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  • 1. AbstractLogistics services market India is on a growth trajectory owing to rapid globalization and100% FDI allowance. Logistics services broadly encompass courier services, freight forwarding,third party logistics and reverse logistics. Growth in international trade is providing hugeimpetus to the demand for the logistics services. Growing competition in retail sector transcendsneed of reverse logistics to handle returns and store up gradation. Third party logistics providersneed to customize their services and charge competitive rates to benefit from retail boom in India.The report begins with an introduction section, classifying the logistics sector intotransportation, storage and logistics services, Government Initiatives and regulations, futureprospective of the industry. The next section briefly illustrates the evolution of the logisticsindustry in India, literature review reports.Market overview section provides a brief snapshot of the logistics services market in India. Tobegin with, the share of logistics services in overall logistics market is shown, followed by themarket size and growth in logistics services market in India.Company profile section briefly explains about the top five companies in logisticsindustry in India namely Container Corporation of India, Arshiya international, Aegis logistics,Aqua logistics, Allcargo logistics SWOT analysis of each company. SWOT analysis helps tofind out the weak points of the companies and to find out the way to overcome this problem.The Competitive Landscape section profiles the major players in logistics servicesmarket in India in details within the report which enables readers to get a clear picture of thecurrent competitive scenario. The section lists the basic details of the players such as corporateinformation, business highlights and key members. The section also features financial analysis ofkey vendors which in turn provides us with the financial health of players.GE matrix used for analyzing the market attractiveness and business strategic Unit. Inwhich to give strategic decisions for attains the market position.The report concludes with a strategic recommendations section that provides suggestions andstrategies for the existing and new players in the logistics services market in India.
  • 2. ACKNOWLEDGEMENTIn a special way, I submit my whole hearted thanks to my parents for theircontinuous motivation and the trust on me. It is my pleasure to reveal my thanksto all my friends who offered me a great support for collecting the data from therespondents.I am extremely thankful and indebted to Dr. S.SARAVANASANKER,VICE-CHANCELLOR, KALASALINGAM UNIVERSITY who has given methe prestigious opportunity to do my project successfully.I am extremely thankful and indebted to Dr. M.SATHIVEL RANI MBA,PH.D. HEAD OF THE DEPARTMENT, BUSINESS ADMINISTRATION,KALASALINGAM UNIVERSITY who has given me the prestigiousopportunity to do my project successfully.I acknowledge with a sense of gratitude of sincere thanks to my ProjectGuide Ms .M.SELVARANI, Assistant professor of the Department of BusinessAdministration, Kalasalingam University who provided a great Opportunityfor doing this project. Who enlightened me ‘What research is & how it canbe performed’, His active motivation provided me an invaluable guidance &Encouragement towards Research that made me to perform this project.I hearty thank Mr. SETHURAMAN “AKARA RESEARCH &TECHNOLOGY CHENNAI” for showing tremendous patience and giving fullfreedom in guiding me towards the successful completion of my project.In a special way, I submit my grateful thanks to my parents who providedme all the supports throughout the period of project development. I also rendermy deep thanks to my friends and well wishers who had been a source ofencouragement throughout the period of training.
  • 3. Last but not least my prayers and thanks to the “almighty” without whom thework would not have materialized.I also extend my thanks to all the other faculty members for extendingtheir helping hands to complete this project effectively. Finally, I would like toprofoundly thank all the respondents who helped me in collecting the necessaryinformation for completing this project.Mr.T.AMULRAJ
  • 4. CHAPTER-I1. LOGISTICS INDUSTRY IN INDIA1.1.1 INTRODUCTIONIndia has become the prime destination for logistics service providers all over the world.The demand for logistics services in India has been largely driven by the remarkable growth ofthe economy. The growth is being projected at 9-10 per cent in next few years, with the CAGR(compounded annual growth rate) expected to grow at a rate of 7-8 per cent. This growth isexpected to gain greater momentum due to the exponential growth of the Indian economy. Indiais also experiencing a big retail boom as the buying capacity of the middle and upper middlesegment of the population has scaled new heights. Many large multinationals from the retailindustry are planning to set up operation in India and large local retailers are also planning toexpand their operations. But with the infrastructure largely under-developed and incapable ofcatering to a growing economy, logistics management in India becomes too complex. The poorcondition of infrastructure directly translates to higher turnover, pushing up the operating costsand reducing efficiency. There are other problems such as complex regulatory compliance andlimited adoption and utilization of technology, which has resulted in increased paperwork andinability to communicate effectively with customers.In spite of dismal infrastructural scenario, the hopes of the logistics sector are kept up by thevarious upcoming infrastructural projects like logistics parks and hubs and other initiatives bypublic and private sector. The future of the logistics sector depends not only on the continueddevelopment of infrastructure but also on the capability of the service providers in adaptingthemselves and making optimal utilization of technology.India is emerging as one of the world’s leading consumer market with the raise of middle incomegroup. Estimated at US$991 billion in 2020, Total consumption expenditure is expected togrow to nearly US$ 3.6 trillion in 2020. Food, housing & consumer durable and transport &communication are expected to be the top 3 categories, accounting for 65% of consumption in2020. The FMCG sector alone is expected to grow at a base rate of 12 % annually to become anINR 4000 billion industry by 2020. The logistics sector is expected to play an important role in
  • 5. accessing this emerging market and enabling this growth.1.1.2 INDUSTRY TRENDSTransportation: Container cargo represents only about 30% (by value) of Indias external trade-much lower when compared with the global containerized cargo average of 70-75%. At a growthrate of 12%, Indias container cargo traffic is estimated to reach 15 million TEUs by FY16E fromabout 7.5 million TEUs now (at 12 major ports). In comparison, China has created capacity atits ports to handle more than 100 million TEUs a year. Out of the 15 mn TEUs of total containertraffic, we estimate Exim rail container traffic to be 5 mn TEUs by FY16E. This would be a hugeopportunity and will significantly benefit container rail operators.Rising investment in the rail and port spaces also fuels growth in allied industries like wagonmanufacturing, port handling equipment, railway electrification systems and constructioncompanies.To reduce the transportation cost and for quicker movement of cargo Multimodal transportoperation is introduced (MTO). MTO helps exporters with less documentation for instance singledocument for all modes of transport.Third Party Logistics (3PL): Outsourcing is everywhere. Logistics industry is no exception.Logistics services like transportation, warehousing, cross docking, Inventory management,packaging and freight forwarding all are part of third party logistic services. Companies in Indiacurrently outsource an estimated of 52% of logistics. And 3PL industry is estimated to be US$1.5bn in FY14. 3PL represents only 1% of logistics cost emphasis its significance in the industry.Future is no doubt lying in outsourcing. As the growth in the 3PL market is expected to be inthe range of 25-30% CAGR over FY11-14E. As of now, the 3PL activity is limited to only fewindustries like automotive, IT hardware, telecom and infrastructure equipment.The organised 3PL market in India can be categorised into three major segments – publicsector, private sector and foreign entrants. Some of the major players in each category are: TVSlogistics, DIESL (TATA), Panalpina, TCI, Gati, Allcargo, V Trans, Total, VRL and Reliance etc.
  • 6. Private Participation: The industry is becoming more competent with the entry of globalgiants like Gazeley Broekmen (Wal-Marts logistics partner), CH Robinson and Kerry logisticsand large Indian corporate houses like Tata, Reliance and Bharti group. A series of mergersand acquisition like DHL acquired Blue Dart, TNT acquired Speedage Express Cargo Serviceand Fedex bought over Pafex, are also leading to consolidation industry at various levels andsegments. Many of these companies are planning to broaden their areas of operation and are alsoplanning to develop their own logistic parks across the country. If the trend continues as per theestimates, the market share of the organized logistics players is expected to double from 6% in2013 to approx. 12% by 2020.Express logistics: Organised players have monopoly over the express logistics industry. 65%of express business is in the hands of organized players, while semi-organised and unorganisedplayers accounts for 25% and the remaining 10% of the market by EMS Speed Post. Butaltogether different picture can be witnessed in the domestic segment. In domestic front,unorganised players hold 41% of the market share based on price advantage. While organisedplayers accounts for 45% and EMS Speed Post the remaining 14%.Warehouses: Recently, warehouses have become key growth drivers in the logistics industry.Apart from conventional storing services, warehouses now providing value-added services likeconsolidation and breaking up of cargo, packaging, labelling, bar coding and reverse logisticsetc. warehousing and related activities account for approx. 20% of the total logistics industry.Most of the warehousing space in India lies with unorganised players in domestic front, whichis causing wide supply and demand gap in storage space. According to KPMG, an additional120million square feet of warehousing space is needed by 2013 to bridge this gap.Currently, the organised warehousing industry in India has a capacity of approx. 80millionmetric tonnes and is growing at 35 to 40 per cent per annum. An investment of approximatelyUS$ 500million is being planned by various logistics companies for the development of about45million square feet of warehouse space by 2013.Many players in this segment such as MultiModal Logistics Park, Mega Food Parks and Free Trade Warehousing Zones have planned nextgeneration storage models.
  • 7. Logistic parks: About 110 logistics parks spread over approximately 3,500 acres at an estimatedcost of $1 bn are expected to be operational and an estimated 45 mn ft2 of warehousing spacewith an investment of $ 500 mn is expected to be developed by various logistics companies by2020.Majority of these logistics parks are planned in close proximity to state capitals. However,availability of large land parcels at relatively low cost, connectivity to multiple markets acrossstates and industrial clusters has led to the emergence of some tier-2 and tier-3 cities as favoureddestinations for the development of logistics parks and warehouses.1.1.3 Government Initiatives and regulationsInitiatives:To emphasis the significance of transportation in logistics industry and to increase thecompetence in the sector government introduced private participation, especially in port sector.The major initiative in transport infrastructure is introduction of National Maritime DevelopmentProgram (NMDP) with an investment of Rs 568bn. NMDP would be addressing the challengesof the growing international traffic demand of the country along with developing the portfacilities at par with world standards. While liberalizing the railway services, government openedthe doors of container business to the private parties. A total of 15 players immediately enteredthe market.FDI regulations• In general 100% FDI under the automatic route is permitted for all logistic services• FDI up to 100% subject to FIPB approval is permitted for courier services.• FDI up to 49% under the automatic route is permitted for air transport services, includingair cargo services.• 100% FDI is permitted in Ports and Harbours under automatic route• 100% FDI is permitted under the automatic route for storage and warehousing includingwarehousing of agricultural products with cold storage.
