About Ritco Logistics Limited:

The Delhi-based Ritco Logistics Limited was established in the year 2001 and is engaged in the
business of providing service logistics services, including transportation of cargo and warehousing
services. The scope of services includes contract logistics, less than truck load (LTL) service, and fleet
rental services. The company has a pan India presence through its 29 branches. It has seven
warehouses and an in-house fleet of 255 trucks and about 1,000–1,200 attached vehicles to support
its operations. We provide tech-enabled 3PL services to different industries ie. Textile, Solar Energy,
Healthcare, Pharmaceuticals, Consumer Durable, FMCG, IT, Telecom, Food Grains, Supplements,
Automotive, e-commerce, etc.

Our goods transportation service business serves a broad range of industries such as Petrochemicals,
Petroleums, Metals, Textiles, Fast Moving Consumer Goods (FMCG), Automobiles, and
Pharmaceuticals, with a major contribution from the Petrochemicals segment. Few of our
esteemed customers include Gail India Limited, Mangalore Refinery & Petrochemicals Ltd., Steel
Authority of India Limited, Indian Synthetic Rubber Private Limited (a joint venture of Indian Oil
Corporation Limited), MCPI Private Limited, Hindustan Unilever Limited, Exide Batteries Ltd.,
Patanjali Parivahan Pvt. Ltd., Indian Oil Corporation Ltd.

1996 Incorporation of RITCO and Offering contract

logistics– 3PL
2005 Servicing 150 locations and Acquired large
petrochemical customers
2013& 2014 Forayed into new segment of LTL services
Moved into Textile segment
2017& 2018 Tie up with IRSFM
• Moved into FMCG segment • Tie up with IRSFM
( Institute of Road Safety & Management ) Owned
Vehicle – 155+ no's
• Moved into FMCG segment Move towards 3PL +
Asset Owned

2020 Aggregator Truck Platform “ TRUCK UP” Created

In 2021 Diversification + Young Fleets(From Conventional

• 25315 Vehicles added on Aggregator Contract Logistics to Integrated Supply Chain
Platform Solutions Provider)
• Tie up with WhatsApp Messenger for auto
communication with Venders Pan India.
• Ritco goes digital - Paperless

KEY INSIGHTS:

• Revenue contribution: In FY2021, total revenues from its operations were Rs. 492 crore, of
which contract logistics service contributed ~87%.
• Dominant Player in Petrochemical Industries: mainly every company is their customer in
this segment (Reliance as a customer from last 22 years).
 • Main business:
• providing Integrate Suppy chain Solution it is a single window to customer providing
solution.

• Business segment: B2B, FTL, LTL, Fleet Opns, Express, Warehousing, Aggregator Platforms.
• Mr. Rajesh Mudaliar has joined RITCO as “Vice President” (Contract Logistics) he has 30+ yrs
of experience in Logistics and SCM.
• 25315 Vehicles On Aggregator Platform and 75000 sq. ft. totally in 4 Warehouse, and
10,80,000+ tpa Quantity Handled Last Year and 450+ Employees.

Business Verticals:
In 3 Business 1)Contract logistics (80-90% of the revenue) , 2) Fleet Management, 3) Warehousing
and Distribution

1) Contract Logistics: ( 80 -90 % of the Revenue)

Ritco is one of the biggest handlers of Dry Cargo in India (Present in 14 states and having 36
branches) . We move a wide variety of products like FMCG, Textiles, and Metals. White
Goods, Agriculture, Pharmaceuticals, Mining, etc. We transport bulk Dry products across
India from various mines in Orissa, Goa, Karnataka, Andra Pradesh & Chhattisgarh. Due to
our extensive experience of over 25 years, we have an in-depth understanding of different
industries. We offer customized solutions in our services. From 1 MT to 1 Lac MT, all types of
products can be transported by all means of road transportation. Our vendor development
team has developed 1200+ associated vendors with 50,000+ associated drivers to serve our
customers.

Our Contract logistics services include.

• Strong warehouse management system

• B2B logistics management
• Complete free zone trans-shipment documentation
• Storage facilities for dangerous goods, perishable, temperature-regulated
logistics, and outsize logistics
• Value-added services such as barcode technology, pick and pack, inventory
control, labeling, stock, and storage management.

2) Fleet Management:

We have outsourced fleet maintenance activities to OEMs to enable us to focus on our

main business activities. We have availed Annual Maintenance Contract (AMC) from Ashok
Leyland Ltd., under which Ashok Leyland provides preventive, maintenance, and repair support at its
workshops/dealers across all over India under which breakdown support, replacement of normal
wear and tear parts, lube replacement, and other maintenance services are provided. Also, we have
agreed with JK Tyre & Industries Limited under which the vehicle tires are provided on a lease basis
to us by JK Tyre. Focus on vehicle maintenance, driver satisfaction, cost control, increased
productivity, and compliance to deliver customer satisfaction. 217 owned trucks in which(
18ton small fleets, 18-25 ton are Medium fleets, >25 ton are Large fleets)
3) Warehousing and Distribution( 4 existing warehouses)

1.5 lakhs Sq. ft. of warehouses, Helping customers by providing warehousing, lower inventory,
transport smaller & frequent shipments and Value – added services , includes , packing , kitting ,
sorting & labelling.

our 3PL Logistics offering is the ideal solution for companies wanting to monitor and
manage their operations with live data access. As part of our warehousing solution, we
offer the end to end activities like assembly and kitting services, including sorting, stuffing,
tagging, labeling, packaging, bundling, strapping, shrink wrapping services, etc.

