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CRISILCRBCustomised Research BulletinApril 2013

Sector Focus: Logistics


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CRISIL Customised Research BulletinCRB


3/20

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CRISIL Customised Research BulletinCRB


5/20

Foreword

In this edition of our Customised Research Bulletin, we present our viewson Logistics, by looking at three topics of contemporary relevance to the

sector.

A significant portion of Indias agricultural output gets wasted even before

it reaches the consumption centres on account of insufficient and

ineffective infrastructure for warehousing. This situation is about to

change, with agricultural warehousing emerging as a specialised

opportunity in warehousing. In addition to the prevailing shortage in

warehousing capacity in key locations, agricultural warehousing demand

is driven by increasing demand for quality warehousing from organised

end-users of farm produce (such as retail and food processing) and better

organisation of the farmer community into Self Help Groups/

Cooperatives. The government, on its part, is continuing to go beyond

earlier interventions and has allocated Rs. 50 billion in the Union Budget

2013-14 to NABARD to develop agri-storage infrastructure. As a result,

our outlook is positive on this segment and we expect it to evolve beyond

its conventional focus on warehousing for government agencies.

Container handling infrastructure is a critical enabler for Indias external

merchandise trade. To support container traffic via gateway port

terminals, there is a need for suitably located infrastructure such asContainer Freight Stations, in order to reduce port congestion. However,

rising land prices near cities and ports can impact the attractiveness of

such logistics infrastructure. In our opinion section, we look at JNPT,

Indias largest container port, as a representative case and assess the

impact of rising land prices on future prospects for container handling

infrastructure near JNPT.

The slowdown observed in the Indian economy over the last few quarters

has impacted the demand for domestic freight transportation services. In

the interview section of this edition, we analyse the slowing growth

indicators in primary freight demand and present our views on the growth

drivers going forward. We also explore some of the longer term structural

trends in the industry.

We look forward to your feedback and suggestions.

Prasad Koparkar

Senior Director

Industry & Customised Research


6/20

CRISILCRBCustomised Research Bulletin

Opinion

Agri-warehousing offers considerable growth opportunity 01

Container infrastructure growth near JNPTwill it be critically impacted

by land prices? 04

Interview

Mr Manoj Mohta, Director - CRISIL Research 08

Economic OverviewApril 2013 10

Customised Research Services

Logistics 11

Media Coverage 12

Contents


7/20

1

Nearly 30-40 per cent of Indias food produce goes awaste primarily due to insufficient warehousing facilities.

In India, crops are wasted in the post harvest and

processing stage unlike the western world where

wastage occurs at the retail and consumer level. This

wastage can be reduced considerably by constructing

adequate agri-warehousing infrastructure.

Warehousing is a vital component in the agriculture

value chain as it enables markets to store the

agricultural produce during and beyond the harvest

season in order to maintain year-round supply.

Warehousing is closely linked with production,

consumption and trading activities. Therefore, a strong

agri-warehousing infrastructure can effectively facilitate

the development and sustenance of a robust

agricultural backbone in the country.

Insufficient storage infrastructure that is predominantly

aged and government dominated plagues the Indian

agricultural industry. This results in significant post-

harvest wastage. However, the situation is set to

change with focused government policies and

regulations backed by growing private sector

participation. This article attempts to highlight the

current status of the agri warehousing sector and

factors driving its growth.

Status of warehousing capacity in IndiaAs per the Planning Commission Working Committee

Report (2011), the warehousing capacity in India is

about 108.75 million metric tonnes (MMT).

Warehousing capacities in India (2011)

Source: Planning Commission

As is evident from the graph, around 70 per cent of the

capacities belong to the government and are typically

used for the storage of foodgrains procured by

government agencies. Further, storage space available

in the country is found to be qualitatively and

quantitatively inadequate to house procured stocks. As

a result, a substantial quantity of the produce is stored

in cover and plinth (CAP) storage.

Private participation gaining prominence

Over the last decade (2000 to 2010), the share of

private sector capacities has increased from ~10 per

cent to 17 per cent. The need for organised and good

quality warehousing gives private players a chance to

not only support government initiatives but alsocapitalise on potential opportunity in agricultural

warehousing space.

Demand drivers for agri warehousing

The factors presented below are the growth drivers for

warehousing for agricultural commodities.

