project logistics market in india 2012 - sample

Project Logistics Market IndiaProjectLogisticsMarket India

September2012

ExecutiveSummary

Market

Projectlogisticsreferstothehandlingofshipmentssuchasheavytransports,ODCandcargoexperiencingtime,securityandlocationconstraints

TheprojectlogisticsmarketiscurrentlyvaluedatINRx1 unitsandisexpectedtoreachINRx6unitsby2016

Drivers Challenges

Drivers&Challenges

DriversGrowthinenergysectorRisingnumberofinfrastructureprojectsDemandaccruingfromminingsectorGrowinglogisticsdemandfrom

Challenges Poorqualityinfrastructure Projectdelaysslowingdownprojectlogisticssector

LackofskilledmanpowerChallengesautomotivesector

GrowingWarehousingFacilitiesDifficultyinpermitsattainmentandunfriendlytaxationpolicy

Technologyissues InefficientMaterialHandlingEquipments

T d Technology TrendsTrends MarketTrends Servicewisediversification Regionwisediversification

TechnologyTrends IdentificationtechnologyMaterialhandlingtechnology Communicationtechnology Informationtechnology

Competition

KeyPlayers

Public PlayerA,PlayerB,PlayerC,PlayerD,PlayerE

Private PlayerF,PlayerG,PlayerH,PlayerI,PlayerJ,PlayerK,PlayerL,PlayerM,PlayerN,

gy

2PROJECTLOGISTICSMARKETININDIA2012.PPT

Private y , y , y , y , y , y , y , y , y ,PlayerM,PlayerO,PlayerP

Introduction

MarketOverview

GSTImplementation

ProjectLogisticsManagementSolution

KeySuccessFactors

IssuesHamperingProjectLogistics

Drivers & ChallengesDrivers&Challenges

MarketTrends

TechnologyTrendsec o ogy e ds

Competition

StrategicRecommendations


Appendix

Logisticsprimarilydealsintransportationandstorageoperationsandissignificantlyaidedbyvalueaddedservice

LOGISTICSSECTOR

TRANSPORTATION

ContainerRailTransport

STORAGE

Modern Warehousing

VALUEADDEDSERVICE

RoadTransport

ExpressLogistics

ModernWarehousing

LogisticsPark

Inland Container Depot

FreightForwarding

3PL/4PL

CoastalShipping

ColdChain

InlandContainerDepot

ContainerFreightStation

Port

CourierService

Thelogisticssectorcomprisesmainlyof3majorsegments Transportation,StorageandValueaddedserviceThegrowingIndianeconomyhasapositiveimpactonplayersoperatinginstorageandvalue addedservices

f

ProjectLogistics Port


segmentswhileintransportationsegmentcontainertrainandprojectlogisticsisprojectingapromisingfutureoutlook

GrowinginvestmentsinkeysectorsoftheeconomyisdrivingtheprojectlogisticsmarketinIndia

TheIndianlogisticsmarket formsapproximatelya%ofthegloballogisticsmarketinvalueterms

MarketOverview MarketSizeandGrowth(Valuewise)

600

INRbn

x6g g Thetermprojectlogisticsreferstothehandlingofglobalshipmentswithspecialcharacteristicssuchas

Heavytransports Overdimensioncargo 200

300

400

500 X%x6

x5x4

x3x2x1

g

Cargowithtimeandorsecurityconstraints Cargotoremoteandlocationswhicharedifficulttoaccess

EconomicgrowthinIndiainadditiontohugedemandforinfrastructure development is simultaneously leading to

0

100

200

20e20e20e20e2020

infrastructuredevelopmentissimultaneouslyleadingtogrowingdemandforprojectlogisticsactivity

TheprojectlogisticsmarketiscurrentlyvaluedatINRx1unitsandgrowingatarateofapproximatelyX%isexpected to reach INR x2 units

b%

CargoTransportSegmentation

Segmentation on basisexpectedtoreachINRx2 units CargotransportationbusinessthatisusuallysegmentedintoAandBcomposesofa%andb%respectively oftotalquantumofbusiness

The Indian market is highly fragmented with large sectiona%

Segmentationonbasisofquantumofbusinessdone


TheIndianmarketishighlyfragmentedwithlargesectionofunorganizedplayersplayingadominantrole

BA

Projectlogisticsserviceprovidersfacecertaincriticalitiesinwhileoperatingtheirbusiness

TransportCost

KeyIssues

Technology Adoption Hired EquipmentsTechnologyAdoption HiredEquipments


Drivers&Challenges Summary

Challenges

Drivers

Poorqualityinfrastructure

Projectdelaysslowingdownprojectlogisticssector

Growthinenergysector

Riseinnumberofinfrastructureprojects

Difficultyinpermitsattainmentandunfriendlytaxationpolicy

Technologyissues

Demandaccruingfromminingsector

Increaseinlogisticsdemandfromautomotive sector

InefficientMaterialHandlingEquipments

automotivesector

Riseinwarehousingfacilities


NonConventionalEnergySources(1/3)

