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Third

Party

Logistics

Market

IndiaDecember2012


2/27

2

SAMPLE

ExecutiveSummary

Market

Competition

Morethan

half of

the

gross

revenue

generated

in

global

Third

Party

Logistics

(3PL)

market

were

accounted

by

topxxplayersin2011

3PLMarketinIndiaisestimatedtoreacharoundINRxxbnby20 ataCAGRofnearlyxx% during2011 16

ThemarketisrapidlyevolvinginIndiawithmorecustomersusingoutsourcingtoreducecost

MajorPlayers

CompanyA CompanyB CompanyC

CompanyD CompanyE CompanyF

CompanyG CompanyH CompanyI

Drivers&

Challenges

Drivers

Economicgrowth

HighcostofLogisticsinIndia

GrowthinConsumerElectronicsandDurables

Industry

GrowthinAuto&AutoComponentsSector

GrowthinRetailSector

Phasedimplementation

of

VAT

InfrarelatedGovtinitiatives

Challenges

InfrastructureCongestion

HighInventoryLevels

LackofSkilledManpower

LackofTrustandAwareness

Technology

Adoption

IdentificationTechnology Barcode,RFID

Material Handling Technology Automated Guided

VehicleSystem(AGVS),InformationdirectedSystem

Communication Technology Global

PositioningSystem(GPS)Tracking

InformationTechnology ERP,eBizNET

SCsuite,

Vin

eRetail

THIRDPARTYLOGISTICSMARKETININDIA2012.PPT


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3

SAMPLE


Introduction

MarketOverview

Global

India

3PL ShipperRelationship

Drivers&

Challenges

TechnologyAdoption

Competition

RecentTransactions

StrategicRecommendations

Appendix


4/27

4

SAMPLEEvolutionof3PL

Importance

onimproved

productivity,

cost

reduction

andlong

term

contracts

Valueaddedservicessuch

aspackaging,

labeling,

systems

supportand

inventorymanagement

wereoffered

1950s&1960s

1970s

1980s


Higher

outsourcingand

morevalue

addedservices

(VAS*)arebeing

offered

Logisticsoutsourcing

waslimitedto

transportationand

warehousing

Mainlyshortterm

transactions

1990s Present

*VASincludes

import/export

management,

customs

clearance,

clearance,

freight

forwarding,

customer

service,

rate

negotiation,

orderprocessing,assembly/installation,distribution,orderfulfillment,reverselogistics,consultingservicesthatincludedistributionnetworkplanning,siteselectionforfacilitylocation,fleetmanagement,freightconsolidation,logisticsauditetc.


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5

SAMPLE

Demandforservicesofexpertlogisticsoutsourcingprovidersisrisingworldwide


MarketOverview

Global Market

Size

&

Growth

Global3PLRevenues(2011)

GlobalThirdPartyLogistics(3PL)marketiscurrently

valuedataroundINRxxbn

Majorshareofrevenuegeneratediscontributedby

RegionA,

Region

B

and

Region

C

Factorscontributingtothegrowthofglobal3PL

market:

xx

Note:GrossLogisticsRevenueofTop50Global3PLplayershavebeen considered

a1%a5%

a3%

a4%

a2%

RegionB

RegionA

RegionE

RegionC

RegionD

0

2,000

4,000

6,000

8,000

INRbn

x1

5.2%

20

x2

20

Note:Market

size

considers

global

3PL

gross

revenues

and

the

conversion

is

done

using2010exchangerate


6/276

SAMPLEMajorPlayersinGlobal3PLMarket

ShareofTop10Global3PLPlayers*(20)

Note:*amongthetop50global3PLplayers

xxisthemarket

leaderin

global

3PL

market

a5%

a4%

a3%

a2%

a1%

a11%

a10%

a9%

a8%

a7%

a6%

PlayerE

PlayerD

PlayerC

PlayerB

PlayerA

PlayerK

PlayerJ

PlayerI

PlayerH

PlayerG

PlayerF



7/277

SAMPLE

ThirdpartylogisticsisfastgainingpopularityintheIndianlogisticsmarket

Thirdparty

logistics

(3PL)