FCI, 29%

CWC, 9%

SWC, 20%

State CivilSupplies,

10%

Co-operativesector,14%

Privatesector,17%

Cooperativesector, 14%

OpinionAgri-warehousing offers considerable

growth opportunity


8/20

2


Factors driving growth in agri-warehousing

Source: CRISIL Research

Production consumption mismatch, favourable

government policies, thrust on reduction of wastage,

efficient management of the harvest and consequent

increase in private participation are the key growth

drivers for warehousing in the agriculture sector.

Warehousing capacity significantly lags cropproduction

The green revolution in India ushered in an era of

substantial crop production, however storage

infrastructure for the same did not keep pace.

According to CRISIL Researchs analysis (performed at

district and state levels, covering 42-45 crops produced

and the available government storage capacities), some

states have inadequate government warehousing

capacities for agricultural commodities. For instance,

the estimated demand for agri-warehousing in the state

of Andhra Pradesh is 1.5-1.75 times that of government

storage capacities (CWC, SWC, FCI).

At the district level too, capacity augmentation is the

need of the hour particularly in districts, where demand

exceeds capacities by 1.5-3.0 times. It is in these areas

especially that private players can capitalise on the

growth opportunity to plug the capacity gap.

Private capacities may provide quality warehousingto reduce wastage

Typically, warehousing capacities in the country are not

of high quality, with low levels of mechanisation and

concentrated capacities near the production centres. As

per the Planning Commission, about 80 per cent of

handling and warehousing facilities are not mechanised

and traditional manual methods for loading, unloading

and handling of foodgrains and other commodities are

practiced. The Planning Commission further estimates

that 8-10 per cent of foodgrains and 25-30 per cent of

horticulture produce are damaged due to moisture,

insects, rodents and fungi. In the light of this, private

players can create integrated storage capacities with

pest control facilities; and provide a wide range of

value-added services such as testing, grading and

certification, which can help in managing agricultural

supply chain better.

Focus on commodities other than rice and wheat

Traditionally, most of the storage infrastructure was

directed at and developed for food grains. However, the

post harvest loss of fruits & vegetables, cereals, oilseed

produce is also high (as shown in the graph below) due

to inadequate warehousing and transportation facilities.

Therefore, the next stage of growth in agri-warehousing

could focus on such commodities for the benefit of all

stake holders.

GrowingOrganised

Retail/ FoodProcessing

Clusters

Impetus toreduce wastage

of the cropproduce

Requirementof adequate

scientific andefficientstorage

HigherProduction

thanwarehousingcapacities

Govt.Policies andRegulations

Focus onstoring

commodities

other thanfood grains


9/20

3

Post Harvest Losses (%)

Source: Indian Council of Agricultural Research, 2010

Warehousing as a business needs to transform from

being a mere storage provider to an integrated supply

chain management facilitator, leveraging on private

sector participation that can adopt the latest technology.

Consequently, goods can be stored suitably and

protected from losses from pilferage, pest attacks,

natural degradation etc.

Growth drivers

Growth in organised end users of farm produce such as

retail and food processing clusters provide significant

opportunity for warehouse owners and operators to

change the agri-warehousing scenario.

In addition to farmer related initiatives and the push

from private players, the farmer community is

organising itself better. With the aim of having better

bargaining power with the customers and manage

potential price fluctuations, farmer co-operatives and

Self Help Groups (SHG) are helping drive demand forwarehousing. Further, such focused groups also reduce

the overall cost of warehousing for farmers on account

of collective bargaining. Further, significant expansion

of the contract farming practice is likely to streamline

the warehousing market for agricultural produce.

Government thrust, an enabler

To address the stated problems in agri-warehousing,

the government has made significant announcements

aimed at increasing private participation and developing

organised, high quality infrastructure. In Union Budget

2013-14, the government has allocated Rs 50 billion to

NABARD to develop agri storage infrastructure across

the country. Apart from this, warehousing is enabled by

several government schemes that are operational:

Warehousing (Development & Regulation) Act

It aims to standardise warehousing operations and

make warehouse receipts negotiable (NWR),

enabling farmers to get easy credit against the

harvest collateral, avoidance of distress sale,

thereby increasing the importance of warehouses.

Loan availability Agri-warehousing activity is

covered under Priority Sector Lending by RBI.

Subsidy Schemes Grameen Bhandaran Yojana

Capital investment subsidy scheme offered by

NABARD which ranges from 15 per cent to 33 per

cent of the project cost. Further, there is a National

Agricultural Renewal Fund by GoI encouraging

private investment in creation of infrastructure.

