<dhhead>MANAGEMENT DISCUSSION AND ANALYSIS </dhhead>
INDUSTRY OVERVIEW:
The Indian Railways registered a marginal increase of 1.68% in originating loading of cargo, from 1,590.63 million tons in 2023-24 to 1,617.38 million tons in 2024-25. While, originating containerized cargo transported by rail has increased from 85.04 million tons in 2023-24 to 88.73 million tons in 2024-25 reflecting an increase of 4.34%. The containers handled at all ports of the country registered a growth of 10.57% from 21.06 million TEUs in 2023-24 to 23.29 million TEUs in 2024-25. Jawaharlal Nehru Port registered a growth of 13.56% from 6.43 million TEUs to 7.30 million TEUs; Mundra Port registered a growth of 13.34% from 7.31 million TEUs to 8.28 million TEUs; Haldia Port registered growth of 66.67%; Chennai Port registered a growth of 14.34%; Katupalli port registered a growth of 22.46%; V.O. Chidambaranar Port has registered a growth of 6.43% and Kamrajar Port registered a growth of 1.49% in container handling in 2024-25 as compared to 2023-24. In value terms, total merchandise exports of the country have marginally increased by 0.08% from 437.07 billion dollars in 2023-24 to 437.42 billion dollars in 2024-25. Imports of the country have also registered a positive growth by 6.20% from 678.21 billion dollars in 2023-24 to 720.24 billion dollars in 2024-25. CONCOR experienced a rise in export of commodities, such as Auto Parts, Furniture, Readymade Garments, Food Item, Paper/Paper Products, Stone, Red Chillies, Tyres, Gaur Gum Powder, Gherkins, etc., while import of commodities, such as Auto Parts, Wood Pulp, Raw Cotton, Float Glass, Para Aminophenol, Furniture etc. have also increased.
In the above-mentioned external business environment, your company carried 49.62 million tons of containerized cargo by rail during FY 2024-25 as compared to 49.11 million tons carried in 2023-24, i.e. an increase of 1.04%. Your Company achieved highest ever throughput of 5.09 million TEUs in FY 2024-25 as against 4.72 million TEUs in FY 2023-24 i.e. growth of 7.94%.
EXIM & DOMESTIC BUSINESS:
During FY 2024-25, the EXIM container traffic handled at all Indian ports increased by 10.57% as compared to FY 2023-24. In EXIM segment your company handled ever highest 3.90 million TEUs in 2024-25 as against 3.65 million TEUs in 2023-24. In terms of tonnage, the marginal increase in EXIM originating loading was 0.19% from 35.31 million tons in 2023-24 to 35.37 million tons in 2024-25. During the same period, EXIM containerized loading of Indian Railways marginally declined by 0.59% from 64.41 million tons in 2023-24 to 64.03 million tons in 2024-25.
The total traffic handled in domestic segment was 1.20 million TEUs in 2024-25 as against 1.07 million TEUs in 2023-24 i.e. an increase of 11.90%. In terms of tonnage, there was increase in domestic originating loading by 3.22% from 13.80 million tons in 2023-24 to 14.24 million tons in 2024-25. During the same period, domestic containerized loading of Railways increased by 19.67% from 20.64 million tons in 2023-24 to 24.70 million tons in 2024-25.
CONCOR BUSINESS OVERVIEW
Performance
During the year under review, CONCOR achieved a overall increase in revenue and profitability. The total revenue grew by 3.53% to 9,329 crores, driven by a surge in container handling and transportation volumes. The net profit increased by 3.35% to 1,272 crores, reflecting our focus on operational efficiency and cost optimization.
With consistent good service to Trade despite increase in Tariffs, CONCOR was able to register the highest-ever Throughput of 5.10 Million TEUs in 2024-25, which was a growth of 7.94% over the previous year. The Company continued to expand its footprint through capital expenditure of approximately 810.26 crores.
The Western DFC is likely to be fully commissioned by October 2025. However, we have been leveraging the Western DFC that has been commissioned to run Time-Tabled Double Stack Trains from our Multi Modal Logistics Park (MMLP) at Dadri to Mundra Port, which helped us to shift Cargo that was earlier moving by Road to Rail. CONCOR has also established Rail connectivity for the Gati Shakti Multi-Modal Cargo Terminal (GCT) at Varnama with the Western Dedicated Freight Corridor (WDFC) at New Makarpura Yard.
CONCOR is operating 45 Lakh Sq.ft. of Warehouse space at its various Terminals across the country and is planning to develop modern Warehousing infrastructure to meet the growing demand for storage & distribution space of various industries including e-commerce, FMCG, etc.
CONCOR is having a strong holding of total 387 Rakes (BLC/BLCM/BLL/BLCS/BFKHN/BLSS), which are plying on major EXIM and Domestic routes.
The procurement of Tank Container process is underway to support the Cement Manufacturing companies for the movement of Bulk Cement from their plants to destinations across India. In this direction, the process of entering into long-term arrangement with Cement Manufacturing companies to offer a new product in the market on a win-win basis is being followed.
