www.sumedhaadvisors.com

Opportunity to invest in an exciting dry Bulk shipping company

www.sumedhaadvisors.com

The time to enter shipping industry is – “NOW”

The company is a Singapore based ocean freight transportation

company with focus on dry bulk cargo

Promoter has 17+ years of extensive experience in the Shipping

Industry, with a focus on dry bulk cargo in the last 9 years

Company will be owning and operating its own Panamax and

Supramax Ships. These ships will either be Chartered out or used to

execute Contracts of Affreightments .

Company will also be entering into contracts of affreightment for dry

bulk cargo and will be executing them using its own ships or Chartered

Ships

Company expects to move 4 Million MT of cargo in the initial year of

operations and achieve an annual growth of 2 Million MT in the first 5

years

Company will be initially focusing on BRIC countries and will gradually

expand into global markets

In $ M FY 13E FY 14E FY 15E FY 16E FY 17E

Revenue 21.53 23.89 48.63 52.30 60.06 EBITDA 15.84 17.42 39.66 43.68 50.05

EBITDA Margin 74% 73% 82% 84% 83% PAT 9.38 11.19 33.66 37.91 44.51 PAT Margin 44% 47% 69% 72% 74%

CONSOLIDATED FINANCIAL HIGHLIGHTS

Own ShipsFreight

Movement

Chartering out of Own Ships

Using Own Ships/ Charted Ships

REVENUE STREAMS

CONSOLIDATED OPERATIONAL HIGHLIGHTS

FY 13E FY 14E FY 15E FY 16E FY 17E

No of New Ships 2 2 2 2 2

No of Used Ships 2 2 2 2 2

Freight Moved (MT) 4 6 8 10 12

Gross Margin 70-80%

Gross Margin 25%-30%

2Sumedha Private

Transaction Summary

• Large Size of the industry: Shipping industry contributes to nearly USD 380 billion annually in freight charges to the global economy. Total volume of seaborne trade reached 8.02 billion tonnes in 2008 and accounted for 32.9 billion tonne-miles.

• Dry bulk segment experiencing fast growth of 7%-8%: Dry bulk segment of the shipping industry will see tremendous growth as smaller size dry bulk carriers are experiencing upturn in freight rates thus showing signs of improvement in demand. Large carriers have slowed down but with the world economy stabilizing, this segment will see moderate growth in the near future.

• Shipping industry is closely correlated to the world economy: The industry handles over 80 per cent of the volume of world trade. Hence there is direct correlation between economic conditions and shipping industry. Growth in GDP directly impacts the volume of trade and thus the shipping industry which plays major part in freight movements.

• Right time to enter the market is now: The world trade has seen considerabe growth in 2010 and 2011 after the slump in 2009. The emergence of new regional blocks and multilateral agreement among trading blocs and nations will create enormous opportunities for the shipping industry. Surveys by consulting firms indicate world shipping industry will experience tremendous growth over next few years.

INDUSTRY HIGHLIGHTS COMPANY HIGHLIGHTS

• Strong strategy : Company will be using Asset Based strategy to build a scalable shipping company augmented by Cargo movement using own and chartered ships. Cargo movement ensures balanced revenues. Since the company is entering the industry at the bottom of the cycle, which is on its way to recovery, asset play will ensure higher returns on investment

•Location Advantage : Being a Singapore based company gives tax benefits ( no Tax) as well as the security and pride of carrying the Singapore Flag on the Company’s Fleet. With a Ship Management office in Mumbai, Company will be able to hire best operational talent and will be able to run operations economically.

•Uniquely poised with Strong Relations: Founder has developed a very strong eco system within the shipping industry, comprising of Chartering companies, Commodity Importers/Exporters across BRIC & APAC countries, Ship Brokers, Finance Institutes and relations with Governments. Company will be leveraging this eco system to its fullest advantage.

• Highly accomplished Founder: 17+ years of progressive career in Shipping Industry, starting with a Seagoing career to head of a Ship Broking Desk to the President of one of the most reputed Dry Bulk Company.

3Sumedha Private

Contact Us

Equity investment needed -> USD 40 Mn

Type of Investor needed -> Financial investor with a long term perspective of at least 7 years

Proposed exit for the Investor -> IPO

INVESTMENT HIGHLIGHTS

Contact : Shyam PenumakaMail : shyam@sumedhaadvisors.comPhone : +91 98661-14627

4Sumedha Private