Further, private sector participation is

establishing itself via government initiatives,

private enterprise or Public-Private Partnerships

(PPP). In the PPP model for agricultural

warehousing, governments contribution may be to

make available land parcels for private players to

build and operate the infrastructure. Another

possibility is for private players to maintain, upgrade

and operate existing government infrastructure in

order to provide more efficiency or a wide range of

value added services. Further, farmers can

organise into SHGs/ cooperatives and create better

agricultural supply chains.

In conclusion, significant losses in crop produce and

governments focus on the sector imply major growth

potential in warehousing for agricultural and horticultural

products. In such a scenario, private enterprise or PPP

will be the way forward.

0 5 10 15 20

Ground nut

Turmeric

Black Pepper

Black Gram

Tomato

Guava

%


10/20

4


JNPT, a primary gateway port of India, has long been

playing a crucial role in facilitating the countrys external

trade. With the development of Navi Mumbai, real

estate activities around JNPT have increased

significantly. Further, the proposed Navi Mumbai

Airport, Mumbai Trans Harbour Link and Special

Economic Zones are driving real estate development in

the vicinity, resulting in rising land costs. While there is

significant growth potential for logistics near JNPT, cost

of land acquisition is becoming a key challenge for

infrastructure players. In such a scenario, we look at

how land as a capital cost item may impact container

infrastructure growth.

JNPT is central to Indias container traffic

Jawaharlal Nehru Port Trust (JNPT) is the largest

container traffic handling port in India, handling about

4.26 million TEUs in 2012-13. With substantial 42 per

cent share in the overall container traffic of India,

JNPTs extensive hinterland spans bulk of the states in

Western India and Northern India.

Growth in CFS infrastructure keeps pace with

EXIM traffic

EXIM activities at JNPT have driven the growth of

logistics infrastructure near the port. Container Freight

Station (CFS), Export-Import (EXIM) warehouses, cold

storages and associated logistics facilities have grown

significantly near JNPT in the past. For instance, in line

with the rise in traffic at JNPT, the number of CFS near

JNPT1increased from 8-10 in 2000 to ~30 in 2012.

1Note: JNPT area includes area within 15-25 kms from JNPT i.e.

Dronagiri, Belpada, Ranjanpada, Jasai, Chirle and Ulwe etc.

Upcoming developments in logistics

infrastructure near JNPT

In future, container logistics activity is expected to be

driven and catalyzed by key projects such as:

Fourth Container Terminal at JNPT: The process of

bidding for the fourth terminal is underway, and is

planned to be developed in two phases by 2017-18.This can aid in addressing the ever increasing port

congestion arising from growing container traffic

volumes.

Dedicated Freight Corridor (DFC): The development

of Western DFC (Dadri to JNPT) is expected to come

up by 2017-18 and is likely to improve port connectivity

from the Northern and Western hinterland. This is

estimated to support the Delhi-Mumbai Industrial

Corridor (DMIC) as well, that can lead to enhanced

EXIM traffic.

The above factors augur well for the growth of container

traffic at JNPT and demand for container infrastructure

near JNPT.

Historic real estate developments near JNPT

Accompanying the growth in traffic at JNPT in the past

was the broad-based development of Navi Mumbai that

led to increasing demand for land in the region.

Navi Mumbai development

In the past decade, Navi Mumbai region (including

Vashi, Airoli, Koparkhaine, Uran, Ulwe/JNPT and

Panvel etc.) has emerged as a preferred residential and

commercial real estate destination near Mumbai.

Industrial growth at various MIDCs (Mumbai Industrial

OpinionContainer infrastructure growth near JNPT

will it be critically impacted by land prices?


11/20

5

Development Corporation) i.e. Turbhe, Pawane and

Taloja etc. has also played a pivotal role in Navi

Mumbai development. As a result, land prices have

increased significantly.

Rising land cost near JNPT

Market price for land in and around JNPT has shot up

annually at an average ~30 per cent in the past 5 years.

To put it in context for a CFS player, in 2006, container

handling facilities in Dronagiri entailed land acquisition

at about a third of the prevailing rates. Similarly,

CIDCO reserve prices have grown at 10 per cent CAGR

between 2008-09 and 2012-13 (February). The rise inprices can be attributed to the developments in Navi

Mumbai.

