Ashapura Logistics Ltd Management Discussions

This Report contains forward-looking statements that involve risks and uncertainties. When used in this Report, the words anticipate, believe, estimate, expect, intend, will and other similar expressions as they relate to the Company and/or its Businesses are intended to identify such forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Actual results, performances or achievements could differ materially from those expressed or implied in such forward-looking statements. Readers are cautioned not to place undue reliance on these forwardlooking statements that speak only as of their dates. This report should be read in conjunction with the financial statements included and the notes.

INDUSTRY STRUCTURE AND DEVELOPMENT GLOBAL OUTLOOK

The global transport and logistics industry remains a cornerstone of international trade and supply chains, facilitating the movement of goods across geographies and enabling global commerce. In 2024, the global logistics market was estimated at around US$10-11 trillion, and is projected to grow at a CAGR of 5-6% through 2030, reaching nearly US$15 trillion. Growth is being driven by rising global trade volumes, expansion of e-commerce, greater outsourcing of logistics functions to 3PL/4PL providers, and increasing demand for time-definite, efficient, and resilient supply chains.

Trade & Policy Drivers

Global trade recovery, following pandemic-era disruptions and supply chain realignments, continues to influence demand for transport and logistics services. Initiatives such as the Regional Comprehensive Economic Partnership (RCEP) in Asia-Pacific, the USMCA in North America, and Europes Green Deal transport policies are reshaping global trade corridors and logistics requirements. Additionally, the ongoing reconfiguration of supply chains with a China+1 strategy and nearshoring trends are stimulating investment in multimodal hubs across Asia, Eastern Europe, and Latin America.

Technology & Digitisation

Technology remains a critical driver of competitiveness in the sector. Adoption of artificial intelligence, IoT- enabled fleet management, robotics in warehousing, blockchain-based trade documentation, and digital freight marketplaces is enhancing efficiency and transparency. The rise of e-commerce and direct- to-consumer channels globally is also accelerating demand for last-mile delivery solutions, pushing logistics providers to invest in automation and real-time visibility systems.

Sustainability & Green Transition

Sustainability is increasingly shaping global logistics strategies. Regulatory frameworks, particularly in the EU and North America, are pushing for carbon-neutral transport, wider adoption of electric vehicles, alternative fuels (biofuels, hydrogen, LNG), and energy-efficient warehousing. International shipping is transitioning under IMO 2050 decarbonisation targets, while airlines and freight forwarders are expanding investments in sustainable aviation fuel (SAF) to reduce emissions.

Challenges & Risks

Despite its positive trajectory, the global transport and logistics industry faces significant challenges, including geopolitical tensions, volatile fuel prices, regulatory complexities, labour shortages, and port congestion in critical trade lanes. The industry also remains exposed to climate-related risks, requiring investments in resilient infrastructure and diversified sourcing strategies.

Outlook

Overall, the global transport and logistics industry is expected to witness stable and broad-based growth over the medium to long term, supported by trade expansion, e-commerce penetration, digital transformation, and sustainability imperatives. Companies that can scale globally, leverage digital ecosystems, and align with green supply chain mandates are best positioned to capture market share in this evolving landscape.

FIGURE 1.1 Global economic prospects

Growth rates in advanced economies as a whole and in China are projected to slow in 2025 to well below their 2010-19 average paces. Although growth is forecast to firm slightly in many EMDEs, it will remain below pre-pandemic average rates in countries with weak credit ratings. Global inflation is projected to continue receding only gradually, as demand softens. Advanced-economy monetary policies are expected to remain tight—including in the United States, following the largest and fastest increase in real policy rates since the early 1980s. Global trade, virtually stagnant in 2024, is set to resume slow growth in 2025. In all, 2020-24 marks the weakest start to a decade for global growth since the 1990s. Rising interest rates have driven borrowing costs well above nominal growth rates in many EMDEs, particularly those with weaker creditworthiness, squeezing fiscal space.

INDIAN ECONOMY

Overview of the Indian Economy (1950-2014)

Initially (1950-1980), India operated as a closed economy with import substitution, export subsidies, and strict controls on technology and investment. Post-1980, recognizing the limitations of this approach, pro -business reforms were introduced, including import liberalization, export incentives, and an expansionary fiscal policy. While these changes aimed to enhance productivity and boost demand through improved credit availability and increased public expenditure, they also led to unsustainable investments, questionable loans, and a Balance- of-Payments (BoP) crisis in 1990-91.

The 1991 Balance-of-Payments (BoP) crisis marked a turning point in Indias economic trajectory. Reforms were initiated to dismantle a complex system of rules, licenses, and state ownership biases, shifting away from inward looking trade strategies. India moved towards becoming a market economy by removing industrial licensing and liberalizing foreign direct investment (FDI). However, the latter half of the 1990s experienced a growth slowdown, influenced by the East Asian financial crisis, fiscal setbacks, agricultural challenges, structural reform delays, and political instability. Some attribute the slowdown to inflation-driven monetary tightening.

The early 2000s experienced robust domestic economic activity, improved corporate performance, a favorable investment climate, and positive sentiments toward India as a preferred investment destination. Transformative reforms from 1998-2002 contributed to this growth, global economic expansion, and increased capital flows to India. Initiatives like Sarva Shiksha Abhiyan (SSA), National Rural Health Mission (NRHM), and National Rural Employment Guarantee Scheme (NREGS) were implemented. However, the global financial crisis in 2008 revealed vulnerabilities, leading to a rise in bad debts in banks, reaching double-digit percentages by March 2018, primarily originating between 2006 and 2008.

