Timescan Logistics India Ltd Management Discussions

SHIPPING INDUSTRY & PORTS IN INDIA

(Source: IBEF)

India, with its 7,516 km coastline, is the sixteenth-largest maritime nation in the world and a critical player in global trade. The countrys maritime infrastructure is anchored by 12 major ports and more than 200 notified minor and intermediate ports, with six new mega ports planned under the National Perspective Plan for Sagarmala. There are 12 major ports in the country, 6 on the eastern coast and 6 on the western coast. More than 54% of the total cargo is being handled at 12 major ports in India. Nearly 95% of Indias trade by volume and 70% by value is carried through maritime transport, underscoring the sectors central role in sustaining economic growth and international commerce.

The Government of India has been a strong enabler for the industry, allowing 100% Foreign Direct Investment (FDI) under the automatic route for port and harbour construction and maintenance, while also offering a 10-year tax holiday to enterprises engaged in the development, operation, and maintenance of ports and inland waterways. owth

MARKET SIZE

In FY25, all key ports in India handled 854.56 milliontonnes(MT)ofcargotrafficcompared to 819 MMT handled during FY24. During FY26 (April-December), total Cargo handled by major ports was 672.99 MMT with overseas cargo and coastal cargo accounting for 77.37% and 22.63%, respectively. Merchandise exports reached US$

366.26 billion during FY26 (April 2025 to January 2026) and US$ 437.70 billion in FY25. The Government has taken several measures to improve operational efficiency through mechanisation, deepening the draft and speedy evacuations. The Energy Information Administration (EIA) estimated that Indias consumption of petroleum and other liquid fuels will reach 5.65 million barrels per day (mbpd) in 2025 and 5.81 mbpd in 2026. Indias crude oil and petroleum products imports stood at 260.04 MMT in FY25 and 264.45 MMT in FY26 (April-December 2025).

INVESTMENTS/DEVELOPMENTS

Some of the major recent developments are:

- At India Maritime Week 2025, investment pledges worth Rs. 12 lakh crore (US$ 135.5 billion) were signed, with approximately 30% directed toward port development and modernization. This aligns with Indias goal to scale its maritime sector significantly.

- India plans to roll out Rs. 4,000 crore (US$ 454 million) in incentives over 10 years from 2026 to boost its shipbreaking industry and reclaim market share from Bangladesh and Pakistan.

- Union Minister for Ports, Shipping and Waterways, Mr. Sarbananda Sonowal, stated Indias ports sector is set to attract investments worth Rs. 80 lakh crore (US$ 903.65 billion). During the upcoming Maritime Week, MoUs worth Rs. 10 lakh crore (US$ 112.96 billion) were expected to be signed. New Mangalore Port Authority to triple capacity over the next 20 years using solar power. highlighted its net profit

- Ports in India are projected to handle 95% of trade by volume and contribute 2-3% annually to Indias GDP. A government investment of Rs. 8 trillion (US$ 90.36 billion) plus reforms are expected to generate around 15 million jobs by 2047. This scale of investment and job creation provides long-term competitive advantage and economic growth.

- Vadhavan Port, set to be Indias largest with a Rs. 77,427 crore (US$ 9 billion) investment plans to raise Rs. 30,000 crore (US$ 3.5 billion) in debt to strengthen maritime trade.

- India will invest Rs. 75,000 crore (US$ 8.72 billion) from July 2025 over five years to establish three shipbuilding clusters along the east and west coasts, strengthening domestic capabilities and attracting global partnerships.

- Inland Water Transport (IWT) recorded 145.5 MMT cargo movement in FY25, with traffic projected to exceed 200 MMT by 2030 through sustained schemes, infrastructure, and policy support.

- The average turnaround time at major ports has fallen from 127 hours in 2010-11 to 49.32 hours as of FY26 (April 2025 to December 2026).

- The Conference on Maritime Decarbonization in India, held in October 2024, reinforced the nations goal of net-zero emissions by 2070, showcasing initiatives like Harit Sagar and Harit Nauka guidelines for green ports and cleaner shipping. India and the Netherlands plan to establish a green, digital corridor linking Indian ports with the Port of Rotterdam to export green hydrogen and its carriers, including ammonia and methanol, to Europe, under Indias Maritime Vision 2030.

- Deendayal Port Authority emerged as Indias top major port by cargo volumes, handling 116.25 million tonnes in FY26 (April-December), accounting for nearly 17.23% of the total. It was followed by Paradip Port in Odisha, which handled 115.26 million tonnes, contributing around 17.13% of the total cargo.

- APSEZ handled a record 450 million tonnes of cargo in FY25, achieving a 7% YoY increase in domestic port operations. The company continued its expansion and now operates 15 ports across India, with Mundra Port surpassing 200 million tonnes in annual cargo volume for the first time.

- Indias Major Ports have achievedsignificantmilestones in FY25, demonstrating notable progress in cargo handling, operational efficiency, and infrastructure development. Major Ports recorded a 4.3% growth in cargo handling, reaching approximately 855 million tonnes, up from 819 million tonnes in FY24.

- In FY25, 962 acres of land were allocated for port-led industrialisation, expected to generate Rs. 7,565 crore (US$ 887.80 million) and attract future investments of Rs. 68,780 crore (US$ 8.07 billion).

- Indias ports sector is set for major expansion between FY23 and FY28, with an estimated annual capacity addition of 500-550 million Tonnes Per Annum (MTPA). This growth is primarily driven by increased handling of Petroleum, Oil, and Lubricants (POL), coal, and containerized cargo.

- Indias Inland Waterways Authority of India (IWAI), under the Ministry of Ports, Shipping and Waterways, has achieved a historic milestone by recording a cargo movement of 145.5 million metric tonnes (MMT) in FY25, reflecting a CAGR of 20.86% from 18.1 MMT in FY14. A YoY increase of 9.34% was noted from FY24.

