About the Company:
Western Carriers Ltd is the largest private, multi-modal, rail focused, 4PL asset-light logistics company in India in terms of container volumes handled/operated by private players in Fiscal 2023.
Company’s domestic and EXIM market share, based upon container volumes handled, was 6% and 2%, respectively, in Fiscal 2023.
Company has several years of experience in road, rail and sea / river multi-modal movement for domestic as well as EXIM cargo in and out of India.
Company operates on a scalable, asset-light business model which enables us to provide differentiated 3PL and 4PL solutions.
Company has long-standing relationships with customers across varied sectors such as metals, fast moving consumer goods (“FMCG”), pharmaceuticals, chemicals, engineering, oil and gas and retail.
Company’s History:
The Promoter, Rajendra Sethia, established his logistics business as a rail-focused logistics business in 1972, which was later acquired by the Company in 2013.
Over the last 50 years, the business has continued to evolve to provide end-to-end, customised, multi-modal logistics solutions across the supply chain integrating road, railway, water and air logistics along with a customised suite of value-added services.
Graphical Representation of Company’s multi-modal logistics solutions and services:
Company’s Growth Metrics:
Company is one of the Largest associate partner of an Indian rail container logistics:
Company is one of the largest platinum and the largest associate partner of an Indian rail container logistics provider in terms of railway TEUs, in Fiscal 2023.
Approximately 6% of the domestic railway TEUs and approximately 4% of the export-import market railway TEUs of this Indian rail container logistics provider business was handled by us in Fiscal 2024 making us the only associate partner of this Indian rail container logistics provider which provides substantial volume (4% in Fiscal 2024) of EXIM business.
Company’s Logistics Infrastructure:
In addition to hired equipment and leased facilities, Company owns logistics infrastructure such as commercial vehicles, heavy equipment, and shipping containers.
As of March 31, 2024, Company had four zonal offices, over 50 branch offices and 16 warehouses, all of which we leased.
As of that date, Company owned over 400 GPS-enabled heavy commercial vehicles, over 100 pieces of heavy equipment (including 32 reach stackers) and over 500 shipping containers.
Through arrangements with our network partners and third-party service providers, we have the capability to offer jumbo rakes (which can transport 1,500-2,000 metric tons of cargo in one go) and mini rakes (20 wagons) to our customers. These offerings, combined with our fleet of leased and owned commercial vehicles, enable us to seamlessly bridge road and rail movements.
Company’s Key Customers:
Percentage wise Revenue Contribution from Various Sectors:
Management Team:
- Mr. Rajendra Sethia (Designation: Chairman and Managing Director)
- Mrs. Kanishka Sethia (Designation: Whole-time Director and Chief Executive Officer)
Objectives of the Issue:
Offer For Sale: (Rs.92.88 cr)
- Company will not receive any proceeds from the Offer for Sale. The Selling Shareholders will be entitled to their respective portion of proceeds of the Offer for Sale.
Fresh Issue: (Rs.400 cr)
- Prepayment or scheduled re-payment of a portion of certain outstanding borrowings availed by our Company;
- Funding of capital expenditure requirements of our Company towards purchase of: (i) commercial vehicles; (ii) 40 feet specialised containers and 20 feet normal shipping containers; and (iii) reach stackers.
- General corporate purposes.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Prepayment or scheduled re-payment of a portion of certain outstanding borrowings availed by our Company | 163.5 cr |
| Funding of capital expenditure requirements of our Company towards purchase of (i) commercial vehicles; (ii) 40 feet specialised containers and 20 feet normal shipping containers; and (iii) reach stackers | 151.7 cr |
Positives for the Company:
Experience in delivering customised, end-to-end services and executing complex and customised projects.
- Company is one of the few players in the Indian logistics industry with the capability to deliver cost-efficient, time bound and customised services and solutions.
- Company’s services and solutions include large container movement, logistics and long-haul deliveries, vendor-coordination across the supply chain along with value-added services such as product packaging, cargo handling, customs clearance, pre-shipment inspection, containerization, in-plant logistics, just in time inventory management and warehouse planning.
Company provides End-to-End services across the logistics value chain to our customers.
- Company provides integrated, customised, end-to-end services across the logistics value chain to our customers. Such customised services have inherent entry barriers.
- Company’s expertise in providing end-to-end logistics and customised solutions to customers provides us with a significant competitive advantage.
- With our end-to-end portfolio of logistics offerings and our pan India network, we are able to provide customised solutions to our customers that are tailored based on our experience, and understanding of, our customers’ needs and the nature of the goods being handled.
- Company believes that this leads to repeat business and a higher wallet share, which in turn helps create an entry barrier for our competitors.
Comprehensive and integrated multi-modal, end-to-end logistics solutions.