During 2009-2014, the government aimed to sustain growth through persistent high fiscal deficits and prolonged loose monetary policies. Nominal GDP growth remained elevated due to high inflation, with India experiencing annual double-digit inflation rates for five consecutive years. The country grappled with significant twin deficits - a fiscal deficit of 4.9% in FY13 and a current account deficit of 4.8% in FY13 - leading to an overvalued rupee. In 2013, these challenges Culminated in a sharp depreciation of the Indian rupee against the US dollar, declining annually by 5.9%. Consequently, economic growth stagnated.

INDUSTRY: FREIGHT FORWARDING, WAREHOUSING AND LOGISTICS SERVICES

Freight forwarding and logistic services are services of any kind relating to the carriage (performed by single mode or multimodal transport means), consolidation, storage, handling, packing or distribution of goods, as well as ancillary and advisory services in connection therewith, including but not limited to customs and fiscal matters, declaring the goods for official purposes, procuring insurance of the goods and collecting or procuring payment or documents relating to the goods. Freight forwarding services also include logistic services with modern information and communication technology in connection with the carriage, handling or storage of the goods, and de facto total supply chain management. These services can be tailored to meet the flexible application of the services provided. Freight forwarding is all about the facilitation of international trade. The freight forwarder is the party who ensures that internationally traded goods move from point of origin to point of destination to arrive: •

• at the right place

• at the right time

• in good condition

• at the most economical cost

To accomplish this, expertise is required in a number of different areas:

Logistics

Close cooperation is required with transporters in every mode - road, rail, sea and air. Freight forwarders are constantly negotiating freight rates and service conditions with transport providers, comparing the costs of moving cargo along different routes via different modes and then designing logistics service chains, which provide the best compromise between cost, speed and reliability.

Regulatory compliance

A vital ingredient to successfully trading between world markets is that every transaction must comply with many regulatory measures and requirements, sometimes carrying fairly complex procedures, especially those associated with customs and security. In the area of regulatory compliance, the specialized skills and knowledge of the freight forwarder come to the fore. Traders who avail themselves of the service of skilled freight forwarders find the assistance they need to make their trade efficient, secure and compliant.

Risk management

To every international trade transaction, there is an element of risk and the increased complexity of international trading as compared to local buying and selling requires that these risks are managed with tools which are correspondingly more sophisticated. International traders require that their forwarders be in position to advise and assist them in minimizing those risks which are particularly associated with the movement of goods - loss, damage and destruction, although the exposure of forwarders to the international environment in its entirety makes their counsel

as regards matters like credit and currency risks very much sought after.

Finance and payment

Forwarders are entrusted with goods which are often dispatched under conditions where buyer and seller are not known to one another. Under these circumstances, the forwarder must scrupulously ensure that all requirements of the door-to-door operation are fully complied with, especially where the accurate and timely production of documentation is concerned. Excellence in this field leads to prompt settlement for goods purchased, and satisfied traders. An especially gratifying aspect of freight forwarding is the facilitation, through consultancy and networking, of the entry of new exporters and importers into new markets. More often than not, this involves advice as to alternative methods of financing for the transactions concerned and the establishment of payment methods that are mutually beneficial to both parties.

Cross functional integration

The forwarder is ideally placed to act as the catalyst to maximize the benefit from advances in information technology which are revolutionizing modern traders processes. Furthermore, the role of the forwarder will be key because, in adopting cross functional integration strategies, companies are increasingly outsourcing their non-core activities. The ability to ensure the efficient and effective door-to-door movement of goods from country to country, from the time an order is placed until finished goods are delivered to the intended consignee, places the freight forwarder in a position to make a unique contribution to the enhancement of the value of the traded goods.

Macroeconomic Context

India remains one of the worlds fastest-growing major economies, with GDP expected to grow at ~6-6.5% in FY2025 (IMF/World Bank estimates). Strong domestic consumption, infrastructure spending, and government policy support continue to drive investment in transportation and logistics infrastructure. This robust economic environment provides a strong demand base for freight, logistics services, and modern warehousing.

Transport & Logistics Industry

• Industry Size & Growth: Indias logistics sector is valued at ~US$228 billion in 2024 and is projected to reach ~US$350-360 billion by 2030, growing at ~7-8% CAGR.

• Policy Support: The National Logistics Policy (NLP) and PM Gati Shakti - National Master Plan are central to reducing logistics costs (currently ~10% of GDP, vs global best practice of 7-8%) to near 9% of GDP.

• Infrastructure Expansion: Massive investments in roadways, rail freight corridors, airports, and ports are improving connectivity. The Dedicated Freight Corridors (DFC) are over 95% operational, unlocking efficiency and faster transit.

• Technology & Digitisation: Increasing adoption of digital freight platforms, real-time tracking, IoT, and warehouse management systems is modernising the sector.

Warehousing Industry

• Industry Size: The warehousing market reached ~533 million sq ft in 2024, with demand expected to double in the next 5-6 years.

• Drivers:

o E-commerce and Quick Commerce have significantly boosted demand for last-mile and fulfilment centres.

o 3PLs and organized retail are key occupiers, driving Grade-A warehousing penetration. o Cold chain warehousing is expanding rapidly, estimated at INR ~2.3 trillion (2024) and projected to reach ~INR 6 trillion by 2033 at a ~10-11% CAGR, driven by food processing, pharmaceuticals, and agriculture.

• Geographical Spread: While Tier-I cities (NCR, Mumbai, Bengaluru, Chennai) dominate, Tier-II/III hubs (Lucknow, Guwahati, Coimbatore, Ludhiana) are witnessing strong demand due to GST-led hub-and-spoke distribution.

