Rating Rationale
April 01, 2024 | Mumbai
Allcargo Logistics Limited
Ratings continues on ‘Watch Negative’; Rs.200 crore term loan continues on ‘Watch Developing
 
Rating Action
Total Bank Loan Facilities RatedRs.1075 Crore
Long Term RatingCRISIL AA/Watch Negative (Continues on ‘Rating Watch with Negative Implications’)
Long Term RatingCRISIL AA-/Watch Developing (Continues on ‘Rating Watch with Developing Implications’)
Short Term RatingCRISIL A1+/Watch Negative (Continues on ‘Rating Watch with Negative Implications’)
 
Rs.100 Crore Non Convertible DebenturesCRISIL AA/Watch Negative (Continues on ‘Rating Watch with Negative Implications’)
Rs.50 Crore Non Convertible DebenturesCRISIL AA/Watch Negative (Continues on ‘Rating Watch with Negative Implications’)
Note: None of the Directors on CRISIL Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings.
1 crore = 10 million
Refer to Annexure for Details of Instruments & Bank Facilities

Detailed Rationale

CRISIL Ratings on Rs 875 crore of bank facilities and Rs 150 crore of non-convertible debentures of Allcargo Logistics Ltd continues on 'Rating Watch with Negative Implications'.

 

This follows expectations of moderation in business and financial risk profile of Allcargo Logistics Limited (herein referred to as new ACL), considering the implications of the company’s demerger plans. On December 21, 2023, the company's board of directors approved a composite scheme of arrangement (demerger) whereby its international supply chain (ISC) business, comprising global supply chain and domestic supply chain, as well as its support functions (~85% of Allcargo group’s revenues and ~80% of pre Ind AS EBITDA in first nine months of fiscal 2024), will be de-merged into a new company - Allcargo ECU Ltd (AEL) while the express and contract logistics business  will continue under new ACL.

 

This de-merger, which will be made effective in steps with appropriate allocation of shares to respective entities involved, will also result in merger of subsidiary, Allcargo Gati Ltd (housing the express distribution business) into new ACL. New ACL, which will house the relatively smaller express and contract logistics business, has reported revenues of Rs 1,518 crore (~15% share of the Allcargo group's revenue) for the first nine months of fiscal 2024 and Rs 24 crore (~13% of pre-Ind AS earnings before interest, taxes, depreciation and amortisation (Ebitda) with operating margin of ~1.6%. While complete details on split of outstanding debt between new ACL and AEL is awaited, new ACL is expected to hold mainly working capital related debt related to express and contract logistics, the Gati KWE acquisition loan and portion of general corporate loan, total constituting to ~40-45% share of consolidated group’s debt of Rs 856 crore as of December 31, 2023. Cash and equivalent could be marginally higher than Rs 100 crore. Accordingly, factoring these aspects, the overall business as well as financial risk profile of new ACL will be moderate compared with the  existing Allcargo.

 

The ISC’s operating performance, which will operate under AEL, post de-merger, is also facing headwinds, impacted by the overall slowdown seen in global trade volumes and freight rates. For the first nine months of fiscal 2024, ISC revenues de-grew by ~37% on-year to Rs. 8,339 crore, with a decline in reported post Ind AS EBITDA to 3.0% as compared to 6.5% in fiscal 2023. While freight rates are not expected to reach the highs that were seen in the previous two fiscals, recovery to pre-2021 levels would help sustain the business risk of the company, pace of recovery would however be closely monitored. That said, AEL’s overall credit risk profile takes comfort from its leading market position in the global LCL (less than container load) consolidation business and from net debt free balance sheet.

 

This demerger is expected to take about 12-15 months, subject to receiving the required approvals from the Securities and Exchange Board of India (SEBI), National Company Law Tribunal (NCLT), Mumbai, equity shareholders, other regulatory authorities and the Income Tax authorities. Allcargo has filed the scheme with the stock exchanges and is the process of getting NOCs from lenders; post which it will be filed with SEBI. CRISIL Ratings is in discussion with Allcargo’s management to better understand bifurcation of its assets and liabilities and will resolve the watch once there is better clarity and the key regulatory approvals are received.

 

Also, the long-term rating on Rs 200 crore of bank loan facilities continues at ‘CRISIL AA-‘ with ‘Rating Watch with Developing Implications’ as this facility too in parts will move out of Allcargo, as part of demerger announced in December-2021. CRISIL Ratings here too continues to engage with the management and lenders for receipt of required documents as well as to understand the business, financial risk profile, bifurcation of debt, cash and other assets and liabilities moving out to Transindia Realty & Logistics Parks Ltd (TRL), and Allcargo Terminal Ltd (ATL), AEL; post which the watch will be resolved.

Analytical Approach

  • Prior to announcement on this demerger, CRISIL Ratings had been combining the business and financial risk profiles of Allcargo and its 134 subsidiaries including Allcargo Gati Limited. This is because the entities, collectively referred to as the Allcargo group, are under a common management and have strong financial and operational linkages. CRISIL Ratings has also combining the business and financial risk profiles of contract logistics business operated through its now 100% subsidiary (w.e.f. June 01, 2023), Allcargo Supply Chain Private Limited (ASCPL, formerly Avvashya Supply Chain Private Limited), as it is in a similar business with operational linkages and under the same management. Post completion of demerger, only the performance of Gati Limited and the contract logistics business would be considered while assessing new ACL’s performance.