Key trend Growth in market price vs. CIDCO

reserve price of land near JNPT (2008-09 to 2012-

13)

Note: Price for 2012-13 is as per February 2013

Source: Industry, CRISIL Research

Planned projects to further increase land

prices

Land prices are expected increase further on account of

new projects that have been planned and announced in

Navi Mumbai region (near JNPT).

Navi Mumbai International Airport:An international

airport is proposed by the government in Ulwe (Navi-

Mumbai) that can drive land demand from associated

businesses such as hotels and commercial segments.

Mumbai Trans-Harbor Link: A 22 km sea link is

planned in order to improve access between South

Mumbai and Navi Mumbai, extended to Mumbai-Pune

expressway. This is a positive demand driver for all

segments of the real estate market.

Navi Mumbai and Maha Mumbai Special Economic

Zones (SEZ): The planned SEZs can potentially drive

land demand further, in addition to over 15,000 acres of

land that has already been allocated to them.

Thus, growing real estate and urban infrastructure

activities in Navi Mumbai and around JNPT area are

increasing demand for land and this has resulted in a

sharp rise in prices for land in the recent past.

Land: Key factor impacting development of

container infrastructure near JNPT

In the background of increasing land prices and growing

volumes of container traffic, it is important to assess the

relevance of land as a factor impacting development of

green field container infrastructure.

0%

5%

10%

15%

20%

25%

30%35%

40%

45%

50%

2008-09 2009-10 2010-11 2011-12 2012-13

CIDCO reserve p rice (y-o-y) change

Market price (y-o-y) change


12/20

6


Land is increasingly becoming a key capital cost for

green field logistics projects. Taking into consideration,

land prices at present levels in and around JNPT area

(Dronagiri, Jasai and Chirle), share of land prices in the

overall capital cost has shown a significant uptrend in

comparison to the past.

Share of land in overall capital cost for CFS facility

near JNPT

Source: Industry, CRISIL Research

The rise in lands contribution to capital cost is mainly

due to the significant rise in land prices near JNPT. A

similar trend has been observed for other allied logistics

infrastructure near JNPT as well, such as warehouses

and cold storages.

Other issues related to land acquisition

Much of the land near JNPT has already been allocated

by CIDCO for various infrastructure developments.

Remaining land is either with local villagers for

agriculture or is under the development of real estate

projects. Delays in obtaining N.A.Cs (Non Agriculture

Clearance) and N.O.Cs (No Objection Certificate) for

land from CIDCO impact the cash flows of developers.

Further, increasing commercial and residential real

estate activities has diverted the interest of land owners

near JNPT to favour the upcoming real estate segments

as against giving their land to logistics infrastructure

players (i.e. CFS, warehouse/logistic parks and cold

storage developers). There are reported instances of

land owners exerting pressure on existing container

infrastructure players to cancel their lease agreements

in order to provide land for real estate and hospitality

activities.

Hence, non-availability of ready-to-use industrial land,

coupled with higher land costs on account of upcoming

projects around JNPT challenge the creation of green

field logistics projects.

Models observed for green-field logisticsinfrastructure

Despite the above- mentioned challenges, the

upcoming logistics projects including development of

fourth container terminal at JNPT and DFC are positive

factors for the demand for containerised infrastructure

near JNPT. In negating the land cost factor, CFS

players may adopt some of the following commonly

observed models:

Joint Venture (JV) with land owners: JV model

minimises the land related capital expense for players

while recognizing the land owner as an equity partner.

Hence, offering suitable revenue share may enhance

attractiveness for the land owner to participate,

depending on the risk/ reward expectations of the

owner. Also, industry associations and other similar

bodies that own land near JNPT may seek to be

partners, in order to benefit their core businesses.

Public Private Partnership: To support allied logistics

activities, which are expected to grow on account of

upcoming fourth terminal and DFC near JNPT,

Government may employ PPP as a practical option. In

this model, the government makes available suitable

land parcels for the private operator. This will lower the

capital expense burden on the operators and hence,

can facilitate effective growth of logistics infrastructure.

30%-40%

50%- 60%

0%

10%

20%

30%

40%

50%

60%

70%

2007 2012


13/20

7

Benefit to the government will be broad based including

improvement of export competitiveness of Indian

industry, reduction of congestion (at port and on roads),

lower accidents on roads, reduced pollution etc.

In conclusion, increasing real estate activity leading to

rising land prices can hinder the growth of logistics

infrastructure near JNPT. Logistics players planning

green-field infrastructure projects may adopt some of

the prevailing models of land acquisition such as JVs

and PPP. Growth of logistics infrastructure near JNPT

hinges on how the existing models sustain/ evolve in

future.