4) Full Truck Load Transportation:

FTL Ritco offers easy and affordable trucking solutions backed by extensive industry
experience for all customers. You can count on us for all your high volume and high capacity
needs in a cost- and time-efficient manner through our Full-Truckload (FTL) logistics. We
entered into the segment of LTL service in the year 2013 and currently this service is provided by us
at the nearby places where our Warehouses are situated i.e. Ahmedabad, Bangalore, Bhiwandi,
Guwahati, Haldia, Kolkata, Surat, and Vapi through owned and hired fleet. Part-Truck Load/ LTL

CAPEX:

• Pernod Ricard - New business added in RITCO fold.

• Had a Chemical proposed a refinery in Make in Odisha conclave
• Reliance plans to boost its oil-refining capacity in Jamnagar
• West Bengal potential investments worth ₹14,000 cr in the chemicals and petrochemicals
sector across different segments
• MCPI to set up a polymerisation unit at Haldia, West Bengal
• RITCO Logistics Limited Migrates to Main Board of BSE and NSE from BSE SME Platform
Delhi 12 April 2022- Ritco Logistics Limited (NSE-RITCO & BSE-542383), One of the leading
service providers of Logistics & Supply Chain has migrated to the Main Board of BSE and NSE
from the BSE SME platform. The migration will provide a boost to the overall growth of the
company. Further, migration will help our company to attract more investors and bring more
liquidity to the stock of the company owing to the possibility of trading in a single share v/s a
lot size in SME Platform.

In 2021: Participation Criteria in Gov./Semi Gov./Blue Chip & Undertaking( These tenders have very
high eligibility criteria and Only of few Logistics Company are eligible to participate).
Business Updates:

GROWTH OUTLOOK:

• Efficient Cashless Supply Chain backed by Strong IT Systems:

•
• RLL will continue to benefit from its vast track record of operations in the industry with an
established and reputed customer base. Moreover, an improved demand scenario coupled
with a planned foray into new sectors augurs well for the company’s growth plans.
• The susceptibility of the company’s profitability to intense competition, exposure of its
operations to macroeconomic conditions, and Government policies. In addition, the increase
in fuel prices, toll taxes, and other unrecoverable costs, which RLL may not be able to pass
on to the customers in its entirety, remain credit concerns.
 • The road logistics sector is highly fragmented with most of the business generated by the
unorganized segment. While a significant opportunity for organized players to scale up their
businesses exists.

Clients:

In petrochemical almost every company is in their client

Strengths

Asset-light model of operations – The company has an asset-light business model with an in-house
fleet of 255 trucks, while about 70–80% of the total requirement is met through a fleet hired from
the spot markedailyis. The asset-light model helps RLL in saving on fleet fixed costs and reduces idle
capacity in the event of business downturns, such as the pandemic restrictions. Moreover, the
company is in the process of putting into place a software platform, which will strengthen its ability
to avail services of third-party fleet operators across locations.

Strong client profile; sizeable share of long-term contract-based business provides revenue
visibility – The company has an established customer base of reputed players including GAIL India
Ltd., Indian Oil Corporation Ltd., ONGC Petro Addition Limited, Nestle India Limited, etc. Further, a
significant share of its revenues is derived from the contract logistics segment,

Wide transportation Network in India:

Goods transportation network spans 14 states and 1 Union Territory in India. Our operational
infrastructure for the goods transportation business as of the date of Draft Red Herring Prospectus
comprised 29 branches (including 6 fleet centers and 9 Warehouses).
Threats:

Working capital-intensive operations due to high receivable days – The company’s operations are
working capital intensive, with an elongated receivable and short payables cycle. The working capital
intensity increased to 37% in FY2021 (PY: 32%) as the debtor days jumped to 132 days (PY: 110 days)
owing to delays in collections due to the pandemic disruptions across sectors. However, the
creditors (fuel, and road tax) are generally paid upfront. In H1 FY2022, the company managed to
improve its collection cycle by bringing down the debtor days to 120 days and lowering the
proportion of aged receivables. Nonetheless, the company is expected to have a high working capital
intensity at 30-33% in the near to medium term. Given its growth plans.

Profitability remains susceptible to market fleet availability and prices – RLL remains exposed to
significant fluctuations in hire charges for market vehicles as the rates are primarily dependent on
the demand–supply dynamics.

Highly competitive and fragmented market limits pricing ability– The road logistics sector is highly
fragmented with most of the business generated by the unorganized segment. While a significant
opportunity for organized players to scale up their businesses exists.