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FreightForwardingMarket India
September2012

ExecutiveSummary
xxRegionisthe2nd largestfreightforwardingmarketintheworldafteryy xxandyy arethegloballeadersintheairandoceanfreightmarketsfor theyear20 FreightforwardingmarketinIndiaisestimatedtoreachINRxxbn by20 ataCAGR of x% Indiaisexpectedtowitnessconsiderable growthinfreightbusinessby20 comparedtoEuropeannations

Market

Drivers

Drivers& Challenges

GrowthinInternationalTrade RapidEconomicGrowth&FDIinLogistics DiversificationintoLogisticsBusiness ImprovedTransportationInfrastructure

RisingCompetitivenessamongDomestic Companies

Technological Trends

EDIPlatform UPLIFT 4SeTrans

P M A S

LE

Challenges
StiffCompetitionfromInternational Counterparts RisingFreightCosts ComplexOperation LackofSkilledManpower PoorInfrastructure TechnologyAdoptionbyLeadingPlayers TechnologyAdoption CaseStudy

MajorPlayers CompanyA CompanyB CompanyE CompanyH CompanyC CompanyF CompanyI

Competition

CompanyD CompanyG

FREIGHTFORWARDINGMARKETININDIA2012.PPT

Introduction FreightForwarding Segments&Features MarketOverview

Global India

SustainableProcurementGuidelines StandardTradingConditions Drivers&Challenges Competition Investments StrategicRecommendation Appendix

FREIGHTFORWARDINGMARKETININDIA2012.PPT

P M A S

LE

TechnologicalTrends

FreightForwarding Definition&Types
FreightForwarding(IFFA)
Servicesofanykindrelatingtothecarriage,consolidation,storage,handling,packingordistributionofthegoodswithancillaryand advisoryservicesinconnectiontherewith,includingbutnotlimitedtocustomsandfiscalmatters,declaringthegoodsforofficial purposes,procuringinsuranceofthegoodsandcollectingorprocuringpaymentordocumentsrelatingtothegoods

AirFreight Forwarding
ModeofTransport

Sea/Ocean/Ship FreightForwarding
ModeofTransport

P M A S

Typesof FreightForwarding

LE
RailFreight Forwarding
ModeofTransport

LandFreight Forwarding

ModeofTransport

AirCargo

SeaFreight

RoadTransport

RailFreight

Note:IFFA InternationalFederationofFreightForwardersAssociations FREIGHTFORWARDINGMARKETININDIA2012.PPT

FreightForwarding Segments,Services&Benefits(1/2)
TypesofFreightForwarding
SegmentsServed Services CustomerBenefits

SAMPLE
xx

AirFreightForwarding

xx

xx

SeaFreightForwarding

xx

xx

xx

FREIGHTFORWARDINGMARKETININDIA2012.PPT

FreightForwardingMarket Global
FreightForwardingMarket Global Overview
Findings

MarketSize&Growth
INRbn
10,000 8,000 6,000 4,000 2,000 0

1.8% x1

x2

P M A S

LE
5% 2%
29%

MarketSizebyRegion(2010)
xxRegionisthe2nd largestfreight forwardingmarketin theworldafteryy

25%

39%

20

20e

RegionA RegionB

RegionC RegionD

RegionE

FREIGHTFORWARDINGMARKETININDIA2012.PPT

MajorPlayersinGlobalFreightForwardingMarket
MarketShare AirFreight(20)
1.4% 1.5% 1.5% 1.7% 1.7% 1.8% 2.9% 3.0% CompanyF CompanyG CompanyH CompanyI CompanyJ 3.5% 6.8% xxisthemarket leaderinglobalair freightforwarding market

SAMPLE
0.5% 0.4% 0.5% 0.5% 0.5% 0.7% 0.9%

MarketShare SeaFreight(20)
2.0% yy isthemarket leaderinglobalsea/ oceanfreight forwardingmarket