 

  • CRISIL Ratings has also amortised goodwill on acquisitions made by the group, over five years from the date of each acquisition. For Gati Ltd, goodwill of Rs 224 crore has been amortised beginning fiscal 2020 while for Nordicon and Speedy (for fiscal 2022 only), Rs 92 and Rs 33 crore has been amortised beginning fiscal 2022.

 

  • CRISIL Ratings has adjusted EBITDA by excluding lease rental components with depreciation and finance costs to comply with IndAS116 on lease accounting. Accordingly, CRISIL Ratings has not included lease liabilities in debt.

 

Please refer Annexure - List of Entities Consolidated, which captures the list of entities considered and their analytical treatment of consolidation.

Key Rating Drivers & Detailed Description

Strengths:

  • Established position in the global international supply chain and express logistics business: The company is India’s largest, and a leading global operator, in the international supply chain container consolidation business, backed by a strong global network. It is the largest player in the LCL consolidation industry holding about 15% market share globally having achieved higher than global trade volume growth through market share gains and improved efficiencies over the years. It connects 2,500 direct trade lanes providing value to small and large freight forwarders. The segment benefitted from healthy volume growth and improved realisation during pandemic years which continued till the first half of fiscal 2023 but moderated subsequently impacting Allcargo’s operating performance.

 

Besides, the company is a leading player in the express logistics segment in India, through its subsidiary, Gati. Gati is one of the largest express logistics companies having extensive coverage in India and offers transportation solutions, e-commerce, trade inventory management, freight forwarding, and cold chain solutions. The company increased its stake in Gati KWE, the express logistics JV by buying-out the remaining 30% stake for Rs 406.5 crore in May-2023. It also operates a healthy contract logistics business through ASCPL, in which it acquired the remaining ~39% stake in May-2023 for Rs 163 crore and exited the freight forwarding business by selling off its 61% stake in Avvashya CCI Logistics Private Limited for Rs 39 crore.

 

  • Integrated logistics player with presence across diversified segments: The Allcargo group has a diversified business risk profile with three major segments ― ISC, express logistics, and contract logistics — contributing 89%, 9%, and 2%, respectively, to the total revenue in fiscal 2023. The group earlier had presence in domestic CFS/ICD, warehousing, project and equipment business which has now been de-merged into other two new entities.

 

Gati’s extensive reach provides vertical integration to the international supply chain business which, along with the contract logistics businesses, enhances the group’s ability to offer integrated transportation and logistics solutions to its diversified clientele, thus enhancing the business risk profile.

 

  • Healthy financial risk profile:  Continuing Allcargo’s financial risk profile remains healthy as of March 31, 2023, with gross debt of Rs 709 crore and cash surplus of Rs 1,456 crore with healthy cash accruals, and favourable movement of working capital items. Gearing stood at about 0.25 times with adjusted interest cover of ~18 times for fiscal 2023 with debt-to-pre-Ind AS EBITDA of 0.70 times.

 

Liquid surplus has moderated to Rs 642 crore with debt rising to Rs 856 crore as of December 31, 2023 following payments made for consolidating its stakes in various subsidiaries and joint-venture entities and for small acquisitions. During the first nine months of this fiscal it has made the following payments: Rs 406.5 crore in May-2023 for acquisition of remaining 30% stake in Gati KWE (part funding it through Rs 200 crore term loan), payment of Rs 124 crore (net of sale of ACCI stake) in May-2023 for acquiring the remaining stake in ASCPL, payment of  Rs 174 crore in August-2023 for acquiring additional 25% stake in Nordicon AB. In March-2024, it has announced purchase of 100% stake in Turkish LCL/FCL consolidating entity, Asiapac Equity Investment Ltd. While the company is not expected to take any term debt to undertake further large acquisition and is looking to reduce term debt through sale of non-core assets, it remains a key monotorable. In the absence of any large acquisition, financial risk profile and liquidity should improve over the medium term with only maintenance capex being undertaken.

 

Weaknesses:

  • Volatility in EXIM trade: The international supply chain business is directly linked to global EXIM trade and hence a significant reduction could weaken the business by constraining profitability per twenty-foot equivalent unit. Sluggishness in EXIM trade, in case of a steep fall in global trade, has impacted freight volumes, freight rates and profitability of the company in the first nine months of fiscal 2024 with Allcargo’s aggregate volumes falling by 3% to 716,340 TEUs while average realisation rates have fallen by ~36% impacting revenue and EBITDA. CRISIL Ratings expects moderate industry conditions to persist over the medium term before meaningful improvement begins.

 

  • Intense competition in ISC and surface transport business: The ISC business is exposed to intense competition from large carriers as well as aggregators like Allcargo who have strong local presence. Also, the surface transport business in India too faces stiff competition from new entrants who enjoy strong financial backing as well as established players in the industry. While the company’s global presence and strong experience in operating the logistics business provides comfort, it continues to be impacted by the stiff competition in the industry.