Key Opportunities

• Multimodal Logistics Parks (MMLPs): Being developed under the Bharatmala and Sagarmala programs to integrate road, rail, and waterways.

• Green Logistics: Push for EV adoption, LNG/CNG fleets, renewable-powered warehouses.

• Private & FDI Investments: Strong inflows from global investors and private equity into logistics real estate and 3PL businesses.

Challenges

• High logistics costs compared to global benchmarks.

• Fragmentation of the trucking industry, with high share of small fleet operators.

• Fuel price volatility impacting freight rates.

• Skill gaps in supply chain management and warehouse automation

OVERVIEW OF INDIAS LOGISTICS SECTOR

The Indian logistics industry is growing, due to a flourishing e-commerce market and technological advancement. The logistics sector in India is predicted to account for 14.4% of the GDP. The industry has progressed from a transportation and storage-focused activity to a specialized function that now encompasses end-to-end product planning and management, value- added services for last-mile delivery, predictive planning, and analytics, among other things. One of the key drivers of this expansion is projected to be the rise of Indias logistics industry, which employs 22 million people and serves as the backbone for various businesses. The logistics sector in India was valued at US$ 250 billion in 2021, with the market predicted to increase to an astounding US$ 380 billion by 2025, at a healthy 10%-12% year-on- year growth rate. Moreover, the government is planning to reduce the logistics and supply chain cost in India from 1314% to 10% of the GDP as per industry standards.

The industry is crucial for the efficient movement of products and services across the nation and in the global markets. The logistics business is highly fragmented and has over 1,000 active participants, including major local players, worldwide industry leaders, the express division of the government postal service, and rising start-ups that focus on ecommerce delivery. The industry includes transportation, warehousing, and value-added services like packaging, labelling, and inventory management. With the advent of technology-driven solutions such as transportation management systems (TMS) and warehouse management systems, Indias logistics industry has witnessed tremendous development in recent years (WMS). These solutions have assisted logistics firms in increasing operational efficiency, lowering costs, and improving customer service.

OVERVIEW OF THE WAREHOUSING INDUSTRY

A warehouse is an essential component of corporate infrastructure and one of the primary enablers in the global supply chain. the Indian warehousing market is predicted to reach US$

34.99 billion (Rs. 2,872.10 billion), expanding at a CAGR of 15.64% from 2022 to 2027. Modern warehouse facilities and technology-driven solutions have changed the warehousing sector in India in recent years. With increased demand and supply throughout the years, the Indian warehousing industry is gaining traction. The key players are third-party logistics (third-party logistics) and e-commerce enterprises, which are growing into tier 2 and 3 cities and eventually increasing their proportion of secondary marketplaces. Businesses are transitioning to a hub-and- spoke model while also implementing technology to simplify operations, with an eye on the larger picture of ease, efficiency, and sustainability.

Grade A warehouses are modernized buildings created specifically to meet the needs of warehouse logistics. They feature the most up-to-date technology, superior building materials, a prime location, and a convenient traffic interchange. Grade B objects are outdated buildings that must be rebuilt to satisfy modern warehouse logistics standards.

As depicted in the below chart, India saw a 21% year-over-year increase in the total stock of Grade A and B warehouse space in the top eight cities in 2021. The total warehousing capacity is expected to be 287 million square feet by the end of 2021, up from 238 million square feet the previous year. Grade A stock in India was 134 million square feet, representing a 5-year CAGR of 29.9%. Among the eight major cities, the three largest cities in the country, including Delhi NCR, Mumbai, and Bengaluru, contribute more than half of the warehousing stock.

As demonstrated in the below pie chart, 3PL/Logistics has remained the top segment in terms of warehouse space demand for the last five years. Various e-commerce areas, including retail, groceries, pharmacy, and food delivery, are likely to grow substantially as consumers shifted their purchasing habits from offline to online. COVID-19 has increased e-commerce adoption, increasing demand for online delivery of both essential and non-essential commodities. While the share of manufacturing demand from the Auto & Ancillaries and Engineering sectors has declined during the epidemic, demand from other consumption-based sectors such as Retail and FMCG has increased.

KEY INDUSTRY DRIVERS

• Government initiatives: The governments warehousing policy focuses on creating exclusive warehousing zones through public-private partnerships in order to reduce transportation and logistics costs and accelerate growth. The government will invest US$ 91.38 billion (Rs. 7.5 lakh crore) in infrastructure, logistics development, and multimodal connectivity in FY23. Reforms such as GST and e-way bills are fostering industrial growth, consolidation, and efficiency. The introduction of free trade logistics parks and warehousing zones.

• Global manufacturing shift: Demand for warehouse alternatives and logistics services has increased as a result of international firms relocating their manufacturing focus to India. The Production Linked Incentive (PLI) scheme is increasing domestic production and, as a result, increasing demand for industrial space and warehousing.

• New-age startups: The emergence of new-age tech logistics startups that are aggressively infiltrating this market and producing competing products. Several new businesses are entering the B2B market, driven by manufacturing. New players are introducing more technology and digital systems to boost productivity, resulting in overall industry growth.

• Technology advancement: Solutions based on modern technology are opening up chances for solution expansion throughout the entire value chain. Warehouses are being designed and integrated with technologies such as the Internet of Things (IoT), robotics, and artificial intelligence (AI). •

• Flourishing e-commerce: An increase in e-commerce leads to expanded operations to meet increased demand. Consumer behavior is changing, and they are demanding convenience through last-mile connectivity, ease of returns, and other value-added services. The expansion of Direct-to-Consumer (D2C) brands demanding end-to-end logistics services. Omni-channel retailing increases the need for several warehouses to serve end users.

