Transport Corporation of India Ltd Management Discussions

Gl obal Economic Outlook

The global economy is navigating a challenging phase marked by easing inflationary pressures and emerging trade tensions. Major central banks— including the US Federal Reserve (US Fed), European Central Bank (ECB) and Reserve Bank of India (RBI)— have initiated monetary policy easing through interest rate cuts, signaling a shift towards supporting growth. However, the reintroduction of tariff barriers under the Trump administration in the US has introduced new uncertainties into the global trade environment.

According to the IMFs April 2025 World Economic Outlook, global real GDP growth is projected at 2.8% for 2025 and 3% in 2026, down from an earlier estimate of 3.3% for both the years. This downward revision reflects the impact of recent trade tensions and policy uncertainties. Global headline inflation is expected to decline to 4.3% in 2025 and further to 3.6% in 2026, with advanced economies returning to their inflation targets sooner than emerging markets. Easing supply chain pressures, reduced energy prices and tighter monetary policy are all contributing to this disinflation trend.

Volatility in energy and food prices continues to pose upside risks to inflation. Geopolitical conflicts— have driven fluctuations in global oil and gas prices, especially across Europe. However, these pressures are being offset by subdued consumer demand, continued weakness in Chinas real estate sector and a broadly dovish growth outlook for the Chinese economy.

Amid ongoing trade tensions and financial market sensitivity, the global outlook remains cautiously optimistic. The US leads among advanced economies, driven by robust consumer spending and AI-led productivity gains, while Europe, China and Japan face slower recoveries due to structural headwinds. A potential rebound in global merchandise and services trade offers a path toward broader, more resilient economic expansion.

India stands as a beacon of hope amidst these turbulent times

Indias contribution outpaces that of advanced economies and even China, underscoring its rising geopolitical and economic clout.

Indias Contribution to world real GDP is expected to rise for 3.6% in 2023 to 4.5% in 2030 .

Indian Economic Outlook

The Indian economy has demonstrated sustained resilience in the face of global macroeconomic headwinds and an uncertain policy environment. Robust infrastructure development, healthy domestic demand, favourable monsoon conditions and sustained government spending have reasonably contained the high domestic inflationary pressures. This environment led RBI to reduce the benchmark interest rates twice in 2025: a 25-basis point cut in February, bringing the repo rate from 6.50% to 6.25%, followed by another 25-basis point cut in April, lowering it to 6.00%. The April cut also marked a shift in RBIs monetary policy stance from neutral to accommodative, signalling a readiness to support growth further.

Retail inflation in India, as measured by the Consumer Price Index (CPI), fell to 4.6% in FY 2024-25—the lowest level since 2018-19. This milestone reflects the effectiveness of the RBIs calibrated, pro-growth approach to monetary policy, which has managed to strike a delicate balance between fostering economic momentum and maintaining price stability.

As per the Second Advance Estimates of Annual Gross Domestic Product for 2024-25 published in February 2025, the Real GDP for FY 2024-25 is expected to register a growth rate of 6.5%, as against the same at 9.2% in FY 2023-24. The sectors that contributed the most to Real GDP growth in FY 2023-24 have been Manufacturing (12.3%), Construction (10.4%) and Financial, Real Estate & Professional Services (10.3%). While the Construction and Financial, Real Estate & Professional Services sectors are expected to continue their ascent northward in FY 2024-25 at 8.6% and 7.2% respectively, the manufacturing sector may lag at the growth rate of 4.3%. The Private Final Consumption Expenditure (PFCE) is expected to register growth of 7.6% during FY 2024-25 as compared to that of 5.6% in FY 2023-24.

With growth projected to nearly double by FY 2030, India is set to become the 3rd largest economy

Source: S&P Global Indin Forward Emerging Perspectives

Indias total exports (merchandise and services) for FY 2024-25 are estimated at US$ 820.93 Bn, marking a 5.5% growth over US$ 778.13 Bn in FY 2023-24. This rise reflects the countrys increasing integration with global trade networks, despite persistent challenges such as tariff uncertainties and geopolitical tensions. Merchandise exports reached US$ 437.42 Bn, registering a modest growth of 0.08% over US$ 437.07 Bn in FY 2023-24.

Gross FDI inflows in the country rose by 12.4% on a year-on-year basis, rising to US$ 67.7 Bn during April 2024 to January 2025 from US$ 60.2 Bn in the same period in FY 2023-24, denoting continued investor confidence in Indias economic prospects. In a nutshell, prudent fiscal policies, subdued yet stable domestic consumption, as well as corporate growth earnings, India is expected to find its anchor amid the turbulent global economic weather.

Global Logistics Industry

The global logistics industry market size is expected to have reached US$ 11.23 Tn in 2025. It is estimated to attain the size of US$ 23.14Tn by 2034, demonstrating a CAGR of 8.36% between 2025 and 2034. This momentum is being driven by the accelerated rise of e-commerce, widespread digital adoption, evolving customer expectations and ongoing investment in infrastructure and supply chain resilience. The Asia Pacific region, accounting for 44.59% of the global market, remains the epicenter of logistics activity—fueled by its manufacturing dominance, high surface freight volume, rapid adoption of IoT and automation and increasing focus on electric mobility and green energy. As global supply chains face disruptions from trade volatility, geopolitical shifts and climate risk, the industry is being reshaped by the need for agility, predictive technologies and seamless last-mile delivery models that can balance cost, speed and sustainability.

Logistics Sector in Middle East

The Middle East logistics market reached US$ 250.0 Bn in 2024 and is projected to grow at a CAGR of 5.57%, reaching US$ 407.1 Bn by 2033. With sustainability as a major focus, the green logistics market in the GCC projected to grow from US$ 29.3 Bn in 2024 to US$ 76.8 Bn by 2033.

According to IMARC Group, the Middle East logistics industry is undergoing a decisive shift—from traditional trade facilitation to becoming a high-tech, globally integrated logistics hub. With nations like the UAE, Saudi Arabia, Qatar and Oman at the forefront, the region is leveraging its geostrategic location to bridge Asia, Europe and Africa, while pushing forward national visions like UAE Vision 2050 and Saudi Vision 2030.

Massive investments in multimodal infrastructure— including smart ports, AI-driven cargo hubs, high-speed rail networks and logistics cities—are transforming regional logistics into an engine of economic diversification. The UAE is leading with digitized ports, drone-ready urban logistics systems and autonomous delivery trials, while Saudi Arabia is building the worlds largest solar-powered logistics hub within NEOMs OXAGON. Green logistics, EV-enabled freight corridors and hydrogen mobility pilots further signal the regions pivot toward sustainability-driven logistics.

0 Sources: ASCELA Investment Insights 2025

Logistics Sector in India

Indias logistics industry is in the midst of a transformation—poised to grow from US$ 317 Bn in 2024 to over US$ 480 Bn by 2029, at a projected CAGR of 8-10% (India Infrastructure Research, 2024). This growth is being fueled by the rapid expansion of manufacturing, rising consumption patterns and accelerating digital commerce. Government policy reforms, infrastructure development and emerging technologies are reshaping the sector into a strategic pillar of the Indian economy.

Indias nominal Gross Value Added (GVA) for FY 2024-25 is driven by the services sector (55%), but the manufacturing (25.2%) and agriculture (19.8%) sectors remain critical to achieving balanced growth. These sectors rely heavily on a seamless, cost-effective logistics ecosystem to ensure competitive production and timely delivery—both domestically and globally. As per Mordor Intelligence, manufacturing alone accounts for 30% of total logistics demand in 2024, highlighting the urgency for robust supply chain solutions.

Milesto nes for Indian Logistics in 2024

Also, Shri Surendra Ahirwar, Joint Secretary, DPIIT, Ministry of Commerce and Industry, Government of India has thrown light on key developments in Indias logistics sector through government initiatives and digital transformation in the same issue.

Indirect Growth Booster for the Logistics Sector under PLI Scheme:

• Under the Product Linked Incentive (PLI) Schemes, India attracted investments of 1.46 Trillion (US$17.5 Bn), generated production/sales worth 12.50 Trillion (US$150 Bn)and exported goods valued at 4 Trillion (US$48 Bn)

• Generated direct and indirect employment for 950K individuals

• Incentives disbursed till FY 2023-24 amounted to 90,721 Mn

• Over 1,300 manufacturing units established across 14 sectors

Policy Initiatives Driving Positive Transformation in the Logistics Sector:

• Over 200 projects for improving logistics infrastructure, worth 50,496 Mn. recommended by the States

• Over 115 Indian universities offer logistics courses, adding programs in multimodal logistics and supply chain management

• MoU signed with Gati Shakti Vishwavidyalaya

• Centre of Excellence (CoE) for City Logistics set up at SPA (School of Planning and Architecture), Bhopal on 8th May 2024 and 100+ officials trained

• Collaboration between DPIITs Logistics Division and the Logistics Sector Skill Council led to seven qualification packs used by skill development institutions under initiatives like PM Kaushal Vikaas Yojana

• The release of the "Logistics Ease Across Different States (LEADS) 2024" report by Union Minister of Commerce & Industry, Shri Piyush Goyal, in January 2025. This report recommends a Longevity, Efficiency and Effectiveness, Accessibility and Accountability and Digitalization (LEADS) framework adoption by the states to transform the logistics sector

• Logistics Data Bank (LDB), a key initiative and a single-window container logistics visualization system under NICDC Logistics Data Services Ltd. (NLDSL), has successfully tracked over 75 Mn EXIM containers

• Service Improvement Group (SIG), an inter-ministerial consultative group constituted for resolving systemic issues related to the logistics sector formed under National Logistics Policy 2022

• Sectoral Plans for Efficient Logistics (SPEL) to bring logistics efficiency across various sectors are being prepared under the National Logistics Policy 2022. While SPEL for coal and cement sector have been finalized, SPEL for Food and Public Distribution, Food Processing Industry, Pharma, Fertilizers and Steel sector are under preparation.

