Alibaba gets Gurgaon-based company on eCommerce, ties up with Allcargo Logistics

In yet another move to prop up PM Narendra Modi’s ‘Make in India’ and ‘digital India plan’, the leader of eCommerce market, Alibaba tied-up with Gurgaon-based Allcargo Logistics' overseas subsidiary ECU Line. The alignment has been made to ship less-than-container load or LCL consignments to India.

A business enterprise of Avvashya Group, Allcargo, last year bought US-based Econocaribe Consolidators and became world's chief player in LCL sector. Allcargo’s plan to enter into eCommerce market became a major reason of the tie-up.

LCL refers to cargo that isn't enough to fill a standard cargo container and is grouped with other consignments bound for the same destination. The pact between Alibaba and Allcargo would ensure faster delivery of small consignments as orders would be clubbed with other ones and won’t wait for one container to be filled up.

With LCL getting boom into eCommerce sector, the $1 billion industry is looking forward to grow as much as $32 billion by 2020, said retail advisory Technopak.

Allcargo's founder and Chairman Shashi Kiran Shetty, in an interview with ET, said, "We have tie-ups with suppliers. So we pick it up, put it in containers and deliver in your house.” Talking about the company’s further plans Shetty said, “Allcargo plans to get into the ecommerce segment in a year's time and may look at acquisitions in the sector. We have transportation capabilities. They can easily manage and run all small and big trucks. We have an air freight division... a global network of freight forwarders. We have land banks which we can use to set up fulfilment centres.”