INVESTMENT TRENDS:

Foreign corporations are actively investing in Indias logistics infrastructure to capitalize on the countrys strategic location, trained labour, and improved business environment. The development of industrial and logistics parks, as well as data centers, is a new bright spot on the Indian real estate heatmap. In 2022, these two segments received US$ 1.8 billion in Private Equity (PE) / Venture Capitalist (VC) investments, representing a 29% increase year on year. The industry garnered investments worth US$ 1 billion (Rs. 8,257 crore) at the beginning of 2022. The logistics and industrial industries quarterly average investment was around 1.3 times more in 2021 than it was in 2021 when it was US$ 335.69 million (Rs. 2,755) crore. Over the last four years (2019-2022), the warehouse and logistics sector has received a total institutional investment of US$ 5.4 billion, with 2022 accounting for a major 35% portion.

Warehouse investment accounted for the second greatest percentage of institutional real estate investment in both 2021 and 2022, accounting for 27% and 31%, respectively, outperforming other asset classes such as residential and retail. During the four-year period 2019-2022, the western area of the country - led by Mumbai, Pune, and Becharji, (a tiny town in Gujarat) - witnessed the second-greatest institutional investment in warehousing, accounting for 35% of total investment in the industry, demonstrating the increased confidence that investors have in the nations Tier II cities.

Industry Outlook

Indias transport and logistics industry continues its structural upcycle, supported by policy tailwinds, heavy infrastructure spend, and sustained demand from manufacturing, e-commerce, and consumption. Independent estimates place the Indian logistics market at ~US$228-230 billion in 2024, with projections of US$350-360 billion by 2030 (implying ~7-8% CAGR over 2025-2030).

Policy execution remains a key driver. The Governments PM Gati Shakti and the National Logistics Policy focus on multimodal connectivity and process digitisation. On rail, Dedicated Freight Corridors (DFC) are nearing full operationalisation, with >96% of EDFC+WDFC operational and average trains/day rising to 352 in FY2024-25 (to Feb 2025)—unlocking capacity, improving transit reliability, and lowering logistics costs.Parallelly, the ministry has targeted logistics costs near ~9% of GDP from about ~10% currently (Jun 2025), aided by expressways, digital tolling, and clean-fuel initiatives.

Within logistics real estate, Indias warehousing footprint continues to deepen beyond the top metros. Total warehousing stock reached ~533 million sq ft in 2024, with Tier-II/III cities contributing meaningfully, aligning with hub-and-spoke redistribution post-GST. Grade-A share has further strengthened through 2025.

Segment outlooks remain constructive:

• Express / CEP: Shipment volumes are projected to grow ~19-23% CAGR to FY2030, reaching ~24- 29 billion shipments, with e-commerce parcels alone expected at ~15-16 billion by FY2030.

• Cold Chain: The market is estimated at INR ~2.29 trillion in 2024, poised to reach ~INR 6.06 trillion by 2033 (~10.9% CAGR 2025-2033), supported by food processing, pharma, and quick-commerce demand.

Indias competitiveness has improved on global benchmarks: the country ranked 38th on the World Banks LPI 2023, up 16 places since 2014, reflecting gains from network planning and digital platforms such as ULIP/LDB.

Overall, management expects mid-single- to high-single-digit sector growth through 2030, with outperformance in express, cold chain, and Grade-A warehousing. Companies positioned on multimodal capability, network density, technology (tracking, WMS/TMS), and sustainability (EVs/alt-fuels, green warehousing) should capture share as policy-led frictional costs fall and service-level expectations rise.

OUTLOOK

The warehousing and logistics industry in India is a dynamic and rapidly growing sector that is expected to play an increasingly important role in the countrys economy. Despite some challenges, the sector is well-positioned for longterm growth and presents exciting opportunities for investors and businesses. With the governments focus on improving infrastructure and the rise of e-commerce, the sector is expected to be a key driver of economic growth in the country. Moreover, with the increasing adoption of technology and the governments push for a digital economy, there is also significant potential for logistics players to leverage data analytics, artificial intelligence, and machine learning to improve operational efficiency and enhance customer experience. There are also opportunities for foreign investment as international companies look to tap into Indias growing logistics market. The government has made it easier for foreign companies to invest in the sector by allowing 100% foreign direct investment in logistics parks and warehouses.

VISION. MISSION AND VALUES OF OUR COMPANY

vision

We are a dedicated team striving to bring excellence in the field of international and domestic logistics and assist our clients free from all worries of their supply chain requirements.

MISSION

Ashapura committed to build long term relationships based on integrity, performances, value and client satisfaction.

VALUES

• Customer Centric

• Collaboration

• Trustworthy

• Innovative

• Sustainability

SWOT ANALYSIS

Strength

• Diverse Services Portfolio

• Experienced Management Asset based

• Business Model Skilled Employees

Weakness

• Regulatory Challenges

• Dependency on Economic Conditions

• Capital Intensive Business

Opportunities

• Technology Integration

• Infrastructure Development

• E-commerce Growth

Threats

• Geopolitical Risks

• Supply Chain Disruptions

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE.

We are an integrated logistics company in India, primarily operating in

(i) Cargo handling and freight forwarding segment;

(ii) Transportation (including project logistics and third-party logistics (3PL));

(iii) Warehousing and Distribution and

(iv) Other services (including coastal movement).

We have pan-India operations through our network of 9 (Nine) branch offices.