  • 8. • 100% FDI is permitted in transport and transport support services through automaticroute.1.1.4 Indian Logistics Industry- Future TrendsThere have been several key indicators to the future trend in the Indian logisticssector. The demand for logistics services has been largely driven by the remarkablegrowth of the Indian economy. Logistics spend in India is estimated to be around 13% ofthe GDP, which is comparatively higher than other developed countries.The air transport sector’s contribution has been around 0.2 per cent of the country’sGDP, while the transport sector’s contribution to the GDP has been growing over the lastcouple of years. India’s air cargo is predicted to grow at over CAGR of 11.5 per cent inthe next few years.The contribution of the marine transport sector has also been around 0.2% to thecountry’s GDP. The sector’s contribution to the GDP has been increasing mostly becauseof the growing economic developments in the country. The role of the shipping industryin the growth of Indian economy has been very significant. Major ports in India togetherhave handled around 500 million tonnes of cargo in the past two years and this figure isgrowing significantly.The Indian railways has realised the necessity to improve the infrastructureprovide better service. The plan to develop Logistics Parks or hubs has the potential tostreamline and optimize the supply chain and reduce the costs. Currently around 80% ofthe goods in India move by road, the railways has to essentially devise plans to divert thistraffic to the rail.India’s logistics sector attracted huge investments, leaving behind some of themajor sectors including aviation, metals, and consumer durables. The growths in theretail and manufacturing industry, commodity markets and development of SEZs have
  • 9. been key factors in the growth of Indian logistics industry. Recent studies have indicatedthat the Indian logistics industry is expected to grow annually at the rate of 15 to 20%. Anumber of infrastructural projects involving warehouse and logistics parks are beingundertaken are expected to be operational in the next 2-3 years.The setting up special economic zones (SEZs) has led to increased logisticsactivities around them. Several logistics parks have come up at locations like Mumbai,Kolkata, Chennai and Hyderabad because of their excellent port, rail, and roadconnectivity and are witnessing significant investment in infrastructure. Many of thelarge logistics players are in the process of setting up warehouses, container freightstations (CFS), inland container depots(ICD), logistics parks, distribution centers andother facilities to leverage the abundant opportunities. Increase in foreign trade isexpected to further accelerate the demand for logistics services.The future of the Industry is very bright and is sure to witness exponential growthin the coming years. The increased participation of both public and private sector iscrucial for developing logistics and improving supply chain management. Not only dothe logistics companies need to create efficient business to thrive in the logistics sector,but they also need to explore ways for investing energy, costs and time to grow a stronglogistics system
  • 10. 1.2 OBJECTIVES• To analyze the company performance of selected logistics companies• To find the strength, weakness, opportunities, threads of the selected logistics companiesand industry• To compare the financial performance of selected companies to decide its position in theindustry• To study the company strength and attractive of the industry by using GE matrix.1.3 SCOPE OF THE REPORT- The report covers the overview of Indian logistics industry, market size,cost components, overview of air transport system in India,- Air cargo traffic trends, growth drivers, demand- supply scenario,technology and innovation, and future outlook of the global as well as Indianair cargo industry.- In addition, the report also includes profiles of four major players in thesector.- Detailed analysis of Component & Cost structure of Global Logistics andIndian logistics market. This report talks about growth drivers and theireffected factors.1.4 PROBLEM OF THE STUDY1. The problems of getting data on the market share and market rate.2. This study takes only the domestic players in India. It ignores foreign players like DHL,UPS, TNT etc.3. This study considers top five companies in India.4. There is no clear definition of what constitutes a market.5. A high market share need not necessarily lead to profitability all the time.6. Low share businesses can be profitable too.
  • 11. Chapter- II2. Literature Survey2.1.1 LogisticsLogistics is the management of the flow of resources between the point of origin and the point ofdestination in order to meet some requirements, for example, of customers or corporations. Theresources managed in logistics can Include physical items, such as food, materials, equipment,liquids, and staff, as well as abstract items, such as Information, particles, and energy. Thelogistics of physical items usually involves the integration of information flow, materialhandling, production, packaging, inventory, transportation, warehousing, and often security. Thecomplexity of logistics can be modeled, analyzed, visualized, and optimized by dedicatedsimulation software. The minimization of the use of resources and time are common motives.2.1.2 Origins and definitionThe term logistics comes from the late 19th century: from French logistique, fromloger to lodge Logistics is considered to have originated in the militarys need to supply itselfwith arms, ammunition, and rations as it moved from a base to a forward position. In the ancientGreek, Roman, and Byzantine Empires, military officers with the title Logistikas wereresponsible for financial and supply distribution matters.The Oxford English Dictionary defines logistics as "the branch of military sciencerelating to procuring, maintaining and transporting material, personnel and facilities."However, the New Oxford American Dictionary defines logistics as "the detailedcoordination of a complex operation involving many people, facilities, or supplies", and theOxford Dictionary online defines it as "the detailed organization and implementation of acomplex operation".Another dictionary definition is "the time-related positioning of resources." As such,logistics is commonly seen as a branch of engineering that creates "people systems" ratherthan "machine systems".According to the Council of Logistics Management, logistics includes the integratedplanning, control, realization, and monitoring of all internal and network-wide material, part, and
  • 12. product flow, including the necessary information flow, in industrial and trading companiesalong the complete value-added chain (and product life cycle) for the purpose of conforming tocustomer requirements.Logistics is the process of planning, implementing, and controlling the effective andefficient flow of goods and services from the point of origin to the point of consumption.Main logistics targetsLogistics is one of the main functions within a company. The main targets of logisticscan be divided into performance-related and cost-related targets. A few examples are high duedate reliability, short delivery times, low inventory level, and high utilization of capacity. Whendecisions are made, there is a trade-off between targets.Logistics viewpointsInbound logistics is one of the primary processes of logistics, concentrating onpurchasing and arranging the inbound movement of materials, parts, and/or finished inventoryfrom suppliers to manufacturing or assembly plants, warehouses, or retail stores. Outboundlogistics is the process related to the storage and movement of the final product and the relatedinformation flows from the end of the production line to the end user.Logistics fieldsGiven the services performed by logisticians, the main fields of logistics can be brokendown as follows:• Procurement logistics• Production logistics• Distribution logistics• After sales logistics• Disposal logistics• Reverse logistics• Global logistics• Domestics logistics
  • 13. Procurement logistics consists of activities such as market research, requirements planning,make-or-buy decisions, supplier management, ordering, and order controlling. The targets inprocurement logistics might be contradictory: maximizing efficiency by concentrating on corecompetences, outsourcing while maintaining the autonomy of the company, or minimizingprocurement costs while maximizing security within the supply process.Production logistics connects procurement to distribution logistics. Its main function isto use available production capacities to produce the products needed in distribution logistics.Production logistics activities are related to organizational concepts, layout planning, productionplanning, and control.Distribution logistics has, as main tasks, the delivery of the finished products to thecustomer. It consists of orderprocessing, warehousing, and transportation. Distribution logistics is necessary because the time,place, and quantityof production differs with the time, place, and quantity of consumption.Disposal logistics has as its main function to reduce logistics cost(s) and enhance service(s)related to the disposal of waste produced during the operation of a business.Reverse logistics denotes all those operations related to the reuse of products and materials.The reverse logistics process includes the management and the sale of surpluses, as well asproducts being returned to vendors from buyers.Business logisticsOne definition of business logistics speaks of "having the right item in the right quantityat the right time at the right place for the right price in the right condition to the right customer".As the science of process, business logistics incorporates all industry sectors. Logistics workaims to manage the fruition of project life cycles, supply chains, and resultant efficiencies.Logistics as a business concept evolved in the 1950s due to the increasing complexity of
  • 14. supplying businesses with materials and shipping out products in an increasingly globalizedsupply chain, leading to a call for experts called "supply chain logisticians". In business, logisticsmay have either an internal focus (inbound logistics) or an external focus (outbound logistics),covering the flow and storage of materials from point of origin to point of consumption (seesupply-chain management). The main functions of a qualified logistician include inventorymanagement, purchasing, transportation, warehousing, consultation, and the organizing andplanning of these activities. Logisticians combine a professional knowledge of each of thesefunctions to coordinate resources in an organization. There are two fundamentally differentforms of logistics: one optimizes a steady flow of material through a network of transport linksand storage nodes, while the other coordinates a sequence of resources to carry out some project.Production logisticsThe term production logistics describes logistic processes within an industry. Productionlogistics aims to ensure that each machine and workstation receives the right product in the rightquantity and quality at the right time. The concern is not the transportation itself, but tostreamline and control the flow through value-adding processes and to eliminate non–value-adding processes. Production logistics can operate in existing as well as new plants.Manufacturing in an existing plant is a constantly changing process. Machines areexchanged and new ones added, which gives the opportunity to improve the production logisticssystem accordingly. Production logistics provides the means to achieve customer response andcapital efficiency. Production logistics becomes more important with decreasing batch sizes. Inmany industries (e.g., mobile phones), the short-term goal is a batch size of one, allowing even asingle customers demand to be fulfilled efficiently.Track and tracing, which is an essential part of production logistics due to product safetyand reliability issues, is also gaining importance, especially in the automotive and medicalindustries.
  • 15. 2.2 Review of literatureThe Indian economy has been growing at an average rate of more than 8 per cent over thelast four years (Srinivas, 2006) putting enormous demands on its productive infrastructure.Whether it is the physical infrastructure of road, ports, water, power etc. or the digitalinfrastructure of broadband networks, telecommunication etc. or the service infrastructure oflogistics – all are being stretched to perform beyond their capabilities. Interestingly, this isleading to an emergence of innovative practices to allow business and public service to operateat a higher growth rate in an environment where the support systems are getting augmentedconcurrently. In this paper, we present the status of the evolving logistics sector in India,innovations therein through interesting business models and the challenges that it faces in yearsto come.Broadly speaking, the Indian logistics sector, as elsewhere, comprises the entire inboundand outbound segments of the manufacturing and service supply chains. Of late, the logisticsinfrastructure has received lot of attention both from business and industry as well as policymakers. However, the role of managing this infrastructure (or the logistics management regimen)to effectively compete has been slightly under-emphasized. Inadequate logistics infrastructurehas an effect of creating bottlenecks in the growth of an economy, the logistics managementregimen has the capability of overcoming the disadvantages of the infrastructure in the short runwhile providing cutting edge competitiveness in the long term. It is here that exist severalchallenges as well as opportunities for the Indian economy. There are several models that seemto be emerging based on the critical needs of the Indian economy that can stand as viable modelsfor other global economies as well.Chandra and Sastry (2004) have pointed towards two key areas that require attention inmanaging the logistics chains across the Indian business sectors – cost and reliable value addservices. Logistics costs (i.e., inventory holding, transportation, warehousing, packaging, lossesand related administration costs) have been estimated at 13-14 per cent of Indian GDP which ishigher than the 8 per cent of USA’s and lower than the 21 per cent of China’s GDP (Sanyal,2006a). Service reliability of the logistics industry in emerging markets, like India, has beenreferred to as slow and requiring high engagement time of the customers, thereby, incurring highindirect variable costs (Dobberstein et. al, 2005).
  • 16. However, the Indian logistics story is one with islands of excellence though there hasbeen a general improvement on almost all parameters. It is this aspect that we explore further inthis paper. The paper is organized as follows: the next section gives a brief introduction of someof the peculiarities of the Indian logistics sector.