Liquidity: Strong

Liquidity is supported by substantial cash generation and asset-light business, cash surplus of Rs 642 crore as on December 31, 2023, and average bank limit utilisation (average utilisation of the fund-based limit for the group was 21% during the six months through February-2024). Healthy liquidity and cash accruals with nominal capex and debt repayments (Rs. 124 Crore in fiscal 2025 and Rs 315 crore in fiscal 2026) should keep liquidity strong over the medium term.

 

ESG Profile

CRISIL Ratings believes that Allcargo’s Environment, Social, and Governance (ESG) profile supports its already strong credit risk profile.

 

The logistics sector has a relatively higher impact on the environment because of the inherent nature of assets utilized for the physical delivery of goods. However, given Allcargo is a leading LCL consolidator, its direct impact on the environment is limited vis-à-vis its partners and customers who might have higher impact. The company though has a social impact because of its large and diverse workforce. Allcargo has continuously focused on mitigating its environmental and social impact. 

 

Key ESG highlights:

  • ESG disclosures of the company are evolving, and it is in the process of further strengthening the disclosures going forward.
  • Allcargo began releasing its ESG report from fiscal 2020 setting out qualitative parameters of the ESG emphasizing its commitment to creating a better world.
  • Through its CSR arm, Avashya Foundation, it is working to bring about inclusive development in six focus areas: Health, Education, Environment, Women Empowerment, Sports and Disaster Relief, through its network of reliable partner NGOs who are doing incredible work on the ground.
  • Company has planted more than 710,000 trees through Avashya Foundation’s Maitree initiative
  • Company has 50% women in the workforce in its global subsidiary, ECU Worldwide and endeavours to achieve similar levels in other group companies
  • It has adequate governance structure with 50% of its board comprising independent directors and extensive disclosures.

 

There is growing importance of ESG among investors and lenders. Allcargo’s commitment to ESG principles will play a key role in enhancing stakeholder confidence, given its high share of market borrowings in its overall debt and access to both domestic and foreign capital markets.

Rating Sensitivity factors for facilities rated CRISIL AA/Watch Negative

Upward factors:

  • Strong and sustained revenue growth and robust operating margin above 8-8.5% resulting in healthy cash accruals
  • Substantial improvement in debt metrics while maintaining strong liquidity

 

Downward factors:

  • Continuing moderation in the business risk profile, including due to weak operating performance owing to slowdown in trade volumes, impacting cash flows
  • Large, debt-funded capex or acquisition, resulting in sustained and significant weakening in net debt/pre-Ind AS EBITDA above 1-1.25 times on a sustained basis
  • Any large cash outflow in the form of dividend or share buyback or large acquisition affecting liquidity

 

Rating sensitivity factors for facilities rated CRISIL AA-/Watch Developing

Upward factors:

  • Strengthened business risk profile comprising large portfolio of lease generating assets with high occupancy rates and rentals, resulting in higher cashflows
  • Substantial improvement in debt metrics with sustained debt/ pre-Ind AS EBITDA below 0.5 times and adequate liquidity
  • Movement of debt facilities to the entity having a stronger credit profile

 

Downward factors:

  • Lower operating performance and cashflows due to lower rentals or occupancy in leased assets
  • Weakening of debt metrics with debt/pre-Ind AS EBITDA consistently above 1.5 times, on account of lower operating performance or higher debt-funded expansion plans or delay in deleveraging plan
  • Exposure to implementation or leasing risk related to new assets under development.
  • Movement of debt facilities to the entity having a weaker credit profile

About the Company

The Allcargo group including the businesses now moved to de-merged entities, promoted by Mr Shashi Kiran Shetty, provides logistics services such as container consolidation, express logistics, CFS, ICD, warehousing, coastal shipping, project logistics and equipment leasing.

 

Post the de-merger, Allcargo houses the container consolidation business (under international supply chain segment), express logistics (under subsidiary Gati Limited), and contract logistics (ASCPL, wholly owned w.e.f. June 01, 2023) businesses. The group is a leading global operator in the international supply chain container consolidation business and has grown over the years through various acquisitions. Since the acquisition of the Belgium-based ECU Line in 2006, the Allcargo group emerged as a leading LCL consolidator in the world and further solidified its position in September 2013 through the acquisition of Econocaribe Consolidators to increase its presence in the US and its focus on FCL cargo.

 

In April 2020, Allcargo completed acquisition of 46.8% stake in Gati entering the express logistics business which complements its international supply chain business. Gati was founded in 1989, is one of India’s leading express distribution and supply chain solutions provider, with a strong presence in the Asia Pacific region and SAARC countries. It has an extensive network across India, covering 99% (672 out of 676) districts and operating more than 5402 scheduled routes. It possesses an integrated, multi-modal network of surface, air and rail along with warehouses spread across India. The company’s offerings include transportation solutions, e-commerce, trade inventory management, freight forwarding and cold chain solutions operated through various subsidiaries and JVs.

 

For the first nine months of fiscal 2024, Continuing Allcargo reported consolidated net profit of Rs 152 crore (including Rs 155 crore of exceptional profit) on revenue of Rs 9,789.5 crore, against Rs 35.5 crore and Rs 14,656 crore, respectively, in the corresponding period previous fiscal.