The cold chain segment is growing rapidly, driven by rising demand from agriculture, pharmaceuticals, cloud kitchens and e-pharmacies. Simultaneously, third-party logistics (3PL) solutions are becoming critical for e-commerce and omni-channel retail—especially in Tier II and III cities—driven by rising expectations for same-day and last-mile deliveries.

Challenges faced by the Indian Logistics Sector

• Fragmented Supply Chain and existence of numerous small-scale players lead to disjointed, incoherent functioning of the industry as against a unified whole which makes adoption of technologies and standardization in services difficult

• Indias vast geographic terrain, inadequate roads infrastructure, especially in the rural hinterlands, creates issues of last-mile connectivity and results in higher cost of logistical operations and wastage of resources

• Though improving gradually, the policy environment surrounding direct taxes, GST, budgetary allocations and implementation needs further streamlining to ensure smooth governance and swift implementation bearing results

• Security concerns with regards to safety of physical goods, online transactions and the personnel involved exist still at large within the Indian logistics industry. Logistics industry continues to grapple with threats such as natural or man-made disasters, cyber criminals, pilferage and wastage

• Lack of qualified human resource competent enough to grasp and implement the industry-specific operations and safety standards, latest regulatory requirements and state-of-the-art technology creates an impediment for the enhanced performance of Indian logistics sector

Government Initiatives

The logistics sector in India is undergoing a vigorous makeover to match the strengths of its global peers in advanced economies, underpinned by sound, well-structured and effectively executed government policies. As the fifth largest economy in the world, these concerted moves by the GoI have been paving a path of success for the logistics industry, its participants and the nation as a whole, building a robust capability to position India as the global manufacturing hub and align favorably with the winds of change blowing in the international trade scenario.

• Provisions in the Union Budget 2025-26

• Bharat Trade Net (BTN)

• Pradhan Mantri Gati Shakti National Master Plan (PM Gati Shakti NMP)

• National Logistics Policy (NLP) and Comprehensive Logistics Action Plan (CLAP)

• Developments under the aegis of the Ministry of Road Transport and Highways in FY 2024-25

• Transformative initiatives by the Ministry of Ports, Shipping and Waterways in FY 2024-25

• Progress and initiatives led by the Ministry of Railways in FY 2024-25

• Dedicated Freight Corridors

• Multimodal Logistics Park

• Parivahan Portal

• The E-way Bill system

• Logistics Efficiency Enhancement Programme (LEEP)

• Logistics Data Bank (LDB)

• Unified Logistics Interface Platform (ULIP)

• Bharatmala

• Pradhan Mantri Grameen Sadak Yojana

• Sagarmala

• Jal Vahak: Inland Waterways Cargo Promotion Scheme

• ICEGATE portal

• Open Network for Digital Commerce

• National Green Hydrogen Mission

• Zero-Emission Trucking (ZET) in India

• Asian Development Banks SMILE Initiative

• Mission LiFE

Driving Logistics Forward with Digital Intelligence

The Indian logistics and supply chain industry is undergoing a profound technological transformation, driven by the imperative to enhance efficiency, transparency and resilience. Valued at US$ 317 Bn by 2024, the sector is projected to cross US$ 480 Bn by 2029, growing at a CAGR of 8%-10%. Digital innovation has emerged as a core enabler of competitiveness, with increased investments in AI, IoT, blockchain and automation. Technologies like realtime tracking, predictive maintenance and digital twins are also enhancing safety and compliance, redefining

logistics as a more agile, data-driven and customercentric ecosystem.

In tandem with this digital shift, physical infrastructure is also evolving to meet the sectors growing demands. Key logistics hubs like Chennai, Mumbai, Pune and NCR are set to expand in 2025 with new multimodal parks and fulfilment centres. To harness this momentum, there is a growing push for greater adoption of cutting- edge technologies and robust safety protocols across physical, digital and human touchpoints.

Digitalization in Logistics

Digitalization in Logistics 4.0 is the application of pillar technologies such as big data and AI analytics, digital twins, robots, cybersecurity and IloT in logistics business processes for increased efficiency, cost reduction and heightened customer satisfaction.

Future horizon of digital initiatives

These digital technologies have a protracted adoption timeline, with each technology taking its own time to mature and get implemented. The impact of adopting these digital technologies can be assessed from the Whitepaper by the World Economic Forum. The emerging digital technologies can be categorized in 4 Key categories and "Logistics Value at Stake" for each innovation can be calculated - both from the perspective of the Logistics Industry and well as the society as a whole.

Enterprise Information Systems (EIS)

Integrated Information systems - a larger variant of the erstwhile ERP systems are the digital backbone of logistics, integrating procurement, inventory, finance and customer service. With the global market expected to exceed US$ 70 Bn by 2030, adoption is rising—especially in India, where businesses report up to 20% higher efficiency and 15% cost savings. The significance of magnifies in the context of fast moving digital adoption of B2B market places supported by improving digital infrastructure like the digital payments ecosystem, Open Network for Digital Commerce (ONDC) and Open Credit Enablement Network (OCEN).

Especially given the expansive MSME sector in India, offer real-time data flow and easy integration with client, supplier and government systems, streamline operations, boost transparency and ensure compliance—making them vital for agile, customer-centric supply chains.

AR, VR & XR in Logistics

Augmented Reality (AR), Virtual Reality (VR) and Extended Reality (XR) are transforming logistics by enhancing efficiency, safety and training. AR enables real-time navigation and hands-free picking through smart glasses, while VR reduces training time by up to 40% and errors by 30% via immersive simulations. XR takes this further by enabling gesture-controlled operations in smart ports, allowing remote crane handling and real-time cargo synchronization—making logistics safer, more agile and human-centric.

Robotics in Logistics

The logistics industry is undergoing a significant transformation, driven by the integration of robotics. As of 2025, the global logistics robotics market is valued at approximately US$ 11.87 Bn and is projected to reach US$ 44.56 Bn by 2034, growing at a CAGR of 15.88%. This surge is fueled by the increasing demand for automation in warehousing and distribution, aiming to enhance efficiency, accuracy and scalability in operations. Key robotic technologies revolutionizing logistics include Automated Storage and Retrieval Systems (AS/RS), Autonomous Mobile Robots (AMRs) and Automated Guided Vehicles (AGVs).

Autonomous Mobile Robots

AMRs are self-navigating robots equipped with sensors and AI algorithms, enabling them to move materials within warehouses without fixed paths. The global AMR market was valued at US$ 3.96 Bn in 2024 and is projected to surpass US$ 29.66 Bn by 2034, growing at a CAGR of 22.30%. Their flexibility and adaptability make them ideal for dynamic environments, enhancing order fulfillment speed and accuracy.

Automated Guided Vehicles

AGVs are mobile robots that follow predefined paths to transport goods within facilities. In 2024, the global AGV market was valued at US$ 5.27 Bn and is anticipated to reach around US$ 12.99 Bn by 2034, with a CAGR of 9.44%. AGVs are instrumental in streamlining material handling processes, reducing manual labor and enhancing operational safety.

Automated Warehousing

Rapid growth in quick-commerce is fueling demand for AI-driven, hyper-personalized warehousing— expanding beyond groceries to other segments. To meet faster delivery timelines, logistics players are adopting tech-enabled micro-fulfilment centers, predictive inventory tools and automation solutions.

Over the past decade, Indias warehousing sector has progressed significantly, shifting largely from Level 1 to Level 2 automation. This evolution is expected to continue, with a growing move toward Level 3 automation, driven by business imperatives such as improving service levels (e.g., higher throughput rates) and optimizing costs (e.g., better storage efficiency per unit of land area).

Maturity of technology adoption in the warehousing sector

Automated Storage and Retrieval Systems (ASRS)

AS/RS are computer-controlled systems designed to automatically place and retrieve loads from defined storage locations. In 2025, the global AS/RS market is estimated at US$ 10.65 Bn, with expectations to reach approximately US$ 21.28 Bn by 2034, reflecting a CAGR of 7.99% . These systems optimize warehouse space utilization, reduce labor costs and improve inventory management by minimizing human intervention in storage and retrieval processes.

BlockChain, loT and Sensor Technology

Blockchain enhances transparency and traceability across supply chains by providing a secure, decentralized ledger for recording transactions. This technology reduces fraud, streamlines operations and ensures data integrity among stakeholders.

These tools are embedded in the transport vehicles and storage facilities. They enable monitoring and maintaining temperature in real time, real-time tracking of shipments, especially perishable or sensitive goods such as dairy products, meat or chemicals and pharmaceuticals. Real-time monitoring of operating and environmental conditions, such as different road conditions, is possible and reduces the chances of damage to the load.