  • 17. Chapter III3.Research MethodologyResearch methodology is a way to systematically solve the research problem.The research methodology using for find out the solution of the research problemis analytical research methodology and some extend descriptive researchmethodology.Basis of selection of companiesThe companies are selected on the basis of Earning per Share of top fivecompanies in logistics industry. This is listed in BSE, NSE Index in India.List of selected companies for study♦ Container Corporation of India♦ Allcargo Logistics♦ Aqua Logistics♦ Aegis Logistics♦ Arshiya InternationalPeriod of studyThe period of the study is five years that is 2008 to 2012 because ofunderstand the growth of the industry to find out competitive position in market.Nature of dataThis study takes secondary data for the purpose of analysis of industry,SWOT analysis, and competitive position.Sources of dataü Company website, RBI website,, National stockExchange, Bombay Stock Exchange, CII, World Bank data.
  • 18. Secondary dataü Balance sheet of companiesü Profit and loss accountsü Directors reportsü News papersü NSE, BSE dataTools and TechniquesThese are the most popular tools of industry analysis. They focus onearnings, growth and value of the companies in the market.ü SWOTü BCG matrixü General Electrical Matrixü Financial ratioü Graphs and tables
  • 19. 4.1. Container Corporation of India Limited (CONCOR)Container Corporation of India Limited (CONCOR) was set up in March of the year1988 and commenced operation from November of the year 1989 taking over the existingnetwork of 7 Inland Container Depots (ICDs) from the Indian Railways to profitably satisfy thecustomers needs for high- quality, cost-effective logistics services. From its humble beginning,it is now an undisputed market leader having the largest network of 57 ICDs/CFSs in Indiaoffering scheduled and on demand rapid rail and road services between the hinderland and ports,and between major metros.In addition to providing inland transport by rail for containers, it has also expanded tocover management of Ports, air cargo complexes and establishing cold-chain. It has and willcontinue to play the role of promoting containerization of India by virtue of its modern railwagon fleet, customer friendly commercial practices and extensively used InformationTechnology.The company developed multimodal logistics support for Indias International andDomestic containerization and trade. CONCORs core business is characterised by three distinctactivities, that of• Carrier,• Terminal operator• Warehouse operatorCONCOR had been certified to ISO/IEC 27001: 2005 standard for establishing andmaintaining Information Security Management System (ISMS) for its IT functionality.CONCOR had commissioned seven container transfer/handling facilities during the year 1990.In addition to three ICDs at Ahmedabad, Pune & Hyderabad, two full-fledged Container FreightStations (CFSs) were commissioned at Moradabad and Panipat as cargo consolidation andclearance centres with linkage to the OCD at New Delhi.The Company had commissioned Port Side Container Terminal (PSCT) at Todiarpet inMarch of the year 1991, situated in the vicinity of Chennai Harbor. A similar terminal wascommissioned at Wadi Bunder in close proximity of Mumbai Port in April of the year 1991. In1992-93, the company achieved the first ever movement of refrigerated cargo containers by rail.CONCOR had introduced this service to give a boost to export frozen and chilledproducts. CONCOR commissioned Inland Containers Depots at Tughalakabad in Delhi andWhitefield in Bangalore during the year 1993. In addition, the first phase of expansion andupgradation of ICD a Tondiarpet in Chennai was commissioned and completed during the sameperiod. During the year 1994, the company made a small footstep as a Multi modal transportoperator and also as a consultancy organization for multi-modalism.
  • 20. The Government of India disinvested 20% of its equity shares in the company. A newCFS was commissioned in 1995 at New Mulund (Mumbai) and a new export warehouse of thecompany also started at ICD, Sabarmati. In the same year CONCOR obtained approval fromWorld Bank to increase the quantity of wagons to be procured in the second Tranche from 750 to1500. Scheduled reefer services between ICD Thughlakabad during the year 1996 and also in thesame period the Muboni Port was introduced.The new ICDs were commissioned at Agra in November of the year 1996, linked withports directly by road ICD Tughlakabad by rail and another ICDs were commissioned at Nagpurin January of the year1997, a rail linked with the twin ports of Mumbai and SNPT. In January ofthe year 1997, the CONTRACK services were launched by the company offering movement ofpiecemeal domestic cargo in containers through specialized, scheduled and reliable container-railservices.Two new ICDs of the company were commissioned, one at Moradabad in February ofthe year 1998 and the other at Malanpur/Gwalior in June of the year 1998. Second bondedwarehouse was commissioned at ICD/Whitefield. The Company had launched a daily servicebetween Chennai port and Whitefield ICD, Bangalore in the year 1999. During the year 2000,CONCOR had fashioned a separate domestic division to give a major heighten to the companysgrowing interest in domestic container movement.The Company had introduced an express parcel service vans between Chennai andDelhi. Private sector warehousing company, Continental Warehousing Corporation had enteredinto a strategic alliance with CONCOR in the identical year 2000 for handling domestic cargo.The Company had launched a fixed-day fixed-time weekly freight service between Shalimar(Howrah)& Mumbai and Shalimar & Ahmedabad with transshipment at Nagpur during the year2001.CONCOR had introduced Asias biggest ICD at Dadri in the year 2003. In the same yearthe company made a tie up with Kolkata Port Trust to provide services to shippers to transportcontainers using sea rail-mode between Nepal and Kolkata Dock Systems (KDS). During theyear 2004, CONCOR inked pact with Transworld to set up CFS at Dadri, forged alliance withAPL for box freight station at Dadri complex and also inked pact with APEDA for movement ofperishable goods.A joint venture for Management and operations of Rail Container Terminal in Birgunj(Nepal) was also finalized in form of M/s Himalayan Terminals and its was commissionedduring July of the year 2004. During the year 2004-05, the company had commissioned fourRubber Tyred Gantry Cranes (RTGs), two at ICD/Dadri and other two at ICD/ Dandharikalan(Ludhiana). Gateway Terminal India (Pvt) Ltd, a joint venture company of Maersk and thecompany formed an arm for the construction of 3rd container terminal at JN Port, it wascommenced construction work during the year 2005-06.
  • 21. CONCOR & GDL had collectively signed agreement during the year 2005 for providingtrain services to transport EXIM container traffic. The Company had inked a MoU with BaxiGroup in the year 2006. During October of the year 2007, CONCOR develop an inland containerdepot (ICD) at Baddi in Himachal Pradesh to facilitate the exporters of the Baddi-Barotiwala-Nalagarh region. It will help industrialists of the region in saving the freight charges.The Company has diversified into back-end retail in January of the year 2008 and is inclose final negotiation with Bharti-Wal-Mart to procure and supply fruit to the retailer.CONCOR will add eight new rail-linked inland container depots (ICDs) with an investment ofRs 3.2 billion by the end of next fiscal. The Company will have 65 depots, up from 57 at present.The new depots were announced at Railway Budget 2008. The Company is expandingthe presence of the company in all the segments of the transport value chain in the Exim as wellas Domestic segment. Possibilities are to be explored for strategic alliances, both for optimalutilization of infrastructure as well as expansion into other segments of the value chain.
  • 22. 1.1.1 Reserve and Surplus Container Corporation of IndiaParticulars 2008 2009 2010 2011 2012Reserves 3118.93 3632.23 4206.42 4847.83 5476.45Table No 4.1.1Reserve and Surplus Container Corporation of IndiaChar No 4.1.1 Reserve and Surplus Container Corporation of IndiaInferenceThe above diagram explains about the general reserves of Container Corporation of Indiawhere as in the FY 2008 had Rs 3118.93Crs it was increased to Rs3632.23Crs in FY 2009. In theFY11 the company has Rs 4847.83Crs it was increased from15.25% in previous year. Finally inFY12 the company records 12.97% increased to Rs 5476.45Crs. Its shows that company havegood performance over the past five years. As an investor point of view, its performance is highcompare to other companies in this industry.2008 2009 2010 2011 20120.001000.002000.003000.004000.005000.006000.003118.933632.234206.424847.835476.45
  • 23. 1.1.2 Net Block of Container Corporation of IndiaParticulars 2008 2009 2010 2011 2012Net Block 1665.15 1925.59 2140.48 2306.98 2393.75Table No 4.1.2 Net Block of Container Corporation of IndiaChart No 4.1.2 Net Block of Container Corporation of IndiaInferenceThe above diagram denotes that net block of the company in which the company’s netblock continually increased over the past five years. In the FY12 the value of net block increasedto 76% to Rs 2393.75cr from Rs 1665.15Cr in FY08. They increase their containers, software,leased lands its covers vast area of operation allover the India.2008 2009 2010 2011 20120.00500.001000.001500.002000.002500.001665.151925.592140.482306.98 2393.75
  • 24. 1.1.3 Net Sales of Container Corporation of IndiaParticulars 2008 2009 2010 2011 2012Net Sales 3347.30 3417.16 3705.68 3828.12 4060.95Table No 4.1.3 Net Sales of Container Corporation of IndiaChart No 4.1.3 Net Sales of Container Corporation of IndiaInferenceThe above diagram explains about the net sales of the company it indicate the goodperformance over the years. In the FY08 sales stood at Rs3347.30Crs it was increased to 2% inFY09. In the FY11, net sales were Rs3828.12Crs it was increased from 3.30% in previous year2010. The company improves its operation its shows increased in sales to Rs 4060.95Crs i.e 6%increased.2008 2009 2010 2011 20120.00500.001000.001500.002000.002500.003000.003500.004000.004500.003347.3 3417.163705.683828.124060.95
  • 25. 1.1.4 Net Profit of Container Corporation of IndiaParticulars 2008 2009 2010 2011 2012Net Profit 752.21 791.20 786.69 875.95 877.88Table No 4.1.4 Net Profit Of Container Corporation of IndiaChart No 4.1.4 Net Profit Of Container Corporation of IndiaInferenceThe above diagram explains net profit increased over the years. In theFY2008 the company records Rs 752.21Crs. it was increased Rs 38.99Crs to stood at Rs791.20Crs in FR09. In the FY10 the Net Profit available for appropriations stands at786.69 Cr, which is marginally -0.57% below last years level. This marginal decline inProfit After Tax (PAT) is essentially due to slightly more than proportional increase inthe operating expenditure. In 2011 Net Profit available for appropriations stands at Rs875.95 Cr, which is 11.35% higher than FY2010. This increase in Profit After Tax (PAT)is essentially due to strict expenditure control and innovative practices adopted by theCompany. In FY12 net profit shoot at Rs 877.88Crs, which was 0.22% higher than FY11.2008 2009 2010 2011 2012752.21791.2 786.69 875.95 877.88
  • 26. 1.1.5 Earnings Per Share of Container Corporation of IndiaParticulars 2008 2009 2010 2011 2012Earnings Per Share 115.74 60.87 60.52 67.39 67.54Table No 4.1.5Earnings Per Share of Container Corporation of IndiaChart No 4.1.5Earnings Per Share of Container Corporation of IndiaInferenceThe above table explains that EPS records of past five years in the year 2008 the EPS stood atRs 115.74. but in the year 2009 the company issue bonus share to its shareholders so the equitymight be increased so that reasons the Earning Per Share to decline Rs 60.87. in the FY12 thecompany’s EPS was Rs 67.54
  • 27. 1.1.6 Current Ratio of Container Corporation of IndiaParticulars 2008 2009 2010 2011 2012Earnings Per Share 115.74 60.87 60.52 67.39 67.54Table No 4.1.6 Current Ratio of Container Corporation of IndiaChart No 4.1.6 Current Ratio of Container Corporation of IndiaInferenceCurrent Ratio provides a margin of safety to the creditors. In a sound business, a currentratio of 2:1 is considered an ideal one. But in this case, the current ratio explains that in the FY08& FY09 constant relation between current assets and current liability but in the FY10 increasedto 3.03:1 it indicate well liquidly position. Later in FY12 the level of inventories would beincreased it stood at 4.15:1 is an ideal one.