Key Financial Indicators

Particulars

Unit

2023*

2022

Operating income

Rs crore

18392

20699

Profit after tax (PAT)

Rs crore

598

947

PAT margin

%

3.2

4.6

Adjusted debt/adjusted networth

Times

0.25

0.51

Adjusted interest coverage

Times

18.12

16.20

*For continuing Allcargo; includes ASCPL for 2023 and 2022

Any other information: Not Applicable

Note on complexity levels of the rated instrument:
CRISIL Ratings` complexity levels are assigned to various types of financial instruments and are included (where applicable) in the 'Annexure - Details of Instrument' in this Rating Rationale.

CRISIL Ratings will disclose complexity level for all securities - including those that are yet to be placed - based on available information. The complexity level for instruments may be updated, where required, in the rating rationale published subsequent to the issuance of the instrument when details on such features are available.

For more details on the CRISIL Ratings` complexity levels please visit www.crisilratings.com. Users may also call the Customer Service Helpdesk with queries on specific instruments.

Annexure - Details of Instrument(s)

ISIN Name of the instrument Date of
Allotment
Coupon
Rate (%)
Maturity
Date
Issue size
(Rs. Crore)
Complexity
Level
Rating assigned with outlook
NA Buyer Credit Limit* NA NA NA 34 NA CRISIL AA/Watch Negative
NA Term Loan NA NA Oct-2025 192 NA CRISIL AA/Watch Negative
NA Term Loan&& NA NA 30-Sep-2026 200 NA CRISIL AA-/Watch Developing
NA Proposed Term Loan NA NA NA 169.83 NA CRISIL AA/Watch Negative
NA Bank Guarantee** NA NA NA 83.2 NA CRISIL A1+/Watch Negative
NA Cash Credit# NA NA NA 368 NA CRISIL AA/Watch Negative
NA Stand By Letter of Credit NA NA NA 27.97 NA CRISIL AA/Watch Negative
NA Non-convertible debentures^ NA NA NA 150 Simple CRISIL AA/Watch Negative

#Fully interchangeable with overdraft facility/inland bills discounting/working capital loan

*Fully interchangeable with letter of credit

** Fully interchangeable with WCDL/inland LC

^Not placed yet

&& Rs 80.0 crore has been repaid till September 30, 2023

Annexure – List of entities consolidated

S. No

Name of Entity

Extent of Consolidation

Rationale for Consolidation

1

Allcargo Supply Chain Private Limited (formerly Avvashya Supply Chain Private Limited)

Full

100% subsidiary (w.e.f. June 01, 2023)

2

Allcargo Gati Limited (Formerly known as ‘Gati Limited’)

Full

Subsidiary

3

Ecu International (Asia) Pvt. Ltd.

Full

Subsidiary

4

Zen Cargo Movers Private Limited

Full

Subsidiary

5

Gati Logistics Parks Private Limited

Full

Subsidiary

6

Gati Import Export Trading Limited

Full

Subsidiary

7

Gati Project Private Limited

Full

Subsidiary

8

Contech Logistics Solutions Pvt. Ltd.

Full

Subsidiary

9

Comptech Solutions Pvt. Ltd.

Full

Subsidiary

10

TransIndia Logistic Park Pvt Ltd.

Full

Subsidiary

11

Ecu Worldwide (Argentina) SA

Full

Subsidiary

12

Integrity Enterprises Pty Ltd

Full

Subsidiary

13

FMA-Line Holding N. V.

Full

Subsidiary

14

Ecu International N.V.

Full

Subsidiary

15

HCL Logistics N.V.

Full

Subsidiary

16

AGL N.V.

Full

Subsidiary

17

Ecu Worldwide Logistics do Brazil Ltda

Full

Subsidiary

18

Ecu Worldwide (Chile) S.A.

Full

Subsidiary

19

Ecu Worldwide (Guangzhou) Ltd.

Full

Subsidiary

20

China Consolidation Services Shipping Ltd  (Formerly known as ‘Ecu Worldwide China Ltd’)

Full

Subsidiary

21

Nordicon Terminals AB

Full

Subsidiary

22

ECU WORLDWIDE (CZ) s.r.o.

Full

Subsidiary

23

Flamingo Line del Ecuador SA

Full

Subsidiary

24

Ecu Worldwide (El Salvador) S.P. Z.o.o S.A. de CV

Full

Subsidiary

25

ELWA Ghana Ltd.

Full

Subsidiary

26

Ecu Worldwide (Hong Kong) Ltd.

Full

Subsidiary

27

CCS Shipping Ltd.

Full

Subsidiary

28

Ecu Worldwide Italy S.r.l.

Full

Subsidiary

29

Ecu Worldwide (Cote d'Ivoire) sarl

Full

Subsidiary

30

Jordan Gulf for Freight Services and Agencies Co. LLC

Full

Subsidiary

31

Ecu Shipping Logistics (K) Ltd.

Full

Subsidiary

32

Ecu Worldwide (Mauritius) Ltd.

Full

Subsidiary

33

Ecu Worldwide Mexico SA de CV

Full

Subsidiary

34

Ecu Worldwide (Netherlands) B.V.

Full

Subsidiary

35

FCL Marine Agencies B.V.

