About Paradeep Parivahan Limited

Business Overview

Paradeep Parivahan Limited (PPL) was incorporated in 2000 and specializes in logistics and transportation services primarily within Paradip Port. The company provides cargo handling, port operations, intra-port transportation, and logistics solutions for a wide range of industries. PPL has grown into a multimodal transport operator (MTO), offering services such as container operations, sea and road transport, warehousing, and custom clearance.

The company operates a large fleet of heavy earth-moving equipment, including excavators, loaders, and trailers, ensuring smooth cargo movement. It has expanded its business through partnerships with major industrial clients like IFFCO for heavy machinery and logistics support.

PPL’s core services include:

• Stevedoring: Loading and unloading vessels.
• Intra-port & intra-mines transportation: Moving cargo within ports and mines.
• Rack & truck handling: Loading/unloading services for rail and road transport.
• Fertilizer bagging & rake loading: Bulk packaging and transportation for fertilizer companies.
• Earth-moving, reclamation, and stone pitching work: Supporting construction and infrastructure projects.
• Railway siding maintenance: Ensuring smooth rail cargo handling operations.

PPL aims to be a one-stop logistics and supply chain provider, focusing on technological advancements, efficiency, and cost savings for its clients. Its mission is to enhance customer supply chains through innovation, quality service, and reliability. The vision is to become a market leader in logistics and supply chain management by offering world-class solutions.

As on February 20, 2025, Company has 1,1124 employees on payroll. The Banker to the Company is Bank of India.

Industry Analysis

Service Industry
India’s service sector has expanded significantly since the 1990s, driven by economic reforms and a shift toward a knowledge-based economy. It contributes over 50% to the GDP and saw 9.1% growth in FY23. The sector accounted for 57% of total Gross Value Added (GVA) in FY24 (April-September), with IT, banking, and finance generating nearly half of the 8.12 million new jobs in FY23.

India ranks first in FDI inflows in services, supported by initiatives like Smart Cities, Digital India, and Clean India. In December 2023, services exports grew 1.3% to $31.6 billion, driven by software, business, and travel services, while imports declined by 1.2%, leading to record net earnings of $16 billion. The services sector GVA increased by 11.43% YoY in FY24, with the IT and business services market projected to reach $19.93 billion by 2025.

India's digital economy is expected to hit $1 trillion by 2025, with the software service industry projected to reach $1 trillion by 2030. Implementation of GST has streamlined the tax structure, creating a unified national market and reducing costs. Supported by digital transformation and pro-business reforms, India’s services sector is poised for sustained growth.

Indian Ports

Maritime transport handles 95% of India’s trade by volume and 70% by value. India has 12 major and 200+ minor and intermediate ports, with plans under Sagarmala to develop six new mega ports. The country ranks as the 16th-largest maritime nation, with a 7,516.6 km coastline.

The government has facilitated 100% FDI under the automatic route for port and harbour projects, offering a 10-year tax holiday for enterprises involved in port development. From April-January 2024, key ports handled 677.22 million tonnes of cargo, up from 446.50 million tonnes in April-October 2022. India's merchandise exports stood at $451 billion in FY23, up from $417 billion the previous year.

Operational efficiency is improving through mechanization, deeper drafts, and faster cargo evacuations, positioning India’s ports as a critical driver of trade growth

Business Strengths

1. Robust Fleet & Infrastructure: A well-maintained fleet of trucks ensures reliable and timely deliveries, supported by a strong logistics infrastructure capable of handling large cargo volumes efficiently.

2. Comprehensive Logistics Solutions: As a multimodal transport operator, the company provides a wide range of logistics services, including cargo handling, port operations, and intra-port transportation. These solutions enhance service quality, cost efficiency, scalability, and supply chain visibility for clients across various industries.

3. Strategic Partnerships: Collaborations with third-party transportation providers expand service capabilities, ensuring greater flexibility in meeting customer demands

Business Strategies

1. Steady Growth & Market Adaptation: Since its inception in 2000, the company has expanded its operations, modernized equipment, and significantly increased its workforce to stay competitive in the evolving cargo handling industry.

2. Strategic Management & Cost Efficiency: A robust management team focuses on business development, strategic planning, and operational efficiency. Cost reductions are prioritized and passed on to clients, with a philosophy of profitability through higher volumes rather than higher margins.

3. Leadership & Industry Expertise: Led by promoter Khalid Khan, with 23 years of industry experience, the company has strengthened its presence in freight and forwarding, project logistics, and heavy-lift cargo handling. His expertise in operations, sales, and marketing has driven expansion and business growth.

4. Diversification & Expansion: Beyond port operations and logistics, the company is expanding into railway siding operations, infrastructure development, and industrial fabrications to navigate increasing market competition

Business Risk Factors and Concerns

1. Revenue Concentration Risk : The top 10 customers contribute over 97% of total revenue, making business heavily reliant on a few clients. Loss of any major client could significantly impact revenue, profitability, and financial stability. While new customers are continuously added, continued dependence on a limited customer base poses risks.

2. Competition from Group Entities : A promoter-related group company operates in the same business sector without a non-compete agreement. This creates potential conflicts of interest, with the risk of business favoritism and increased competition, which could affect financial performance and market share.

3. Dependence on Transportation Infrastructure : Operations rely on India's road, rail, and water transport networks, making them vulnerable to political unrest, weather conditions, natural disasters, road construction, and accidents. Disruptions could lead to delays, increased operational costs, cargo damage, financial liabilities, and reputational loss, ultimately affecting business growth.

Paradeep Parivahan Limited faces key risks, including revenue dependency on a few major clients, competition from group entities, and vulnerability to transportation infrastructure disruptions. These factors could impact profitability, business growth, and operational efficiency.