Global Economic Overview:
The global economy in 2024 unfolded broadly in line with early expectations, as major economies managed to avoid recession, and inflationary pressures showed signs of easing. However, as the year progressed, it became evident that inflation remained more persistent than initially anticipated, particularly outside the United
States, where growth was comparatively subdued. Currency depreciation across several economies toward the end of the year raised concerns for emerging markets due to its potential to disrupt trade and capital flows. As 2025 begins, global uncertainty is heightened by a wave of electoral transitions, which could reshape policy directions on inflation control, interest rates, and international trade dynamics. Policymakers now face the ongoing challenge of balancing inflation containment with the need to sustain economic momentum.
"According to the IMF, Global growth was now projected at 2.8% for 2025 and 3.0% for 2026."
Fears surrounding geopolitical and trade tensions materialised as 2024 progressed, with a fresh wave of tariff escalations that disrupted global trade flows and held commerce hostage to political decision-making. The re-emergence of protectionist sentiment, particularly following the near-universal imposition of US tariffs in April 2025, led to heightened policy ambiguity and triggered reactive trade measures across economies. In response to these developments, the World Trade Organisation (WTO) significantly adjusted its outlook. In its
April 2025 forecast, the WTO revised its estimate for global merchandise trade volume to -0.2% in 2025 as compared to its previous projection of 2.7%. The organisation cited increasing trade fragmentation, retaliatory tariff regimes, and rising production and compliance costs as key drivers of the revision.
Reflecting this shifting landscape, the International Monetary Fund (IMF) also made substantial changes to its growth projections between its January and April 2025 World Economic Outlook (WEO) reports. In January, the IMF maintained a relatively optimistic global growth forecast of 3.3% for both 2025 and 2026, assuming that trade policy uncertainty would be short-lived. However, by April, the IMF issued a sharp downgrade in its reference forecast, citing "extremely high levels of policy ambiguity." Global growth was now projected at 2.8% for 2025 and 3.0% for 2026, marking a 0.5 percentage point downgrade for 2025 and a 0.3 percentage point downgrade for 2026, respectively. This downward revision was broad-based, attributed to the direct effects of newly introduced tariffs, secondary spillovers across global supply chains, and deteriorating investor sentiment. Notably, the April forecast assumed that trade uncertainty would persist through 2026, a marked shift from the transitory outlook in January.
While recent weeks have witnessed some signs of de-escalation, with pauses, renegotiations, and partial withdrawals of specific tariff the global economic environment remains fragile. The risk of further policy volatility continues to weigh on investment decisions, production planning, and cross-border capital flows. As a result, the world economy enters FY202526, bracing for heightened uncertainty, with businesses and governments alike recalibrating their strategies in an increasingly complex and competitive global landscape.
Indian Economic Overview:
Amidst a backdrop of global economic uncertainty, the Indian economy demonstrated remarkable resilience in FY202425, anchored by strong macroeconomic fundamentals, proactive policy interventions, and sustained public sector capital expenditure. While real GDP growth moderated slightly to 6.5%, India retained its position as the fastest-growing major economy. On the demand side, economic activity was underpinned by a rebound in private consumption and a positive contribution from net exports. From the supply perspective, momentum in the services sector and a recovery in agricultural output played pivotal roles in sustaining overall growth. This broad-based recovery reinforced Indias position as a growth outlier, even as other major economies struggled with stagnant output and heightened trade frictions.
Looking ahead, the outlook for the Indian economy in FY202526 remains broadly optimistic, underpinned by a combination of resilient domestic demand, sustained government capital expenditure, and stable macroeconomic conditions. Key enablers include healthy corporate and banking sector balance sheets, improving financial conditions, and continued buoyancy in the services sector. This environment has bolstered both consumer and business confidence. However, the economy remains vulnerable to external headwinds, including lingering protectionist trade policies, geopolitical uncertainties, and financial market volatility - factors that could dampen growth and reignite inflationary pressures if conditions deteriorate.
The manufacturing sector is expected to gain momentum in the coming year, driven by rising domestic demand, higher capacity utilisation, and policy tailwinds. The governments ongoing Production-Linked Incentive (PLI) scheme, along with the launch of the National Manufacturing Mission in the Union Budget 2025 26, is poised to accelerate industrial expansion under the Make in India initiative. The construction sector is also likely to maintain its growth trajectory, supported by increased allocations under the Pradhan Mantri Awas Yojana (PMAY). Additionally, the rollout of the second Asset Monetisation Plan (20252030), targeting Rs10 lakh crore in value unlocking, is expected to energise infrastructure development and catalyse
"Indias logistics sector stands at the cusp of transformation driven by policy reforms, multimodal integration, and technology adoption, with green logistics emerging as the industrys defining frontier."