1.5% 1.0% CompanyF CompanyG CompanyH CompanyI CompanyJ

CompanyA CompanyB CompanyC CompanyD CompanyE

CompanyA CompanyB CompanyC CompanyD CompanyE

Findings

Note:MarketShare %oftotalfreightforwardingmarket

FreightForwardingMarket India
FreightForwardingMarket India Overview

Findings

INRbn
800 600 400 200 0

P M A S
16.5% x2 x3 x4 x1 20 20 20 20

LE
x6 x5

MarketSize&Growth

20

20 8

FREIGHTFORWARDINGMARKETININDIA2012.PPT

Indiaisexpectedtowitnessconsiderable growthinfreight businessby2020comparedtotheEuropeancountries

SAMPLE
bn tkm
12,000

Findings

Top5FreightMarkets(20)
bn tkm
7,000 6,000 5,000 4,000 3,000 2,000 1,000 0
Country1 Country2 Country3 Country4 Country5 Country6

Top5FreightMarkets(20e)

x1 x2

y1

10,000 8,000

x3

6,000

y2 y3 y4 y5 y6
Country1 Country2 Country3 Country4 Country5 Country6

x4

x5 x6

4,000 2,000 0

Findings
Note:Marketsizeisforoverlandfreight(road,railandinland waterways)markets(billiontkm unitoffreighttransportvolume)

Freightforwardingisemergingasthebusinesseswithhigh marketattractiveness
AttractivenessinFreightForwardingMarketinIndia CurrentMarketSize GrowthPotential InnovationPotential Profitability Competitive Intensity Overall Attractiveness

SAMPLE
AreasofImprovements

Levelofimprovementdesired

Area6 Area3 Area1 Area2 Area5 Area4

Relativeweightbasedonworldaverage
Note:Attractivenessisratedinaccordancewith1<2<3<4< 5

10

Elementsconsideredbyshipperswhileselectingamodeof transportation
FactorsforSelectingTransportationMode

P M SA
A B

LE
x5% x4% x3% C D E

x6% Findings x1%

x2%

FREIGHTFORWARDINGMARKETININDIA2012.PPT

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FreightForwardingMarketinIndia SWOTAnalysis
Strength Weakness

SAMPLE

xx

xx

SWOTAnalysis

Opportunity

Threat

xx

xx

FREIGHTFORWARDINGMARKETININDIA2012.PPT

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SustainableProcurementGuidelinesforFreightForwarding (1/5)

SAMPLE
Findings

Sustainable Procurementof FreightForwarding Services

xx

GreenhouseGasEmissions
xx

AirPollutants
xx

KeyEnvironmental Impacts

FREIGHTFORWARDINGMARKETININDIA2012.PPT

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StandardTradingConditionsforFreightForwarders(1/3)
FreightForwardersRole

SAMPLE

xx

PerformanceoftheContract

xx

FREIGHTFORWARDINGMARKETININDIA2012.PPT

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Drivers&Challenges

Challenges
StiffCompetitionfromInternational Counterparts RisingFreightCosts ComplexOperation LackofSkilledManpower PoorInfrastructure

Drivers
GrowthinInternationalTrade RapidEconomicGrowth&FDIin Logistics

DiversificationintoLogisticsBusiness ImprovedTransportation Infrastructure RisingCompetitivenessamong DomesticCompanies

P M A S

LE

FREIGHTFORWARDINGMARKETININDIA2012.PPT

15

Growthininternationaltradeisprovidinghugeimpetusto thedemandforfreightforwarding
GrowthinInternationalTrade(1/2)
Findings

Impact

IndiasTotalExport
INRbn
15,000 10,000 5,000 0

P M A S
x4 20

LE
IndiasTotalImport
INRbn
20,000 15,000 10,000 5,000 0

20% x1 x2 x3

GovernmentofIndia planstodoubleIndias exportofgoodsand servicesby201415 Indiasimportisalso expectedtogrow further,particularlyof oilandcapitalgoods