The Board of CONCOR had approved the Plan to buy 200 Liquified Natural Gas (LNG) Trucks which will strengthen its Green Logistics Solutions as part of the First Mile Last Mile offerings to Customers. At present the LNG trucks of 130 numbers procured by the Company are being used in providing services to the customers.
FINANCIAL PERFORMANCE:
The Revenue from operations increased from Rs.8,632.49 crores in FY 2023-24 to Rs.8,863.37 crores in FY 2024-25 i.e. a growth rate of 2.67%
Your Company continued to place great emphasis on providing total logistics solutions to its customers by expanding its sphere of business in all segments of transport value chain, both in EXIM and Domestic sector. Special emphasis was also given on providing First-Mile Last-Mile (FMLM) logistic solutions to the trade through optimal utilization of infrastructure. Towards its commitment on Environmental, Social and Governance (ESG), CONCOR has introduced green logistics initiatives by deployment of LNG trucks for facilitating eco-friendly logistics operations besides initiatives taken on development of solar-based infrastructure at its various terminals. Keeping in pace with the dynamics of the logistics industry, your company has also adopted various technological advances in logistics, such as digital solutions in operations, launch of logistics apps, adoption of ice-battery technology in cold chain logistics, pilot project on AI-based transportation management contributing towards enhanced productivity, customer-centric services, and logistics efficiency.
INTERNAL CONTROL SYSTEMS:
CONCOR has robust Internal Control Systems and processes in place for smooth and efficient conduct of business and it complies with relevant laws and regulations. It has well well-documented system of internal financial controls in place, in the form of delegation of powers, policies and procedures that cover critical as well as important activities of financial and other operating functions. The procedures are in the form of manuals, guidelines, delegation of powers and IT system and controls which are effective through people operating in various departments within the Company at different levels at each stage of the process. These are designed to put in place robust practices for Internal Financial Controls and to ensure compliance as detailed in the Companies Act, 2013. CONCOR uses a state-of-the-art Enterprise Resource Planning (ERP) system that connects all parts of the organization, to record data for accounting, consolidation and management information purposes. The organization continuously assess the effectiveness of its internal controls through extensive internal audits, which are being conducted on regular basis by experienced independent firms of Chartered Accountants in close co-ordination with
Company’s own internal audit Department. Internal audit constitutes an important element in overall internal control systems of the Company. The internal audits are conducted as per the detailed well documented audit program which has been duly approved by Audit & Ethics Committee.
CONCOR’s Internal Control Systems are commensurate with its size, scale & complexity and nature of its business activities. A well-defined internal control framework has been developed identifying key controls and independent external auditors verifies the adequacy and effectiveness of the internal financial control system through regular periodic audit and system review, provides assurance on the compliance of internal polices & procedures of the Company and certify the appropriateness of internal controls. Internal audit firms directly report to the management at higher level. The respective department of the Company monitors and evaluates the efficacy and adequacy of internal control system in the Company, its compliance with operating systems, accounting procedures and policies. The significant observations of internal auditors and corrective actions thereon are presented to the Audit & Ethics Committee on quarterly basis.
The functioning of the internal audit as well as internal financial control systems are periodically reviewed by the Audit & Ethics committee to ensure comprehensive coverage of the areas and necessary directions are issued whenever required to further strengthen the internal financial control system & procedures keeping in view the dynamic business environment in which the Company operates. Reports of the auditors are reviewed, compliances are ensured and the reports along with the compliances are apprised to Audit & Ethics committee on quarterly basis. Proactive steps have been taken to ensure compliance with various upcoming regulations through deployment of cross functional teams. In addition, implementation and effectiveness of internal financial controls during 2024-25 was also reported by the internal and statutory Auditors of the Company.
PROPERTY, PLANT AND EQUIPMENTS (i.e. FIXED ASSETS):
(Rs. in crores)
Year ended March 31 |
2025 |
2024 |
%age Growth |
Original Cost of Assets |
10,942.69 |
9,841.76 |
11.19% |
Less Accumulated Depreciation and Amortization |
4,643.42 |
4,121.40 |
12.67% |
Net Fixed Assets |
6,299.27 |
5,720.36 |
10.12% |
Note: As per IND AS, Net Block of Fixed Assets as on the date of transition i.e. 01.04.2015 has been considered as original cost of Assets i.e. Gross Block and Assets are re-classified. Further, this also includes ROU Assets recognized on account of Ind AS 116 w.e.f. 01.04.2019.
An amount to the tune of Rs.1,005.09 crores was capitalized during the year. The main additions were on development/ expansion of terminals, acquisition of wagons, handling equipments and IT Infrastructure etc.
