FOUR-S Consumer 21st Nov11 4th Dec11 (Soft) Track

LOGISTICS TRACK
Fortnightly Update on Indian Logistics Industry

News of the week

Logistics sector needs $10bn of annual equity investments Four-S Researchs upcoming research report on the logistics sector has calculated the annual investment requirement for the logistics sector. Our research team finds that the logistics sector needs investments of $20bn annually to cater to Indias growing logistics and transportation needs. Assuming a 1:1 debt-equity this implies a scope for investing equity capital upto $10bn annually. As the chart below shows, this is a substantial number, not too different from the moneys sector like road or irrigation are expected to soak up. PE investments towards this sector are miniscule as compared to the capital need. In the last four years, the sector has attracted around $1.5bn of PE money. In other words, PE sector is investing not even 5% of the amount the sector may be able to soak up. Four-S finds the PE sector needs to look afresh at this sector.

Content
News of the week 1

Investment Activity

News Update

Global News Update

Event Update

Stock Market Updates

To book your copies of India Logistics Report, write to seema@four-s.com

Peer Benchmarking

About Four-S Services

Units: $bn Source: India Logistics Report by Four-S Services, Planning Commission

Research Desk
Four-S Services is India's leading provider of high-end research, financial consulting and Investment banking services. We have executed projects for prestigious Indian as well as global corporations, investment banks, private equity funds, venture capitalists and hedge funds including Indias Top 5 PE Funds. For further information, please contact Seema Shukla at seema@four-s.com or reach us as http://www.four-s.com

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Investment Activity
Mergers & Acquisitions in 2010
Date 5-Mar 29-Mar Investor Nippon Yusen Kaisha Aqua Logistics Aqua Logistics Aqua Logistics Hitachi Transport M+R Spedag Group Aqua Logistics FedEx Caf Coffee Day Target TM International CIT Logistics TAG Logistics AGI Logistics Flyjac Logistics PL Shipping & Logistics Star Distribution Logistics AFL Logistics Sical Logistics Stake (%) 26 NA NA NA NA NA 60 NA 15% Amount ($ mn) NA NA NA NA 56.3 NA NA NA 45mn Business Logistics Services Logistics Logistics Logistics Logistics Logistics Warehousing & Distribution Logistics Logistics

30-Apr 3-Sep 14-Sep Nov 15-Nov

PE Deals in 2010
Date 5-Mar 9-Mar 15-Mar 25-Mar 10-Jun 11-Jun 8-Jul 13-Jul 7-Nov 15-Dec 20-Dec 23-Dec Investor IDFC Project Equity Mayfield Fund, SIDBI Venture Nine River Capital Reliance Venture Management, KPCB, Sherpalo Ventures Eredene Capital Nexus Venture Eredene Capital Rabobank Private Equity Jupiter Capital Eton Park Ashmore Alchemy India Equity Partners Target Karaikal Port Fourcee Infrastructure Global AgriSystems Reverse Logistics Ennore Container Terminal Sohan Lal Commodity Mgt Ocean Sparkle National Collateral Management Sical Logistics JSW Infrastructure Siesta Logistcs Swastik Roadlines Stake (%) NA NA NA NA 22.0 NA 8.2 NA 13.3% NA NA NA Amount ($ mn) 32.6 10.8 7.0 NA 35.0 2.1 11.1 8.0 9.7 125.0 10.0 10.0 Strategy Growth Growth Late Growth Growth Late Growth Growth PIPE Growth Growth Growth

Mergers & Acquisitions in 2011

Date 19-Jan 16-Feb 26-Apr 29-Apr 12-Jul 31-Oct Investor TVS Logistics Infrastructure India Plc Aqua Logistics Ltd SBS Holdings Royal Vopak Vikram Logistics Target MESCO (US) Vikram Logistics & Maritime Services Nikkos Logistics Atlas Logistics CRL Terminals Freightstar Stake (%) 100 37.39 70 80 100 NA Amount ($ mn) NA NA NA 33.3 61.8 28.8 Business Logistics Services Tranportation Logistics Services Logistics Services Liquid Storage Multimodal Logistics