"Despite marginal IMF downgrades, India is projected to remain the worlds fastest-growing major economy through 2025 and 2026." job creation, thereby reinforcing the domestic growth engine. According to the RBIs estimates, Indias real GDP growth for FY202526 is projected to remain steady at 6.5%, with risks assessed as broadly balanced.
Although the IMF had initially projected Indias growth rate at 6.5% for both 2025 and 2026, it later revised the outlook downward by 0.03 percentage points for 2025 and 0.02 percentage points for 2026, bringing the estimates to 6.2% and 6.3%, respectively, citing elevated global uncertainty. Despite these marginal downward revisions, India is still expected to retain its position as the worlds fastest-growing major economy in the coming couple of years.
On the inflation front, recent trends offer greater confidence in price stability. Headline inflation fell below the 4.0% target in the last two months of FY202425, led by a sharp moderation in food prices. This positive trajectory supports the view of a durable convergence toward the medium-term inflation goal. In response, the Reserve Bank of Indias Monetary Policy Committee (MPC), in its May 2025 meeting, reduced the policy repo rate by 50 basis points to 5.5% and shifted its stance from accommodative to neutral. The RBI has also reiterated its commitment to maintaining adequate system liquidity, employing a calibrated mix of tools to manage both short-term and structural liquidity needs. This monetary policy pivot is expected to support growth while maintaining vigilance over evolving global macroeconomic dynamics.
Indian Logistics Industry Overview:
Indias logistics sector, currently valued at approximately USD 317 billion, is poised for significant transformation and growth. Despite its large size, the industry has long struggled with structural inefficiencies, characterised by fragmentation, underdeveloped infrastructure, high indirect costs, and a dependence on road freight. Logistics costs in India are estimated to be 1314% of the countrys GDP, considerably higher than the global benchmark of 8%. This inefficiency not only hampers competitiveness but also puts pressure on supply chains and the broader economy. The sector is projected to grow to USD 484.43 billion by 2029, reflecting an annual growth rate of 8.8%.
However, the sector is now undergoing a strategic shift. The Government of India has made logistics a national development priority, aiming to reduce costs to 8% of GDP and positioning India among the top 25 in the World Banks Logistics Performance Index. The National Logistics Policy (NLP), coupled with initiatives such as Gati Shakti, PM Gati Shakti National Master Plan, and production-linked incentive (PLI) schemes, is driving a more integrated, technology-enabled, and multimodal logistics ecosystem.
The modal mix is gradually improving with an increased policy push for rail and coastal shipping to reduce dependence on road transport. Currently, road accounts for 65% of freight movement, but multimodal logistics is emerging as a core priority, with dedicated freight corridors and inland waterways receiving increased investment.
Warehousing and cold chain infrastructure are also witnessing rapid expansion, driven by the e-commerce, pharmaceutical, and food sectors.
Grade A warehousing stock is expected to grow at a 12 15% CAGR, with automation and data-driven supply chain operations becoming mainstream.
Technology adoption is accelerating across supply chains. Companies are investing in Internet of Things (IoT) devices, control towers, warehouse management systems, and predictive analytics to enhance visibility, reduce costs, and improve customer satisfaction. Meanwhile, green logistics - through the adoption of electric vehicles (EVs), liquefied natural gas (LNG)- powered fleets, and energy-efficient infrastructure - is gaining momentum as sustainability becomes a key differentiator.
Company Overview:
About AVG Logistics:
AVG Logistics Limited, founded in 2010, has emerged as a leading provider of multimodal logistics services in India.
Headquartered in Delhi, the Company offers a comprehensive suite of logistics solutions encompassing transportation, warehousing, and value-added services, catering to a diverse clientele across various sectors, including FMCG, automotive, pharmaceuticals, telecom, and heavy engineering.
AVG Logistics operates a robust pan-India distribution network, leveraging over 70 fully computerised branches and a fleet of more than 3,000+ vehicles, including over 700 owned vehicles. The
Companys warehousing infrastructure spans approximately 8,56,369 square feet, featuring advanced facilities equipped with Warehouse Management
Systems (WMS) to ensure optimal inventory management and storage.
