The story of Shashi Kiran Shetty, the Founder and Chairman of Allcargo Logistics, is a testament to how passion and perseverance can transform a dream into a multi-billion-dollar enterprise. Born in the small town of Bantwal in Karnataka, Shetty’s fascination with the shipping industry began in his early twenties. Today, at 66, he stands on top of a $2.5 billion logistics empire, recently honored in the Transport & Logistics category of the BT-PwC India’s Best CEOs ranking.
In 1978, Shetty left Bantwal for the bustling city of Mumbai, drawn by the sights and sounds of the maritime industry. The young man found an almost romantic allure in the busy docks, the ocean’s vastness, and the intricate choreography of cargo movement. “Ocean transportation was an adventure. The enormity, the process of unloading ships, and the movement of goods were captivating. I fell in love with it,” Shetty recalls.
Seeing a gap in India’s logistics landscape, where sophisticated shipping services were disconnected from more rudimentary transportation needs, Shetty positioned Allcargo as the bridge. His entry into the less-than-container load (LCL) segment was pivotal, giving his business a national footprint and allowing rapid expansion. “Within one or two years, we established over 20 offices across the country,” Shetty notes.
Allcargo’s journey from a modest start in the early 2000s to a global powerhouse was marked by strategic growth. The company raised $12 million by selling a 6% stake to the US-based New Vernon Wealth Management. This capital was crucial in acquiring shares in its Belgian partner, ECU Worldwide, which significantly expanded Allcargo’s size and scope. “We grew five times but managing a multicultural organization in 60 countries was challenging,” Shetty reflects.
Early in his career, Shetty learned the importance of cautious financial management. Starting with just Rs 20,000, he recognized the dangers of excessive debt and adopted a strategy of optimal leverage. “This approach has allowed us to grow faster than the market. Both scale and growth only come together if you’re doing something right,” he says.
Allcargo’s expansion strategy has been driven by a series of 18 acquisitions. These deals have been carefully chosen to enhance the company’s capabilities and global reach. “Acquisitions are always strategy-led for us,” Shetty asserts.
Despite its success, Allcargo faces significant competition both domestically and globally. In India, its subsidiary Gati competes with major players like Safeexpress, TCIEXPRESS, Blue Dart Express, and Spoton Logistics. Internationally, Allcargo vies with giants such as Vanguard Logistics and Alliance Logistics. “Different players focus on small niches, but we’re present across platforms,” says Jakhar, Shetty’s strategy lieutenant.
Looking ahead, Allcargo aims to integrate its various businesses through a digital platform, creating a super-app to streamline operations. The company aspires to rank among the Top 10 integrated logistics players globally. “The next three years are about executing our strategies, including global diversification and expanding our domestic operations,” Jakhar explains.
Off the field, Shetty finds parallels between golf and business. Having taken up the sport 25 years ago, he believes that its lessons in strategy, attention to detail, and consistency have guided his journey in business. “Golf teaches you to be competitive and strategy-led. These are the same principles I apply in business,” he shares.