PE Deals in 2011
Date 6-Jan 23-Mar 11-Apr 22-Apr 5-May 24-Jun 4-Jul 5-Jul 5-Jul 19-Aug Investor India Equity Partners Infrastructure India Holdings Fund LLC Warburg Pincus Fidelity Growth Partners Mumbai Angels IL&FS PE Rajasthan VC Fund Standard Chartered PE ECL Finance Ltd. Ascent Capital Target Stake (%) NA 6.4 NA NA 25 NA NA 10.0 2.0 NA Amount ($ mn) 10.0 15.1 100.0 13.5 NA 8.8 3.3 81.1 16.2 30.0 Strategy Growth PIPE Late Growth Early Growth Early PIPE PIPE Growth

Foursee Infrastructure Equipments Ltd. Aegis Logistics Continental Warehousing Corporation Transpole Logistics MVS Efarms JICS Logistics Leeway Logistics Redington India Redington India Karaikal Port

Source: Four-S Database

Research Desk
Four-S Services is India's leading provider of high-end research, financial consulting and Investment banking services. We have executed projects for prestigious Indian as well as global corporations, investment banks, private equity funds, venture capitalists and hedge funds including Indias Top 5 PE Funds. For further information, please contact Seema Shukla at seema@four-s.com or reach us as http://www.four-s.com

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News Update
Shipping ministry to share 50% connectivity cost for minor ports Ministry of shipping and highways is likely to offer 50% funding for road and rail connectivity for upcoming minor ports in Orissa. According to the official, the Ministry of shipping and highways has more or less agreed to bear 50% of the cost of road and rail connectivity for the minor ports proposed in the state. The ministry had asked them to submit cost estimates for the same and accordingly, ports had submitted ` 12bn plan for offering road and rail connectivity for the upcoming minor ports. According to the proposal, the cost of rail and road connectivity for the minor ports would be shared equally between the Centre and the port developers. Kandla Port enhancing capacity by 37 mtpa Government of India, for 2011-12, has identified 23 projects for bidding/award under public private partnership (PPP) for enhancing capacity of major ports in the country. Gujarat's major port at Kandla has received four such projects at an estimated cost of ` 18.48bn. This will enhance port's capacity by 36.68 mtpa. The four projects for augmenting capacity at Kandla Port include development of dry bulk terminal at Tuna at a cost of ` 10.6bn with 14.11 mtpa. A single point mooring (SPM) of 12 mtpa capacity involving an expense of ` 6.22bn is also being developed at Veera in Gulf of Kutch. Upgradation of barge handling facility at bunder basin and mechanisation of cargo berth No. 7 and 8 are two new projects at an estimated ` 857.4mn and ` 806.1mn respectively. These two new projects would add to Kandla port's capacity by another 3.22 mtpa and 7.35 mtpa respectively. CONCOR and NYK Line auto-logistics joint venture starts operation Container Corporation of India (CONCOR) and NYK Line of Japan had formed Conyk Cartrack in 2011. The equal-stake venture, with a total paid-up capital of around ` 350mn, has commenced its auto-logistics operations. CONCOR manages the transportation of cars on its rakes while Conyk provides the specialised containers and infrastructure investment, and also manages the end-to-end auto movement. Conyk is operating on a small scale, moving cars on the Delhi-Chennai rail route, which provides easy connectivity to auto hubs as well as consumption points in northern and southern India. It is also in talks for similar contracts with other auto makers and newer routes and plans to at least double container movement in the next 2-3 months. NTPC may join CIL-SCI coal logistics JV Indias largest thermal power producer NTPC has decided to exit from the special purpose vehicle International Coal Ventures Limited (ICVL), which was aimed at acquiring coal assets overseas. Instead, NTPC was considering teaming up with Coal India Limited (CIL) and Shipping Corporation of India (SCI) to set up a coal import and shipping logistics company that would deliver imported coal at doorsteps of Indian bulk consumers. India looks at opening new waterways with Bangladesh India will soon conduct a survey for new waterways with Bangladesh, a move that would facilitate the movement of goods between the two countries. State-owned RITES (Rail India Technical and Economic Services) will conduct the survey for the new waterways between Indias Tripura state and Bangladesh, a top official said. The waterways would be rivers that would have navigation facilities for smooth movement of vessels. India and Bangladesh share 2,979 km of land border and 1,116 km of riverine boundary. The neighbors share 54 rivers, including eight rivers flowing from Tripura. Kuehne + Nagel Manages Warehousing Operations For Bonfiglioli In India At the 10,000-sqm premises, Kuehne + Nagel provides its customer comprehensive logistics offerings such as inbound materials receipt, put away services, order processing and line replenishing. The logistics portfolio also includes re-packing, picking & packing, inbound transportation, finished goods loading, materials cleaning and preservation as well as documentation. Bonfiglioli is a leading company in the global power transmission market. Four Soft Announces GPS Enabled 4S Visilog Four Soft (4S), a global leader offering software solutions for Logistics and Transportation industry today announces the launch of GPS enabled 4S Visilog. The launch of this new feature integrates the GPS benefits like truck movement reporting, etc. to the logistics control visibility mechanism of 4S VisiLog. This new feature will help linking the business partners, associates, service providers and customer right from origin to destination.
Four Soft is a client of Four-S

