Orissa Bengal Carrier Ltd Management Discussions

1. INDUSTRY STRUCTURE AND DEVELOPMENTS:

"The Global Logistics Market was valued at USD 3931.8 Billion in 2024 with a projected CAGR of 7.2% from 2025 to 2030."

Global Logistics Industry includes all activities of the supply chain such as transportation, customer service, inventory management, flow of information and order processing. Other activities of the supply chain are warehousing, material handling, purchasing, packaging, information dissemination and maintenance among others.

In 2024, the global economy navigated moderate growth amidst persistent inflationary pressures and geopolitical instability. A year marked by significant global elections, the immediate impact of which is evident, while long-term effects remain to be seen, added another layer of complexity. Monetary policy, particularly interest rate adjustments in major economies, remained a central focus. Trade tensions and supply chain disruptions continued to strain global commerce and investment, while geopolitical volatility persisted. Concurrently, technological advancements, especially in AI and renewable energy, presented both significant opportunities for productivity gains and challenges related to workforce adaptation.

Looking ahead, the global economy in 2025 is projected to grow at a low but steady rate of 2.8%. The persistent conflict between Russia and Ukraine implicates the financial system. Commodity prices pose challenging trade-offs for central banks. Many emerging and frontier markets are facing especially difficult conditions. In China, financial vulnerabilities remain elevated amid ongoing stress in the property sector and new COVID-19 outbreaks. Bank holdings of domestic sovereign bonds have surged in emerging markets during the pandemic.

During the fiscal year 2024–25, the global freight transport and logistics landscape experienced significant turbulence, driven by a complex interplay of geopolitical, economic, environmental and technological forces. These factors not only disrupted established supply chains but also accelerated long-term trends toward digital transformation and sustainability. This report examines the key drivers of change and assesses their cascading impacts on freight operations worldwide.

Sustained conflicts in critical maritime chokepoints, such as the Red Sea, resulted in the rerouting of vessels. Trade dynamics were further complicated by an escalation of U.S.–China trade tensions. Renewed and sometimes extreme tariff policies (peaking at levels nearing 145% on certain goods) led to sudden cancellations of shipments. The logistics sector also experienced significant labour unrest. Widespread strikes at major U.S. ports, especially along the East and Gulf Coasts, led to stoppages that affected trade valued in the billions of dollars.

In parallel with regulatory mandates, the push for technological innovation supported the shift toward greener logistics. Advanced technologies such as artificial intelligence (AI), the Internet of Things (IoT), blockchain for enhanced tracking, and the use of autonomous vehicles contributed by streamlining operations and improving supply chain visibility.

As India continues its growth trajectory, logistics will be a decisive factor in determining the nations ability to attract investment, facilitate trade and become a global manufacturing and innovation hub. A coordinated approach involving infrastructure investment, institutional reform, and state-level action is essential to building a future-ready, cost-effective and sustainable logistics ecosystem.

"Chhattisgarh has been categorized as an Aspirer in LEADS 2024 in the Landlocked category."

The states performance in reasonableness of Road Freight Rates and Prices of Terminal Services remains notably weak. A few positive initiatives taken by the State include providing regulatory clearances under single window mechanism and presence of a grievances redressal mechanism for the sector.

State policy for logistics:

New Industrial Policy (2024–30) was notified on February 27, 2025, effective November 01, 2024 to March 31, 2030, explicitly promoting logistics infrastructure which offers incentives such as:

Stamp-duty waivers

Interest and capital subsidies Vehicle purchase subsidies

SGST reimbursement up to 75% of FCI for MSMEs

Additionally, logistics park incentives include duty exemptions, EPF grants, training reimbursements and infrastructure subsidies under the older policy.

Institutional mechanism for logistics implementation:

Institute of Driver Training & Research (IDTR) provides professional upskilling through simulators and workshops to improve driver standards. The State has initiated the institutional setup for logistics by appointing a nodal officer for logistics.

Infrastructure & Connectivity Projects:

Raipur–Visakhapatnam Expressway (464 km/6-lane)-to improve connectivity to Visakhapatnam Port; expected to be operational by 2025. Raipur–Ranchi–Dhanbad Expressway (707 km/4-lane) under Bharatmala Pariyojana to link coal belts and industrial areas; nearing implementation. Chhattisgarh allocated 9,500 Crore for infrastructure in FY 2025–26, including 2,000 Cr for new roads and ADB-backed upgrades in tribal areas. Expansion of state highway and district road network from 1100 km to a targeted 2,500 km by 2030 to support logistics flow.