Our Cargo handling and freight forwarding vertical involves various processes including loading and unloading of goods, obtaining custom clearances for cargo, stuffing and unstuffing of goods into containers. Our company can handle various type of cargos including bulk cargo, containerized cargo and Over Dimensional cargo (ODC). The centralized freight forwarding team is located in the Registered Office at Ahmedabad, while the operations are supported with strategically located branches in various sea ports like Hazira, Mundra, Pipavav, Kandla, JNPT and other ICDs that extend freight forwarding and CHA services to the existing customers.

We derive our revenue from following four business verticals:

• CARGO HANDLING

• TRANSPORTATION

• WAREHOUSING AND DISTRIBUTION

• OTHER SERVICES INCLUDING COASTAL MOVEMENT

REVENUE BIFURCATION

(Amt in Lakhs]

Particulars	For the Year Ended on 31st March, 2025	For the Year Ended on 31st March, 2024	For the Year Ended on 31st March, 2023
Cargo Handling Income	7813.64	8,220.00	7,487.46
Transportation Income	14,191.05	10,709.38	12,512.41
Warehouse Income	1091.96	951.09	847.87
Coastal Movement		20.44	1,333.91
Total	23,096.64	19,900.91	22,181.65

1. CARGO HANDLING SEGMENT

Under cargo handling segment, our company act as custom house agent for our customers. A Custom House Agent (CHA) serves as an authorized representative empowered to handle import and export activities on behalf of a company. The essential role of a Custom House Agent is to address the challenge faced by businesses, where management often lacks the resources to personally manage import and export matters.

ODC (Over Dimensional Cargo) and open cargo are two distinct types of cargo often encountered in cargo handling services:

Over Dimensional Cargo (ODC): ODC refers to freight that exceeds the standard dimensions or weight limits for shipping containers or transport vehicles. This type of cargo typically includes items such as large machinery, industrial equipment, oversized crates, and structures like wind turbine blades or bridge sections. ODC requires special handling and often necessitates customized transportation solutions due to its size, weight, and shape.

Open Cargo (bulk & break bulk shipment): Open cargo (bulk & break bulk shipment), on the other hand, refers to goods that are not enclosed within a container during transportation. This type of cargo can include various items, from bulk materials like coal, ores, and grains to large goods that dont require protection from the elements, such as vehicles or machinery parts. Open cargo is typically loaded directly onto a transport vehicle or vessel without the need for a container. Handling open cargo often involves securing the goods with straps, chains, or other means to prevent shifting or damage during transit.

Our company facilitates cargo handling services wr.t. various containers (20/40 TEUs) including Open cargo, ODC cargo

Services rendered by our company are as follows:

Client Approach or Acquisition: Under Cargo handling segment, we acquire customers through open market inquires or we receive RFQ (Request for Quotation) from customer itself. Accordingly, we receive initial estimates for the cargo to be imported or exported along with information w.r.t. nature of goods and mode of shipment and other necessary details. On the basis of the same, our company offers competitive pricing through our quotation.

Documentation: Documentation services involve collecting and managing the intricate paperwork required for the smooth movement of goods across international borders. This includes preparing and processing various documents such as invoices, packing lists, bills of lading, certificates of origin, and customs declarations. We ensure that all documentation complies with relevant regulations and accurately represents the goods being shipped. On the other hand, we also liaise with customs authorities and other stakeholders to facilitate customs clearance and ensure timely delivery of goods. Our company through its technology based set up continuously monitor each consignment and its documentation.

Obtaining Custom Declarations and Submission: Prepare the necessary customs declaration documents electronically or manually, ensuring accuracy in declaring details such as: (i) Exporter/importer details; (ii) Commodity classification (HS code); (iii) Quantity and value of goods; (iv) Country of origin; (v) Port of loading (for export) or port of entry (for import); and (vi) Other relevant information as per customs regulations. After obtaining such declaration, we submit the shipping bill (for export) or Bill of Entry (for import) along with supporting documents to the customs department and coordinate with customs officials for inspection, assessment of duties and taxes, and clearance of goods.

Further, we also ensure whether any specific procedure (For example: Fumigation) is required to be carried out before such cargo is in movement and accordingly, we complete such process adhering to specific rules and regulations.

Port Handling and Logistics: We coordinate with port authorities for handling, loading (for export), unloading (for import), and clearance of goods at the port. Loading and unloading of goods to the importer or exporter involves the efficient handling and transfer of goods at various stages of the logistics process. Our companys experienced employees oversee the loading of goods onto transportation vehicles, ensuring that they are properly secured and documented for transport. Similarly, during unloading, they supervise the safe removal of goods from the transport vehicle, verifying their condition and quantities against relevant documentation. Such arrangement ensures smooth and timely delivery of goods while adhering to import and export regulations and optimizing the supply chain process for the importer or exporter.

Along with loading and unloading procedure, our company oversees the accurate weighing and Measurement of goods to determine their volume and ensure proper utilization of cargo space during transportation. This process is crucial for calculating freight rates, optimizing container loads, and complying with shipping regulations. Further, we manage the packing and de-stuffing of goods, ensuring that they are securely packaged for transport and in compliance with relevant safety and handling requirements.

Further, as per the requirement of customer, we arrange for transportation of goods from/to the port to/from the clients designated location or warehouse, as the case may be.

Post Clearance Documentation: We are also responsible for obtaining post-clearance documents such as Bill of Lading (B/L), Airway Bill (AWB), Delivery Order, Certificate of Origin (if not submitted earlier), and any other required certificates and accordingly we provide the client with copies of all clearance and post-clearance documents for their records and compliance.

Communication and Follow-Up: We maintain regular communication with the client regarding the status of clearance, shipment, logistics, and any updates or requirements from customs or other authorities. Further we also address any issues, queries, or discrepancies that may arise during the clearance and logistics process in order to ensure timely delivery of goods and compliance with all import/export regulations and procedures.