Indore gets mega logistics park developed by Safexpress ` 7bn company, Safexpress, which presently holds 27% share of Indias logistics and warehousing market, has invested `850 mn to set up a mega warehousing and logistics park in Indore. It is spread over 1.15 mn sq ft along the Agra-Mumbai stretch of National Highway 3, and is touted as central-Indias largest warehousing facility. Safexpress aims to benefit from the opportunities to come up for 3PL players post introduction of GST. Safexpress is developing 32 logistics parks at key industrial centers across India with an investment of ` 6bn. The Indore facility is the 17th such park and the second largest in India after the companys Nagpur facility. Safexpress has also opened a Learning Center at the Indore logistics park with residential facilities, training rooms, modern equipment and a library. It will offer training to 60 Safexpress employees in vocational and operational aspects needed for the logistics trade.

Research Desk
Four-S Services is India's leading provider of high-end research, financial consulting and Investment banking services. We have executed projects for prestigious Indian as well as global corporations, investment banks, private equity funds, venture capitalists and hedge funds including Indias Top 5 PE Funds. For further information, please contact Seema Shukla at seema@four-s.com or reach us as http://www.four-s.com

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Global News Update
Radiant Logistics Completes its Acquisition of Isla International Radiant Logistics, Inc. (OTC QB: RLGT), a domestic and international logistics services company, today announced it has completed its acquisition of the assets of Laredo-based Isla International Ltd., a privately-held company that provides a full range of cross-border transportation and logistics services between the United States and Mexico. The transaction announced in mid-November, was valued at up to $15mn consisting of: cash of $7.7mn paid at closing, $1.3mn in company stock payable on the three-month anniversary of the closing and an additional $6.0mn payable over the next four years in a combination of cash and Company common stock based on the future performance of the acquired operation. Founded in 1996, Radiant provides transportation and logistics services to automotive, appliance, electronics and consumers packaged goods industries. Maersk, Orient to cut Asia - Europe shipping capacity Maersk Line, the world's largest container shipper by volume, plans to cut its capacity on Asia-to-Europe routes, a new sign that the euro-zone debt crisis is disrupting international trade. At a shipping conference, the company's North Asia chief expressed the challenging year ahead and plans to announce cuts soon. Rival shipper Orient Overseas (International) Ltd. said at the same event that it plans to cut its shipping capacity on the Asia-Europe route by 20% in the current quarter, as the Hong Kong-based company strives to maintain profitability amid the global slowdown. Aramex launches joint venture with Sinoair Aramex, the global logistics and transportation solutions provider, announced that it has formally launched a joint venture company with Sinotrans Air Transportation Development Co. Ltd. (Sinoair), as part of Aramexs on-going strategy to expand its presence in global emerging markets. The Aramex Sinoair joint venture has been formed with equal shareholding and combines Aramex's technological capabilities, innovative services and strong global network with Sinoair's diversified services and extensive coverage within China. Sinoair, listed on the Shanghai Stock Exchange, is the leading provider of freight forwarding, international and domestic express, cargo transportation and logistics services in China. TNT Express Improves Sub-Saharan Africa Network TNT Express has appointed Getma as new associate in eight Sub-Saharan African countries as part of a plan to improve its network capabilities, service and market share in the region. Getma, a subsidiary of the French transport and logistics group NCT Necotrans, will handle the collection and delivery of imports and exports for TNT Express in Mali, Togo, Benin, Ivory Coast, Chad, Niger, Equatorial Guinea and Angola. The partnership will be effective in all eight countries by the end of Q1 2012. Its network covers the whole Atlantic coastline between Mauritania and South Africa, as well as countries without seaports such as Mali and Chad. DHL Teams Up With Active Cool Container Specialist Csafe DHL Global Forwarding, the air and ocean freight specialist within Deutsche Post DHL, is expanding its services for temperature-controlled shipments. The company has entered into a master lease agreement with CSafe, LLC, a leading heatand-cool container provider for the temperature-sensitive air freight market located in Ohio. DHL customers can now choose from a wider range of special air freight containers; this being one of, DHL Global Forwardings continued efforts to provide innovative solutions for packaging-based cold chain services. Damco Wins Supply Chain Best Partnership Award Damco one of the worlds leading providers of freight forwarding and supply chain management solutions was honored at the SCM Logistics Excellence Awards held in conjunction with the 7th Annual SCM Logistics World conference. Damco won the category Supply Chain Best Partnership Award for outstanding contributions in supply chain partnerships.

