Western Carriers (India) Limited is the largest private, multi-modal, rail-focused, 4PL asset-light logistics company in India in terms of container volumes in Fiscal 2022. Their domestic and EXIM market share, based upon container volumes handled, was 7% and 3%, respectively, in Fiscal 2022. Company's 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 provide end-to-end, customised, multi-modal logistics solutions across the supply chain integrating road, railway, water and air logistics along with a bespoke suite of value-added services.
Strengths And Risks
+ Experience in delivering customised solutions: Western Carriers is one of the few players in the Indian logistics industry with the capability to deliver cost-efficient, time bound and bespoke solutions. They provide integrated, customised, end-to-end services across the logistics value chain and this is an inherent entry barrier in the industry.
+ Integrated multi-modal 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 customers’ distribution centres and enabling regular and assured deliveries with reduced transit time and lower costs.
+ Strong customer relationships: Company serves a diverse base of over 1,100 customers. In Fiscal 2022, 80% of revenues originated from customers who had been transacting with them for over three years and customer retention rate for top 10 customers was 100%. They maintain relationships with industry leaders across varied sectors such as metals and mining, FMCG, pharmaceuticals, chemicals, oil and gas, utilities, and others (which includes building material, textile, power, electrical equipment and retail).
+ Scaled, asset-light business model : Company operates primarily an asset-light business model wherein they do not have ownership of assets and majority of the infrastructure required for operations is procured through leases with network partners, giving them control over the capacity, availability and fleet.
- Key customer risk: Company depends on certain key customers for revenues, particularly in the metals and FMCG industries. Business is highly dependent on the performance of these industries.
- Dependence on thrid party vendors: Company depends on their network partners, third-party service providers and vendors/suppliers in certain aspects of operations and unsatisfactory services provided by them or failure to maintain relationships with them could disrupt operations.
- Government owned clientele: Company has a long-standing relationship with a leading Indian rail container logistics provider, which is currently controlled by the Government. If there is a change in control in this Indian rail container logistics provider, it could adversely affect its relationship with it.
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