Allcargo Gati Announces 10.2% Price Increase for Express Distribution Services Effective January 1, 2025

On September 26, 2024, Allcargo Gati Limited announced a 10.2% average General Price Increase (GPI) effective from January 1, 2025, for its Express Distribution services. This marks the first price revision since Allcargo Logistics Limited acquired Gati in 2019, driven by the need to align pricing with ongoing operational investments while maintaining high service standards. 

The GPI is essential to offset significant cost increases attributed to inflation and administrative expenses related to regulatory and security measures, allowing for further investment in infrastructure and technological advancements.

To support customer retention, new clients who sign up between October 1 and December 31, 2024, will be exempt from this price increase. Allcargo Gati has consistently prioritised innovation and technology, enhancing service accuracy and transparency. The introduction of handheld printers and improvements in Proof of Delivery (POD) quality through Machine Learning technology have notably increased precision and operational effectiveness. 

Furthermore, the establishment of a centralised Control Tower allows for seamless end-to-end visibility across first-, mid-, and last-mile logistics, enabling customers to benefit from real-time tracking and greater control over their shipments.

As part of its growth strategy, Allcargo Gati has deployed six of the eight planned hubs in metro cities, with the remaining hubs expected to be operational by the end of the fiscal year. This expansion supports the company’s reputation for industry-leading turnaround times and reliable service, facilitating investments in fleet expansion to ensure resilience and sustainability. Additionally, a comprehensive overhaul of the operational Enterprise Resource Planning (ERP) platform aims to enhance delivery efficiency, secure mid-mile operations, and improve cross-dock processes.

The price increase is viewed as a necessary step to maintain high service standards while keeping Allcargo Gati at the forefront of the logistics industry, reaffirming the company’s commitment to delivering innovation and efficiency across the logistics value chain.

Speaking on the price adjustment, the Deputy Managing Director of Gati Express and

Supply Chain Pvt. Ltd (GESCPL), Ketan Kulkarni, 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.”

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.”

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