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Four s fortnightly logistics track 4th september - 17th september 2012

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  • 1. 4 S E P ’ 1 2 – 1 7 S E P ’ 1 2 Logistics TrackResearch4India Fortnightly update on Logistics Industry In The Spotlight ContentsAgri ministry pushes for ` 50bn scheme forpost-harvest logisticsThe Union Ministry of Agriculture has planned to ask News of the fortnight 1for a ` 50bn budget during the 12th five-year Plan(2012-17) for a scheme to allow private companies tocollaborate with farmers to produce, harvest, process, Investment Activity 3transport and market various agro products. Officialssaid the aim was to ensure availability of farmproduce across the country at affordable prices. Titled News Update 4the Public-Private Partnership for IntegratedAgricultural Development, or PPP-IAD, it hopes tocreate an efficient supply chain for cereals, Global News Update 7perishables and other high-value produce. The planaims to cover a million farmers during the Plan.Funds are to be leveraged through the flagship Stock Market Updates 10Rashtriya Krishi Vikas Yojana.A company, it is suggested, could propose a projecttargeting a minimum of 10,000 farmers, over three to Peer Benchmarking 11five years, covering all aspects from production tomarketing. Average investment per farmer is to be `100,000 and government assistance will be restricted About Four-S Services 12to half the overall investment in this regard, within aceiling of ` 50,000 per farmer. The ministry says italready has 33 project proposals from private Four-S India Our logisticscompanies, sent through the Federation of Indian Logistics Report report is nowChambers of Commerce and Industry. A project will 2011-12 available forinvolve mobilising farmers into producer groups and purchase. Aregistering as a joint stock producer company or a 100 page, hardco-operative or self-help group. In the process, thesecompanies could coordinate with the Indian Council of bound wordAgricultural Research for improved varieties of document,seeds/seedlings and for sorting credit issues with the presented byNational Bank for Agriculture and Rural Development. Central, this isThe hope is for infusion of technologies using India’s mostprecision farming techniques, primary processing, comprehensivesorting, grading , washing, packaging and value and rigorousaddition clusters, development of warehouses, cold research reportchains, etc. The Small Farmers Agri-Business on Logistics.Consortium will provide professional support servicesto such producer firms. To buy the report, or to know more about it, see Page 2. Research4India is the research services arm of Four-S Services Pvt Ltd, a leading provider of high-end research, financial consulting and Investment banking services. For subscription / custom queries, please contact Seema Shukla at seema@four-s.com
  • 2. Logistics Track Central Logistics Intelligence presents “Four-S India Logistics Report 2011-12”. This is the first comprehensive, rigorous report on the logistics sector. It brings a new analytical perspective to the sector research coverage, which is plagued by poor research. Incorrect notions like: the Indian logistics sector is 13-14% of GDP; or there is multiplier of 2x between logistics growth and GDP growth rate – abound, and are often quoted by leading logistics companies, industry associations and sector consultants. The report presents original data and analysis on several key aspects of the sector, including size of various segments and projections, and highlights investment potential. In the report we have taken a comprehensive look at all the key segments of logistics and supply chain.We find EXIM and agri-logistics areas of great promise. The 3PL/contract logisticsspace also has strong potential, which will get a push as and when the long awaitedgoods and services tax (GST) reforms are implemented. We expect greater activityfrom PE funds and MNCs in this decade compared to 2001-10.The report includes information about the key players in the Indian logistic sector and itsvarious segments.“Four-S India Logistics Report 2011-12” is prepared by the research of Four-S Services(www.four-s.com), which has covered this sector in detail in India for several years now.REASONS TO BUY India’s first comprehensive report on the logistics and supply chain business The report has original numbers and projections, backed by rigorous analysis, which would compel you to question some of the established facts floating around about the sector. Takes a detailed look at all key business segments, and highlights growth potential. Mentions key listed and unlisted companies in the sector.FOR WHOMCompanies in the supply chain and logistics business in India, logistics MNCs wanting to enterIndia, private equity funds, industry associations, policy makers, independent consultants andindustry researchersHOW TO BUYKindly write to Seema Shukla at seema@four-s.com You can also call Ashutosh Sharma at0124-425 1442, or Devendra Deole at 022-42153659 to book your copy. Research4India 2
