New Delhi, July 21: AVG Logistics Ltd has entered the liquor logistics business after finalizing the commercial terms of long-term transportation contracts with two leading companies in the alcoholic beverages industry, a move the company expects will open up a new high-margin revenue stream.
The company informed the stock exchanges that it has signed long-term agreements with two domestic liquor companies for logistics and transportation services. While the names of the customers were not disclosed, the contracts are valid for five years.
AVG Logistics expects the new business to generate approximately ₹25 crore in revenue during FY2026-27, with annual revenue from the liquor logistics segment projected to scale to around ₹100 crore from the following financial year, according to the company’s business update.
The company said the expansion marks its entry into one of India’s most regulated logistics segments, where transportation requires strict compliance, specialized handling and secure delivery systems.
As part of the offering, AVG Logistics will provide primary and secondary transportation services supported by GPS-enabled fleet tracking, real-time shipment visibility, dedicated vehicles, trained drivers and customized logistics solutions for manufacturers, distributors and retail networks.
Managing Director Sanjay Gupta said the liquor logistics business offers better profitability than conventional transportation services due to the specialized operational requirements and regulatory barriers. Gupta said,
“The liquor logistics segment is a highly specialized business that requires stringent regulatory compliance, operational and specialized handling expertise and because of these high entry barriers, the segment offers attractive margins compared to regular logistics services. Our entry into this business is expected to strengthen the Company’s service portfolio while contributing positively to its overall financial performance through improved profitability and sustainable long-term growth.”
The company believes the new business vertical will diversify its service portfolio, improve fleet utilization, expand its customer base and contribute to revenue growth and operational efficiencies over the medium to long term. It also expects to add more customers in the liquor industry as the business scales.
AVG Logistics provides multimodal logistics services across road and rail transportation, cold-chain logistics, warehousing and third-party logistics (3PL). The company operates through more than 70 automated branches across India, employs over 600 people, manages a fleet of more than 3,000 owned and hired vehicles, and has approximately 856,369 square feet of warehousing space.
For FY2024-25, the company reported revenue of ₹551.52 crore, EBITDA of ₹95.57 crore, and profit before tax of ₹26.33 crore.