Project Logistics Market India ProjectLogisticsMarket India

September2012
ExecutiveSummary
Market
Projectlogisticsreferstothehandlingofshipmentssuchasheavytransports,ODCandcargo
experiencingtime,securityandlocationconstraints
TheprojectlogisticsmarketiscurrentlyvaluedatINRx
1
unitsandisexpectedtoreachINRx
6
unitsby2016
Drivers Challenges
Drivers&
Challenges
Drivers
Growthinenergysector
Risingnumberofinfrastructureprojects
Demandaccruingfromminingsector
Growinglogisticsdemandfrom
Challenges
Poorqualityinfrastructure
Projectdelaysslowingdownprojectlogistics
sector
Lackofskilledmanpower
Challenges
automotivesector
GrowingWarehousingFacilities
Difficultyinpermitsattainmentand
unfriendlytaxationpolicy
Technologyissues
InefficientMaterialHandlingEquipments
T d
Technology Trends
Trends
MarketTrends
Servicewisediversification
Regionwisediversification
TechnologyTrends
Identificationtechnology
Materialhandlingtechnology
Communicationtechnology
Informationtechnology
Competition
KeyPlayers
Public
PlayerA,PlayerB,PlayerC,PlayerD,PlayerE
Private
PlayerF,PlayerG,PlayerH,PlayerI,PlayerJ,PlayerK,PlayerL,PlayerM,PlayerN,
gy
2 PROJECTLOGISTICSMARKETININDIA2012.PPT
Private
y , y , y , y , y , y , y , y , y ,
PlayerM,PlayerO,PlayerP
Introduction
MarketOverview
GSTImplementation
ProjectLogisticsManagementSolution
KeySuccessFactors
IssuesHamperingProjectLogistics
Drivers & Challenges Drivers&Challenges
MarketTrends
TechnologyTrends ec o ogy e ds
Competition
StrategicRecommendations
3 PROJECTLOGISTICSMARKETININDIA2012.PPT
Appendix
Logisticsprimarilydealsintransportationandstorage
operationsandissignificantlyaidedbyvalueaddedservice
LOGISTICS
SECTOR
TRANSPORTATION
ContainerRailTransport
STORAGE
Modern Warehousing
VALUEADDEDSERVICE
RoadTransport
ExpressLogistics
ModernWarehousing
LogisticsPark
Inland Container Depot
FreightForwarding
3PL/4PL
CoastalShipping
ColdChain
InlandContainerDepot
ContainerFreightStation
Port
CourierService
Thelogisticssectorcomprisesmainlyof3majorsegments Transportation,StorageandValueaddedservice
ThegrowingIndianeconomyhasapositiveimpactonplayersoperatinginstorageandvalue addedservices
f
ProjectLogistics
Port
4 PROJECTLOGISTICSMARKETININDIA2012.PPT
segmentswhileintransportationsegmentcontainertrainandprojectlogisticsisprojectingapromisingfuture
outlook
Growinginvestmentsinkeysectorsoftheeconomyis
drivingtheprojectlogisticsmarketinIndia
TheIndianlogisticsmarket formsapproximatelya%of
thegloballogisticsmarketinvalueterms
MarketOverview MarketSizeandGrowth(Valuewise)
600
INRbn
x6
g g
Thetermprojectlogisticsreferstothehandlingofglobal
shipmentswithspecialcharacteristicssuchas
Heavytransports
Overdimensioncargo
200
300
400
500 X%
x6
x5
x4
x3
x2
x1
g
Cargowithtimeandorsecurityconstraints
Cargotoremoteandlocationswhicharedifficulttoaccess
EconomicgrowthinIndiainadditiontohugedemandfor
infrastructure development is simultaneously leading to
0
100
200
20e 20e 20e 20e 20 20
infrastructuredevelopmentissimultaneouslyleadingto
growingdemandforprojectlogisticsactivity
TheprojectlogisticsmarketiscurrentlyvaluedatINRx
1
unitsandgrowingatarateofapproximatelyX%is
expected to reach INR x
2
units
b%
CargoTransportSegmentation
Segmentation on basis
expectedtoreachINRx
2
units
Cargotransportationbusinessthatisusuallysegmented
intoAandBcomposesofa%andb%respectively oftotal
quantumofbusiness
The Indian market is highly fragmented with large section
a%
Segmentationonbasis
ofquantumof
businessdone
5 PROJECTLOGISTICSMARKETININDIA2012.PPT
TheIndianmarketishighlyfragmentedwithlargesection
ofunorganizedplayersplayingadominantrole
B A
Projectlogisticsserviceprovidersfacecertaincriticalitiesin
whileoperatingtheirbusiness
TransportCost
Key
Issues
Technology Adoption Hired Equipments TechnologyAdoption HiredEquipments
6 PROJECTLOGISTICSMARKETININDIA2012.PPT
Drivers&Challenges Summary
Challenges
Drivers
Poorqualityinfrastructure
Projectdelaysslowingdownproject
