About Blue Water Logistics Limited

Business Overview

Blue Water Logistics is engaged in providing logistics and supply chain solutions, including freight forwarding, custom clearance, and transportation handling services. The company is a registered Multimodal Transport Operator under the Multimodal Transportation of Goods Act, 1993, and operates from its registered office in Hyderabad, with branch offices in Chennai, Delhi, Jaipur, Visakhapatnam, and Thane.

The company primarily serves clients involved in import and export of commodities across industries such as confectionery, chemicals, crockery, natural stones, textiles, electronics, and fitness equipment. Services include arranging commercial vehicles, air freight, rail transport, and warehouse/custom freight station facilities. As of March 31, 2025, it owns 25 commercial vehicles, with plans to purchase 20 additional vehicles.

Established in 2010 as a partnership firm under the name Blue Water Logistics by Mr. Laxmi Narayan Mishra and Mr. Lalit Panda, the business was later led by Ms. Madhusmita Mohanty and Ms. Supriya Mishra from 2017. Over the years, it has expanded its footprint across Indian states including Telangana, Gujarat, Maharashtra, Rajasthan, Andhra Pradesh, Tamil Nadu, Delhi, Punjab, Karnataka, Uttar Pradesh, Madhya Pradesh, and Odisha, and internationally in Singapore and the UAE.

The company is affiliated with global logistics platforms like JCtrans and Global Logistics Alliance, enabling issuance of house bills of lading for international shipments. It is a valid participant under the FIATA Group Bond Programme, meeting the Federal Maritime Commission (FMC) financial responsibility requirements through Southwest Marine and General Insurance. Additional memberships and accreditations include:

• Allied member of the Federation of Freight Forwarders’ Associations in India

• ISO 9001:2015 certification for quality management in logistics

• IATA accreditation for handling international air cargo

The company attributes its consistent growth to the industry expertise and leadership of its promoter directors. As of March 31, 2025, the Company has a strength of 83 employees (including executive directors) on its payroll, distributed across various locations which looks after the different aspects of the business like sales and marketing, finance, logistics, customer support and legal. The Banker to the Company is Union Bank of India.

Industry Analysis

Indian Logistics Industry: A Critical Growth Enabler

The logistics sector plays a pivotal role in India’s economic development, supporting the seamless movement of goods and services across vast geographical regions. As the country targets a GDP of US$ 5.5 trillion by 2027 and US$ 26 trillion by 2047, transforming logistics infrastructure is crucial for realising this growth. The sector underpins vital industries—from manufacturing and agriculture to e-commerce—enabling competitiveness, efficiency, and nationwide economic integration.

Economic Importance and Sector Evolution

India’s economy, valued at US$ 3.7 trillion in 2023, has demonstrated resilience and strong growth, especially post-pandemic. The government’s push for manufacturing under the ‘Make in India’ initiative positions the country to become a global manufacturing hub. This shift demands a modernised, technology-driven logistics ecosystem.

Over the past five years, India has climbed to 38th on the Logistics Performance Index, reflecting progress in infrastructure, ease of business, and technology adoption. Initiatives like GST, the National Logistics Policy, and the creation of a dedicated logistics division within the Ministry of Commerce are accelerating sector reforms. Innovations such as GPS, RFID, and digitalisation are enhancing supply chain efficiency and cost-effectiveness.

Sector Snapshot and Future Potential

The Indian logistics sector is one of the largest globally and contributed 13–14% to GDP while employing over 22 million people. It's projected to generate 10 million more jobs by 2027. Currently, 66% of freight movement relies on road transport, followed by rail (31%), with minimal shares for sea (3%) and air (1%).

The market reached US$ 435 billion in FY22, recovering strongly from the pandemic, and is expected to grow to US$ 591 billion by FY27. While organised players made up just 5.5–6% of the sector in FY22, their share is forecasted to grow to 12–15% by FY27, driven by scale, integrated service offerings, and investments in tech-led logistics solutions.

Key Growth Drivers

• Enhanced Connectivity & Cost Efficiency: Integrated logistics reduces delays, optimises production, and lowers costs.

• Tech Adoption: Embracing digital tools is boosting productivity and operational transparency.

• Employment & Economic Integration: With rising employment and regional connectivity, logistics fosters national economic cohesion.

• Support for Trade & Manufacturing: Efficient logistics is vital for India’s aspirations to become a global trade and manufacturing hub.