14/20

8


Manoj Mohta, DirectorCRISIL Researc h, has over

15 years of specialised experience in industry research,

financial analysis and forecasting. He is part of the

Customised and Industry Research group of CRISIL

Research. He has worked on assignments pertaining to

demand assessment, market sizing, company research

and business strategy. Prior to CRISIL Research, he

was Head of Financial Research at a venture capital

funded firm that provided financial research services to

global I-bankers, hedge fund and corporate clients.Manoj holds a Master of Business Administration (MBA)

degree from Northeastern University, Boston, USA and

a Bachelor of Engineering degree from Roorkee

University (an IIT), India. He has extensive experience

in analysing the automobile, logistics, metals, banking

and telecommunications sectors and has led research

initiatives across diverse sectors.

How do you interpret the performance of thedomestic freight transportation servicesindustry in the last few years?

In 2011-12, growth in domestic primary freight demand

(in BTKM terms) moderated to ~ 6 percent. This was

primarily due to the slowdown in the Indian economy

that subsequently led to low freight availability. The

demand growth reduced further in 2012-13 due to weak

agricultural growth and sluggish growth in industrial

output. Agricultural growth slowed down significantly

because of weak monsoons, while industrial growth

was impacted by factors such as weak business

sentiment in India, policy logjam at central and state

government levels, anemic demand growth in export

markets and supply side constraints.

This performance in the recent past is in contrast to the

healthy double digit growth recorded between 2006-07

and 2010-11. Driven by a booming Indian economy, the

industry saw increase in traffic of bulk commodities2as

well as non-bulk goods.

How has the modal mix for primary freightmoved in the last few years?

Historically, rail has been the preferred mode of

transport for bulk commodities. However, on account of

overall slowdown in mining, regular freight rate

increases and rake availability constraints, there has

been a marginal drop in the share of railways for some

bulk commodities.

Increase in non-bulk traffic due to growth in

consumption, has boosted road traffic volumes

significantly. Consequently, the share of road in primary

freight is estimated to have risen from 55 per cent in

2006-07 to ~62 per cent in 2011-12, primarily at the

expense of rails modal share.

2Bulk freight comprises seven bulk commodities listed by the

Indian Railways - coal, cement, fertilisers, iron ore, iron andsteel, foodgrains and petroleum, oil and lubricants. Non-bulk

freight encompasses all other freight traffic movement.

InterviewMr Manoj Mohta

Director, CRISIL Research


15/20

9

How do you think the sector will perform overthe next 12- 18 months?

Given the relationship of the sector with the macro-

economic growth parameters, demand growth for the

sector will continue to depend on growth in agriculture

and industrial production. For the short term, the picture

emerging from recent macro economic developments is

not very encouraging. Hence, demand growth is

expected to be slower over the next 12 18 months in

comparison to historical growth performance. Growth

outlook can significantly improve if growth in industrial

production returns to historical levels and is

accompanied by normal monsoons.

Are there any structural changes taking place

in the primary freight market that can impact

the sector over the long term?

A combination of themes can potentially impact the

primary freight market in terms of its future evolution.

On the consumption side, demand from end users is

moving beyond metros and increasingly originating from

other large cities, semi urban and rural areas. The

number of cities with population of over a million has

increased from 35 in 2001 to 53 in 2011, indicating

emergence of newer consumption centres. Moreover, in

the backdrop of several promotional schemes of the

government and rising income levels, rural spending is

estimated to have outpaced urban spending between

2009-10 and 2011-12, a first in nearly 25 years. As a

result, structurally, there is lengthening and broadening

of supply chains of a number of product categoriesnecessitating the emergence of new logistics hubs and

spokes. The broad improvement in road infrastructure

across India is a key enabler of this structural evolution.

In combination with consumption related trends, sites

for large manufacturing and infrastructural green-field

projects are coming up at diverse locations, driven by a

mix of government incentives and geographical

advantages. For instance, the governments

announcements on focused Investment Regions/

Economic Zones are expected to drive industrial growth

from such new locations.

In the above context, governments plans on Goods and

Services Tax and transportation infrastructure projects

such as Dedicated Freight Corridor are expected to

drive efficiency in the sector. Potential drivers of

efficiency include consolidation of logistical operations

(including of transportation assets higher truck

payloads, wagon axle loads) and optimised capability to

support multi-modal operations. This can consequently

lead to increasing prevalence of hub and spoke logisticsmodels, supported by growth in high quality

warehousing and other physical infrastructure linkages.