The Companys service portfolio includes Full Truckload (FTL), less-than-truckload (LTL), express delivery, multimodal transportation, rail services, and freight forwarding. Additionally, AVG Logistics offers specialised services such as temperature-controlled logistics, customs clearance, and end-to-end supply chain solutions.
AVG Logistics is committed to innovation and sustainability, integrating technology-driven solutions like GPS-enabled trucks, data loggers for temperature control in reefers, and driver and truck management systems to enhance service efficiency and reliability. The Companys dedication to excellence has earned it recognition from industry leaders for its unwavering support and exceptional business partnerships.
With a mission to deliver high-quality services at competitive costs, AVG Logistics continues to invest in expanding its capabilities, aiming to be the preferred logistics partner for businesses seeking reliable and customised supply chain solutions.
Mission and Vision
Mission
To build strategic partnerships with customers to enable them to achieve their supply chain goals.
To offer an integrated Multimodal network of Logistics solutions across varied industries.
Vision
We aim to be a part of Indias success story by being the most reliable and sustainable logistics partner to Indias top businesses.
Multimodal Transportation
AVG Logistics is strategically advancing its multimodal transportation capabilities, reinforcing its position as a full-spectrum logistics solutions provider. The Companys services integrate road and rail transport, offering seamless, cost-efficient, and environmentally sustainable logistics solutions across India.
In FY25, the multimodal segment continued to gain momentum, supported by enhanced infrastructure, technology integration, and expanding client requirements. AVG now operates pan-India, efficiently connecting production and consumption centres with improved turnaround times and better freight economics. By integrating rail logistics into its services, the Company has been able to provide clients with a reliable alternative, especially as road congestion and regulatory constraints continue to grow.
The Companys rail operations utilise 6+ routes to expand coverage and enhance delivery
AVGs road logistics offering includes:
Full Truckload (FTL) Services: Our fleet of over 700 owned trucks and
2,300 trucks on a market hire basis is equipped to handle large shipments, minimising handling and transit times. This service caters to businesses with high-volume shipping needs, providing direct routes and timely deliveries.
Less Than Truckload (LTL) Services: For smaller shipments, our LTL services enable multiple customers to share transportation costs, ensuring cost-effective and efficient movement of goods.
Dedicated Routes for Pan-India Distribution: AVG provides dedicated transportation routes across India, ensuring consistent and reliable delivery schedules, with a network that reaches even remote and rural areas.
In addition to road logistics, AVGs investment in rail-linked logistics solutions enhances the value proposition, particularly for large-volume industries like FMCG, cement, steel, and industrial goods. Through strategic partnerships, the Company ensures consistent service quality and optimised delivery timelines across rail routes.
As multimodal logistics gain traction in policy and the market in India, AVG Logistics is well-positioned to capitalise on this shift, with ongoing plans to expand its multimodal footprint and contribute meaningfully to the nations sustainable logistics goals.
Cold Chain Logistics
AVG Logistics has established itself as a trusted partner in temperature-controlled logistics, offering end-to-end cold chain solutions to sectors such as FMCG, pharmaceuticals, dairy, and perishables.
Leveraging a modern fleet of refrigerated trucks equipped with GPS tracking and real-time temperature monitoring systems, the Company ensures the integrity of goods across long-distance routes.
Its cold chain operations are designed to comply with stringent industry standards, maintaining optimal conditions throughout the transit cycle. AVGs infrastructure is further supported by well-trained personnel, standard operating procedures (SOP)-driven handling processes, and contingency systems that ensure uninterrupted cold supply chains, even under challenging climatic or operational conditions.
While currently forming a niche segment within the broader logistics portfolio, cold chain logistics continues to gain relevance amid rising demand for health-sensitive and high-value goods. With Indias evolving food and pharma supply chains, AVG Logistics is steadily expanding its capacity and coverage in this segment, aligning with its long-term strategy of delivering specialised, high-reliability logistics solutions across industries.
We offer:
Advanced Temperature-Controlled Vehicles: Our fleet includes over 400 premium reefer vehicles capable of maintaining temperatures ranging from
-25?C to +25?C. This ensures the integrity and freshness of perishable goods throughout the supply chain.
Industry-Specific Solutions: We cater to various sectors, including food processing, dairy, quick-service restaurants (QSR), ice cream, and pharmaceuticals. Our services ensure optimal preservation and timely delivery of temperature-sensitive products.
First Mile to Last Mile Delivery: Our comprehensive end-to-end cold chain services encompass the entire logistics journey from origin to destination. This comprehensive approach ensures that perishable goods are handled carefully at every stage, maintaining their quality and safety.
