SEOUL, South Korea, Nov. 29, 2023 – CJ Logistics Corporation (“CJ Logistics”) is accelerating expansion into India, one of its key strategic countries. CJ Logistics’ Indian subsidiary CJ Darcl Logistics Limited (“CJ Darcl”) plans to secure future investment capital through an initial public offering (IPO).
CJ Logistics announced that CJ Darcl had successfully submitted a pre-IPO review request to the Securities and Exchange Board of India (SEBI) under title Draft Red Herring Prospectus.
CJ Logistics took a significant step into the Indian logistics market in 2017 when it acquired a 50% stake in Indian Entity Darcl Logistics Limited and consequently name changed to CJ Darcl Logistics Limited. As of March 31, 2023, CJ Darcl has 187 branches across India, providing comprehensive logistics services, including road, railway, and shipping/coastal transportation, warehousing and distribution (W&D), and project logistics, to more than 2,900 client companies.
CJ Darcl has a competitive edge in being able to offer multimodal services, which include nationwide land and railway transportation, that contribute to its growth. CJ Darcl achieved INR 42,158.26 million in revenue from operations for the year ended March 31, 2023, and INR 1,087.55 million in operating profit for 2022, reflecting an revenue growth rate of 14.52% in FY 2023 compared to FY 2022.
India, surpassing China, has become the world’s most populous country with approximately 1.43 billion people and continues to experience economic growth, achieving a growth rate of 7.2% last year, according to credit rating agency S&P Global Ratings.
The Indian government’s focus on promoting industry is also expected to have a favorable impact. The government has been promoting its “Make in India” policy to boost manufacturing, and as a result, competitiveness in the logistics industry is being recognized as a crucial factor. In line with this, the government also introduced the National Logistics Policy last year, demonstrating a strong commitment to improving the logistics landscape.