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Air Cargo Market India


April 2015

Executive Summary

Market
Overview

Air transport is a vital component of many international logistics networks


The air cargo supply chain is a combined set of interconnected parties, locations, procedures, and
information exchanges that enables cargo to move from its origin to its destination by air
World air cargo traffic is forecast to grow an average x% per year over the next 20 years
India is projected to be amongst the top ten international air cargo market by 2018
Air Cargo in India growing at a steadily increasing rate is poised to reach y mn tons by 2019

Drivers

Drivers &
Challenges

Government
Initiatives

Challenges

Growth in International Trade


Rapid Economic Growth
Growth in Retail Sector
Thriving Pharmaceutical Shipments
Growth in e-Tailing
Poor Infrastructure of the Port Sector

Rising Air Traffic Fuel (ATF) Prices


High Taxes Raising Operating Costs
Sub Standard Infrastructure and
Unavailability of Resources

FDI Regime Sectors Pertaining to the Freight and


Transportation Industry
Development of the Surface Transport Sector

Policies by the Ministry of Civil Aviation


Phased Implementation of VAT
Infrastructure Initiatives Union Budget 2014

Major Players

Competition

Player 1

Player 2

Player 3

Player 4

Player 5

Player 6

AIR CARGO MARKET IN INDIA 2015.PPT

Macroeconomic Indicators
Introduction
Market Overview
Major Domestic Airlines
Drivers & Challenges
Key Issues
Government Initiatives
Regulatory Framework
Technological Trends
Competitive Landscape
Strategic Recommendation
Appendix
AIR CARGO MARKET IN INDIA 2015.PPT

Macroeconomic Indicators (1/3)

SAMPLE

GDP at Factor Cost: Quarterly


INR tn

Q1

Q2
2011-12

2012-13

Q3
2014-15

2013-14

Q4

Inflation Rate: Monthly


%

Jul 2013 - Aug 2013

Aug 2013 - Sep 2013

Sep 2013 - Oct 2013

Oct 2013 - Nov 2013

AIR CARGO MARKET IN INDIA 2015.PPT

Nov 2013 - Dec 2013

Macroeconomic Indicators
Introduction
Market Overview
Major Domestic Airlines
Drivers & Challenges
Key Issues
Government Initiatives
Regulatory Framework
Technological Trends
Competitive Landscape
Strategic Recommendation
Appendix
AIR CARGO MARKET IN INDIA 2015.PPT

Indian aviation sector grew remarkably in the last decade


with robust growth in passenger and cargo traffic

SAMPLE

Aviation Sector Industry Classification

"The world is focused on Indian aviation - from manufacturers, tourism boards, airlines, global businesses to individual
travelers, shippers and businessmen. If we can find common purpose among all stakeholders in Indian aviation, a bright
future is at hand," as per Mr Tony Tyler, Director General and CEO of International Air Transport Association (IATA)

Aviation Industry

Note: MRO: Maintenance, repair and operations

AIR CARGO MARKET IN INDIA 2015.PPT

Air Cargo Movement Value Chain (1/2)

SAMPLE

The air cargo supply chain is a combined set of interconnected parties, locations, procedures, and information
exchanges that enables cargo to move from its origin to its destination by air

AIR CARGO MARKET IN INDIA 2015.PPT

Macroeconomic Indicators
Introduction
Market Overview
Major Domestic Airlines
Drivers & Challenges
Key Issues
Government Initiatives
Regulatory Framework
Technological Trends
Competitive Landscape
Strategic Recommendation
Appendix
AIR CARGO MARKET IN INDIA 2015.PPT

Growth in world air cargo has slowed over the past decade
mainly owing to consistent rise in fuel prices
Global Air Cargo Market Overview (1/2)

SAMPLE

World air cargo traffic is forecast to grow an average x% per year over the next 20 years to reach a total of more than twice the amount as
reported in 2013
AsiaNorth America, Europe-Asia, and EuropeNorth America are the leading east-west air cargo markets
Two principal causes are responsible for the weak air cargo growth between 2011 and 2013 are underperforming world economy and
lackluster growth in trade, particularly trade in the commodities that are traditionally carried as air cargo
Global air trade continued to gain momentum in 2014, and by Jul 2014 , traffic had grown y% compared to the first seven months of 2013