Warehousing
AVG Logistics operates a robust warehousing network strategically located across key industrial and consumption hubs in India. With ~8.56 million square feet of warehousing space under management, the Company provides both dedicated and shared-user facilities, catering to clients across the FMCG, automotive, pharmaceutical, and consumer durables sectors.
Its warehouses are equipped with Warehouse Management Systems (WMS), enabling end-to-end inventory visibility, real-time tracking, and data-driven optimisation of storage and dispatch operations. AVG offers value-added services, including sorting, kitting, labelling, secondary packaging, and inventory reconciliation, which help clients reduce costs and improve fulfilment timelines.
In FY25, the Company continued to invest in warehouse automation and expansion, aligning with the growing demand for third-party logistics (3PL) and integrated logistics solutions. AVGs warehousing strategy focuses on regional consolidation, reducing last-mile delivery time and supporting clients pan-India distribution goals.
The warehousing vertical remains integral to AVGs multimodal and cold chain offerings, enhancing its capability to deliver customised, scalable, and technology-driven supply chain solutions.
We offer:
State-of-the-Art Facilities: We manage approximately 8,56,369 square feet of warehousing space across India. Our facilities are equipped with advanced technology and security systems to ensure the safe storage of goods.
Flexible Storage Options: We offer short-term, medium-term, and long-term storage solutions tailored to meet the diverse needs of our clients. Our warehousing services include inventory management, order fulfilment, and cross docking.
Optimised Supply Chain Management: Our skilled experts leverage advanced warehousing technology to streamline operations, enhance productivity, and improve inventory accuracy. This ensures that goods are stored and retrieved efficiently, reducing lead times and operational costs.
Value-Added Services
Complementing its core logistics offerings,
AVG Logistics provides a range of value-added services (VAS) designed to enhance supply chain efficiency and customisation for its clients. By integrating these services within its warehousing and transportation operations, AVG enables clients to reduce lead times, lower distribution costs, and streamline inventory handling. The Company also supports custom clearance, last-mile delivery coordination, and temperature compliance documentation for cold chain clients, further strengthening its position as an end-to-end logistics partner.
AVGs technology backbone, including Warehouse Management Systems
(WMS) and fleet tracking solutions, provides clients with real-time access to inventory and shipment data, ensuring visibility and control throughout the logistics lifecycle. As demand for customised, responsive logistics solutions increases, AVGs value-added services are expected to play a pivotal role in supporting its integrated 3PL positioning and driving incremental revenue growth.
In addition to our core transportation and warehousing solutions, AVG
Logistics offers a range of value-added services to support your business needs:
Co-Packing: We provide co-packing services that include packaging, labelling, and assembly. This helps businesses streamline their operations and reduce handling costs.
E-Commerce Solutions: Our logistics solutions are tailored to the needs of e-commerce businesses, offering efficient order fulfilment, inventory management, and last-mile delivery services. We ensure that your customers receive their orders promptly and in perfect condition.
Reverse Logistics: We efficiently manage the return process, handling product returns, recycling, and disposal. Our reverse logistics solutions help businesses minimise waste and recover value from returned goods.
Strategic Partnerships and Expansions
AVG Logistics has pursued a focused strategy of expanding its operational footprint and deepening its client engagement through strategic partnerships and inorganic growth. In FY2024 25, the Company secured multiple high-value contracts from industry leaders in the steel, cement,
FMCG, and chemical sectors. These wins underscore AVGs growing stature as a reliable logistics partner capable of delivering integrated, multimodal, and temperature-controlled solutions tailored to diverse supply chain needs.
During FY202425, AVG Logistics secured new orders across diverse sectors, including cement, steel, FMCG, and chemicals, highlighting the Companys robust client engagement and its growing reputation for delivering integrated logistics solutions. In a notable strategic development, the Company was allotted land by the Odisha Industrial Infrastructure Development Corporation (IDCO) for the establishment of a dedicated logistics hub in the region. This initiative will significantly strengthen AVGs warehousing and distribution footprint in eastern India, supporting its long-term multimodal expansion strategy.
A significant milestone during the year was the acquisition of Kaizen Logistics. This Ludhiana-based partnership firm has established itself as a trusted logistics partner, offering a comprehensive range of services that include road transportation, multimodal transportation, and warehousing. Serving marquee and reputed clients across various industries, Kaizens strong operational capabilities further strengthen AVGs logistics network. This acquisition creates valuable operational synergies, enabling both companies to leverage each others strengths in the competitive logistics market, enhancing AVGs ability to deliver more integrated and efficient logistics solutions.
new fleet vehicles expanded capacity and reach in FY2025.