  • 28. 4.1.7 Financial Highlights of Container Corporation of India• In the FY09 the company issue 1:1 bonus share to its shareholders. 6,49,91,397 equityshares issued as fully paid up Bonus Shares by Capitalizing General Reserves. The totalshare capital stood at Rs.129.98Crs in 2009. Then it was remain same up to currentfinancial year.• The company had strong resources and surplus because this is has more operationcompare to other companies it generate more revenue in past five years. The companyhad Rs.3118.93Crs in 2008 it was increased to Rs.3632.23Crs in 2009. Finally in theFY12 its was increased to 75% stood at Rs.5476.45Crs• The net worth of the CONCOR could be increased past five years. Now it stands at Rs5606.43Crs. it was increased 12.6% in previous year• Net Block of the company continuously increased due to the company had moreleased land, purchase more plant and machinery now stood at Rs.2177Crs, they spentRs33.16Crs for buying containers now the value of the container stood at Rs124.55Crs• The company’s investment could be increased over the years because in the FY12 thecompany invest about Rs.50Crs IRFC Secured, Tax Free, Redeemable, Non-convertible,Non-Cumulative Railway Bonds in the nature of promissory notes-79th Series of1,00,000/- each now the total investment amount stood at Rs 293Crs in FY12• The company follows just in time inventory. Stores and spare parts are valued at cost onweighted average basis so the value of the inventory now stands at Rs 8Crs in FY12• The sundry debtors were slightly increased over the years. In FY08 it was Rs 13.73Crswhich increased to Rs 19.59Crs in FY12• CONCORE Bank Deposits with maturity upto 12 months Rs 2540.82Crs in FY12 so thatreasons the company’s current ratio was increased• The sales of the company was increased over the years due to company covers vast areafor its operations in FY12 the company records Rs 4060Cr it was higher in these industry• The company earns more other income by way of getting more interest and dividendfor its investments. In FY12 the company get Rs 316Cr as additional income which washigher than Rs 143Crs in previous year.• Hence the total income of the company could be increased in FY12 to stood at Rs4377.49Crs• Operating profit of FY2008 was Rs890.73Crs it was increased to Rs 1002.69Cr in FY’11.In FY12 the operating profit stood at Rs 1023.73Cr• The company records Rs 1181.78Crs of Profit Before Tax (PBT) which was 13% higherthan FY08.• The book value of share now stood at Rs 431.32 the original face value is Rs 10.• The company recommended 165% of dividend in FY12. In the FY08 provide 260% ofdividend due to increase in equity share capital.
  • 29. 4.1.8 SWOT ANALYSIS OF CONTAINER CORPORATION OF INDIA(CONCOR)Strengthv Market leader in logistics sector in Indiav 20 years of presence in rail movement ofcontainers/terminal management/operationof ICDsv Government undertaking companyv High level of resources and surplusv They currently hold 10988 wagonsv The Company has constituted a CoreRisk management Committee (RMC)for managing the integrated risks of thecompanyv The company has Strong financials andhighly committed team of experienced andskilled manpower with in-depth knowledgeof multi modal logistics business.Weaknessv This focus only railways, containersoperationsv Follow old information technology,equipmentsv It handle bulk quantities onlyv The company utilize its equity fundsOpportunitiesv Customer delights by way ofefficient response and integratedmulti modal services.v Increase in revenue bydiversification and productdifferentiation.v Management of costs bytechnological innovationThreatsv High cost of operationsv Government polices over import andexport in Indiav Lack of infrastructurev 100% FDI in IndiaTable No 4.1.8 SWOT analysis of CONCORE
  • 30. 4.2 Allcargo LogisticsAllcargo Global Logistics Ltd is also known as Allcargo Logistics Ltd the leading LCL(Less than Container Load) consolidator in India offering direct outbound and inbound LCLgroupage services to and from major cargo destinations worldwide. Their present operations arein seven key areas of the logistics business. They are Multi-modal Transport Operations,Container Freight Stations, Project and ODC Cargo Handling, Airfreight, Transport Logistics,Equipment Hiring and Oil Rig & Supply Vessels Management.The company was incorporated on August 18, 1993 as a private limited company in thename Allcargo Movers (India) Pvt Ltd. The company commenced their operations as a shippingagency and also provided freight forwarding services. In the year 1995, they formed associationwith Ecu Line NV, Belgium to serve as their agents in Mumbai and New Delhi. From June 1998,they became a Multimodal Transport Operator by obtaining the licence from the Ministry ofShipping, Government of India.v In the year 2001, the company made strategic investments in Ecu Line Mauritius and EcuLine Middle East (Dubai). They acquired 50% stake in ACM Lines (Pty) Ltd in the year2002. In the year 2003, they entered into a JV with Transworld Logistics & ShippingServices Inc.v In the year 2003, they commissioned Container Freight Stations at Koproli in Maharashtra.In the next year, they commissioned the second phasse and in the year 2005, theycommissioned the third phase.v On December 8, 2005 the company name was changed into Allcargo Global Logistics PvtLtd. They company became a public limited company in the year 2006.v In January 2007, the company acquired Hindustan Cargo Ltd from Thomas Cook India Ltdand thus they became the subsidiary of the company.v On April 24, 2007 the company commenced their commercial operations in the ContainerFreight Stations at Chennai in Tamil Nadu and Mudra in Gujarat.v The company acquired the Project and Equipment Division of Transindia Freight ServicesPvt Ltd on May 2008.
  • 31. 4.2.1 ALLCARGO LOGISTICS LTD- FINANCIAL PERFORMANCE1.1.2 NET WORTH OF ALLCARGO LOGISTICS LTDParticulars 2008 2009 2010 2011 2012Net worth 385.51 496.87 791.79 979.01 1140.14Table No. 4.2.2 net worth of Allcargo LogisticsChart No. 4.2.2 net worth of Allcargo LogisticsINTERPRETATIONThe net worth of Allcargo Logistics has continuously increased compare to pastfinancial years. It retains abundance of reserves and surplus. 14% to be increased its value overthe previous year. In FY2008 the company had Rs 385.51Cr. But in FY10 the company spiltshare capital so the value stood at Rs 791.79crs. The company records good sales records overthe years this one of the reasons increased in General reserve so the net worth was increased inFY12Dec 07 Dec 08 Dec 09 Dec 10 Mar 120.00200.00400.00600.00800.001000.001200.001400.00385.51496.87791.79979.011140.14
  • 32. 1.1.3 GENERAL RESERVE OF ALLCARGO LOGISTICS LTDParticulars 2008 2009 2010 2011 2012Reserves 361.65 443.53 765.18 951.68 1113.16Table No 4.2.3 General reserve of Allcargo LogisticsChart No 4.2.3 General reserve of Allcargo LogisticsINTERPRETATIONThe diagram explain about the level of reserve is increased Up to 14% thecompany has spent more money for acquisition of firms it shows that increase in value of sharein future. Even the company has the high level of reserve and surplus in expect more return inthe future. The company records high level of sales compare to past years this is one of thereasons increase in General Reserves.2008 2009 2010 2011 20120.00200.00400.00600.00800.001000.001200.001400.00ReservesSeries 2
  • 33. 1.1.4 NET BLOCK OF ALLCARGO LOGISTICS LTDParticulars 2008 2009 2010 2011 2012Net Block 210.08 315.16 410.25 642.07 981.21Table No 4.2.4 Net Block Of Allcargo Logistics LtdChart No 4.2.4 Net Block Of Allcargo Logistics LtdINTERPRETATIONThe company is net block that is the asset of the company increased 39% due toacquired more asset over the years. In the year 2012 the company purchases heavy EquipmentsRs.0.35Crs.The Company also brought additional vehicles for their operation about Rs 1.17Crs.They also spent funds for buying more assets like freehold land, plant Equipments, furniture&Fixtures in FY12.2008 2009 2010 2011 20120.00200.00400.00600.00800.001000.001200.00210.08315.16410.25642.07981.21
  • 34. 1.1.5 BOOK VALUE OF ALLCARGO LOGISTICS LTDParticulars 2008 2009 2010 2011 2012Book Value (Rs) 188.54 208.33 63.31 74.92 87.27Table No 4.2.6 Book Value of Allcargo LogisticsChart No 4.2.6BookValue ofAllcargoLogisticsINTERPRETATIONThe company had face value of Rs 10 in 2008 & 2009. Later it reduces theirface value from Rs10 to Rs2. So the book value of share is now stood at Rs 87.27In the FY2010, the value of book value stood at Rs 63.31 it was increased pastthree years now the company records book value of a share is Rs87.272008 2009 2010 2011 20120.0050.00100.00150.00200.00250.00188.54208.3363.3174.9287.27
  • 35. 1.1.6 SALES TURN OVER OF ALLCARGO LOGISTICS LTDParticulars 2008 2009 2010 2011 2012Sales Turnover 361.25 516.79 516.76 699.84 1079.43Table No 4.2.6 SALES TURN OVER OF ALLCARGO LOGISTICSChart No 4.2.6 SALES TURN OVER OF ALLCARGO LOGISTICSINTERPRETATIONThe above diagram explains about the Net sale of the company. it has increasedfrom Rs. 516.76 Cr for the FY-2009-10 to Rs.699.84 for the FY-2010-11 indicating increase of26% further, as per audited financial for the year 2011-12, the company achieved sale of Rs.1079.43Cr Indicating an increase of 35%2008 2009 2010 2011 201202004006008001,0001,200361.25516.79 516.76699.841079.43
  • 36. 1.1.7 PROFIT BEFORE DEPRECIATION INTEREST& TAXES (PBDIT)Particulars 2008 2009 2010 2011 2012PBDIT 83.74 152.69 160.03 225.37 360.08Table No 4.2.7 PROFIT BEFORE DEPRECIATION INTEREST& TAXESChart No PROFIT BEFORE DEPRECIATION INTEREST& TAXESINTERPRETATIONThe profit Before Depreciation Interest & Taxes of Allcaro logistics shows thatin the year 2011 PBDIT was Rs 225.37Cr. In the FY-2012 increased by Rs.134.71Cr reach atRs.360.08Cr the company earn good efficiency of performance in other words there is a upwardsmovement in the PBDIT Over the past financial years the company face the boom position dueto that have various net work all over the world.The company operates its operation all over the world wide. That one of thereason they get more profit compare to its competitors.