logisticssector
Growthinenergysector
Riseinnumberofinfrastructure
projects
Difficultyinpermitsattainmentand
unfriendlytaxationpolicy
Technologyissues
Demandaccruingfromminingsector
Increaseinlogisticsdemandfrom
automotive sector
InefficientMaterialHandling
Equipments
automotivesector
Riseinwarehousingfacilities
7 PROJECTLOGISTICSMARKETININDIA2012.PPT
NonConventionalEnergySources(1/3)
WIND
Indiaisranked5
th
worldwideintermsofwindpower
installedcapacityand3
rd
intermsofannualcapacity
30
MW000
Moderate Advanced Reference
CumulativeWindPowerCapacity
additions
AsonJan2012,Indianwindenergysectorhasaninstalled
capacityof16,179MW
Anumberofcompaniesareenteringintoproductionof
2015e 2010 2009
b3
c2
c1
c3
0
10
20
a2 a1 a3
b1 b2
windturbinesduetoIndiasexpansiveopportunityin
Indiaswindenergy sector
ForeignwindturbinemanufacturingcompanieslikeVestas,GE
Wind,EnerconandGamesahaveestablishedtheirunitsinIndia
Wind turbine is manufactured in parts each of the parts
Reference
Aconservativeestimatetakingintoaccountexistingpoliciesbutincludes
assumptionslikecontinuingelectricityandgasmarketreform,liberalizationof
crossborderenergytradeandpoliciesaimedatpollutionreduction
Moderate
Takesintoaccountallmeasurestosupportrenewableenergyandsuccessful
implementationoftargetsaswellasmodestimplementationofnewpolicies
Advanced
Mostambitiouswithassumptionofclearandunambiguouscommitmentto
renewableenergyalongwithpoliticalsupportforimplementationofprojects
Windturbineismanufacturedinparts,eachoftheparts
areconsideredasanODCforlogisticpurpose
ThemanufacturedpartstreatedasODChastobetransported
totherequiredinstallationsitewhichisgenerallyinremote
place
PlantOwner State PlantCapacity(MW)
SuzlonEnergyLtd. AndhraPradesh 3000
GujaratFlurochemicals
Ltd
Rajasthan,Gujarat,
K t k
1000
PlannedProjects
p
Generator,rotorandbladesaresomeofthecomponenttermedas
ODC
Thewindpowergenerationprojectswouldrequiresmooth
transportationofequipmentstherebygeneratingdemandfor
projectlogisticssector
Ltd. Karnataka
1000
WelspunEnergyLtd. AndhraPradesh 500
TianaPowerProjects
Pvt.Ltd.
Maharashtra 300
GreenkoWindProject
Pvt Ltd
Karnataka 300
8 PROJECTLOGISTICSMARKETININDIA2012.PPT
p j g
Pvt.Ltd.
Automobileindustrysdependenceontransportofbulk
autocomponentsenhancesdemandforprojectlogistics
Automotive
Indianautomobilesectorisgrowingatahealthyrateover
the years
INRtn
AutomobileSectorGrowth
theyears
Thesectorisexpectedtogrowatm%CAGRbetween20 to
20
Individualautomobilepartsneedtobetransported
fromvariousareasthroughlogisticsnetworksto
4
6
8
m%
b
a
assemblingcentre
Projectlogisticsplaysanintegralrolewhereautomobile
partsinhugenumbersaretobeshipped
Meetingautomobilebusinessdemandswithefficiencyand
timely transport of accessories and spare parts makes logistics
0
2
20e 20
timelytransportofaccessoriesandsparepartsmakeslogistics
businesscrucialtotheindustry
Theautomobilesectorincursbetweenm% n%ofits
operatingcostonlogisticsservice
Logisticsoutsourcingisestimatedtosavefreightcostof
a%
c%
OperatingCost RevenueEarning
automobilecompaniesbyapproximatelys%t%
Logisticsbeinganoncorefunctionforthesectormakesit
advantageousfortheautomobilemanufacturerstodependon
logisticsserviceproviderswhohelpintimelyreplenishmentof
depletinginventoriessmoothly
9 PROJECTLOGISTICSMARKETININDIA2012.PPT
B A D C
ITadoptioninlogisticssectorparticularlyprojectlogistics
willhelpscaleupefficiencyinbusinessoperations
ITimplementationcomprises
mainlyenterpriseapplication
packages
ERP is one of the most popular IT ERPisoneofthemostpopularIT
toolbeingusedacrosslogistics
m
a
t
i
o
n
o
l
o
g
y
Communicationplaysakey
roleinlogisticsbusiness
Ensuresspeedand
accuracyincustomer
service
Directdataentryinto
computer
Technologieslikebar
coding,RFID,data
communication,magnetic
strip and voice recognition
I
n
f
o
r
m
T
e
c
h
n
o
Communication
Technology
Competitive
Advantage
Identification
Technology
Helpsinbringingin