Digital Platforms & Governance:

Single Window System 2.0 rolled out, digitizing approvals from 16 departments and streamlining permits and clearances. ULIP Implementation continued, integrating real-time logistics visibility, ministry data exchanges, and unified documentation platforms. VAHAN and SAARTHI systems fully operational statewide, reducing bottlenecks in vehicle registration and driver licensing.

Green Logistics & Innovation:

Indias first hydrogen fuel-cell truck was launched at the Gare Pelma III coal block, in partnership with Adani, to reduce diesel usage and emissions. Special 5% incentives were introduced for adoption of digital logistics systems, renewable technologies and waste management solutions.

OUR BUSINESS AND OUTLOOK

Orissa Bengal Carrier Limited (OBCL) was originally incorporated on October 18, 1994 as Orissa Bengal Carrier Private Limited under the provisions of Companies Act, 1956 with Registrar of Companies (ROC), Gwalior, Madhya Pradesh. OBCL was converted into a Public Limited Company on November 05, 2009 and the name of our Company was changed to "Orissa Bengal Carrier Limited" vide Certificate of Incorporation dated December 09, 2009, issued by the ROC, Madhya Pradesh and Chattisgarh, Gwalior.

The Company listed its Equity Shares on SME Platform of BSE Limited in the year 2018. The Company received its Listing Approval on April 04, 2018. Further the Company migrated the Listing/Trading of Equity Shares of the Company from SME Platform of BSE Limited to Main Board of BSE Limited and National Stock Exchange of India Limited (NSE) with effect from April 07, 2022. Our Company is engaged in Transportation & Logistics Business and has completed more than 30 years since incorporation.

We are one of the largest logistics companies headquartered at Raipur, Chhattisgarh, serving a broad range of industries, including the steel, coal, aluminium, cement, petrochemicals, paper, marble, tiles, infra, textile and FMCG. The main business activity of our company is Full Truck Load Transport service wherein we do transport the consignment by road all over India. We are one of the IBA approved transporter having ISO 9001:2015 certification for provision of Quality Management System Service.

We also provide services by vehicles hired by us to provide timely and quality services to our clients. The variety of goods transportation vehicles in our fleet enables us to serve a diverse mix of consignments.

Our Promoter, Late Shri Ratan Kumar Agrawal had played a crucial role in the Administration & Fleet Management of our Company and operated from our Head office. He had experience of around 25 years in transport and logistics industry and had been Director of our Company since incorporation. Our other Promoter is Smt. Shakuntala Devi Agrawal, wife of Late Shri Ratan Kumar Agrawal. She joined our company since incorporation. Mr. Ravi Agrawal, the current Promoter & Managing Director of the Company, joined the Company as a Wholetime Director w.e.f. July 01, 2018 and is currently handling all the Management and Administration of the Company. He is a Master in International Business and a commerce graduate having more than 12 years experience in the field of Accounts, Finance & marketing. Recently, Mrs. Priti Agrawal joined the Company as a Wholetime Director and is handling Personnel Management and Administration of the Company. She is a Master of Business Administration (MBA) degree from Disha Institute of Management and Technology, Raipur.

We believe that our management teams experience and their understanding of our business and industry will enable us to continue to take advantage of both current and future market opportunities. Our experience together with our consistent and successful track record of timely delivery and customer satisfaction provides us a competitive edge.

Segment–wise or product-wise performance

The 2 reportable segments of the Company during the year ended March 31, 2025 are:

a. Road Transportation Service: comprises truckload delivery services through its owned and hired vehicles provided to clients across various industries. b. Trading Business: Comprises the trading of various items like coal, sand, iron & steel etc. and its sales to various domestic parties.

During the year under review, the net segment revenue from Road Transportation Service was Rs. 30489.24 Lakhs and Rs. 3395.71 Lakhs from Trading Business.

Branch Distribution Network

Our Distribution Network having 39 branches spread in various parts of India and providing services across all cities of India. It enables us to cater to a diverse mix of customers including corporate, small and other enterprises, distributors and traders. Our Registered Office is located in Raipur, Chhattisgarh. Our large geographic coverage and operational network enable us to further integrate our operations, increase cost efficiencies and increase freight volumes.

Our Business Model

Our Company is maintaining its own fleet containing 83 commercial vehicles which includes trucks and trailers. In addition to this we hire around 18,000 vehicles from local market in the area from where service is to be provided which ensures timely arrangement of vehicle at our customer place. Therefore, the mix of our own fleet and vehicle hired by us for providing transportation services enables us to provide effective and exceptional services to our customer. The fleet operates across the country ensuring nation-wide services to our corporate and government customers. The specification of vehicle depends on the type of service required by our customer.