WAGONS:
As on 31st March 2025, CONCOR is having 11,070 BLCM Wagons, 855 nos. BLC wagon, 760 nos. BFKHN wagon, 1402 nos. BLL wagon, 2300 nos. BLCS and 336 nos. BLSS wagons with 25 Ton axle load high speed wagons including 282 nos. BVZI (brake Van). Further, 480 numbers of BLCM wagons have been taken on Lease for a period of 10 years since 2018-19. Therefore, total holding is 17,203 nos. wagons (BLSS+ BLCS+ BLC+ BLCM+ BLCM/ Leased+ BLL+ BFKHN) and 282 nos. BVZI as on 31.03.2025.
INVENTORIES:
The Company being a service company, does not have stock in trade. The inventory is represented by stores and spares kept by the Company for maintenance of its own equipments.
SUNDRY DEBTORS:
Sundry debtors are 4.45% of the operating income of the year. Provision for doubtful debts, wherever considered necessary, has been made.
CASH AND BANK BALANCE:
The Company keeps majority of its cash & bank balances in short term fixed deposits with the banks. These cash reserves have been retained for financing the creation of infrastructure and expansion plans as well as investments in new businesses and alliances, including in JVs/Subsidiaries as per the plans of the Company.
CURRENT LIABILITIES:
The current liabilities of the Company comprises of financial and other liabilities. The financial liabilities are of the nature of trade payables and other financial liabilities.
The trade payables were amounting to Rs.228.09 crores at the end of the year, which during previous year were Rs.287.53 crores, it is the amount payable to the vendors and suppliers of the Company.
The other financial liabilities which are on account of employee related dues, security deposit received and other payables on account of capital works, revenue, etc. were Rs.313.36 crores at the end of the year, which were Rs.275.07 crores in the previous year.
The other current liabilities of the Company comprises of amount due towards advances/ deposits from customers against the services, statutory dues and unearned revenue. The balance on this account at the end of the current year was Rs.412.40 crores, which was Rs.437.40 crores in the previous year.
INCOME:
Income from operations has increased by 2.67% over FY 2023-24 to Rs.8,863.37 Crore. Between the two business segments i.e. EXIM & Domestic, EXIM segment contributes the major share of freight revenues. The increase in revenue was mainly on account of increase in revenue from rail freight, road freight, warehousing income and other operating income.
EXPENSES:
Terminal and other service expenses have increased by 3.19% to Rs.6,172.33 crores from Rs.5,981.67 crores for FY 2023-24. The increase was corresponding to higher operating activities.
FINANCE AND OTHER EXPENSES:
Finance cost has increased from Rs.65.33 crore to Rs.69.49 crore in FY 2024-25. The other expenses have increased by 17.49% to Rs.303.64 crore in FY 2024-25 from Rs.258.44 crores in FY 2023-24.
EMPLOYEE REMUNERATION:
The employee cost during FY 2024-25 has increased by 5.62% over FY 2023-24 which is normal increase due to increments and other factors.
RATIO ANALYSIS:
Details of significant financial ratios along with explanation thereof are as under:
Ratios |
FY 2024-25 |
FY 2023-24 |
Change (%) |
Debtors Turnover ratio (Times) |
24.49 |
31.82 |
(-) 23.02% |
Inventory Turnover Ratio (Times) |
Not Applicable |
||
Interest Coverage Ratio (Times) |
25.92 |
26.13 |
(-) 0.81% |
Current Ratio (Times) |
4.04 |
3.39 |
19.11% |
Debt Equity Ratio (Times) |
0.07 |
0.08 |
(-) 12.37% |
Operating Profit Margin (%) |
21.42 |
22.35 |
(-) 4.16% |
Net Profit Margin (%) |
13.64 |
13.66 |
(-) 0.15% |
Return on Net Worth (%) |
10.30 |
10.42 |
(-) 1.15% |
The net profit margin of the Company has marginally decreased during the year due to trade imbalance and inherent business dynamics despite cost cutting and other measures taken by the Company. This has also being reflected in marginally reduced Return on Net Worth of the Company.
FOREIGN EXCHANGE EARNING & OUTGO:
During the year the total foreign exchange outgo on account of various business related activities, including import of stores and capital goods was Rs.0.89 crores, which was Rs.0.63 crores during the previous year.
TAXATION:
Current and deferred income tax provision for the year have been made in accordance with the provisions contained in Income Tax Act, 1961 and the relevant Indian Accounting Standard. Accordingly, current tax, including earlier years tax adjustment and deferred income tax provisions have been worked out as Rs.377.79 crores and Rs.48.29 crores respectively.
MATERIAL DEVELOPMENT IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT:
CONCOR appreciates that an organization exists in a perpetual dynamism so do the business process and policies including HR Policies. CONCOR supports a continuous learning and thinking work-culture and encourages new and innovative development and updation of HR Policies. Updation and rationalization of several HR Policies were undertaken during the year.
Total manpower strength was 1,271 on 31.03.2025. The Industrial Relations remain cordial and harmonious and on account of issues, if any, raised by the Union, no-man-days were lost during the years. All the issues raised by the union were seized under conciliation under the Industrial Disputes Act 1947.