- Adani Ports and Special Economic Zone Ltd. has secured a five-year operation and maintenance contract at Kolkata Port, which will help the company enhance synergies with its transshipment hubs in Colombo and Vizhinjam.

- India plans to establish a new shipping company to expand its fleet by at least 1,000 ships in the next decade, aiming to reduce freight costs and capture more revenue from increasing trade, with joint ownership by state-run oil, gas, and fertilizer companies, along with the state-run Shipping Corporation of India and foreign companies, targeting a reduction of at least one-third in foreign freight outgoings by 2047.

- Adani Group plans Rs. 26,088 crore (US$ 3 billion) investment over three to five years to expand global ports capacity, targeting strategic acquisitions in Europe, Africa, and Southeast Asia to increase revenue from overseas ports to 20-25% and support the India-Middle East-Europe Economic Corridor.

- On March 15, 2024, the Ministry of Ports, Shipping and Waterways approved Rs 645 crore (US$ 77.79 million) for 10 new waterways projects on the Brahmaputra in Assam, enhancing connectivity, boosting river tourism, and facilitating public commute, all under the Sagarmala programme.

- On March 09, 2024, Indias trade in container shipments experienced notable growth, totalling nearly 1.9 million TEUs, marking a 5% increase from January. Mundra Port managed 6,35,000 TEUs, Nhava Sheva Port handled 5,65,000 TEUs, and PSA Mumbai processed 1,58,000 TEUs.

- India has plans to invest US$ 82 billion in port projects by 2035.

- The Global Maritime India Summit 2023 to serve as a platform to showcase global best practices, foster investment partnerships and chart a new and bright course for our collective future.

- The cumulative FDI equity inflow in the Port industry is Rs. 6,730.9 crore (US$ 1.6 billion) during the period April 2000-June 2025.

- India plans to cut its maritime carbon footprint by powering 1,000 vessels with renewable energy over

Aligning with net zero goals by 2070, the move supports eco-friendly cargo transport, backed by Rs. 50,000 crore (US$ 5.75 billion) infrastructure investment in inland waterways.

- Jawaharlal Nehru Port Trust (JNPT) Special Economic Zone (SEZ) became the first of its kind operational port-based multi-product SEZ in India.

GOVERNMENT INITIATIVES

Some of the major initiatives taken by the government to promote the ports sector in India are as follows:

- Sagarmala Programme envisages 839 projects with a total estimated investment of about Rs. 5.79 lakh crore (US$ 65.52 billion) by 2035. Of these, 277 projects worth approximately Rs. 1.41 lakh crore (US$ 15.95 billion) have been completed, while 209 projects worth around Rs. 1.62 lakh crore (US$ 18.33 billion) are under implementation. Another 353 projects, with an investment worth Rs. 2.75 lakh crore (US$ 31.12 billion) are in planning stage.

- Under the Sagarmala Programme, 65 projects with an estimated investment of approximately Rs. 2.20 lakh crore (US$ 24.89 billion) have been identified for implementation for non-major ports. Of these, 10 projects worth Rs. 12,692 crore (US$ 1.44 billion) have been completed, 21 projects worth about Rs. 48,009 crore (US$ 5.43 billion) are currently under implementation, and the remaining 34 projects, with an estimated cost of approximately Rs. 1.59 lakh crore (US$ 17.99 billion) are at various stages of planning.

- The government encourages private sector participation through PPPs to modernize port terminals and improve logistics. Around 50% of major ports operate under PPPs currently, expected to grow to 85% over the next decade. PPPs have contributed around Rs. 550 billion (US$ 6.2 billion) in investments over 25 years.

- The government targets Rs. 80 lakh crore (US$ 903.65 billion) investments under Sagarmala to boost port handling capacity to 10,000 MMT by 2047, generating millions of jobs.

- The government passed five crucial marine-related bills recently, including the Indian Ports Bill, which watershed moment for the sector. Financial incentives and schemes have accelerated shipbuilding and maritime infrastructure growth, setting the stage for next growth phases in port demand and operations.

- The Rajya Sabha passed the Indian Ports Bill, 2025 on August 18, 2025, replacing the 1908 colonial law to modernise port operations, enhance transparency, ensure environmental and safety standards, and align with global practices.

- There are 234 port modernization projects worths Rs. 2,91,279 crore (US$ 32.96 billion). Of which, 106 projects worth Rs. 35,423 crore (US$ 4.01 billion) have been completed and 53 projects worth Rs. 71,956 crore (US$ 8.14 billion) are being implemented as of December 2025.

- As of December 2025, the Sagarmala Programme has identified 279 port-connectivity projects worth Rs. 2,06,373 crore (US$ 23.35 billion). Of these, 149 projects worth Rs. 1,22,971 crore (US$ 13.91 billion) comprise of 96 completed projects valued at Rs. 58,628 crore (US$ 6.63 billion) and 52 projects under implementation worth Rs. 67,378 crore (US$ 7.62 billion). 114 rail projects worth Rs. 1,00,599 crore (US$ 11.77 billion) have been taken up, with 49 completed. 152 road projects worth Rs. 98,422 crore (US$ 11.52 billion) have been with 26 completed. 10 Multi-Modal Logistics Parks (MMLP) worth Rs. 2,237 crore (US$ 261 million) are being developed, with five operational and others in advanced stages of implementation. Five parks located in Chennai, Bengaluru, Indore, Nagpur, and Jogighopa.

- The government introduced One Nation One Port Process (ONOP) initiative in February 2025 which aims to unify documentation and processes across all major ports, reducing paperwork by 25% for container and bulk cargo operations and driving substantial savings in logistics costs.

- The Union Budget 2025-26 introduced a Maritime Development Fund (MDF) of Rs. 25,000 crore (US$ 2.9 billion) to support ship acquisition and infrastructure, aiming to raise the share of Indian-flagged ships in global cargo to 20% by 2047.

- The Government of India is advancing Sagarmala 2.0 with Rs. 40,000 crore (US$ 4.65 billion) in support to drive Rs. 12,00,000 crore (US$ 139.49 billion) in investments from 2025 to 2035, enhancing shipbuilding, port modernisation, coastal growth, and maritime competitiveness.