Digital S imulation/Digital Twin

Digital Twin is a digital model that virtually recreates the physical processes and systems of a physical warehouse through real-time simulation. This enables identifying and rooting out inefficiencies in the operations and ensures better optimization and inventory and supply chain management.

Agentic AI

Agentic AI refers to a class of AI systems that can autonomously plan, make decisions and take actions to achieve a specific goal—often by chaining together tools, APIs, or reasoning steps. It is a framework that integrates large language models (LLMs) with external data sources, enabling the development of intelligent applications for supply chain management. It facilitates realtime decision-making and process automation. It goes beyond passive language generation and behaves more like an intelligent agent.

Autonomous Supply Chain Agents

> Monitor shipment statuses across geographies

> Re-plan routes in real time based on weather or congestion

> Automatically update customers and suppliers

> Impact: Minimises delays and improves supply chain visibility

Smart Inventory Managers

> Forecast demand using real-time and historical data

> Trigger procurement or redistribution actions without human input

> Optimise stock levels across multiple warehouses J Impact: Reduces stockouts and inventory carrying costs

Automated Documentation & Compliance

> Read, interpret and generate shipping documents (e.g., invoices, BoLs, customs declarations>

> Check compliance with local trade regulations

> Impact: Saves legal and admin time and reduces risk of penalties

> Improved operational efficiencies

AI Logistics Planners

> Design end-to-end supply routes

> Choose optimal carriers

> Simulate what-if scenarios for contingency planning

> Impact: Drives faster, smarter logistics planning with minimal manual oversight

Multimodal Coordination Agents

> Coordinating between sea, air and road transport

> Adjusting ETAs and rebooking shipments autonomously ) Impact: Enables seamless intermodal logistics

Safety in Logistics

In todays interconnected logistics landscape, safety is paramount—both on the ground and in the digital realm. Physically, logistics operations face risks ranging from accidents during transportation and warehouse handling to theft and hazardous material exposure. Digitally, the rise of smart logistics and data-driven systems introduces threats like cyberattacks, data breaches, and system disruptions. Ensuring safety means implementing rigorous protocols, training personnel, and investing in secure technologies.

Data Breaches involving sensitive customer information, financial records and intellectual property

Operational Disruption! to essential systems like transportation, warehousing and communications, which can result in costly delays

Reputational Harm that undermines customer trust and longstanding business relationships

A resilient logistics network safeguards not only goods and infrastructure but also the trust of customers and partners, making safety a strategic priority across every link of the supply chain.

Advanced Driver- Assistance Systems (ADAS)

ADAS leverage cameras and sensors to detect realtime hazards, enabling protective driving and reducing accident risks.

Truck Simulators & AI-Driven

Assessments

Simulators enhance driver skills through realistic training, while AI-enabled 360? cameras assess performance, minimizing human error and boosting road safety.

(Video Telematics & In-Vehicle Cameras

In-cabin cameras record driving footage, which is analyzed to detect unsafe behavior like drowsiness, distraction and harsh maneuvers. Vision-based technologies, combined with features like Forward Collision Warning (FCW), empower drivers to respond swiftly to potential risks. Footage also aids in accident reconstruction and targeted training. Insights from in-vehicle cameras are used to deliver in-cabin audio coaching, helping drivers improve in real time and avoid unsafe practices.

Driver-Monitoring Systems

These systems track driver behavior, monitoring for signs of fatigue, distraction and seat-belt usage, prompting immediate corrective actions when needed.

General Safety in Transportation

Safety begins with rigorous vehicle maintenance, secure loading and adherence to regulations. Technologies like GPS tracking and telematics ensure real-time monitoring, operational efficiency and higher safety standards.

Safe Warehouse Operations

Comprehensive safety protocols—including correct storage practices, usage of equipment such as forklifts and pallet trucks (HPT), regular equipment maintenance, PPE use and employee training—are essential for incident-free warehouse environments.

Environmental Sustainability in Logistics

Early adopters of environmental sustainability in the logistics sector stand to gain significant competitive advantages, as highlighted in BCGs Green Growth Accelerators report. These include early access to emerging green markets, stronger brand loyalty and improved regulatory readiness—critical in a sector facing increasing scrutiny over emissions. For logistics companies, embracing sustainability not only enhances operational efficiency and resilience through optimized energy and resource use, but also attracts eco-conscious clients and top talent. As the industry shifts toward zero-emission transport and circular supply chains, early movers can shape standards, influence policy and secure long-term growth in a rapidly evolving market landscape.

Lock up low carbon supply or create supply with material advantage

Gain reputational value for being the first mover in net-zero and nature positive

Lower cost of capital and improved financing access as investment in green businesses increases

Lower operational cos1 as most carbon reduction efforts consistent with cost reductions

Mitigate transition and physical risk from climate change and ecosystem collapse and strengthen license to operate

Drive higher market valuations with higher premium for companies with best sustainability metrics

Management of Reverse logistics with more focus on EPR commitments

Reverse Logistics is a newly emerging concept out of the trade practices of e-commerce and quick commerce sector where the products for returns and exchanges have to be sourced back from the customer i.e. point of consumption through the supply chain to the point of origin i.e. the vendor. Management of reverse logistics requires efficient and timely collections in order to reduce wastages.

Adoption of circularity crucial to manage Indias material consumption and 780-840 Mn Tonnes of annual waste generation

Extended Producer Responsibility (EPR) is an environment-oriented policy where the producer is held accounta the entire life cycle of the products, including post-consumption waste management. Here, the logistics com become integral partners in the process of developing reverse logistics mechanisms to collect the waste bac the consumer and recycle it in association with the producer.

Decarbonization of Logistics

Indias logistics sector contributes about 13.5% of the countrys total greenhouse gas (GHG) emissions. Road transport dominates, managing nearly 90% of passenger and 65% of freight movement and accounts for over 88% of sectoral emissions, trucks alone contribute around 38% of CO2 emissions (IEA, 2023). Domestic aviation contributes about 4% to emissions, while coastal and inland shipping emit less than road freight. Warehousing also adds significantly due to high energy use. The government plans to triple inland waterway traffic and increase coastal shipping by 1.2 times by 2030, risking higher emissions if not managed sustainably.

Carbon Emission Tracking

Recent developments in carbon emission tracking in Indias logistics sector are increasingly influenced by global frameworks and strategic insights from leading think tanks and consulting firms. McKinsey & Company, in collaboration with the World Economic Forum (WEF), has emphasized the importance of a standardized book-and-claim framework and green supply-chain coalitions to accelerate decarbonization in freight transport. These mechanisms allow shippers to invest in low- carbon logistics even when physical alignment with green assets is not feasible, thereby creating a market for sustainable transport offerings.

A rapidly increasing number of companies are taking action to reduce supply chain emissions.

Share of Scope 3 (indirect, mainly supply chain-related) emissions across sectors1 % of total Scope 1-3 emissions, 2021

96% of companies with approved science- based targets have targets covering scope 3 emissions

Bain & Company highlights digital tracing as a transformative tool for logistics, enabling companies to track emissions across the supply chain, optimize operations and certify sustainability claims. This approach not only supports carbon tracking but also enhances supply chain resilience and efficiency. These insights align with Indias broader policy goals under the National Logistics Policy and PM Gati Shakti, which aim to integrate multimodal transport and digital infrastructure to reduce the sectors carbon footprint.

Zero Emission Trucking

Recognizing the need to shift towards net-zero carbon emissions as a part of their social and environmental responsibility, many logistics and supply chain businesses, FMCG players and E-commerce ventures are moving towards Zero Emissions Trucking (ZET). Major Original Equipment Manufacturers (OEMs) are ramping up their production of electric Medium-Duty Trucks (MDTs) and Heavy-Duty Trucks (HDTs) under their plans for the electrification of their fleet to meet the growing demand.

Production of a range of MDTs and HDTs capable of accommodating various duty cycles and operational requirements is underway to cater to the unique requirements of the Indian freight businesses. For the successful deployment of ZETs in India, an entire ecosystem of deployment of such vehicles in high-density road freight clusters, shared charging and refueling as well as vehicle servicing mechanisms should be created to benefit multiple corporate, transport and government stakeholders.

Green Warehousing

According to Grant Thorntons report "Evolving Landscape of Warehousing and Logistics in India", the Indian warehousing market is projected to reach $ 34.99 Bn ( 2,872.10 Bn) by 2027, growing at a CAGR of 15.64% between 2022 and 2027. This growth is driven by the booming e-commerce sector, proactive government initiatives and accelerated tech adoption. Among metro markets, Mumbai, Bengaluru and Kolkata emerged as hotspots, registering the highest demand for warehousing space, driven by increased consumption, last-mile delivery needs and strategic infrastructure development. There has been a 16% y-o-y growth for Grade A and B warehousing stock across the top eight cities in India.

Traditional warehouses, while essential to supply chains, often pose sustainability challenges. As India progresses toward its renewable energy targets, the logistics industry is rapidly embracing green transitions. Warehouses are evolving into dual-purpose facilities—serving both as energy-efficient storage hubs and small-scale energy generation units. Technologies like rooftop solar panels, wind turbines in high-speed zones and hydro systems near water sources can generate clean energy to power operations, store for future use, or sell to the grid, creating additional revenue.

