Delhivery , India's largest fully integrated logistics service provider, has launched a groundbreaking initiative aimed at enhancing transparency within India's logistics sector. The company introduced the Open Freight Index One, a new platform designed to provide comprehensive freight pricing information for various stakeholders in the logistics industry.

Key Features of the Open Freight Index One

The Open Freight Index One platform offers several important features:

• Historical, current, and forward Full Truckload (FTL) pricing estimates
• Coverage for major trucking lanes
• Pricing for both open and closed container vehicle types
• Data modeled from nearly a decade of market intelligence and Delhivery's internal data

Addressing Market Gaps

Rohan Anand, Head of Data Science at Delhivery, highlighted the significance of this initiative, stating, "India currently does not have equivalents to global indices like the Cass Freight Index and Freightos Baltic Index (FBX)." This gap has led to several challenges in the logistics sector, including:

• Routing issues
• Uncertainty about costs, especially during periods of seasonal demand
• Significant information asymmetries

The Freight Index One platform aims to tackle these challenges by providing a reasonable estimate of freight pricing, which is crucial for reducing overall logistics costs and increasing revenues for both transporters and shippers.

Collaborative Approach

Delhivery is taking a collaborative approach with this initiative. Kapil Bharati, Chief Technology Officer at Delhivery, explained, "Through Freight Index One, we plan to open up freight rate data and forecasts to partners from the logistics industry, including freight brokers and shippers, and to partner with them to deepen the accuracy and coverage of the index."

This open approach is expected to:

• Allow efficient price benchmarking
• Enable customers to better plan budgets
• Facilitate more informed rate negotiations using market-wide data

Participation and Access

Industry participants can access the Freight Index One by signing up at https://one.freightindex.in/ . For those interested in data contribution or partnerships, Delhivery has provided a contact email: Partner@freightindex.in .

About Delhivery

Delhivery continues to solidify its position as a leader in India's logistics sector. Some key statistics about the company include:

The company offers a wide range of logistics services, including express parcel transportation, PTL freight, TL freight, cross-border, supply chain, and technology services.

As Delhivery continues to innovate and expand its offerings, the launch of the Open Freight Index One represents a significant step towards bringing greater transparency and efficiency to India's logistics market. This initiative has the potential to reshape how pricing and planning are conducted in the industry, benefiting a wide range of stakeholders from individual transporters to large-scale shippers.

Delhivery Limited , a prominent logistics and supply chain services company, has recently faced significant operational changes and regulatory challenges. The company has received a substantial GST demand order and has also dissolved its subsidiary in Bangladesh.

GST Demand Order

Delhivery has received a significant GST demand order from the Joint Commissioner, CGST Commissionerate, Faridabad. The order, which amounts to ₹49.20 crore, stems from disputes over tax rate interpretations on certain services provided by the company.

Details of the Demand Order

The demand order, issued under Section 74 of the CGST Act, 2017, includes the following key points:

Company's Response and Outlook

Delhivery has taken proactive steps to address this issue:

1. Industry Forum Engagement: The company raised the matter before the GST Council through an Industry Forum, seeking clarification on the applicable tax rate.

2. Positive Outlook: Based on its assessment and prevailing law, Delhivery is optimistic about a favorable outcome at higher forums.

3. Financial Impact: The company does not anticipate any material financial impact from this demand order.

Dissolution of Bangladesh Subsidiary

In a separate development, Delhivery has dissolved its subsidiary, Delhivery Bangladesh Logistics. The company has ceased operations of its Bangladesh-based unit. This move appears to be part of the company's strategic realignment of its international operations.

Regulatory Disclosure

In compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Delhivery has officially disclosed these developments to the stock exchanges.

Broader Implications

These recent events highlight the dynamic nature of the logistics industry and the challenges companies face in both regulatory compliance and international operations:

1. The GST demand order underscores the ongoing challenges in interpreting GST regulations, particularly in the logistics sector. It emphasizes the importance of clear tax guidelines and the need for companies to maintain open dialogues with tax authorities to resolve such disputes.

2. The dissolution of the Bangladesh subsidiary reflects the complexities of managing international operations and the need for companies to continually assess and adjust their global strategies.

As these matters progress, they will be closely watched by industry observers and could potentially set precedents for similar cases in the future. For now, Delhivery maintains its focus on its core operations while addressing these challenges.

Investors and stakeholders are advised to monitor further updates from the company regarding the resolution of the tax dispute and any potential impacts from the closure of its Bangladesh operations.