CJ Darcl Logistics IPO

CJ Darcl Logistics Limited IPO Strengths

Pan-India Integrated Logistics Leadership

CJ Darcl has scaled its operations to become a diversified logistics company and one of the largest players in domestic B2B road transportation by Fiscal 2025 revenue. It offers comprehensive, end-to-end multimodal solutions across road, rail, air, and W&D. Its pan-India network includes 202 branches and access to over 955,000 partnered fleet vehicles, enabling efficient, timely service across 6,691 locations.

Dynamic Asset-Right Business Model

The Company utilizes a dynamic ‘asset-right’ model, balancing selective asset ownership (including over 2,400 containers and 1,100+ owned/leased vehicles) with the operational flexibility of an extensive vendor network of over 554,000 business partners. This strategy minimizes capital expenditure requirements, mitigates operational risks, and ensures high efficiency, scalability, and cost-optimized service delivery across its portfolio.

Robust Parentage and Experienced Leadership

Backed by its Corporate Promoter, the globally established CJ Logistics Corporation, CJ Darcl benefits from financial strengthening, technology integration, and governance aligned with global standards. The Company is further supported by well-established Promoters, an experienced management team, and a dedicated employee base of nearly 6,000 individuals, with 792 having over ten years of tenure.

Long-Standing and Diverse Customer Base

CJ Darcl maintains multi-decade relationships with major Indian public and private enterprises, demonstrating operational reliability. This depth provides a stable revenue base, with 83.01% of Fiscal 2025 revenue from contracts lasting over one year. The Company serves 2,277 customers across diverse sectors—including metals, chemicals, and FMCG—reducing concentration risk and supporting service cross-selling.

Technology-Driven Customised Solutions

The Company leverages robust technology, including proprietary Freight Intelligence for optimized routing and dynamic pricing. It utilizes a cloud-native Transport Management System (MoveX) and its Corporate Promoter’s advanced Warehousing Management System (WMS) for real-time tracking, end-to-end visibility, and enhanced vendor self-service. This foundation delivers customized, cost-efficient, and high-quality logistics solutions.

More About CJ Darcl Logistics Limited

CJ Darcl Logistics Limited is a leading logistics company with over 39 years of operational experience, providing integrated multimodal logistics and warehousing and distribution services to enterprise clients across India and international markets. It operates as a subsidiary of CJ Logistics Corporation, one of South Korea’s largest logistics companies by revenue. CJ Logistics Corporation, listed on the Korea Exchange, reported consolidated sales of KRW 12,116,761.15 million (USD 8,196.25 million) for the year ended December 31, 2024, and operates in 38 countries offering services such as contract logistics, freight forwarding, express parcel delivery, and supply chain management.

Service Portfolio

CJ Darcl has evolved into a comprehensive logistics service provider, offering:

• Integrated multimodal logistics including full truck load (FTL), rail transportation, air cargo, coastal shipping, project logistics, and freight forwarding.

• Warehousing and distribution solutions (W&D), encompassing built-to-suit, multi-sector, and multi-customer models.

As of March 31, 2025, CJ Darcl operated through 202 branch offices, 6 administrative offices, 14 warehousing facilities, and 1 railway stock yard, covering 6,691 locations nationwide.

Operational Strengths

The company leverages its strengths through:

• Extensive route coverage and reliable vehicle availability.

• Integrated multimodal services ensuring flexibility across transportation modes.

• Proprietary vendor and freight databases, providing market intelligence and operational insights.

• Industry-specific domain expertise and tailored logistics solutions.

• Large network of business partners, comprising 955,023 vehicles from 554,781 partners.

CJ Darcl follows a dynamic ‘asset-right’ business model, deploying owned, leased, or partner-sourced vehicles, ensuring capital efficiency and scalability.

Customer Base

CJ Darcl serves 2,277 customers across diverse sectors such as metals, chemicals, FMCG, automotive, agriculture, and construction. Major clients include Tata Steel, Arcelormittal Nippon Steel India, Welspun Corp, Godrej Consumer Products, and KRBL. Long-term contracts contribute significantly to revenue, with ~83% of FY2025 revenue derived from contracts of at least one year.

Technology & Innovation

CJ Darcl has developed a robust digital infrastructure supporting real-time visibility, system integration, and operational scalability. Through global innovations from its parent company, the company leverages automation, artificial intelligence, and digital freight systems to enhance efficiency.

Its multimodal operations are supported by over 1,800 specialized containers and 14 strategically located warehouses, making CJ Darcl one of India’s most integrated and technology-driven logistics providers.

