About Repono Limited

BUSINESS OVERVIEW

Repono Limited specializes in warehousing and liquid terminal services for India’s oil and petrochemical sector, offering a 360-degree solution for the storage of critical petroleum products. Services include consultancy, engineering, operation and maintenance (O&M), and value-added logistics.

Recognized as a leading service provider in the warehousing and oil terminal space, Repono serves top Oil and Petrochemical Companies in India and provides ongoing consulting to a major German petrochemical firm, the world’s largest FFS machinery supplier.

The company manages O&M across the oil value chain, including:

• Crude Oil Terminal operations for a government-owned oil enterprise

• Handling of Petrol, Diesel, ATF, and Ethanol for one of India’s largest crude oil and gas producers

• O&M of a prestigious off-site terminal for a Public Sector Enterprise

• Petrochemical warehousing for clients across the crude oil, natural gas, and public sectors

Repono also manages O&M of the FFS (Form-Fill-Seal) packaging line, the world’s most advanced polymer packaging system, providing a competitive advantage in polymer bagging operations.

Additionally, the company operates the Lube Oil Blending Plant and warehouse for IOCL in Chennai, which is Asia’s largest lube oil facility and a landmark project in the Indian lube oil sector. The comapny have the total strength of 539 Employees by function as at April 30, 2025. The Banker to the company is State Bank of India.

INDUSTRY ANALYSIS

Warehousing and Logistics Sector in India: Industry Analysis

Strategic Importance for India’s Economic Vision

The warehousing, industrial, and logistics (WIL) sectors are pivotal to realizing India’s goal of becoming a US$ 5 trillion economy by FY25. Among the key beneficiaries of the COVID-19 pandemic, this sector witnessed a dramatic surge in its prominence, with its share increasing from 2% in 2020 to 20% in 2021. The shift in consumer behavior—from discretionary to essential online purchases—fueled exponential growth in e-commerce, subsequently driving up demand for efficient logistics and warehousing solutions.

Key Growth Drivers

Several macroeconomic and structural factors are propelling this sector forward:

• Economic growth, rising consumerism, and India’s vast consumer base are driving the rapid expansion of retail and e-commerce.

• The Indian retail sector is anticipated to grow at a CAGR of 9% from 2019 to 2030, reaching over US$ 1.8 trillion.

• Government initiatives such as the creation of Dedicated Freight Corridors, expansion of road and rail infrastructure, and promotion of logistics parks and modern warehouses are improving efficiency and reducing travel times.

• The push for digital transformation through initiatives like Digital India, BharatNet, and the National Logistics Portal is enabling greater transparency and automation across logistics operations.

• The recently launched National Logistics Policy (NLP) aims to reduce logistics costs from 13-14% to single digits of GDP by 2030.

Large global investors and corporations are increasingly partnering with warehouse developers and operators, focusing on expanding their reach and differentiating through scale and infrastructure.

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Logistics Industry Overview

India’s logistics sector is undergoing a significant transformation, driven by technological advancements, e-commerce growth, and value-added logistics services. Evolving from a traditional transport-and-storage model, it now encompasses end-to-end supply chain management, last-mile delivery, predictive analytics, and inventory optimization.

Sector Highlights:

• Contributes approximately 14.4% of India’s GDP.

• Employs over 22 million people, making it a major employment generator.

• Valued at US$ 250 billion in 2021, projected to grow to US$ 380 billion by 2025 at an annual growth rate of 10-12%.

• The government is targeting a reduction in logistics costs to align with global benchmarks, aiming for 10% of GDP.

• The industry remains fragmented, with over 1,000 active players, including domestic companies, global logistics firms, government postal services, and new-age startups focused on e-commerce.

Modern technologies such as Transportation Management Systems (TMS) and Warehouse Management Systems (WMS) are increasingly adopted to improve efficiency, cost management, and customer satisfaction.

Logistics by Mode (FY21):

• Road: 73%

• Rail: 18%

• Water & Air: 5% each

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Warehousing Industry Overview

Warehousing plays a vital role in the global supply chain and is a key enabler of operational efficiency for businesses. The Indian warehousing market is expected to grow from its current size to US$ 34.99 billion by 2027, expanding at a CAGR of 15.64%.

Emerging Trends and Developments:

• Technology-driven solutions and modern Grade A facilities are revolutionizing the warehousing landscape.

• A strong shift towards hub-and-spoke models, automation, and sustainable practices is underway.

• Third-party logistics (3PL) and e-commerce companies are aggressively expanding into tier-2 and tier-3 cities, boosting secondary market demand.

• Grade A warehouses—featuring advanced design, superior materials, and strategic locations—are gaining traction over Grade B legacy structures that often require retrofitting.

Key Statistics:

• In 2021, total warehousing stock across India’s top eight cities rose 21% year-on-year to reach 287 million sq. ft., up from 238 million sq. ft. in 2020.

• Grade A stock accounted for 134 million sq. ft., reflecting a 5-year CAGR of 29.9%.

• Delhi NCR, Mumbai, and Bengaluru together contribute over 50% of India’s warehousing stock.

