Insert Cover Image using Slide Master View Do not distort

ThirdPartyLogisticsMarket India
December2012

ExecutiveSummary
Market
Morethanhalf ofthegrossrevenuegeneratedinglobalThirdPartyLogistics(3PL)marketwereaccountedby topxxplayersin2011 3PLMarketinIndiaisestimatedtoreacharoundINRxxbnby20 ataCAGRofnearlyxx% during201116 ThemarketisrapidlyevolvinginIndiawithmorecustomersusingoutsourcingtoreducecost

Drivers

Challenges

Drivers& Challenges

Economicgrowth HighcostofLogisticsinIndia GrowthinConsumerElectronicsandDurables Industry GrowthinAuto&AutoComponentsSector GrowthinRetailSector PhasedimplementationofVAT InfrarelatedGovtinitiatives IdentificationTechnology Barcode,RFID

Technology Adoption

P M A S

LE

InfrastructureCongestion HighInventoryLevels LackofSkilledManpower LackofTrustandAwareness

Material Handling Technology Automated Guided VehicleSystem(AGVS),InformationdirectedSystem MajorPlayers CompanyA CompanyB CompanyE CompanyH

Communication Technology Global PositioningSystem(GPS)Tracking InformationTechnology ERP,eBizNET SCsuite,VineRetail

CompanyC CompanyF CompanyI 2

Competition

CompanyD CompanyG

THIRDPARTYLOGISTICSMARKETININDIA2012.PPT

Introduction MarketOverview
Global India

3PL ShipperRelationship Drivers&Challenges Competition RecentTransactions StrategicRecommendations Appendix

THIRDPARTYLOGISTICSMARKETININDIA2012.PPT

TechnologyAdoption

P M A S

LE

Evolutionof3PL

SAMPLE
1990s Present 1980s 1970s Valueadded servicessuch aspackaging, labeling, systems supportand inventory management wereoffered Higher outsourcingand morevalue addedservices (VAS*)arebeing offered

Importance onimproved 1950s&1960s productivity, cost reduction Logisticsoutsourcing andlong waslimitedto term transportationand contracts warehousing Mainlyshortterm transactions

*VASincludesimport/exportmanagement,customsclearance,clearance,freightforwarding,customerservice,ratenegotiation, orderprocessing,assembly/installation,distribution,orderfulfillment,reverselogistics,consultingservicesthatinclude distributionnetworkplanning,siteselectionforfacilitylocation,fleetmanagement,freightconsolidation,logisticsauditetc. THIRDPARTYLOGISTICSMARKETININDIA2012.PPT

Demandforservicesofexpertlogisticsoutsourcing providersisrisingworldwide
MarketOverviewGlobal
GlobalThirdPartyLogistics(3PL)marketiscurrently valuedataroundINRxxbn Majorshareofrevenuegeneratediscontributedby RegionA,RegionBandRegionC Factorscontributingtothegrowthofglobal3PL market:
xx

MarketSize&Growth
INRbn
8,000 6,000 4,000 2,000 0

5.2% x1 x2

P M A S

LE
a4% a5% a3%

20

20

Note:Marketsizeconsidersglobal3PLgrossrevenuesandtheconversionisdone using2010exchangerate

Global3PLRevenues(2011)
a1% RegionA RegionB RegionC RegionD RegionE a2%

Note:GrossLogisticsRevenueofTop50Global3PLplayershavebeenconsidered THIRDPARTYLOGISTICSMARKETININDIA2012.PPT

MajorPlayersinGlobal3PLMarket

SAMPLE
a1% a2% a11% a3% a4% a6% a5% a8% a10% a7% a9% xxisthemarket leaderinglobal3PL market

ShareofTop10Global3PLPlayers*(20)

PlayerA PlayerB PlayerC PlayerD

PlayerE PlayerF PlayerG PlayerH

PlayerI PlayerJ PlayerK

Note:*amongthetop50global3PLplayers THIRDPARTYLOGISTICSMARKETININDIA2012.PPT

ThirdpartylogisticsisfastgainingpopularityintheIndian logisticsmarket
MarketOverviewIndia(1/3) MarketSizeandGrowth
INRbn xx% x5 x4 x3 x6

