Edited excerpts Shashi Kiran Shetty Founder and Chairman, Allcargo Group | 29 | Other measures include reducing costs, improving our liquidity position, and increasing our focus on key markets. With support from the government in terms of rising credit prices and policies that help reduce logistics costs, and our proactive approach and sound business practices, we are confident that we will be able to remain resilient. How are you leveraging India’s global leadership in IT services to become a globally competitive firm in your industry? Allcargo Group has implemented a digital strategy and group-wide transformation to be future-ready and integrate new-age tools and technology across our systems, processes, and operations. This has helped us achieve significantly better business resilience, visibility, and control over cargo movements in the supply chain. Our state-of-the-art customer-facing digital sales platform, ECU360, has created an almost e-commerce-like shipping experience for customers, enabling convenient cargo movements across 180 countries and door-to-door deliveries in over 50 markets. We have created a Centre of Excellence for data science and analytics, and this is helping us optimize our network and routing schedules to maximize the potential of our resources, as well as be more sustainable in our operations. Whether it is accelerating sales, automation that enhances human capital particularly in warehousing, streamlining our global IT, finance, and other functions, or creating synergies that boost connectivity and create competitive advantage, technology has indeed been a key enabler and we believe India’s global leadership in the sector bodes well for the logistics industry. The government is making huge investments in creating a world-class transport and communication infrastructure. How is this helping in growth and improving the competitiveness of Indian companies? An efficient logistics and communication infrastructure will allow Indian companies to streamline their product delivery process and better manage their inventory levels – leading to reduced overhead costs, higher customer retention, and ultimately, higher profits. The improved infrastructure will also create more employment and skilldevelopment opportunities and spur economic growth. Furthermore, improved logistics and communication infrastructure will enable easier access to international markets, helping firms grow and become more competitive globally. Successful policy interventions can fill in procedural and infrastructure gaps, strengthen connections with global value chains, and create green channels for EXIM (export-import) commerce, ultimately lowering the cost of doing business and ensuring the seamless movement of goods. Climate change is the biggest threat to the planet right now and most economies and firms are now aiming for net-zero emissions. What are your company’s key initiatives? Allcargo Group has time and again reaffirmed its commitment to internationally acclaimed environmental standards. It is our aim to go far beyond business and profits and embrace the world as our family, caring for the planet and its people, while also showcasing the logistics sector’s intent to accelerate the zero-emission future. Whilewehave consistentlybeentaking steps toenhance the earth’s green cover by planting more than 810,000 trees with the aim to plant a million, integrating sustainability measures in our offices and facilities, and undertaking nationwide CSR programs, we have now implemented an ESG strategy focused on sustainability to streamline the efforts, scale them up and amplify their impact. Taking a macroscopic view, we are currently at a stage where our ESGcore committee has identified key challenges in theway of a net-zero transition, such as carbon accounting foundations, cost, and the feasibility of decarbonisation, etc. On the basis of this data, we have initiated the pooling of green demand and are working towards putting together a complete timeline for the carbon-zero target. •
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