  • 3. Logistics TrackInvestment Activity PE Deals in 2012 Stake Amount Date Investor Target Strategy (%) ($ mn)6-Jan General Atlantic Foursee Infrastructure Equipments NA 20.8 Growth Ltd.23-Feb IDFC Private Equity StarAgri Warehousing & Collateral NA 30.0 Growth Mgmt23-Feb Global Super Angels Chhotu.in (Santa Claus Couriers) NA NA Angel28-Mar Ambit Pragma Spear Logistics NA 1.7 Growth30-Mar VenturEast, Zephyr Peacock e2E Rail NA 6.0 Early26-Apr New Silk Route VRL Logistics NA 33.4 Late19-Apr KKR, Goldman Sachs TVS Logistics 20.0 55.0 Growth29-Jun Vertex Venture Holdings, KPCB, Reverse Logistics NA NA Growth Sherpalo Ventures25-Jul Ambit Pragma Mehta Frozen Foods Carriers 74.0 NA Early19-Aug GTI Capital Brattle Foods NA NA Growth The space saw 10 deals till date raising a total disclosed amount of $185.1mn. Mergers & Acquisitions in 2012 Stake Amount Date Investor Target Business (%) ($ mn) 1-Feb Oil Field Warehousing & Services Raamns Shipping & Logistics NA NA Logistics Services20-Apr DHL Express (India) Pvt Ltd DHL Lemuir Logistics Pvt Ltd 24.0 NA Logistics Services15-May DTDC Eurostar Express NA NA Courier Services 18-Jul SG Holdings Sindhu Cargo Services 40.0 NA* Logistics Services 18-Jul SG Holdings Sunlog Services 40.0 NA* Logistics Services16-Aug Dempo Group Modest Infrastructure NA 140.0 Ship-building & Repair *SG Holdings have invested a total of $18mn in Sindhu Cargo Services and Sunlog Services which are sister concerns The space saw 6 deals till date but the transaction details were disclosed for one only. Dempo Group acquired ship-building & repair company Modest Infrastructure for $ 140mn in August 2012. In 2011, there were 11 PE deals in Logistics space worth $278.1mn. The largest among came from Warburg Pincus which invested $100mn in Continental Warehousing Corporation for un-disclosed stake. In the same year, 8 M&A deals in Logistics space. TVS Logistics acquired 100% stake in US based MESCO for un-disclosed amount. Amongst the disclosed, the largest was 100% stake by Royal Vopak in CRL Terminals for $61.8mn Research4India 3
  • 4. Logistics Track News UpdateDHL to trim Blue Dart stake from 81% to Ship repair facility for CSLcomply with Sebi norms Cochin Shipyard has been given the go-aheadDeutsche Post DHL plans to bring down its to set up a ` 7.5bn ship repair and buildingstake in Blue Dart Express, held through its facility at Cochin Port. Union shipping ministersubsidiary DHL Express Singapore, to comply G.K. Vasan announced the bid award to Cochinwith minimum public shareholding Shipyard Ltd, which followed Cochin Port’srequirements. Deutsche Post DHL currently floating a tender for building the facility a fewholds 81 percent in the Mumbai-based express months ago. The project would come up on thelogistic firm. Future collaboration between Blue old Rajiv Gandhi Terminal premises. The newDart Express and Deutsche Post DHL will not be project would benefit the shipyard, which wasaffected by this transaction and Deutsche Post on an expansion mode.DHL remains fully committed to the domesticmarket, said a statement from the German RINL sets in motion freight car axle unit incompany. The Euro 53bn Deutsche Post DHL, Jalpaiguriwhich is a world leader in postal and logistics Rashtriya Ispat Nigam Ltd (RINL) has set ingroup, said the move is enable the domestic motion preparatory work for its proposed `company to comply with the new minimum 2.8bn railway freight car axle project in Westpublic shareholding norms, which demands Bengal. The processes were initiated for alisted companies to have at least 25% of their feasibility study, flotation tenders for the plantstake with the public by next June. and machinery and the off-take agreement withSical Logistics to set up JV for coal the Railways. The RINL unit is to be located onwashery in Talcher a 46-acre