Thirdpartylogistics(3PL)marketinIndiaisata nascentstage,currentlyataroundxx%ofoverall logisticsmarket Findings

3PLMarketComprisesofTwoSegments AssetBased

P M A S

LE
x1 20

x2

20

20

20

20

20

Shareof3PLinTotalLogistics
20
a1%

NonAssetBased

20e
b1%

Ownsomeoftheassets usedinsupplychain managementwhichoften includetrucks,distribution centresandwarehouses

Doesnotownsuchassets Possessflexibilitythat allowsthemtorespondto clients needsonacaseby casebasis

a2% xx xx

b2%

THIRDPARTYLOGISTICSMARKETININDIA2012.PPT

Costconsiderationsarethemajorreasonsforthe outsourcingofvariouslogisticsservices
MarketOverviewIndia(2/3)
Findings
60 40

IncreaseinShareofLocalCompaniesOutsourcingServices
% x2
Shareoflocal companiesoutsourcing hasincreasedbyalmost xxtimesinxxyears

Top5ReasonsforOutsourcingLogisticsServices
IMPACT Low Medium

P M A S
0

20

LE
x1 20

20

Note:Approximate%share

Useof3PLServices
Logisticscostgoes downby

High
Logisticscostreduction Focusoncorecompetencies

Improvedcustomerservices Improvereturnonassets Toincreaseinventoryturn

THIRDPARTYLOGISTICSMARKETININDIA2012.PPT

~xx%
therebyattractingmore customersinthissector
8

3PLMarketPresenceinIndia
North CityA CityB CityC CityD CityE CityF CityG CityI East CityJ CityK CityL CityM CityN

E L P M SA
South CityO CityP CityQ CityR CityS CityT CityU CityV CityW CityX
THIRDPARTYLOGISTICSMARKETININDIA2012.PPT

West CityY CityZ CityA CityB CityC CityD CityE CityF CityG

3PLMarketInsights(2/2)
Highestdemandfor3PLservicescomesfromtheConsumerelectronics&durablesandpharmaceuticals RegionwiseWestaccountshigherdemandfor3PLservicesinIndia

DemandfromVariousSectors(2011)
a8% a6% a7% a4% a1%

a4% a2% a3% SectorA SectorB SectorC SectorD

P M A S
SectorG SectorH

LE

DemandfromDifferentRegions(2011)
b4% b1% b3%

b2% SectorE SectorF

RegionA RegionB

RegionC RegionD

THIRDPARTYLOGISTICSMARKETININDIA2012.PPT

10

ChangesinUseof3PLServicesGlobally
SurveyResultonUseof3PLServicesWorldwide
PositiveResponsesonIncreasedUsageof3PLServices
%Respondents
100 50 0

SAMPLE
y2 y3 y4 Surveyresults

%Respondents y
100

y1
50 0

3PL

Shipper

RegionRegionRegionRegion A B C D

PositiveResponsesonReturningtoInsourcing
%Respondents p 40 q
20 0
Result

PositiveResponsesonReductionof3PLsUsed
%Respondents
100 50 0

Result

3PL

Shipper

3PL

Shipper

Note:1,561industryexecutivesandmanagersrepresentingusersandnonusersof3PLservices(shippersrespondents)and697executivesandmanagers representingfirmsthatprovide3PLservices(3PLrespondents)acrosstheglobeweresurveyedinXX THIRDPARTYLOGISTICSMARKETININDIA2012.PPT