- India and the Netherlands will establish a green and digital corridor between Indian ports and the Port of Rotterdam to boost clean energy trade. This initiative focuses on exporting green hydrogen and its derivatives to Europe while enhancing port digitalisation, green shipping, and logistics, aligning with Indias Maritime Vision 2030 to modernise port infrastructure.

- To encourage a modal shift to Inland Water Transport (IWT), the Government introduced the Jalvahak Cargo

Promotion Scheme on December 15, 2024, offering 35% reimbursement on operational costs and launching a scheduled cargo services on key NW routes. The Union Budget 2025-26 also extended the tonnage tax regime to inland vessels under the Indian Vessels Act 2021.

- The Union Cabinet has approved the construction of a six-lane access-controlled greenfield high-speed National Highway, connecting Jawaharlal Nehru Port Authority (JNPA) Port (Pagote) to Chowk (29.219 kilometer) in Maharashtra at an investment of Rs. 4,500 crore (US$ 521.50 million).

- Indias 12 major ports handled 673 million tonnes of cargo in FY26 (April-December). Total cargo reached 855 million tonnes in FY25, reflecting 4% YoY increase from FY24.

- In October 2024, Union Cabinet approved the development of the National Maritime Heritage Complex (NMHC) at Lothal, Gujarat, showcasing Indias 4,500-year-old maritime heritage. This project is expected to enhance employment, tourism, and cultural preservation with phased development supported by public-private partnerships with a completion goal of 2025 for its first phase.

- In July 2024, the Union Minister for Ports, Shipping, and Waterways Mr. Sarbananda Sonowal approved a Rs. identified, 284.19 crore (US$ 34 million) project by the Jawaharlal Nehru Port Authority (JNPA) to establish a comprehensive agricultural commodity processing and storage facility aiming to streamline logistics, reduce handling stages, and extend the shelf life of agricultural products. The projected export capacity includes a frozen store of 1,800 metric tonnes, a cold store of 5,800 metric tonnes, and dry warehouses for 12,000 metric tonnes of grains, cereals, and dry cargo.

- On 19 June 2024, the Government of India approved the establishment of a Major Port at Vadhavan, Maharashtra, with an estimated cost of Rs. 76,220 crore (US$ 9.14 billion), aiming to enhance EXIM trade capacity and accommodate mega vessels, while facilitating public-private partnerships for infrastructure development.

- On 29 July 2024, Secretary Mr. T.K. Ramachandran reviewed the functioning of the Paradip Port Authority (PPA) and inaugurated key projects worth over Rs. 13 crores (US$ 1.56 million), including a Trauma and Burn Care Centre and a Water Treatment Plant with a capacity to filter 16 million litres of water per day, enhancing the ports infrastructure and services.

- On July 26, 2024, the Government of India announced an update to the Shipbuilding Financial Assistance Policy (SBFAP), which has provided financial aid totalling Rs. 337 crores (US$ 40.40 million) to enhance Indias competitiveness against foreign shipyards and revitalize the shipbuilding industry. Since the policys inception, 313 vessel orders valued at approximately Rs. 10,500 crores (US$ 1.26 billion) have been secured.

- On July 26, 2024, the Government of India announced 29 new proposals from Andhra Pradesh and Visakhapatnam

Port Trust under the Sagarmala project, totalling approximately Rs. 3,300 crores (US$ 395 million). These initiatives include port development and fish landing centres.

- The Union Budget 2025-26 extends the Shipbuilding Financial Assistance Policy (SBFAP) 2.0 with Rs. 18,090 crore (US$ 2.08 billion) outlay, offering subsidies to Indian shipyards to offset costs and boost domestic shipbuilding.

- Under the Sagarmala Programme, 45 projects totalling Rs. 47,166 crore (US$ 5.69 billion) have been earmarked for execution at Non-Major Ports. Of these, 4 projects worth Rs. 5,419 crore (US$ 0.65 billion) havebeenfinalized, while 17 projects valued at Rs. 27,673 crore (US$ 3.34 billion) are presently underway. 31 out of the 45 projects are being carried out through Public-Private Partnership (PPP) mode, with a collective investment of Rs. 45,973 crore (US$ 5.54 billion).

- On March 07, 2024, the Union Minister for Ports, Shipping, and Waterways, Mr. Sarbananda Sonowal approved a project exceeding Rs. 800 crore (US$ 96.48 million) to revamp Syama Prasad Mookerjee Port, Kolkata, encompassing berth reconstruction and mechanization to enhance operational efficiency and global competitiveness.

- On February 20, 2024, The Union Minister of Ports, Shipping & Waterways and Ayush, Mr. Sarbananda Sonowal initiated major waterways projects in Northeast India, including inaugurating terminals at Bogibeel and Sonamura, unveiling projects worth Rs. 308 crore (US$ 37.14 million) and announcing initiatives for improved connectivity and economic growth.

- The Ministry of Ports, Shipping and Waterways will invest over Rs. 57,000 crore (US$ 6.55 billion) to boost Kandla Ports capacity, including a Rs. 30,000 crore (US$ 3.45 billion) mega shipbuilding project and Rs. 27,000 crore (US$ 3.10 billion) cargo terminal.

- On September 19, 2023, the Ministry of Ports, Shipping, and Waterways proposed the Indian Ports Bill with the aim of enhancing transparency in port tariffs and updating penalties. The bill empowers the Maritime States Development Council (MSDC) for integrated planning and introduces a three-tier dispute resolution mechanism for conflicts between state maritime boards.

- On August 24, 2023, the Ministry of Ports, Shipping and Waterways initiated the development of a Next-Gen Container Terminal at Tuna Tekra, Gujarat, through a Rs. 4,243.64 crore (US$ 511.7 million) PPP agreement with DP World, enhancing port infrastructure and trade connectivity.