Real-time inventory systems can also enhance the management and distribution of this renewable energy. A similar industrial version of the governments PM-Surya Ghar Muft Bijli Yojana could further incentivise rooftop solar adoption in logistics. The push for sustainable warehousing is gaining global traction, supported by certifications from IGBC, LEED and IFC Edge. These frameworks encourage low-impact, energy-efficient infrastructure, making green warehouses a key driver of environmental performance and long-term value in the supply chain sector.

Key features of a green warehouse include:

Factors driving adoption of green warehouses in India

Compared to conventional facilities, green warehouses offer significant reductions in energy and water consumption, lower embodied carbon and long-term cost savings, while contributing meaningfully to Indias sustainability goals.

Carbon Markets and Logistics

Indias carbon market is undergoing a significant transformation, with the government formalizing a compliance- based carbon trading system under the Carbon Credit Trading Scheme (CCTS). This marks a shift from the earlier voluntary mechanisms to a regulated market aimed at aligning with Indias net-zero goals by 2070. According to the World Economic Forum, this development is crucial for sectors like logistics and manufacturing, which are among the highest emitters and stand to benefit from carbon pricing mechanisms that incentivize cleaner operations.

For manufacturers and logistics providers, the carbon market offers both a challenge and an opportunity. Companies that proactively decarbonize their operations can unlock new revenue streams through the sale of surplus carbon credits, while also gaining a competitive edge in global supply chains increasingly governed by ESG standards. Moreover, as per estimates, Indias growing manufacturing base -- projected to rise from 16% to 25% of GDP by 2030—must integrate carbon tracking and trading into its operational strategy to remain globally competitive. These developments underscore the strategic importance of carbon markets in driving sustainable industrial growth.

Toy manufacturing

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With the Gols Make in India policy, the toy manufacturing industry in India has received a new boost. This industry, dominated by Micro, Small and Medium Enterprises (MSMEs) and cottage industry players and concentrated in geographically dispersed clusters across the length and breadth of the country, is worth approximately US$1.5 Bn. Due to this unique manufacturing landscape, there is a need for effective logistics support such small manufacturers to cater to the domestic and global market demand. The logistics services for this sector need to be flexible, affordable and dependable, catering to their niche requirements such as a Less-than-truckload (LTL) for small to medium loads and Full-truckload (FTL).

Evolving Growth Sectors

TCI constantly evolves its services portfolio to stay ahead of the curve by embracing innovative technologies and crafting bespoke solutions. Identifying high-growth sectors that have the potential to boost the Indian manufacturing sector, TCI seeks to shape its services to the niche requirements so as to create a dynamic business organization that stands at the forefront of Indias rapidly changing economic landscape while creating lasting value for our extended stakeholder community.

Cold chain logistics

The growing prominence of organized retail, quick commerce, QSRs, farm-to-fork models and online pharma has sharply increased demand for integrated cold storage infrastructure across India. Acting as vital middle mile links between central hubs and local delivery points like dark stores, cold storage facilities ensure timely, high-quality delivery of perishables. These Grade A warehouses and refrigerated vehicles support temperature-sensitive goods such as dairy, meat, pharmaceuticals and fresh produce. Businesses in Tier I cities like NCR, Mumbai, Bengaluru and Tier II cities like Ahmedabad, Lucknow and Patna increasingly rely on 3PL providers for specialized cold chain logistics.

Cosmetics & Beauty Products Industry

Indias cosmetics and beauty products industry has experienced a dynamic transformation, driven by rising disposable incomes, digital penetration and a shift in consumer preferences toward self-care and wellness. According to the India Brand Equity Foundation (IBEF), the industry is projected to grow at a CAGR of 25%, reaching $20 Bn by 2025, with India poised to become one of the top five global markets by revenue. This growth is fueled by increasing demand for specialized products such as organic, herbal and ayurvedic cosmetics, as well as a surge in aspirational consumption patterns among younger demographics.

Management consulting firms and think tanks have highlighted the strategic evolution of the sector. Grand View Research reports that the Indian cosmetics market generated $22.7 Bn in 2023 and is expected to reach $40.7 Bn by 2030, growing at a CAGR of 8.7% from 2024 onward. Meanwhile, Statista notes that India now ranks fourth globally in revenue generation from the beauty and personal care (BPC) market, with the industry becoming an essential part of daily life rather than being reserved for special occasions. This shift is also reflected in the rise of D2C (direct-to-consumer) beauty brands and the increasing influence of social media and influencer marketing in shaping consumer choices.

Electronics & Component Manufacturing

The Government of India, through its National Policy for Electronics (NPE) 2019, has identified the electronics industry as a strategic growth sector. Driven by initiatives like smart cities and rural electrification, domestic demand for products such as smartphones, solar panels, batteries and telecom equipment continues to rise. India, already the worlds second-largest mobile phone manufacturer, aims to grow its electronics manufacturing sector to US$300 Bn by 2026, including ICT hardware, consumer electronics and components. To meet the electronics export target of US$120 Bn by 2026, the country must strengthen logistics infrastructure with integrated multimodal hubs.

Textiles

In light of growingly complex e-commerce delivery demands and export promotion initiatives by the government, the logistics requirements for the textile sector are being redefined. Currently claiming a 3.9% share in the global trade of textiles and apparels, Indias overall export of textiles & apparel (incl. handicrafts) registered a growth of 7% during April-October in FY 2024-25 (US$ 21,358 Mn) compared to same period of FY 2023-24 (US$ 20,007 Mn). Determined to strike the export target of US$ 100 Bn by 2030, the GoI needs to weave an equally capable web of logistics support services to handle various tasks such as maintaining the fabric quality, protection against detrimental environmental conditions, timely delivery for both B2B and B2C clientele segments and optimum inventory management across online and offline platforms.

Chemicals

Indias chemical logistics sector is witnessing robust growth, driven by rising domestic manufacturing, exports and complex supply chain needs. Being valued at US$ 8.57 Bn in 2024, the market is projected to reach US$ 12.62 Bn by 2033 at a 4.04% CAGR.

Handling hazardous and sensitive materials requires specialized logistics—temperature-controlled transport, spill-proof warehousing and strict regulatory compliance. The integration of IoT, RFID and blockchain is enhancing traceability and safety. With India ranked sixth globally in chemical output, efficient multimodal infrastructure and tech-enabled logistics are essential. Sustainability, skilled manpower and 3PL collaboration are also critical for cost efficiency and resilience.

As the sector keeps evolving, chemical logistics will play a vital role in supporting Indias industrial and export ambitions through safe, scalable and future-ready supply chain solutions.

^ Sources: India Chemical Logistics Market, Imarc

$ Sources: Indian Chemical Distribution Market,

Market Research Future

E-commerce and Q-commerce

The rapid growth of e-commerce and Q-commerce is reshaping Indias logistics landscape, pushing the industry toward faster, smarter and more localized fulfillment. With market sizes projected at US$ 137.21 Bn and US$ 5 Bn respectively in 2025, both sectors are driving a shift toward hyper-efficient supply chains.

Increased smartphone usage and rising consumer expectations have led to the emergence of micro-fulfillment centers near urban hubs, enabling faster deliveries and reduced costs. Q-commerce, in particular, is accelerating innovations in AI-led personalization, automated warehousing and expansion beyond groceries.

To keep pace, logistics providers are investing in smarter inventory systems, real-time tracking and agile last-mile networks—transforming logistics into a core enabler of Indias digital economy.

Batteries

As the world shifts toward cleaner energy, batteries are becoming central to innovations in electric mobility and renewable energy storage. This rising demand has made battery logistics a highly specialized and regulated field. From lithium-ion to nickel-based chemistries, each battery type requires strict safety protocols, temperature control and compliant packaging.

Indias growing role in EV manufacturing and clean energy solutions adds urgency to building efficient first- and last-mile logistics for batteries. Battery swapping is gaining traction, with 64% of mobility players considering adoption, according to a Capgemini report titled The Battery Revolution. Reverse logistics is equally vital—recovering spent batteries for recycling valuable materials like lithium, cobalt and nickel.

The path to a sustainable battery supply chain also depends on visibility, traceability and responsible sourcing. With supply stability a key barrier, technologies like blockchain and AI are being explored to ensure data integrity and support circular economy models. Logistics providers will play a critical role in enabling this transformation with expertise, infrastructure and a sustainability-first approach.

Defense Manufacturing

Indias defense manufacturing sector is undergoing a paradigm shift, driven by policy reforms, increased capital outlay and a strong push for indigenization under the Atmanirbhar Bharat initiative. With a defense budget allocation of 6.21 Trillion in FY 2024-25 and exports reaching a record 210,083 Mn, the sector is poised to reach a market size of US$ 50 Bn in the coming years. The establishment of Defense Industrial Corridors, liberalized FDI norms and the growing participation of private players have further accelerated this momentum. For logistics and supply chain service providers like TCI, this evolving landscape presents a significant opportunity to support the sectors complex and high-value movement requirements.

As India scales up its defense production and prepares for future contingencies, TCI is well-positioned to offer specialized logistics solutions—ranging from secure transport and warehousing to last-mile delivery and digital tracking. With our pan-India multimodal network and technology-driven operations, we aim to play a pivotal role in supporting Indias defense modernization and contributing to national strategic autonomy.