11

Shipper 3PLRelationship
%Respondents
100 50

ShippersBenefitsfromUseof3PLServices
a4 a3 a5

SAMPLE
Result BenefitD BenefitE

a1
0

a2 BenefitB

BenefitA

BenefitC

SuccessFactors

Openness,transparency& goodcommunication
Result

Flexibilitytoholdcurrent& futurebusinessneeds
%Respondents p 100
50 0
Result

Interestingainsharing between3PLs&shippers
Result

%Respondents
100

x
50 0

%Respondents m 60
40 20 0

3PL

Shipper

3PL

Shipper

3PL

Shipper

Note:1,561industryexecutivesandmanagersrepresentingusersandnonusersof3PLservices(shippersrespondents)and697executivesandmanagers representingfirmsthatprovide3PLservices(3PLrespondents)acrosstheglobeweresurveyedinXX THIRDPARTYLOGISTICSMARKETININDIA2012.PPT

12

Drivers&Challenges

Drivers
Economicgrowth HighcostofLogisticsinIndia GrowthinConsumerElectronicsand DurablesIndustry GrowthinAuto&AutoComponents Sector GrowthinRetailSector PhasedimplementationofVAT GovernmentInfrastructureInitiatives

Challenges
InfrastructureCongestion

P M A S

HighInventoryLevels LackofSkilledManpower LackofTrustandAwareness

LE

THIRDPARTYLOGISTICSMARKETININDIA2012.PPT

13

Economicgrowthiscreatingdemandfor3PLservicesandis amajordriverinthemarket
EconomicGrowth(1/2)
xx

E L P M SA
KeyEconomicIndicators RapidUrbanization
% a4 a5
40 30 20 10 0

Impact

GDPGrowthTrend*
%
10 8 6 4 2 0

a1

a2

a3

b1

b2

b3

b4

b5

20

20

20

20

20

20

20

20

20

20

*Note:Figuresforfinancialyear ApriltoMarch THIRDPARTYLOGISTICSMARKETININDIA2012.PPT

14

Simultaneouscostreductioncoupledwithhighproductivity byelectronicsmanufacturerswilldrivethe3PLmarket
GrowthinConsumerElectronicsandDurablesIndustry
xx

Impact

E L P M SA
SalesTrendsinConsumerElectronics
000 xx% x1
20,000

IndiasConsumerElectronicsandDurablesMarket
INRbn
600 400 200 0

xx% a1 a2 a4 20 a3 b1 b2 b3 b4 20 TypeB TypeD 15

x2

15,000 10,000 5,000 0

20

20

TypeA TypeC

THIRDPARTYLOGISTICSMARKETININDIA2012.PPT

Growingdependenceon3PLservicesfromautomobilesand autocomponentssectortofacilitatemarketgrowth
GrowthinAuto&AutoComponentsSector
xx

P M SA
a5
10,000 5,000 0

LE
b1 20

Impact

GrowthinAutomobileMarket
INRbn
5,000

GrowthinAutoComponentsMarket
INRbn c% b3 20 b4 20 b5 b6

a% a1 a2 a3 a4

b% b2 20

20

20

20

20

20

20

20

Note:AutocomponentsincludesEngineParts,DriveTransmission&SteeringParts, Body&Chassis,Suspension&BrakingPartsEquipments,ElectricalParts,Others

GrowthinPassengerCarExportedfromIndia
Units
50,000 0

GrowthinVehiclesSoldinIndia
000Units e% d1 d2
e1% TypeA e2% e3% e4% e5% TypeB TypeC e6% TypeD TypeE TypeF

d% c1

c2

2,000 1,000 0

20

20

20

20

THIRDPARTYLOGISTICSMARKETININDIA2012.PPT

16

3PLprovidersneedtocustomizetheirservicesandcharge competitiveratessoastobenefitfromIndiasretail boom

GrowthinRetailSector
xx

Impact

P M A S
60 40 20 0

LE

GrowthinRetailMarketinIndia
8.4% x x2% x1% 20 TypeA TypeB 17

y y2% y1%

20e

THIRDPARTYLOGISTICSMARKETININDIA2012.PPT

Poorandinadequateinfrastructureactsasamajorobstacle togrowthof3PLmarketinIndia
InfrastructureCongestion
xx

P M A S
Result

LE

Impact

AveragespeedofCommercialVehicle(20)

kmph
100 50 0

y x

CountryA

CountryB

xx

THIRDPARTYLOGISTICSMARKETININDIA2012.PPT

18

Lackoftrustandawarenessishamperingthegrowthof3PL sector
LackofTrustandAwareness
xx