Full

Subsidiary

36

Ecu Worldwide (Panama) S.A

Full

Subsidiary

37

Flamingo Line del Peru SA

Full

Subsidiary

38

Ecu Worldwide (Philippines) Inc.

Full

Subsidiary

39

Ecu-Line Doha W.L.L.

Full

Subsidiary

40

Ecu - Worldwide (Singapore) Pte. Ltd

Full

Subsidiary

41

Ecu-Line Spain S.L.

Full

Subsidiary

42

Ecu Worldwide (BD) Limited

Full

Subsidiary

43

Société Ecu-Line Tunisie Sarl

Full

Subsidiary

44

Ecu-Line Middle East LLC

Full

Subsidiary

45

Eurocentre FZCO

Full

Subsidiary

46

Ecu Worldwide (UK) Ltd

Full

Subsidiary

47

PRISM GLOBAL, LLC

Full

Subsidiary

48

Econoline Storage Corp.

Full

Subsidiary

49

OTI Cargo, Inc.

Full

Subsidiary

50

Administradora House Line C.A.

Full

Subsidiary

51

Ecu Worldwide Vietnam Joint Stock     Company

Full

Subsidiary

52

Ecu-Line Zimbabwe (Pvt) Ltd.

Full

Subsidiary

53

Eculine Worldwide Logistics Co. Ltd.

Full

Subsidiary

54

FMA-LINE Nigeria Ltd.

Full

Subsidiary

55

FMA Line Agencies Do Brasil Ltda

Full

Subsidiary

56

Oconca Container Line S.A. Ltd.

Full

Subsidiary

57

ECU WORLDWIDE SERVICIOS SA DE CV

Full

Subsidiary

58

ECU Worldwide CEE S.R.L

Full

Subsidiary

59

Ecu Worldwide Baltics

Full

Subsidiary

60

East Total Logistics B.V.

Full

Subsidiary

61

ECU Worldwide Tianjin Ltd

Full

Subsidiary

62

SPECHEM SUPPLY CHAIN MANAGEMENT (ASIA) PTE. LTD

Full

Subsidiary

63

Asiapac Logistics Mexico SA de CV

Full

Subsidiary

64

Gati Hong Kong Limited

Full

Subsidiary

65

ALX Shipping Agencies India Private Limited

Full

Subsidiary

66

ECUNORDICON AB

Full

Subsidiary

67

NORDICON A/S

Full

Subsidiary

68

Ecu Worldwide India Pvt Ltd (Formerly known as ‘Panvel Industrial Parks Private Limited’)

Full

Subsidiary

69

Ports International Inc

Full

Subsidiary

70

Zen Cargo Movers Private Limited

Full

Subsidiary

71

Antwerp Freight Station NV (Formerly known as Ecu Global Services N.V.)

Full

Subsidiary

72

Ecu Worldwide (Cyprus) Ltd.

Full

Subsidiary

73

Ecu Worldwide (Ecuador) S.A.

Full

Subsidiary

74

Ecu World Wide Egypt Ltd

Full

Subsidiary

75

ECU WORLDWIDE (Germany) GmbH

Full

Subsidiary

76

Ecu Worldwide (Guatemala) S.A.

Full

Subsidiary

77

Ecu International Far East Ltd.

Full

Subsidiary

78

PT Ecu Worldwide Indonesia

Full

Subsidiary

79

Eurocentre Milan srl.

Full

Subsidiary

80

Ecu Worldwide (Japan) Ltd.

Full

Subsidiary

81

Ecu Worldwide (Kenya) Ltd

Full

Subsidiary

82

Ecu Worldwide (Malaysia) SDN. BHD.

Full

Subsidiary

83

CELM Logistics SA de CV

Full

Subsidiary

84

Ecu Worldwide Morocco S.A

Full

Subsidiary

85

Rotterdam Freight Station BV

Full

Subsidiary

86

Ecu Worldwide New Zealand Ltd

Full

Subsidiary

87

Ecu-Line Paraguay SA

Full

Subsidiary

88

Ecu-Line Peru SA

Full

Subsidiary

89

Ecu Worldwide (Poland) Sp zoo

Full

Subsidiary

90

Ecu-Line Saudi Arabia LLC

Full

Subsidiary

91

Ecu Worldwide (South Africa) Pty Ltd

Full

Subsidiary

92

ECU Worldwide Lanka (Private) Ltd.

Full

Subsidiary

93

Ecu Worldwide (Thailand) Co. Ltd.

Full

Subsidiary

94

Ecu Worldwide Turkey Taşımacılık Limited Şirketi

Full

Subsidiary

95

Ecu-Line Abu Dhabi LLC

Full

Subsidiary

96

Star Express Company Ltd.

Full

Subsidiary

97

Ecu Worldwide (Uruguay) S.A.

Full

Subsidiary

98

Guldary S.A.

Full

Subsidiary

99

Ecu Worldwide (USA) Inc. (Formerly known as ‘Econocaribe Consolidators, Inc’)

Full

Subsidiary

100

ECI Customs Brokerage, Inc.

Full

Subsidiary

101

Asia Line Ltd

Full

Subsidiary

102

Prism Global Ltd.

