PNN
Mumbai (Maharashtra) [India], May 6: AVG Logistics Limited, (BSE - 543910, NSE - AVG), AVG Logistics Limited has secured a 6 year long term contract, for lease of Parcel Cargo Express Train (PCET) from the Indian Railways. This special train, connects Agartala (Tripura) / Guwahati (Assam) to Delhi / Ludhiana (Punjab) and will complete 4 trips every month over the next 6 years, totalling 313 trips during the contract tenure.
The Carrying Capacity during the trip is expected to be 364 tonnes per trip for initial 6 months and will increase to 484 tons per trip later. The Express Train Service will cover the distance of 2768 kilometres in 90 hours ensuring expeditious, seamless connectivity between the two locations.
Commenting on the collaboration, Mr. Sanjay Gupta Managing Director & CEO, AVG Logistics Limited said, "We are excited about our new collaboration with Indian Railways (Northeast Frontier Railway). This collaboration highlights our strong commitment to improve cargo/parcel transportation services, bringing us nearer to our sustainability goals and increasing the proportion of Green (eco-friendly) logistics in our revenue stream. We expect to generate revenue of ~Rs. 198 Crore (~Rs. 33 Crore p.a.) over 6 years tenure. This contract will enhance our financial strength and help us fuel our ambition to undertake more ambitious projects, thereby elevating our overall financial performance.
Through this Contract, while departure of the train from Agartala to Ludhiana the company will serve the industries in the field of Tea, Bamboo, Plastic granules, Mosquito repellent, FMCG, Hair oil etc. and departure of the train from Ludhiana-Delhi-Guwahati- Agartala which is the toughest location of northeast due to its geographical location and seasonal disturbances which affects regular road closures, land sliding etc. and this new train will help in serving the industries in the field of FMCG, Cycle, Hosiery, Electronics, White Goods, shoes, consumable items, Raw Material, Sanitary etc. We believe that this strategic move and committed services will have a positive impact on our operational efficiency, service reliability, and overall business growth.
The long-term nature of this contract underscores our commitment to achieving sustained excellence in logistics services. We look forward to the rest of the year with renewed vigour, excited to create value for the company, stakeholders, and the environment."
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