Tuscan Advisory

Solutions for the Logistics Entrepreneur

 TUSCAN VENTURES
Private Equity & Advisory Activity
Introductory Note

Introduction to Tuscan

Investment / Advisory company focused on Logistics, Transportation & Transport Infrastructure

Incepted in 2007 by Vishal Sharma – ex business head of Maersk Line India and Shagun Kapur Gogia, Vice
President with ICICI Ventures, India’s largest and oldest Private Equity house

Invested in LCL Logistix (15%) , one of India’s largest third party logistics firms and RSI International
(40%), a logistics and shipping focused training firm headquartered in Singapore

Advises promoters of companies looking to raise private equity or looking to exit their business

Recognized as India’s only boutique logistics and shipping focused investment & advisory company

First choice of Investment Bankers, Private Equity funds and financial institutions who want to invest in the
logistics, shipping and transportation space

Screened and advised on more than 100 deals covering the following sectors:
 Ports
 Private Rail
 Freight Forwarding / NVOCC
 Container Freight Stations / Inland Container Depots
 Warehousing
 Trucking
 Courier & Express
 Cold Chains
 TUSCAN VENTURES
Private Equity & Advisory Activity
Introductory Note

Tuscan invests and advises companies from across the supply chain

Logistics Training &

Software Consulting

Ports

Warehousing Air Cargo Road Rail

Cold Chains Courier ICD / CFS Coastal Shipping

&
Freight
Express
Forwarding
 TUSCAN VENTURES
Private Equity & Advisory Activity
Introductory Note

Tuscan Investments

Tuscan Ventures concluded an equity investment in LCL Logistix in May

2008 . Tuscan is a 15% shareholder in the company

With 33 offices and 400+ people, LCL Logistix is India’s largest ocean
www.lclshipping.com
freight forwarder with significant interests in CFS operation, yard
management, warehousing, distribution, air and project cargo

Tuscan Ventures concluded an equity investment in Rasmussen &

Simonsen International in April 2008. Tuscan is a 40% shareholder in the
company
www.r-sintl.com
RSI is a unique global training & development company focused on
www.shippingworkz.com
www.logisticsworkz.com training shipping and logistics professionals. RSI also owns and manages
two popular industry Internet portals

Tuscan has a sharp domain focus and prefers to invest in companies with
Financial Investor considerable scope of strategic / operational value-addition
+
Tuscan is an active investor and adds significant value to its portfolio
Operating Partner companies by engaging them on strategy discussions, systems and
processes and on the induction of robust corporate governance practices
 TUSCAN VENTURES
Private Equity & Advisory Activity
Introductory Note

Tuscan Advisory: Case Study

Dharamtar Logistics Park, 13NM from Nhava Sheva port, offers state-of-the-
art CFS and warehousing facilities and services for EXIM cargo touching JN
Port

In early 2008, Dharamtar Port engaged Tuscan to:
 Design the operational flow for container cargo at Dharamtar Port and
Logistics Park
 Market the facility to shipping companies and end users

Tuscan assisted with the creation of a viable operational flow for container
traffic to and fro Dharamtar port

Since, Tuscan has aggressively marketed the facility to shipping companies
and cargo owners with good results
 Most reputed shipping lines now accept cargo to and from Dharamtar.
These include Maersk Line, CMA-CGM, PIL, Hapag Lloyd among
others
 Several cargo owners have accepted the sense of including Dharamtar
in their current supply chains

Overtime, Dharamtar is gaining recognition as a viable complimentary facility
to the Nhava Sheva port system
 TUSCAN VENTURES
Private Equity & Advisory Activity
Introductory Note

Tuscan Advisory: Case Study

Top 5 Global 3PL
Maersk Logistics, a part of the A. P. Moller – Maersk Group, is a significant 3PL
Major service provider globally with aggressive growth plans for India

In 2008, Maersk Logistics engaged Tuscan Ventures as an advisor to their
Headquartered in India focused Acquisitions strategy
Europe with offices in
>100 countries

Tuscan Ventures proposed an M&A strategy for Maersk Logistics, fitting with
their overall India strategy

Tuscan evaluated several acquisition options based on the criteria agreed upon
and introduced the most optimal targets to Maersk Logistics

Maersk Logistics is currently in discussion with two companies simultaneously
for potential acquisitions
 TUSCAN VENTURES
Private Equity & Advisory Activity
Introductory Note

Why does private equity have a role in today’s market ?

Credit has dried up. Customers are holding payments but suppliers are
pushing for theirs.
Cash may equal

Timely injection of working capital can come as a lifeline. Often, the only
survival way to ensure survival

Asset prices are at an all time low. Timing it right is key but possible only if
cash is available at short notice
Small window to low
In industries, where own assets make good business sense, optimally
asset prices priced purchase of assets will emerge as a strong competitive advantage
when the going is good again

An economic downturn is a great time to build a future organisation –

acquire and train talent, put processes in place and introduce cost and
Constructing a other controls
future organisation
The will to invest in these often sidelined initiatives has to be matched by
cash
 TUSCAN VENTURES
Private Equity & Advisory Activity
Introductory Note

Why do PE funds prefer to invest logistics companies ?

Logistics companies are able to hold their The industry has seen increased M&A in recent
value better in an economic downturn years, giving investors more opportunities to exit

2008 Jan-Dec 1400

Industry change (%)
1200
Road & Rail 16%
Airfreight & Logistics -12% 1000
Consumer Staples -21%
Health Care -30% 800

Consumer Discretionary -37% 600

Industrials -39%
Information Technology -39% 400
Utilities -40%
200
Materials -43%
Financials -44% 0
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Energy -45%
Telecommunication Services -48%
Source: Intersections, Global Transport & Logistics Mergers & Acquisition
Source: Business Week, Dow Jones performance, 2008 January - Analysis (2007Q4), Price Water house Coopers
December
 TUSCAN VENTURES
Private Equity & Advisory Activity
Introductory Note

Why should Tuscan advise you ?