- Company’s operations are B2B focused and provide integrated and seamless connectivity for movement of goods from one mode of transport to another thereby facilitating the last mile connectivity to our customers’ distribution centres and enabling regular and assured deliveries with reduced transit time and lower costs.
Strong customer relationships with a diverse customer base.
- As of March 31, 2024, Company served a diverse base of 1,647 customers.
- Company’s integrated, solution-oriented and customised services allow us to cater to our customers’ logistics requirements resulting in our ability to maintain long-standing relationships with industry leaders across varied sectors such as metals and mining, FMCG, pharmaceuticals, chemicals, oil and gas, utilities and others.
Strategically positioned to capitalise on a fast-growing logistics market in India.
- Company is the largest private, multi-modal, rail focused 4PL asset-light logistics company in India in terms of container volumes handled/operated by private players in Fiscal 2023.
- Company provides integrated, customised, end-to-end services across the logistics value chain to our customers. Such customised services have inherent entry barriers.
- Company believse that, given our execution capabilities and ability to provide one-stop/single-window, end-to-end and integrated customised logistics solutions in a market with inherent entry barriers, we are in an advantageous position to benefit from certain favourable trends and initiatives in the Indian logistics industry.
Financials of the Company:
| (in Crores) | FY 22 | FY 23 | FY 24 |
|---|---|---|---|
| Revenue | 1475.7 | 1637.8 | 1691.4 |
| Net Profit | 60.9 | 70.8 | 79.9 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Western Carriers Ltd | 5 | 10.21 | 16.84 | 20.17% | 50.62 |
| Container Corporation of India Ltd | 5 | 20.22 | 47.73 | 10.42% | 193.87 |
| Mahindra Logistics Ltd | 10 | (7.60) | (62.93) | (10.33%) | 69.99 |
| TCI Express Ltd | 2 | 34.27 | 32.48 | 18.71% | 183.57 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 13th September 2024 |
| Issue Closes on | 19th September 2024 |
| Issue Price | Rs.163 -172 |
| Face Value | Rs.5 |
| Retail Category Allocation | 35 % |
| Minimum Lot | 87 Shares |
| Minimum Investment | Rs.14,964 |
| Issue Constitutes | 28.10 % |
| Issue Size | Rs.493 cr ($ 59 million ) |
| Market Cap | Rs.1754 cr ($ 209 million) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 2,32,55,814 (Rs. 400 cr) |
| Equity Shares Offered (OFS) | 54,00,000 (Rs. 92.88 cr) |
| Total Equity Shares Offered (Fresh + OFS) | 2,86,55,814 (Rs.493 cr) |
| Equity Shares Prior to the Issue | 7,86,99,400 |
| Equity Shares after the Issue | 10,19,55,214 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) | Debt Equity Ratio (D/E) |
|---|---|---|---|---|
| 10.21 | 16.84 | 20.17% | 50.62 | 0.67 |
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| Should You Subscribe or Not ? (Markets Guruji’s View) |
|---|
| Western Carriers Ltd is India’s largest private, multi-modal, rail-focused, 4PL asset-light logistics company in terms of container volumes handled by private players in Fiscal 2023. The company managed a 6% market share in the domestic segment and 2% in the EXIM (export-import) segment, showcasing its strong presence in the Indian logistics sector.
Western Carriers Ltd has established long-standing relationships with customers across diverse industries, including metals, FMCG, pharmaceuticals, chemicals, engineering, oil and gas, and retail. The company stands out in the logistics industry with its ability to provide cost-efficient, time-bound, and customized solutions. It offers end-to-end services across the logistics value chain, ensuring seamless operations for its clients. Its diverse customer base, paired with strong relationships, positions Western Carriers Ltd as a reliable logistics partner. Investors may find the company’s IPO appealing for both decent listing gains and long-term growth, given its leading market position, multi-sector client base, and focus on efficient logistics solutions. |
Important Dates:
| Finalization of Basis of Allotment | on or Before 19th September 2024 |
| Initiation of Refunds | on or Before 20th September 2024 |
| Credit of Equity Shares: | on or Before 20th September 2024 |
| Listing Date: | on or Before 23rd September 2024 |
| Company Contact Info: |
|---|
| Western Carriers Ltd 2/6 Sarat Bose Road 2nd Floor, Kolkata 700 020 West Bengal, India. Tel: +91 33 2485 8519 E-mail: investors@westcong.com Website: www.western-carriers.com |
| Registrar to the Issue: |
|---|
| Link Intime India Private Limited C-101, 1st Floor, 247 Park L.B.S. Marg Vikhroli West Mumbai 400 083 Maharashtra, India Tel: +91 81 0811 4949 E-mail: westerncarriers.ipo@linkintime.co.in Website: www.linkintime.co.in |
