Shreeji Shipping - An Integrated Logistics & Shipping Firm

20 Aug 2025 , 01:20 PM

Shreeji Shipping is an integrated logistics and shipping firm specialising in dry bulk cargo. It has a strong presence in the non-major ports on the West Coast of India. With over 80 vessels and 370 earthmoving equipment, it has a leading presence in the domestic dry bulk logistics industry.

Its IPO is aimed at acquiring new dry bulk vessels and strengthening its balance sheet.

Offer Details of the IPO

Total Size of the Offer: The total size of the offer is 16,298,000 equity shares aggregating up to INR 4107.1 million. The entire offer is a Fresh Issue. There is no OFS as a part of the IPO.

Price Band: INR240-INR252 per share

Book Running Lead Managers (BRLMs)

·         Beeline Capital Advisors Private Limited

·         Elara Capital (India) Private Limited

Objectives of the IPO

Capital Expenditures: Acquisition of Dry Bulk Carriers in the Supramax category in the secondary market for INR 2,511.79 million

De-leveraging/Repayment of Debt: Pre-payment/ repayment of certain outstanding borrowings to the tune of INR 230.00 million

Shipping and Logistics Industry Overview

The shipping and logistics industry is a vital component of the global economy, playing a crucial role in the transportation of goods and commodities across the world. The industry is responsible for facilitating international trade, connecting businesses and consumers, and driving economic growth. The end customers of the industry include manufacturers, retailers, and consumers who rely on the efficient and timely delivery of goods.

The industry offers a range of products and services, including ocean freight, air freight, land transportation, warehousing, and logistics management. Shipping companies, freight forwarders, and logistics providers are the key players in the industry, working together to ensure the smooth movement of goods from one place to another.

The shipping and logistics industry can be broadly segmented into several key areas:

Ocean Freight

Ocean freight is the largest segment of the industry, accounting for the majority of global trade. It involves the transportation of goods by sea, using container ships, bulk carriers, and other types of vessels. Ocean freight is a critical component of international trade, with many countries relying on it to import and export goods.

Air Freight

Air freight is a faster and more expensive mode of transportation, used for high-value or time-sensitive goods. It involves the transportation of goods by air, using cargo planes and airports. Air freight is commonly used for perishable goods, electronics, and other high-value items.

Land Transportation

Land transportation involves the movement of goods by road or rail. It is a critical component of the industry, providing a link between ports and inland destinations. Land transportation is used for both domestic and international trade, with many companies relying on it to move goods across borders.

Warehousing and Logistics

Warehousing and logistics involve the storage and management of goods, as well as the provision of value-added services such as customs clearance and freight forwarding. This segment of the industry is critical for companies that need to manage complex supply chains and ensure the efficient movement of goods.

Industry Size and Growth Trends

The Indian logistics industry has witnessed significant growth in recent years, driven by the country’s rapid economic expansion, increasing trade volumes, and government initiatives to improve infrastructure. The industry’s size is estimated to be around USD 250 billion, with a growth rate of 10-12% per annum.

The industry can be broadly segmented into transportation, warehousing, and value-added services. The transportation segment accounts for the largest share of the industry, with a growth rate of 12-15% per annum. The warehousing segment is growing at a rate of 10-12% per annum, driven by the increasing demand for storage and distribution services. The value-added services segment, which includes services such as packaging, labeling, and inventory management, is growing at a rate of 15-18% per annum.

Key Drivers of Growth

The Indian logistics industry is driven by several key factors, including:

·         Government Initiatives: The government’s initiatives to improve infrastructure, such as the development of dedicated freight corridors, logistics parks, and free trade warehousing zones, have created a favorable environment for the growth of the industry.

·         E-commerce Growth: The rapid growth of e-commerce in India has led to an increase in demand for logistics services, particularly in the areas of transportation and warehousing.

·         Increasing Trade Volumes: India’s increasing trade volumes, both domestically and internationally, have driven the demand for logistics services.

·         Infrastructure Development: The development of infrastructure, such as roads, railways, and ports, has improved the efficiency and reliability of logistics services.

·         Technological Advancements: The adoption of technology, such as automation, artificial intelligence, and data analytics, has improved the efficiency and productivity of logistics services.

Company Background and Overview

Shreeji Shipping Global Limited, formerly known as Shreeji Shipping, was founded in 1995 as a partnership firm by Ashokkumar Haridas Lal and Jitendra Haridas Lal. The company has since evolved into an integrated shipping and logistics solution provider for dry bulk cargo handling at all-weather and seasonal ports in India and Sri Lanka.

The company has associations with various other companies, including United Shippers Limited, with whom they have a settlement agreement, and Ashapura Holdings UAE FZE, with whom they have a business transfer agreement. Additionally, the company has a joint venture with Simlong Mine Private Limited.