Impact

3PLActivityas%ofTotalLogisticsOperations(20)
%
80 60 40 20 0

z y x w

E L P M SA
ViciousCycle
xx xx xx

CountryA

CountryB

CountryC

CountryD

THIRDPARTYLOGISTICSMARKETININDIA2012.PPT

19

3PLiswitnessingbetterproductivitywithrisinginvestments inGPS,RFID,onlineanalytics&newsupplychaintools
xx

P M SA
Communication Technology xx

LE

xx

Identification Technology

Competitive Advantage Material Handling

xx

Enterprise Applications

THIRDPARTYLOGISTICSMARKETININDIA2012.PPT

20

MajorPublicCompanies Summary
NetProfit/Loss
2,800 2,600 2,400 2,200 2,000 1,800 1,600 1,400

SizeoftheBubblerepresentsMarket CapitalizationinINRbn

m2
1,200 1,000 5,000 10,000 15,000

P M A S
m3
20,000 25,000

LE
30,000

m1

m4

35,000

40,000

45,000

TotalIncome CompanyA CompanyC CompanyB CompanyD

Note:AllfiguresareinINRmnandarebasedonthelatestfinancialsavailable THIRDPARTYLOGISTICSMARKETININDIA2012.PPT

21

Public:DomesticCompany PlayerA(1/3)
CompanyInformation
CorporateAddress TelNo. FaxNo. Website YearofIncorporation TickerSymbol StockExchange

OfficesandCentres India

ProductsandServices
Category Products/Services

P M A S

LE
Mumbai

HeadOffice

KeyPeople
Name Designation

THIRDPARTYLOGISTICSMARKETININDIA2012.PPT

22

Public:DomesticCompany PlayerA(2/3)
FinancialSnapshot
INRmn
40,000 30,000 20,000 10,000 0 20,836.4

KeyRatios
NetProfit/Loss INRmn
34,381.0 35,858.4 3000 2000 1000 0
Particulars yoychange 2012 (201211)
0.19 0.06 0.15 0.48 1.52 11023.91 0.32 4.55 8.78% 6.54% 8.44% 15.42%

TotalIncome
28,803.1

2011

2010

2009

ProfitabilityRatios
OperatingMargin NetMargin ProfitBeforeTaxMargin ReturnonEquity ReturnonCapitalEmployed ReturnonWorkingCapital ReturnonAssets ReturnonFixedAssets
8.97% 6.48% 8.58% 14.94% 7.61% 5.76% 7.77% 13.74% 13.53% 46.22% 8.07% 19.68% 8.01% 6.24% 8.13% 13.07% 13.95% 36.95% 8.62% 23.75%

2009

2010

2011

FinancialSummary

ThecompanyearnedanetprofitofINR2,345.9mninFY2012,as comparedtonetprofitofINR2,228.7mninFY2011

ThecompanyreportedtotalincomeofINR35,858.4mninFY2012, registeringanincreaseof4.3%overFY2011 Thecompanyearnedanoperatingmarginof8.78%inFY2012,a decreaseof0.19percentagepointsoverFY2011 Thecompanyreporteddebttoequityratioof0.86inFY2012,a decreaseof1.63%overFY2011

P M A S
xx xx xx xx

2012

CostRatios

Operatingcosts(%ofSales) Administrationcosts(%of Sales) Interestcosts(%ofSales) CurrentRatio CashRatio DebttoEquityRatio DebttoCapitalRatio InterestCoverageRatio

LE

14.71% 13.18% 50.35% 10973.56% 8.27% 7.95% 16.76% 12.20%

0.19 17.24 0.03

91.11% 17.24% 1.65%

90.92% 0.00% 1.62%

92.34% 6.07% 0.68%

91.90% 8.64% 1.12%

LiquidityRatios
48.94% 43.37% 1.00 0.26 1.95 0.47 1.82 0.63 2.13 0.83

LeverageRatios
1.63% 20.15% 3.90% 0.86 0.27 5.39 0.88 0.34 5.61 0.70 0.24 11.27 0.52 0.17 7.20

