DFCL, Dhillon Freight Carrier
Inside DFCL's Growth Story: In Conversation with Mr Mukesh Kumar Agarwal, CFO on Strategy, Scale, and Stewardship
1. Could you shed light on your operational footprint - regions you serve, fleet size, key clients, and warehousing capabilities?
Dhillon Freight Carrier Limited was established in 2014 with the vision of simplifying logistics for small and medium-sized businesses. We operate under the brand of DFC Logistics. We specialize in road transportation, offering parcel and less-than-truckload (LTL) deliveries, contract logistics, and fleet rental or leasing. Our services cater to both B2B and B2C clients across diverse sectors, including textiles, footwear, construction, and paints. As an ISO 9001:2015 certified company, we are committed to quality and customer satisfaction. Today, we own a fleet of 62 vehicles and manage over 1,500 attached vehicles. With a strong presence in West Bengal, Bihar, Delhi, and Uttar Pradesh, our network spans 22 booking offices, supported by pickup facilities, warehouses, delivery offices, and an extensive agency base.
2. With infrastructure reforms and digital push by the government, how are you aligning your business to benefit from these changes?
As a regional logistics player, we see the government's infrastructure reforms and digital push as catalysts for long-term industry growth. With the Indian logistics market expanding at 10-12% annually, driven by initiatives like GST, the National Logistics Policy, and Make in India, we are aligning our business to stay ahead. Our fleet is already IoT-enabled, and we are steadily upgrading to BS6 standards while piloting electric vehicles. To manage higher maintenance costs, we negotiate long-term AMCs with OEMs, which ensures better service uptime and asset reliability. Beyond compliance, we view reforms as an opportunity to modernize and differentiate. We are investing in technology to improve visibility, efficiency, and customer service - such as developing a driver app to seamlessly integrate third-party vehicles into our network. At the same time, we are strengthening our warehousing and last-mile capabilities to take advantage of the new infrastructure coming up across the country. Our goal is to build scale responsibly, deliver reliable logistics solutions, and position DFCL as a future-ready partner in India's logistics transformation.
3. How have you leveraged technology in operations, and what role does innovation play in your growth plans?
Though we are not a pure tech company, technology is at the core of how we run and scale our logistics operations. Our fleet is equipped with IoT devices and FASTag, which allows us to track movement in real time, manage toll expenses efficiently, and share timely automated notifications with our clients. We have built in-house applications to schedule trips, monitor vehicle health, and plan maintenance proactively, which improves uptime and lowers operating costs.
On the customer side, we have integrated SMS and email notifications into our billing and tracking systems, ensuring transparency and better client experience. For us, innovation is not about flashy features but about using technology to improve reliability, efficiency, and service quality. Going forward, we will continue to invest in digital tools and automation that make our operations smarter and enable us to scale sustainably while keeping customer satisfaction at the centre.
4. Your company has secured in-principle approval from BSE for listing on the SME platform. How does this listing align with your long-term capital strategy?
Listing on the BSE SME platform is a strategic step in our growth journey. As a logistics company, we operate in a capital-intensive sector, and the IPO helps us maintain the right balance between debt and equity for sustainable growth. The funds will support fleet expansion, infrastructure, technology, and working capital needs. More importantly, the listing enhances our visibility, credibility, and ability to attract strong partners and talent. For us, this IPO is not just about raising capital, but about building a stronger, future-ready company.
5. What were some of the key challenges you faced during the IPO preparation process?
Preparing for the IPO was a rigorous journey. The biggest challenge was adapting to the high level of compliance, transparency, and governance required of a listed company. To prepare, we operated as an unlisted public company for nearly two years, which helped us put the right systems, reporting practices, and internal controls in place well in advance. It was also about aligning our team culturally, to think and act like a listed company. So that when we brought in external shareholders, we were fully ready to meet their expectations.
6. What message would you like to give to potential investors looking at Dhillon Freight Carrier Limited's IPO?
We would encourage all potential investors to carefully read our Prospectus, which contains detailed information about our business, financials, risks, and growth plans. As a company, our focus remains on building reliable logistics solutions, strengthening our infrastructure and fleet, and creating long-term value for all stakeholders. We welcome investors who share our belief in the industry's growth potential and our commitment to disciplined, sustainable expansion.
7. What are the top three KPIs you believe IPO investors should track to gauge Dhillon Freight's post-listing performance?
For a logistics company like ours, I'd highlight three key KPIs for investors to track. First, Revenue growth, which reflects how well we are scaling and capturing market share. Second, our Debt-to-Income ratio, since disciplined leverage is critical in this capital-intensive sector. And third, Profit After Tax (PAT), which shows our ability to convert growth into sustainable profitability. Alongside these, investors may also look at operational efficiency metrics like fleet utilization, as it directly impacts margins.
8. As a promoter, how do you view dilution, control, and long-term stewardship now that you are entering the public markets?
For us, this IPO is not just about raising capital, it's about building a stronger foundation for long-term growth and transparency. While the process does involve a degree of dilution, we view it positively - as an opportunity to bring in new shareholders who will participate in and support our growth journey.
Control, in our view, comes not from the percentage of shares we hold but from the strength of our vision, governance practices, and execution capability. As promoters, we remain deeply invested, both financially and emotionally, in the company's future. Stewardship, therefore, is at the heart of this transition. Listing brings with it higher accountability and disclosure standards, and we welcome that. It aligns with our belief in operating responsibly and building trust with all stakeholders. Our focus will continue to be on sustainable growth, prudent capital allocation, and creating long-term value for every shareholder, old and new.