World Air Cargo Market Size and Growth

Projected Growth in World Air Freight (RTKs)


bn RTK

bn ton km

+Aa%
+b%

2005 2006 2007 2008 2009 2010 2011 2012 2013

2013

2033e

Note: RTK Revenue Ton Kms are used to determine the total amount of freight that is shipped by a transportation company in terms of revenue earned

AIR CARGO MARKET IN INDIA 2015.PPT

Asia overall and Domestic China will continue to lead the


world in average annual air cargo growth
Global Air Cargo Major Routes (1/2)

SAMPLE

Historical and Forecast Air Cargo Growth Rates (Major Routes)


2003-2013

2014-2033

Asia
North
America

Europe- Intra-Asia Europe


Asia
North
America

Intra Domestic
Latin
Latin
North
China America America
America
Europe
North
America

AIR CARGO MARKET IN INDIA 2015.PPT

AfricaEurope

South
Asia
Europe

Middle
East
Europe

IntraEurope

10

Air cargo sector continues to demonstrate a consistent


rapid growth

SAMPLE

Indian Air Cargo Market Overview (1/2)

Air cargo serves as a vital link between domestic and international markets
Air Cargo is poised to grow at a CAGR of x% over the next five years until 2019
Significant untapped potential of air cargo in India is apparent from the fact that the total cargo volume handled at Indian airports lagged
behind traffic handled at other major international airports
Rising local demand, improved international connectivity and resulting consolidation activity, and expanding cargo-handling infrastructure
are the key drivers of increased freight handling at airports
Increased trade activity, especially of physical goods between India and the Asia-Pacific region and the relocation of trade epicenters to
China, Southeast Asia and Africa could open up new opportunities for air cargo in India in the coming five years

Air Cargo Market Market Size and Growth


mn tons
+b%
+a%

2008

2009

2010

2011

2012

2013

2014

2015e

2016e

2017e

2018e

2019e

Note: Market size is based on all cargo handled by AAI airports. Unless otherwise specified all years mentioned are financial years from Apr-Mar

AIR CARGO MARKET IN INDIA 2015.PPT

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International cargo, which constitutes majority of total


cargo is largely handled by the metro airports
Air Freight Statistics Selected Segments (1/3)

SAMPLE

Growth in International Air Cargo by Indian Carriers

000 tons

2009

Growth in Domestic Air Cargo by Indian Carriers

000 tons

+a%

2010

2011

2012

2013

2014

2009

+b%

2010

2011

2012

2013

2014

Freight Handled by Major Airports, 2013 (Jan-Sept), Tons


International

Mumbai

Delhi

Chennai

Kolkata

Domestic

Bangalore

AIR CARGO MARKET IN INDIA 2015.PPT

Hyderabad

Ahmedabad
12

Macroeconomic Indicators
Introduction
Market Overview
Major Domestic Airlines
Drivers & Challenges
Key Issues
Government Initiatives
Regulatory Framework
Technological Trends
Competitive Landscape
Strategic Recommendation
Appendix
AIR CARGO MARKET IN INDIA 2015.PPT

13

Major Domestic Airlines (1/9)


Air India (1/2)

SAMPLE

Total Cargo on All Scheduled International Services (Last Five Years)


000 tons
+a%

2010

2011

2012

2013

2014

Total Freight

Total Mail

000 tons

000 tons
+c%

+b%

2010

2011

2012

2013

2014

2010

2011

2012

2013

2014

Note: Figures are for calendar year Jan - Dec

AIR CARGO MARKET IN INDIA 2015.PPT

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Macroeconomic Indicators
Introduction
Market Overview
Major Domestic Airlines
Drivers & Challenges
Key Issues
Government Initiatives
Regulatory Framework
Technological Trends
Competitive Landscape
Strategic Recommendation
Appendix
AIR CARGO MARKET IN INDIA 2015.PPT

