← Business Metric: Industry Specific (Infrastructure, Transport & Utilities) (all topics)
Captive vs non-captive mix
What it is
Whether a logistics provider serves its own group's cargo or third-party customers. Captive volumes come from a promoter group's manufacturing or retail operations; non-captive is won competitively
Many Indian logistics businesses began captive and diversified outward
Impact on industries
- Captive volume provides a stable base that underwrites network investment before third-party business is won
- Captive pricing is a related-party matter rather than a market outcome, so reported margins may not reflect competitive capability
- Group concentration is a genuine risk - the provider's fortunes track one promoter's business cycle rather than the logistics market
- Non-captive share is the honest measure of competitiveness, and rising third-party revenue is the signal that the business stands alone