Events Update
Event: Automotive Logistics India Date: 7th - 9th December 2011 Place: New Delhi Organiser: Ultima Media Web: http://www.automotivelogisticsindia.com/ Event: India Maritime Week 2012 Date: 17th - 19th January 2011 Place: New Delhi Organiser: Gateway Media Web: http://www.indiamaritimeweek.com

Research Desk
Four-S Services is India's leading provider of high-end research, financial consulting and Investment banking services. We have executed projects for prestigious Indian as well as global corporations, investment banks, private equity funds, venture capitalists and hedge funds including Indias Top 5 PE Funds. For further information, please contact Seema Shukla at seema@four-s.com or reach us as http://www.four-s.com

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Stock Market Update
As on 2nd December 2011 Container Corporation of India Great Eastern Shipping Blue Dart Shipping Corporation of India Essar Ports Ltd. Allcargo Logistics Gateway Distriparks Arshiya International Mercator Ltd. Aegis Logistics Transport Corporation of India Aqua Logistics Sical Logistics SEAMEC Ltd. Gati Varun Shipping NSE Nifty BSE Sensex ET Logistics Index ET Shipping Index Baltic Dry Index (BDIY:IND) Market Cap (In ` mn) 118,856 34,318 33,932 28,926 28,301 18,146 14,423 8,516 5,437 4,689 4,494 4,230 3,920 3,168 2,740 2,565 Price (In `) 914.40 225.35 1,430.05 62.10 68.95 139.00 133.35 144.75 22.20 140.40 61.80 14.10 70.50 93.45 31.65 17.10 5,050.15 16,846.83 15,994.74 6,596.07 1,866.00 1W 1.0% 6.8% -1.4% 4.6% -0.5% 7.3% 1.2% -3.5% 3.0% 5.1% -5.7% 1.1% 0.5% 1.6% 17.9% 3.0% 7.2% 7.3% 1.4% 6.1% 3.3% Percentage Change (%) 1M 3M 6M 12M -6.0% -3.1% -18.6% -29.6% -3.0% -6.6% -23.2% -38.8% -8.5% -12.5% 12.4% 43.4% -13.8% -29.4% -41.6% -57.7% -24.3% -1.7% -43.2% -6.3% -7.2% -15.9% -10.9% -9.0% -3.6% 9.8% 24.5% -11.7% 10.5% -15.6% -49.3% -16.4% -10.1% -46.6% -63.6% -21.7% -25.6% -38.1% -57.7% -16.2% -26.9% -31.3% -46.2% 0.7% 0.0% -15.1% -72.5% -0.8% -2.1% -3.6% -15.9% -9.5% -3.3% -3.8% -30.2% -42.2% -44.1% -50.2% -52.4% -8.6% -15.6% -37.8% -53.8% -4.0% 0.2% -9.0% -16.0% -3.5% 0.2% -8.9% -15.7% -8.0% -6.4% -16.6% -25.5% -14.2% -14.1% -23.0% -39.7% 0.4% 7.2% 25.3% -12.5%

Baltic Dry Index

Source: Baltic Exchange

Road Freight Index

Source: Transport Corporation of India

Research Desk
Four-S Services is India's leading provider of high-end research, financial consulting and Investment banking services. We have executed projects for prestigious Indian as well as global corporations, investment banks, private equity funds, venture capitalists and hedge funds including Indias Top 5 PE Funds. For further information, please contact Seema Shukla at seema@four-s.com or reach us as http://www.four-s.com

