AVG Logistics Soars 9% on New Liquid Cargo Transport Service Launch

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AuthorIshaan Verma|Published at:
AVG Logistics Soars 9% on New Liquid Cargo Transport Service Launch
Overview

AVG Logistics shares surged 8.9% to ₹186.95 on Friday, propelled by the launch of its specialized rail-based liquid cargo transport service. The company expects this new vertical, utilizing ISO tanks and targeting ₹22-24 crore annual revenue, to diversify its business beyond traditional freight, offering a sustainable, multimodal solution for bulk liquid chemicals.

AVG Logistics' shares experienced a significant rally on Friday, marking an intraday gain of 8.9 percent to reach ₹186.95 per share on the BSE. This upward movement was directly linked to the company's announcement regarding the launch of a new strategic business vertical: the transportation of liquid cargo utilizing high-grade ISO tanks.

New Vertical Drives Share Rally

The stock was trading 4.31 percent higher at ₹179 at 12:37 PM, in contrast to the broader BSE Sensex which declined by 0.78 percent. AVG Logistics commands a market capitalization of ₹269.53 crore, with its stock hovering between a 52-week high of ₹357.15 and a low of ₹156.4.

Strategic Rail-Based Expansion

AVG Logistics Limited announced its entry into the high-growth liquid cargo transportation segment. This specialized rail-based vertical is designed for the safe and efficient transport of bulk liquid chemicals across India's major industrial corridors, representing a strategic expansion from its traditional van parcel and freight services.

Revenue Projections and Capacity

The company has secured a long-term lease for a flatbed train from the Central Warehousing Corporation. Each train is configured to carry 96 ISO tank containers, offering a total capacity of roughly 3,100 tons per trip. AVG Logistics anticipates this initiative will generate annual revenue of approximately ₹22–24 crore, highlighting the commercial potential of the liquid logistics market.

Sustainable Multimodal Approach

This new rail solution will complement AVG Logistics' recently imported fleet of ISO tankers. By combining rail for long-haul movements with specialized road transport for first and last-mile delivery, the company aims to provide a seamless, end-to-end ecosystem. This multimodal approach is expected to significantly reduce transit times, lower handling risks, and ensure strict compliance with safety and regulatory standards compared to road-only transport.

The shift toward rail-led logistics aligns with the company’s focus on environmental sustainability, as rail transport reduces carbon emissions per ton-kilometer, eases road congestion, and optimizes fuel consumption. This model offers a scalable and eco-friendly alternative for the chemical, pharmaceutical, and industrial sectors. AVG Logistics plans to scale its liquid logistics operations based on market demand and corridor viability, aiming to become a comprehensive multimodal logistics partner for India’s expanding industrial liquid export ecosystem.

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