  • 37. 1.1.8 NET PROFIT OF ALLCARGO LOGISTICS LTDParticulars 2008 2009 2010 2011 2012Reported Net Profit 59.78 92.67 97.81 121.13 184.07Table No. 4.2.8 NET PROFIT OF ALLCARGO LOGISTICSChart No 4.2.8 NET PROFIT OF ALLCARGO LOGISTICSINTERPRETATIONThe net profit of the company had a very good performance over past fiveyears. The company achieved Rs.184.07Cr Net Profit in FY-12 it was increased from 34% inprevious years. in the year 2008 the company records Rs 59.78Cr but in next year the companyrecords Rs 93.67Cr.59.7892.67 97.81121.13184.0720082009201020112012
  • 38. 1.1.9 EARNINGS PER SHARE (RS) OF ALLCARGO LOGISTICS LTDParticulars 2008 2009 2010 2011 2012Earning Per Share(Rs) 29.51 41.44 7.84 9.28 14.1Table No 4.2.9 EARNINGS PER SHARE (RS) OF ALLCARGO LOGISTICSChart No EARNINGS PER SHARE (RS) OF ALLCARGO LOGISTICSINTERPRETATIONThe above diagram explain about the EPS of Allcargo Logistics Ltd .Thecompany had face value of Rs 10 in 2008 & 2009. Later it reduces their face value from Rs10 toRs2. So that reason in FY12 stood at Rs14.12008 2009 2010 2011 201229.5141.447.84 9.2814.1Earning Per Share (Rs)
  • 39. 1.1.10 DEBT – EQUITY RATIO OF ALLCARGO LOGISTICS LTDParticulars 2008 2009 2010 2011 2012Debt Equity Ratio 0.06 0.44 0.14 0.25 0.49Table No 4.2.10 Debt – Equity Ratio Of Allcargo LogisticsChart No 4.2.10 Debt – Equity Ratio Of Allcargo LogisticsINTERPRETATIONThe above chart explains that the debt- equity ratio of the Allcargo Logistics Ltd in the FY2008they have only 0.06. It was increased to 0.44 in the year 2009 due to company brows morefunds from external sources. But in FY2010 it was reduced because the company refunds theirborrowing later it was increased to 0.49 in the FY12 due to increase their operation towardsworldwide.2008 2009 2010 2011 201200.
  • 40. 1.1.11 Current Ratio Allcargo Logistics LtdParticulars 2008 2009 2010 2011 2012Current Ratio 1.55 3.33 2.98 2.65 2.08Table No 4.2.11 Current Ratio Allcargo LogisticsTable No 4.2.11 Current Ratio Allcargo LogisticsINTERPRETATIONThe current ratio’s normal range between .05 to 2.0 is acceptable but the above diagram denotesthat continuously decrease over four years but ratio cloud be remain same position that is safeliquidity. The company spent more resource for expands its operation over the upcoming years.2008 2009 2010 2011 201200.511.522.533.541.553.332.982.652.08Current Ratio
  • 41. 4.2.12 RATIO ANALYSIS OF ALLCARGO LOGISTICS LTDParticulars 2008 2009 2010 2011 2012Operating Profit Margin(%) 22.07 25.66 28 26.06 28.62Gross Profit Margin(%) 18.13 20.73 20.71 20.31 20.37Net Profit Margin(%) 16.48 17.76 18.5 16.79 16.28Return On Capital Employed(%) 16.33 15.93 13.17 13.34 15.95Return On Net Worth(%) 15.65 19.89 12.37 12.38 16.15Table No 4.2.12 Ratio Analysis Of Allcargo LogisticsChart No4.2.12RatioAnalysisOfAllcargoLogisticsINTERPRETATIONThe above diagram denotes that operating profit margin was increased over the years. The GrossProfit Margin was no changes over the years. Net Profit Margin is no change in last two years.Return on capital employed indicates that in FY08 was 16% due to increase the employer levelso that reasons it was decreased to 15.95% in FY12. The rate of return on net worth in FY08 was2008 2009 2010 2011 201205101520253035Operating ProfitMargin(%)Gross Profit Margin(%)Net Profit Margin(%)Return On CapitalEmployed(%)Return On NetWorth(%)
  • 42. 15.65% but it increased to 19.89% in FY09 finally in FY12 rate of return stood at16.15%4.2.13 LIQUIDITY AND SOLVENCY RATIOSParticulars 2008 2009 2010 2011 2012Quick Ratio 1.75 3.31 2.94 2.61 2.04Debt Equity Ratio 0.06 0.44 0.14 0.25 0.49Long Term Debt Equity Ratio 0.05 0.44 0.14 0.25 0.49Debtors Turnover Ratio 10 8.84 7.17 8.41 9.69Asset Turnover Ratio 1.46 1.37 0.64 0.66 0.69Table No 4.2.13 Liquidity And Solvency RatiosChart No 4.2.13 Liquidity And Solvency RatiosINTERPRETATIONThe above diagram explains that ratio of Allcargo Logistics Ltd. whereas quick ratio indicatesthat the firm has good financial position over the past five years. The company use external useof funds over the years in FY12 Company 49% of shareholders’ funds. Long term debt equityratio was stood at 0.49. A debtor turnover ratio explains that extends level of credit sales over2008 2009 2010 2011 2012024681012Quick RatioDebt Equity RatioLong Term DebtEquity RatioDebtors TurnoverAsset Turnover Ratio
  • 43. the years here the company in FY12 was 9.69times. Asset turnover ratio indicates that companyutilizes the assets use effectively over the years.4.2.14 SWOT Analysis of Allcargo Logistics LtdStrength• MTO business showed growth of 13%• 2nd rank in the industry in India.• Scale of operation across 62 countriesand over 4000 ports.• LCL consolidation market with astrong network across 62 countries and142 own offices covering over 4,000port pairs with nearly 200 agents andfranchisees• Robust distribution network• Superior performance and innovativeideasWeakness• Strong dependency on weak infrastructure• Taxes policies in India• lack of adoption of new technology compareto foreign companiesOpportunities• Diversify new product portfolio to enter into new service provided• Company utilizes their fund for furtherexpansion.• To start 3PL it will give more strong to thecompany• CFS/ICDs that run their own containerterminal, freight forwarder or shipping lineare likely to gain from the surge in oceanfreightThreats• Competitor like DHL, TNT,UPS, Blue Dart• Government rules and regulations• India have poor infrastructure facilities likeroad, port, information technology• Restriction on import and export procedure.Table No 4.2.14 SWOT Analysis Of Allcargo Logistics Ltd
  • 44. 4.3 AQUA LOGISTICS LIMITEDAqua Logistics Limited is Indias foremost global logistics and supply chain partner,delivering excellence across industries, through an integration of empowered people, processesand technology. The Company is a full-scope 3 PL (third-party logistics service provider),delivering end-to-end solutions in the logistics and supply chain domain to customers.The company capabilities include supply chain consulting, logistics execution and projectlogistics. The company operations and consulting teams, deliver logistics solutions, to clients byaligning the strategic and the operational perspectives.The company is global supply chain management involves planning, implementing andcontrolling a series of complex tasks performed by persons of different nationalities and culturesand with varying language capabilities. The company integrates these multinational capabilitiesby combining years of expertise with the latest in technology.The companys operations in consulting, and client development teams deliver logistics,operations strategy, sourcing and procurement planning, fulfillment operations, customer serviceand after sales support.The company was established in 1999 and headquartered in Mumbai and has presence inmajor locations such as New Delhi, Chennai, Bangalore, Ludhiana, Baroda, Cochin and Pune. In1999, the company started as freight forwarding and consistently increased capabilities andscope of services. As an external service provider ambit of services covers critical serviceswhich are required to execute end-to- end logistic needs.These include Multimodal Transportation, Contract Logistics, Regulatory Compliance,Warehousing, Value Added Services and Project Logistics. The company international logisticsoperations are supported by a network of 3PL partners and vendors that enables us to serviceclient requirements across India and abroad as well. The company delivers international logisticservices by using air, sea and surface, as modes of transportation.The company regulatory compliance services include customs and industry-specificregulations. The company had a Multi-Modal Transport Operators License, an IATAAccreditation and a Custom House Agents License for servicing customers requirements
  • 45. 4.3.1 RESERVES & SURPLUS OF AQUA LOGISTICS LIMITEDParticulars 2008 2009 2010 2011 2012Reserves & Surplus 28.48 44.52 206.47 493.61 491.56Table No 4.3.1 Reserves & Surplus Of Aqua LogisticsChart No 4.3.1 Reserves & Surplus Of Aqua LogisticsInference:During the year, company reduction in operation so that reason the level ofreserve and surplus Rs. 2.05Cr could be reduced. But past four years they retain so manyreserves and surplus. In the FY2011 they retain 139% in profit. Now the company reserveincreased up to 1625% in past financial five years.2008 2009 2010 2011 201228.48 44.52206.47493.61 491.56
  • 46. 4.3.2 NET BLOCK/NET ASSETS OF AQUA LOGISTICS LIMITEDParticulars 2008 2009 2010 2011 2012Net Block 9.13 12.75 43.09 44.36 44.93Table No 4.3.2 Net Block/Net Assets Of Aqua LogisticsChart No 4.3.2 Net Block/Net Assets Of Aqua LogisticsInferenceIn the FY2010 the company brought Plant & machinery about Rs 31Cr. So the value ofasset could be increased over the years. Later the value of net block could be increased. In theYear 2012 the value of assets shows that Rs44.93Cr. the followings are explains about the thecompany brought asset over the FY2010• Plant & Machinery-Rs 31.2Cr• Computer & Software- Rs 0.08Cr• Furniture & Fixtures-Rs 0.22Cr• Vehicles-Rs 0.22Cr
  • 47. Therefore, the company spent their resources for buying new vehicles currently thecompany buy the worth of Rs4.46Cr4.3.3 NET SALES OF AQUA LOGISTICS LIMITEDParticulars 2008 2009 2010 2011 2012Net Sales 108.99 213.4 322.01 380.88 310.35Table No 4.3.3 Net Sales Of Aqua LogisticsChart No 4.3.3 Net Sales Of Aqua LogisticsInferenceThe company records the continuous improvement in the year between FY2008 toFY2011. But in the year 2012 the sales could be down up to 18.52% the level of sales stand at Rs310.35Cr in FY12.eventhouh the sales growth for past five years is 184%2008 2009 2010 2011 2012108.99213.4322.01380.88310.35Net Sales (Cr)
  • 48. 4.3.4 NET PROFIT OF AQUA LOGISTICS LIMITEDParticulars 2008 2009 2010 2011 2012Net Profit 5.61 11.15 20.54 22.39 1.15Table No 4.3.4 Net Profit Of Aqua LogisticsChart No 4.3.4 Net Profit Of Aqua LogisticsInferenceThe diagram explains about the net profit of the company could reduced due to payment of moreinterest and taxes in FY12. In the FY10 the company recorded Rs 22.39Crs which was 1.85Crsincreased from previous years.