In parallel, AVG continued to expand its fleet and strengthen its operational flexibility through investments in asset-light models. During the financial year ended 31st March 2025, the Company added 172 new fleet vehicles, significantly enhancing its transportation capacity. A notable development was the launch of a 20-foot electric truck, introduced in collaboration with a key client to further its commitment to sustainable and environmentally friendly logistics. Additionally, AVGs partnerships with Indian Railways have enabled seamless multimodal connectivity across Indias key trade corridors. These efforts, alongside targeted acquisitions, are strategically focused on building scale, expanding regional reach, and deepening service integration to support the Companys long-term growth trajectory.
Together, these strategic moves align with AVGs long-term vision of evolving into a fully integrated, multimodal 3PL provider, well-positioned to support Indias fast-evolving logistics landscape with reliable, technology-enabled, and scalable solutions. Looking ahead, the Company anticipates sustaining double-digit year-over-year growth, anchored by the continued expansion of existing verticals, including multimodal transportation, cold chain, warehousing, and express services. Additionally, the planned entry into Liquid Logistics presents new opportunities to diversify revenue streams and enhance customer engagement. This balanced approach of strengthening core operations while selectively adding new verticals provides the foundation for consistent, profitable, and sustainable growth in the years to come.
Financial Performance
In FY25, AVG Logistics continued to demonstrate robust financial performance. The Companys revenue and profitability have shown steady growth, reflecting our commitment to operational excellence and customer satisfaction.
(Rs in Lakh except as stated)
Particulars |
FY2025 | FY2024 | Y-o-Y Change |
Revenue from Operations | 55,152 | 47,989 | 14.93% |
EBITDA | 9,557 | 8,374 | 14.13% |
EBITDA Margin (%) | 17.33% | 17.45% | -12 bps |
Profit Before Tax | 2,633 | 1,725 | 52.64% |
PBT Margin (%) | 4.77% | 3.59% | 118 bps |
Profit After Tax | 2,133 | 3,192 | -33.18% |
PAT Margin (%) | 3.87% | 6.65% | -278 bps |
Earnings Per Share (Rs) | 15.01 | 26.66 | -43.70% |
Debt Equity Ratio (times) | 0.44 | 0.44 | - |
Current Ratio (times) | 1.73 | 1.72 | - |
Revenue from Operations increased by 14.93%, reaching Rs55,152 Lakh in FY2025, compared to Rs47,989 Lakh in FY2024. This robust growth reflects the Companys strategic expansion into multimodal logistics, warehousing, and cold chain transportation, supported by new client acquisitions and a growing geographic footprint.
Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) rose by 14.13% to Rs9,557 Lakh, up from Rs8,374 Lakh in the previous fiscal year. This performance underscores the operational effectiveness achieved through enhanced asset utilisation, technology integration, and disciplined cost management.
The EBITDA Margin stood at 17.33%, compared to 17.45% in FY2024, witnessing a marginal decline of 12 basis points. This slight contraction was primarily attributable to shifts in the business mix and upfront investments in capacity expansion and technology, which are expected to yield benefits over the medium term.
Profit Before Tax (PBT) witnessed a remarkable growth of 52.64%, reaching
Rs2,633 Lakh in FY2025 compared to Rs1,725 Lakh in FY2024. The PBT Margin improved to 4.77% from 3.59% in the previous year, representing an expansion of 118 basis points. This growth reflects the Companys focus on cost efficiency, improved realisation from clients, and scale benefits across its service verticals. It is important to note that the FY2024 PBT included a one-time exceptional income of Rs21.25 crore arising from the sale of investments in Q4 FY2024. Excluding this exceptional gain, the year-on-year comparison highlights the Companys strong underlying operational performance in FY2025.
In contrast, Profit After Tax (PAT) for FY2025 stood atRs2,133 Lakh, compared to Rs3,192 Lakh in FY2024, reflecting a 33.18% decline. The PAT Margin consequently moderated to 3.87% from 6.65% in the previous year, a contraction of 278 basis points. The apparent deterioration is explained entirely by the one-time income impact in FY2024, where PAT was elevated by Rs18.82 crore from the same investment sale. When normalised for this exceptional gain, the FY2025 PAT demonstrates healthy profitability, supported by revenue growth of 14.93%, margin expansion at the operating level, and disciplined financial management
The Debt-to-Equity Ratio remained stable at 0.44 times, indicating a balanced capital structure and prudent leverage management.