Industry Outlook

The Indian logistics industry is poised for sustained growth, driven by economic expansion, infrastructure investment, and evolving supplychain requirements. The overall logistics market in India reached USD 228.4 billion in 2024 and is projected to grow at a CAGR of ~6.5% from 2025 to 2033, reaching approximately USD 428.7 billion by 2033.

Growth Drivers

• Expansion of ecommerce and organised retail is boosting demand for faster, more reliable logistics and warehousing services.

• Government initiatives like national logistics policies, multimodal corridors, and infrastructure investments are improving efficiency and reducing costs.

• Manufacturing revival, including PLI schemes, and growth in sectors like automotive, metals, and FMCG are creating higher freight tonnages and logistics volumes.

Key Figures & Values

• The road freight transport segment in India was estimated at USD 153.9 billion in 2025, with a projected CAGR of 8.95% to reach USD 236.29 billion by 2030.

• For warehousing, the Indian market was valued at USD 58.1 billion in 2024 and is expected to grow at a CAGR of ~10.3% between 20252030.

Outlook for Multimodal & W&D Services

For companies offering integrated multimodal logistics (truck, rail, air, shipping) and warehousing & distribution services (W&D), opportunities are significant:

• Multimodal logistics: Greater emphasis on rail and coastal shipping to decongest roads and reduce costs will benefit integrated transport services.

• Warehousing & distribution: As supplychain models become more complex with omnichannel retail, 3PL demand, and valueadded services, the W&D segment is expected to grow faster than traditional logistics.

How Will CJ Darcl Logistics Limited Benefit

• CJ Darcl Logistics Limited can capitalise on the growing Indian logistics market, projected to reach USD 428.7 billion by 2033.

• Increasing demand from ecommerce and organised retail will drive higher volumes for its multimodal transport and W&D services.

• Government initiatives in infrastructure and multimodal corridors will reduce operational costs and improve efficiency.

• Growth in manufacturing sectors like automotive, metals, and FMCG will create additional freight opportunities.

• Expansion of road, rail, and coastal transport aligns with the company’s integrated multimodal capabilities.

• Rising demand for 3PL and valueadded warehousing services will support CJ Darcl’s W&D segment.

• Technology-driven operations and strong partner networks allow scalable and flexible service offerings.

• Long-term contracts with enterprise clients will benefit from increasing logistics and warehousing needs.

• The company can leverage its asset-right model to maintain capital efficiency while expanding service capacity.

Peer Group Comparison

Name of the Company	Face Value (₹)	Revenue (₹ million)	EPS FY 2025 (Basic) (₹)	EPS FY 2025 (Diluted) (₹)	NAV (₹)	P/E FY	RoNW (%)
CJ Darcl Logistics Limited	12.00	51,611.09	8.22	8.22	66.27	NA	12.40
Peer Group
Transport Corporation of India Limited	2.00	44,917.76	53.43	53.32	281.27	22.44	19.14

Key Strategies for CJ Darcl Logistics Limited

Expanding Business and Customer Penetration

CJ Darcl Logistics Limited, a large domestic B2B road transport player, is expanding across industries like FMCG and electronics, and deepening customer relationships. They are adopting containerised vehicles, specialised services, and cost-optimisation efforts like in-house fuel units and higher-capacity vehicles to drive growth.

Growth Through Integrated Multimodal and Specialised Services

The company is strengthening its integrated multimodal services by leveraging a relationship with the Ministry of Railways and a large inventory of specialised containers. CJ Darcl is expanding its offerings into project logistics, freight forwarding, air cargo, and coastal shipping/NVOCC to capture market share across different transport modes.

Strategic Investment, Automation, and Cross-Selling

Supported by a significant investment from Corporate Promoter CJ Logistics Corporation, the company plans strategic expansion in the warehousing and distribution (W&D) business. They will implement the T.E.S. automation model (Technology, Engineering, System) to enhance efficiency, reduce human error, and cross-sell services to existing customers.

Strategic Branch Network Expansion

CJ Darcl is expanding its branch network, increasing locations to 202 to align with growing industrial activity and transportation corridors. This expansion, leveraging an ‘asset-right’ model, improves market access, operational efficiency, and customer relationships, supporting profitable volume growth and strengthening its pan-India presence.

Focus on Technology and Automation

The company intends to automate key processes using a cloud-based platform to boost efficiency and reduce costs. Key technology projects include a WhatsApp-based e-bidding mechanism, AI for route optimisation, and a digital marketplace for its partner network, alongside a new feature for contract pricing control in its TMS (MoveX).

Clean Energy and Sustainable Growth

CJ Darcl aims for sustainable growth by integrating environmental practices, focusing on fleet transition to clean energy like electric and LNG-powered commercial vehicles. They plan to improve operational efficiencies through eco-friendly warehouse practices, network flow optimisation, and automation to achieve greener operations.