Communication and Follow-Up: We maintain regular communication with the client regarding the status of clearance, shipment, logistics, and any updates or requirements from customs or other authorities. Further we also address any issues, queries, or discrepancies that may arise during the clearance and logistics process in order to ensure timely delivery of goods and compliance with all import/export regulations and procedures.

2. TRANSPORTATION:

Our Transportation segment is closely interconnected with our cargo handling segment. Our transportation services are of business to business (B2B) nature. Transportation segment accounted for 53.41%, 56.41%, 49.79% and 41.13% of total revenue from operations for the year ended March 31, 2024, 2023 and 2022, respectively.

As on March 31, 2025, our vehicle fleet consists of 304 owned commercial trucks including container trucks, out of which 181 trucks are owned by our material subsidiary i.e., Jai Ambe Transmovers Private Limited and 123 trucks are owned by our company. Apart from owned vehicles, we also procure services from various vendors w.r.t. hired vehicles as and when the need arises for the same. Further, we intend to procure 30 more commercial trucks from the Net Issue Proceeds. For further details regarding the same, please refer to chapter titled Object of the Issue beginning from page 83.

Our business primarily consists of term contracts. In the long-term contracts freight rates are defined for the contract period. In the contractual business, we act as a logistics service provider (LSP) to provide transportation services as a goods transportation agency (GTA) to the customer for the period specified in the contract. Our non- contractual/spot business is a one-time enquiry shared by the customer over telephone or email seeking transportation services. Spot enquiry business enables us in building relations with the new customers and create prospects of contractual business.

DOMESTIC TRANSPORT

Ashapura - Domestic Logistics Highlights

• Strategic Entry (2024): Launched domestic logistics vertical with operations in Guwahati, NCR, Bangalore, Siliguri, Kolkata, Morbi, Vapi, Haridwar, Gandhidham, Varanasi and Bhopal; secured business from ITC, HCCB(Coca-Cola), Eastman, IVL Dhunseri, CenturyPly , and others.

• Pan-India Growth Plan: Expanding into new markets with comprehensive logistics services to build a nationwide presence.

• Multimodal Operations: Offering road-rail-road and road-coastal-road combinations to deliver cost- effective, end-to-end solutions for clients in interior regions.

• Service Diversity: Operations span surface transport, rail, coastal shipping, multimodal solutions, and stockyard management.

• Stockyard Management: Managing inventory, PDI, and export vehicle dispatch for clients in Chennai.

• Commitment to Excellence: Focused on innovation, sustainability, and long-term client partnerships.

Ashapura - Domestic Logistics Vertical

During the year 2024, the Management of Ashapura took a strategic initiative to diversify into the domestic logistics vertical, with the objective of strengthening market presence and capitalizing on emerging opportunities. Following a comprehensive evaluation of potential regions, the Company launched the first phase of its expansion by establishing operations in North Region, West Region along with branch expansion in South and Central Region as well. In this phase, Ashapura successfully secured contracts from prominent business houses including ITC, Coca-Cola, Eastman, CenturPly , Jindal India Pvt. Ltd among others, thereby laying a strong foundation for its domestic logistics business.

Moving forward, the Company intends to expand its footprint into other potential markets and locations by offering comprehensive domestic logistics services to the trade. This planned growth is aligned with Ashapuras long-term vision of establishing a pan-India presence and providing value-driven, reliable, and efficient logistics solutions to its customers.

The Domestic Logistics vertical operates across all modes of transport—surface, rail, coastal shipping, and multimodal transportation—ensuring seamless connectivity and cost-effective solutions for clients. As part of its integrated approach, the Company has developed multimodal logistics operations, combining modes such as road-rail-road and road-coastal-road. This enables Ashapura to serve clients located in the interior parts of India with highly efficient and cost-effective solutions.

Ashapura remains committed to innovation, operational excellence, and sustainability, with a continued focus on building enduring partnerships and delivering superior service to its clients.

3. WAREHOUSING AND DISTRIBUTION:

We commenced our W&D services in the year 2014. Our warehousing and distribution management comprises storing products in a warehouse while offering services such as shelf-life maintenance, product mixing, packaging, crossdocking, barcode scanning, order-fulfilment, and other ancillary customer services.

We improve the accuracy and volume of throughput by providing emphasis to the layout for value-added services within our distribution centers. We design the warehouse layout, the level of technology and automation required, and the processes based on the variety and volume of goods being processed. The scope of services under warehousing segment is summarized as below:

Kitting, bundling and promotional packaging: The process of separating the goods individually and grouping the related items, packaging, and supplying them together as a single unit;

Inspection: Inspection of goods stored in the warehouse as per the requirement and instructions of client.

Unit cartonisation: Repackaging of bulk orders for sale to the end consumers;

Packaging solutions: Customizing packaging solutions as per products need, including unit sizes, special coverings and protections required, weight carrying capacities and styling and aesthetics; and

Reverse logistics: Facilitating the transport of damaged and returned inventory back to respective customer.

Ashapura Warehouse Operations

At Ashapura, warehouse operations are designed to deliver end-to-end logistics efficiency, safety, and value- added solutions that cater to diverse client requirements. With advanced infrastructure and technology-driven practices, we ensure seamless handling of cargo from receipt to final dispatch, while maintaining high service standards.

1. Inbound & Receiving Operations

• Cargo Receipt & Documentation: All inbound cargo arriving from plants, suppliers, or ports is systematically verified against client instructions and documentation.