Our truck load delivery services operate through a hub-and-spoke model which enables us to transport goods and provide our customers access to multiple destinations for booking and delivery of goods. Our routes of operation for the transportation of goods connect various regions in India i.e., western & eastern regions and also southern & northern parts of India.

We believe that our differentiated service offerings, large integrated hub-and-spoke transportation network, commitment towards prompt and safe delivery of the goods and time bound services will enable us to develop our brand across India.

We work with clients to develop logistics solutions that meet their requirements.

For transportation services, we typically enter into time bound service contracts with our clients, which are renewed on regular basis as and when required. We offer flexibility in our contracts as our transportation contracts are usually customized according to certain terms, which may vary depending on whether we quote our prices on the basis of per truck (dedicated vehicles), per trip, per ton, per ton-per kilometer, overall project-based (optimization based, or cost savings based), cost-plus management fees or per unit transported, among others.

Competition

The goods transportation industry is unorganized, competitive and highly fragmented in India. We believe that the principal competitive factors include service quality, reliability, price and the availability and configuration of vehicles that are able to comprehensively address varying requirements of different customer segments and specific customer needs. Being IBA Approved, we get an edge over other unorganized and Non IBA Approved transporters. We believe that our ability to compete effectively is primarily dependent on ensuring consistent service quality and timely services at competitive prices, thereby strengthening our brand over the years.

Pan-India surface logistics services provider

>We are a pan-India surface logistics service provider and we believe that we are one of the reliable transporters in and across India. We are an established entity in the transportation industry in India with over 30 years of operations. We believe that our dedication towards quality, reliability and timeliness of services offered compete effectively with our competitors in the organized as well as unorganized sector, thereby strengthening our name over the years.

Experienced and motivated management team

Our Promoters are engaged in the business of Transport and Logistics for more than 30 years which gives us the advantage of developing our presence, relationship with our customers, and cordial relationship with our drivers and other employees. We also have a dedicated and experienced management team who are in charge of operation, quality management and delivery to each of our customers and functions well as a team along with the expertise and vision to expand our business.

We believe that our management teams experience and their understanding of our business and industry will enable us to continue to take advantage of both current and future market opportunities. Our experience together with our consistent and successful track record of timely delivery and customer satisfaction provides us a competitive edge.

Established Marketing Setup

Marketing is an important function of our organization. We provide our service throughout India, based on strength of relationship with our customers who have been associated with our Company for a long period. Our promoters along with the marketing team play an important role for timely and quality delivery of services. To retain our customers, our marketing team regularly interacts with them and focuses on gaining an insight into the services and other additional needs of such customers.

Diversified Customer Base

We serve customers across several industry sectors viz. Metal, Steel, coal, aluminum, cement, petrochemicals, paper, marble, tiles, infra, textile, FMCG etc.

Quality of Services

We adhere to quality standards as per industry standards, hence, we get repetitive work order from our customers, as we believe we are capable of meeting their quality standards at competitive costs, which enables us to maintain our brand image in the market.

Strategic location

We are headquartered in Chhattisgarh which contributes approximately 30.00% to Indias steel/sponge iron production, 20.00% cement in Indias production, so there are large number of steel and cement industry in our belt providing us a benefit to easily cater them the services they need to transport goods to other required location.

Augment our fund-based capacities in order to scale up business operation

Our business operations are working capital intensive. In order to effectively expand our business arenas/ services and also diversify the operating routes in various geographical locations, along with the existing facilities we need to have access to a larger amount of liquid funds and sufficient working capital. We expect to increase our volumes, revenues and scale of operations and we will require substantial working capital for the same. It is hence our strategy to raise funds from this issue and augment our fund based working capital capabilities.

Increase our goods transportation network

We are expanding our goods transportation network across Northern, Central, and Eastern India while enhancing depth in existing regions.

Need for Integrated Logistics Infrastructure

Indias logistics sector remains highly unorganised, with many small, independent operators across the supply chain. This lack of integration leads to inefficient resource use, limited standardisation and poor coordination among stakeholders. Adopting digital platforms and developing logistics parks and hubs can drive consolidation, streamline processes, enhance efficiency and reduce costs through scale benefits.

Impact of Volatile Fuel Prices on Logistics

Fuel makes up a major part of transportation costs for logistics providers. Since India relies heavily on imported crude oil, global price changes directly affect domestic diesel costs. These fuel price fluctuations significantly impact industry margins, affecting all stakeholders in the supply chain. Sharp increases in prices can disrupt operations, forcing logistics companies to either raise charges or absorb losses. On the other hand, sudden drops in fuel costs may temporarily boost profits and lead to intense market competition. To manage this risk, many logistics firms link customer contracts to fuel price variations.

