AVG Logistics to acquire major stake in Kaizen Logistics
The acquisition is expected to be completed within Q4 of the financial year 2024-25.
AVG Logistics announced that it will acquire a major stake in Kaizen Logistics.
Kaizen Logistics specializes in the transport of dry cargo and bulk liquid cargo through road, multimodal logistics, and warehousing. The company offers services, including global logistics, 3PL solutions, port handling, and on-site logistics management.
With expertise in industries like metals, FMCG, chemicals, and supply chain solutions for steel and chemical manufacturing plants, Kaizen Logistics serves prominent Vedanta, Aditya Birla, RIL, Hindustan Zinc, Gujarat Alkalis, Meghmani Finechem, DCM, Chemfab Alkalis, JSW, Electrosteel, Hindustan Coca Cola, Varun Beverages.
Kaizen has reported revenue of ₹46 crore in the financial year 2023/24 respectively.
Kaizen Logistics was founded and led by Sumit Garg. Earlier to Kaizen's foundation in 2020, Garg was associated with Maple Logistics as COO and helped to grow the business from commencement to ₹300 crore.
“The acquisition will create operational synergies, enabling both companies to leverage each other's strengths in the competitive logistics market,” reads the AVG Logistics BSE filing dated December 30, 2024.
“Kaizen Logistics has established itself as a trusted logistics partner, providing a wide range of services including road transportation, multimodal transportation, and warehousing to some of India’s most renowned companies.”
The acquisition of Kaizen Logistics shall provide enhanced operational capabilities and an expanded footprint in key sectors, including FMCG, beverages, metals and industrial chemicals. The combined entity will have the opportunity to better serve its marquee customers with more robust and integrated logistics infrastructure. This will also open avenues for expanding AVG Logistics’ service offerings and customer base, creating long-term value for shareholders, employees, and stakeholders.
The acquisition is expected to be completed within Q4 of the financial year 2024-25.
AVG specializes in road & rail transportation, reefers/cold chain, and warehousing segments with over 50+ fully automated branches pan India. AVG’s customers include Nestle, HUL, DS Group, Godrej Consumers, Godrej Boyce, Apollo Tyres, JK Tyres, ITC, Airtel, MRF, Jubilant, UltraTech Cement, Coca Cola &many other retail and multinational companies.
The company’s 500+ workforce comprising dedicated & skilled professionals provides 24x7 integrated logistics services in an efficient manner to customers across different industries in India. The company operates a 3000+ fleet of hired & owned vehicles along with 705,000 Sq. Ft. of warehousing space in India to provide several value-added services.
In FY24, the company reported revenue of ₹491 crore, EBITDA of ₹108 crore and PAT of ₹32 crore.
