Shares of AVG Logistics rose over 6% in Monday’s trading session after the company announced a strategic partnership with Nestlé India Limited and Ashok Leyland Limited to strengthen green supply chain operations. The stock was trading higher following the announcement, reflecting positive market sentiment around the company’s sustainability-led logistics initiative.
In an exchange disclosure, AVG Logistics said the partnership will focus on green corridor operations through the deployment of 50 CNG-powered trucks for Nestlé India’s logistics requirements. The initiative is aimed at improving operational efficiency while significantly reducing carbon emissions across the supply chain.
Under the arrangement, the CNG fleet is expected to cover around 2.75 lakh kilometres every month. On an annual basis, the company estimates a reduction of approximately 1.10 lakh kilograms of CO₂ emissions, highlighting the environmental impact of the transition to cleaner fuel alternatives. The use of CNG vehicles is also expected to enhance cost efficiency and reduce dependency on conventional fuel-based transportation.
AVG Logistics stated that the partnership marks a key milestone in its green logistics strategy and aligns with its broader objective of integrating sustainable practices into its operations. The company acknowledged the support of senior leadership from Nestlé India, including Varun Gupta, Supply Chain Director for Nestlé SAR, and Balbir S Bhalla, Head of Physical Logistics for SAR, for their role in enabling the initiative. Ashok Leyland’s contribution was facilitated through Arindam Das, Zonal Manager, who supported the deployment of cleaner transportation solutions.
The company said it will continue to focus on technology-led logistics solutions, cost-optimised transportation models, and sustainability-driven initiatives to strengthen supply chain resilience. The partnership is expected to contribute positively to operational performance while supporting environmental goals.
The announcement appears to have boosted investor confidence, with AVG Logistics emerging as a notable gainer in today’s session.