- On January 27, 2023, the Honourable Minister for Ports, Shipping, and Waterways inaugurated the National Logistics Portal (Marine). This platform connects logistics stakeholders, enhancing efficiency, transparency, and reducing costs and time delays through IT integration. Covering all transport modes, it offers seamless end-to-end logistics service coverage.

- The government aims to increase Inland Water Transport (IWT) share to 5% by 2030 as per Maritime India Vision (MIV)-2030, emphasizing its cost-effectiveness and sustainability for bulk cargo transportation, particularly along National Waterway No. 1 (River Ganga).

- In Union Budget 2023-24, the total allocation for the Ministry of Shipping was US$ 1,813.16 million (Rs. 2,218.74 crore).

- The Green Port Guidelines issued by the Ministry of Ports, Shipping and Waterways in May 2023 provides a roadmap for Indian major ports to reduce carbon intensity through green technologies, renewable energy, electrification, waste minimisation, environmental monitoring, and sustainability targets consistent with national de-carbonisation goals.

ROAD AHEAD

The Indian ports and shipping sector is on a transformative growth path, supported by rising investments, expanding cargo volumes, and a strategic policy push. Service providers in areas like O&M, pilotage, harbouring, and marine assets are already benefiting, while the development of domestic waterways promises a cost-effective and environmentally sustainable mode of freight movement. By 2030, the operationalisation of 23 waterways will further diversify Indias logistics network.

The Shipbuilding Financial Assistance Policy (SBFAP), extended until March 2026, is playing a pivotal role in strengthening the shipbuilding industry, with added incentives for green-fuel and hybrid propulsion systems driving technological advancement. Complementing this, the Sagarmala programmes massive pipeline of 574 projects worth Rs. 6,00,000 crore (US$ 82 billion) is reshaping coastal and port infrastructure. Mega investments at Kandla Port and the establishment of the Rs. 25,000 crore (US$ 2.87 billion) Maritime DevelopmentFundreaffirmthe governments commitment to capacity building and global competitiveness.

As these initiatives converge, India is well-positioned to not only lower logistics costs but also to evolve as a sustainable, technology-driven maritime hub. The road ahead will be marked by enhanced efficiency, greater self-reliance, and a stronger presence in global shipping and trade networks.

OVERVIEW

Timescan Logistics (India) Limited, an ISO 9001:2015 certified company, is a leading integrated logistics and supply chain solutions provider, delivering comprehensive end-to-end services across domestic and international markets. With a strong presence across multiple transportation modes, the Company offers a wide spectrum of logistics solutions encompassing Sea Freight Forwarding, Air Freight Forwarding, Customs Clearance, Warehousing and Distribution, Multimodal Transportation, Project Cargo Handling, Third-Party Logistics (3PL) Services, Packaging Solutions, and allied value-added services such as loading, unloading, and unpacking operations.

As a registered Multimodal Transport Operator (MTO), the Company leverages its extensive industry expertise, robust partner network, and technology-driven processes to provide seamless and efficient logistics solutions tailored to the evolving requirements of diverse industries. Our integrated service model enables customers to optimize their supply chains, enhance operational efficiency, and achieve cost-effective movement of goods across geographies. Operating on an agile asset-light business model, Timescan Logisticsenjoyssignificantscalability, operational flexibility, and the ability to swiftly adapt to changing market dynamics. This approach allows the Company to expand service offerings, and deliver customized logistics solutions while maintaining efficiently capital efficiency and sustainable growth.

Driven by a clear strategic vision and a strong focus on continuous improvement, Timescan Logistics remains committed to strengthening its market position and expanding its service capabilities. The Company aspires to emerge as one of Indias most trusted and future-ready integrated transport and logistics utilities, facilitating seamless trade, enhancing supply chain efficiencies, and contributing to the nations economic growth through world logistics solutions.

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Indian logistics industry continues to be a critical pillar of the countrys economic growth, facilitating the efficient movement of goods across domestic and international markets. Driven by increasing trade activity, expanding manufacturing capabilities, rising e-commerce penetration, and growing consumer demand, the sector is undergoing significant transformation and modernization.

The Government of India continues to strengthen the logistics ecosystem through the implementation of the National Logistics Policy (NLP) and the PM Gati Shakti National Master Plan, aimed at improving multimodal connectivity, reducing logistics costs, enhancing operational efficiency, and promoting integrated infrastructure development. The increasing adoption of digital platforms such as the Unified Logistics Interface Platform (ULIP), coupled with advancements in technology-driven supply chain management, is enhancing transparency, visibility, and efficiency across logistics operations. transportation infrastructure, including Dedicated Freight Corridors (DFCs), highways, Significant ports, inland waterways, multimodal logistics parks, and warehousing facilities, are strengthening Indias logistics capabilities and enabling faster movement of cargo across the country. Government initiatives under Bharatmala, Sagarmala, and other connectivity enhancement programmes continue to support the development of an integrated and efficient logistics network.

The sector is also witnessing increasing demand for integrated logistics solutions, freight forwarding services, customs clearance, warehousing and distribution, and third-party logistics (3PL) services as businesses seek greater supply chain resilience, cost optimization, and operational agility. Furthermore, Indias emergence as a preferred manufacturing and sourcing destination is expected to generate sustained demand for advanced logistics and supply chain solutions.

Looking ahead, the Indian logistics industry remains well-positioned for long-term growth, supported by favorable government policies, continued infrastructure investments, digital transformation initiatives, and the increasing integration of domestic and global supply chains. These developments are expected to create significant opportunities for organized logistics service providers offering end-to-end and value-added logistics solutions.

Current Industry Landscape

During FY 2025-26, the Indian logistics sector continued to operate in a dynamic business environment influencedby evolving global trade patterns, changing customer expectations, and increasing demand for supply chain efficiency.

While international trade volumes remained resilient, the industry continued to navigate challenges arising from geopoliticaluncertainties,freightratevolatility,fuelpricefluctuations, and changing regulatory requirements across various jurisdictions.