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Results Update Last Quarter Ended 30th September 2011
All figures in ` mn
Company Q2 FY11 CONCOR Allcargo TCI Blue Dart Essar Ports Patel Integrated Shreyas Shipping Gateway Distri. SEAMEC Ltd Shipping Corp. of Ind. Aegis Logistics Mercator Lines GE Shipping Gati Arshiya Sical Logistics Varun Shipping Aqua Logistics 9,442 7,039 4,421 2,942 7,794 1,100 506 420 247 10,226 2,733 6,658 7,164 2,265 1,063 2,089 2,328 1,377 Revenue Q2 FY12 9,945 8,116 4,530 3,889 2,740 1,145 672 601 275 10,375 9,985 7,850 7,329 2,363 1,436 1,964 2,326 922 YoY 5% 15% 2% 32% -65% 4% 33% 43% 11% 1% 265% 18% 2% 4% 35% -6% 0% -33% Q2 FY11 2,619 781 353 347 2,630 34 94 209 (78) 3,475 193 1,826 3,237 223 88 127 939 27 EBITDA Q2 FY12 2,628 1,048 346 441 2,256 45 47 342 (42) 1,183 325 1,498 3,124 275 316 245 1,506 25 YoY 0% 34% -2% 27% -14% 31% -50% 64% -66% 68% -18% -3% 23% 261% 94% 60% -10% Q2 FY11 2,067 567 145 210 110 7 49 202 (93) 2,506 94 515 1,687 38 59 43 6 89 PAT Q2 FY12 1,754 559 138 298 408 9 2 226 (61) (1,406) (193) 67 273 38 136 41 1,004 61 YoY -15% -1% -5% 42% 271% 42% 11% -87% -84% 2% 132% -4% -32% Margins Q2 FY12 EBITDA 26% 13% 8% 11% 82% 4% 7% 57% 11% 3% 19% 43% 12% 22% 12% 65% 3% NPM 18% 7% 3% 8% 15% 1% 0% 38% 1% 4% 2% 9% 2% 43% 7%

Results Update Annual

Company FY'10 CONCOR Shipping Corp. of Ind. Allcargo Mercator Lines GE Shipping TCI Aegis Logistics Blue Dart Varun Shipping Arshiya Sical Logistics Gati Essar Ports Patel Integrated Aqua Logistics Gateway Distri. Shreyas Shipping SEAMEC Ltd 37,057 34,631 26,329 18,436 30,415 15,224 3,057 9,097 9,026 5,259 7,260 6,303 10,282 3,467 3,220 1,670 1,479 4,248

Revenue FY11 38,266 35,434 28,613 28,069 25,580 18,527 18,121 11,507 8,368 8,188 7,711 7,512 5,170 4,268 3,810 1,915 1,904 1,024 YoY 3% 2% 9% 52% -16% 22% 493% 26% -7% 56% 6% 19% -50% 23% 18% 15% 29% -76% FY'10 9,616 4,690 2,790 6,619 9,107 1,146 726 1,065 2,834 891 375 615 3,227 117 324 882 (2) 2,237

EBITDA FY11 10,226 7,098 2,697 6,166 10,920 1,400 834 1,556 3,670 1,598 (1) 859 1,384 143 358 1,014 304 (544) YoY 6% 51% -3% -7% 20% 22% 15% 46% 30% 79% 40% -57% 23% 10% 15% FY'10 7,867 3,769 1,706 532 5,128 413 430 612 126 594 (357) (151) 900 46 205 772 (157) 2,039

PAT FY11 8,301 5,674 1,659 468 4,732 501 471 947 147 746 (80) 151 209 35 224 848 128 (668) YoY 6% 51% -3% -12% -8% 21% 9% 55% 17% 26% -77% -24% 9% 10% -

Margins FY11 EBITDA 27% 20% 9% 22% 43% 8% 5% 14% 44% 20% 11% 27% 3% 9% 53% 16% NPM 22% 16% 6% 2% 18% 3% 3% 8% 2% 9% 2% 4% 1% 6% 44% 7% -

Note: Financial Year for Allcargo and Blue Dart is Jan-Dec and that for Gati is Jul-Jun Source: Company Websites, Four-S Research

Research Desk
Four-S Services is India's leading provider of high-end research, financial consulting and Investment banking services. We have executed projects for prestigious Indian as well as global corporations, investment banks, private equity funds, venture capitalists and hedge funds including Indias Top 5 PE Funds. For further information, please contact Seema Shukla at seema@four-s.com or reach us as http://www.four-s.com

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Research Desk
Four-S Services is India's leading provider of high-end research, financial consulting and Investment banking services. We have executed projects for prestigious Indian as well as global corporations, investment banks, private equity funds, venture capitalists and hedge funds including Indias Top 5 PE Funds. For further information, please contact Seema Shukla at seema@four-s.com or reach us as http://www.four-s.com

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