plot of land at New Jalpaiguri in the under-industrialised northern part of the State.Chennai based Sical Logistics Ltd, in which A 30-year renewable land lease agreement withTanglin Retail Reality Developments has a stake the Railways has already been executed. Theof 53.12%, is planning to set up a joint venture proposed project would have the capacity toto set up a coal washery in Talcher, Orissa, to produce 50,000 pieces of axles a year. Eachexecute an integrated contract for the axle will have the load bearing capacity ofmovement of coal. The company is also between 22.9 tonnes and 25 tonnes and will beexpecting permission from relevant authorities 210 mm in diameter. The new plant will haveto use its iron ore terminal in Ennore to handle the facility of forging and heat treatment. Atalternate cargoes since the terminal could not present, the Indian Railways depends onbe commercialised for iron ore transportation. substantial imports of axles. Though the off-The company has sought shareholders’ approval take deal is yet to be signed, it has been agreedfor giving corporate guarantees or providing that the Railways would purchase around 70securities or loans or advances, and for making per cent of the production. The remaininginvestments not exceeding ` 4.5bn in its output would be meant for local and overseassubsidiary or joint venture companies. markets.According to an announcement with the BSE,the investment shall not exceed ` 4.5bn, and CIL plans ` 145bn on rail, to spend ` 245bnwould be used in Sical Iron Ore Terminals Ltd, on capexwhich has an iron ore terminal in Ennore Port. Battling low production, the worlds largest coalThe investment would also be for setting up of miner CIL today said it has earmarked ` 245bna coal washery at Talcher through a joint capital expenditure over the next five yearsventure. mainly to boost capacity and is also looking at Research4India 4
  • 5. Logistics Trackspending another ` 145bn to augment rail shipments from India to ports in North Europeinfrastructure. The PSU planned to undertake a and the Mediterranean. Hapag Lloyd raisedconditional investment of ` 145bn on rates on the Japan-Australia and Japan-eastaugmenting rail infrastructure. According to the Asia routes, while MSC increased their Europe-CIL Chairman, S Narsing Rao, the company Asia route and Indian subcontinent-Northernintends to spend ` 75bn on rail infrastructure Europe rates. This week, data compiled by theprovided the Railways complete the project on commerce ministry had said exports slid bytime. It also intends to spend another ` 70bn nearly 15% in July, the steepest dive in threeon rail projects for faster transportation of coal years.if all goes well. ABC India to consider sale of stake inLifeCell partners with Sequel Logistics Nissin ABC Logistics Pvt. Ltd.LifeCell International, one of the leading stem According to announcements, the meeting ofcell storage companies in India has announced the Board of Directors of ABC India Ltd wasits partnership with Sequel Logistics, a companythat specialises in critical logistics, to offer schedules last Saturday to approve sale of 19% shareholding out of present 24% shareholdingPersonalized Shipment Service of the umbilicalcord blood and tissue samples. The initiative is in Nissin ABC Logistics Private Limited.critical in healthcare logistics whereby stem Industry hails Cabotage exemption tocells of the new born will be shipped through Vallarpadam terminalSequel’s partner airlines via the next availableflight to LifeCell’s processing and storage facility The much awaited announcement of relaxationin Chennai. It is important for stem cell in the Cabotage rules for the Vallarpadampreservation since the sample will reach the terminal is likely to herald a new era in thelaboratory for testing and processing within 24 container transhipment business from thehours from metro cities and 36 hours from non- region. The fledgling International Containermetro cities. StemCell estimates to generate Transhipment Terminal at Vallarpadam can lookrevenues of more than Rs 1bn in the current forward to doing more business infinancial year. The current size of stem cell transhipment, now being carried out mainlybanking industry is around 40,000 enrolments through Colombo and Salalah. Colombo Portper year and the industry has been growing at handles a transhipment throughput of 2m TEUs30% in the recent past. Currently the industry from India. However, the ICTT is currentlyis serviced with dedicated cargo handlers who doing only a meagre transhipment business ofoperate on an overnight hub-and-spoke model. 