third party logistics market indiathird party logistics is one of the growing sectors in india that...

Third Party Logistics Market – India

November 2014

2

Executive Summary

Market

Drivers & Challenges

Competitive Landscape

Drivers Economic Growth

High Cost of Logistics in India

Growth in Consumer Electronics and Durables Industry

Growth in Auto & Auto Components Sector

Growth in Retail Sector

Phased Implementation of VAT

Infra Related Government Initiatives

Technology Adoption

Challenges Infrastructure Congestion

High Inventory Levels

Lack of Skilled Manpower

Lack of Trust and Awareness

Key Players

Company A Company B Company C

Company D Company E Company F

Third party logistics is one of the growing sectors in India that has attracted a number of players

The market is rapidly evolving in India with more customers using outsourcing options to reduce cost

Identification Technology – Barcode, RFID

Material Handling Technology - Automated Guided Vehicle System (AGVS) , Information directed System

Communication Technology - Global Positioning System (GPS) Tracking

Information Technology – ERP, eBizNET – SC suite, Vin eRetail

THIRD PARTY LOGISTICS MARKET IN INDIA 2014.PPT

SAMPLE

3 THIRD PARTY LOGISTICS MARKET IN INDIA 2014.PPT

•Macroeconomic Indicators

•Introduction

•Market Overview Global

India

•3PL – Shipper Relationship

•Drivers & Challenges

•Technology Adoption

•Competitive Landscape

•Strategic Recommendations

•Opportunities

•Appendix

4

Global 3PL Market – Overview (1/2)

Demand for services of expert logistics outsourcing providers is rising worldwide

• Text

Market Size & Growth – 3PL Revenues

INR bn

X

2013 2012 2011


Europe

North America

Asia-Pacific

Latin America

Other Regions

Global 3PL Revenues Break-up (2012)

SAMPLE

5

Globalization of trade and technological developments has led to an increase in demand for 3PL providers

Global 3PL Market – Overview (2/2)

Share of Top 10 Global 3PL Players (2013)


• Text

SDV (Bolloré Group)

DSV

Panalpina

Sinotrans

CEVA Logistics

DB Schenker Logistics

C.H. Robinson Worldwide

Kuehne + Nagel

Nippon Express

DHL Supply Chain & Global Forwarding

SAMPLE

6

Third party logistics is fast gaining popularity in the Indian logistics market

• Text


Indian Third Party Logistics – Market Overview (1/2)

Market Size & Growth – Third Party Logistics

2013

INR bn

x

2018e 2017e 2016e 2015e 2014e

SAMPLE

7

Outsourced Logistics Services

Outsourced Logistics Services

Share of Logistics Expenditure in Global Outsourcing (2013)

Others

Outsourcing Expenditure


8

Impact

Simultaneous cost reduction coupled with high productivity by electronics manufacturers will drive the 3PL market

Growth in Consumer Electronics and Durables Industry

• Text

India’s Consumer Electronics and Durables Market

INR bn

Y

2015e 2011


SAMPLE

9

Impact

Growing dependence of automobiles and auto components sector on 3PL services to facilitate market growth

Growth in Auto & Auto Components Sector

• Text

Growth in Automobile Production in India Growth in Revenue – Auto Component Sector

0

2013-14 2012-13

Y

No. of Vehicles INR bn

Z

2012-13 2011-12 2010-11 2009-10

Note: Auto components includes Engine Parts, Drive Transmission & Steering Parts, Body & Chassis, Suspension & Braking Parts Equipments, Electrical Parts, Others


SAMPLE

10

Impact

3PL providers need to customize their services and charge competitive rates to benefit from India’s retail boom

Growth in Retail Sector • Text

Organized Retail Market Space

0

X

2020e 2010

INR tn

2011-12 2010-11 2012-13

No. mn sq ft

Y

Number of malls

Growth of Malls in India

x

Increasing retail space across the country will augment growth of the

3PL market


SAMPLE

11

Porter’s Five Forces Analysis

Competitive Rivalry

• Text

Bargaining Power of Suppliers

• Text

Bargaining Power of Buyers

• Text

Threat of Substitutes

• Text

Threat of New Entrants

• Text

Impact High

Impact Medium

Impact Low

Impact Low

Impact Medium


12

Public: Domestic Company – ABC (1/5)

