Allcargo Gati announces 10.2% price increase for Express Distribution Services from 2025

Allcargo Gati Limited, formerly Gati Limited, a leading express distribution and supply chain management company in India, has announced an average General Price Increase (GPI) of 10.2% for its Express Distribution services, effective from 1 January 2025. This is the first price adjustment since Allcargo Logistics Limited's strategic acquisition of Gati in 2019. The price revision aims to align pricing with the company’s ongoing operational investments and maintain high standards of service quality.

The GPI is expected to help offset rising costs over the years, including inflation and administrative expenses related to regulatory and security measures. The increase will also support further investments in infrastructure and technological advancements. New customers who sign up between 1 October and 31 December 2024 will not be subject to the GPI.

Allcargo Gati has placed a strong emphasis on innovation and technology to enhance operational efficiency and customer experience. The deployment of handheld printers and the use of machine learning technology to improve Proof of Delivery (POD) accuracy have significantly increased precision. The introduction of a centralized Control Tower has also improved visibility across first, mid, and last-mile logistics, providing customers with real-time tracking and better control over their shipments.

Ketan Kulkarni, Deputy Managing Director of Gati Express and Supply Chain Pvt. Limited (GESCPL), explained that the price increase is a strategic response to 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, ensuring we are well-positioned to meet the increasing demands of our clients across diverse regions," Kulkarni said.

Uday Sharma, Chief Commercial Officer of Allcargo Gati Limited, added, "This price revision reflects our focus on delivering superior value to our customers while ensuring sustainability and excellence. Our ongoing investments in infrastructure development, technology, and workforce have been key to delivering high-quality service."

As part of its growth strategy, Allcargo Gati is set to operationalise six of its eight planned hubs in metro cities by the end of the fiscal year. These investments are expected to enhance the company's industry-leading turnaround time and service reliability. The company's Enterprise Resource Planning (ERP) platform is also undergoing a comprehensive upgrade to improve delivery efficiency, mid-mile operations, and cross-docking processes.

The price increase is seen as a necessary measure to maintain service quality and ensure Allcargo Gati remains at the forefront of the logistics industry, committed to delivering innovation and efficiency across the supply chain.