  • 49. 4.3.5 DEBT-EQUITY RATIO OF AQUA LOGISTICS LIMITEDParticulars 2008 2009 2010 2011 2012Debt – Equity ratio 0.20 0.69 0.13 0.13 0.16Table No 4.3.5 Debt-Equity Ratio of Aqua LogisticsChart No 4.3.5 Debt-Equity Ratio of Aqua LogisticsInferenceThe Debt- Equity ratio explains about the business concern is done by owner’s equity aswell as outside debts. In other words, the relationship between borrowed funds and owner’scapital it used for measure the long – term solvency of a firm. Aqua logistics shows that in theFY2009 could be increased from 0.20times to 0.69 times later it reduced to 0.13 times but in theaudited FY12 the company borrowings more short term loans so that reason the level could beincreased over the year. Now it stands at 0.16 times.
  • 50. 4.3.6 Profitability Ratios analysis of Aqua LogisticsParticulares 2008 2009 2010 2011 2012Operating Profit Margin(%) 11.7 10.47 10.21 9.38 5.08Gross Profit Margin(%) 11.19 9.93 9.75 8.36 3.83Net Profit Margin(%) 5.14 5.22 6.37 5.85 0.36Return On Capital Employed(%) 25.66 21.98 12.38 5.58 2.4Return On Net Worth(%) 14.05 19.89 9.2 4.3 0.22Table No 4.3.6 Profitability Ratios analysis of Aqua LogisticsChart No 4.3.6 Profitability Ratios analysis of Aqua LogisticsINFERENCEThe diagram explains that Gross profit margin ratio explains that in FY08 records that 11.19%due to decreased in sales now 3.83% in FY12. Net profit margin indicates that diminishing overthe years reasons was reduced in sales over the years.2008 2009 2010 2011 20120102030405060708090Operating ProfitMargin(%)Gross Profit Margin(%)Net Profit Margin(%)Return On CapitalEmployed(%)Return On NetWorth(%)
  • 51. Financial Highlightsv Face Value of the Equity Share of the Company was splitted from 2010 to Rs.1.00 WithRespect of 4th October, 2010v During the year, the Company allotted 4.1Cr Global Depository Receipt (GDR) (on pari-passu basis) representing 9.46 Equity Shares of Re.1/- each with each GDR representing23 Equity Shares at US$ 15.17 per GDR on February 10, 2011v In order to conserve the profit of the business of the company, to meet the growingfunding requirements, it has not recommended any dividend for the last 5 years.v The Value of the Net Assets of the company has increased in past 5 years it shows that itbrought many assets by way of utilizing the reserves & surplus of the company.v It provide services, so it need not maintain any inventoriesv The company spent more funds on its subsidiaries so the level of investment could beincreased in past few yearsv The value of Debtors collection could be decreased. Up to 5.6% has been reduced.v The performance of the current assets shows very good financial results up to 53%increased its helps to investors can invest their fund in this company share for short termperiod.v Aqua Logistics company barrows fund from external sources in the previous year Rs65.35Cr it’s increased to 329% stood at Rs 280.62Cr in FY12.v Face Value of the Equity Share of the Company was splitted from 2010 to Rs.1.00 dueto that reason the book value of share was FY11 stood at Rs 17.45 in FY12 profit levelcould be turn down so the book value per share is Rs.17.39v During the year the company has registered income from operation of Rs. 331.93 Cr. ascompared to Rs. 381.73Cr in the previous year.v Profit before Depreciation Interest and Tax (PBDIT) has decreased from Rs 17.36Cr. Forthe year ended March 31, 2011 to Rs.36.61 Cr. showing the decrease of 52.6 %. DuringFY2012, the company has recorded PBDIT of 5.55% of the income from operation asagainst 9.58% during FY2011. The reduction in operation in operating margin is due todecrease in income from operation.
  • 52. vDuring the year, Profit after tax (PAT) has decreased from Rs.21.24Cr. for theFY2011 to Rs.1.15Cr. in FY2012 due to decrease in income from operation.v The company pays more funds for interest payment due to that reason the level of profitcould be decreased over the year. Interest has increased from Rs. 4.53Cr. for the FY2011to Rs.11.78Cr. in FY2012v The gross Profit Margin reflects the efficiency with which Management Produceseach unit of product. This ratio indicates the average spread between the cost of goodssold and the sales revenues. A high gross profit margin shows that a sign of goodmanagement and vice. Versa in Aqua Logistics company past five year gross profitmargin continuously inability to purchase raw material at favorable terms. It result indecreased from 9.38% to 5.08% in FY2012.v Net Profit Margin ratio establishes a relationship between net profit and sales andindicates management’s efficiency in manufacturing, administration and selling theproducts/service. While in this case the company performance shows that fluctuation inpast five years. In FY2008 5.14% but the company effort of the could be abridged nowthe ratio shows that 0.36% the economic condition also one of the reasons for slope in netprofit margin ratio.v There is no constant changes in the ROE it indicate that the relationship between the NetProfit to Net worth of the company but the company shows up-down movement in pastperformance like in FY2011 the ROE was 4.3% it reduced to 0.22% in FY2012.v Current Ratio provides a margin of safety to the creditors. In a sound business, a currentratio of 2:1 is considered an ideal one. But in this case, the current ratio explains that inthe FY08 & FY09 constant relation between current assets and current liability but in theFY10 increased in sundry creditors for supplier upto Rs. 2.29 Cr. later in FY12 the levelof short term borrowings would be increased it stood at 3.26:1 is an ideal one.v The working capital cycle level could be increased continuously over the past five years.In FY12 the Number of Days in Working Capital was 1.5yrs.
  • 53. 4.3.7 SWOT ANALYSIS OF AQUA LOGISTICS LIMITEDStrengthØ Good quality and reliabilityØ Robust distribution networkØ Superior performance and innovativeidea to implementWeaknessØPoor infrastructure in India sothat reasons could not able toearn profit effeictivelyØGovernment rules andregulationsØLack of financial position incompaniesOpportunitiesØReduction in warehousing spacerequirementØImprovement in efficiency due tobetter inventory managementØ Reduction in transportation cost due tohigher capacity utilizationThreatsØ Low margin businessØ International competitorsØAcquisitions of other businessunitTable No 4.3.7 SWOT Analysis Of Aqua Logistics Limited
  • 54. 4.4 Arshiya InternationalArshiya International Ltd is a fast emerging end-to-end service and solution provider inlogistics and supply chain management. The company is an amalgamation of several strategicverticals such as Free Trade Warehousing Zones, Rail, 3PL, 4PL, Trucking, Warehousing & ITenabling unparalleled operational expertise & solution capability across the entire supply chainspectrum. Arshiya is rapidly expanding their business capabilities through continuous internaldevelopment and aggressive acquisitions in complimentary space.The headquarter is at Mumbai with offices spanning across India, Singapore, Australia,Dubai, Qatar, Oman and USA. Arshiya International Ltd was incorporated in the year 1981 asIID Forgings Ltd.Ø In the year 2006, the company name was changed into Arshhiya TechnologiesInternational Ltd and the name was further changed into Arshiya International Ltd witheffect from September 28, 2007.Ø In April 2006, the company acquired 100% of the share in two companies namelyCyberlog Technologies Pte Ltd, Singapore, a company engaged in the business ofdevelopment and marketing of software products and Park Investments Ltd, Hongkong, acompany engaged in the business of supply chain logistics.Ø In January 2006, BDP (India) Pvt Ltd was amalgamated with the company. In october2006, the company had a joint venture agreement with the BDP International Inc USAand Genco I Inc USA for foray into retail distribution activities.During the year 2007-08, the company incorporated Arshiya Logistics Infrastructure Ltd,Arshiya Western Logistic Infrastructure Ltd, Arshiya Distripark Ltd and Flat World ProcessesLtd. Thus, they became the subsidiary of the company. The company is in the process of settingup a Free Trade Warehousing Zone, a special category SEZ at Sai Village in Raigad,Maharashtra with a project outlay of Rs 1200 crores.The company has made substantial acquistion of land for the Free Trade WarehousingZone proposed at Uttar Pradesh and Nagpur at an estimated cost of Rs 1100 crore and Rs 900crore respectively. The company incorporated a subsidiary namely Arshiya Rail InfrastructureLtd for containerised rail operations services to the customer for both domestic and exim cargomovement across the the country.The company estimated the project outlay of Rs 1600 crore for the acquisition of 75Rakes, break vans, building of rail siding and other necessary infrastructure across the country.
  • 55. 4.4.1 GENERAL RESERVES OF ARSHIYA INTERNATIONAL LTDParticulars 2008 2009 2010 2011 2012Reserves 445.23 475.36 483.91 502.62 540.81Table No 4.4.1 General Reserves of Arshiya InternationalChart No 4.4.1 General Reserves of Arshiya InternationalInferenceThe above diagram explains that General Reserve of Arshiya International where as thecompany earn more profit in FY12 due to company earn more profit. They allocate Rs 540.81Cras general Reserves. It was increased from 7% in previous Year. The growth of the company ismoderately increased. So it indicates that definite growth in future because 100% FDI is allowedin India. The company was an amalgamation of several strategic vertical such as Free TradeWarehousing Zones, Rail, 3PL, 4PL, Trucking, IT in future.2008 2009 2010 2011 2012445.23475.36 483.91502.62540.81
  • 56. 4.4. 2 NET BLOCK OF ARSHIYA INTERNATIONAL LTDParticulars 2008 2009 2010 2011 2012Net Block 3.41 9.65 17.59 330.86 602.35Table no 4.4. 2 net block of arshiya internationalChart no 4.4. 2 net block of arshiya internationalInferenceThe above diagram explains about the Net block of the Arshiya International Ltd whereas in the FY2008 the company has Rs3.41Crs. but it was increased to Rs 9.65Crs they browssome plant and machineries. In FY11 in company’s net block abnormal increased toRs330.86Crs company additionally purchase freehold lands, buildings, computers and otherequipments. In the financial year 2012 the company shows Rs 602.35Crs reasons, thecompany purchase additional assets in the years details are,1. Freehold land-Rs 120Cr2. Buildings – Rs 134Cr3. Plant and machinery- Rs 3Crs4. Equipment –Rs 16Crs2008 2009 2010 2011 201201002003004005006007003.41 9.65 17.59330.86602.35
  • 57. These items are additionally purchased in FY12 this is major reasons for improvement in netblock of the company.4.4.3 NET SALES OF ARSHIYA INTERNATIONAL LTDParticulars 2008 2009 2010 2011 2012Net Sales 201.91 256.39 273.61 453.01 592.63Table No 4.4.3 Net Sales Of Arshiya InternationalChart No 4.4.3 Net Sales Of Arshiya InternationalInferenceThe above diagram explains that Net profit of the company in which the companyrecords Rs 201Cr in FY20008. It was increased 21% to stand at Rs 256.39Crs in FY09. In theFY10 the company records Rs 453Crs as net profit due to the company amalgamate moreseveral strategic vertical such as Free Trade Warehousing Zones, Rail, 3PL, 4PL, Trucking, ITthis is one of the reason improvement in profit. Finally company records Rs592.6Cr in FY2012.