Further, there is potential for enabling higher economic

growth by reducing cost of logistics for exports and

domestic distribution.

How do you view the long term prospects of

the sector (over the next 3-5 years)?

On account of an expected revival in the annual GDP

growth, we expect primary freight demand to recover to

a healthy growth level of 7-10 per cent CAGR between

2012-13 and 2016-17. This is expected to be supported

by structural factors, such as increasing demand and

production from newer locations and impact from

planned governmental interventions. Of the overall

growth, growth in non-bulk traffic is expected to outpace

growth in bulk traffic, driven by consumption demand.


16/20

10


Indian EconomyEconomic OverviewApril 2013

Macroeconomic Indicators - Forecasts

Inflation Industrial production growth Currency

Sectoral inflation Trade Growth

Interest rates

Foreign inflow (US$ bn) Credit growth

High Threat Medium Threat

-8

-4

0

4

8

12

Feb-12 May-12 Aug-12 Nov-12 Feb-13

Mfg

40

45

50

55

60

Apr-12 Jul-12 Oct-12 Jan-13 Apr-13

Avg Rs per US$

-20

-10

0

10

20

30

Mar-12 Jun-12 Sep-12 Dec-12 Mar-13

Exports Imports

7

8

9

Apr-12

Jun-12

Aug-12

Oct-12

Dec-12

Feb-13

Apr-13

1 Yr 10 Yr

0

10

20

30

Apr-12 Jul-12 Oct-12 Jan-13 Apr-13

Non-food credit growth

0

10

20

Mar-12

Jun-12

Sep-12

Dec-12

Mar-13

PrimaryFuelManufacturing

4

6

8

10

12

Mar-12 Jun-12 Sep-12 Dec-12 Mar-13

WPI CPI-IW

-2

2

6

10

Mar-12

May-12

Jul-12

Sep-12

Nov-12

Jan-13

Mar-13

FDI+(ECBs/FCCBs)

Net FII flows

2012-13A 2013-14 Rationale

Grow th Agriculture 1.8* 3.5

Industry 3.1* 4.4

Services 6.6* 7.3

Total 5.0* 6.0

Inf lation WPI - Average 7.3 6.3

WPI inflation forecast f or 2013-14 has been revised dow nw ards as demand

pressures on prices are expected to remain weak due to slow er than anticipated

pick-up in GDP grow th. Easing inflation may prompt the RBI to cut the repo rate

further by 25-50 basis points in 2013-14.

Fiscal def ic it as a % of GDP 5.2# 5.1Low er GDP grow th to result in low er than budgeted tax revenues. We also expect

some shortfall on disinvestment and spectrum sale relative to budgeted levels.

Interest rate10- year G-Sec

(year end)8 7.7-7.8

Despite marginally higher f iscal def icit than anticipated earlier, low er inf lation to keep

yields in this range. Around 25-50 bps reduction in repo rate expected until March

2014.

Exchange

rate

Re/US $

(year end)54.4 54.0

Relative interest rate differential and increase in foreign institutional investment limits

to attract enough inflow s to cover the current account deficit, and keep the currency

around the current levels

Note *CSO Advance Estimates,# revised estimate, A: Actual

Source: Central Statistical Organisation, CRISIL Research

Forecast revised dow n due to w eaker momentum in household demand, downw ard

rigidity in lending rates, lower Euro zone grow th forecast by S&P and persistent

shortage in fuel supply.


17/20

11

Customised Research Services Logistics

CRISIL Research covers logistics as a specific vertical, covering both service providers (transport companies

and infrastructure providers) and end-user segments. We also have a deep understanding of movement of

several bulk and non-bulk commodities such as steel, cement, fertilisers, iron ore, consumer durables, FMCG,

organised retail etc., which has been facilitating trade and thereby driving the demand for logistics. Our regular

coverage on related infrastructure sectors such as roads, railways, ports etc. adds strength to our

understanding of the logistics industry and helps in estimating opportunities and forecasting demand. CRISIL

Research is, thus, well positioned to bring out deep insights into logistics and distribution optimisation

engagements.

Key Offer ings

Market-sizing and competitive assessment for different transport modes (roads, rail, coastal and pipeline)and infrastructure segments (cold chains, warehousing and CFS/ICD).