market

in

India

is

at

anascentstage,currentlyataroundxx%ofoverall

logisticsmarket

Findings

MarketOverview

India

(1/3) Market

Size

and

Growth

INRbn

xx%

20

x6

20

x5

20

x4

20

x3

20

x2

20

x1

Shareof3PLinTotalLogistics

AssetBased NonAssetBased

Ownsomeoftheassets

usedinsupplychain

managementwhichoften

includetrucks,distribution

centresandwarehouses

Doesnotownsuchassets

Possessflexibilitythat

allowsthemtorespondto

clients needsonacaseby

casebasis

3PLMarketComprisesofTwoSegments


a1%

a2%

xxxx

b1%

b2%

20 20e


8/278

SAMPLE

Costconsiderationsarethemajorreasonsfortheoutsourcingofvariouslogisticsservices

Findings

Increasein

Share

of

Local

Companies

Outsourcing

Services

Top5Reasons

for

Outsourcing

Logistics

Services

0

20

40

60

x1

%

20

x2

20

Shareoflocal

companiesoutsourcing

hasincreasedbyalmost

xxtimesinxxyears

Note:Approximate%share


MarketOverview

India

(2/3)

Useof3PLServices

~xx%

Logisticscost

goes

downby

thereby

attracting

more

customersinthissector

IMPACT

Low Medium High

Logisticscost

reduction

Focusoncorecompetencies

Improvedcustomerservices

Improvereturnonassets

Toincreaseinventoryturn


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SAMPLE

3PLMarketPresenceinIndia


North East

CityA CityJ

CityB CityK

CityC CityL

CityD CityM

CityE City

N

CityF

CityG

CityI

South West

CityO CityY

CityP CityZ

CityQ CityA

CityR CityB

CityS CityC

CityT CityD

CityU CityE

CityV CityF

CityW City

G

CityX


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SAMPLE

3PLMarketInsights(2/2)

Highestdemand

for

3PL

services

comes

from

the

Consumer

electronics

&

durables

and

pharmaceuticals

RegionwiseWestaccountshigherdemandfor3PLservicesinIndia

DemandfromVariousSectors(2011) DemandfromDifferentRegions(2011)

SectorH

SectorG

SectorF

SectorE

SectorD

SectorC

SectorB

SectorA

a8%

a7%a6%

a4%

a4%

a3%

a2%

a1%

b3%

b4%

b2%

b1%

RegionD

RegionC

RegionB

RegionA



11/2711

SAMPLEChangesinUseof3PLServicesGloballySurvey

Result

on

Use

of

3PL

Services

Worldwide

PositiveResponsesonReturningtoInsourcing

Result

PositiveResponsesonIncreasedUsageof3PLServices

0

50

100

%Respondents

Shipper

y

3PL

x

0

50

100

%Respondents

Region

D

y4

Region

C

y3

Region

B

y2

Region

A

y1

0

20

40

%Respondents

Shipper

q

3PL

p

0

50

100

n

3PL

m

%Respondents

Shipper

Result


Surveyresults

Note:1,561industryexecutivesandmanagersrepresentingusersandnonusersof3PLservices(shippersrespondents)and697executivesandmanagers

representingfirmsthatprovide3PLservices(3PLrespondents)acrosstheglobeweresurveyedinXX

PositiveResponsesonReductionof3PLsUsed


12/2712

SAMPLEShipper 3PLRelationship

0

50

100

BenefitB

a2

BenefitA

a1

BenefitE

a5

BenefitD

a4

BenefitC

a3

%RespondentsShippers

Benefits

from

Use

of

3PL

Services

Success

Factors

Openness,transparency&

goodcommunication

Flexibilitytoholdcurrent&

futurebusinessneeds

Interestingainsharing

between3PLs&shippers

0

50

100

%Respondents

Shipper

y

3PL

x

Result

0

50

100

%Respondents

Shipper3PL

q

p

Result

0

20

40

60

%Respondents

Shipper

n

3PL

m

Result

Result


Note:1,561industryexecutivesandmanagersrepresentingusersandnonusersof3PLservices(shippersrespondents)and697executivesandmanagers

representingfirmsthatprovide3PLservices(3PLrespondents)acrosstheglobeweresurveyedinXX


13/2713

SAMPLE

Drivers&Challenges

Drivers

Economicgrowth

HighcostofLogisticsinIndia

GrowthinConsumerElectronicsand

DurablesIndustry

Growthin

Auto

&

Auto

Components

Sector

GrowthinRetailSector

PhasedimplementationofVAT

GovernmentInfrastructureInitiatives

Challenges


HighInventoryLevels

Lackof

Skilled

Manpower

LackofTrustandAwareness


i h i i d d f i d i


14/2714

SAMPLE Impact

Economicgrowthiscreatingdemandfor3PLservicesandisamajordriverinthemarket

EconomicGrowth(1/2)