ENVIRONMENTAL PROTECTION AND CONSERVATION, TECHNOLOGICAL CONSERVATION, RENEWABLE ENERGY DEVELOPMENTS, FOREIGN EXCHANGE CONSERVATION:
CONCOR is committed for protection & conservation of environment, technological conservation, renewable energy development and foreign exchange conservation, the applicable detailed particulars regarding the work done on these aspects have been provided in the Directors Report and Business Responsibility & Sustainability Report (BRSR) both forming part of the Annual Report.
CORPORATE SOCIAL RESPONSIBILITY:
CONCOR is committed to implement its CSR policy in letter and spirit by taking up various welfare projects, including on environment sustainability for the betterment of all its stakeholders as well as weaker sections of the society to enable them to grow and prosper together. In this regard, detailed particulars of the work done under CSR have been provided in the annual report on CSR activities forming part of Directors’ report to the shareholders.
RISK MANAGEMENT:
The Company has an elaborate Enterprise Risk Management (ERM) framework in place. As a part of implementation of the ERM framework and in terms of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, CONCOR has in place a Board level Risk Management Committee (RMC) which reports to the Board about the risk elements, their mitigation plans, etc. at regular intervals. The RMC has been entrusted with the responsibility to identify and review the risks and formulate action plans and strategies for risk mitigation. The main function of RMC is to monitor various risks and to examine the adequacy of risk management policy and practices adopted by the Company and also to initiate action for mitigation of risks arising in operations and other key functional areas of the Company. CONCOR also has a committee below board level RMC, which comprises of Area Heads from each area and other functional heads of the Company. This committee is entrusted with responsibility of effective implementation of action plan formulated by board level RMC. Further, CONCOR has appointed a Chief Risk Officer (CRO) for coordination among various departments and management of Risk Assessment exercise every quarter.
The Company takes responsibility to proactively identify and address risks and opportunities to protect and create value for its stakeholders. All terminal heads of the operating units are required to regularly define the effectiveness or non-effectiveness of control /action plans formulated to mitigate the risk elements. The ERM reports are reviewed and evaluated by the RMC periodically and main risks identified by the RMC are appraised to Board of Directors.
Some of the key risks which the Company faces and the corresponding strategies undertaken for their mitigation by the Company are as under:
STRENGTHS:
CONCOR’s strengths are as under:-
As a progressive enterprise, CONCOR is relentlessly striving towards bringing a transformational shift from traditional supply-focused production to innovative, demand responsive value chains fostering value addition to significantly strengthen the client competitiveness. CONCOR has expanded its terminal network to 66, of which 04 are Exim Terminals, 24 Domestic Terminals, 34 Combined Container Terminals and 04 strategic tie-ups. Thus, large network of "state-of-the-art" terminals located across the country, giving it an unparalleled reach and penetration. Distinct cost advantage offered by CONCOR CFSs to users by virtue of their locations within ICD premises.
A large infrastructure base of rolling stock, especially the ownership of high-speed container flats (BLC/BLL wagons), and specialized container handling equipment etc. The Company owns a total of over 387 Rakes including High Speed (BLC+BLL+BLCM+BLCS+BLSS) and BFKHN Rakes as on 31.03.2025.
The company is having 17,485 Container Wagons, 107 Reach Stackers (RST), 5 Gantry Cranes, 29 Fork Lifts & 24 Shunting Engines as on 31.03.2025.
CONCOR also procured 8,862 new indigenously manufactured Containers a Boost for ‘Atma-Nirbhar Bharat’ Mission. Now it is having total Fleet of 53,211 Containers.
The Company has initiated the acquisition of BLCS Rakes with a loading capacity of 80MT per wagon. These new wagons are designed to handle larger loads, making them ideal for moving heavy and bulk cargo more efficiently with lesser cost per ton.
CONCOR is also having different capacity of Reefer Power Packs (i.e. 22 Container Capacity, 24 Container Capacity, and 44 Container Capacity) to feed power supply to refrigerated containers while transporting to ports.
Presently, 80% of bulk cement in India is transported by road. To divert this volume, CONCOR has procured specialized tank containers to carry bulk cement. CONCOR has given orders to procure 500 Tank containers and procurement of another lot of 500 Tank containers is in progress.
More than 35 years of presence in organizing efficient rail movement of containers & highly professional terminal management and operations of ICDs, combined with the experience of coordinating /liaisoning with Indian Railways, Customs and other Central & State Government agencies.
Highly committed team of experienced and skilled workforce with in depth knowledge of multi modal logistics business with a customer sensitive outlook. Ability to provide choice of mode of transportation between rail/road/sea (coastal)/ air according to the needs of the customer.
Lean and thin organization with reduced fixed costs.
Strong presence in virtually all container handling ports in India having forged good working partnerships with these ports.
Established & sustained long term relations with credible high-volume customers in the domestic sector. Major alliances have also been established with shipping lines and other logistics service providers.