The freight forwarding and transportation segments witnessed sustained demand from industries such as manufacturing, engineering, chemicals, pharmaceuticals, consumer goods, and e-commerce. Businesses increasingly sought logistics partners capable of providing integrated and flexible solutions that optimize costs, improve transit efficiency, and enhance supply chain visibility.

Customers are progressively moving towards consolidated service offerings encompassing freight forwarding, customs clearance, warehousing, multimodal transportation, and value-added logistics services through a single service provider. This trend is driving the growth of organized logistics companies with established operational capabilities, strong compliance frame works, and diversified

service portfolios.

The competitive landscape continues to evolve with increasing emphasis on service quality, technology-enabled operations, operational reliability, and customer-centric solutions. Logistics service providers are focusing on strengthening strategic partnerships, expanding service capabilities, and improving operational efficiencies to maintain competitiveness in a rapidly changing market environment.

Despite near-term uncertainties arising from global economic conditions and geopolitical developments, the long-term outlook for the Indian logistics industry remains positive. Growing trade activity, increasing manufacturing output, rising consumption levels, and the continued formalization of the logistics sector are expected to support sustained demand for integrated logistics and supply chain management services.

Against this backdrop, Timescan Logistics (India) Limited remains well-positioned to leverage its diversified service portfolio, asset-light operating model, industry expertise, and customer-centric approach to capitalize on emerging opportunities and support the evolving logistics requirements of its customers.

Key Industry Developments

The Indian logistics industry continued to witness significant transformation during FY 2025-26, driven by a combination of policy reforms, infrastructure expansion, technological advancements, and evolving global trade patterns. As Indias economy continued to grow and integrate further with global supply chains, the logistics sector played an increasingly important role in facilitating the efficient movement of goods and supporting industrial and commercial activity.

Government initiatives aimed at improving multimodal connectivity, reducing logistics costs, and enhancing ease of doing business continued to strengthen the overall logistics ecosystem. Simultaneously, increasing adoption of digital technologies, growing demand for integrated supply chain solutions, expansion of warehousing infrastructure, and the rising importance of supply chain resilience have reshaped industry dynamics and customer expectations.

The sector also benefited from increasing manufacturing activity, growth in domestic consumption, rising export-import trade volumes, and the continued expansion of e-commerce and organized retail. In response to these developments, logistics service providers have focused on enhancing operational efficiency, expanding service capabilities, leveraging technology-driven solutions, and adopting sustainable business practices to meet the evolving needs of customers. Key developments that influencedthe logistics industry during FY 2025-26 are outlined below:

1. Expansion of Multimodal Logistics Infrastructure

The Governments continued focus on integrated infrastructure development through PM Gati Shakti, Dedicated

Freight Corridors (DFCs), Bharatmala, Sagarmala, and Multi-Modal Logistics Parks (MMLPs) has strengthened connectivity across road, rail, air, and maritime networks. These initiatives are expected to improve cargo movement efficiency, reduce transit times, and lower logistics costs across the supply chain.

2. Accelerated Digital Transformation

Digitalization continued to reshape the logistics ecosystem through increasing adoption of real-time shipment tracking, digital documentation, data analytics, automation, and integrated logistics platforms. The growing utilization of digital initiatives such as the Unified Logistics Interface Platform (ULIP) is enhancing transparency, operational visibility, and supply chain efficiency.

3. Growth in Integrated Logistics and 3PL Services

Businesses are increasingly seeking end-to-end logistics solutions from a single service provider to optimize costs and improve operational efficiency. This has freight forwarding, customs clearance, transportation, warehousing, distribution, and value-added supply chain solutions, thereby driving growth in the Third-Party Logistics (3PL) segment.

4. Supply Chain Diversification and Resilience

Global supply chain realignments and evolving trade patterns have encouraged businesses to diversify sourcing and distribution networks. Companies are increasingly focusing on supply chain resilience through strategic inventory management, multimodal transportation, alternative trade routes, and stronger logistics partnerships to mitigate operational risks and enhance business continuity.

5. Rising Trade and Manufacturing Activity

Indias growing role as a global manufacturing and sourcing destination, supported by increasing exports, expanding industrial production, and favourable government initiatives, has generated sustained demand for freight forwarding, customs clearance, warehousing, and multimodal transportation services. The continued growth of cross-border trade remains a key driver for the logistics sector.

6. Expansion of Warehousing and Distribution Networks

The warehousing sector continued to witness strong growth driven by e-commerce expansion, organized retail, manufacturing activity, and demand for efficient inventory management. Investments in modern warehousing infrastructure, automation, and distribution networks are supporting faster order fulfillment and improved supply chain performance.

7. Increasing Focus on Sustainable Logistics

Sustainability has emerged as a strategic priority across the logistics industry. Companies are increasingly adopting fuel-efficient transportation, route optimization, multimodal transportation solutions, energy-efficient warehousing, and environmentally responsible operational practices aimed at reducing carbon emissions and improving resource utilization.

8. Evolving Customer Expectations and Service Excellence

Customers increasingly demand greater visibility, faster transit times, reliability, and customized logistics solutions. This has prompted logistics service providers to enhance service quality, strengthen technology capabilities, and offer flexible, customer-centric solutions to remain competitive in a rapidly evolving market environment. Overall, the logistics industry continues to benefit from supportive policy initiatives, infrastructure development, technological innovation, and growing trade activity, positioning the sector for sustained long-term growth.

SWOT ANALYSIS

The logistics sector continues to play a pivotal role in facilitating domestic and international trade by enabling the efficient movement of goods across supply chains. During FY 2025-26, the industry continued to benefit from accelerateddemandforintegratedlogisticsservicesencompassing increasing trade activity, growing manufacturing output, rising demand for integrated logistics solutions, and continued government focus on infrastructure development and logistics efficiency. At the same time, evolving global trade patterns, geopolitical uncertainties, freight rate fluctuations, and changing customer competitive landscape.