• Unloading & Inspection: Goods are unloaded using mechanized handling equipment, followed by detailed quality and damage checks.

• ERP/WMS Integration: Inward entries are recorded in real-time, ensuring complete stock visibility for clients.

2. Storage & Inventory Management

• High-Density Warehousing: Our state-of-the-art warehouse is designed with G+5 multi-level racking systems, maximizing space utilization for a built-up area of 95,000 sq. ft.

• Stockyard Management: Dedicated facilities at key locations (e.g., Chennai) allow for bulk cargo storage, vehicle inventory management, and Pre-Delivery Inspection (PDI) prior to export dispatch.

• Inventory Practices: FIFO/FEFO methods are applied as per product requirements, supported by barcode/RFID-based stock traceability.

• Customized Storage Solutions: Offering palletized, bulk, and special handling zones for varied cargo profiles.

3. Value-Added Services (VAS)

• Pre-Delivery Inspection (PDI): For automotive clients, PDI activities are carried out before dispatch to port/export.

• Kitting & Bundling: Preparing consolidated cargo kits for export and domestic requirements.

• Fumigation & Palletization: Ensuring compliance with international trade standards.

• Cargo Netting & Container Sealing: To maintain cargo safety and integrity during transit.

4. Outbound Operations

• Efficient Order Processing: Orders are picked, packed, and staged for dispatch with accuracy and speed.

• Dispatch & Transport Coordination: Integration with Ashapuras multimodal logistics solutions (road-rail-road and road-coastal-road combinations) provides cost-effective and timely cargo movement.

• Export Handling: Containers are stuffed, sealed, and cleared for onward journey to ports, supported by customs coordination where required.

• Reverse Logistics: Dedicated processes for handling returns, repairs, and re-export requirements.

5. Safety, Technology & Compliance

• Safety First: Fire-fighting systems, CCTV surveillance, access controls, and trained EHS personnel.

• Digital Integration: Warehouse Management System (WMS) provides clients with real-time updates on stock and movements.

• Sustainability Measures: Energy-efficient operations, eco-friendly packaging solutions, and waste management practices.

• Compliance: Operations adhere to statutory and international safety standards, ensuring seamless audits and client confidence.

6. Performance & Client Benefits

• High Storage Utilization: Optimized G+5 stacking increases effective capacity by 3-4x.

• Reduced Supply Chain Cost: Multimodal logistics reduces overall transport cost by 10-15%.

• Accuracy & Speed: Order fulfillment accuracy of 99%+ with minimized cycle times.

• Customer-Centric Flexibility: Scalable space allocation, seasonal handling, and customized solutions per client requirement.

Ashapuras Warehousing division manages a wide range of cargo including FMCG, machinery, bagged cargo, chemicals, paper reels, and other paper products at its facilities located in Chennai, Bangalore, Mundra, and Nhava Sheva.

Recognizing the potential of the market and evolving customer needs, Ashapura is developing state-of-the-art warehouse facilities in Dodaballapura (Bangalore) and Mundra. These facilities will be equipped with advanced material-handling systems and modern equipment to ensure efficiency and reliability. In line with the Companys commitment to sustainability, solar panels will also be installed to reduce carbon footprint and create environment-friendly warehouses.

Ashapuras Mundra Logistics Park is scheduled to commence operations from October 2025, catering to clients based in Northern India. Several of these clients intend to utilize the facility as a consolidation hub for their EXIM cargo, further strengthening Ashapuras role as an integrated logistics solutions provider.

In addition, Ashapura also manages stockyard operations for select clients in Chennai. The services include maintaining inventory, carrying out Pre-Delivery Inspection (PDI) activities, and facilitating dispatch of vehicles to ports for export, ensuring efficiency and reliability in end-to-end logistics management.

Conclusion

Ashapuras warehouse operations are not limited to storage — they are an integrated logistics hub that adds value across the supply chain. With a combination of modern infrastructure, technology-enabled processes, multimodal transport integration, and client-focused services, we provide reliable and efficient solutions that support both domestic and export supply chains.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company maintains an efficient internal control system commensurate with the size, nature and complexity of its business. The internal control system is responsible for addressing the evolving risks in the business, reliability of financial information, timely reporting of operational and financial transactions, safeguarding of assets and stringent adherence to the applicable laws and regulations. The Audit Committee periodically reviews the audit reports and ensures correction of any variance, as may be required. Key observations are communicated to the management who undertakes prompt corrective actions.

HUMAN RESOURCES MANAGEMENT

At Ashapura Logistics Limited, employees are its prime assets and a vital key to its success. The company is committed to creating a professional culture to nurture and enable people to grow in their careers alongside Companys success. The Company aims to build an inclusive and empowering work environment, focused on enhancing employee experiences. The Companys philosophy for People, Process, Policies and Practices contributes towards building an agile and performance-oriented organization. The company constantly strives to strengthen its manpower in alignment with the business needs and continue to engage them through various initiatives in the realm of learning & development opportunities, reward & recognition, employee engagement activities and career growth.

FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFOMRMANCE

Financial performance of the Company for Financial Year 2024-2025 is summarized below:

Particulars	Standalone				Consolidated
	For the year ended 31-032025*		For the year ended 31-032024*		For the year ended 31-032025*		For the year ended 31-03- 2024*
Revenue from operations	17,554.54		14,509.47		23,096.64		19,900.91
Other Income	227.56		73.62		165.84		33.66
Total Income	17,782.11		14,583.09		23,262.49		19,934.57
Profit/ (Loss) before Exceptional & Extraordinary items & tax	949.72		957.75		1,665.56		1,662.48
Less: Exceptional items	-		-		-		-
Profit/ (Loss) before tax	949.72		957.75		1665.56		1662.48
Less: Tax Expenses
- Current Tax	144.37		258.37		320.47		458.58
- Deferred Tax	104.00		(5.86)		109.22		(31.54)
Income tax of earlier years
Net Profit/ (Loss) For The Year		701.35		705.24		1,235.87		1,235.44
EBITDA		1,833.22		1,568.44		2,781.24		2,678.35
EBIT		1,348.08		1,277.90		2,079.59		2,017.41

*Figures regrouped and rounded off wherever necessary. Amount in Lakhs.