Business Strengths

1. Strong Client Retention and Repeat Business
A well-established client base contributes significantly to revenue, with repeat customers accounting for 85.48% (FY25), 93.27% (FY24), and 91.66% (FY23) of total revenue from operations. Long-term client relationships, built through tailored logistics solutions and consistent service quality, provide a competitive edge in the logistics sector.

2. Experienced Leadership
Led by Mr. Laxmi Narayan Mishra (13+ years) and Mr. Lalit Panda (7+ years), the promoter directors bring deep industry expertise. Their strategic insight in areas such as business development, competitive analysis, and supply chain management drives company growth and market adaptability.

3. Diverse Industry Clientele
As of March 31, 2025, services have been provided across multiple industries including chemicals, confectionery, crockery, pharma, paper, automobiles, textiles, electronics, fitness equipment, and agriculture. New client additions in FY25, FY24, and FY23 were 211, 209, and 143 respectively, contributing to 14.52%, 6.73%, and 8.34% of total revenue from operations.

4. Comprehensive Logistics Offerings
Registered as a Multimodal Transport Operator, the company delivers end-to-end logistics solutions including ocean freight forwarding, customs clearance, transportation, container handling, and fumigation services. The integrated service model ensures operational efficiency and flexibility across client supply chains.

5. Expansive Domestic and Global Network
Operational coverage spans key Indian states and global markets like Singapore and UAE, supported by international logistics partnerships and agency arrangements. This network enables cross-country logistics services, enhancing global service reach and responsiveness.

Business Strategies

1. Strengthening Operational Controls for Timely Delivery
₹1,051.73 lakhs from net proceeds allocated for acquisition and body-building of 20 commercial vehicles to reduce reliance on outsourced fleets. Vehicle ownership enhances delivery reliability, cost efficiency, and peak-season responsiveness, supported by national permits for seamless movement.

2. Building Strong Supplier and Customer Relationships
Long-standing ties with strategic suppliers and clients established through consistent communication and trust. Effective relationship management ensures resource availability, quality consistency, and contributes to operational efficiency and business growth.

3. Commitment to Service Quality
Certified under ISO 9001:2015, with a focus on high service standards. A strong quality system fosters repeat business, brand reputation, and long-term sustainability.

4. Expanding Sales Volume through Market Penetration
With Telangana contributing 41.22% in FY25, efforts are directed toward geographical expansion to reach new markets. Targeted offerings for domestic import-export clients support volume growth, client diversification, and revenue enhancement.

Business Risk Factors and Concerns

1. High Dependence on Ocean Freight Services
Ocean freight contributed 83.03% (FY25), 76.26% (FY24), and 84.32% (FY23) to operating revenue. Disruptions due to natural disasters, labor unrest, or port issues could severely impact business continuity and profitability.

2. New CHA License Risk
A Customs House Agent (CHA) license was obtained on February 6, 2025. Delays in custom clearances or non-renewal of the license may cause delivery disruptions and increased reliance on third parties.

3. Customer Disintermediation in B2B Logistics
B2B clients, contributing over 40% of revenue, may shift to in-house logistics, reducing demand for third-party services.

4. Geographic Revenue Concentration
Operations are heavily concentrated in Telangana, Gujarat, and Maharashtra. Localized disruptions or regulatory changes in these regions could materially affect revenues.

5. Unverified Cargo Risks
Cargo contents are not physically verified before loading, posing risks related to illegal or hazardous materials, with potential legal and reputational consequences.

6. Asset-Light Dependency on Vendors
The asset-light model depends on third-party service providers for transportation and handling. Vendor inefficiencies or failures may impact service quality and client trust.

7. Road Transport Vulnerability
Significant reliance on road networks increases exposure to accidents, political unrest, and weather conditions, potentially causing delays and cargo damage.

8. Infrastructure Reliance in Key States
Success is linked to the quality of infrastructure in key states. Any deterioration or limitations in roads, ports, or warehouses may hinder expansion and service reliability.

The company relies heavily on ocean freight services (over 75% of revenue), making it vulnerable to disruptions in this segment. Its recent entry into Custom House Agent (CHA) operations introduces risks tied to custom clearance delays. A major share of revenue comes from B2B clients in logistics, who may shift to in-house solutions. The business is also regionally concentrated in Telangana, Gujarat, and Maharashtra, and follows an asset-light model, depending on third-party vendors. Additionally, risks include handling unverified cargo and reliance on road transport networks.