Against this backdrop, the Companys key strengths, weaknesses, opportunities, and threats are as follows:

STRENGTHS

1. Integrated Service Portfolio

The Company offers a comprehensive range of logistics services, including sea and air freight forwarding, customs clearance, multimodal transportation, warehousing, project cargo handling, and third-party logistics (3PL) solutions, enabling it to provide end-to-end supply chain solutions to customers.

2. Asset-Light Business Model

The Companys asset-light operating model provides operational flexibility, scalability, and capital efficiency, allowing it to adapt quickly to changing market conditions while maintaining cost competitiveness.

3. Industry Expertise and Customer Relationships

With extensive experience in the logistics sector, the Company has developed strong relationships with customers, shipping lines, airlines, transport operators, and other stakeholders, supporting consistent service delivery and customer retention.

4. Multimodal Logistics Capabilities

The ability to offer integrated transportation solutions across road, air, and sea modes enables the Company to efficiently manage diverse customer requirements and optimize supply chain operations.

5. Focus on Service Quality and Compliance

The Companys emphasis on operational excellence, regulatory compliance, and customer-centric services strengthens its reputation and enhances customer confidence.

6. Compliance and Process-Driven Operations

Strong emphasis on regulatory compliance and operational controls enhances business credibility and service reliability.

WEAKNESSES

1. Dependence on Third-Party Service Providers

As an asset-light logistics service provider, the Company relies significantly on external transportation providers, shipping lines, airlines, and warehouse operators, which may impact service availability and pricing.

2. Exposure to Freight Rate Volatility

Fluctuations in ocean freight, air freight, and transportation rates may impact margins and operational planning, particularly during periods of market uncertainty.

3. Intense Industry Competition

The logistics industry remains highly competitive, with the presence of both organized and unorganized players exerting pressure on pricing and market share.

4. Dependence on Trade Volumes

Business performance is closely linked to domestic and international trade activity, making the Company susceptible to economic slowdowns and changes in trade patterns.

5. Limited Control Over External Logistics Infrastructure

Port congestion, vessel delays, transportation disruptions, and infrastructure constraints may impact service delivery timelines.

1. Growth in Indian Logistics Sector

Increasing industrial activity, rising exports and imports, expanding e-commerce, and growing domestic consumption are expected to drive long-term demand for logistics and supply chain services.

2. Expansion of Third-Party Logistics (3PL) Services

Businesses are increasingly outsourcing logistics functions to specialized service providers, creating opportunities for growth in integrated logistics and supply chain management services.

3. Government Infrastructure Initiatives

Continued investments under the National Logistics Policy, PM Gati Shakti, Dedicated Freight Corridors, Bharatmala, Sagarmala, and multimodal logistics parks are expected to improve logistics efficiency and create new business opportunities.

4. Technology-Driven Logistics Solutions

Increasing adoption of digital platforms, automation, real-time tracking, and data analytics provides opportunities to enhance service quality, improve operational efficiency, and strengthen customer engagement.

5. Indias Emergence as a Manufacturing Hub

Growing manufacturing activity and supply chain diversification are expected to generate increased demand for freight forwarding, customs clearance, warehousing, and transportation services.

6. Growth in Cross-Border Trade and E-Commerce

Increasing international trade and expanding e-commerce activity are expected to support sustained growth in logistics demand.

THREATS

1. Global Economic and Geopolitical Uncertainties

Economic slowdowns, geopolitical tensions, trade restrictions, and disruptions in international shipping routes may adversely impact global trade volumes and logistics demand.

2. Regulatory and Compliance Risks

Changes in customs regulations, taxation policies, trade laws, and other regulatory requirements may increase compliance obligations and operational costs.

3. Freight and Fuel Cost Volatility in freight rates, fuel prices, and transportation costs may impact profitability Significant operational efficiency.

4. Supply Chain Disruptions

Natural disasters, port congestion, labour shortages, cyber threats, and geopolitical events may disrupt logistics operations and affect service delivery.

5. Competitive Pressure

Increasing competition from domestic and international logistics companies may result in pricing pressure and margin compression across service segments. strategiesadoptedbyglobal businesses

6. Technological and Cybersecurity Risks

Increasing dependence on digital systems exposes logistics operators to cybersecurity threats and data security risks.

The Company continuously monitors industry developments and market conditions while focusing on operational excellence, customer satisfaction, technology adoption, and prudent risk management to strengthen its competitive position and capitalize on emerging growth opportunities.

SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE

The Company is primarily engaged in the business of providing integrated logistics and supply chain solutions, including freight forwarding, customs clearance, multimodal transportation, warehousing, project cargo handling, and third-party logistics (3PL) services. These services are closely interconnected and are managed as a unified business operation.

During the year under review, the Company continued to strengthen its presence across various logistics service offerings by focusing on operational efficiency, customer service excellence, and expansion of its service capabilities.

Freight forwarding services, encompassing both sea and air freight operations, remained a key contributor to the Companys business. The Company also witnessed continued demand for customs clearance, multimodal transportation, and value-added logistics solutions from its diverse customer base.

The Companys integrated service approach enables it to provide end-to-end logistics solutions tailored to customer requirements, thereby enhancing customer retention and creating opportunities for cross-selling multiple services. The increasing demand for comprehensive supply chain management solutions and third-party logistics services continued to support the Companys business growth during the year.

As the Company operates predominantly in a single business segment, detailed segment-wise reporting is not applicable. The Companys performance is therefore evaluated on an overall basis considering the integrated nature of its logistics and supply chain operations.

OUTLOOK

The outlook for the Indian logistics industry remains robust, supported by favourable economic fundamentals, expanding manufacturing activity, increasing domestic consumption, and sustained growth in international trade.

The sector is expected to benefit from continued government focus on infrastructure development, multimodal connectivity, logistics digitization, and supply chain optimization initiatives aimed at improving Indias global competitiveness.