Key People

Products and Services

Company Information Offices and Centers – India

Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation

Ticker Symbol

Stock Exchange

Category Products/Services

Products

Name Designation

Head Office

Hyderabad

SAMPLE THIRD PARTY LOGISTICS MARKET IN INDIA 2014.PPT

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Financial Snapshot Key Ratios

Financial Summary

• The company incurred a net profit of INR mn in FY 2013, as compared to net profit of INR mn in FY 2012

• The company reported total income of INR mn in FY 2013, registering decrease of % over FY 2012

• The company earned an operating margin of in FY 2013, a decrease of percentage points over FY 2012

• The company reported debt to equity ratio of Y 2013, a decrease of over FY 2012

Key Financial Performance Indicators

Indicators Value (5/08/2014) Market Capitalization (INR mn)

Total Enterprise Value (INR mn)

EPS (INR)

PE Ratio (Abs)

Particulars y-o-y change

(2013-12) 2013 2012 2011 2010

Profitability Ratios

Operating Margin

Net Margin

Profit Before Tax Margin

Return on Equity

Return on Capital Employed

Return on Working Capital

Return on Assets

Return on Fixed Assets

Cost Ratios Operating costs (% of Sales)

Administration costs (% of Sales)

Interest costs (% of Sales)

Liquidity Ratios Current Ratio

Cash Ratio

Leverage Ratios Debt to Equity Ratio

Debt to Capital Ratio

Interest Coverage Ratio

Efficiency Ratios Fixed Asset Turnover

Asset Turnover

Current Asset Turnover

Working Capital Turnover

Capital Employed Turnover

Improved Decline


Total Income Net Profit/Loss

INR mn INR mn

2013 2011 2012 2010


14


Key Business Segments Key Geographic Segments

2011 2012 2013 2010 2013

India Text Text

Business Highlights (1/2)

Description News

Overview •Text

Text

SAMPLE THIRD PARTY LOGISTICS MARKET IN INDIA 2014.PPT

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Description News

Exports • Text

Retailing • Text

Marketing • Text


Business Highlights (2/2)

SAMPLE


16

Public: Domestic Company – ABC – SWOT Analysis (5/5)

• Text • Text

• Text • Text

T O

W S

SAMPLE


17

Private: Domestic Company – ABC (1/5)

Key People

Products and Services

Company Information Offices and Centers – India

Name Designation

Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation

Category Products/Services

Products

Head Office

SAMPLE PROJECT LOGISTICS MARKET IN INDIA 2014.PPT

18


Name No. of Shares held

Total

Ownership Structure

Ownership structure corresponds to Date of AGM: 5/08/2013

Shareholders of the Company

Bodies corporate

Foreign holdings

SAMPLE


19

Financial Snapshot Key Ratios

Particulars y-o-y change

(2013-12) 2013 2012 2011 2010

Profitability Ratios

Operating Margin

Net Margin Profit Before Tax Margin Return on Equity

Return on Capital Employed

Return on Working Capital

Return on Assets

Return on Fixed Assets

Cost Ratios Operating costs (% of Sales) Administration costs (% of

Sales) Interest costs (% of Sales)

Liquidity Ratios Current Ratio Cash Ratio

Leverage Ratios Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio

Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover


Improved Decline

Financial Summary

• The company incurred a net profit of INR mn in FY 2013, as

compared to net profit of INR mn in FY 2012

• The company reported total income of INR mn in FY 2013,

registering an increase of over FY 2012

• The company earned an operating margin of in FY 2013, an

increase of percentage points over FY 2012

• The company reported debt to equity ratio of in FY 2013, an

increase of %over FY 2012

Net Profit/Loss Total Income

2010

INR mn INR mn

2013 2012 2011


20

Business Highlights


Description News

Overview • Text

Packing Facility • Text

Distribution Network • Text

Exports • Text

SAMPLE


21

Private: Domestic Company – ABC – SWOT Analysis (5/5)

• Text • Text

• Text • Text

T O

W S

SAMPLE


22

Strategic Recommendations (1/2)

• Text

• Text

• Text

• Text

SAMPLE


23

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