20,000 TEUs a year. This is expected to go up significantly with the relaxation of the law.Global shipping companies hike shipmentrates Indian Railways to get more than ` 4 bn from RLDAInternational container carriers, ignoring a weak Rail Land Development Authority (RLDA), aglobal economy, have started actively raising statutory authority established by Ministry ofrates for shipments from India and other Railways for generating non-tariff revenue fromregions since the past few months in an effort railway land, announced that it is soon going toto pull the global shipping industry out of restart offering sites for development of Multichoppy waters. While the move to increase Functional Complexes and railway land forrates across various routes may breathe life commercial development. RLDA has nowinto the shipping industry, it has affected the targeted for earning more than ` 4bn duringcompetitiveness of the Indian export sector current financial year. RLDA has prepared anaccording to the exporters. Hapag-Lloyd will action plan for fast tracking the development ofincrease rates by $200 per 20-foot container projects and realization of expected revenues.unit and $400 per 40-foot container unit on all RLDA has lined up 60 more new MFC sites andResearch4India 5
  • 6. Logistics Track8 other standalone sites for which bidding high-axle load and low tare-weight aluminiumprocess is being initiated in phases within a wagons in which FreightCar holds a majorityfortnight. Many real estate consultants like stake of 51%, with the remaining 49% ownedKnight Frank, IL&FS, PWC, E&Y and JLLM are by Titagarh Wagons.advising RLDA in Planning and Marketing the Kerala expects boom in logistics sectorMFC/Commercial sites. With the Union Cabinet’s approval to relax theRailways cut spending on assets Cabotage law facilitating the transshipment ofWith less money in the kitty, Indian Railways containers to and from the Internationalhas cut its spending on asset replacement by Container Transshipment Terminal (ICTT),about 15%. The cut is a fallout of the rollback Vallarpadam, the logistics sector in the state isof passenger fares rises. Investment in the all set for a giant leap. It is expected thatreplacement of aged assets financed from the around 50,000 direct and 100,000 indirectdepreciation reserve fund (DRF) has been cut employment opportunities will be generatedby 18% to ` 75.8bn. Similarly, the railways within five years. A massive investment ofhave slashed the budget for the development about ` 150bn will also be pumped into thefund (DF) by 20% to ` 29.9bn and the capital sector. At present, the rail traffic in the state isfund (CF) by 14% to ` 42.7bn. The railways had almost 25% above the capacity. To tap thetargeted to almost double spending to ` potential of the law relaxation, better road, rail199.9bn under four funds, including the Railway and water connectivity are crucial. The ICTT willSafety Fund, this year from ` 102bn in 2011- realise its full potential of one million twenty-12. But, with the cut in investment, the foot equivalent unit (TEU) within a year. Owingspending is now expected to be around 60% to it, newer opportunities will emerge not onlymore than the revised estimate for 2011-12. at the Vallarpadam terminal but at Vizhinjam,The railways operate various funds to meet the Azheekkal, Beypore and 14 other minor ports.requirement of asset acquisition, construction, Areas such as supply chain, logistics, materialreplacement and renewal as well as pension handling, storage, information technology,payments to employees. These funds are fully warehousing and inventory management willor partially financed by railway revenue, emerge as possible business areas in the state.budgetary support by the central government Kerala plans cargo movement throughor market borrowings, if needed. coastal shippingTitagarh denies joint venture with The Kerala government plans to decongest theFreightCar is over state roads, diverting at least 20% of the cargoKolkata-based wagon manufacturer Titagarh traffic through coastal shipping by 2015 andWagons has denied that its joint venture with 40% by 2020. The state is planning to do thisFreightCar America has been scrapped. Earlier a through a three-pronged strategy comprisingnewspaper had reported that, FreightCar building of infrastructure