Third Party Logistics Market India

Transcription

1 Third Party Logistics Market India November 2014

2 Executive Summary Market 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 Drivers & Challenges 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 Challenges Infrastructure Congestion High Inventory Levels Lack of Skilled Manpower Lack of Trust and Awareness Technology Adoption Competitive Landscape 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 Key Players Company A Company B Company C Company D Company E Company F 2

3 Macroeconomic Indicators Introduction Market Overview Global India 3PL Shipper Relationship Drivers & Challenges Technology Adoption Competitive Landscape Strategic Recommendations Opportunities Appendix 3

4 Demand for services of expert logistics outsourcing providers is rising worldwide Global 3PL Market Overview (1/2) Market Size & Growth 3PL Revenues Global 3PL Revenues Break-up (2012) INR bn X North America Europe Asia-Pacific Latin America Other Regions

5 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) DHL Supply Chain & Global Forwarding Kuehne + Nagel DB Schenker Logistics Nippon Express C.H. Robinson Worldwide CEVA Logistics DSV Sinotrans Panalpina SDV (Bolloré Group) 5

6 Third party logistics is fast gaining popularity in the Indian logistics market Indian Third Party Logistics Market Overview (1/2) Market Size & Growth Third Party Logistics INR bn x e 2015e 2016e 2017e 2018e 6

7 Outsourced Logistics Services Outsourced Logistics Services Share of Logistics Expenditure in Global Outsourcing (2013) Outsourcing Expenditure Others 7

8 Simultaneous cost reduction coupled with high productivity by electronics manufacturers will drive the 3PL market Growth in Consumer Electronics and Durables Industry Impact India s Consumer Electronics and Durables Market INR bn Y e 8

9 Growing dependence of automobiles and auto components sector on 3PL services to facilitate market growth Growth in Auto & Auto Components Sector Impact Growth in Automobile Production in India Growth in Revenue Auto Component Sector No. of Vehicles INR bn Y Z Note: Auto components includes Engine Parts, Drive Transmission & Steering Parts, Body & Chassis, Suspension & Braking Parts Equipments, Electrical Parts, Others 9

10 3PL providers need to customize their services and charge competitive rates to benefit from India s retail boom Growth in Retail Sector Impact Organized Retail Market Space Growth of Malls in India INR tn X Increasing retail space across the country will x augment growth of the 3PL market No. Number of malls Y mn sq ft e

11 Porter s Five Forces Analysis Threat of New Entrants Impact Low Impact High Impact Medium Impact Medium Bargaining Power of Suppliers Competitive Rivalry Bargaining Power of Buyers Impact Low Threat of Substitutes 11

12 Public: Domestic Company ABC (1/5) Company Information Offices and Centers India Corporate Address Tel No. Fax No. Website Year of Incorporation Ticker Symbol Stock Exchange Products and Services Category Products/Services Products Key People Name Hyderabad Designation Head Office 12

13 Public: Domestic Company ABC (2/5) Financial Snapshot Key Ratios INR mn 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) 2010 Total Income Net Profit/Loss 2013 INR mn Particulars 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 y-o-y change ( ) Improved Decline 13

14 Public: Domestic Company ABC (3/5) Key Business Segments Key Geographic Segments Text Text India Text Business Highlights (1/2) Description News Overview Text 14

15 Public: Domestic Company ABC (4/5) Business Highlights (2/2) Description Exports News Retailing Marketing 15

16 Public: Domestic Company ABC SWOT Analysis (5/5) S O W T 16

17 Private: Domestic Company ABC (1/5) Company Information Offices and Centers India Corporate Address Tel No. Fax No. Website Year of Incorporation Head Office Products and Services Category Products Products/Services Key People Name Designation PROJECT LOGISTICS MARKET IN INDIA 2014.PPT 17

18 Private: Domestic Company ABC (2/5) Shareholders of the Company Ownership Structure Name No. of Shares held Foreign holdings Bodies corporate Total Ownership structure corresponds to Date of AGM: 5/08/

19 Private: Domestic Company ABC (3/5) Financial Snapshot Key Ratios INR mn Total Income Net Profit/Loss INR mn Particulars Profitability Ratios Operating Margin Net Margin Profit Before Tax Margin Return on Equity y-o-y change ( ) Return on Capital Employed Return on Working Capital Return on Assets 2010 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 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 19

20 Private: Domestic Company ABC (4/5) Business Highlights Description News Overview Packing Facility Distribution Network Exports 20

21 Private: Domestic Company ABC SWOT Analysis (5/5) S O W T 21

22 Strategic Recommendations (1/2) 22

23 Thank you for the attention Third Party Logistics Market India report is part of Netscribes Automotive and Logistics Series. For any queries or customized research requirements, contact us at: Phone: About Netscribes, Inc. Netscribes, Inc. is a knowledge-consulting and solutions firm with clientele across the globe. The company s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes, Inc. is a one-stop shop designed to fulfil clients profitability and growth objectives. Disclaimer: This report is published for general information only. Although high standards have been used in the preparation, Netscribes is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes and prior permission is required for guidelines on reproduction. 23