Navkar Corporation Limited is engaged in container freight station (CFS) operations and related activities. It provides inland container depot (ICD) services. It offers cargo storage facilities, including a buffer yard and warehouses for the storage of cargo. In addition, the Company offers other services, such as packing and re-packing, labelling/bar-coding, palletizing, shrink-wrapping, fumigation, pest control and other related activities. The Company has a private railway freight terminal (PFT), which allows it to load and unload cargo from container trains. The Company has approximately three CFSs, which include Ajivali CFS I and Ajivali CFS II at Ajivali and Somathane CFS at Somathane, with an installed handling capacity of over 310,000 twenty-foot equivalent units (TEUs) per annum. The Company manages all over-dimensional cargoes (ODC) and out-of-gauge (OOG) cargoes. The Company's subsidiary is Navkar Terminals Limited.
Navkar Corporation (NCL) is one of the largest container freight station (CFS) at JNPT and also one of the three CFS with rail connectivity that provides it an edge over its peers. The current capacity stands at 310,000 TEUs and it has amongst the highest market share at JNPT mainly owing to this rail advantage. Post the IPO, the company is in a massive expansion mode and will be increasing its capacity at Somathane CFS by 252,889 TEUs to 472,889 TEUs and is also coming up with an inland container depot (ICD) at Vapi with capacity of ~474,000 TEUs and an adjacent Logistics Park. Upcoming ICD to provide an edge: The Vapi region has a huge market potential as it is a well developed industrial area.The Vapi region accounts for close to 27% of container volumes at JNPT. It is believed that ICD (with rail connectivity) will enable the NCL to garner a good portion of the business from the region. At present, imports headed for the region have to get custom cleared at CFS/ICD at JNPT and are then transported via road. With rail transport being a more economical option compared to road, the imports should head directly to Vapi ICD. As for exports from Vapi region, a large portion (~60%) is stuffed at factory and transported to JNPT. However, the balance 40% or ~170,000 TEUs (less-thancontainer load [LCL]) which is being transported via road and consolidated at JNPT, can be consolidated at the ICD. Once the scale advantages kick in and given its rail advantage, the company can also cater to some portion of bulkier factory stuffed cargo. Capacity enhancement at Somathane to aid revenue growth: The company has managed to outgrow its peers in the region by attracting volumes on the back of its rail advantage. NCL has been facing capacity constraints at JNPT and is forced to reject certain bulk commodities like PTA, Fiber, Scrap, Marble, etc. Although the current South Gujarat volume of NCL (~70,000 TEUs) is expected to shift to the Vapi ICD, the company will now be able to handle these bulk commodities and effectively utilize its extended capacity. NCL will now also be handling domestic traffic, which it had been rejecting earlier, thus aiding growth. Logistics park at Vapi to be an additional revenue driver: The logistics park will be a one-stop solution for importers and exporters, providing a host of warehousing and other value added services. Its close proximity to one of the largest industrial clusters in India augurs well for NCL.