Traffic potential and broad financial assessment for setting up of multipurpose/agriculture warehouse for aselect location.

Project IRR analysis across various infrastructure segments and traffic analysis across major routes withinthe country using different modes.

Commodity-wise analysis of container traffic movement in India.

Market-sizing, growth prospects and opportunities for 3PL (third-party logistics) in India.

Assessment of costs for inbound and outbound supply chain across various end-user industries.

Commodity-wise cost analysis of major commodities transported using various modes of transport.

Benchmarking of players and service providers (CFS, ICD, warehousing etc.)

Vendor assessment: credit and cost-benefit analysis.

Logistics industry

In fras tructure segments End-user i ndus tri esModes of transport

Road

Rail

Coastal

Pipeline

Warehousing

Coldstorage

Food grains

Cars

Consumer durables

FMCG

IT hardware

OrganisedretailPharmaceuticals

Textiles

Two-wheelers


18/20

12


Media Coverage


19/20

Our Capabilities

Economy and Industry Research

Funds and Fixed Income Research

Largest and most comprehensive database on India's debt market, covering more than 15,000securities

Largest provider of fixed income valuations in India

Value more than Rs.53 trillion (USD 960 billion) of Indian debt securities, comprising outstanding

securities Sole provider of fixed income and hybrid indices to mutual funds and insurance companies; we

maintain12 standard indices and over 100 customised indices

Ranking of Indian mutual fund schemes covering 70 per cent of assets under management andRs.4.7 trillion (USD 85 billion) by value

Retained by India's Employees' Provident Fund Organisation, the world's largest retirementschemecovering over 60 million individuals, for selecting fund managers and monitoring theirperformance

Equity and Company Research

Largest independent equity research house in India, focusing on small and mid-cap companies;coverage exceeds 125 companies

Released company reports on 1,442 companies listed and traded on the National Stock Exchange; aglobal first for any stock exchange

First research house to release exchange-commissioned equity research reports in India

Assigned the first IPO grade in India

Largest team of economy and industry research analysts in India

Coverage on 70 industries and 139 sub-sectors; provide growth forecasts, profitability analysis,emerging trends, expected investments, industry structure and regulatory frameworks

90 per cent of India's commercial banks use our industry research for credit decisions

Special coverage on key growth sectors including real estate, infrastructure, logistics, and financialservices

Inputs to India's leading corporates in market sizing, demand forecasting, and project feasibility

Published the first India-focused report on Ultra High Net-worth Individuals

All opinions and forecasts reviewed by a highly qualified panel with over 200 years of cumulativeexperience

Making Markets Function Better


20/20

CRISIL Ltd is a Standard & Poor's company

Our Offices

Ahmedabad

706, Venus AtlantisNr. Reliance Petrol Pump

Prahladnagar, Ahmedabad, India

Phone: +91 79 4024 4500

Fax: +91 79 2755 9863

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W-101, Sunrise Chambers

22, Ulsoor Road

Bengaluru - 560 042, India

Phone: +91 80 2558 0899

+91 80 2559 4802

Fax: +91 80 2559 4801

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43/44, Montieth Road, Egmore

Chennai - 600 008, India

Phone: +91 44 2854 6205/06

+91 44 2854 6093

91 44 2854 7531Fax: +

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Plot No. 46, Sector 44,

Opp PF Office, Gurgaon,

Haryana, INDIA

Phone : +91 0124 672 2000

Contact us

Manoj MohtaPhone: +91 22 3342 3554 | Mobile: +91 989 20 18101E-mail: [email protected]

Prosenjit GhoshPhone: +91 22 3342 8008 | Mobile: +91 992 06 56299E-mail: [email protected]

Hyderabadrd

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(Near Punjagutta Cross Road)

Hyderabad - 500 482, India

Phone: +91 40 2335 8103/05

Fax: +91 40 2335 7507

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Horizon, Block 'B', 4 Floor

57 Chowringhee Road

Kolkata - 700 071, India

Phone: +91 33 2289 1949/50

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Shivaji Nagar

Pune - 411 005, India

Phone: +91 20 2553 9064/67

Fax: +91 20 4018 1930

CRISIL LimitedCRISIL House, Central AvenueHiranandani Business Park, Powai, Mumbai - 400 076. India

Phone: +91 22 3342 3000 | Fax: +91 22 3342 8088www.crisil.com

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CRISIL Research Cust Bulletin Apr13

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