Robust IT infrastructure with customized software applications for both EXIM and Domestic segments with internet-based customer interface & full EDI connectivity with Customs & Indian Railways and Customs interface.
Blue Chip Company with good market capitalization and viewed as a very good financial proposition by investors.
WEAKNESSES :
Overdependence on EXIM traffic & resultant exposure to vagaries of International Business/Trade trends.
Large dependence on Railways as a transporter leaves CONCOR vulnerable to increase in Haulage Charges & Policy changes.
Frequent market fluctuations in global EXIM trade and imposition of various government policies and levies may result to imbalance in Import and exports.
Shipping lines entering into the business of providing end to end logistics and diversifying their services which includes arranging Inland haulage of EXIM containers, providing CHA/FF business along with first mile-last mile logistics services.
Some Shipping Lines are having stake/strategic tie-ups with various PCTO/ICDs due to which their EXIM volume gets diverted to these PCTO facilities.
Setting up of various Private Ports over the Eastern and Western Coastal Indian peninsular and tie-up of these Ports with some major shipping lines/PCTOs.
Increasing trend in clearance of Import/Export containers on DPD/DPE mode, which poses serious threat on modal shift of EXIM cargo from Rail to Road sector.
Rapid development of advanced road infrastructure and resultant reduction in transit time by road between various hinterland locations connecting to Gateway Ports may pose serious impact on short lead EXIM Rail traffic.
Technologic advance like induction of LNG/electric trailers, GPS tracking facility on trailers, ensuring sustainability and continuous cargo/container tracking may pose threat to EXIM rail movement.
Land Acquisition A big constraint.
Difficulty in arranging return cargo, empty running.
Number of Rakes are increasing with PCTOs month-by-month and Proliferation of ICDs in Private Sectors.
Gaps between quality of service and the ever-growing expectations of the customers. At some places outsourced services are not of desired level on account of differences in the objectives of the service providers and CONCOR.
OPPORTUNITIES & THREATS:
The DFC network has significant potential for growth within the logistics sector and is already being touted as ‘Game Changer’ in freight transportation. Your company is well poised to tap the new business opportunities arising from potential Growth in EXIM container volumes and the likely increase in container traffic due to development of Dedicated Freight Corridors (DFCs). CONCOR in its initiative to use the terminal capacity for promoting double stack movement between hinterland & Gateway Ports of Gujarat have helped increase Rail co-efficient & make its services competitive. Strategically development of Multi-Modal Logistic Parks (MMLPs) and Freight Terminals across various locations along DFC network with collaborations are also being pursued to set new operational standards.
DFC is also in the process of development of Industrial Corridors, New Private Freight Terminals (PFTs), Goods Sheds, Multi-Modal Logistics Parks (MMLPs) and Inland Container Depots (ICDs) across its routes. CONCOR contemplates to join hands with the freight fraternity to offer best integrated logistics solutions with collaborative approach for inclusive growth.
The government’s recent announcement to set up dedicated container terminals under the ECRT policy represents another crucial step in bolstering domestic container traffic. Historically containerized cargo on rail has been dominated by export-import (EXIM) traffic, with domestic movement lagging behind. By implementing ECRT policy, IR aims to change that by repurposing existing railway infrastructure, including returned CONCOR terminals, by upgrading them to handle larger volumes of domestic containerized cargo. By identifying 24 strategic locations and permitting container storage, stability in access charges and hub-and-spoke operations, with the potential to add another 30 40 terminals in the future, the policy is designed to make rail an attractive option for shippers looking to capitalize on the cost efficiencies of rail over longer distances.
CONCOR is in the process to convert its Terminals into ECRT facility, wherever it is possible. So far approx. 7 locations have been Notified under ECRT Policy. In this way, CONCOR would be able to grab some more new opportunities of Domestic freight handling.
Shipping Lines are entering into Rail Movement and ICD Operations. In such scenario, CONCOR intends to explore the possibilities to collaborate with the Shipping Lines or Port Operators. The mandate of such JVs may be of setting-up and running of the MMLPs, procurement of Vehicles for Road movement, International Freight Forwarding, etc.
CONCOR is expanding its wings through strategic collaborations with major Logistics players, where CONCOR can be permitted to operate as an Exclusive Service Provider for mutual growth.
Indias e-commerce exports hold immense potential to grow significantly and become a key contributor to the country’s GDP. Addressing some of the existing challenges can further unlock opportunities for the sector to achieve its full potential and strengthen its position among leading global e-commerce exporters. Your Company is well positioned to pursue the opportunities to tap into the vast potential of the e-commerce sector within the realm of rail transportation and to achieve this ambitious goal.
There is a growing opportunity for CONCOR to attract private investment through Public- Private Partnerships (PPPs). Private sector involvement can bring in additional capital, innovation and operational efficiency, helping to accelerate the development and expansion of freight corridors and associated infrastructure. Your Company is well positioned to offer ‘Built-to-Suit Warehouses’ through PPP Model for e-Commerce Companies and Electronics Industry. Your Company is also making dedicated efforts towards ‘Net Zero Warehouses’.