Full

Subsidiary

103

Nordicon AB

Full

Subsidiary

104

Ecu Worldwide (Uganda) Limited

Full

Subsidiary

105

FCL Marine Agencies Belgium bvba

Full

Subsidiary

106

Allcargo Hongkong Limited

Full

Subsidiary

107

Almacen y Maniobras LCL SA de CV

Full

Subsidiary

108

ECU TRUCKING, INC.

Full

Subsidiary

109

Allcargo Logistics Africa (PTY) LTD

Full

Subsidiary

110

AGL Bangladesh Private Limited

Full

Subsidiary

111

Ecu Worldwide (Bahrain) Co. W.L.L.

Full

Subsidiary

112

PAK DA (HK) LOGISTIC Ltd

Full

Subsidiary

113

Allcargo Logistics FZE

Full

Subsidiary

114

Allcargo Logistics China Ltd.

Full

Subsidiary

115

Gati Asia Pacific Pte Ltd.*

Full

Subsidiary

116

Gati Cargo Express (Shanghai) Co. Ltd.

Full

Subsidiary

117

Nordicon Trucking AB ( Formerly known as ‘RailGate Nordic AB’)

Full

Subsidiary

118

Fair Trade Gmbh Schiffhart, handel und Logistik

Full

Subsidiary

119

Asiapac Equity Investment Limited

Full

Subsidiary

120

Asiapac Logistics El Salvador

Full

Subsidiary

121

Allcargo Tanzania

Full

Subsidiary

122

Ecu-Line Algerie sarl

Full

Subsidiary

123

Ecu Worldwide Australia Pty Ltd

Full

Subsidiary

124

Ecu Worldwide (Belgium) N.V

Full

Subsidiary

125

Ecuhold N.V.

Full

Subsidiary

126

Ecu Worldwide N.V. (Formerly known as ‘Allcargo Belgium N.V.’)

Full

Subsidiary

127

Ecu Worldwide (Canada) Inc.

Full

Subsidiary

128

Flamingo Line Chile S.A. (Liquidated w.e.f. June 10, 2023)

Full

Subsidiary

129

China Consolidation Services Ltd

Full

Subsidiary

130

Ecu Worldwide (Colombia) S.A.S.

Full

Subsidiary

131

Asia Pac Logistics DE Guatemala S.A.

Full

Subsidiary

132

Asia Express Line GmbH

Full

Subsidiary

133

ASIAPAC TURKEY TASIMACILIK ANONIM SIRKETI

Full

Subsidiary

134

Allcargo ECU Limited (incorporated in August, 2023)

Full

Subsidiary

Annexure - Rating History for last 3 Years
  Current 2024 (History) 2023  2022  2021  Start of 2021
Instrument Type Outstanding Amount Rating Date Rating Date Rating Date Rating Date Rating Rating
Fund Based Facilities LT 963.83 CRISIL AA/Watch Negative,CRISIL AA-/Watch Developing 02-01-24 CRISIL AA/Watch Negative,CRISIL AA-/Watch Developing 01-11-23 CRISIL AA/Stable,CRISIL AA-/Watch Developing 22-12-22 CRISIL AA/Stable,CRISIL AA-/Watch Developing 31-12-21 CRISIL AA-/Watch Developing CRISIL AA-/Stable
      --   -- 04-08-23 CRISIL AA/Stable,CRISIL AA-/Watch Developing 23-09-22 CRISIL AA/Stable,CRISIL AA-/Watch Developing   -- --
      --   -- 08-05-23 CRISIL AA/Stable,CRISIL AA-/Watch Developing 24-03-22 CRISIL AA-/Watch Developing   -- --
      --   -- 10-02-23 CRISIL AA/Stable,CRISIL AA-/Watch Developing   --   -- --
Non-Fund Based Facilities ST/LT 111.17 CRISIL A1+/Watch Negative / CRISIL AA/Watch Negative 02-01-24 CRISIL A1+/Watch Negative / CRISIL AA/Watch Negative 01-11-23 CRISIL A1+ / CRISIL AA/Stable 22-12-22 CRISIL A1+ / CRISIL AA/Stable 31-12-21 CRISIL A1+ / CRISIL AA-/Watch Developing CRISIL A1+ / CRISIL AA-/Stable
      --   -- 04-08-23 CRISIL A1+ / CRISIL AA/Stable 23-09-22 CRISIL A1+ / CRISIL AA/Stable   -- --
      --   -- 08-05-23 CRISIL A1+ / CRISIL AA/Stable 24-03-22 CRISIL A1+ / CRISIL AA-/Watch Developing   -- --
      --   -- 10-02-23 CRISIL A1+ / CRISIL AA/Stable   --   -- --
Non Convertible Debentures LT 150.0 CRISIL AA/Watch Negative 02-01-24 CRISIL AA/Watch Negative 01-11-23 CRISIL AA/Stable 22-12-22 CRISIL AA/Stable 31-12-21 CRISIL AA-/Watch Developing CRISIL AA-/Stable
      --   -- 04-08-23 CRISIL AA/Stable 23-09-22 CRISIL AA/Stable   -- --
      --   -- 08-05-23 CRISIL AA/Stable 24-03-22 CRISIL AA-/Watch Developing   -- --
      --   -- 10-02-23 CRISIL AA/Stable   --   -- --
All amounts are in Rs.Cr.
Annexure - Details of Bank Lenders & Facilities
Facility Amount (Rs.Crore) Name of Lender Rating
Bank Guarantee& 3 Axis Bank Limited CRISIL A1+/Watch Negative
Bank Guarantee& 15 YES Bank Limited CRISIL A1+/Watch Negative
Bank Guarantee& 5.2 HDFC Bank Limited CRISIL A1+/Watch Negative
Bank Guarantee& 60 RBL Bank Limited CRISIL A1+/Watch Negative
Buyer Credit Limit# 34 The Hongkong and Shanghai Banking Corporation Limited CRISIL AA/Watch Negative
Cash Credit@ 79 Kotak Mahindra Bank Limited CRISIL AA/Watch Negative
Cash Credit@ 115 Standard Chartered Bank Limited CRISIL AA/Watch Negative
Cash Credit@ 10 YES Bank Limited CRISIL AA/Watch Negative
Cash Credit@ 77 HDFC Bank Limited CRISIL AA/Watch Negative
Cash Credit@ 37 Axis Bank Limited CRISIL AA/Watch Negative
Cash Credit@ 25 The Hongkong and Shanghai Banking Corporation Limited CRISIL AA/Watch Negative
Cash Credit@ 25 DBS Bank Limited CRISIL AA/Watch Negative
Proposed Term Loan 169.83 Not Applicable CRISIL AA/Watch Negative
Standby Letter of Credit 27.97 RBL Bank Limited CRISIL AA/Watch Negative
Term Loan%% 200 Axis Bank Limited CRISIL AA-/Watch Developing
Term Loan 192 DBS Bank Limited CRISIL AA/Watch Negative
& - Fully interchangeable with WCDL/inland LC
# - Fully interchangeable with Letter of Credit
@ - fully interchangeable with Overdraft Facility/Inland Bills discounting/Working Capital Loan
%% - Rs 80.0 crore has been repaid till September 30, 2023
Criteria Details
Links to related criteria
CRISILs Approach to Financial Ratios
CRISILs Bank Loan Ratings - process, scale and default recognition
Rating criteria for manufaturing and service sector companies
CRISILs Criteria for Consolidation
Understanding CRISILs Ratings and Rating Scales
CRISILs Criteria for rating short term debt