WIND

Indiaisranked5th worldwideintermsofwindpowerinstalledcapacityand3rd intermsofannualcapacity 30

MW000 Moderate AdvancedReference

CumulativeWindPowerCapacity

additions AsonJan2012,Indianwindenergysectorhasaninstalledcapacityof16,179MW

Anumberofcompaniesareenteringintoproductionof 2015e20102009

b3c2c1

c3

0

10

20

a2a1 a3b1 b2

windturbinesduetoIndiasexpansiveopportunityinIndiaswindenergy sector ForeignwindturbinemanufacturingcompanieslikeVestas,GEWind,EnerconandGamesahaveestablishedtheirunitsinIndia

Wind turbine is manufactured in parts each of the parts

ReferenceAconservativeestimatetakingintoaccountexistingpoliciesbutincludesassumptionslikecontinuingelectricityandgasmarketreform,liberalizationofcrossborderenergytradeandpoliciesaimedatpollutionreduction

Moderate Takesintoaccountallmeasurestosupportrenewableenergyandsuccessfulimplementationoftargetsaswellasmodestimplementationofnewpolicies

Advanced Mostambitiouswithassumptionofclearandunambiguouscommitmenttorenewableenergyalongwithpoliticalsupportforimplementationofprojects

Windturbineismanufacturedinparts,eachofthepartsareconsideredasanODCforlogisticpurpose ThemanufacturedpartstreatedasODChastobetransportedtotherequiredinstallationsitewhichisgenerallyinremoteplace

PlantOwner State PlantCapacity(MW)

SuzlonEnergyLtd. AndhraPradesh 3000

GujaratFlurochemicalsLtd

Rajasthan,Gujarat,K t k 1000

PlannedProjects

p Generator,rotorandbladesaresomeofthecomponenttermedasODC

Thewindpowergenerationprojectswouldrequiresmoothtransportationofequipmentstherebygeneratingdemandforprojectlogisticssector

Ltd. Karnataka 1000

WelspunEnergyLtd. AndhraPradesh 500

TianaPowerProjectsPvt.Ltd. Maharashtra 300

GreenkoWindProjectPvt Ltd Karnataka 300


p j gPvt.Ltd.

Automobileindustrysdependenceontransportofbulkautocomponentsenhancesdemandforprojectlogistics

Automotive

Indianautomobilesectorisgrowingatahealthyrateoverthe years INRtn

AutomobileSectorGrowth

theyears Thesectorisexpectedtogrowatm%CAGRbetween20 to20

Individualautomobilepartsneedtobetransportedfromvariousareasthroughlogisticsnetworksto 4

6

8m% b

a

assemblingcentreProjectlogisticsplaysanintegralrolewhereautomobilepartsinhugenumbersaretobeshipped Meetingautomobilebusinessdemandswithefficiencyandtimely transport of accessories and spare parts makes logistics

0

2

20e20

timelytransportofaccessoriesandsparepartsmakeslogisticsbusinesscrucialtotheindustry

Theautomobilesectorincursbetweenm% n%ofitsoperatingcostonlogisticsservice Logisticsoutsourcingisestimatedtosavefreightcostof

a% c%

OperatingCost RevenueEarning

automobilecompaniesbyapproximatelys%t% Logisticsbeinganoncorefunctionforthesectormakesitadvantageousfortheautomobilemanufacturerstodependonlogisticsserviceproviderswhohelpintimelyreplenishmentofdepletinginventoriessmoothly


BA DC

ITadoptioninlogisticssectorparticularlyprojectlogisticswillhelpscaleupefficiencyinbusinessoperations

ITimplementationcomprisesmainlyenterpriseapplicationpackages

ERP is one of the most popular IT ERPisoneofthemostpopularITtoolbeingusedacrosslogistics

m

a

t

i

o

n

o

l

o

g

y

Communicationplaysakeyroleinlogisticsbusiness

Ensuresspeedandaccuracyincustomerservice

Directdataentryintocomputer

Technologieslikebarcoding,RFID,datacommunication,magneticstrip and voice recognition