While Indias defense manufacturing sector presents significant growth opportunities, it also carries notable risks. These include policy and regulatory uncertainties, geopolitical tensions that may disrupt supply chains and infrastructure limitations in remote or strategic areas. Additionally, logistics providers must navigate stringent compliance and cybersecurity requirements, while managing potential volatility in global component sourcing. For companies like TCI, success in this space will depend on building resilient, tech-enabled logistics networks that can adapt to the sectors evolving demands.

Investment Opportunities in Defence Manufacturing - Invest Indin

KPMG - Strengthening the defence value chain: How are MSMEs contributing?

PIB Research Unit - Operation SINDOOR: The Rise of Aatmanirbhar Innovation in National Security

About TCI

Traversing the logistics landscape of India for more than six decades, Transport Corporation of India Limited (TCIs or The Company or We) possesses an illustrious legacy of moving 2% of Indias GDP by value through its business and being one of the leading enablers for Indias march ahead to join the ranks of advanced economies with the targeted GDP of US$ 55 Tn by 2047. TCI works relentlessly to align with Indias evolving logistics and supply chain needs while consciously building a comprehensive suite of solutions across diverse industries. TCI stands proud at the forefront of the new age of Artificial Intelligence and Machine Learning (AI & ML) to embrace the transformation, backed by its C.O.R.E. (Customer Focus, Ownership, Responsive, Empathy) values.

TCI Freight

TCI Freight, the flagship and oldest business division of the TCI Group, stands as a pioneer in Indias surface logistics sector. With a wide-reaching pan-India network and a strong footprint across the SAARC and BBIN regions, the division delivers seamless and reliable cross-border transportation solutions tailored to diverse cargo requirements. With a legacy spanning over six decades, TCI Freight combines extensive industry experience with deep familiarity of Indias complex geography and business ecosystem. Its commitment to comprehensive service coverage is captured in its belief: "No one knows India better than us." From urban centres to remote destinations, the division ensures dependable last-mile delivery with unmatched precision.

TCI Freights multimodal transport capabilities enable it to manage cargo of all dimensions and complexities—from heavy industrial equipment and automotive parts to time- critical consignments and specialized goods. Serving a broad spectrum of sectors including FMCG, Automotive, Engineering, Electronics, Pharmaceuticals, Chemicals, Agriculture, Textiles, Consumer Goods and Handicrafts, the division delivers industry-specific logistics solutions powered by operational excellence and customer-focused innovation. Whether navigating cross-country routes or facilitating international movement, TCI Freight is the preferred partner for businesses seeking scalable, intelligent and dependable surface transport solutions.

Capitalising on the Dynamic Market Growth Opportunities

Evolving Business Models

As industries evolve rapidly, driven by the rise of quick commerce, agri-tech innovations and dynamic retail ecosystems, logistics needs are becoming increasingly complex. Businesses today demand a partner capable of managing both large-scale Full Truck Load (FTL) shipments and smaller, more flexible Less than Truck Load (LTL) deliveries with equal efficiency.

To meet this demand, TCI Freight offers:

• Integrated Full Truck Load (FTL) & Less than Truck Load (LTL) solutions

• Flexible, cost-efficient transport across varied shipment sizes

• Tailored support for quick commerce, agri-tech and modern retail

Expanding Rural Demand

With the steady growth of rural markets contributing significantly to the economy, the importance of connecting even the most remote areas to mainstream commerce cannot be overstated. Reliable and extensive connectivity is essential to bridge geographic gaps and ensure timely delivery of goods across the nation.

In response, TCI Freight employs:

• A Hub-and-Spoke network providing pan-India reach

• Cross-border capabilities that enable seamless movement beyond national boundaries

• An expansive branch and hub infrastructure connecting every corner of India

Digital-First Operations

In todays technology-driven logistics landscape, realtime tracking and comprehensive visibility are no longer luxuries but necessities. Businesses require transparency and proactive monitoring to safeguard shipments and optimize supply chain efficiency.

TCI Freight addresses these needs through:

• Control Tower-enabled operations providing 24/7 shipment tracking

• Proactive, real-time alerts for immediate issue resolution

• A secure, tech-enabled data environment ensuring full operational transparency

Agile Supply Chains

Modern supply chains must be agile and responsive to ever-changing market demands and inventory fluctuations. Flexibility in inventory positioning and delivery scheduling is key to maintaining customer satisfaction and operational efficiency.

To facilitate this agility, TCI Freight offers:

• In-transit storage solutions supporting dynamic inventory management

• Flexible delivery schedules optimized for responsiveness

• Scalable infrastructure capable of adapting to fluctuating demands

High-Value & Fragile Goods Protection

Transporting fragile and high-value goods, especially in LTL shipments, requires specialized packaging and handling to prevent damage and loss. Ensuring traceability and security throughout the transit is paramount for maintaining trust and reliability.

TCI Freight ensures the highest standards through:

• Specialized packaging and secure consolidation for LTL shipments

• Track-and-trace systems covering consignments up to 1 ton and beyond

• Competitive rates with extensive reach across all Indian districts

TCI Supply Chain Solutions

TCI Supply Chain Solutions (TCI SCS) is the integrated logistics and supply chain division of TCI, delivering end-to-end, customized solutions—from conceptualization to execution. With over six decades of industry leadership, TCI SCS serves a diverse client base across sectors such as Automotive, Omni-Channel Retail, Hi-Tech & Telecom, Chemicals, Healthcare and Cold Chain.

Operating as a single-window partner, the division seamlessly integrates strategic supply chain design with robust execution capabilities. Its solutions are underpinned by in-house analytics expertise, advanced infrastructure and ownership of critical assets including modern dry and temperature- controlled warehouses, vehicles, material handling equipment and intelligent storage

TCI SCS continues to advance its digital transformation through the deployment of proprietary Transportation Management Systems (TMS) and Warehouse Management Systems (WMS). These platforms have been instrumental in optimizing route planning, reducing transit times, improving fleet utilization and enhancing warehouse efficiency through SKU-level analysis, automated replenishment and strategic space optimization By combining domain expertise, operational excellence and technology-led innovation, standing at the forefront of delivering scalable, sustainable and future-ready supply chain solutions across India and beyond.

Inbound & Outbound Logistics (IBL/OBL) customization	End-to-end, tailored logistics from design to execution	• 3,000+ vehicles under operation (1,200+ owned) • 150+ trains operated per month • Integrated WMS & TMS platforms, Synergistic group company support
Warehouse Planning & Management (including vertical space optimization)	High warehouse space utilization via vertical expansion	• 16+ Mn. sq. ft. warehousing space (dry & temperature controlled) • Modern material storage systems, RFID, ASRS, Pick/Put to Light, etc.
Yard Management	Dedicated yard management for efficient cargo movement	• 67 yards managed across India
Supply Chain Design & Reengineering	In-house analytics-driven network design	• Dedicated team of Supply Chain Analysts • Proprietary design tools for network modeling
Lead Logistics Provider (LLP/3PL/4PL)	Single-window solution for integrated logistics	• End-to-end control with visibility tools
Full-Stack Solution: Conceptualization to Execution	One-stop partner for supply chain transformation	• Over 65 years of industry expertise Track record across- Automotive, Retail, Chemical, Healthcare, Hi-Tech and Cold Chain sectors
Inventory Management via WMS integrated with client ERP	Real-time inventory control and replenishment	• SKU-wise analytics Automated replenishment Space optimization strategies
Proprietary TMS for Route Optimization	Reduced transit times and enhanced fleet utilization	• AI-driven route planning
Information Management across IBL, OBL and Warehousing	Seamless visibility and data- driven decision-making	• Proprietary supply chain software Glass pipeline visibility across nodes

Capitalising on the Dynamic Market Growth Opportunities

As the logistics landscape evolves, demand for efficiency, integration and agility is rising. Businesses increasingly seek end-to-end partners capable of delivering tailored, technology-backed and scalable supply chain solutions. TCI SCS is strategically positioned to address these trends with its proven capabilities and asset-backed operations.

Rising Market Potential

Growing preference for integrated, bespoke supply chain solutions over fragmented models has expanded the market size to US$ 15 Bn. With its single-window offerings and deep industry expertise, TCI SCS is primed to capture this expanding opportunity. With ownership of critical logistics assets (vehicles, yards, automated warehouses) and analytics-driven approach positions, the Company is able to deliver scalable and customized solutions across industries.

3PL Growth Opportunity

With road transport accounting for 60% of Indias logistics, the role of organized 3PL providers is critical. While 3PL penetration in India is only 4.5% compared to 11% globally, the segment is projected to grow at a CAGR of 15%. TCI SCS Lead Logistics Provider (LLP) model combines network optimization, resource orchestration and real-time data visibility. The Companys proprietary WMS and TMS platforms, combined with an asset-light yet infrastructure- rich model.

Optimized Warehousing for Agile Networks

The rapid rise of e-commerce and q-commerce, especially in Tier 3/4/5 cities, is compressing delivery timelines and requiring dynamic inventory and supply chain management.

TCI SCS addresses this with strategic warehouse planning, automated facilities and temperature- controlled infrastructure, ensuring seamless operations and faster turnaround.

Automated and Differentiated Offerings

The fast-paced cycles of manufacturing, retail and consumption call for high-speed, automated logistics. The Companys customized IBL/OBL solutions, dynamic yard management and control tower visibility tools empower clients to adapt quickly to market demands.