Demand Drivers:

• 3PL/Logistics providers have consistently led warehouse space demand over the last five years.

• The pandemic-led surge in e-commerce, especially in sectors like grocery, pharmacy, and food delivery, has dramatically increased demand.

• While traditional sectors like Auto & Engineering saw reduced demand during the pandemic, FMCG and retail sectors witnessed robust growth.

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Future Outlook

The warehousing and logistics sector is poised for sustained long-term growth. With continued government focus on infrastructure enhancement, policy reforms, and digitalization, the sector is expected to be a key contributor to India’s economic growth.

Opportunities include:

• Technology integration via AI, ML, and data analytics to enhance efficiency and customer experience.

• Foreign investments, aided by the allowance of 100% FDI in logistics parks and warehouses, are expected to rise as global players tap into India’s expanding market.

Despite challenges such as fragmentation and infrastructure bottlenecks, the future of India’s warehousing and logistics sector remains bright and full of potential.

BUSINESS STRENGTHS

1. Cost Efficiency

• Lower Capital Investment: Minimal need for infrastructure and asset ownership reduces financial risk and supports competitive pricing.

• Variable Cost Model: A flexible cost structure allows effective financial management during market fluctuations.

2. Partnership Network

• Robust Alliances: A strong network of third-party carriers, warehouses, and service providers ensures wide service coverage and consistent quality.

• Negotiation Leverage: Ability to secure favorable terms with multiple partners drives cost efficiency and improved service levels.

3. Customer-Centric Approach

• Tailored Solutions: Customized logistics offerings through integrated partner services address specific client needs.

• Operational Flexibility: Quick adaptability to shifting customer demands or supply chain changes due to a non-asset-heavy model.

4. Innovation and Agility

• Faster Innovation: Freedom from asset constraints enables rapid deployment of new services and solutions.

• Market Responsiveness: High adaptability to changing market dynamics and emerging opportunities.

5. Lower Risk Exposure

• Minimal Asset Risk: Avoidance of risks tied to asset depreciation, maintenance, and obsolescence.

• Stronger Financial Position: Lean operations support financial stability and reduce the need for heavy capital expenditure.

6. Global Reach and Expansion

• Scalable Global Presence: International expansion facilitated through local partnerships, eliminating infrastructure barriers.

• Local Operational Expertise: Access to region-specific knowledge and regulatory compliance through on-ground partners.

BUSINESS STRATEGIES

❖ Improving Sales

1. Organic Growth: Serving all major oil, gas, and petrochemical companies in India, with plans to deepen engagement—e.g., expanding beyond polymer warehousing to crude oil and petroleum terminals for clients like HPCL Mittal.

2. Product Diversification: Expansion into related sectors such as fertilizers, cement, and agrochemicals, leveraging existing operational expertise.

3. Off-Site Warehousing Expansion: Target to build 2 million sq. ft. of warehousing for chemicals and petrochemicals across India, up from the current 0.2 million sq. ft..

4. International Expansion: Global projects identified in Turkey, UAE, and Saudi Arabia, supported by international partners like Schmidt and Aventus.

5. BOO Projects (Build-Own-Operate): Advanced discussions underway for warehousing and oil terminal projects under the BOO model, ensuring long-term business continuity and stable margins.

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❖ Cost Optimization

1. Asset Acquisition: Strategic investment in material handling equipment, racking systems, and warehouse management software to reduce leasing costs and improve margins. Transitioning from leased forklifts and WMS to owned assets for long-term savings.

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❖ Competitive Positioning

• Solid Business Segment: Competing with players like TVS Supply Chain Solutions, Repono has established a niche through a comprehensive service model that includes design, engineering, audits, and off-site warehousing, beyond traditional in-plant services.

• Liquid Business Segment: Competing with legacy firms such as Aegis Logistics, IMC, IOTL, and Arvi Encon, Repono has emerged as a preferred service provider, securing major contracts like the O&M of IOCL's Lube Oil Plant in Chennai (Asia’s second-largest) and the Petroleum Oil Terminal for MRPL in Bangalore.

BUSINESS RISK FACTORS & CONCERNS

1. Dependence on Government Projects
A significant portion of revenue is derived from government-tendered contracts across central, state, and municipal bodies. These are awarded through competitive bidding, and success depends on meeting technical and financial criteria outlined in RFPs/RFQs. Lower bids from competitors or failure to secure contracts may adversely impact performance.

2. Geographic Concentration Risk
Operations are highly concentrated in Karnataka, Punjab, and Gujarat, which collectively accounted for over 90.98% of total revenue in FY25 (₹120,797.83 thousand). Any regional disruption—regulatory, political, or operational—could significantly affect revenue and profitability.

3. Infrastructure Dependency
The cargo handling and express logistics segments rely on the availability and reliability of transportation infrastructure, including road, rail, and port connectivity. Operational performance is vulnerable to any inadequacies or disruptions in the transportation network.

Summary

Repono’s business is exposed to risks associated with government contract dependency, geographic revenue concentration, and logistics infrastructure limitations. These factors could influence project acquisition, operational continuity, and overall financial stability.