Empowering Growth: How Allcargo Gati’s Tailored Logistics Solutions Drive MSME Success in India

CXOToday has engaged in an exclusive interview with Mr. Uday Sharma – Chief Commercial Officer – Allcargo Gati Limited

How has Allcargo Gati tailored its logistics solutions to address the specific needs of MSMEs across India? Can you elaborate on the initiatives Allcargo Gati has undertaken to support MSME cluster development?

Allcargo Gati understands that MSMEs require agile, cost-effective, and scalable logistics solutions to thrive in a competitive market. To cater to their specific needs, we offer end-to-end logistics services that include express distribution, warehousing, and last-mile delivery. These services are designed to enhance supply chain efficiency, reduce transit times, and optimise costs. To support MSME cluster development, Allcargo Gati has launched tailored programmes focusing on capacity-building workshops, skill development, and digital transformation initiatives. These initiatives empower MSMEs with the knowledge and tools to streamline their operations and adapt to changing market dynamics. Our extensive network ensures connectivity even in remote areas, enabling MSMEs to access new markets and grow their businesses.

Can you briefly highlight Indian government’s policies for MSMEs, such as the Emergency Credit Line Guarantee Scheme or Fund of Funds initiatives?

The Indian government has implemented several policies to support MSMEs, particularly during challenging economic times.

Key initiatives include:

• Emergency Credit Line Guarantee Scheme (ECLGS):Offers collateral-free loans to MSMEs to address liquidity challenges and sustain operations.
• Fund of Funds for MSMEs:Provides equity funding to MSMEs with growth potential, enabling them to scale and attract additional investments.
• Ease of Doing Business Initiatives: Simplifies regulatory compliance, GST processes, and approvals, reducing the operational burden on MSMEs.
• Skill Development Programmes: Enhances workforce capabilities, preparing MSMEs for technological advancements.

These measures collectively create an ecosystem that fosters innovation, financial stability, and market access for MSMEs.

What is the symbiotic relationship between private sector logistics players and government interventions, creating a comprehensive ecosystem that fosters MSME growth and resilience?

The private sector and government work hand-in-hand to create a supportive ecosystem for MSMEs. Government policies such as ECLGS, skill development initiatives, and digital transformation support provide the foundational framework for MSME growth.

Private sector logistics players like Allcargo Gati complement these efforts by offering specialised solutions that address the operational challenges MSMEs face. By providing scalable infrastructure, advanced technology, and market access, private players enable MSMEs to leverage government support effectively. This symbiotic relationship ensures that MSMEs not only survive disruptions but thrive in a competitive environment.

What are the common hurdles challenges MSMEs face today, and how is Allcargo Gati helping them overcome these hurdles?

MSMEs commonly face challenges such as high transportation costs, limited supply chain visibility, and inefficiencies in inventory management. Additionally, disruptions in global trade and geopolitical events often lead to delayed shipments and missed delivery deadlines.

Allcargo Gati addresses these hurdles by offering:

• Tech-enabled solutions: Enhanced supply chain visibility through real-time tracking and predictive analytics.
• Flexible logistics services: Customised options that adapt to varying business sizes and needs.
• Extensive network: Delivering to 19,800 Pincodes and reaching out to 735 out of 738 districts across India, ensuring reliable and timely deliveries even to remote locations.
• Digital transformation initiatives: Helping MSMEs embrace automation and efficiency in their supply chain operations.

These interventions enable MSMEs to overcome logistical barriers, streamline operations, and achieve cost efficiency.

Allcargo Gati provides support to MSMEs across India by providing seamless logistics distribution. From facilitating trade in western hubs like Solapur to connecting key northern markets including Agra, Ludhiana, Moradabad, Meerut, and Saharanpur we ensure reliable transport solutions. With our growing presence in southern regions like Mangalore, Coimbatore, Kerala and Kanchipuram in Tamil Nadu, we are steadfast in our mission to become the go-to logistics partner for MSMEs nationwide.

What opportunities do you foresee for MSMEs as they adopt more robust logistics and supply chain practices?

By adopting robust logistics and supply chain practices, MSMEs can unlock significant opportunities such as:

• Improved operational efficiency: Automation and digitisation reduce lead times and optimise resource utilisation.
• Market expansion: Reliable logistics support enables access to new domestic and international markets.
• Customer satisfaction: Enhanced delivery timelines and transparency improve customer trust and loyalty.
• Cost savings: Sustainable logistics practices minimise waste and reduce operational costs.

These opportunities position MSMEs for long-term growth, resilience, and competitiveness in an evolving global market.

As we approach the year-end, how would you assess Allcargo Gati’s contribution to MSMEs this year, and what are the key takeaways from 2024?

In 2024, Allcargo Gati has been a steadfast partner to MSMEs, enabling their growth through innovative logistics solutions, technology integration, and capacity-building initiatives. Our efforts have focused on empowering MSMEs to navigate global trade disruptions, embrace digital transformation, and achieve sustainability goals.

Key takeaways from this year include

Strengthened MSME partnerships: Through tailored solutions and cluster-focused programmes, we have deepened our engagement with the MSME sector.

Pioneering digital initiatives: By promoting supply chain digitisation, we have helped MSMEs enhance operational visibility and efficiency.

Expanding Reach with Sustainable Practices: With over 1,700 Alternative Fuel Vehicles (AFVs) pledged for eco-friendly first and last-mile deliveries, we are helping MSMEs achieve cost efficiency and environmental compliance. Our network directly serves 5,400 pin codes and spans 19,800 pin codes across 735 districts, including tier 2 and 3 cities, ensuring seamless logistics while prioritizing green solutions for MSMEs.

Empowering a Diverse Workforce: Our collaboration with MSMEs extends beyond logistics by fostering inclusivity. Women in MSME clusters and Allcargo Gati warehouses are actively engaged in sorting and distribution, playing a vital role in streamlining product flow to wholesalers and retail markets. This approach highlights our commitment to creating opportunities and driving diversity across the supply chain.

Looking ahead, we aim to further our contributions by fostering innovation, expanding market access, and strengthening resilience within India’s MSME ecosystem.