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Drivers & Challenges

Drivers
Growth in International Trade

Challenges

Rapid Economic Growth

Rising Air Traffic Fuel (ATF) Prices

Growth in Retail Sector

High Taxes Raising Operating Costs

Thriving Pharmaceutical Shipments

Sub-standard Infrastructure and


Unavailability of Resources

Growth in e-Tailing

Poor Infrastructure of the Port Sector

AIR CARGO MARKET IN INDIA 2015.PPT

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Country wise scheduled freight carried to and from India by


all airlines

SAMPLE

Growth in International Trade (3/3)


India China Air Trade

tons

India USA Air Trade

tons

2013

2014

India Saudi Arabia Air Trade


tons

2013

2014

India UAE Air Trade

tons

2013

2014

2013

2014

India Germany Air Trade

India Hong Kong Air Trade

tons

tons

2013

2014

2012-13

2013-14

Saudi Arabia and USA shows the maximum growth in bilateral air trade for the last fiscal year
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Reduction of sales tax on ATF is considered to be one of the


most critical needs of the aviation sector
Rising Air Traffic Fuel (ATF) Prices (1/2)

SAMPLE

Impact

Text

Domestic Production and Consumption of ATF


Production

Consumption

Comparison of ATF Prices India and Competing Hubs


USD/kilolitre

000 tons

India
2009

2010

2011

2012

2013

Singapore Bankok

Kaula
Lumper

Dubai

Note: ATF price comparison are for the year 2011


AIR CARGO MARKET IN INDIA 2015.PPT

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Supply of skilled human resource has not kept pace with the
rapid growth in demand for human resource

SAMPLE

Sub Standard Infrastructure and Unavailability of Resources (2/3)


Text

Workforce Requirement Forecasts for Domestic Carriers

Airport Workforce Requirement Forecast


Total Workers

Pilots
Cabin Crew
Aircratf Engineerand Technicians

Other Staff

2011

2017

2011

2017

Note: The list of Airports is not exhaustive


AIR CARGO MARKET IN INDIA 2015.PPT

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Macroeconomic Indicators
Introduction
Market Overview
Major Domestic Airlines
Drivers & Challenges
Key Issues
Government Initiatives
Regulatory Framework
Technological Trends
Competitive Landscape
Strategic Recommendation
Appendix
AIR CARGO MARKET IN INDIA 2015.PPT

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Key Issues Summary

SAMPLE
Text

Aviation
Sector
Text

Text

AIR CARGO MARKET IN INDIA 2015.PPT

21

Macroeconomic Indicators
Introduction
Market Overview
Major Domestic Airlines
Drivers & Challenges
Key Issues
Government Initiatives
Regulatory Framework
Technological Trends
Competitive Landscape
Strategic Recommendation
Appendix
AIR CARGO MARKET IN INDIA 2015.PPT

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Indian Transportation Sector Particulars vs. Global


Benchmark (2013)

SAMPLE

Particulars

India

Global

India

Global

India

Global

India

China

Average Truck Speed (kmph)

Road

Four Lane Road Length (kms)


National Highway Length (kms)
Average Distance Traveled by a Truck in a Day (kms)

Particulars
Ports

Turnaround Time (hours)


Pre-berthing Delay (hours)

Particulars
Air

Airport Waiting Time Export (hours)


Airport Waiting Time Import (hours)
Aviation Turbine Fuel as % of Operation Cost

Particulars

Railway

Double Lines
Number of Locomotives
Number of Freight Wagons

The Indian transportation sector has a lot to improvise, invest and improve on in order to exploit the potentials of the freight market
AIR CARGO MARKET IN INDIA 2015.PPT