OUR COMPETITIVE STRENGTH

1. Scaled and integrated logistics

We are an integrated logistics company in India, primarily operating in (i) Cargo handling and freight forwarding segment; (ii) Transportation (including project logistics, third party logistics (3PL) and freight forwarding); (iii) Warehousing and Distribution and (iv) other services (including coastal movement). We have pan India operations through our network of 9 (Nine) branch offices.

With over 20 years of our operational experience since inception, we provide tailored solutions to meet the unique requirements of customers across different industries (including auto mobile, west paper, textile and steel industry) and geographies (such as Gujarat, Maharashtra, Karnataka and Tamil Nadu). Through our integrated operations, we can leverage synergies across different segments of cargo handling, transportation and warehousing facilities.

2. Asset-based business model resulting into higher efficiencies

We rely on an asset-based business model wherein the assets necessary for quality services to our customers, such as commercial vehicles and containers, are either owned or provided by a network of our business partners on lease basis. Accordingly, we have maintained a limited base of owned fleet along with network of business partners from whom we hire the required vehicles. Further, our material subsidiary i.e., Jai Ambe Transmovers Private Limited is also engaged in the business of transportation services, having large fleet of owned commercial vehicles. As on March 31, 2025, we have maintained owned fleet of 250 of commercial trucks (Comprising 181 trucks of our material subsidiary i.e., Jai Ambe and 69 trucks owned by our company). Access to such large vehicle network enables us to scale our business as the demand increases and also cater to large business opportunities. Further, we also own 60 containers of 40 TEUs providing edge in our cargo handling business. Our warehouse distribution network comprises of 07 (Seven) warehouses across India situated at prompt locations on lease basis

Additionally, our technology-enabled asset-based business model facilitates the flexibility to develop and offer customized logistics solutions to a diverse set of customers and industries. We actively promote a technology first culture with a view to scale the business efficiently and enhance the customer experience. We have developed software (IMPEX) for ease of our operations, which trace and track entire operations of our cargo handling and transportation segment. Further, we are in process of development of another software, dedicated to our transportation segment. Our primary technological capabilities encompass demand generation, track and trace, fleet operations, pricing control, and vendor ecosystem enablement.

3. Optimal Utilization of Resources

Our company constantly endeavors to improve our execution process, capabilities, skill up gradation of employees, modernization of plant and machineries to optimize the utilization of resources. We regularly analyse our material procurement policy and project execution process to de-bottle neck the grey areas and take corrective measures for smooth and efficient working thereby putting resources to optimal use

4. Long-standing relationships with our clients

We believe that our reputation for completing particular assignment in a timely manner and our focus on quality has helped us build strong relationships with our clients. We have completed or are currently undertaking assignments for a number of reputed clients. We offer customized logistics solutions to a diverse set of customers and industries. Given the range of our service offerings, we are able to cater to diverse requirements of our customers. During Financial Year 2024-25, we catered to 560 customers spread across multiple industries, including Auto mobile, West Paper, Textile and Steel industry.

DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS

• Interest Coverage Ratio

The interest coverage ratio measures the ability of a company to pay the interest on its outstanding debt. This measurement is used by creditors, lenders, and investors to determine the risk of lending funds to a company. The companys Interest Coverage ratio is 4.18 % in FY 2023-24.

**Bank charges are not considered while at Interest and EBIT

• Current Ratio

The company is maintaining its Current Ratio at 1.96 which is intended to make sure it has enough resources to meet its short-term obligations.

• Debtors Turnover Ratio

Debtors Turnover Ratio measures how many times a business can turn its accounts receivable into cash during a period. The company is maintaining its Debtors Turnover Ratio at 2.3 5, indicating good liquidity.

• Operating Profit Margin (%)

The operating margin measures how much profit a company makes on an amount of sales after paying for variable costs of production, such as wages and raw materials, but before paying interest or tax. It is calculated by dividing a companys operating income by its net sales. The Company aims to maintain a stable Operating Margin Ratio; however, in FY 2024 Operating Profit Margin was 8.67%.

• Debt to Equity

The debt-to-equity (D/E) ratio is used to evaluate a companys financial leverage and is calculated by dividing a companys total liabilities by its shareholder equity. The FY 24-25 Debt- to Equity ratio of the company is 0.55.

• Net Profit Margin (%)

The Net profit margin is intended to be a measure overall success of a business. Net Profit of company for the year ended on 31st March 2025 is Rs. 701.35 Lakhs. However, the company is expecting to be on profitable terms in the upcoming financial year. In FY 2024-25, Net Profit Margin of the company was 4%.

RETURN ON NET WORTH

The Company witnessed a significant Return on Net Worth at 10.71%. The company expects to be on a good wicket in the coming Fiscal Years.

	For and on behalf of the Board of Directors
Date: 03/09/2025	ASHAPURA LOGISTICS LIMITED
Place: Ahmedabad	Sd/-	Sd/-
	Sujith Kurup	Chitra Sujith Kurup
	Chairman and Managing Director	Whole-time Director
	DIN:00133346	DIN:02578525