Technology-Driven Logistics

In the digital age, visibility, automation and control are the backbone of effective logistics. Clients increasingly expect real-time updates, predictive analytics and integrated platforms that provide actionable insights. TCI SCS has invested extensively in digitization, automation and proprietary platforms that drive operational excellence. Its TMS enables route optimization, reduced fuel costs and improved fleet utilization, while its WMS ensures SKU-wise inventory tracking, automated replenishment and space optimization.

TCI Seaways

TCI Seaways, the maritime arm of TCI Group based in Gurgaon with key offices in Chennai and Port Blair, is a leading player in Indias coastal multimodal logistics. Backed by over 30 years of expertise, it operates a fleet of six Indian-flagged vessels across eastern, western and southern ports, ensuring seamless, compliant and sustainable shipping solutions. Focused on safety, efficiency and green logistics, the division is evaluating second-hand ship acquisitions to meet rising demand and align with the Governments Sagarmala initiative. Additionally, two new ships are under construction, set to be delivered by mid- 2026 and operational by FY27.

Navigating Growth with Multimodal Coastal Excellence: Our Capabilities At a Glance

Key Services	Key USP/Capability	Growth Enablers/ Supporting Capabilities
Coastal Shipping (Container & Bulk Cargo)	30+ years of expertize in coastal logistics, covering Indias East, West & South coasts	Fleet of 6 Indian-flagged vessels ensuring regulatory compliance under national maritime law
Multimodal Transport Integration	End-to-end solutions combining sea, rail and road for seamless first-mile and last-mile connectivity	Intermodal partnerships and linkages with TCI Freight, TCI SCS and TCI CONCOR for integrated logistics coverage
Specialized	Container Movement	8,500+ multipurpose marine containers to support diversified cargo handling
Dedicated fleet capacity and loading/unloading infrastructure tailored to specialized requirements
Bulk Cargo Movement	Capability to transport large- volume industrial and breakbulk cargo efficiently and safely	77,957 DWT (Deadweight Tonnage) fleet capacity enabling heavy-load and long-haul shipments
Domestic Coastal Connectivity	Services across 7 of Indias 12 major ports, ensuring dense coastal coverage	Presence in key locations including Chennai, Port Blair and other strategic nodes
International Reach	Extended operations from India to Far East destinations, aligning with regional trade flows	Long-range operational routes enabled through vessel endurance and cargo handling capabilities
Regulatory & Safety Compliance	ISM and ISO 9001:2015 certified for quality, environmental and safety standards	Strong accident-free operational track record, with strict adherence to HSE guidelines
Green & Sustainable Logistics	Emphasis on low-emission multimodal logistics, aligning with Indias Sagarmala initiative and net-zero goals	Plans to acquire second-hand ships and two new vessels under construction for future fleet expansion by FY27
Customs & Regulatory Clearance Support	End-to-end cargo clearance facilitation, reducing client-side delays and enhancing shipment predictability	Experienced compliance teams across ports, handling documentation, clearances and intermodal transitions

Capitalising on the Dynamic Market Growth Opportunities

Policy-Led Infrastructure Boost to Coastal Shipping

Driven by many flagship initiatives, such as the Sagarmala, Jal Marg Vikas Project , Indias maritime ecosystem is witnessing unprecedented investment in port infrastructure and coastal economic zones. The modernization of 103 ports will directly enhance cargo throughput, as is witnessed in cargo handling capacity at major ports doubling to 1,630 MTPA by March 2024 from 800.5 MTPA in 2014.

Multimodal Synergies for Port-Led Growth

As the logistics sector evolves toward greater efficiency, there is a growing shift to integrate coastal routes into the broader supply chain. The GoI is incentivizing infrastructure development around ports, such as more

SEZs, Multimodal Logistics Parks and Warehousing zones near ports. TCI Seaways, with its deep expertise in multimodal transport, is strategically positioned to explore this opportunity as manufacturing expansion boosts export cargo volumes across ports.

Green Logistics and Inland Waterways Momentum

With India committing to carbon neutrality by 2070, the emphasis on green logistics has never been stronger. Coastal and inland waterways, currently just 6% of the modal mix, are gaining traction as energy-efficient, sustainable alternatives. TCI Seaways aligns with this green transformation, providing eco-friendly transport solutions while expanding its services to support growing cargo movements through inland waterways.

Fostering a shared future: Sustainability at TCI

At TCI, sustainability is not merely a promise—it is deeply embedded in the way we conduct business. As one of Indias leading integrated logistics players, we recognize our responsibility to drive inclusive, equitable and environment-friendly growth, as evidenced in our robust ESG framework guiding us consistently towards this direction. Our ESG efforts reflect our core belief that true progress lies in creating value for all—our customers, the communities that we are part ofand the planet.

Guided by the principle of "Vasudhaiva Kutumbakam" rooted in Indian cultural values of inclusivity and respect for diversity, we are working tirelessly to reduce our environmental footprint, uplift marginalized communities and conduct our business with utmost transparency and integrity. Through our multi-modal operations and wide geographic presence, we are enabling greener logistics, connecting remote regions and contributing to a more resilient and responsible global supply chain. As we look to the future, we are strengthening our efforts to align with national sustainability goals and global climate targets—delivering not just on business performance, but on our promise to build a better world.

Green operations at TCI

At TCI, sustainability is woven into every aspect of our operations—from fuel choices and transport modes to procurement and warehousing. Our initiatives are focused on reducing environmental impact, improving resource efficiency and advancing towards a greener logistics ecosystem.

Alternative Fuels & Renewable Energy

We are actively transitioning to cleaner energy sources, including alternative fuels and renewable energy, to reduce our carbon footprint and dependency on fossil fuels. This shift supports our long-term goal of creating a cleaner and more resilient supply chain.

Multimodal Shift (from Road to Rail & Waterways)

Our focus on shifting cargo movement from road to more sustainable modes like rail and coastal shipping brings measurable environmental gains. This multimodal approach not only enhances operational efficiency but also significantly reduces carbon emissions.

Green Procurement Practices

Sustainability begins with conscious choices. We prioritize sourcing from vendors who share our environmental values—those offering recycled materials, energy-efficient products and sustainable manufacturing practices. This drives responsible consumption across our value chain.

Green Materials for Sustainable Warehousing

Our warehousing infrastructure is evolving to align with green building principles. We integrate recycled or renewable materials and adopt energy-efficient technologies to lower energy consumption and reduce our greenhouse gas emissions.

Recycle & Re-Use of materials (Circularity)

Circularity lies at the heart of our resource strategy. Through dedicated recycling and reuse programs, we minimize waste, reduce demand for virgin resources and support the transition to a circular economy.

TCI IIMB Supply Chain Sustainability Lab

As part of our ongoing commitment to sustainable logistics, the TCI Group has joined hands with the Indian Institute of Management Bangalore (IIMB) to establish the TCI-IIMB Supply Chain Sustainability Lab, a pioneering centre of excellence in sustainable supply chain practices, dissemination and advocacy.

This strategic partnership serves as a thought leadership platform, promoting knowledge exchange and innovation in sustainable logistics. The lab is actively engaged in cutting-edge research across key areas such as decarbonization, circular economy and sustainable procurement. It also develops insightful white papers and offers consulting services in carbon mapping, measurement, mitigation and management. The plans include offering sustainability certifications and supplier assessment services to strengthen responsible sourcing practices across industries. Collaborations are already underway with leading organizations such as WRI India and Herbal Life, signalling growing momentum through impactful research projects, case studies and policy advocacy.

TEMT: An Innovation in Emission Tracking

A significant outcome of the Labs work is the launch of TEMT (Transport Emissions Measurement Tool)— an innovative, online platform designed to accurately calculate greenhouse gas emissions across the transportation sector. In a sector where consistent and credible emission data remains a challenge, TEMT fills a critical gap, making carbon transparency accessible, measurable and actionable for all stakeholders.

• Multilingual and user-friendly, TEMT enables grassroots-level adoption

• Covers all modes of transport—road, rail, air and sea

• Allows for emission tracking down to a single trip or aggregated monthly reports

• Spans thousands of routes, including multimodal trips across geographies

Our People, Our Driving Force: Life at TCI

The employees are considered to be the critical asset at TCI entrusted with value creation through service excellence. Backed by its CORE values, HR initiatives at the Company have been designed to nurture talent, enhance productivity and foster a culture of continuous learning through strategic talent acquisition, learning and development, employee engagement and operational excellence.

Safety At TCI

At TCI, we place the highest value on the health, safety and well-being of our people. We are committed to cultivating a safe, healthy and empowering workplace where every individual, across all levels of the organization, is respected, protected and given equal opportunity to grow. Our HSE policy reflects this ethos by embedding safety-first practices, promoting holistic wellbeing and encouraging skill development in an environment built on trust, inclusivity and care. Through continuous training, adherence to rigorous safety standards and a proactive approach to risk management, we aim to ensure that our workforce thrives in a culture that prioritises both people and the planet.

