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Systematix Research Report
AVG Logistics Ltd. is a key company in the logistics sector that provides a wide range of services such as road transport, reefer transportation, railway logistics solutions, warehousing services, and other value-added services.
AVG is well known for it's dominance in providing multi-modal logistics services to fast moving consumer goods companies primarily Nestle India Ltd., Hindustan Unilever Ltd., Dharampal Satyapal Group etc.
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The company owns a fleet of over 600 vehicles including ~207 reefers vehicles. In reefers transportation business, which contributes ~25% of revenues, the management expects to add ~70 reefers in FY24, and 200 reefers over the next few years would be a key growth driver in the coming years.
AVG has already tapped a couple of new business avenues which is likely to fuel growth in the reefer segment.
Further, the company has signed four new contracts with Indian railways for five-six years, which is likely to boost its rail transport business which is currently at around Rs 500 million/annum.
Also, the traditional less than truckload transport business is expected to grow at 12-15% owing to expansion in fleet size, tapping new geographies, and economic growth supported by government policy.
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