  • 58. 4.4.4 NET PROFIT OF ARSHIYA INTERNATIONAL LTDParticulars 2008 2009 2010 2011 2012Net Profit 12.36 18.49 15.4 24.93 47.51Table No 4.4.4 Net Profit Of Arshiya InternationalChart No 4.4.4 Net Profit Of Arshiya InternationalInferenceThe above diagram denotes that Net profit of the company records in past five years. InFY08 company perform Rs12.36Crs as net profit. In the FY09 the company increased theiroperations so that reasons the firm earns Rs 18.49Crs. but in FY10 the company’s profit declinedRs 3Crs to shows Rs 15.4Crs because of increase in depreciation, payment of more taxes. InFY12 the company records Rs 47.51Crs as net profit because of increased in operations it reflectimprovement in net profit of Arshiya International. Its increased 23.5% from in previous year.But in FY12 the company pays more financial interest to its borrowings.
  • 59. 4.4.5 EARNINGS PER SHARE OF ARSHIYA INTERNATIONAL LTDParticulars 2008 2009 2010 2011 2012Earnings Per Share 2.17 3.15 2.62 4.24 8.08Table No 4.4.5 Earnings Per Share Of Arshiya InternationalChart No 4.4.5 Earnings Per Share Of Arshiya InternationalInferenceThe above diagram explains about the Earnings per share of the company in which in theFY08 the value of EPS was Rs 2.17 they recommend Rs0.80 as dividend in the year. In FY2010EPS could be decreased EPS as Rs 2.62 because of decline in income of the company but thecompany declare Rs 1.00 as dividend. In FY12 EPS stood at Rs 8.08 the company declare Rs1.40 as dividend to its share holders.2008 2009 2010 2011 20120123456789102.173.152.624.248.08
  • 60. 4.4.6 DEBT EQUITY RATIO OF ARSHIYA INTERNATIONAL LTDParticulars 2008 2009 2010 2011 2012Debt Equity Ratio 0.78 0.16 0.73 1.32 2.06Table No 4.4.6 Debt Equity Ratio Of Arshiya InternationalChart No 4.4.6 Debt Equity Ratio Of Arshiya InternationalInferenceThe above chart denotes that Debt Equity of Arshiya International in the Year 2008 the DebtEquity Ratio was 0.78X. A less than 1 ratio indicates that the portion of assets provided bystockholders is greater than the portion of assets provided by creditors and a greater than 1 ratioindicates that the portion of assets provided by creditors is greater than the portion of assetsprovided by stockholders. In FY2012 the level of debt Equity ratio stands at 2.06X times2008 2009 2010 2011 201200.511.522.50.780.160.731.322.06
  • 61. 4.4.7 CURRENT RATIO OF ARSHIYA INTERNATIONAL LTDParticulars 2008 2009 2010 2011 2012Current Ratio 6.46 0.75 1.3 1.27 2.02Table No 4.4.7 Current Ratio Of Arshiya InternationalChart No 4.4.7 Current Ratio Of Arshiya InternationalInferenceThe above digram explains that current ratio of Arshiy International where as in FY08 shows6.46 because of the company do not borrow any term loans. But in FY09 advances received fromits subsidiary companies so that reasons the current ratio comes down in the year. In FY12 theratio indicate good financial positions over working capital the ratio of 2.02:1 whereas companyprovide Rs 600Crs as loans and advances to its subsidiaries.2008 2009 2010 2011 20120123456786.460.751.3 1.272.02
  • 62. 4.4.8 PROFITABILITY RATIOS ANALYSIS OF ARSHIYAINTERNATIONALParticulars 2008 2009 2010 2011 2012Operating Profit Margin(%) 6.95 8.07 8.09 11.72 86.97Gross Profit Margin(%) 6.63 7.46 7.44 10.19 84.2Net Profit Margin(%) 5.94 7 5.45 5.25 7.54Return On CapitalEmployed(%) 4.22 4.68 3.36 5.67 31.7Return On Net Worth(%) 2.7 3.79 3.1 5.1 8.59Table No 4.4.8 Profitability Ratios Analysis Of ArshiyaChart No4.4.8 Profitability Ratios Analysis Of ArshiyaINFERENCEThe above diagram explains about the Gross Profit Margin highly increased over the yearswhereas in 6.63% in FY08 but in 84% in FY12. Operating Profit Margins also increased due to2008 2009 2010 2011 20120102030405060708090100Operating ProfitMargin(%)Gross Profit Margin(%)Net Profit Margin(%)Return On CapitalEmployed(%)Return On NetWorth(%)
  • 63. increased in sales in FY12. The level of net profit was increased in FY12 so the margin level wasincreased in FY12 stood at 7.54 it was 5.25% in FY11. The value of return on net worth could beincreased in past five years in FY12 Stood at 31.7%. the value of return on net worth wasincreased 8.59% in FY12. Hence the performance of the company has been very good positionin the matket.4.4.9 LIQUIDITY AND SOLVENCY RATIOS ANALYSISParticulars 2008 2009 2010 2011 2012Current Ratio 6.46 0.75 1.3 1.27 2.02Quick Ratio 6.45 2.67 1.57 1.84 2.02Debt Equity Ratio 0.15 0.16 0.73 1.32 2.06Debtors Turnover Ratio 7.56 5.62 3.67 4.86 5.48Table No 4.4.9 Liquidity And Solvency Ratios AnalysisChart No 4.4.9 Liquidity And Solvency Ratios AnalysisINFERENCEThe above diagram explains that current ratio of the company in which FY08 the level of currentratio was 6.46 because of the company brows Rs 22.25Crs of loans and advances. But it wasincreased to Rs 121Cr in FY12 so that reasons the level could be decreased to 2.02 in FY12. The
  • 64. Quick ratio also decreased same reasons. Debtors turnover ratio denotes that 7.56times in FY08but it was increased to 5.58times due to the level of sundry debtors level has been increased inFY12.4.4.10 FINANCIAL HIGHLIGHTS OF ARSHIYA INTERNATIONAL LTDv In the FY2011 the company increases their capital by way of issued as bonus share to itsshare holders.v The reserve of the company shows that continuously increased over the past five years. Inthe FY12 company retains their funds to 7.06% in the previous year Rs 502.62Crs. so itsvalue of the company could be increase in upcoming years hence an investor can investtheir money in this company stronglyv The net worth of the company also increased due to wide area of operation could becarried over the world wide. Now the company has worth of Rs553Crs.v During the year the company borrows short term funds from banks for the purposeof increase their working capital position of the firm. In FY12 company borrowsRs.1006Crs. against of FY11 Rs 655.65Crsv In the FY2011 company brought freehold land, vehicles, plant and equipments withworth of Rs 330Crs. It is increased to Rs602 Cr in the financial years. From this denotesthat the company have good value in marketv The company does not maintain any inventories over the last financial yearsv The level of sundry debtors could be increased over the years in the FY12 recordsRs 121 Cr in the previous year Rs 95Crsv The company also lends loan and advances for its subsidiaries for the purpose of expandits operationsv The net current asset of the company increase over the past financial years currently thecompany hold the worth of the Rs 400Crv The company records a best sales performance over the past financial years. in theFY2008 the sales level was Rs201.Crs on the other hand the level of sales could beincreased up to 21% it reach at Rs. 256Crs in the FY2009. Even though the companyhave good sales in the FY2012 it records Rs592Crs due to expand their business over the
  • 65. years.v The net income of the company also increased over the past financial years in the FY12the current net income is stood at Rs630Crsv In this accounting period the company borrows more funds from outsider it results inpayment of the more interest to creditors. In the financial years the company pay Rs80Crs but in the previous year Rs 31Crsv The above balance sheet explains about the tax could be paid by the company is highcompare to previous years. In the FY12 the company pay Rs. 21 Cr. as tax to Indian govtv The Earning Per Share of the company increases over the financial years in year 2010EPS was Rs2.64 but the next financial year 2011 the EPS could be increased to Rs 4.42finally the value of EPS in the FY12 reach at Rs 8.08 because of the the company hasmore retains their earningsv In the year 2012 the company declares the 70% as dividend for the equity shareholders.But in FY08 they declared 40% only the face value of Rs 2 per share.v The book value of the share shows that continuous improvement over the years now thecompany’s book value is Rs 93 the original value of share’s face value is Rs 2 onlyv During the year under report / review, seven step down subsidiaries of the Company, viz.Arshiya Southern Domestic Distripark Ltd., Arshiya Eastern Domestic Distripark Ltd.,Arshiya Western Domestic Distripark Ltd., Arshiya Central Domestic Distripark Ltd.,Arshiya Exim Trading Ltd., Arshiya Eastern FTWZ Ltd., Arshiya Western FTWZ Ltd.have ceased to be step down subsidiaries of this Company.Further, another step-downsubsidiary of your Company, Cyberlog Technologies Inc., USA has been dissolved.v The face value of the company share is Rs 2.00 there is no change in capital structure inpast five yearsv The company declared Rs 0.80 in FY2008. It was increased in FY12. The companyrecommended Rs1.40 in FY12v Operating profit was continuously improved over the year. In FY12 the company had87% contribute as operating profit.v Gross profit margin level has been increased due to company operate wide area in India itresults in increase in gross profit level, in FY12 the company’s Gross profit margin stoodat 84.4%
  • 66. v The net profit margin represents that relationship between net profit and total net saleswhere as the company’s net profit margin in FY2010 5.5% it was increased to 7.54% inFY12 because of increased in sales of the company4.1.11 SWOT ANALYSIS- ARSHIYA INTERNATIONAL LTDStrengthü India’s first Free Trade andWarehousing Zone (FTWZ)ü The FTWZ is a deemed foreign territorywith tax exemptionsü state-of-the-art equipment state-of-theartequipment along with convenient sidingand customized wagonsü information technology is a completely-integrated systemü have more subsidiary companiesWeaknessühigh cost of operation it result indecreased in net profitüFace heavy competition with itscompetitors like CONCORE, DHL, TNTetc.ü Fluctuation in foreign exchange rate.ü Government influence on import andexport policies.Opportunitiesü The transportation sector in India isstill dominated by the road segmentwhich accounts for 65% of the totalfreight traffic followed by railway whichaccounts for about 30%. Due to higherdependence on roadways, logisticsindustry efficiency gets affected due totraffic bottlenecks; delay in clearing oftrucks, etc. Thus dependency on roadmakes hinterland cargo movement moreexpensive and inefficient. India burnsnearlyUS$2.5 billion worth of fuel onaccount of trucks standing idle on statecheckpostsThreatsü Poor infrastructure like road, rail road,ITü 100% FDI allowed its leads entrance offoreign player in india
  • 67. Table No 4.4.10 SWOT Analysis- Arshiya International4.5 Aegis Logistics LtdAegis Logistics Ltd is a leader in Oil, Gas and Chemical Logistics. The company isengaged in providing logistic solutions for Oil, Gas, Chemicals and Petrochemical Industries.With their strategic locations and indispensable services, Aegis is a key supplier for total supplychain management services to major customers including Oil PSUs. The company presently hasthree operating port terminals, two in Mumbai and one in Kochi, as well as two state of the artgas terminals at Mumbai & Pipavav through which they handle annually over 2 million MT ofOil, Gas and Petroleum products as well as around 400,000 MT of LPG and Propane gas.Aegis Logistics Ltd was incorporated on June 30, 1956 as a private limited companywith the name Atul Drug House Ltd. In the year 1962, the company installed their first plant forthe manufacture of formaldehyde and hexamine at Kandla. In the year 1967, they installedanother plant at Capi near Bulsar in Gujarat State for the manufacture of 14,400 tonnes offormaldehyde and 540 tonnes of hexamine per annum.In the year 1970, the company installed at Vapi a plant for the manufacture ofPentaerythritol formaldehyde with a capacity of 1,200 tonnes per annum with the technical know-how supplied by Joset Meissner of W.Germany. In September 14, 1976, the name of thecompany was changed to Atul Chemical Industries Ltd. Also, they became a public limitedcompany. The name of the company was again changed from Atul Chemical Industries Ltd toAegis Logistics Ltd.In the year 1999, the Petrochemicals Division was hived off to Perstorp Aegis ChemicalsLtd, (PACL) a joint venture company between the company and Perstorp AB, Netherlands.During the year 2007-08, as per the scheme of arrangement (SoA), Throughput ActivityUndertaking of Hindustan Aegis LPG Ltd was de-merged and transferred to the company witheffect from the appointed date, April 01, 2007.