I

n

f

o

r

m

T

e

c

h

n

o

CommunicationTechnology

CompetitiveAdvantage

IdentificationTechnology

Helpsinbringingincompetitivenessamongserviceproviders

stripandvoicerecognitionareused

Usedfortrackingrailcarsandcartonmovement

g

M

a

t

e

r

i

a

l

H

a

n

d

l

i

n

g

Loading,unloadingandstorageofgoodsinwarehouses

Reducesneedoflaborforce Automatedmaterialhandling


becomesusefulinareasofhazardousgoods

MajorPublicCompanies Summary

6

7

8

NetProfit/Loss

SizeoftheBubblerepresentsMarketCapitalizationinINRbn

3

4

5

6

1

0

1

2

4

3

2

1

5

200 180 160 140 120 100 80 60 40 20 0 20 40 60 80 100 120 140

TotalIncome

EDCBA


Public:DomesticCompany PlayerA(1/3)

CompanyInformation OfficesandCentres India

CorporateAddress

PlayerA

5thRoad,6th Street,

CityA 700xxxy

TelNo. 91226679xxxx

FaxNo. 91226679xxxx

Website www.playera.com

YearofIncorporation 19

TickerSymbol 53xxxx(BSE)

StockExchange BombayStockExchange HeadOfficeCityX

KeyPeople

ProductsandServices

Category Products/Services

CFS/ICD,Project&EngineeringSolutions NVOCC Ship owning 3PL & Name Designation

LogisticssolutionsSolutions,NVOCC,Shipowning,3PL&warehousing,importhandling,exporthandling,LCLshipmentandtransportation

Name Designation

PersonA MD

PersonB CFO

PersonC CEO


i i l S h K i

Private:ForeignCompany PlayerA(2/3)

FinancialSnapshot KeyRatios

Particularsyoychange(201110)

2011 2010 2009 2008

ProfitabilityRatiosOperatingMargin

NetProfit/LossTotalIncome

INRunits

20

INRunits

250NetMarginProfitBeforeTaxMarginReturnonEquityReturnonCapitalEmployedReturnonWorkingCapitalReturnonAssets

20

40

60

250

200

150

100

50

dR4c

R3b

R2

a

ReturnonFixedAssets

CostRatiosOperatingcosts(%ofSales)Administrationcosts(%ofSales)

Interest costs (% of Sales)FinancialSummary

80

50

020202020

R1

Interestcosts(%ofSales)

LiquidityRatiosCurrentRatioCashRatio

LeverageRatiosDebttoEquityRatio

b i l i

ThecompanyincurredanetlossofINRdunitsinFY20,ascomparedtonetlossofINRcunitsinFY20

ThecompanyreportedtotalincomeofINRR4unitsinFY20,registeringanincreaseofm%overFY20

DebttoCapitalRatioInterestCoverageRatio

EfficiencyRatiosFixedAssetTurnoverAssetTurnoverCurrentAssetTurnover

Thecompanyearnedanoperatingmarginoff%inFY20,anincreaseofgpercentagepointsoverFY20

ThecompanyreporteddebttoequityratioofdinFY20,adecreaseofh%overFY20


WorkingCapitalTurnoverCapitalEmployedTurnover

Improved Decline

Private:ForeignCompany PlayerA(3/3)

KeyBusinessSegments KeyGeographicSegments

%

CBA

%

GFEDCBA

50%

100%

50%

100%

%

BusinessHighlights

0%

202020

0%202020

Description News

Overview

Acquisitions


Appendix

Ratio Calculations

OperatingMargin (OperatingIncome/Revenues)*100

Ratio Calculations

CurrentRatioCurrentAssets/CurrentLiabilities

NetMargin (NetProfit/Revenues)*100

ProfitBeforeTaxMargin (IncomeBeforeTax/Revenues*100

(N I / Sh h ld

CashRatio{(Cash&BankBalance+MarketableSecurities)/CurrentLiabilities)}

DebttoEquityTotalLiabilities/ShareholdersE it

ReturnonEquity(ROE) (NetIncome/ShareholdersEquity)*100

ReturnonCapital(ROCE) EBIT/(TotalAssets CurrentLiabilities)*100

(N I / W ki C i l)

q yEquity

DebttoCapitalRatio{TotalDebt/(ShareholdersEquity+TotalDebt)}

InterestCoverageRatio EBIT/InterestExpense

ReturnonWorkingCapital (NetIncome/WorkingCapital)*100

ReturnonAssets (NetIncome/TotalAssets)*100

ReturnonFixedAssets (NetIncome/FixedAssets)*100

FixedAssetTurnover Sales/FixedAssets

AssetTurnover Sales/TotalAssets

OperatingCosts(%ofSales) (OperatingExpenses/Sales)*100

AdministrationCosts(%ofSales)

(AdministrativeExpenses/Sales)*100

CurrentAssetTurnover Sales/CurrentAssets

WorkingCapitalTurnover Sales/WorkingCapital

/


InterestCosts(%ofSales) (InterestExpenses/Sales)*100 CapitalEmployedTurnover Sales/ShareholdersEquity

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