xx

KeyEconomicIndicators

GDPGrowthTrend* RapidUrbanization

0

2

4

6

8

10

%

20

a5

20

a4

20

20

a3a2

20

a1

0

10

20

30

40

20

b2b1

20

b5

20

b4

20

b3

20

%

*Note:Figuresforfinancialyear ApriltoMarch


Si l d i l d i h hi h d i i


15/27

15

SAMPLE Impact

Simultaneouscost

reduction

coupled

with

high

productivity

byelectronicsmanufacturerswilldrivethe3PLmarket

Growthin

Consumer

Electronics

and

Durables

Industry

xx


IndiasConsumerElectronicsandDurablesMarket SalesTrendsinConsumerElectronics

0

200

400

600

INRbn

xx%

20

x2

20

x1

0

5,000

10,000

15,000

20,000xx%

20

b4

b3

000

a4a3

a2

a1

b2

20

b1

TypeB

TypeDTypeC

TypeA

G i d d 3PL i f bil d


16/27

16

SAM

PLE ImpactGrowing

dependence

on

3PL

services

from

automobiles

and

autocomponentssectortofacilitatemarketgrowth

Growthin

Auto

&

Auto

Components

Sector

xx


GrowthinAutomobileMarket GrowthinAutoComponentsMarket

0

5,000

a2a1

20

INRbna%

20

a5

20

a4

20

a3

20

0

5,000

10,000

b5

INRbn

c%

b%

20

b6

20

b4

2020

b3

20

b2

20

b1

Note:AutocomponentsincludesEngineParts,DriveTransmission&SteeringParts,

Body&

Chassis,

Suspension

&

Braking

Parts

Equipments,

Electrical

Parts,

Others

GrowthinPassengerCarExportedfromIndia GrowthinVehiclesSoldinIndia

0

50,000

Units d%

20

c1c2

20

e%

20

d2

20

d1

000Units

2,000

1,000

0

e6%e3% e5%

e2%e4%

e1%

TypeF

TypeC

TypeE

TypeB

TypeD

TypeA

3PL id d t t i th i i d h


17/27

17

SAMPLE Impact

3PLproviders

need

to

customize

their

services

and

charge

competitiveratessoastobenefitfromIndiasretail boom

Growthin

Retail

Sector

xx


0

20

40

60

20e

y

y1%

y2%

20

8.4%

x

x1%

x2%

TypeA TypeB

GrowthinRetailMarketinIndia

P d i d t i f t t t j b t l


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18

SAMPLE

Poorand

inadequate

infrastructure

acts

as

amajor

obstacle

togrowthof3PLmarketinIndia

xx


AveragespeedofCommercialVehicle(20)

0

50

100

CountryB

kmph

y

CountryA

x

xx


Result

Impact

L k f t t d i h i th th f 3PL


19/27

19

SAMPLE

Lackof

trust

and

awareness

is

hampering

the

growth

of

3PL

sector

xx

Lackof

Trust

and

Awareness

3PLActivityas%ofTotalLogisticsOperations(20)

0

20

40

60

80

%

CountryD

z

CountryC

y

x

CountryBCountryA

w


xxxx

xx

ViciousCycle

Impact

3PL i it i b tt d ti it ith i i i t t


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20

SAMPLE

3PLis

witnessing

better

productivity

with

rising

investments

inGPS,RFID,onlineanalytics&newsupplychaintools

xx

xx

xx

xx

Enterprise

Applications

CommunicationTechnology

CompetitiveAdvantage

Material

H

andling

IdentificationTechnology



21/27

21

SAMPLE

MajorPublicCompanies Summary

1,000

1,200

1,400

1,600

1,800

2,000

2,200

2,400

2,600

2,800

5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000

Net

Profit/Loss

TotalIncome

m4

m2m3

m1

SizeoftheBubblerepresentsMarket

CapitalizationinINRbn


CompanyBCompanyA

CompanyC CompanyD

Note:AllfiguresareinINRmnandarebasedonthelatestfinancialsavailable


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22

SAMPLE

KeyPeople

ProductsandServices

CompanyInformation OfficesandCentres India

CorporateAddress

TelNo.

FaxNo.