The company operates in the following segments:

·         Cargo Handling: The company provides cargo handling services, including lightering, stevedoring, and other port services, including cargo management services.

·         Transportation: The company provides transportation services for dry bulk cargo, including port-to-premise drop-off and vice versa.

·         Fleet Chartering and Equipment Rentals: The company provides fleet chartering and equipment rental services, including the chartering of heavy vehicles and earthmoving equipment.

·         Other Operational Income: The company generates other operational income from sundry activities, including the sale of scrap.

The company’s services are primarily focused on non-major ports, particularly along the West Coast of India, and it has a strong presence in the dry bulk cargo handling market. The company’s fleet includes barges, mini bulk carriers, tug boats, and floating cranes, and it has a significant presence in the transportation of dry bulk cargo.

The company’s key customers are primarily from the metal and steel industry, and it has a strong relationship with companies such as ArcelorMittal Nippon Steel India Limited and Reliance Industries Limited.

Competitive Landscape

The company operates in a highly competitive industry with several major players. Being an integrated logistics player, it competes with pure play shipping services firms as well as port based operators. Some of its key competitors in the market include:

·         Ocean Sparkle

·         Shipping Corporation of India

·         Great Eastern Shipping

·         Adani Harbor Services

In comparison to its competitors, the company has a relatively small but growing presence in the market. However, the company’s focus on providing high-quality services and its commitment to customer satisfaction have helped it to build a strong reputation in the market.

The company’s ability to provide integrated logistics solutions, including cargo handling, transportation, and warehousing, has helped it differentiate itself from its competitors. The company’s focus on using technology to improve its operations and provide better services to its customers has also helped it to stay ahead of its competitors.

Strengths

Prominent Player in Integrated Shipping and Logistics Service Provider: Shreeji Shipping Global Limited is a prominent player in the integrated shipping and logistics service provider industry in India. The company has a legacy of more than three decades in the shipping and logistics industry with prominent experience in cargo handling, transportation, fleet chartering, equipment rentals, and other port services.

Strong Fleet and Equipment: The company has a strong fleet of more than 80 vessels, including barges, mini-bulk carriers, tug boats, and floating cranes, and more than 370 earthmoving equipment, including material handling machines, excavators, pay loaders, tippers, trailers, tankers, and other vehicles. This enables the company to provide a wide range of services to its customers.

Experienced Promoters: The company is led by its promoters, Ashokkumar Haridas Lal and Jitendra Haridas Lal, who have a combined experience of more than sixty years in the shipping and logistics industry.

Weaknesses

Dependence on Certain Customers: The company depends on certain customers that contribute significantly to its revenue from operations. This dependence on a few large customers makes the company vulnerable to fluctuations in their business.

Financial Profile

Declining Revenue: Shreeji Shipping has witnessed a decline in revenue over the past two years. From INR 8273.3 m in FY23, its revenue fell to INR 6104.5 m in FY25. Loss of an Oil & Gas customer (due to insourcing) and lower demand for floating cranes have been cited as the key reasons.

Strong margin expansion: The company’s operating margins (EBITDA margins) have expanded over the past two years, from 22.8% to 33%. Among other things, higher utilization at its dry-docking facility and lower repair and maintenance expenses have been the key reasons.

Table: Key Financials

Particulars	FY 2023	FY 2024	FY 2025	CAGR
Total Income (₹ in million)	8273.29	7361.74	6104.5	-14.10%
Revenue from Operations (₹ in million)	8269.97	7310.03	6076.13	-14.30%
Profit after tax (PAT) (₹ in million)	1188.85	1245.12	1412.37	9.00%
PAT Margin (%)	14.38%	17.03%	23.24%
EBITDA (₹ in million)	1887.13	1978.91	2006.82	3.10%
EBITDA Margin (%)	22.82%	27.07%	33.03%
Return on Equity (RoE) (%)	58.17%	43.61%	42.91%
Return on Capital Employed (%)	38.05%	35.33%	28.09%
Net Operating Cash Flows (₹ in million)	1527.01	1585.58	1387.89
Fixed Tangible Asset Turnover Ratio (in 10. Times)	2.29	1.97	1.55
Debt to Equity Ratio (in Times)	0.69	0.5	0.75
Debt Service Coverage Ratio (in Times)	2.84	7.6	15.49
Current Ratio (in Times)	1.06	1.5	0.95
Volume of Cargo Handled (in MMTs)	13.87	13.78	15.71
Volume of Cargo Transported (in MMTs)	2.96	2.74	2.49
Number of Customers served	96	102	106

Source: RHP