and institutions andAmerica Inc has called off its joint venture with providing incentives. The State will create a `Titagarh Wagons due to latter’s failure to get 3bn fund to finance the incentive. To overseeapproval from Indian Railways for a prototype the development of the maritime sector, Keralaof an aluminium wagon, which the US-based will also set up a State Maritime Board on thewagon maker specialises in. But, according to lines that exist in other maritime States such asthe official at Titagarh, The joint venture is still Gujarat and Maharashtra. The coastal trafficintact, the report that has been published is potential through non-major ports of the statefalse and very soon both the companies will do is estimated to be 4.64mn tonnes during 2012-a joint press conference in this regard. The joint 14 and 7mn tonnes by 2019-20. Among theventure pact was signed in 2008 between both infrastructure development initiatives in thethe companies and it was formed to develop port sector, Vizhinjam International ContainerResearch4India 6
  • 7. Logistics TrackTrans-shipment Terminal is the prime project of the earlier Indian Ports Global. India plans tothe state. This project is proposed to follow spend as much as `3tn on its ports in thelandlord model, where dredging, reclamation, decade ending 2020 to triple its cargo-handlingconstruction of breakwater, quay wall and capacity to 3.2bn tonnes, according to theexternal infrastructure like power, water, road maritime agenda for the decade announced byand rail connectivity are done by the Vizhinjam the shipping ministry in January 2011. IndianInternational Seaport Ltd. The building of Ports Ltd is structured on the lines of DP World,terminal superstructure and its operation for 30 which is majority owned by the Dubaiyears is proposed to be done by the private government and PSA International Pte Ltd, aoperator on PPP (public-private-partnership) wholly owned unit of Temasek Holdings (Pvt.)model. Kollam, Alappuzha, Kodungallore, Ltd, the sovereign wealth fund of Singapore.Ponnani, Beypore and Azheekkal ports are also The proposed SPV will have 50% equityearmarked for development. participation from ports controlled by the UnionMinistry moots infrastructure status for government with financial institutions holdingcoastal shipping the balance.In order to promote coastal shipping, theshipping ministry has moved a note for the Global News UpdateCabinet Committee on Infrastructure (CCI) to C.H. Robinson to acquire Apreo Logisticssecure infrastructure status for the sector. C.H. Robinson Worldwide has agreed to acquireThe status would help the sector make good Apreo Logistics S.A. (“Apreo”), a leading freightuse of various benefits such as easier credit at forwarder based in Warsaw, Poland. Founded incheaper rates and faster regulatory clearances. June of 2007, Apreo provides truckload servicesThe move would also help in promoting trade including dry van and temperature controlledalong Indias coastline of 5,560km, having and liquid and dry bulk capabilities. Toaccess to the sea on three sides with 11 major complement their truckload offering, theand 168 minor and intermediate ports. It would company also offers additional warehouse, airalso increase private investment in the sector and ocean services. Apreo has shown significantand encourage infra-focussed funds to pump in growth over the past several years, withmoney. The Cabinet Committee on current gross revenues over $100mn whileInfrastructure has outlined six characteristics servicing more than 2,000 customers. Thefor a sector to qualify for infra status. These company has over 300 employees in 21 officesinclude sector involving natural monopoly, high- in Poland and one office in Germany. Thissunk costs and asset specificity, non-tradability acquisition will expand C.H. Robinsonsof output, non-rivalness in consumption, presence in Europe. Founded in 1905, C.H.possibility of price exclusion, and presence of Robinson Worldwide, Inc., is a global providerexternalities. Besides, three other factors are of multimodal logistics services, fresh producekept in mind while granting infra status. These sourcing, and information services to 37,000are the sectors importance to the scheme of customers through a network of more than 230economic development, its ability to contribute offices and over 8,700 employees around theto human capital and the specific circumstances world. The company works with 53,000under which it has developed in India. transportation providers worldwide. C.H.Shipping ministry alters plan on SPV Robinson is a Fortune 500 company and hadThe shipping ministry has altered its plan to set annual revenues of $10.3bn in 2011.up a special purpose vehicle (SPV) for investing Donnelley acquires XPO to expandin overseas port assets to include local ports as operationswell. To reflect this change, the ministry hasrechristened the SPV to Indian Ports Ltd fromResearch4India 7