Simultaneously, the Current Ratio improved slightly to 1.73 times, compared to 1.72 in FY2024, reflecting a healthy liquidity position and adequate buffer to meet short-term obligations.
Overall, AVG Logistics demonstrated resilient financial performance in
FY2025, supported by strategic execution, margin discipline, and a focus on sustainable growth.
Future Outlook
AVG Logistics Limited is poised for sustained growth in FY2026, targeting double-digit annual revenue expansion through a blend of organic growth, sector diversification, and strategic acquisitions. The Company anticipates meaningful contributions from existing clients, incremental gains from new high-growth sectors such as cement and pharmaceuticals, and further upside from merger and acquisition activities.
A central focus area is multimodal logistics, with six railway routes now operational and plans underway to expand further. Green logistics remains a strategic priority, with over 100 electric vehicles (EVs) and liquefied natural gas (LNG) vehicles scheduled for deployment by March 2025, and an additional 100 cars planned for the following year.
Rs551.5 crore
revenue achieved in FY2025, crossing the Rs500 crore milestone.
On the M&A front, the acquisition of Kaizen Logistics is nearing completion.
The Company will continue to evaluate relevant opportunities that strengthen its capabilities and support its growth objectives. At the same time, it is adopting an asset-light approach for fleet expansion, ensuring scalability and financial prudence as it captures emerging opportunities in the logistics sector.
Backed by a disciplined management team and strategic clarity, AVG is focused on execution, sustainability, and delivering consistent shareholder value.
Strengths
Customer Relationships and Long-Term Associations: Strong and enduring partnerships with marquee clients across FMCG, pharmaceuticals, automotive, retail, and other industries underline AVGs ability to deliver reliable, cost-efficient, and customised logistics solutions. These long-standing associations reflect trust, consistency, and the Companys ability to adapt to evolving client needs.
Pan-India Reach and Multimodal Capabilities: With over 70+ fully computerised branches and a fleet of 3,700+ vehicles (including 700+ owned and 3,000+ on market hire), AVG is equipped to deliver integrated multimodal logistics services. The
Companys presence spans road, rail, cold chain, and warehousing, enabling comprehensive coverage and scalability across Indias supply chain network.
Alignment with National Priorities:
AVGs operational model is closely aligned with the Governments focus on rail-led logistics, sustainability, and cost optimisation in freight movement. The strategic emphasis on multimodal transportation,
EV/LNG fleet additions, and energy-efficient warehouses reflects this alignment, positioning the Company as a key partner in advancing the national logistics agenda.
Technology-Led Operations: Deployment of Business Intelligence tools, IoT devices, and integrated digital platforms including CRM, driver apps, and fleet management systems enhances transparency, operational efficiency, and customer
Sustainability and Green Logistics: Investment in green logistics remains a strategic focus. With over 100 LNG and EV vehicles deployed and more additions planned, AVG is scaling cleaner, more sustainable freight solutions, supporting both its ESG commitments and the sustainability goals of its clients.
Weaknesses
High Dependence on FMCG: A significant share of revenue continues to come from FMCG clients. While this segment has historically been stable, the Company is actively diversifying into steel, cement, and other heavy industries to balance revenue streams and reduce sectoral concentration risks.
Competitive FTL Business: The Full Truckload (FTL) segment, although a core part of the portfolio, remains highly competitive in India, exerting pricing pressures and limiting margin expansion. This requires continuous differentiation through service quality, multimodal integration, and the adoption of technology.
Lower Margins in Heavy Segments: Logistics for steel and cement industries offers quicker payment cycles but typically delivers thinner margins compared to other service lines. This requires scale and efficiency to optimise profitability.
Working Capital Intensity: Extended credit cycles in specific verticals, coupled with asset-heavy requirements in certain segments, result in elevated working capital needs, making stringent cash-flow management a necessity.
Opportunities
Logistics Sector Growth in India: With the sector projected to grow to $484 billion by 2029, driven by the National Logistics Policy, infrastructure investment, and formalisation, AVG is well-positioned to capitalise.
Expansion in Steel, Cement, and Liquid Logistics: Entry into new sectors with long-term contracts and a focus on Liquid Logistics is expected to unlock new growth avenues.