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Government Initiatives

SAMPLE

FDI Regime Sectors Pertaining to the Freight and Transportation Industry

Development of the Surface Transport Sector

Role of Government
`

Policies by the Ministry of Civil Aviation

Phased Implementation of VAT

Infrastructure Initiatives Union Budget 2014

AIR CARGO MARKET IN INDIA 2015.PPT

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Macroeconomic Indicators
Introduction
Market Overview
Major Domestic Airlines
Drivers & Challenges
Key Issues
Government Initiatives
Regulatory Framework
Technological Trends
Competitive Landscape
Strategic Recommendation
Appendix
AIR CARGO MARKET IN INDIA 2015.PPT

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Regulatory Framework (4/4)


Supply Chain Document Requirements (2/2)

SAMPLE

AIR CARGO MARKET IN INDIA 2015.PPT

26

Macroeconomic Indicators
Introduction
Market Overview
Major Domestic Airlines
Drivers & Challenges
Key Issues
Government Initiatives
Regulatory Framework
Technological Trends
Competitive Landscape
Strategic Recommendation
Appendix
AIR CARGO MARKET IN INDIA 2015.PPT

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Material Handling Technology (2/3)

SAMPLE

Automated Guided Vehicle System (AGVS)


Process and Benefits

Process

Text

Advantages

Text

Elevating Transfer Vehicles (ETV)


Process and Benefits
Process

Text

AIR CARGO MARKET IN INDIA 2015.PPT

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Macroeconomic Indicators
Introduction
Market Overview
Major Domestic Airlines
Drivers & Challenges
Key Issues
Government Initiatives
Regulatory Framework
Technological Trends
Competitive Landscape
Strategic Recommendation
Appendix
AIR CARGO MARKET IN INDIA 2015.PPT

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Porters Five Forces Analysis

SAMPLE
Impact

Threat of New Entrants


Text

Impact

Impact
Impact
Competitive Rivalry
Bargaining Power of Buyers

Bargaining Power of Suppliers


Text

Text

Text

Impact

Threat of Substitutes
Text

AIR CARGO MARKET IN INDIA 2015.PPT

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Competitive Benchmarking (2/5)

SAMPLE

Key Ratios of Top 3 Companies Operational Basis (FY 2013) (1/3)


Operating Margin

Player 1

Net Margin

Player 2

Player 3

Text

AIR CARGO MARKET IN INDIA 2015.PPT

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Public: Domestic Company Player 1 (1/5)


Company Information

SAMPLE
Offices and Centres India

Corporate Address

Tel No.
Fax No.

Website
Year of Incorporation
Head Office

Ticker Symbol
Stock Exchange

Products and Services


Category

Products/Services

Key People
Name

Designation

Sector (EPC)

AIR CARGO MARKET IN INDIA 2015.PPT

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Public: Domestic Company Player 1 (2/5)

SAMPLE

Financial Snapshot
Total Income

Key Ratios

Net Profit/Loss

Particulars

INR mn

INR mn

y-o-y change
(2014-13)

2014

2013

2012

2011

Profitability Ratios
Operating Margin
Net Margin
Profit Before Tax Margin
Return on Equity
Return on Capital Employed

2011

2012

2013

Return on Working Capital

2014

Return on Assets
Return on Fixed Assets

Financial Summary
The company earned a net profit of INR - mn in FY 2014, as
compared to net profit of INR - mn in FY 2013
The company reported total income of INR - mn in FY 2014,
registering an increase of -% over FY 2013
The company earned an operating margin of -% in FY 2014, a
decrease of m percentage points over FY 2013

The company reported debt to equity ratio of - in FY 2014,


registering an increase of -% over FY 2013

Key Financial Performance Indicators


Indicators

Value (03/02/2014)

Market Capitalization (INR mn)


Total Enterprise Value (INR mn)
EPS (INR)

PE Ratio (Absolute)

Cost Ratios
Operating costs (% of Sales)
Administration costs (% of
Sales)
Interest costs (% of Sales)

Liquidity Ratios
Current Ratio
Cash Ratio

Leverage Ratios
Debt to Equity Ratio
Debt to Capital Ratio
Interest Coverage Ratio

Efficiency Ratios
Fixed Asset Turnover
Asset Turnover
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover

