Economic Scenario:
The global economy demonstrated remarkable resilience in 2024 and 2025, navigating geopolitical instability and economic headwinds. Despite conflicts in Eastern Europe and the Middle East, trade flows and industrial output remained relatively steady, according to the UN Trade and Development Report. However, rising protectionism, particularly US tariffs, distorted supply chains and increased costs. Global trade growth is projected at a modest 2.7% for 2025, indicating a cautious recovery. The IMF forecasts global economic growth at 2.8%, a steady but below-trend pace. Advanced economies face challenges from high interest rates, tight fiscal policies, and sluggish productivity. Inflation is expected to decline from 4.3% in 2025 to 3.6% by 2026.
However, this apparent stability conceals significant underlying vulnerabilities. Geopolitical fragmentation, shifting trade regulations, and tariff uncertainties persist. Falling freight indices suggest softening industrial activity, particularly in sectors reliant on global supply chains. The realignment of trade routes and AI-driven logistics are reshaping the movement of goods, demanding more resilient and tech-savvy business strategies. Disinflation, easing commodity prices, and monetary policy loosening in many regions contribute to the fragile stability. However, ongoing conflicts, US tariff disputes, and climate risks threaten future growth. Growth patterns remain uneven, with the US outperforming expectations while the Eurozone lags. Chinas growth is moderate, while Indias rapid expansion stands out.
Indias ascent is particularly noteworthy. Projected to grow at 6.2% in 2025, India surpasses Chinas growth rate. This is driven by strong private consumption, robust public spending, and rising investments in manufacturing and services. While agricultural output slows due to monsoon issues, industrial activity remains vibrant. Despite some weakening in domestic consumption due to higher interest rates and inflation, the Indian governments personal income tax cuts aim to stimulate household spending.
The World Economic Outlook 2025 projects measured growth continuing into 2026. Developed economies are forecast to grow at 1.8% in 2025, while emerging markets and developing countries are projected to grow at 6.2%. This divergence highlights shifting economic power and the impact of global trade realignments. In conclusion, the global economy in 20242025 is navigating a complex landscape, with underlying strengths offset by significant geopolitical and economic risks. Indias emergence as a major economic player offers a positive counterpoint to these challenges.
Company Overview :
Patel Integrated Logistics Ltd. (PILL), formerly known as Patel Roadways Pvt. Ltd., was established in 1962 by Mr. Asgar Shakoor Patel and has since evolved into one of Indias most respected and diversified logistics companies. Starting as a pioneer in surface transport, PILL has steadily transformed into a full-spectrum logistics service provider, offering end-to- end solutions across air freight, warehousing, express cargo, and last-mile delivery. In 1988, the Company expanded its service portfolio through the launch of Patel On-Board Couriers Ltd. (POBC), a dedicated wholesale courier service aimed at enhancing operational efficiency and infrastructure. The strategic merger of Patel Roadways Ltd. and POBC in 2006 marked a pivotal moment, bringing together decades of legacy and innovation under the unified brand of Patel Integrated Logistics Ltd.
Over the years, PILL has played a pioneering role in shaping Indias logistics ecosystem, particularly in segments such as express delivery, Full Truck Load (FTL), Less Than Truck Load (LTL), courier consolidation, and integrated warehousing. By 2018, the Company sharpened its focus on high-value logistics services, building significant capabilities in air freight and value-added ancillary solutions. Leveraging a distinctive air freight model that utilizes commercial passenger aircraft, PILL offers both domestic and international cargo services, including time-critical deliveries such as same-day and last- mile solutions. Its operations are supported by a robust pan-India network that connects major airports, logistics hubs, and commercial centers, enabling seamless cargo movement across the country.
Today, PILL serves a broad and distinguished clientele across sectors, including leading names in the fast-growing e-commerce ecosystem. With a strong foothold in air freight?especially in the movement of cargo via passenger flights? Patel Integrated Logistics Ltd. continues to set new benchmarks in service excellence, innovation, and operational reliability, reinforcing its position as a leader in Indias logistics industry.The Company currently operates under the Patel Airfreight division, specializing in air cargo consolidation. It offers transportation of high-density cargo by air and surface, both within India and internationally. With around 91 branches across the country, the Company provides specialized services. Plans are underway to utilize its real estate assets to venture into a full-fledged logistics business.
Industry Overview:
The Indian logistics industry, though fragmented and dominated by unorganized players, has shown substantial progress over the past decade. Starting from a modest base, the sector has matured to a point where Indian logistics players are competing globally. Reviving domestic demand, government reforms, infrastructure development, retail sales growth, and the booming e-commerce sector are key growth drivers.
In FY 2024-25, the logistics sector demonstrated resilience, fueled by strategic government initiatives, technological advancements, and sustainability efforts. Key drivers included rising e-commerce, electric vehicle (EV) adoption in logistics, and infrastructure investments. Despite global challenges such as geopolitical tensions and supply chain disruptions, the domestic market witnessed growth in contract logistics, last-mile delivery, and B2B express services.
Government support through the Production Linked Incentive (PLI) scheme and infrastructure expansion boosted sectors like manufacturing and consumer goods. Steady performance in FMCG, pharma, and telecom further sustained demand. The industry rebounded from previous setbacks, positioning itself for long-term growth anchored in innovation, sustainability, and improved connectivity.