18% y2 y1 y3

y4

20

20

20

20

20

20

20 16

FREIGHTFORWARDINGMARKETININDIA2012.PPT

Intercontinentaltradeisexpectedtowitnessconsiderable growthinnextfiveyears
GrowthinInternationalTrade(2/2)
Findings

GrowthinIndia USBilateralTrade
INRbn
6,000 4,000 2,000 0

GrowthinIndia RussiaBilateralTrade

a% a1

a2

20

20

GrowthinIndia Lithuania BilateralTrade

INRbn
15,000 10,000 5,000 0

P M A S
INRbn
6,000

LE
1,000 500 0

INRbn b% b1 b2

20

20

GrowthinIndia LatinAmerica BilateralTrade

d% d1

GrowthinIndia China BilateralTrade

INRbn

c% c1

c2

d2

6,000 4,000 2,000 0

e% e1 20

e2

4,000 2,000 0

20

20

20

20

20 17

FREIGHTFORWARDINGMARKETININDIA2012.PPT

FreightforwardingsectorinIndiahaswitnessedasignificant growthduetorobusteconomicgrowth
RapidEconomicGrowth&FDIinLogistics(1/2)
Findings

Impact

P M A S
GDPGrowthTrend*
%
10 8 6 4 2 0

LE
RapidUrbanization
b1 b2 b3 b4 b5

KeyEconomicIndicators

% a1 a2 a3 a4
40

a5

30 20 10 0

20--

20--

20--

20--

20--

20--

20--

20--

20

20-18

*Note:Figuresforfinancialyear ApriltoMarch FREIGHTFORWARDINGMARKETININDIA2012.PPT

Keyeconomicindicatorsincluding100%FDIinlogistics showsahealthyeconomicoutlookforIndia
RapidEconomicGrowth&FDIinLogistics(2/2)
EmploymentGrowth
A mn
600 400 200 0 y1 y2 y3

RiseinAggregateAnnualDisposableIncome
B C D F

+2.3%
y4 y4 y5

INRtr
100 80

20

20

20

20

20

~66%ofthetotalpopulationwillbeintheworkingagegroupby 2020 TotalFDIinIndia*

INRbn
1500 1000 500 0 x2 x2 x3 x4

P M A S
60 40 20 0

20

LE
x 20

z +6.9% y 15% 34% 9% 20e 9% 33% 24% 23% 34% 3% 15%

13% 9% 7% 49% 23%

20e

FDIInflow

FDIinLogisticsSector %Share
100 50 0

X%

20

20

20

20**

Logistics
**Note:FiguresforAprtoJan

Indiaisthe3rd largestinvestorbaseintheworld
Note:Workingagegrouprefersto1564yearsold *Note:Figuresforfinancialyear ApriltoMarch FREIGHTFORWARDINGMARKETININDIA2012.PPT

19

FreightratesinIndiaarezoomingupowingtodieselprice hike
RiseinFreightCosts(2/2)
xx
INR000
60

CosttoImportExportPerContainer
4% a2 b2 a3 b3 a4 b4 a5 b5

HikeinDieselPrice
INR/litre
50 40 30 20 10 0

P M A S
Destinations
DelhitoA DelhitoB DelhitoC DelhitoD DelhitoE DelhitoF DelhitoG DelhitoH DelhitoI

LE

a1 b1

40 20 0

2007

2008

2009

2010 Export

2011

Import

RateIncreasedby(inINR)

FreightRateNow(inINR)

14% x1

x2

Earlier

Now

FREIGHTFORWARDINGMARKETININDIA2012.PPT

20

Processimprovementandgreateruseoftechnologyhave thepotentialto
InformationflowthroughtheLogisticsValueChain

xx

xx

xx

xx

xx

xx

xx

ElectronicDataInterchange(EDI)NeededacrosstheEntireSupplyChain
xx

xx

P M A S
EDIPlatform
xx

LE

xx

xx

xx xx xx

FREIGHTFORWARDINGMARKETININDIA2012.PPT

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significantlyimproveoperatingefficienciesfortheIndian logisticssector
Shippers&Consignees