  • 8. Logistics TrackR.R. Donnelley & Sons Co (RRD) has acquired while UPS was given access to five cities. FedExprivately-held outbound mailing services already provides services in Chinese citiesprovider Express Postal Options International. through joint ventures with local companiesThe financial terms of the deal were not while UPS doesnt have partnerships withannounced. The acquisition of Express Postal Chinese companies. FedEx can now operate inOptions International or XPO is expected to the cities of Shanghai, Guangzhou, Shenzhen,strengthen Donnelleys logistics business Hangzhou, Tianjin, Dalian, Zhengzhou andsegment and expand its operations in more Chengdu. UPS was given a license for the citiesthan 150 countries. Donnelley has been of Shanghai, Guangzhou, Shenzhen, Tianjin andexperiencing strong growth in the logistics Xian. The authorization comes four monthssegment. In the last concluded quarter, this after Chinese regulators approved a $1.6bnsegment reported an 11.3% jump in revenue. initial public offering by state-owned ChinaStrong growth in the logistics space along with Postal Express & Logistics, one of the largestvolume increase in certain office products courier companies in the Chinese domesticrestricted the decline in revenues to 3.6% on a market.year-over-year basis. Donnelley is focusing onacquisitions to expand and enhance its offering GLP, Haier Group to develop logisticsto its current customers, as well as to expand network in Chinathe customer base. The companys continued Singapore-listed Global Logistic Propertiesfocus on acquisitions will also spur its already (GLP) has said it is partnering Chinese homedominant market position and drive long-term appliance maker Haier Group to develop agrowth. logistics network in China. As per the newsChinas Alibaba to lift investment in release, the move is for the distribution oflogistics network Haiers household appliances across China. Under the agreement, Haier will manage theChinese E-commerce giant, Alibaba Group, is industrial facilities resources of the grouplooking to put $100mn ($AU96.7mn) towards through its arm Qingdao Haier Industrialparcel-delivery and warehouse operations. Development Co. GLP and Haier are expected toAccording to the reports, the investment will collaborate and integrate resources like capitaladd to the 10bn yuan ($AU1.53bn) already land sourcing and management expertise tocommitted to in 2011 for improving the meet Haiers logistics requirements in China.companys logistics. Alibabas group chiefstrategy officer Zeng Meng said the company Survey shows Turkey will be next bigwas under pressure from underdeveloped logistics locationlogistics infrastructure throughout China. Mr According to the survey by Jones Lang LaSalle -Zeng acknowledged a growing Chinese appetite a multinational financial and professionalfor online shopping was fueling activity on services company specialising in real estate,Alibabas popular shopping websites Taobao Turkey tops European supply chain managersand Tmall. list as emerging logistics market over the nextChina grants FedEx, UPS operating five-years. Poland and Romania follow inlicenses for some Chinese cities second and third spots. It says, Turkey offers all attributes required to become an emergingPackage delivery companies FedEx Corp and logistics market. Its geographic locationUnited Parcel Service Inc have received bridging Europe with Middle Eastern, Asian andapproval to provide express-package services in African countries is ideal to make it ansome cities of China on their own, according to international logistics hub its economy isthe countrys State Postal Bureau (SPB). The growing strongly based on a stable politicalapproval gives FedEx access to eight cities framework, there have been and are stillResearch4India 8