Media Relations
Analytical Contacts
Customer Service Helpdesk

Aveek Datta
Media Relations
CRISIL Limited
M: +91 99204 93912
B: +91 22 3342 3000
AVEEK.DATTA@crisil.com

Prakruti Jani
Media Relations
CRISIL Limited
M: +91 98678 68976
B: +91 22 3342 3000
PRAKRUTI.JANI@crisil.com

Rutuja Gaikwad 
Media Relations
CRISIL Limited
B: +91 22 3342 3000
Rutuja.Gaikwad@ext-crisil.com


Anuj Sethi
Senior Director
CRISIL Ratings Limited
B:+91 44 6656 3100
anuj.sethi@crisil.com


Aditya Jhaver
Director
CRISIL Ratings Limited
B:+91 22 3342 3000
aditya.jhaver@crisil.com


Ashish Kumar
Manager
CRISIL Ratings Limited
B:+91 22 3342 3000
ashish.kumar1@crisil.com
Timings: 10.00 am to 7.00 pm
Toll free Number:1800 267 1301

For a copy of Rationales / Rating Reports:
CRISILratingdesk@crisil.com
 
For Analytical queries:
ratingsinvestordesk@crisil.com


 

Note for Media:
This rating rationale is transmitted to you for the sole purpose of dissemination through your newspaper/magazine/agency. The rating rationale may be used by you in full or in part without changing the meaning or context thereof but with due credit to CRISIL Ratings. However, CRISIL Ratings alone has the sole right of distribution (whether directly or indirectly) of its rationales for consideration or otherwise through any media including websites and portals.


About CRISIL Ratings Limited (A subsidiary of CRISIL Limited, an S&P Global Company)

CRISIL Ratings pioneered the concept of credit rating in India in 1987. With a tradition of independence, analytical rigour and innovation, we set the standards in the credit rating business. We rate the entire range of debt instruments, such as bank loans, certificates of deposit, commercial paper, non-convertible/convertible/partially convertible bonds and debentures, perpetual bonds, bank hybrid capital instruments, asset-backed and mortgage-backed securities, partial guarantees and other structured debt instruments. We have rated over 33,000 large and mid-scale corporates and financial institutions. We have also instituted several innovations in India in the rating business, including ratings for municipal bonds, partially guaranteed instruments and infrastructure investment trusts (InvITs).
 
CRISIL Ratings Limited ('CRISIL Ratings') is a wholly-owned subsidiary of CRISIL Limited ('CRISIL'). CRISIL Ratings Limited is registered in India as a credit rating agency with the Securities and Exchange Board of India ("SEBI").
 
For more information, visit www.crisilratings.com 

 



About CRISIL Limited

CRISIL is a leading, agile and innovative global analytics company driven by its mission of making markets function better. 

It is India’s foremost provider of ratings, data, research, analytics and solutions with a strong track record of growth, culture of innovation, and global footprint.

