Shares of AVG Logistics Ltd surged more than 12% on Friday after the company secured a long-term transportation contract from Haldiram-Nagpur.
The stock rose to ₹189, up 12.35% from its previous close of ₹168.22. The company has a market capitalisation of ₹337 crore and trades at a price-to-earnings ratio of 15.21.
Three-year deal signed
AVG Logistics has won a three-year transportation contract from Haldiram-Nagpur, one of India’s leading food and snack brands.
Under the agreement, the company will deploy 100 dedicated vehicles to meet the customer’s logistics and distribution requirements.
According to the company:
- Annual revenue from the contract is expected to be around ₹35 crore.
- Total contract value is estimated at about ₹105 crore over three years.
Fleet to cover multiple regions
The 100-vehicle fleet will serve markets across:
- Western India.
- Southern India.
- Odisha.
- Bihar.
- Jharkhand.
The company said the expanded fleet will operate on key distribution routes to:
- Improve service coverage.
- Reduce turnaround times.
- Enhance last-mile delivery efficiency.
Focus on FMCG logistics
The latest order adds to AVG Logistics’ presence in the FMCG segment.
The company already provides logistics services to several consumer goods companies, including:
- Nestlé.
- HUL.
- Ferrero.
- Marico.
- ITC.
- Godrej.
- Varun Beverages.
The addition of Haldiram-Nagpur strengthens its footprint in the food and snacks category.
Management comments
The company said the contract is expected to improve fleet utilisation and provide better revenue visibility over the medium term.
Commenting on the development, Sanjay Gupta, Managing Director and Chief Executive Officer, said:
“This order represents a meaningful expansion of our fleet capacity and highlights the confidence that leading FMCG companies place in our capabilities. Strengthening our presence in the FMCG sector remains a key priority.”
About the company
Founded in 2010 and headquartered in New Delhi, AVG Logistics Ltd is a multimodal logistics solutions provider.
The company operates:
- More than 3,000 owned and hired vehicles.
- Over 8.56 lakh sq. ft. of warehousing space.
Its services cover:
- Road transportation.
- Rail logistics.
- Cold chain solutions.
- Third-party logistics.
AVG Logistics caters to industries such as FMCG, automotive and cement.
TL;DR:
AVG Logistics shares climbed over 12% after the company secured a three-year transportation contract from Haldiram-Nagpur. The deal involves deploying 100 vehicles and is expected to generate around ₹35 crore in annual revenue.
AI summary:
- AVG Logistics shares gained more than 12%.
- The company secured a three-year contract from Haldiram-Nagpur.
- About 100 dedicated vehicles will be deployed.
- Annual revenue from the contract is estimated at ₹35 crore.
- Total contract value is around ₹105 crore.