  • 9. Logistics Tracksignificant investments in infrastructure. more than half the added capacity, having putDespite its significant retail market and trade on 232,000 and 218,000 TEU respectively sincevolumes, the Turkish logistics market is July 2011, Alphaliner reports. As of July 1, thecurrently underdeveloped and dominated by total liner capacity has reached 16.53mn TEU,local players and small family businesses. of which 16.05mn TEU is made up of container ships, an increase of 6.5% in the last 12Abu Dhabi JV eyes $1bn Japan investment months. It said that only two carriers, CSAV and Zim, removed capacity during the period.Abu Dhabi Investment Council has partnered Cash-strapped CSAVs capacity has halvedwith an Australian real estate company to during the last 12 months, down from 544,000develop more than $1bn worth of logistics TEU to 269,000 TEU. During the same period,facilities in Japan. The deal with the Goodman Zim removed 10,700 TEU from its fleet amid aGroup, which owns, develops and manages real drive to return to financial health.estate including warehouses, business parksand offices globally, sees the establishment of CSAV accumulated net losses of $1.5bn sincethe Goodman Japan Development Partnership the beginning of 2011, while Zims losses have(GJDP). The agreement is a 50/50 venture hit $559mn in the same period.between Goodman and the Abu DhabiInvestment Council. A combined $500mn of Freight Forwarding and Logistics Groupequity has been allocated to the partnership, Ventures Further into Supply Chainwith its leverage capability allowing for an initial Managementinvestment target in excess of $1bn. GJDP saidit has a strategy to develop modern logistics Freight forwarding and logistics companyfacilities in the major logistics markets of Japan. Uniserve announced that it has acquired financeJapan’s distribution centers are drawing and management consultants Portall Solutionsinvestors as the market rebounds from record- Ltd.- A 4PL company. Uniserve says thehigh vacancies about two years ago. acquisition signals its intention to redefine supply chain management services and to raiseMyanmar gets loan for highway current standards of industry capability with aconstruction new concept of Global Trade Management (GTM). According to the statement, theIndia has extended a $ 500mn concessional acquisition of Portall will give Universe aLine of Credit to the Government of Myanmar. significant addition to its range of capabilities.The Line of Credit is at an interest rate of1.75% per annum and repayment period of 15years inclusive of 5 years moratorium. "TheLine of Credit will be utilised in theinfrastructure development projects, includingin the fields of Agriculture and Irrigation, RailTransportation and Power in Myanmar. EXIMBank of India releases and monitors fundssanctioned under Government Lines of Credit.Top 20 shipping lines add 844,000 TEU tofleet over 12-month periodThe top 20 ocean liners had added over the last12 months 844,000 TEU in capacity to theirfleet amid a loss-making period. The twolargest carriers, Maersk and MSC, account forResearch4India 9
  • 10. Logistics TrackStock Market UpdateShare Price PerformanceAs on 14th September 2012 Market Cap Price Percentage Change (%) (In ` mn) (In `) 1W 1M 3M 6M 12MContainer Corporation of India 125,212 963.30 3.1% 1.4% 12.0% 10.2% 5.3%Blue Dart 40,415 1,703.25 -0.7% -15.6% -13.8% -12.5% 2.5%Great Eastern Shipping 37,943 249.15 -0.2% -12.6% -2.8% 13.9% 22.8%Essar Ports Ltd. 36,991 86.45 0.6% -10.8% -2.8% 16.5% 27.5%Shipping Corporation of India 24,874 53.40 4.9% -1.5% 0.7% -25.1% -37.2%Allcargo Logistics 16,617 130.35 -5.0% -5.4% 8.5% -8.6% -12.6%Gateway Distriparks 15,378 141.85 4.1% 3.1% 5.6% -6.1% 3.0%Arshiya International 7,578 129.80 12.4% 3.9% 4.5% -13.7% 1.0%Mercator Ltd. 5,265 21.50 -6.2% 0.5% 12.8% -34.4% -22.6%Transport Corporation of India 4,340 59.60 -0.8% -5.9% -0.7% -8.4% -29.1%Aegis Logistics 4,248 127.20 8.4% 8.4% 0.6% -21.4% -33.9%Sical Logistics 3,684 66.25 -1.2% -1.2% -2.7% -1.9% -8.2%Gati 3,199 36.95 -2.3% -3.2% 9.5% 7.3% -33.4%SEAMEC Ltd. 2,917 86.05 2.6% -2.1% 4.9% -9.9% -15.8%Aqua Logistics 2,985 9.95 -2.5% -2.0% 14.4% -32.1% -28.9%Varun Shipping 2,168 14.45 0.7% -4.0% -4.3% -23.5% -29.0%NSE Nifty - 5,610.00 4.4% 3.7% 10.3% 2.1% 11.3%BSE Sensex - 18,021.16 3.9% 2.2% 6.8% 1.2% 9.4%ET Logistics Index - 16,573.49 2.9% -1.2% 6.0% 1.6% -0.4%ET Shipping Index - 6,307.42 0.6% -1.4% -3.0% -9.4% -18.0%Baltic Dry Index (BDIY:IND) - 662.00 -1.0% -11.7% -27.4% -22.6% -65.6%Baltic Dry IndexRoad Freight Index Source: Baltic ExchangeU Source: Transport Corporation of IndiaResearch4India 10