Benefits

Custodian

xx

UPLIFT

CHAs /Forwarders

P M A S
xx xx xx Carriers
xx

UniversalPlatformforLogistics& IntegratedFreightTransport

LE

xx

Customs

xx

xx

FREIGHTFORWARDINGMARKETININDIA2012.PPT

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TechnologyAdoptionbyLeadingPlayers(1/2)
FreightForwardingIndustry&FourSoftAlliance(FFIFA)
xx

xx

P M A S
IT Awareness
xx

Greatlyfacilitatesthefreightforwarding /CHAs industry

LE

FREIGHTFORWARDINGMARKETININDIA2012.PPT

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MajorPublicCompanies Summary
NetProfit/Loss
2,800 2,600 2,400 2,200 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000

SizeoftheBubblerepresentsMarketCapitalizationinINRmn
m1

P M A S
m2 m4 m3 CompanyA CompanyB CompanyC

LE
Totalincome

CompanyD
Note:AllfiguresareinINRmn andarebasedonthelatestfinancialsavailable

FREIGHTFORWARDINGMARKETININDIA2012.PPT

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Public:DomesticCompany Company A(1/3)

CompanyInformation
Corporate Headquarter TelNo. FaxNo. Website YearofIncorporation TickerSymbol StockExchange

OfficesandCentres India

ProductsandServices
Category Logisticssolutions Products/Services

P M A S

LE
Mumbai

HeadOffice

KeyPeople
Name Designation

FREIGHTFORWARDINGMARKETININDIA2012.PPT

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Public:DomesticCompany CompanyA(2/3)
FinancialSnapshot
INRmn
40,000 30,000 20,000 10,000 0 20,836

SAMPLE
KeyRatios
Particulars

TotalIncome
28,803

NetProfit/Loss INRmn
34,381 35,858 3,000 2,000 1,000 0

yoy change 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%

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

2012

FinancialSummary
ThecompanyearnedanetprofitofINRxxmninFY20,as comparedtonetprofitofINRxxmninFY20 ThecompanyreportedtotalincomeofINRxxmninFY20, registeringanincreaseofxx%overFY20 Thecompanyearnedanoperatingmarginofxx%inFY20,a decreaseofxxpercentagepointsoverFY ThecompanyreporteddebttoequityratioofxxinFY20,a decreaseofxx%overFY

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

CostRatios
Operatingcosts(%ofSales) Administrationcosts(%of Sales) Interestcosts(%ofSales)
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
CurrentRatio CashRatio
48.94% 43.37% 1.00 0.26 1.95 0.47 1.82 0.63 2.13 0.83

LeverageRatios
DebttoEquityRatio DebttoCapitalRatio InterestCoverageRatio
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)25th Jun,2012

Value(25/09/2012)
xx xx xx xx

EfficiencyRatios
FixedAssetTurnover AssetTurnover CurrentAssetTurnover WorkingCapitalTurnover CapitalEmployedTurnover Note:FYC2012
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

FREIGHTFORWARDINGMARKETININDIA2012.PPT

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

KeyGeographicSegments
Australia&NewZealand Africa Mediterranean America FarEast India Europe

%
100% 50% 0%

% 10% 83%
7%

6% 94%

10% 83%

7%

100% 50% 0%

2008

2009

2010

BusinessHighlights
Description
Overview ICD/CFSFacilities Rank Acquisitions

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

FREIGHTFORWARDINGMARKETININDIA2012.PPT

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MajorPrivateCompanies Summary
NetProfit/Loss 800 700 600 500 400 300 200 100 0 100 5,000
CompanyA

SizeoftheBubblerepresentsTotalAssets inINRmn

P M A S
t5 t3 t2 t7 t6 t4 0
CompanyB CompanyC

LE
10,000
CompanyF CompanyG

t1

Totalincome 5,000
CompanyD CompanyE

15,000

Note:AllfiguresareinINRmn andarebasedonthelatestfinancialsavailable FREIGHTFORWARDINGMARKETININDIA2012.PPT