Note : This company has had a fiscal year change on Dec-31, 2011

Improved

AIR CARGO MARKET IN INDIA 2015.PPT

Decline

33

Public: Domestic Company Player 1 (3/5)

SAMPLE

Key Business Segments

Key Geographic Segments

Integrated Air and Ground Transportation and Distribution

India

Text

Text

2014

2014

Business Highlights (1/2)


Description

News

Overview

Text

Infrastructure

Text

Recognitions

Text
AIR CARGO MARKET IN INDIA 2015.PPT

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Public: Domestic Company Player 1 (4/5)


Business Highlights (2/2)
Description

News

Services
Offered

Text

SAMPLE

AIR CARGO MARKET IN INDIA 2015.PPT

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Public: Domestic Company Player 1 SWOT Analysis (5/5)

SAMPLE

Text

Text

Text

Text

AIR CARGO MARKET IN INDIA 2015.PPT

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Private: Domestic Company Player 2 (1/5)


Company Information

SAMPLE
Offices and Centres India

Corporate
Headquarter

Tel No.

Fax No.
Website
Year of Incorporation
Head Office

Products and Services


Category

Products/Services

Key People
Name

AIR CARGO MARKET IN INDIA 2015.PPT

Designation

37

Private: Domestic Company Player 2 (2/5)

SAMPLE

Shareholders of the Company


Name

Ownership Structure

No. of Shares held

Total

100%

Ownership structure corresponds to Date of AGM: 31/03/2013

AIR CARGO MARKET IN INDIA 2015.PPT

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Private: Domestic Company Player 2 (3/5)

SAMPLE

Financial Snapshot
Total Income

Key Ratios

Net Profit/Loss

Particulars

INR mn

INR mn

2010

2011

2012

2013

Financial Summary

2012

2011

2010

Operating Margin
Net Margin
Profit Before Tax Margin
Return on Equity
Return on Capital Employed
Return on Working Capital
Return on Assets
Return on Fixed Assets

Cost Ratios
Operating costs (% of Sales)
Administration costs (% of
Sales)
Interest costs (% of Sales)

Liquidity Ratios

The company reported total income of INR - mn in FY 2013,


registering an increase of -% over FY 2012

Leverage Ratios

The company reported debt to equity ratio of q in FY 2013, an


increase of -% over FY 2012

2013

Profitability Ratios

The company earned a net profit of INR - mn in FY 2013, as


compared to net profit of INR - mn in FY 2012

The company earned an operating margin of -% in FY 2013, an


increase of k percentage points over FY 2012

y-o-y change
(2013-12)

Current Ratio
Cash Ratio
Debt to Equity Ratio
Debt to Capital Ratio
Interest Coverage Ratio

Efficiency Ratios
Fixed Asset Turnover
Asset Turnover
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover
Improved

AIR CARGO MARKET IN INDIA 2015.PPT

Decline

39

Private: Domestic Company Player 2 (4/5)

SAMPLE

Business Highlights
Description

News

Overview

Text

Cargo Services

Text

Awards

Text

AIR CARGO MARKET IN INDIA 2015.PPT

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Private: Domestic Company Player 2 SWOT Analysis (5/5)

SAMPLE

Text

Text

Text

Text

AIR CARGO MARKET IN INDIA 2015.PPT

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Macroeconomic Indicators
Introduction
Market Overview
Global
India

Major Domestic Airlines


Drivers & Challenges
Key Issues
Government Initiatives
Regulatory Framework
Technological Trends
Competitive Landscape
Strategic Recommendation
Appendix
AIR CARGO MARKET IN INDIA 2015.PPT

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Strategic Recommendation (3/5)

SAMPLE

Accomplishing Industry Status for Air Cargo Sector


Major Challenges Faced
Text

Text

Text

Text

Text

Improvements Desired
Text

Text

Text

Text

Text

Text

Text

Text

Text

AIR CARGO MARKET IN INDIA 2015.PPT

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Thank you for the attention


Air Cargo Market India report is part of Netscribes Automotive and Logistics Series.
For any queries or customized research requirements please contact:
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