Addressing Truck Driver Shortage

The trucking profession often appears unattractive to potential drivers due to safety concerns, tough working conditions, irregular hours and extended time away from home. However, improvements in road infrastructure and the adoption of safety-enhancing technologies are gradually making the profession safer and more sustainable, leading to better working conditions for drivers.

Enhancing Last-Mile Delivery Efficiency

The last-mile segment of the logistics chain presents persistent challenges, including limited manpower, inadequate road infrastructure, traffic congestion, inaccurate address mapping and weather-related disruptions. These factors contribute to delivery delays, increased operational costs, and reduced customer satisfaction particularly for sectors like e-commerce and FMCG, which heavily rely on timely and efficient deliveries.

To address these issues, logistics providers are increasingly adopting digital mapping technologies, exploring alternative delivery modes.

Geopolitical and Socio-Political Risks

Events such as war at international borders, terrorist attacks, civil unrest or communal disturbances, whether in India or globally may significantly impact financial markets. Any major hostilities involving India or key global economies, or other acts of violence beyond our control, could materially affect investor sentiment and economic stability. Such events often lead to heightened market volatility, which in turn could adversely impact the price of our equity shares.

Regulatory and Legal Uncertainties

Changes in laws, regulations or tax policies and their adverse interpretation, may increase compliance burdens, operational costs or liabilities. Such legal uncertainties could negatively impact our business performance, reduce demand for our services, and affect our financial condition, results of operations and overall growth prospects.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has established adequate internal control systems commensurate with its size and business nature, covering inventory, fixed assets and sale of goods and services. These systems ensure that all assets are safeguarded against unauthorized use or disposition and that all transactions are properly authorized, recorded and reported.

A robust internal audit mechanism supports effective implementation of corporate policies related to financial reporting, accounting and information security. The Audit Committee oversees internal controls, reviews their adequacy and provides regular recommendations.

To further strengthen operational integrity, the Company has appointed M/s. RA Agrawal & Associates as Internal Auditors for comprehensive departmental reviews.

Additionally, under the "One Company One Software" policy, the Company has implemented Lozics software to enhance security and streamline financial processes.

Key features include:

Restricted access-only authorized personnel can modify entries.

Simplified verification and audit processes. Regular employee training for smooth adoption. Proven reliability-already used by 100+ logistics companies.

These measures collectively enhance operational transparency, accuracy and data security across the organization.

Financial performance with respect to operational performance

During the year under review, the Company recorded a Revenue from Operations of 30,489.24 Lakhs and a Net Profit After Tax of 107.94 Lakhs, compared to 33,279.82 Lakhs and 368.62 Lakhs respectively in the previous year. The Profit Before Tax as a percentage of Revenue from Operations stood at 0.66% for FY 2024-25, as against 1.64% in the previous year.

To enhance revenue in the coming years, OBCL is exploring opportunities in untapped sectors of the transport industry. Additionally, a new software platform is under development to onboard over 10,000 commercial transport vehicles, which is expected to significantly boost operations and competitiveness.

The Board is optimistic about long-term growth in the transport sector and is confident in the Companys potential to capitalize on emerging opportunities. The Management remains committed to improving profitability and ensuring sustainable growth in the forthcoming financial years.

Events occurring after the balance sheet date

There are no transactions of material nature that have occurred after March 31, 2025, which could have any impact on the financial performance of the Company for the year 2024-25.

Human Resources

We consider our employees vital to our success and strategy. As of March 31, 2025, we had 147 employees across India. Our administrative team supports key functions like planning, IT, HR and finance, while our decentralized management enables timely decisions. Driver recruitment, training, and retention are crucial to our growth. We offer comfortable equipment, performance-based incentives, safety rewards, and direct communication with senior management, fostering a motivated workforce committed to operational excellence and customer satisfaction.

FINANCIAL RATIOS:

The details of significant changes (i.e. change of 25% or more as compared to immediately previous financial year), in the key financial ratios, along with detailed explanations therefor, are given below:

2. DISCLOSURE OF ACCOUNTING TREATMENT:

In the preparation of financial statements during the FY 2024-25, there has been no treatment followed which was different from that prescribed in an Accounting Standard.

3. CAUTIONARY STATEMENTS:

All statements made in Management and Discussion Analysis has been made in good faith. Many unforeseen factors may come into play and affect the actual results, which may be different from what the management envisages in terms of performance and outlook. Factors such as economic conditions affecting demand/supply and priced conditions in domestic markets in which the company operates and changes in government regulations, tax laws, other statues and other incidental factors, may affect the final results and performance of the Company.