Principal tenets of TCIs HSE Policy

• Aim to become a Zero-accident workplace

• Training programs for the employees about the organizations HSE policies

• Developing a safe and accountable work environment where responsibilities for the health, safety and environment are shared by all

• Conservation of energy and resources through the adoption of green energy alternatives and the reduce, reuse, recycle principle

• Utmost priority to adherence of all compliances while handling dangerous and inflammable goods

• Safe movement of men and material

Corporate Social Responsibility Committee: Entrusted to Carry Out TCIs CSR Mission

• Ms. Gita Nayyar - Non-Executive - Independent Director, Chairperson

• Mr. D.P. Agarwal - Executive Director, Member

• Mrs. Urmila Agarwal - Non-Executive - Non-Independent Director, Member

• Mr. Chander Agarwal - Non-Executive - Non-Independent Director, Member

CSR Initiatives: Impact

Areas at TCI

The initiatives in these areas are implemented by TCI Foundation, an autonomous organization registered with:

• Ministry of Corporate Affairs

• Ministry of Health & Family Welfare

• Ministry of Youth Affairs and Sports

• NITI Aayog

Some key milestones achieved under the impact areas during FY 2024-25 are as follows:

Preventive Healthcare

• 381K truck drivers covered through 10 health centers across seven states

• 500+ tribal students benefited for the Senior Secondary Education in Kara block in aspirational district Khunti, Jharkhand

• 20,000 saplings planted at BSF Camp in Gurgaon as well as 10,000 saplings planted in association with National Highways Authority of India (NHAI)

• In FY 2024-25, six sewing machines were provided in the sewing center and 34 women were the beneficiaries of this initiative.

Education, Awareness & Skilling Initiatives

TCI DAV School

TCI DAV Public School in Jharkhand, affiliated with CBSE, is committed to making quality education accessible and affordable to tribal commu nities. In collaboration with the DAV College Management Committee, Delhi, the school focuses on the holistic development of its students across academics, sports and culture. In FY 2024-25, the school had 543 students, 20 teachers and eight non-teaching staff. The campus boasts a range of modern facilities, including:

These state-of-the-art resources ensure a nurturing environment that equips students with the skills and knowledge to excel.

• Contemporary classroom furniture

• Smartboards for interactive learning

• A new PA system and CCTV for enhanced safety

• Upgraded Science Labs

• Sports equipment and a Junior Playschool

• A computer lab promoting digital literacy

• A new school bus

• An Upskilling Centre dedicated to rural empowerment

The Transystem

Educational Grant-in-Aid

The Transystem Educational Grant-in-Aid has been established to offer financial support to students who excel in academics or sports and come from economically disadvantaged backgrounds. This grant is specifically designed for students enrolled at TCI-DAV School in Jamhar District, Khunti, Jharkhand, helping them pursue their educational goals and unlock new opportunities.

Computer Lab at Birsa

Munda College - Khunti

In July 2024, TCI Foundation inaugurated a state-of-the- art computer lab at Birsa College in Khunti, Jharkhand, in collaboration with the District Administration. The facility, equipped with 20 new computers, aims to bridge the digital divide and empower local youth by enhancing their digital literacy and employability. This initiative complements TCI Foundations ongoing efforts in the region, including IT skilling centers and vocational training programs, reinforcing its commitment to inclusive development and community upliftment through education and technology access.

TCI Institute of Logistics

To promote professional employment among underprivileged youth, TCI Institute of Logistics has established nine centers across Tier III and IV towns of Jhunjhunu, Churu, Hisar, Sitapur, Prayagraj, Varanasi, Satna, Patna and Muzaffarpur. Since inception, the institute has trained 12,881 individuals (including 16 women) from Rajasthan, Haryana, Uttar Pradesh, Bihar and Madhya Pradesh. 10,763 program participants have obtained employment across the logistics sector, including within TCI Group companies.

TCI Safe Safar

In alignment with the National Road Safety Mission, TCI has been passionately driving the TCI Safe Safar campaign for the past five years. This flagship initiative embodies our deep-rooted commitment to road safety, social responsibility and grassroots-level ESG integration within the logistics sector. The campaign is founded on three core pillars:

• Driving Awareness: We actively engage with the driver community to promote road safety practices and cultivate a culture of responsibility on Indian roads.

• Social Upliftment: By sensitising, coaching and empowering drivers, we aim to elevate the dignity of their profession while improving their overall well-being.

• Grassroots ESG Implementation: We bring ESG principles to the heart of logistics by integrating environmental and social consciousness at the operational level.

Through vibrant and thought-provoking Nukkad Nataks (street plays), TCI Safe Safar creatively conveys critical messages, ranging from avoiding single-use plastics and embracing digital tools to the importance of insurance coverage and clean energy alternatives. These efforts not only raise awareness but also inspire

The campaign has earned wide recognition and support from industry bodies, corporates and associations, reflecting its growing impact and credibility. Some key accolades include:

• James Tye Award at the International Safety Awards by the British Safety Council (FY 2019-20)

• FICCI Road Safety Award for Innovative Educational Program (FY 2018-19)

• Innovation in Sustainability & CSR at AIMAs 8th National Leadership Conclave

TCI Safe Safar: Spreading Awareness Appreciation From Top Corporates

Through our TCI Safe Safar Campaign, we have been partnering with other prominent organizations for conducting Driver Safety trainings,Insurance facilitation, ESG awareness drives to avoid single use plastic and digital adoption drives. These drives help our clients achieve their HSE commitments which directly contributes to meeting their ESG goals. In the process, our efforts have been highly valued across industries. Here is a glimpse of the recent appreciation we have received.

Rural Empowerment Initiatives

Jamhar Skill

Development Center

With the perspective of bridging the skill gap in India, TCI Foundation has set up a Skill Development Center in Village Jamhar, District Khunti, Jharkhand, to meet the growing demand for skilled manpower across sectors.

IT Skilling Cent re

In collaboration with the NIIT Foundation, TCI Foundation has launched a program to provide computer education and training to underprivileged youth. This comprehensive initiative includes the training and certification of computer education teachers, as well as pre-assessments, post-assessments and certification for enrolled students. The program ensures both teachers and students are equipped with the latest industry-relevant modules, meeting the demands of todays competitive job market. Upon completing the course, students receive certification from the NIIT Foundation, which greatly enhances their employability across India. In FY 2024-25, 42 students (16 males, 26 female) completed their training, being empowered with essential skills for brighter futures.

The JHARKRAFT Program

In collaboration with the Government of Jharkhand under the JHARKRAFT initiative, TCI Foundation has launched a Handloom Weavers Program at its Skill Development Center. The program empowers tribal and underprivileged communities, with a strong focus on womens participation to enhance their financial independence.

TCI DAV Sewing Centre

TCI has set up a Sewing Center in TCI DAV school, giving vocational training to the tribal women in Jharkhand enabling them to showcase the rich cultural heritage of Jharkhand State to the world, through their creativity. In FY 2024-25, six sewing machines were provided in the sewing center and 34 women were the beneficiaries of this initiative.

Project Anokhee

To address personal hygiene challenges and break societal taboos surrounding menstruation, the TCI Foundation has launched a transformative initiative in Jharkhands Kara Block area. Known as Project Anokhee, this project provides high-quality, affordable sanitary napkins to rural women, specifically targeting adolescent girls (ages 10-19) and women (ages 20-50). The initiative extends its reach to neighboring villages, including Jamhar Village in the Khunti District.

In addition to promoting better hygiene, Project Anokhee creates employment opportunities for local tribal women involved in the production of the sanitary napkins. By offering entrepreneurial training, the project helps these women gain financial independence, self-respect and confidence. Currently, five women are employed through this initiative, contributing to both their personal empowerment and the economic development of the region. In FY 2024-25, they sold 32,155 packets and received 3,93,854. Their products were sold in the districts of Ranchi, Khunti, Simdega and Gumla.

Community Health and

Well-being Projects

Project Kavach

In response to the unique health challenges faced by long-distance truck drivers, ranging from communicable and non-communicable diseases to occupational ailments and vision issues, the TCI Foundation has established a network of specialized healthcare hubs along key national highways. Three Health Centres and Three Vision Centres have been strategically set up near Belagavi (Karnataka), Krishnagiri (Tamil Nadu) and Bilaspur (Haryana) to offer accessible, targeted medical care. These centres provide truckers with essential health check-ups, treatment for chronic conditions, occupational health support and vision correction services, ensuring that those who keep our nation moving are themselves kept in good health.

Kavach Milestones in FY 2024-25

381K

truck drivers covered under preventive healthcare services

126K

truck drivers availed healthcare services

22,477

truckers received vision care support

7,259

spectacles distributed free of cost

Khushi Clinics (including

the one at GAIL Plant, UP)

The TCI Foundation, in close partnership with the GoI, is committed to advancing the health and well-being of underserved communities, particularly those living near high-risk populations. Through our Khushi Clinics, we provide targeted, continuous medical care aimed at reducing vulnerability and improving long-term health outcomes. Strategically located in cities such as Chandigarh, Ludhiana, Haridwar, Rudrapur, Jalgaon, Haldia, Delhi, Raebareli and Manipuri, the Khushi Clinics have extended essential healthcare services to over 500K individuals, focusing on bridge and composite

populations most in need of consistent care.

Recognizing the ongoing health challenges faced by truck drivers and helpers, the TCI Foundation, in collaboration with PSU-GAIL, has set up a dedicated Khushi Clinic at the GAIL plant in Uttar Pradesh. This clinic not only provides routine medical support to the truckers who visit the plant daily, but also extends its outreach to nearby villages through regular health camps. In FY 2024-25 alone, this initiative has benefited 500K truck drivers, reaffirming our belief that driver healthcare is not a one-time solution, but a continuous mission to enhance quality of life and address the deeper socioeconomic barriers to health.

