Guide · Distribution

C&F and distribution in India: how plant, depot and distributor connect

What a carrying and forwarding agent does, how stock flows from plant to C&F depot to distributor, and what to plan before you appoint one.

3 min readUpdated 3 Nov 2026By the Safe & Secure desk

A carrying and forwarding (C&F) agent holds a manufacturer's stock in a regional depot and dispatches it to distributors against orders, for a fee. The stock stays the manufacturer's. Safe & Secure Logistics moves stock from factory to depot and arranges the depot through partners, with one desk accountable.

On this page · 5 sections
  1. What a C&F agent does
  2. How plant, depot and distributor connect
  3. What to plan before you appoint a C&F agent
  4. Where Safe & Secure Logistics fits
  5. Get started

When a brand sells in a new state, it rarely ships from the factory to every distributor. It sends stock in bulk to a depot in that region, and the depot serves distributors from there. In India that depot is often run by a carrying and forwarding agent, called a C&F agent or CFA.

This guide explains what a C&F agent does, how stock flows from plant to depot to distributor, and what to settle before you appoint one.

What a C&F agent does

A C&F agent is a service provider, not a buyer. It receives your stock into its depot, stores it, and dispatches it to your distributors against your orders. It is paid a fee, often a percentage or a rate per case, agreed in the contract.

The stock always belongs to you. The C&F agent holds it on your behalf. Where agreed, it may also raise invoices to distributors in your name.

A distributor is different. A distributor buys the stock from you and resells it to retailers. It owns the goods and carries the sales risk.

How plant, depot and distributor connect

The chain has three legs.

  1. Primary transport. Full trucks carry stock from your factory to the C&F depot. This is the bulk leg, planned against the depot’s stock levels.
  2. Depot. The C&F agent unloads, checks and stores the stock, and keeps a stock record for you.
  3. Secondary dispatch. The depot picks orders and sends them to distributors in its region, usually in smaller vehicles.

Each leg hands over to the next. If primary trucks arrive late, the depot runs short. If depot records drift from transport records, nobody can say where a case went. The links matter as much as the legs.

What to plan before you appoint a C&F agent

  • Region and depot location. Which states and distributors the depot will serve, and how far it sits from them.
  • SKUs and volumes. What you will stock, in what quantity, and how often distributors order.
  • Licences. The depot must hold the licences your goods need. Food businesses need FSSAI licensing or registration. Drugs need a licence under the Drugs and Cosmetics Rules.
  • Tax paperwork. Stock transfers to a depot generally move under GST documents and, above the value threshold, an e-way bill.
  • Service levels. Order cut-off times, dispatch times and how returns are handled.
  • Reporting. Daily stock and dispatch reports, reconciled against what transport delivered.

Where Safe & Secure Logistics fits

Safe & Secure Logistics has run road transport since 1951. It handles 76,000+ truck hires a year through 110+ branches and offices, and delivers to 2,000+ destinations.

For C&F and distribution, our strength is the primary leg. We move your stock from factory to depot on full trucks, including reefer trucks for chilled goods.

The depot itself is partner-arranged. Our desk finds and sets up a depot that meets your licences and service needs in the region you choose. The depot partner holds the premises, staff, stock custody and depot licences. We reconcile stock and dispatch reports with transport, and you get one point of contact.

See the full scope on our C&F and distribution service page.

Get started

Planning a depot network or a new state? Send your regions, SKUs and volumes through our request for quote, or get a quick price for a single load on the quote page.

Figures for Safe & Secure Logistics are for FY2025-26 from our booking register. How each one is counted is on the Facts and sources page.

Sources

Where these rules come from

  1. CBIC: CGST Act and Rules, including Rule 138 (e-way bill)
  2. FSSAI: licensing and registration of food businesses
  3. CDSCO: Drugs and Cosmetics Act and Rules

Rules change. Check the linked source before acting; this guide is general information, not legal or tax advice.

Frequently asked questions

What is a C&F agent?
A carrying and forwarding agent receives a manufacturer's stock into its depot, holds it on the manufacturer's behalf and dispatches it to distributors for a service fee.
How is a C&F agent different from a distributor?
A C&F agent holds stock it does not own and earns a fee. A distributor buys the stock and resells it to retailers.
Does Safe & Secure Logistics run its own C&F depots?
No. Safe & Secure Logistics does not own the stock or C&F depots for this service. Our desk finds and sets up a partner depot that meets your licences and service needs, and we run the factory-to-depot transport.
Who holds the depot licences?
The depot partner holds them, for example an FSSAI licence for food or a drug licence for pharma. Our desk shares the operator's licence and documents for your shipment on request.
Does stock moving from my factory to my C&F depot need an e-way bill?
Usually yes. A stock transfer is a movement of goods, and GST rules on e-way bills apply above the value threshold. Check the current CGST Rules or ask your tax adviser for your case.
Can SSL move goods from my factory to my existing CFA?
Yes. Factory-to-depot primary transport is Safe & Secure Logistics' core full truckload and reefer work.

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