The global manufacturing landscape has undergone significant shifts over the past decade. India has been one of the dynamic economies that gained greater presence in the space gradually vacated by developed countries. Industries such as Steel, Cement, Chemicals and Petrochemicals have stabilised industrial growth, while consumer-focused sectors like Automobiles, Electronics and Pharmaceuticals have emerged as growth drivers.
The development of logistics hubs, investments in infrastructure, and policy reforms to improve supply chain efficiency are measures in this direction. This requires collaboration between sellers and e-commerce operators at various stages of export and payment processes. Your Company aims to lower costs for Indian businesses, making exports more competitive and enabling quicker, smoother movement of goods domestically and internationally and doing great efforts in this direction. This approach aligns with the government’s commitment to the National Logistics Policy.
Company is also in the process of procurement of Tank Containers to support the Cement Manufacturing companies for the movement of Bulk Cement from their plants to destinations across India. In this Business Model, we are planning to enter into long-term arrangement with Cement Manufacturing companies to offer a new product in the market on a win-win situation basis is being followed.
The growing market potential in Air Cargo, Automobile Sector, Food Supply Chain management, Coastal shipping and Distribution Logistics offers scope for diversification, which will be effectively worked upon.
As CONCOR is also weighing a plan to venture into the global container shipping business by launching a Container Line for transporting EXIM Cargo, which is being pursued vigorously. CONCOR’s exploration into global container shipping underscores its dedication to providing comprehensive logistics solutions and bolstering India’s presence in international trade.
The company is exploring international expansion opportunities through the India Middle-East Europe-Economic-Corridor (IMEEC) and the International North South Transport Corridor (INSTC). These international corridors will connect India with key global markets, potentially reducing transit times and costs for international trade.
FUTURE OUTLOOK AND INITIATIVES:
Global Economic Scenario:
Global economic conditions are shaped by changing growth dynamics, fluctuating commodity prices, and evolving monetary policies, which influence domestic inflation, trade balances, and capital flows. At present, the economic environment is complicated by unusual levels of geopolitical tensions, supply chain disruptions, and climate-related shocks. These events impacted energy and food security, leading to higher prices and rising inflation. Geopolitical risks and policy uncertainty, especially around trade policies, have also contributed to increased volatility in global financial markets.
Tensions in the Middle East have disrupted trade through one of the critical shipping routes the Suez Canal. About 15 per cent of global maritime trade volume normally passes through the Suez Canal. In response, several shipping companies have diverted their ships around the Cape of Good Hope, which has increased delivery times by 10 days or more on average. These disruptions have led to higher freight rates along major shipping routes, which in turn impact global trade activity.
The disruptions in global shipping have pushed goods prices up. Container freight rates normalized in 2023, they experienced a significant surge in 2024. This was due to stronger demand, shipping route disruptions in the Red Sea, and delays at the Panama Canal, all of which have partially sustained inflationary pressures.
After enduring a prolonged and unprecedented series of shocks, the global economy appeared to have stabilized, with steady yet underwhelming growth rates.
Indian Economic Review:
India has emerged as the fastest-growing major economy in the world and is expected to be one of the top three economic powers in few years, backed by its robust democracy and strong partnerships.
India is projected to remain the fastest-growing large economy for 2025 and 2026, reaffirming its dominance in the global economic landscape. India’s economic outlook for 2025 and 2026 remains one of the brightest among major global economies, as highlighted by the IMF. Despite global uncertainties and downward revisions in growth forecasts for other large economies, India is set to maintain its leadership in global economic growth. Supported by strong fundamentals and strategic government initiatives, the country is well-positioned to navigate the challenges ahead. With reforms in infrastructure, innovation, and financial inclusion, India continues to enhance its role as a key driver of global economic activity. The IMF’s projections reaffirm India’s resilience, further solidifying its importance in shaping the global economic future.
India’s by implementing forward-thinking policies, fostering a robust infrastructure, and embracing digital transformation, the nation is redefining its global standing. As the fastest-growing large economy, with steady growth projected at 6.4% over the next two fiscal years, India continues to outpace global peers and cement its position as a leader in economic resilience and progress. From the Goods and Services Tax unifying the market to initiatives like Startup India and the Production Linked Incentive Scheme bolstering entrepreneurship and manufacturing, the nation is building a dynamic and robust economy. With this momentum, India is set to shape the future of the global economy, exemplifying the power of ambition, resilience, and strategic governance in achieving unparalleled progress.
Logistics Sector Growth Review:
Government of India has implemented a series of visionary schemes and initiatives aimed at propelling the nation towards sustained economic growth and global leadership. From infrastructure development under the PM GatiShakti National Master Plan to fostering innovation through initiatives like Startup India and the Production Linked Incentive Scheme, these reforms are transforming sectors such as manufacturing, digital economy, and financial inclusion. Collectively, they reflect Indias commitment to building a resilient, self-reliant, and globally competitive economy.