The implementation of the National Logistics Policy (NLP), PM Gati Shakti National Master Plan, Unified Logistics

Interface Platform (ULIP), Dedicated Freight Corridors, multimodal logistics parks, and other infrastructure enhancement initiatives is expected to further improve operational efficiency, reduce logistics costs, and strengthen the overall logistics ecosystem. These developments are creating a more integrated and technology-enabled framework for the movement of goods across the country.

The increasing adoption of integrated logistics solutions, growth in Third-Party Logistics (3PL) services, expansion of warehousing and distribution networks, and rising demand for end-to-end supply chain management services are expected to generate significant opportunities for organized logistics service providers. Furthermore, Indias emergence as a preferred manufacturing and sourcing destination, supported by supply chain diversification strategies and increasing export-oriented production, is expected to drive sustained demand for freight forwarding, customs clearance, multimodal transportation, and value-added logistics services.

Technology is expected to remain a key growth enabler for the industry, with increasing adoption of digital documentation, automation, artificial intelligence, data analytics, and real-time shipment visibility solutions. These advancements are expected to improve operational efficiency, enhance customer experience, and strengthen supply chain resilience.

At the same time, the industry continues to face challenges arising from geopolitical uncertainties, evolving trade regulations, freight rate fluctuations, cybersecurity risks, and changing customer expectations. Companies that can effectively combine operational excellence, technology adoption, service reliability, and customer-centric solutions will be better positioned to capitalize on emerging opportunities.

Against this backdrop, Timescan Logistics (India) Limited remains focused on strengthening its service capabilities, enhancing operational efficiency, expanding customer relationships, and leveraging its integrated logistics platform to drive sustainable growth. The Company believes that its diversified service portfolio, asset-light business model, industry expertise, and commitment to service excellence position it favourably to participate in the long-term growth opportunities within the logistics sector.

The Company remains confident of creating long-term value for its stakeholders while continuing to support the evolving logistics and supply chain requirements of its customers.

RISKS AND CONCERNS

The logistics industry operates in a dynamic and interconnected environment influenced by global trade economic conditions, regulatory developments, technological advancements, and evolving customer expectations. As an integrated logistics service provider, the Company is exposed to various risks that may impact its operations, financial performance, and growth prospects. The Company recognizes that effective risk management is critical for sustaining business continuity, operational resilience, and long-term value creation.

The Company has established a structured risk management framework to identify, assess, monitor, and mitigate potential risks. Through continuous evaluation of internal and external factors, the Company seeks to proactively address emerging challenges while strengthening its operational capabilities and governance practices.

The key risks and concerns affecting the Company and the logistics industry are outlined below:

1. Operational and Supply Chain Risks

The Companys operations are dependent on the efficient functioning of transportation networks, ports, airports, customs processes, warehousing facilities, and third-party service providers. Port congestion, vessel schedule disruptions, transportation bottlenecks, infrastructure constraints, labour shortages, natural disasters, and other unforeseen events may adversely affect service delivery, transit timelines, and operating costs.

2. Freight Rate and Fuel Price Volatility

The logistics industry remains susceptible to fluctuations in freight rates, fuel prices, transportation costs, and changes in these factors may impact profitability, pricing strategies, and customer carriercapacity.Significant demand patterns.

3. Global Trade and Geopolitical Risks

International logistics operations are influenced by global economic conditions, geopolitical tensions, trade restrictions, sanctions, armed conflicts, and changes in international trade policies. Such developments may disrupt supply chains, alter trade routes, increase transportation costs, and affect cargo volumes.

4. Regulatory and Compliance Risks

The Company operates in a highly regulated environment and is required to comply with various laws and regulations relating to customs, taxation, transportation, trade, environmental standards, data protection, and corporate governance. Changes in regulatory requirements or failure to comply with applicable regulations may result in penalties, increased compliance costs, and reputational impact.

5. Cyber security and Technology Risks

The increasing adoption of digital platforms, automated processes, and technology-enabled logistics solutions has enhanced operational efficiency but has also increased exposure to cyber security threats, ransomware attacks, data breaches, system failures, and technology disruptions. Any significant security incident business operations, customer confidence, and regulatory compliance.

6. Financial Risks

The Company is exposed to financial risks arising from foreign exchange fluctuations, credit risk, liquidity constraints, interest rate movements, and delayed customer payments. Effective financial management and monitoring mechanisms are essential to mitigate potential adverse impacts on cash flows and profitability.

7. Human Resource Risks

The logistics sector continues to face challenges relating to talent acquisition, employee retention, workforce productivity, and availability of skilled personnel. Failure to attract, develop, and retain qualified impact operational efficiency and service quality.

8. Environmental, Social and Sustainability Risks

Growing stakeholder focus on sustainability, climate change, carbon emissions, energy efficiency, and responsible business practices is increasing expectations from logistics companies. Adverse weather events, environmental regulations, and evolving ESG requirements may influence operational practices, compliance obligations, and investment decisions.

9. Competitive Risks

The logistics industry remains highly competitive, with the presence of large integrated logistics companies, global freight forwarders, regional operators, and unorganized market participants. Intense competition may lead to pricing pressure, margin compression, and challenges in customer acquisition and retention.

10. Reputational Risks

The Companys reputation is dependent on its ability to consistently deliver reliable services, maintain regulatory compliance, protect customer information, and uphold high standards of business conduct. Service disruptions, compliance failures, cybersecurity incidents, or adverse stakeholder perceptions may impact the Companys reputation and business relationships.

Risk Management Approach

The Company continuously monitors changes in the business environment and undertakes periodic risk assessments to identify emerging risks and opportunities. Through robust internal controls, compliance mechanisms, operational reviews, technology adoption, employee development initiatives, and strategic planning, the Company seeks to effectively manage risks while supporting sustainable growth and long-term value creation for all stakeholders.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has established a comprehensive internal control framework commensurate with the nature, scale, and complexity of its business operations. The internal control system is designed to ensure operational efficiency, safeguarding of assets, reliability of financial reporting, compliance with applicable laws and regulations, and effective management of business risks.