Surge in Cold Chain Demand: Indias cold chain logistics sector is experiencing robust expansion, propelled by rising demand for perishable goods, pharmaceutical products, and processed foods.
Rapid Expansion in Warehousing Needs: Indias warehousing infrastructure is expanding rapidly with rising demand from e-commerce, organised retail, and manufacturing. This presents AVG with opportunities to scale warehousing assets, adopt automation, and reinforce its position as a reliable end-to-end logistics partner.
Technology Integration: Continued digitisation, data analytics, and AI-driven planning can further streamline operations and enhance client value.
Threats
Fuel Price Volatility and Regulatory Costs: Rising fuel prices, toll charges, and regulatory levies can compress road transport margins.
Geopolitical and Trade Policy Risks:
Global protectionism, supply chain disruptions, or geopolitical tensions can affect import-export-linked freight volumes.
Competitive Intensity: The entry of well-capitalised players and consolidation among incumbents in the express, warehousing, and multimodal segments could pressure pricing and market share.
Risk and Mitigation
Risk management is crucial to our operations at AVG Logistics. Our framework integrates comprehensive risk assessment and mitigation strategies to navigate a diverse range of market risks. Below are the key risks we encounter and our approach to mitigating them.
"At AVG Logistics, risk management is integral to growth from fuel volatility to people risks, we anticipate challenges, design mitigation frameworks, and safeguard operational resilience."
Transitional Damage Risk
Cargo is susceptible to damage and loss due to transit hazards, such as accidents and theft. To counter these risks, AVG Logistics insures every vehicle in our fleet against damage or loss during transit. We utilise advanced surveillance and tracking systems to monitor shipments in real time and train drivers on safety protocols, thereby reducing the likelihood of damage and loss.
Fluctuating Fuel Price Risk
Volatility in global fuel prices can disrupt logistics operations. AVG Logistics has developed a fuel surcharge system to offset increases in fuel costs and maintain profit margins. Freight rates are revised frequently, and contractual transportation arrangements reduce the direct impact of fuel price fluctuations, ensuring stable pricing for the Company and its clients.
People Risk
Staffing shortages and the loss of key employees can disrupt operations. AVG Logistics implements staff retention strategies, including health insurance policies and recognition programs. We maintain a competitive compensation structure and a positive work environment to attract and retain top talent.
Technology and IT Risk
Data breaches and network instability pose significant risks to organisations.
AVG Logistics has implemented advanced technology and information security policies to protect customer data. We maintain regular backups and have contingency plans in place to ensure business continuity in the event of technological outages.
Infrastructure Risk
Inadequate transportation infrastructure can impact logistics operations. AVG Logistics aligns its infrastructure strategy with national development programs and has constructed state-of-the-art warehouses nationwide to ensure efficient and secure cargo handling.
Competition Risk
The logistics industry is highly competitive. AVG Logistics leverages its experience and robust brand image to maintain a strong market position. Our extensive network and consistent delivery services reinforce our reputation for reliability and efficiency.
Environmental and Regulatory Risk
Environmental regulations can pose challenges. AVG Logistics is committed to sustainable practices and complies with all relevant laws. Our initiatives include developing eco-friendly vehicles and conducting regular audits to ensure regulatory adherence, thereby minimising legal and financial risks.
Sustainability and Social Responsibility:
At AVG Logistics, sustainability is not an adjunct but an essential pillar of our long-term strategy. We are committed to advancing environmentally responsible logistics by integrating sustainable practices into our operations, fleet expansion, and infrastructure development.
During FY2024 25, we made significant strides towards green logistics. We introduced Indias first 20-foot electric truck in collaboration with a key client, marking a milestone in our journey towards carbon-neutral transportation. We also expanded our fleet of alternative fuel vehicles, including electric vehicles (EVs) and liquefied natural gas (LNG) trucks, with the intention of deploying over 100 such vehicles in the next couple of years.
These vehicles not only reduce greenhouse gas emissions but also offer better operating efficiency and cost-effectiveness.
Our warehousing operations are evolving to reflect energy-conscious practices. New facilities are being designed with provisions for LED lighting and energy-efficient insulation, aligning with global best practices in sustainable infrastructure.
On the social responsibility front, we remain committed to promoting inclusive growth and development. AVG continues to prioritise the well-being of its workforce by ensuring safe working environments, upskilling initiatives, and welfare measures. We also support regional employment by setting up operations in underserved regions, thereby contributing to local economic development.
At AVG Logistics, sustainability is not an adjunct but an essential pillar of our long-term strategy.
