Synopsis: AVG Logistics Limited has finalized the commercial terms of long-term logistics contracts with two leading companies in the liquor industry, marking its entry into the specialised liquor logistics segment. The company expects to generate around Rs. 25 crore in revenue during FY27, with the business targeted to scale to nearly Rs. 100 crore annually from the next financial year, strengthening its diversified logistics portfolio and improving long-term growth prospects.
Shares of AVG Logistics Limited are likely to remain in focus after the company announced its strategic entry into the liquor logistics and transportation segment by finalising the commercial terms of long-term contracts with two renowned companies in the liquor industry. The agreements are expected to diversify the company’s service portfolio while opening a new high-margin business vertical.
AVG Logistics Limited has a total market capitalization of approximately Rs. 387 crore. The company’s shares were trading at Rs. 200.50 apiece on the stock exchange, down by 0.57 percent. The stock has declined 2.66 percent over the last five trading sessions and gained 6.27 percent over the last month. The stock touched a 52-week high of Rs. 281.85 and a 52-week low of Rs. 113.20.
According to the company’s exchange filing, AVG Logistics has finalised the commercial terms for two long-term logistics and transportation contracts in the liquor segment. The contracts will run for five years, with the company expecting to generate approximately Rs. 25 crore in revenue during FY27. Management also expects the liquor logistics business to scale rapidly and contribute around Rs. 100 crore in annual revenue from the following financial year, highlighting the significant growth potential of the new vertical.
The company stated that the new business will offer specialised services including secure primary and secondary transportation, GPS-enabled fleet monitoring, real-time shipment visibility, dedicated vehicles, trained drivers and customised logistics solutions for manufacturers, distributors and retail networks. Given the highly regulated nature of alcohol transportation, logistics providers are required to maintain stringent compliance standards, making specialised capabilities a key competitive advantage.
The strategic entry into liquor logistics is expected to strengthen AVG Logistics’ diversified service portfolio while improving fleet utilisation and expanding its customer base. Unlike conventional freight transportation, liquor logistics typically commands higher operating margins due to strict regulatory requirements, specialised handling, secure transportation and higher entry barriers. As a result, the company believes the new vertical will contribute positively to revenue growth, operational efficiency and profitability over the medium to long term.
The move also reduces the company’s dependence on traditional logistics segments by creating an additional revenue stream in a niche market with relatively limited organised competition. Successful execution of these contracts could enhance AVG Logistics’ credentials in specialised logistics, enabling it to secure additional customers from the alcoholic beverages industry and further expand its presence in regulated supply chains.
Commenting on the development, Mr. Sanjay Gupta, Managing Director of AVG Logistics Limited, said that the liquor logistics segment requires stringent regulatory compliance and specialised handling expertise, resulting in higher entry barriers and more attractive margins compared to conventional logistics services. He added that the company’s entry into this segment is expected to strengthen its service portfolio while contributing to sustainable long-term growth and improved financial performance.
India’s organised logistics industry continues to benefit from rising consumption, supply chain formalisation, GST-led efficiencies and increasing outsourcing by businesses. At the same time, specialised logistics segments such as pharmaceuticals, cold chain and liquor transportation are witnessing strong demand, driven by stricter compliance requirements and the need for technology-enabled logistics solutions. Companies with diversified capabilities across these niche segments are expected to benefit from sustained long-term industry growth.
For investors, the development represents a strategic diversification rather than just another customer contract. The expected jump from Rs. 25 crore in FY27 revenue to nearly Rs. 100 crore annually thereafter highlights management’s confidence in the new business vertical. If the company successfully scales operations while maintaining margins, liquor logistics could become a meaningful contributor to earnings and strengthen AVG Logistics’ long-term growth profile.
Incorporated in 2010, AVG Logistics Limited is engaged in transportation of goods, warehousing, third-party logistics (3PL), multimodal transportation and other supply chain solutions. The company provides road, rail, cold chain and warehousing services, supported by a nationwide network of more than 70 automated branches, a fleet of over 3,000 owned and hired vehicles, approximately 8.56 lakh square feet of warehousing space and a diversified customer base spanning FMCG, automotive, pharmaceuticals, consumer goods and industrial sectors.
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