Third Party Logistics Market – India
November 2014
2
Executive Summary
Market
Drivers & Challenges
Competitive Landscape
Drivers Economic Growth
High Cost of Logistics in India
Growth in Consumer Electronics and Durables Industry
Growth in Auto & Auto Components Sector
Growth in Retail Sector
Phased Implementation of VAT
Infra Related Government Initiatives
Technology Adoption
Challenges Infrastructure Congestion
High Inventory Levels
Lack of Skilled Manpower
Lack of Trust and Awareness
Key Players
Company A Company B Company C
Company D Company E Company F
Third party logistics is one of the growing sectors in India that has attracted a number of players
The market is rapidly evolving in India with more customers using outsourcing options to reduce cost
Identification Technology – Barcode, RFID
Material Handling Technology - Automated Guided Vehicle System (AGVS) , Information directed System
Communication Technology - Global Positioning System (GPS) Tracking
Information Technology – ERP, eBizNET – SC suite, Vin eRetail
THIRD PARTY LOGISTICS MARKET IN INDIA 2014.PPT
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•Macroeconomic Indicators
•Introduction
•Market Overview Global
India
•3PL – Shipper Relationship
•Drivers & Challenges
•Technology Adoption
•Competitive Landscape
•Strategic Recommendations
•Opportunities
•Appendix
4
Global 3PL Market – Overview (1/2)
Demand for services of expert logistics outsourcing providers is rising worldwide
• Text
Market Size & Growth – 3PL Revenues
INR bn
X
2013 2012 2011
THIRD PARTY LOGISTICS MARKET IN INDIA 2014.PPT
Europe
North America
Asia-Pacific
Latin America
Other Regions
Global 3PL Revenues Break-up (2012)
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Globalization of trade and technological developments has led to an increase in demand for 3PL providers
Global 3PL Market – Overview (2/2)
Share of Top 10 Global 3PL Players (2013)
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• Text
SDV (Bolloré Group)
DSV
Panalpina
Sinotrans
CEVA Logistics
DB Schenker Logistics
C.H. Robinson Worldwide
Kuehne + Nagel
Nippon Express
DHL Supply Chain & Global Forwarding
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Third party logistics is fast gaining popularity in the Indian logistics market
• Text
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Indian Third Party Logistics – Market Overview (1/2)
Market Size & Growth – Third Party Logistics
2013
INR bn
x
2018e 2017e 2016e 2015e 2014e
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Outsourced Logistics Services
Outsourced Logistics Services
Share of Logistics Expenditure in Global Outsourcing (2013)
Others
Outsourcing Expenditure
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Impact
Simultaneous cost reduction coupled with high productivity by electronics manufacturers will drive the 3PL market
Growth in Consumer Electronics and Durables Industry
• Text
India’s Consumer Electronics and Durables Market
INR bn
Y
2015e 2011
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Impact
Growing dependence of automobiles and auto components sector on 3PL services to facilitate market growth
Growth in Auto & Auto Components Sector
• Text
Growth in Automobile Production in India Growth in Revenue – Auto Component Sector
0
2013-14 2012-13
Y
No. of Vehicles INR bn
Z
2012-13 2011-12 2010-11 2009-10
Note: Auto components includes Engine Parts, Drive Transmission & Steering Parts, Body & Chassis, Suspension & Braking Parts Equipments, Electrical Parts, Others
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Impact
3PL providers need to customize their services and charge competitive rates to benefit from India’s retail boom
Growth in Retail Sector • Text
Organized Retail Market Space
0
X
2020e 2010
INR tn
2011-12 2010-11 2012-13
No. mn sq ft
Y
Number of malls
Growth of Malls in India
x
Increasing retail space across the country will augment growth of the
3PL market
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Porter’s Five Forces Analysis
Competitive Rivalry
• Text
Bargaining Power of Suppliers
• Text
Bargaining Power of Buyers
• Text
Threat of Substitutes
• Text
Threat of New Entrants
• Text
Impact High
Impact Medium
Impact Low
Impact Low
Impact Medium
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Public: Domestic Company – ABC (1/5)
Key People
Products and Services
Company Information Offices and Centers – India
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Ticker Symbol
Stock Exchange
Category Products/Services
Products
Name Designation
Head Office
Hyderabad
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Financial Snapshot Key Ratios
Financial Summary
• The company incurred a net profit of INR mn in FY 2013, as compared to net profit of INR mn in FY 2012
• The company reported total income of INR mn in FY 2013, registering decrease of % over FY 2012
• The company earned an operating margin of in FY 2013, a decrease of percentage points over FY 2012
• The company reported debt to equity ratio of Y 2013, a decrease of over FY 2012
Key Financial Performance Indicators
Indicators Value (5/08/2014) Market Capitalization (INR mn)
Total Enterprise Value (INR mn)
EPS (INR)
PE Ratio (Abs)
Particulars y-o-y change
(2013-12) 2013 2012 2011 2010
Profitability Ratios
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 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
Improved Decline
Public: Domestic Company – ABC (2/5)
Total Income Net Profit/Loss
INR mn INR mn
2013 2011 2012 2010
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Public: Domestic Company – ABC (3/5)
Key Business Segments Key Geographic Segments
2011 2012 2013 2010 2013
India Text Text
Business Highlights (1/2)
Description News
Overview •Text
Text
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Description News
Exports • Text
Retailing • Text
Marketing • Text
Public: Domestic Company – ABC (4/5)
Business Highlights (2/2)
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Public: Domestic Company – ABC – SWOT Analysis (5/5)
• Text • Text
• Text • Text
T O
W S
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Private: Domestic Company – ABC (1/5)
Key People
Products and Services
Company Information Offices and Centers – India
Name Designation
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Category Products/Services
Products
Head Office
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Private: Domestic Company – ABC (2/5)
Name No. of Shares held
Total
Ownership Structure
Ownership structure corresponds to Date of AGM: 5/08/2013
Shareholders of the Company
Bodies corporate
Foreign holdings
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Financial Snapshot Key Ratios
Particulars y-o-y change
(2013-12) 2013 2012 2011 2010
Profitability Ratios
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 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
Private: Domestic Company – ABC (3/5)
Improved Decline
Financial Summary
• The company incurred a net profit of INR mn in FY 2013, as
compared to net profit of INR mn in FY 2012
• The company reported total income of INR mn in FY 2013,
registering an increase of over FY 2012
• The company earned an operating margin of in FY 2013, an
increase of percentage points over FY 2012
• The company reported debt to equity ratio of in FY 2013, an
increase of %over FY 2012
Net Profit/Loss Total Income
2010
INR mn INR mn
2013 2012 2011
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Business Highlights
Private: Domestic Company – ABC (4/5)
Description News
Overview • Text
Packing Facility • Text
Distribution Network • Text
Exports • Text
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Private: Domestic Company – ABC – SWOT Analysis (5/5)
• Text • Text
• Text • Text
T O
W S
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Strategic Recommendations (1/2)
• Text
• Text
• Text
• Text
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THIRD PARTY LOGISTICS MARKET IN INDIA 2014.PPT