Technology
At AVG Logistics, technology is at the and coreofbuilding resilient,efficient, future-ready logistics ecosystem. Our comprehensive suite of digital initiatives is designed to enhance operational visibility, elevate service quality, and ensure a superior stakeholder experience across the value chain.
Operational Intelligence & Warehousing Excellence
Real-time digital control systems underpin our warehousing and transport operations. We have deployed a comprehensive system to monitor fleet health and reduce downtimes. Workman Management and Record Management Systems ensure compliance, workforce optimisation, and process integrity. Geo-fencing and e-invoicing add layers of control, transparency, and automation to fleet movements and billing.
Digital Transformation & Data-Driven Decision Making
We continue to modernise our business backbone through process automation, data analytics, and advanced business intelligence tools. From online vehicle data markets to green driving indicators, our platforms enable more intelligent routing, improved fuel efficiency, and more environmentally conscious driving practices. These systems help us identify trends, reduce inefficiencies, and respond proactively to dynamic supply chain requirements.
IoT-Driven Operational Precision
We have adopted Internet of Things (IoT) technologies such as GPS and GIS for precise tracking, RFID and barcode scanners for inventory accuracy, and temperature sensors in reefer trucks to ensure cold chain integrity. CCTV-enabled warehouses further enhance our control over goods movement and security.
Centralised Control & Command
Our logistics control tower integrates a fleet management system, security operations centre, and real-time vehicle tracking into one seamless platform. This central monitoring system provides 24/7 visibility, exception management, and rapid incident resolution, which is crucial for time-sensitive logistics services.
Scalable Tech Infrastructure & Skilled Team
A dedicated technology team ensures the consistent rollout of projects through structured project management systems. We have also invested in repository systems and infrastructure to support scalability, security, and integration across our network.
Enhanced Engagement with Customers and Suppliers
Weve digitised the entire engagement journey through dedicated Customer and Driver Apps, a comprehensive CRM platform, and Supplier Relationship
Management systems. These tools improve transparency, coordination, and turnaround times, strengthening relationships and operational efficiency.
Human Resources:
At AVG Logistics, our human resources are the cornerstone of our success. We recognise that a skilled, motivated, and dedicated workforce is essential to delivering superior logistics solutions. With over XXX professionals, our team comprises experts in transportation, warehousing, supply chain management, and customer service, working collaboratively to ensure the highest standards of efficiency and reliability.
Talent Acquisition and Retention: We prioritise attracting and retaining top talent through competitive compensation packages, comprehensive health insurance policies, and regular recognition programs. Our innovative staff retention strategies foster a positive work environment, ensuring employees feel valued and motivated. By offering a blend of experience and enthusiasm, we create a dynamic workforce that drives our Company forward.
Training and Development: Continuous professional development is essential in the rapidly evolving logistics industry. AVG Logistics invests significantly in training programs that enhance our employees skills and knowledge. From safety protocols for drivers to advanced technology training for our IT staff, we ensure that our team is well-equipped to handle the challenges of modern logistics operations. Regular training sessions and workshops help our employees stay updated with industry trends and best practices.
Employee Engagement and Well-being: We believe in fostering a supportive and engaging workplace culture. Regular team-building activities, wellness programs, and open communication channels ensure that our employees are productive and enjoy a balanced and healthy work life. Our commitment to employee well-being is reflected in our provision of a safe and healthy working environment, as evidenced by our low turnover rates and high employee satisfaction levels.
Diversity and Inclusion: AVG Logistics is committed to creating a diverse and inclusive workplace. We value every team members unique perspective and contribution, regardless of their background or experience. Our diversity initiatives promote a culture of respect and collaboration, which enhances innovation and drives our business success.
Performance Management: Effective performance management is vital to our HR strategy. We conduct regular performance reviews and provide feedback mechanisms to help employees set and achieve their career objectives. Our merit-based appraisal system ensures that hard work and dedication are recognised and rewarded, fostering a culture of excellence and continuous improvement.
Cautionary Statement
The statements in the Management Discussion and Analysis that describe the Companys objectives, projections, estimates, and expectations are "forward-looking" as defined by applicable securities laws and regulations. These projections are not guarantees of future performance and are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those contemplated by the forward-looking statements. Key factors that could influence the Companys operational results include varying economic conditions that impact demand, supply, and prices in domestic and international markets where the Company operates, changes in government regulations, tax laws, and other statutory modifications, as well as other incidental factors.
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