As per the World Bank’s Logistics Performance Index (LPI), 2023 India moved up to 22nd Rank in the Global Ranking in International Shipments category and the Overall 38th Rank in Logistics Performance Index score.
Indian Ports have registered quantum improvement in "Turn Around Time".
The Dedicated Freight Corridor (DFCs) have been specifically designed to connect India’s eastern and western regions, and northern hinterlands to the major consumer markets in western India. WDFC has achieved 96.4% and EDFC is fully Operational.
The PM Gati Shakti National Master Plan (NMP) platform aims at enhancing industrial productivity and helping the country achieve its green logistics and clean energy goals through multi-modal connectivity across highways, railways, ports, airports, logistics infrastructure, and inland waterways with an objective of facilitating sustainable economic activities.
The National Logistics Policy (NLP 2022) aims to create a cost-efficient, resilient, and sustainable logistics ecosystem. Focus areas in the National Logistics Policy include the Sectoral Plan for Efficient Logistics (SPEL) for major sectors of the economy like Coal, Cement, Fertilizer, Steel, Pharma etc. examining existing supply chain networks and promoting multi-modal transport, digitalization and automation.
Considering the sustainability and environmental advantages of railways, the government aims to boost Indian Railways freight share from the current 28% to 45% by 2030 through several strategic initiatives like National Rail Plan. Additionally, a Rail Sagar Corridor program by the Ministry of Railway being developed which aims to increase the Rail and ports-based cargo, improving modal shift for railways and contributing to cleaner ways of freight movement and to accelerate the growth of railways cargo traffic ‘Gati Shakti Multi Modal Cargo Terminal (GCT)’ policy has also been launched.
The Maritime Amrit Kaal Vision 2047 was developed in alignment with the principles of the blue economy. It outlines long-term aspirations for India’s maritime sector and provides a broad action plan for implementation. The vision aims to transform the sector through various key initiatives, including the expansion of port capacity through greenfield and brownfield developments, enhancing operational efficiency by leveraging automation and digitization, and making the sector more sustainable through green initiatives.
The Government recognizes the importance of sustainable logistics for Indias economic growth and environmental well-being. Several initiatives have been taken to promote sustainable Logistics Industry, leveraging technologies including digitalization and automation.
Indian Railways:
India has the fourth-largest railway system in the world, following the US, Russia and China. Indias railway network is recognized as one of the largest railway systems in the world under single management. The railway network is also ideal for long-distance travel and movement of bulk commodities, apart from being an energy-efficient and economic mode of conveyance and transport. Indian Railways is the preferred carrier of Automobiles in the country.
During FY 2024-25, Indian Railways achieved approximately 1617.38 MT of originating freight loading, as compared to 1590.68 MT achieved during FY 2023-24, registering an incremental loading of 26.70 MT (1.68%) owing to the implementation of several freight revenue initiatives. Some of the important measures to improve the freight include-
Encouraging private sector to develop the modern Rail Freight Terminals under ‘Gati Shakti Multi- Modal Cargo Terminal (GCT)’ policy and augmenting/ upgrading the infrastructure at railway owned goods sheds.
Indian Railways is exploring a new public-private partnership (PPP) model to attract private investment to re-develop railway stations. Under this model, investors would receive up to 40% of the total project cost as viability-gap funding (VGF) and will be allowed to use the space above platforms and tracks commercially.
Implementing various schemes for private sector to invest in wagons including the commodity focused specialized wagons such as wagons for cement, oil, steel, fly-ash, automobiles etc.
Facilitating cargo aggregation and thereby, expand the commodity basket by the schemes including the policy of "Cargo Aggregator Transportation Product" and "Joint Parcel Product-Rapid Cargo Services".
Implementing the several tariff related measures to enhance the rail share by making rail mode competitive with respect to road. These include Short Lead Concession for traffic upto 90 Km, Liberalized Automatic Freight Rebate scheme for traffic loaded in empty flow direction, discounts on loading of bagged consignment in open and flat wagon, discount in freight to Fly ash/Bed ash traffic, operation of Mini Rake for Container train, fixation of special haulage rate for Bulk Cement (cement in loose form) when transported in normal containers.
STRATEGY TO MEET THE CHALLENGES:
Your company has formulated a strategy for further growth with profitability in the growing Logistics sector. The strategy includes:
Setting up of Multimodal Logistics Parks at strategic locations along the Dedicated Freight Corridors (DFC) and at major industrial estates.
Diversifying service offering Freight Forwarding, Distribution, Customs Clearance by forming Strategic Tie-up and alliance with shipping line, port terminals.
Setting up of Private Freight Terminals (PFTs)/ Gati Shakti Multi Modal Cargo Terminal with road bridging solutions.
Promoting Double Stack Long Haul Trains and development of Rail Transshipment Hubs (RTH).
