Third Party Logistics Market India November 2014
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
Macroeconomic Indicators Introduction Market Overview Global India 3PL Shipper Relationship Drivers & Challenges Technology Adoption Competitive Landscape Strategic Recommendations Opportunities Appendix 3
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 2011 2012 2013 4
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
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 2013 2014e 2015e 2016e 2017e 2018e 6
Outsourced Logistics Services Outsourced Logistics Services Share of Logistics Expenditure in Global Outsourcing (2013) Outsourcing Expenditure Others 7
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 2011 2015e 8
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 0 2012-13 2013-14 2009-10 2010-11 2011-12 2012-13 Note: Auto components includes Engine Parts, Drive Transmission & Steering Parts, Body & Chassis, Suspension & Braking Parts Equipments, Electrical Parts, Others 9
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 0 2010 2020e 2010-11 2011-12 2012-13 10
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
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
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 2011 2012 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 (2013-12) 2013 2012 2011 2010 Improved Decline 13
Public: Domestic Company ABC (3/5) Key Business Segments Key Geographic Segments Text Text India Text 2010 2011 2012 2013 2013 Business Highlights (1/2) Description News Overview Text 14
Public: Domestic Company ABC (4/5) Business Highlights (2/2) Description Exports News Retailing Marketing 15
Public: Domestic Company ABC SWOT Analysis (5/5) S O W T 16
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
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: 5/08/2013 18
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 (2013-12) 2013 2012 2011 2010 Return on Capital Employed Return on Working Capital Return on Assets 2010 Financial Summary 2011 2012 2013 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
Private: Domestic Company ABC (4/5) Business Highlights Description News Overview Packing Facility Distribution Network Exports 20
Private: Domestic Company ABC SWOT Analysis (5/5) S O W T 21
Strategic Recommendations (1/2) 22
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