About Deccan Transcon Leasing Limited

Deccan Transcon Leasing provides end-to-end solutions for freight & shipping services which include domestic logistic of tank containers, Tank fleet management solution, custom clearance and transportation, Non-Vessel Operating Common Carriers (“NVOCC”) services. They are primarily engaged in providing tank containers on lease and logistic & supply chain solutions to clients in various sectors. The company specializes in the transportation of bulk liquids and hazardous chemicals, primarily utilizing tank containers as a mode of transport. One of their key strengths lies in their extensive agency network, built over years of experience in the industry. This network provides them with access to shippers worldwide, enabling them to cater to the logistics needs of clients across the globe. Additionally, they have established a strong network of partners with global coverage, apart from their own Subsidiary and Associate company, allowing them to provide complete, end-toend logistics solutions. Having all tank container services under one roof enables them to offer services tailored to meet specific customer needs. As of July 31, 2024, more than 100 customers have been associated with them for longer than 3 years. They have served more than 884 customers in the last one year. They are a team of more than 84 skilled professionals.

The Company has one subsidiary company namely Deccan Shipping & Logistics SND. BHD (“DSLSB” or “Subsidiary Company”). DSLSB is engaged in the business of providing shipping and logistic services through leased tanks (including leased from them). Further, the Company King Star Freight Private Limited (“KSFPL” or “Associate Company”) have been formed in 2016 where ther Company holds 47.50% stake. It is engaged in business of providing services of Shipping & Logistics services.

SHIPPING INDUSTRY & PORTS IN INDIA
According to the Ministry of Shipping, around 95% of India's trading by volume and 70% by value is done through maritime transport. In November 2020, the Prime Minister, Mr. Narendra Modi renamed the Ministry of Shipping as the Ministry of Ports, Shipping and Waterways. India has 12 major and 200+ notified minor and intermediate ports. Under the National Perspective Plan for Sagarmala, six new mega ports will be developed in the country. The Indian ports and shipping industry play a vital role in sustaining growth in the country’s trade and commerce. India is the sixteenth-largest maritime country in the world with a coastline of 7,516.6 kms. The Indian Government plays an important role in supporting the ports sector. It has allowed Foreign Direct Investment (FDI) of up to 100% under the automatic route for port and harbour construction and maintenance projects. It has also facilitated a 10-year tax holiday to enterprises that develop, maintain, and operate ports, inland waterways, and inland ports.

In FY24, all key ports in India handled 817.97 million tonnes (MT) of cargo traffic, a 4.45% increase from 784.305 million tonnes in FY23. India's merchandise exports in FY23 were at US$ 451 billion from US$ 417 billion in the previous year. The Government has taken several measures to improve operational efficiency through mechanisation, deepening the draft and speedy evacuations.

Investments/Developments
Some of the major recent developments are:

• India has plans to invest US$ 82 billion port projects by 2035. 

• India plans to establish a new shipping company to expand its fleet by at least 1,000 ships in the next decade, aiming to reduce freight costs and capture more revenue from increasing trade, with joint ownership by state-run oil, gas, and fertilizer companies, along with the state-run Shipping Corporation of India and foreign companies, targeting a reduction of at least one-third in foreign freight outgoings by 2047. 

• India’s 12 major ports handled 819.227 million tonnes of cargo in FY24, a 4.45% increase from 784.305 million tonnes in FY23, driven by strong growth in iron ore, raw fertilizer, coking coal, and container shipments, with Jawaharlal Nehru Port Authority handling over half of the total container volumes. 

• The Global Maritime India Summit 2023 to serve as a platform to showcase global best practices, foster investment partnerships and chart a new and bright course for our collective future. 

• FDI equity inflow in the Port industry is US$ 1.63 billion during the period April 2000 to September 2023. 

• Indian ports received cumulative FDI inflow worth US$ 1.63 billion between April 2000-June 2021.

• On March 15, 2024, The Ministry of Ports, Shipping and Waterways approved Rs 645 crore (US$ 77.79 million) for 10 new waterways projects on the Brahmaputra in Assam, enhancing connectivity, boosting river tourism, and facilitating public commute, all under the Sagarmala programme. 

• In March 09, 2024, India's trade in container shipments experienced notable growth, totaling nearly 1.9 million TEUs, marking a 5% increase from January. Mundra Port managed 635,000 TEUs, Nhava Sheva Port handled 565,000 TEUs, and PSA Mumbai processed 158,000 TEUs. 

• Jawaharlal Nehru Port Trust (JNPT) Special Economic Zone (SEZ) became the first of its kind operational port-based multi-product SEZ in India. 

• The Competition Commission of India (CCI) approved Adani Ports and Special Economic Zone's proposed acquisition of 10.40% equity investment in Gangavaram Port in September 2021. The 10.4% equity shareholding will be bought from the government of Andhra Pradesh. 

• APSEZ (Adani Ports and Special Economic Zone) plans to become the world's largest private port company by 2030 and carbon neutral by 2025.

FUTURE OUTLOOK
• Increasing investment and cargo traffic point towards a healthy outlook for the Indian ports sector. Providers of services such as operation and maintenance (O&M), pilotage and harbouring and marine assets such as barges and dredgers are benefiting from these investments. 

• The capacity addition at ports is expected to grow at a CAGR of 5-6% till 2022, thereby adding 275- 325 MT of capacity. 

• Domestic waterways have found to be a cost-effective and environmentally sustainable mode of freight transportation. The government aims to operationalise 23 waterways by 2030. 

• As part of the Sagarmala project, more than 574 projects worth US$ 82 billion (Rs. 6 lakh crore) have been planned for implementation between 2015 and 2035. 

• In Maritime India Summit 2021, the Ministry of Ports, Shipping and Waterways identified a total of 400 projects worth US$ 31 billion (Rs. 2.25 lakh crore) investment potential.

DECCAN TRANSCON LEASING LIMITED COMPETITIVE STRENGTHS
1. Long standing business track record
2. Long-Standing Customer Relationships
3. Seasoned management team with domain expertise supported by a professional workforce
4. Global Coverage through Network of Agents
5. Ability to Provide End-To-End Logistics Solutions

DECCAN TRANSCON LEASING LIMITED STRATEGIES
1. Expanding Fleet Size
2. Expanding Geographic Coverage
3. Expanding their customer base and enhancing relationship with existing clients
4. Expanding Scope of Services
5. Focusing on Technology Upgradation

DECCAN TRANSCON LEASING LIMITED RISK FACTORS & CONCERNS
1. They derive majority of their revenue from leasing and freight and shipping services.
2. They depend on certain key customers for their revenues which include their associate company and group company.
3. The Company does not have Custom House Agent license
4. Their freight & Shipping business is largely dependent on their customer engaged in the Chemical & petrochemical Industry, Chemical businesses and products related thereto.
5. The processing, handling, and storage of oil and hazardous chemical products pose risks to their containers, vessel, products, personnel, and the environment, potentially harming their business operations, financial performance, and cash flow.
6. They are heavily dependent on third party service providers or agents and suppliers to effectively carry on their logistics operations.