KeyFinancialPerformanceIndicators
Indicators
MarketCapitalization(INRmn) TotalEnterpriseValue(INRmn) EPS(INR) PERatio(Absolute)

Value(27/11/2012)

EfficiencyRatios
FixedAssetTurnover AssetTurnover CurrentAssetTurnover WorkingCapitalTurnover CapitalEmployedTurnover
35.97% 3.01% 36.26% 21677.73% 2.23% 2.53 1.25 5.10 1655.74 2.33 1.86 1.21 3.74 7.67 2.28 3.39 1.39 3.59 7.97 2.37 3.77 1.37 3.11 5.86 2.07

Improved

Decline

THIRDPARTYLOGISTICSMARKETININDIA2012.PPT

23

Public:DomesticCompany PlayerA(3/3)
KeyBusinessSegments
ContainerFreightStations Project&EngineeringSolutions MultimodalTransportOperations

KeyGeographicSegments
Australia&NewZealand Africa Mediterranean America FarEast India Europe

%
100% 50% 0%

% 6% 94% 10% 83%

7%

10% 83%

7%

100% 50% 0%

2008

2009

2010

BusinessHighlights
Description
Overview

News

P M A S

LE
28% 30%

16%

2% 6% 16%

18% 27% 31% 2009

2% 2% 5% 15%

19% 29% 29% 2010

2% 2% 4% 15%

2008

3PL&Warehousing

Acquisitions

THIRDPARTYLOGISTICSMARKETININDIA2012.PPT

24

RecentTransactions

Transactionsin3PLCompaniesinIndia
Date
Jul12 Apr12 Feb12 Dec11 Jul11 Apr11 Feb11 Oct10 Oct10 Sep10 Jun10 Mar10 Company1 Company2 Company3 Company4 Company5 Company6 Company7 Company8 Company9 Company10 Company11 Company12

SAMPLE
Deals&Investmentsin3PLfirms
Acquirer/Investor
Company13 Company14 Company15 Company16 Company17 Company18 Company19 Company20 Company21 Company22 Company23 Company24

Target

Amount(INRmn)
xx xx xx xx xx xx xx xx xx xx xx xx

Stake
xx xx xx xx xx xx xx xx xx xx xx xx

Note:Thislistisnotexhaustive THIRDPARTYLOGISTICSMARKETININDIA2012.PPT

25

StrategicRecommendations(1/3)
Issues Recommendations

Lackof3PLoperatorsinX

xx

LessXservicelogisticsproviders

Noncomplianceofbestpractices byY

P M A S
xx xx xx

LE

ZZimposedonshippinglines whichconsumesuptheirprofit

THIRDPARTYLOGISTICSMARKETININDIA2012.PPT

26

Thankyoufortheattention
TheThirdPartyLogisticsMarket India2012reportisapartofNetscribes Transportation& LogisticsSeries.
Foranyqueriesorcustomizedresearchrequirements,contactusat:

Phone: EMail:

+913340276214/6215 info@netscribes.com

Followuson:

AboutNetscribes Netscribesisaknowledgeconsultingandsolutionsfirmwithclienteleacrosstheglobe.Thecompanysexpertisespansareasofinvestment& businessresearch,business&corporateintelligence,contentmanagementservices,andknowledgesoftwareservices.Atitscoreliesatrue valuepropositionthatdrawsuponavastknowledgebase.Netscribesisaonestopshopdesignedtofulfilclients profitabilityandgrowth objectives.

Disclaimer:Thisreportispublishedforgeneralinformationonly.Althoughhighstandardshavebeenusedinthepreparationofthisreport, Netscribesisnotresponsibleforanylossordamagearisingfromuseofthisdocument.ThisdocumentisthesolepropertyofNetscribes.and priorpermissionisrequiredforguidelinesonreproduction.

THIRDPARTYLOGISTICSMARKETININDIA2012.PPT

27