The Company has implemented well-defined policies, procedures, and control mechanisms across processes. These controls incorporate appropriate checks and balances, including authorization procedures, documentation standards, reconciliation processes, segregation of duties, and management reviews, to minimize operational, financial, and compliance risks while ensuring accuracy and integrity in business transactions. The internal control framework is designed to address risks associated with the achievement of the Companys professionals may strategic, operational, financial, and compliance objectives. The Company employs both preventive controls, aimed at reducing the likelihood of errors or irregularities, and detective controls, intended to identify and address exceptions on a timely basis. The framework is periodically reviewed to ensure its continued effectiveness in a dynamic business environment.

The Company continuously monitors the effectiveness of its internal controls through ongoing management reviews, periodic internal audits, compliance assessments, and process evaluations. The findings and arising from such reviews are examined by the management, and appropriate corrective actions are implemented wherever required. The Company remains committed to continuously strengthening its internal control environment in line with evolving business requirements, regulatory developments, and industry best practices.

Recognizing the increasing importance of digital technologies in business operations, the Company has also implemented appropriate information technology controls and cybersecurity measures to protect critical business information, ensure data integrity, and support operational continuity.

The Internal Auditor conducts periodic reviews of the adequacy and effectiveness of the internal control systems and processes.Significant along with management responses and corrective action plans, are presented to the Audit Committee for review and monitoring.

The Audit Committee, comprising Independent and Non-Executive Directors, provides oversight of the Companys financial reporting process, internal control systems, risk management framework, internal and statutory audit functions, and compliance mechanisms. The Committee periodically reviews internal audit findings, of internal controls, implementation of audit recommendations, and other governance-related matters to ensure the effectiveness of the overall control environment.

Based on the reviews conducted during the year, the management is of the opinion that the Companys internal control systems are adequate and operating effectively, providing reasonable assurance regarding the orderly and efficient conduct of business, safeguarding of assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records, and timely preparation of reliable financial information.

SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS

Particulars	Ratio as on 31st March, 2026	Ratio as on 31st March, 2025	Change in percentage of ratio as compared to previous year
Debtors Turnover Ratio	9.07	12.46	27.21% (Decrease)
Current Ratio	2.18	2.13	2.35% (Increase)
Operating Profit Margin	10.12	9.51	6.41 (Increase)
Net Profit Margin	2.15	2.27	5.29 (Decrease)

Notes:

1. The Debtors Turnover Ratio decreased by 27.21% during the year under review, primarily due to an increase in the average trade receivables outstanding. The higher receivable balance resulted in a comparatively longer collection cycle, leading to a decline in the ratio. The management continues to closely monitor receivables and strengthen collection efforts to maintain healthy working capital and improve cash flow efficiency. changes (i.e. change of 25% or more as compared to the immediately previous financial 2. Thereareno significant adequacyyear) in the other key financial ratios.

3. The Company is service-based industry. So, Inventory Turnover Ratio is not applicable to the Company.

DEVELOPMENTS IN HUMAN RESOURCES

The Company firmly believes that its people are its greatest strength and that sustained business growth is driven by a capable, committed, and future-ready workforce. Human capital continues to remain a strategic priority, and the Company is focused on creating an environment that promotes continuous learning, innovation, collaboration, and high standards of professional excellence.

During the year under review, the Company continued to strengthen its people practices by investing in employee capability development, performance enhancement, and leadership building. Learning initiatives were designed to improve technical expertise, functional knowledge, managerial effectiveness, and behavioural competencies, enabling employees to adapt to changing business requirements and industry developments.

The Companys talent management philosophy is centred on attracting, developing, and retaining competent professionals while providing equal opportunities for growth and advancement. Employees are encouraged to take ownership of their professional development through continuous learning, cross-functional exposure, and participation in knowledge-sharing initiatives that contribute to both individual and organisational success.

Creating an engaging and inclusive workplace continues to be a key area of focus. The Company fosters a culture of mutual respect, teamwork, transparency, and accountability, where employees are empowered to contribute ideas, embrace innovation, and deliver excellence. Open communication, recognition of performance, and employee engagement initiatives have further strengthened collaboration across the organisation.

The Company also places significant emphasis on employee well-being, workplace safety, and maintaining the highest standards of ethics and integrity. Regular awareness programmes and policy orientations are conducted to reinforce compliance with the Companys Code of Conduct, applicable laws, and corporate governance practices.

The organisation continues to provide a safe, healthy, and respectful work environment that supports employee welfare and productivity.

Industrial relations remained cordial throughout the year, reflecting the Companys commitment to maintaining harmonious relationships with its employees. As on 31 March 2026, the Company had 88 employees, including 5 Key Managerial Personnel, whose dedication, professionalism, and collective efforts continue to play a pivotal role in achieving the Companys strategic objectives and creating sustainable value for all stakeholders.

CAUTIONARY STATEMENT

The statements contained in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations, or predictions may constitute forward-looking statements within the meaning of applicable laws and regulations. These statements are based on certain assumptions, expectations, and estimates of future events, which, though considered reasonable by the management, are inherently subject to various risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied.

The Companys performance is influenced by several internal and external factors, including but not limited to changes in economic conditions, market demand and supply dynamics, freight and logistics trends, customer requirements, competitive pressures, regulatory and policy changes, taxation laws, foreign exchange fluctuations, geopolitical trends, technological advancements, and other risks beyond the Companys control. developments,

Readers are advised not to place undue reliance on these forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required under applicable laws and regulations.

The forward-looking statements contained herein should be read in conjunction with the risks, assumptions, and other disclosures forming part of the Management Discussion and Analysis and the Annual Report of Timescan Logistics (India) Limited for the financial year 2025-26.

For and on behalf of the Board of Directors of
Timescan Logistics (India) Limited

Moulana Taufeek Islam	Sundarraj Arunkumar
Managing Director	Whole-time Director
DIN: 02125126	DIN: 07985890

Date: September 01, 2026
Place : Chennai