TCI-Jaipur Foot and

Rehabilitation Center

In partnership with the renowned prosthetics provider Jaipur Foot, the TCI Foundation has established the TCI Jaipur Foot & Rehabilitation Center in Patna. Since its inception in FY 2007-08, the center has been committed to providing free clinical assessments, prosthetic limbs and mobility aids to underprivileged individuals with disabilities from across India. Since its inception till date, the center has organized 89 camps, benefiting 26,729 beneficiaries.

Equipped with a specially designed mobile prosthesis workshop housed in an ambulance, the center brings life-changing support directly to remote and underserved areas, ensuring that help truly reaches those who need it most. In FY 2024-25, the center served 1,402 beneficiaries through rehabilitation camps, continuing its mission of restoring mobility, dignity and hope.

Project Saksham

As of March 31, 2024, Project Saksham was successfully, marking a major milestone in strengthening Indias nationwide Malaria Elimination Program. Implemented in coordination with the Ministry of Health and Family Welfare (MoHFW), the initiative spanned across all 36 states and Union Territories, delivering impactful outcomes to bolster the countrys public health infrastructure. It has impacted 8.18 Mn population across 12 states and imparted training to 32,000 state government staff through the Malaria Comorbidity Awareness Program under the National Malaria Elimination Project.

Key achievements under Project Saksham include:

• Establishment of a state-of-the-art National Training Centre at the National Center for Vector Borne Diseases Control (NCVBDC), MoHFW and 18 regional centers to impart training to public health workforce across all 36 states and UTs

• Setup of 12 Regional Training Centers in cities such as Delhi, Ahmedabad, Bangalore, Chennai, Chandigarh, Hyderabad, Jaipur, Imphal, Kolkata, Lucknow, Patna, Shillong and Bhubaneswar

• Strengthening of the National Reference Laboratory and National Entomology Laboratory at NCVBDC as well as other National and Regional Laboratories and Entomological Zones of India to eliminate malaria from India by 2030

• Development of a unique e-Learning Management System for NCVBDC in collaboration with MeitY and NeGD, Government of India

• Developed nine medical cadre e-modules in nine languages to provide training to medical & technical staff engaged in the malaria program

• Developed National E-LMS Portal for GoI to impart training to nationwide health sector staff working with governments

• Technical Support to Government of India by way of 222 medical and technical staffs deployed at Central, Regional and States

• Creation of nine specialized training modules tailored for nine cadres of healthcare professionals

• Formation of a dedicated cadre of 283 malaria elimination specialists and 36 lab technicians

• Delivery of focused training to 13,296 ASHAs, 180 lab technicians, 23 entomologists and 169 medical officers at NCVBDC

• Procurement and installation of 582 electronic microscopes at central, state and district levels

• Technical support extended to the malaria elimination programs of 10 high-burden states

• Dissemination of integrated awareness on malaria and COVID-19 through IEC and BCC campaigns across 12 states, reaching 1,307 sub-centers and 6,535 villages

Project Saksham stands as a model of multi-stakeholder coordination, capacity building and technological enablement in the journey towards a malaria-free India.

Sports Training and

Development

Urmila Sports Academy

Through our initiative Shourya, we have established the Urmila Sports Academy in Nyangal Bari village, Rajgarh Tehsil, Churu District, Rajasthan, with a mission to nurture and develop Indian sports talent. Affiliated with the Rajasthan State Government, Khelo India and recongnized as inter coaches training centre by Sports Authority of India, Ministry of Youth Affairs and Sports, the academy provides world-class training in wrestling, weightlifting and boxing to both aspiring and established athletes.

Under the guidance of experienced coaches, the academy has already achieved remarkable success. In FY 2024-54, athletes trained at the academy have raised their performance bar at various competitions, winning a total of 53 medals, out of which 28 Gold Medals, 19 Silver Medals and 6 Bronze Medals in various state and national level competitions, including one bronze medal in World Wrestling Championship for India. These accomplishments highlight the academys dedication to excellence and its significant contribution to the development of sports talent in the region.

Governance

At TCI, we believe sustainable success comes from balancing the needs of our employees, customers, shareholders and communities. Weve built a workplace culture rooted in inclusivity, growth and respect, where everyone is empowered to thrive. Strong governance, transparency and accountability are the pillars of our resilience. They enable us to respond confidently to challenges, uphold our responsibilities and deliver consistent value across stakeholder groups. In an increasingly competitive world, these principles keep us steady, agile and ahead.

Corporate governance framework

• Strengthening Independence, transparency & diversity of the Board of Directors

• Rendering our services in compliance with current legislation and following our values

• Conducting Business with ethics & transparency

• Maintaining the independence of auditors

• Business Continuity Planning

• Internal Financial Controls

• Risk Management & Diversification

• Maintaining a balance between economic & social goals

Human Rights at TCI

• Equitable treatment and rights of shareholders.

• Maintaining ethical culture within & outside of the organization

• Development of a long-term performance- linked remuneration system

• Sustainable supplier relations

TCI Governance Goals

With our Comprehensive Corporate Governance Framework, we have set up the following governance goals for the coming fiscals:

• Foster a diverse and accountable governance model

• Diversity in leadership positions

• Strict Adherence to the Code of Conduct

• Maintain Data and cybersecurity

Risk Management Framework

TCI recognises the vital role of effective risk management in achieving its strategic objectives. A well-established Enterprise Risk Management (ERM) framework, overseen by the Board-appointed Risk Management Committee (RMC), integrates risk management into core operations.

The Board-approved risk policy aims to:

• Identify, assess, quantify, mitigate and manage key risks

• Establish a structured risk management framework and ensure its effective execution

• Develop policies for the timely evaluation, reporting and monitoring of business risks

Risk assessment is an ongoing process at TCI. Each fiscal year begins with a comprehensive survey involving all business units and departmental heads to identify and prioritise risks based on impact and likelihood. These are evaluated using a standardized matrix. Supported by regular internal audits and a corporate risk mitigation system, this approach ensures TCI stays agile and prepared for emerging challenges.

Mitigation steps are planned and executed using systematic data inputs to determine residual risk scores, generating a risk heatmap. This is documented in a risk register and monitored through a regular review framework.

Risks at TCI are categorized into:

• Corporate risks: HR, Compliance, IT & Cybersecurity, Brand & Reputation, Market Volatility and Natural Calamities

• Division-specific risks: Relevant to Freight,

SCS and Seaways divisions

The updated risk register and heatmap are presented to the Boards Risk Management Committee for review and approval, with this process conducted twice annually. TCI follows a balanced approach, aiming to mitigate risks to acceptable levels within defined tolerances. This safeguards its brand and reputation while enabling operational and strategic progress. The Board affirms that no material risk currently threatens the Companys continuity.

Business Continuity Framework

In todays fast-changing global risk landscape, shaped by technological, geopolitical, societal, economic and environmental factors, a companys reputation depends on its resilience and ability to manage disruptions. TCI prides itself on a robust business continuity and disaster management framework, overseen by the Chief Audit & Risk Officer. Our Business Continuity Plan (BCP) is designed to minimize disruptions at all levels, ensuring operational continuity while safeguarding employee safety and organizational assets.

The BCP Plan includes risk assessments, contingency plans and response procedures for scenarios like equipment failures, supply chain disruptions, natural disasters and industrial accidents. It assigns clear responsibilities and establishes communication protocols for timely information sharing. A dedicated team maintains the plan, conducts regular drills and identifies potential threats. To enable swift recovery, we conduct business impact analysis to identify critical activities and establish SOPs to ensure uninterrupted service. We also oversee IT Disaster Recovery (ITDR) efforts, including data recovery, safety protocols and access management in case of disasters. Continuous training for employees ensures smooth operational resumption. Additionally, we have Disaster Recovery (DR) capabilities for critical infrastructure and enhanced data leakage prevention measures. This comprehensive framework integrates into our Enterprise Risk Management program.

Internal Financial Controls

TCI maintains a comprehensive Internal Financial Control (IFCR) framework aligned with the Companies Act, 2013. These controls, appropriate to our size and operations, ensure reasonable assurance for:

• Accurate financial and operational information

• Compliance with applicable statutes

• Protection of assets from unauthorized use

• Proper authorization of transactions

• Adherence to corporate policies

Our framework includes well-documented policies and procedures, both manual and automated, such as sub-delegation of financial powers and the use of ERP systems for transaction approvals and recording. We follow structured processes to ensure efficient, orderly

business conduct. The system is deemed adequate and effective, with regular reviews and control mechanisms. Continuous internal audits, led by the Chief Internal Auditor, ensure compliance with processes and financial discipline at all levels. Management, internal auditors and statutory auditors regularly review the framework and findings are presented to the Audit Committee for evaluation and action. Based on these reviews, we strengthen the framework to ensure its ongoing adequacy and effectiveness. As our business grows, our systems and processes must evolve to keep pace. This ensures that our policies remain relevant in an ever-changing business landscape.

Cautionary Statement

Statements in this Report regarding the Companys objectives, projections, estimates and expectations may constitute forward-looking statements, subject to risks and uncertainties. These statements reflect managements intentions and efforts to achieve certain goals. Actual results may differ materially based on various factors. Investors are advised to independently assess and consider all relevant factors before making any investment decisions.