Exploring possibility of setting-up/operation of State-of-the-Art Warehouses at various locations of CONCOR with the partnership of entities willing to associate with CONCOR in PPP Model for long-term. This Model will cater the demand of Built-to-Suit Warehouses and also fulfil the requirement of 3PL services of manufacturing.
Exploring the possibility of movement of Bulk Cement in Tank Containers by Rail from Cement manufacturing plants to various parts of India through CONCOR while entering into a long-term arrangement with Cement Manufacturing companies to offer a new product in the market on a win-win situation basis.
Setting-up a facility for Storage and Transportation of Liquid & Gas Cargo at CONCOR Terminal primarily from Dahej Region through a Logistics Associate.
Rationalization of Haulage Charges to attract light weight traffic.
Under First Mile Last Mile Connectivity, CONCOR is making efforts to achieve it for 100% volumes of CONCOR with effective strategies & possible collaborations.
MEDIUM AND LONG TERM STRATEGY:
To achieve the target of 100 Terminals by 2028, CONCOR is in the process of identification of Potential Terminals on Railway Land, collaboration with major Shipping Lines/Leading Port Operators for setting-up the new MMLPs through JVs & Tie-up with Terminal Operators (Private as well as Government Agencies) for ICD Operations, as well as Access Agreement for Rail Movement on Exclusive basis.
To introduce Niche Warehousing to the Trade with the concept of offering ‘Built-to-Suit Warehouses through PPP Model for e-Commerce Companies and Electronics Industry & development of ‘Net Zero Warehouses’.
Contemplating New Revenue Streams through Non-Core Business i.e. Parcel Business, Tie-up and Agreements with Airport Operators or major Airlines to set-up the AFS & Liquid Cargo in Tank Containers etc.
Closely studying the freight designs being evolved for bulk transportation of Cement, Aggregate, Liquid cargo and Auto Cars etc. for new opportunities.
Exploring Agency Business and Bulk Cargo movement which will create immense opportunities and value addition to the Trade.
Plans to enhance more and more double stack operations for efficient utilization of its rolling stocks, improve dwell time of containers on port and its terminals at a reduced logistics cost.
Off shore presence in the neighboring countries.
Committed to Prime Minister’s Vision, goals set for zero emission by 2070. In a significant move CONCOR has ordered 100 LNG trucks for our NCR fleet operations which can cut hazardous emissions.
CONCOR and Innovation Thru Energy Company Limited (ITE) jointly unveiling state-of-the-art temperature controlled IceBattery powered passive technology containers coupled with advanced DX (Digital) platforms, addressing critical issues in cold chain logistics, including environmental concerns, food wastage and rising logistics cost.
To Make CONCOR a One Stop Logistics Solution and providing Services at the Customer’s Door step.
Providing Value added Services such as Cross Docking, Wrapping, Labelling, Palletisation, Bar Coding, Inventory Management, KYCL, Mobile APP, customized to the requirements of the customers.
More extensive and innovative use of Information technology in various activities especially for minimizing transaction costs, and meeting customer expectations.
To provide End-to-End Services including Coastal and Short Sea Services in Partnership with Shipping Lines, Freight Forwarders.
Standardizing services and Tariffs across terminals and offering containers as warehouses. Under this concept CONCOR owned DSO containers booked under inward/outward cycle are being utilized as a temporary warehouses. This concept has been well accepted by Trade.
Use of cutting edge Artificial Intelligence Command Centre based on the Global Navigation Satellite System, tracking of 3D stack location of container in real time commissioned.
As per Maritime Vision 2030 Target of Modal Share of Inland Water Transport (IWT) is 5% for 2030 and 7% for 2047. Thus, CONCOR is exploring the feasibility of movement Cargo through National Waterway.
CAUTIONARY STATEMENT:
Statements in the Board’s Report and Management Discussion & Analysis, describing the Company’s objectives, strategies, projections and estimates, expectations, etc. may be "forward looking statements" and progressive within the meaning of the applicable laws and regulations. By their nature, forward-looking statements require your Company to make assumptions and are subject to inherent risks and uncertainties. Forward looking statements which involve a number of underlying identified / non-identified risks and uncertainties that could cause actual results to differ materially from the expectations. Critical factors that could influence the Company’s operations include global and domestic demand and supply conditions, changes in Government regulations/tax laws, economic developments within the country and factors such as litigation and industrial relations. Since the factors underlying these assumptions are subject to change over time, the estimates on which they are based, are also likely to change accordingly. These forward-looking statements represent only your Company’s current intentions, beliefs and expectations. Your Company assumes no obligation to revise or update any forward-looking statement, whether as a result of new information, future events, or otherwise. Readers are cautioned not to place undue reliance on the forward-looking statements.
For and on behalf of the Board of Directors |
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Date: 01.09.2025 |
(Sanjay Swarup) |
Place : New Delhi |
Chairman & Managing Director |
DIN: 05159435 |
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