The air cargo industry continued to grow, with available cargo tonne-kilometers (ACTKs) increasing by 13.4% year-over-year. Total demand, measured in cargo tonne-kilometers (CTKs), rose by 3.2% compared to January 2024, and ACTKs increased by 6.8%. Indias logistics sector benefits from this growth, driven by e-commerce, manufacturing, and government-backed infrastructure. lATAs report noted Indias growing relevance in global logistics, with trade lanes such as Asia-North America and Europe-Asia expanding by 6.1% and 3.2% respectively. However, the Middle East-Asia lane saw a 3.0% decline.
Indias logistics market is supported by the Make in India initiative and export-oriented policies. E-commerce continues to accelerate demand for express deliveries. At the 81st IATA Annual General Meeting in June 2025, Prime Minister Narendra Modi expressed optimism that air cargo volumes would increase from 3.5 million metric tons to 10 million by the end of the decade.
Opportunities & Outlook:
The Indian logistics market covers a wide array of supply chain activities, including transportation, customer service, inventory management, information flow, order processing, warehousing, material handling, purchasing, packaging, and maintenance.
Key opportunities include: - Growth of logistics start-ups and real-time digital platforms lowering freight costs and increasing efficiency. - Government initiatives like Digital India, BharatNet, logistics parks, and FDI reforms. - Evolution towards end-to- end solutions, predictive analytics, and smart warehousing through TMS and WMS. - Expansion of e-commerce, increasing consumer spending, and rising demand in sectors like FMCG, pharma, defense, and IT. - Aviation investments of USD 11 billion from 2021-25 and India Aviation Vision 2040 aim to build 200-220 new airports.
As only 30% of Indian residential areas currently have access to airports, new airports are expected to boost regional connectivity, air cargo demand, and employment.
Challenges such as high freight rates, manpower shortages, and terminal congestion remain. However, advancements in AI, automation, and robotics are expected to improve warehousing and handling efficiency. The domestic air cargo market is set to reach 1.1 million tonnes by FY 2025, growing at a CAGR of 11.5%.
Risks & Concerns:
The current Geopolitical tensions due to revision of US tariffs and emerging global trade wars pose real risk for air cargo industry which will increase cost and custom delays. Lack of supporting infrastructure, automated material handling systems, and high manual process interference are some key areas where the Indian air cargo industry lags.
Industry-wide cargo capacity is projected to grow by only 4.4% will be insufficient to meet rising demand.
Industrial production and trade in goods are strongly interconnected, with manufacturing output influencing both the volume and value of traded goods as well as demand for air freight. Global Industrial Production also is not growing and this will be reflected in Air Cargo business.
The current lack of air cargo capacity also prevents that demand from materializing and instead leads to elevated air cargo rates and load factors and, moreover, forces the industry to move shipments by other means of transport.
Air cargo full freighter operations have not developed as was expected, and continual efforts through new policies/incentives need to be devised to provide a favorable environment to support growth.
In spite of the international fuel prices cooling off to an all-time new low, the Indian fuel prices have climbed up the operating costs of the air cargo industry. The ever-increasing cost of fuel is the biggest area of concern, as it is reducing profitability.
The warehouse industry in India is still highly unorganized and fragmented. High inventory holding costs, higher storage costs, and improper material handling, which leads to damage of the product, are the major concerns for the warehouse industry to high storage costs and product damage.
Human Resource Management:
Your company continues to place significant importance on its human resources and enjoys cordial relations at all levels. Our constant endeavor is to invest in people and people processes to improve human capital for the organization and service delivery to our stakeholders.
Attracting, developing, and retaining the right talent will be a key strategic imperative, and the organization continues its undivided attention towards that. Your company recognizes the fact that human capital is one of the vital constituents of a successful organization. The management strengthens human resources by making available better tools, technology, techniques, and training at the workplace to harness the latent potential, as it has always aimed at bettering the performance of individuals and as a team. Employees health and safety measures were taken care of at all workplaces.
The company is operating in the logistics sector, which has been growing rapidly. However, there is an acute shortfall of personnel with adequate training and education in logistical management in India. The management and mid-tier levels are provided with training on leadership skills, jointed skills and positions, and being process-driven.
Guided by the vision and overall strategy of the company, the focus is to build a strong workforce by establishing strong linkages between employees, processes, and values. Its focus remains on capability development in employees to maximize productivity and expand skill sets.
The company continues to enjoy peaceful and harmonious relations with all its employees through several proactive measures during the year. The company has 258 employees as of 31st March 2025.
Internal Control System:
In your company, an internal control system is in place to ensure the effectiveness and efficiency of the operations. An internal control system plays a significant role in the process of risk identification and its mitigation. It is a valuable contribution that ensures compliance with applicable laws and regulations.
The company is committed to further improving internal controls and strengthening the internal audit function. Further stress on Corporate Governance is being given in the current year. We firmly believe that the business can grow and develop on the required lines and profitability can be sustained only through Strong and Transparent Corporate Governance.
Financial and Segment-Wise Performance:
The discussion on the financial performance of the Company is covered in the Directors Report. The segment-wise performance is available in note 38 of the notes forming part of the accounts for the year under consideration.
Cautionary Statement:
Statements in the Management Discussion and Analysis Report describing projections, estimates, expectations, future outlook, etc. in connection with the business may be forward-looking statements within the meaning of applicable securities laws and regulations. However, the actual results could materially differ from those expressed or implied in the statements made by the management. Various factors that are outside the purview of the management control can cause these deviations. These factors include economic developments in the country, changes in governmental policies and fiscal laws, sudden and unexpected rises in input costs, changes in the demand-supply pattern in the industry, etc.
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