It has delivered independent opinions, actionable insights, and efficient solutions to over 100,000 customers through businesses that operate from India, the US, the UK, Argentina, Poland, China, Hong Kong and Singapore.

It is majority owned by S&P Global Inc, a leading provider of transparent and independent ratings, benchmarks, analytics and data to the capital and commodity markets worldwide.

For more information, visit www.crisil.com

Connect with us: TWITTER | LINKEDIN | YOUTUBE | FACEBOOK


CRISIL PRIVACY NOTICE
 
CRISIL respects your privacy. We may use your contact information, such as your name, address and email id to fulfil your request and service your account and to provide you with additional information from CRISIL. For further information on CRISIL's privacy policy please visit www.crisil.com.



DISCLAIMER

This disclaimer is part of and applies to each credit rating report and/or credit rating rationale ('report') that is provided by CRISIL Ratings Limited ('CRISIL Ratings'). To avoid doubt, the term 'report' includes the information, ratings and other content forming part of the report. The report is intended for the jurisdiction of India only. This report does not constitute an offer of services. Without limiting the generality of the foregoing, nothing in the report is to be construed as CRISIL Ratings providing or intending to provide any services in jurisdictions where CRISIL Ratings does not have the necessary licenses and/or registration to carry out its business activities referred to above. Access or use of this report does not create a client relationship between CRISIL Ratings and the user.

We are not aware that any user intends to rely on the report or of the manner in which a user intends to use the report. In preparing our report we have not taken into consideration the objectives or particular needs of any particular user. It is made abundantly clear that the report is not intended to and does not constitute an investment advice. The report is not an offer to sell or an offer to purchase or subscribe for any investment in any securities, instruments, facilities or solicitation of any kind to enter into any deal or transaction with the entity to which the report pertains. The report should not be the sole or primary basis for any investment decision within the meaning of any law or regulation (including the laws and regulations applicable in the US).

Ratings from CRISIL Ratings are statements of opinion as of the date they are expressed and not statements of fact or recommendations to purchase, hold or sell any securities/instruments or to make any investment decisions. Any opinions expressed here are in good faith, are subject to change without notice, and are only current as of the stated date of their issue. CRISIL Ratings assumes no obligation to update its opinions following publication in any form or format although CRISIL Ratings may disseminate its opinions and analysis. The rating contained in the report is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment or other business decisions. The recipients of the report should rely on their own judgment and take their own professional advice before acting on the report in any way. CRISIL Ratings or its associates may have other commercial transactions with the entity to which the report pertains.

Neither CRISIL Ratings nor its affiliates, third-party providers, as well as their directors, officers, shareholders, employees or agents (collectively, 'CRISIL Ratings Parties') guarantee the accuracy, completeness or adequacy of the report, and no CRISIL Ratings Party shall have any liability for any errors, omissions or interruptions therein, regardless of the cause, or for the results obtained from the use of any part of the report. EACH CRISIL RATINGS PARTY DISCLAIMS ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING BUT NOT LIMITED TO ANY WARRANTIES OF MERCHANTABILITY, SUITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall any CRISIL Ratings Party be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of any part of the report even if advised of the possibility of such damages.

CRISIL Ratings may receive compensation for its ratings and certain credit-related analyses, normally from issuers or underwriters of the instruments, facilities, securities or from obligors. Public ratings and analysis by CRISIL Ratings, as are required to be disclosed under the regulations of the Securities and Exchange Board of India (and other applicable regulations, if any), are made available on its website, www.crisilratings.com (free of charge). Reports with more detail and additional information may be available for subscription at a fee - more details about ratings by CRISIL Ratings are available here: www.crisilratings.com.

CRISIL Ratings and its affiliates do not act as a fiduciary. While CRISIL Ratings has obtained information from sources it believes to be reliable, CRISIL Ratings does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives and/or relies on in its reports. CRISIL Ratings has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process. CRISIL Ratings has in place a ratings code of conduct and policies for managing conflict of interest. For details please refer to:
https://www.crisil.com/en/home/our-businesses/ratings/regulatory-disclosures/highlighted-policies.html.

Rating criteria by CRISIL Ratings are generally available without charge to the public on the CRISIL Ratings public website, www.crisilratings.com. For latest rating information on any instrument of any company rated by CRISIL Ratings, you may contact the CRISIL Ratings desk at crisilratingdesk@crisil.com, or at (0091) 1800 267 1301.

This report should not be reproduced or redistributed to any other person or in any form without prior written consent from CRISIL Ratings.

All rights reserved @ CRISIL Ratings Limited. CRISIL Ratings is a wholly owned subsidiary of CRISIL Limited.

 

 

CRISIL Ratings uses the prefix 'PP-MLD' for the ratings of principal-protected market-linked debentures (PPMLD) with effect from November 1, 2011, to comply with the SEBI circular, "Guidelines for Issue and Listing of Structured Products/Market Linked Debentures". The revision in rating symbols for PPMLDs should not be construed as a change in the rating of the subject instrument. For details on CRISIL Ratings' use of 'PP-MLD' please refer to the notes to Rating scale for Debt Instruments and Structured Finance Instruments at the following link: https://www.crisil.com/en/home/our-businesses/ratings/credit-ratings-scale.html