Website

YearofIncorporation

TickerSymbol

StockExchange

Category Products/Services

Name Designation

HeadOffice

Public:DomesticCompany PlayerA(1/3)

Mumbai



23/27

23

SAMPLE

FinancialSnapshot KeyRatios

FinancialSummary

ThecompanyearnedanetprofitofINR2,345.9mninFY2012,as

comparedtonetprofitofINR2,228.7mninFY2011

ThecompanyreportedtotalincomeofINR 35,858.4mninFY2012,

registeringanincreaseof4.3%overFY2011

Thecompanyearnedanoperatingmarginof8.78%inFY2012,a

decreaseof0.19percentagepointsoverFY2011

Thecompanyreporteddebttoequityratioof0.86inFY2012,a

decreaseof1.63%overFY2011

KeyFinancialPerformanceIndicators

Indicators Value(27/11/2012)

MarketCapitalization(INRmn) xx

TotalEnterpriseValue(INRmn) xx

EPS(INR) xx

PERatio

(Absolute) xx

Improved Decline

NetProfit/LossTotalIncome

35,858.434,381.028,803.1

20,836.4

010,000

20,000

30,000

40,000

0

1000

2000

3000

INRmnINRmn

2012201120102009


Particularsyoychange

(201211)2012 2011 2010 2009

ProfitabilityRatios

OperatingMargin 0.19 8.78% 8.97% 7.61% 8.01%

NetMargin 0.06 6.54% 6.48% 5.76% 6.24%

ProfitBeforeTaxMargin 0.15 8.44% 8.58% 7.77% 8.13%

ReturnonEquity 0.48 15.42% 14.94% 13.74% 13.07%

Returnon

Capital

Employed 1.52 14.71% 13.18% 13.53% 13.95%

ReturnonWorkingCapital 11023.91

10973.56%50.35% 46.22% 36.95%

ReturnonAssets 0.32 8.27% 7.95% 8.07% 8.62%

ReturnonFixedAssets 4.55 16.76% 12.20% 19.68% 23.75%

CostRatios

Operatingcosts(%ofSales) 0.19 91.11% 90.92% 92.34% 91.90%

Administrationcosts

(%

of

Sales)17.24 17.24% 0.00% 6.07% 8.64%

Interestcosts(%ofSales) 0.03 1.65% 1.62% 0.68% 1.12%

LiquidityRatios

CurrentRatio 48.94% 1.00 1.95 1.82 2.13

CashRatio 43.37% 0.26 0.47 0.63 0.83

LeverageRatios

Debt

to

Equity

Ratio

1.63% 0.86 0.88 0.70 0.52DebttoCapitalRatio 20.15% 0.27 0.34 0.24 0.17

InterestCoverageRatio 3.90% 5.39 5.61 11.27 7.20

EfficiencyRatios

FixedAssetTurnover 35.97% 2.53 1.86 3.39 3.77

AssetTurnover 3.01% 1.25 1.21 1.39 1.37

CurrentAssetTurnover 36.26% 5.10 3.74 3.59 3.11

WorkingCapital

Turnover

21677.73%

1655.74 7.67 7.97 5.86

CapitalEmployedTurnover 2.23% 2.33 2.28 2.37 2.07



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SAMPLE

KeyBusinessSegments KeyGeographicSegments

BusinessHighlights

Description News

Overview

3PL&Warehousing

Acquisitions

7%7%

0%

50%

100%

%

2010

83%

10%

2009

83%

10%

2008

94%

6%

MultimodalTransportOperations

Project&EngineeringSolutions

ContainerFreightStations


28% 27% 29%

16%15%15%

4%5%

6% 2%2%

2%2%2%

0%

50%

100%

2009

29%

%

19%

31%

18%

20102008

30%

16%

India

Australia&NewZealand Europe

Africa

FarEast

America

Mediterranean



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25

SAMPLE

RecentTransactions

Deals&Investmentsin3PLfirms

Date Target Acquirer/Investor Amount(INRmn) Stake

Jul12 Company1 Company13 xx xx

Apr12 Company

2 Company

14 xx xx

Feb12 Company3 Company15 xx xx

Dec11 Company4 Company16 xx xx

Jul11 Company5 Company17 xx xx

Apr11 Company6 Company18 xx xx

Feb11 Company7 Company19 xx xx

Oct10 Company8 Company20 xx xx

Oct10 Company9 Company21 xx xx

Sep10 Company10 Company22 xx xx

Jun

10 Company

11 Company

23 xx xx

Mar10 Company12 Company24 xx xx

Transactionsin

3PL

Companies

in

India


Note:Thislistisnotexhaustive


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26

SAMPLE

Lackof3PLoperatorsinX

Issues Recommendations

LessXservicelogisticsproviders

Noncomplianceofbestpractices

byY

ZZimposedonshippinglineswhichconsumesuptheirprofit

xx

xx

xx

xx

StrategicRecommendations(1/3)



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27

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