The Tuscan team has more than 40 years of hands on experience in

logistics, shipping, transportation and transport infrastructure
We understand the
The team has worked across the Indian subcontinent, Europe, North
America, Africa & South East Asia in leadership roles
logistics industry

It has interacted and advised more than 100 Indian logistics companies

It has advised logistics multinationals on acquisition of companies in India

As investors, the Tuscan team has critically reviewed more than 120 private
equity investment opportunities from the logistics & transportation space
We know what
It has advised, reviewed and worked on logistics deals with most of India’s
leading private equity funds
investors look for

Tuscan Ventures has itself structured, due –diligenced and invested in a third
party logistics company (LCL Logistix), where it now sits on the board

Tuscan has an intimate understanding of the private equity process used by

institutional investors (IC decision / Financial negotiations / Legal structuring)
We know how to get

The Tuscan team is very familiar with the typical challenges faced by promoters
you ready for from the logistics space in raising private equity
investors
Tuscan leverages this working knowledge of the requirements and challenges of
each side to ensure that the promoter is well prepared for the PE process
 TUSCAN VENTURES
Private Equity & Advisory Activity
Introductory Note

An investor ready company is a robust company

Strong
Investment
Need / plan

Business
strategy /
Competitive
positioning
Corporate
Investor Governance
Readiness

Financial
controls

HR
practices
/ Performance
incentives
Weak
Low Company robustness High
 TUSCAN VENTURES
Private Equity & Advisory Activity
Introductory Note

Stage 1. Evaluating need and readiness for Private Equity

STAGE 1: STAGE 2: STAGE 3:

EVALUATING PE READINESS GEARING UP ENGAGING INVESTORS

• What are the real drivers of my industry – now and in future?

• How’s my scale relative to competition?

• Am I playing to my unique competitive advantage?

• Should I even continue this business or exit it?

• Can PE really be a competitive differentiator for me?

• What should be my valuation expectation?

 TUSCAN VENTURES
Private Equity & Advisory Activity
Introductory Note

Stage 2. Gearing organization for Private Equity

STAGE 1: STAGE 2: STAGE 3:

EVALUATING PE READINESS GETTING READY FOR INVESTORS ENGAGING INVESTORS

• Do I have the management depth to support the growth you

envision?

• Does my organization come across as a professional one?

• Do I have orderly financials, data and documentation ?

• Am I able to clearly articulate my strategy as well as the risks?

• Am I able to clearly position myself a cut above my

competitors?

• Do I clearly understand the time and effort it takes to engage

investors?
 TUSCAN VENTURES
Private Equity & Advisory Activity
Introductory Note

Stage 3. Locating funds

STAGE 1: STAGE 2: STAGE 3:

EVALUATING PE READINESS GEARING UP ENGAGING INVESTORS

• Can I clearly articulate the opportunity that my industry

segment presents?

• Do I have a impressively detailed information memorandum?

• Do my projections find the right balance between optimism and

market reality?

• Do I have a sense of the kind of questions investors typically

have?

• Am I aware of the rights that I should focus on in my

negotiations?

• Do I know how best to manage an investor during and after

funding?

Founder Partners

Business Head – Maersk Line
India, US$ 1.5 bn revenues; 350
employees; 21 offices

Head – Group Strategy Office, AP
Moller Maersk, US$25 bn revenues, 60
countries 25000 employees; oversaw group
strategy for shipping business, oil &
Vishal Sharma gas, logistics, port , banking, BPO business
MD / CEO

Managing Director - Maersk
Vietnam, US$ 400 mn revenues, 200
employees, negotiated the country’s first
_private port concession ~ APMT Saigon

MBA, Chicago School of Business

Vice President – ICICI Ventures, US$ 2 bn
AUM; 100 employees; 50 deals
concluded, India’s oldest and most well
established Private Equity house. Personally
completed 5 deals aggregating in excess of
US$ 100 mn in the Real Estate sector.
Reviewed 120+ deals

Corporate Finance – Rabo Bank, 3 years
Shagun Gogia
Director, Invest
of Mergers & Acquisitions, participated in 10
ments transactions across banking, bio-
technology, finance and real estate. Was part
of Founding Team.

Very strong proprietary network in India’s
investment banking and private equity space

MBA, Indian School of Business
TUSCAN VENTURES
Private Equity & Advisory Activity
Introductory Note
Advisory Team

Worked on transactions in the private
rail, 3PL, warehousing, distribution, co
urier & express and NVOCC spaces

Last role with Maersk Line’s Regional
Headquarters, Singapore

Head of Marketing, AP Moller
Maersk, India ~ headed Market
Dhritiman
Intelligence, Corporate Communications &
Hui
Principal - External Relations for the sub-continent’s
Investments largest shipping company

Part of AP Moller Maersk’s elite Global
Management Training Program, trained
in Logistics & Ports

Worked on transactions in the air & sea
freight forwarding, ports &
terminals, container freight
stations, project cargo and logistics
software spaces

Head of Marketing, AP Moller
Maersk, South Asia ~ headed Market
Intelligence, Corporate Communications
Gagan
Seksaria & External Relations for the sub-
Principal - continent’s largest shipping company
Investments
Investments, APM Ports & Terminals
~ responsible for negotiating and
managing 2 USD 300 million+ port
projects in West Africa

MBA in Marketing
Dhritiman Hui
Principal
+91 9967316481
dhritiman.hui@tuscanventures.com

Gagan Seksaria
Principal
+91 9821236792
gagan.seksaria@tuscanventures.com