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Private:DomesticCompany CompanyB(1/3)
CompanyInformation
Corporate Headquarter TelNo. FaxNo. Website YearofIncorporation

OfficesandCentres India

ProductsandServices
Category Products/Services

P M A S

LE

Delhi

HeadOffice

KeyPeople
Name DiversifiedSupport Services Designation

FREIGHTFORWARDINGMARKETININDIA2012.PPT

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Private:DomesticCompany CompanyB(2/3)
FinancialSnapshot
TotalIncome INRmn
1500 1169.3 1000 559.6 500 0 222.9 400 600 200

KeyRatios
NetProfit/Loss INRmn
1376.6 0
Particulars yoy change 2010 (201009)
N.A. N.A. N.A. 0.00 0.00 0.00 0.00 0.00 N.A. N.A. N.A. 0.00% 0.00% 0.00% 0.00% 0.00%

2009

2008

2007

ProfitabilityRatios
OperatingMargin NetMargin ProfitBeforeTaxMargin ReturnonEquity ReturnonCapitalEmployed ReturnonWorkingCapital ReturnonAssets ReturnonFixedAssets Operatingcosts(%ofSales) Administrationcosts(%of Sales) Interestcosts(%ofSales) CurrentRatio CashRatio DebttoEquityRatio DebttoCapitalRatio InterestCoverageRatio
N.A. N.A. N.A. 0.00% 0.00% 0.00% 0.00% 0.00% N.A. N.A. N.A. 0.00% 0.00% 0.00% 0.00% 0.00% 90.63% 4.46% 5.61% 19.13% 1438.72% 34.87% 16.44% 325.58%

2008

2009

2010

FinancialSummary

ThecompanyincurredanetlossofINRxxmninFY20,as comparedtonetlossofINRxxmninFY20

P M A S
2011

CostRatios

LE

N.A. N.A. N.A.

N.A. N.A. N.A.

N.A. N.A. N.A.

N.A. N.A. N.A.

6.54% 6.13% 0.09%

LiquidityRatios
32.99% 16.04% 2.67 1.28 2.01 1.10 2.08 1.38 1.61 0.80

ThecompanyreportedtotalincomeofINRxxmn inFY20, registeringanincreaseofxx%overFY20 Thecompanyearnedanoperatingmarginofxx%inFY20,an increaseofxxpercentagepointsoverFY20 ThecompanyreporteddebttoequityratioofxxinFY20,an increaseofxx%overFY20

LeverageRatios
2.26% 1.92% N.A. 0.18 0.15 N.A. 0.17 0.15 N.A. 0.05 0.05 N.A. 0.16 0.14 1098.85

EfficiencyRatios
FixedAssetTurnover AssetTurnover CurrentAssetTurnover WorkingCapitalTurnover CapitalEmployedTurnover
N.A. N.A. N.A. N.A. N.A. 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 70.86 3.58 2.89 7.59 4.16

Improved

Decline

FREIGHTFORWARDINGMARKETININDIA2012.PPT

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Private:DomesticCompany CompanyB(3/3)
BusinessHighlights
Description Overview Network Awards News

SAMPLE

FREIGHTFORWARDINGMARKETININDIA2012.PPT

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SignificantM&Aactivitybeingwitnessedinthissectorover thelastfewyears

SAMPLE
Acquirer/Investor
Company11 Company12 Company13 Company14 Company15 Company16

InvestmentsinFreightForwardingMarketinIndia
OutboundM&ADeals,JVs&otherInvestments Date
mmyy mmyy mmyy mmyy mmyy mmyy Company1 Company2 Company3 Company4 Company5 Company6

Target

Amount(INRmn)

Stake

mmyy mmyy mmyy mmyy

Company7 Company8 Company9 Company10

Company17 Company18 Company19 Company20

FREIGHTFORWARDINGMARKETININDIA2012.PPT

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StrategicRecommendationforFreightForwarders

SAMPLE
xx

xx

xx

xx

FREIGHTFORWARDINGMARKETININDIA2012.PPT

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