competitivenessamong
serviceproviders
stripandvoicerecognition
areused
Usedfortrackingrailcars
andcartonmovement
g
M
a
t
e
r
i
a
l
H
a
n
d
l
i
n
g
Loading,unloadingandstorageof
goodsinwarehouses
Reducesneedoflaborforce
Automatedmaterialhandling
10 PROJECTLOGISTICSMARKETININDIA2012.PPT
becomesusefulinareasof
hazardousgoods
MajorPublicCompanies Summary
6
7
8
NetProfit/Loss
SizeoftheBubblerepresentsMarket
CapitalizationinINRbn
3
4
5
6
1
0
1
2
4
3
2
1
5
200 180 160 140 120 100 80 60 40 20 0 20 40 60 80 100 120 140
TotalIncome
E D C B A
11 PROJECTLOGISTICSMARKETININDIA2012.PPT
Public:DomesticCompany PlayerA(1/3)
CompanyInformation OfficesandCentres India
CorporateAddress
PlayerA
5thRoad,6
th
Street,
CityA 700xxx y
TelNo. 91226679xxxx
FaxNo. 91226679xxxx
Website www.playera.com
YearofIncorporation 19
TickerSymbol 53xxxx(BSE)
StockExchange BombayStockExchange
HeadOffice CityX
KeyPeople
ProductsandServices
Category Products/Services
CFS/ICD,Project&Engineering
Solutions NVOCC Ship owning 3PL &
Name Designation
Logisticssolutions
Solutions,NVOCC,Shipowning,3PL&
warehousing,importhandling,export
handling,LCLshipmentand
transportation
Name Designation
PersonA MD
PersonB CFO
PersonC CEO
12 PROJECTLOGISTICSMARKETININDIA2012.PPT
i i l S h K i
Private:ForeignCompany PlayerA(2/3)
FinancialSnapshot KeyRatios
Particulars
yoychange
(201110)
2011 2010 2009 2008
ProfitabilityRatios
OperatingMargin
NetProfit/Loss TotalIncome
INRunits
20
INRunits
250
NetMargin
ProfitBeforeTaxMargin
ReturnonEquity
ReturnonCapitalEmployed
ReturnonWorkingCapital
ReturnonAssets
20
40
60
250
200
150
100
50
d
R4
c
R3
b
R2
a
ReturnonFixedAssets
CostRatios
Operatingcosts(%ofSales)
Administrationcosts(%of
Sales)
Interest costs (% of Sales)
FinancialSummary
80
50
0
20 20 20 20
R1
Interestcosts(%ofSales)
LiquidityRatios
CurrentRatio
CashRatio
LeverageRatios
DebttoEquityRatio
b i l i
ThecompanyincurredanetlossofINRdunitsinFY20,as
comparedtonetlossofINRcunitsinFY20
ThecompanyreportedtotalincomeofINRR4unitsinFY20,
registeringanincreaseofm%overFY20
DebttoCapitalRatio
InterestCoverageRatio
EfficiencyRatios
FixedAssetTurnover
AssetTurnover
CurrentAssetTurnover
Thecompanyearnedanoperatingmarginoff%inFY20,an
increaseofgpercentagepointsoverFY20
ThecompanyreporteddebttoequityratioofdinFY20,a
decreaseofh%overFY20
13 PROJECTLOGISTICSMARKETININDIA2012.PPT
WorkingCapitalTurnover
CapitalEmployedTurnover
Improved Decline
Private:ForeignCompany PlayerA(3/3)
KeyBusinessSegments KeyGeographicSegments
%
C B A
%
G F E D C B A
50%
100%
50%
100%
%
BusinessHighlights
0%
20 20 20
0%
20 20 20
Description News
Overview
Acquisitions
14 PROJECTLOGISTICSMARKETININDIA2012.PPT
Appendix
Ratio Calculations
OperatingMargin
(Operating
Income/Revenues)*100
Ratio Calculations
CurrentRatio
CurrentAssets/Current
Liabilities
NetMargin (NetProfit/Revenues)*100
ProfitBeforeTaxMargin
(IncomeBeforeTax/Revenues
*100
(N I / Sh h ld
CashRatio
{(Cash&BankBalance+
MarketableSecurities)/Current
Liabilities)}
DebttoEquity
TotalLiabilities/Shareholders
E it
ReturnonEquity(ROE)
(NetIncome/Shareholders
Equity)*100
ReturnonCapital(ROCE)
EBIT/(TotalAssets Current
Liabilities)*100
(N I / W ki C i l)
q y
Equity
DebttoCapitalRatio
{TotalDebt/(Shareholders
Equity+TotalDebt)}
InterestCoverageRatio EBIT/InterestExpense
ReturnonWorkingCapital
(NetIncome/WorkingCapital)
*100
ReturnonAssets (NetIncome/TotalAssets)*100
ReturnonFixedAssets (NetIncome/FixedAssets)*100
FixedAssetTurnover Sales/FixedAssets
AssetTurnover Sales/TotalAssets
OperatingCosts(%ofSales)
(OperatingExpenses/Sales)
*100
AdministrationCosts(%of
Sales)
(AdministrativeExpenses/Sales)
*100
CurrentAssetTurnover Sales/CurrentAssets
WorkingCapitalTurnover Sales/WorkingCapital
/
15 PROJECTLOGISTICSMARKETININDIA2012.PPT
InterestCosts(%ofSales) (InterestExpenses/Sales)*100
CapitalEmployedTurnover Sales/ShareholdersEquity
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