  • 11. Logistics TrackFinancial BenchmarkingQuarterly Results – Q1 FY ’13, ending 30th June, 2012 Company Revenue EBITDA PAT Margins Q1 FY’13 Q1 FY’12 Q1 FY’13 YoY Q1 FY’12 Q1 FY’13 YoY Q1 FY’12 Q1 FY’13 YoY EBITDA NPMAegis Logistics 8,304 14,843 79% 274 (244) - 161 48 -70% - 0%Shipping Corp. of Ind. 9,727 12,200 25% 1,181 1,624 38% (59) (549) - - -Mercator Lines 7,992 10,952 37% 1,513 1,750 16% 147 171 16% 16% 2%CONCOR 9,490 10,369 9% 2,597 2,671 3% 2,342 2,451 5% 26% 24%Allcargo 8,541 9,752 14% 1,022 1,135 11% 664 556 -16% 12% 6%GE Shipping 7,280 8,070 11% 3,183 2,879 -10% 1,626 1,810 11% 36% 22%TCI 4,159 4,574 10% 344 370 8% 134 136 1% 8% 3%Blue Dart 3,721 4,317 16% 510 574 13% 340 406 19% 13% 9%Arshiya 2,226 3,418 54% 539 934 73% 236 346 47% 27% 10%Gateway Distri. 1,978 2,320 17% 635 660 4% 334 352 6% 28% 15%Sical Logistics 2,058 1,753 -15% 202 220 - 21 14 -34% 13% 1%Varun Shipping 1,327 1,538 16% 345 937 172% (353) 1,452 - 61% -Patel Integrated 1,130 1,191 5% 47 45 -3% 12 9 -25% 4% 1%Aqua Logistics 1,107 773 -30% 91 63 -31% 42 15 -64% 8% -SEAMEC Ltd 460 737 60% 127 138 - 86 137 - - -Shreyas Shipping 319 462 45% 21 70 240% (14) 43 - 15% 9%Gati 2,253 159 -93% 241 (62) - 38 638 1593% - 402%Essar Ports 70 84 20% 33 12 -63% (213) (179) - 14% - Figures in Rs.`mnAnnual Results - FY‘12 Company Revenue EBITDA PAT Margins FY’12 FY11 FY’12 YoY FY11 FY’12 YoY FY11 FY’12 YoY EBITDA NPMAegis Logistics 18,129 44,725 147% 833 49 -94% 467 197 -58% 0.1% 0.4%Shipping Corp. of Ind. 35,434 43,086 22% 7,098 4,644 -35% 5,674 (4,282) - 11% -CONCOR 38,266 40,609 6% 10,226 10,237 0% 8,301 8,779 6% 25% 22%Mercator Lines 28,289 36,999 31% 6,385 5,829 -9% 468 206 -56% 16% 1%GE Shipping 25,580 29,555 16% 9,945 10,804 9% 4,687 3,166 -32% 37% 11%TCI 18,527 19,553 6% 1,400 1,580 13% 501 595 19% 8% 3%Blue Dart 11,507 14,954 30% 1,556 1,799 16% 947 1,242 31% 12% 8%Gati 9,330 12,093 30% 870 988 14% 95 141 48% 8% 1%Essar Ports 19,408 11,088 -43% 7,667 8,910 16% 702 639 -9% 80% 6%Arshiya 8,215 10,547 28% 1,580 2,701 71% 820 1,176 43% 26% 11%Allcargo 6,998 8,263 18% 1,679 2,481 48% 1,211 1,513 25% 30% 18%Gateway Distri. 6,034 8,235 36% 1,640 2,504 53% 968 1,320 36% 30% 16%Sical Logistics 5,384 5,015 -7% (45) 341 - 108 133 24% - -Patel Integrated 4,284 4,524 6% 139 166 20% 32 29 -8% 4% 1%Aqua Logistics 5,165 3,683 -29% 497 233 -53% 288 83 -71% 6% 2%Varun Shipping 8,368 3,645 -56% 3,670 888 -76% 147 92 -38% 24% 3%Shreyas Shipping 1,904 2,708 42% 308 245 -21% 183 56 -69% 9% 2%SEAMEC Ltd 1,024 1,818 78% (551) 94 - (672) (132) - - - Figures in Rs.`mnResearch4India 11
  • 12. Logistics TrackFour-S Services Pvt LtdFounded in 2002, Four-S has a strong & successful track record of genuine, accurate andobjective advice to top Indian & global companies & PE Firms. Four-S has already provensuccess in corporate finance, strategy consulting, fund-raising, investment banking andinvestor relations mandates with 100+ corporates and large PE funds.Four-S, trusted advisor to top Indian & Global CosOffering comprehensive bouquet of services to SMEs, Corporates and PE FundsResearch4India 12
  • 13. Logistics TrackDisclaimerThe information contained herein has been obtained from sources believed to be reliable but is not necessarily completeand its accuracy cannot be guaranteed. No representation, warranty, guarantee or undertaking, express or implied, ismade as to the fairness, accuracy or completeness of any information, projections or opinions contained in this documentor upon which any such projections or opinions have been based. Four-S Services Pvt. Ltd. will not accept any liabilitywhatsoever, with respect to the use of this document or its contents. This document has been distributed for informationpurposes only and does not constitute or form part of any offer or solicitation of any offer to buy or sell any securities.This document shall not form the basis of and should not be relied upon in connection with any contract or commitmentwhatsoever. This document is not to be reported or copied or made available to others.The company may from time to time solicit from, or perform consulting or other services for, any company mentioned inthis document.For further details/clarifications please contact:Seema Shukla Ajay JindalSeema@four-s.com Ajay.jindal@four-s.comGurgaon Office: Mumbai Office:214, Udyog Vihar, Phase I, 101,Nirman Kendra, Opposite Star TV,Gurgaon – 122016 Off Dr E Moses Road, Mahalaxmi,Tel: +91-124-4251442 Mumbai – 400001 Tel: +91-22-42153659Research4India 13