  • 68. During the year 2008-09, Tapi Finvest India Pvt Ltd was amalgamated with thecompany. During the year 2009-10, the company entered into a strategic alliance with Essar OilLtd which entails a reciprocal arrangement wherein both the companies would sell each otherfuels through their retail outlets. In April 1, 2010, the company acquired 100% shareholding inShell Gas (LPG) India Pvt Ltd. Consequently, SGLIPL became wholly owned subsidiary witheffect from April 1, 2010. Also, the name of SCLIPL was changed to Aegis Gas (LPG) Pvt Ltd(AGPL).During the year 2010-11, the company was awarded the Operations & Maintenance(O&M) contract for the product storage and dispatch operations of Bharat Oman Refinery Ltd(BORL) at Bina in Madhya Pradesh signifying the Aegis expertise of the company in LiquidLogistic and Operations & Maintenance. Also, Aegis Gas (LPG) Pvt Ltd (AGPL), the whollyowned subsidiary of the company acquired 100% equity shares of Hindustan Aegis LPG Ltd(HAL PG), from its erstwhile shareholders. Consequently, HAL PG ceased to be an associateand became a wholly owned subsidiary of AGPL.In November 2010, the company entered into a major deal with APM Terminals Pipavavto avail on sub-lease close to 100 acres of land for building a global oil and petrochemicalsstorage complex. The company will invest up to Rs 400 crore ($90m) in building a 600,000 KLoil terminal complex in Port Pipavav. With the announcement of this project, the companysliquids capacity will rise from 300,000 KL to over 1 million KL.The companys strategy of building a necklace of port terminals around Indias coastlinefrom Pipavav to Haldia to Kochi, inland oil terminals to service the national oil companies anddeveloping a retail distribution network for the LPG business is proceeding at a steady pace.
  • 69. 4.5.1 General Reserves of Aegis Logistics LtdParticulars 2008 2009 2010 2011 2012Reserves (In Cr) 137.64 154.91 167.47 230.93 264.23Table No. 4.5.1 General Reserves of Aegis Logistics LtdChart No. 4.5.1 General Reserves of Aegis LogisticsInterpretationThe above diagram explains about the reserves and surplus of Aegis logistics Ltdhave Rs 137.64 Cr in the FY08 it was increased by 17.15Cr in the FY09. In FY12 thecompany records the 12.60% growth than the value of the reserves is Rs 264.23 Cr.Over the years the company have retain more sources so that reasons the investor canmake invest in this company strongly because the company growth in upcoming years2008 2009 2010 2011 20120.0050.00100.00150.00200.00250.00300.00137.64154.91167.47230.93264.23
  • 70. should be increase due to the Indian government give more importance for exports &imports.The company also utilize the fund for further expansion their business over theworld wide from which they attain competitive position in the field.4.5.2 Net worth of Aegis Logistics LtdParticulars 2008 2009 2010 2011 2012Networth (In Crs) 157.55 174.70 186.24 264.33 297.63Table No. 4.5.2 Net worth of Aegis LogisticsChart No. 4.5.2 Net worth of Aegis LogisticsInterpretationThe above diagram explains about the net worth of Aegis Company in which thecompany performs over the year shows good results.
  • 71. Net worth includes share capital and reserve of the company. The company hasgood net worth in over the years. In the year 2010 the value of net worth was Rs186.24Cr high in FY2011 up to Rs. 264.33Cr with 42%12.6% could be increased from in the year 2011 it stood at Rs 297.63CrIt is clear that investors can invest their fund in this company so that way it will grow infuture.4.5.3 Net sales of Aegis Logistics LtdParticulars 2008 2009 2010 2011 2012Net Sales 373.88 368.33 284.67 258.14 283.5Table No. 4.5.3 Net sales of Aegis LogisticsChart No 4.5.3 Net sales of Aegis LogisticsInterpretation2008 2009 2010 2011 2012050100150200250300350400373.88 368.33284.67258.14283.5
  • 72. The above diagram explains about the net sales of the Aegis Company inFY2008 it was records Rs. 373.88Crs. But in the FY2009 it comes down to Rs 368.33Crs.In the financial year 2010 the net sale was again reduced 83%. Later the companyrecord good results in the FY12 is Rs 283.5 Cr in previous year was Rs 258.14crMeanwhile the company have face lot of challenges because of change ingovernment policies in supply chain and the company target only gas and oil so thatreason the sales could be variation over the past financial fiscals4.5.4 Profit analysis of Aegis Logistics LtdParticulars 2008 2009 2010 2011 2012PBDIT 63.19 52.23 67.14 65.24 70.19PBDT 59.07 46.05 59.1 55.09 59.88Profit Before Tax 50.11 36.88 49.43 44.35 47.95Net Profit 39.09 30.37 38.94 31.22 41.06Table No. 4.5.4 Profit analysis of Aegis LogisticsChart No 4.5.4 Profit analysis of Aegis LogisticsInterpretation
  • 73. The above diagram explains about the profit of the Aegis Company Ltd in thePBDIT, PBDT, PBT, Net Profit indicates some variation in the last five years. It explainsabout the poor efficiency of the firm because the company does not adopt constantstrategy.As a researcher point of view, the company should be clearly defined its path inorder to achieve the better performance.4.5.5 Earning per Share of Aegis Logistics LtdParticulars 2008 2009 2010 2011 2012Earning Per Share (Rs) 19.61 18.43 20.71 9.35 12.29Table No. 4.5.5 Earning per Share of Aegis LogisticsChart No. 4.5.5 Earning per Share of Aegis LogisticsInterpretation2008 2009 2010 2011 2012051015202519.6118.4320.719.3512.29 Earning Per Share(Rs)
  • 74. The above diagram explains about the EPS of the Aegis Logistics Ltd in year2008 it have Rs 19.61 it plunged to 20.71 in FY2010. Due to variation in the sale, reflectin the EPS of the company could be down to Rs 9.35. currently the company has the EPSof Rs 12.29.Hence the upcoming years the company has to plan to expands their business allover the nation so value of the company will be increased in future4.5.6 Book value (In Rs) of Aegis Logistics LtdParticulars 2008 2009 2010 2011 2012Book Value (Rs) 79.01 103.99 99.05 79.14 89.11Table No. 4.5.6 Book value (In Rs) of Aegis LogisticsChart No. 4.5.6 Book value (In Rs) of Aegis LogisticsInterpretation
  • 75. The book value of the company share in FY12 stood at Rs. 89.11. But in FY2009the company had Rs 104 because of they have more reserves later the company utilize its fundfor expand their operation so that reason the book value could be down in the year 2010 and2011.4.5.8 PROFITABILITY RATIOSParticulars 2008 2009 2010 2011 2012Operating Profit Margin(%) 16.38 12.78 20.49 22.2 21.99Gross Profit Margin(%) 13.98 10.29 17.09 18.04 17.99Net Profit Margin(%) 10.39 8.09 13.38 11.73 13.96Return On CapitalEmployed(%) 27.7 21.94 20.88 16.58 16.15Return On Net Worth(%) 24.81 17.72 20.9 11.8 13.79Return on Long Term Funds(%) 27.7 22.31 22.14 17.29 18.06Table No 4.5.8 Profitability Ratios
  • 76. Chart No 4.5.8 Profitability RatiosINFERENCEThe operating profit margin of the aegis logistics continuously increased over the past five yearscurrently the company records 21.99%. Gross Profit Margin increased due to increase in totalsales. Net Profit Margin was stood at 13.96% it was increased from 11.73% in previous year.4.5.9 Liquidity And Solvency RatiosParticulars 2008 2009 2010 2011 2012Current Ratio 1.66 1.3 1.59 1.81 1.21Quick Ratio 1.5 1.22 2.18 2.41 2.28Debt Equity Ratio 0.25 0.17 0.41 0.24 0.27Long Term Debt Equity Ratio 0.25 0.17 0.33 0.19 0.13Table No 4.5.9 Liquidity And Solvency Ratios2008 2009 2010 2011 2012051015202530Operating ProfitMargin(%)Gross Profit Margin(%)Net Profit Margin(%)Return On CapitalEmployed(%)Return On NetWorth(%)Return on Long TermFunds(%)
  • 77. Chart No4.5.9 Liquidity And Solvency RatiosINFERENCEThe above diagram explains about the Liquidity ratio and solvency ratio of Aegis Logistics Ltdwhere as there is slight variation on current ratio over five years. Quick ratio increased overthe years but in FY12 the company has 2.28:1 of quick ratio. Debt Equity Ratio denotes thecompany use only owner’s funds over the years. Long term debt Equity ratio was 0.13X in 2012.It was in 0.13 times in 20114.5.10 Financial highlights of Aegis Logistics Ltd• In the FY2009, the company had buy back total of 10,20,473 equity shares at price notexceeding Rs.143 per share through open market transactions for an aggregate amountof Rs. 3.47Cr consequently the issue and paid up equity shares capital of the companystands reduced to Rs. 16.44Cr.• In the FY2010, the company had issued and allotted 12506710 equity shares at Rs.10 pershare as bonus share in the proportions of two share for every existing 3 fully paid up2008 2009 2010 2011 201200.511.522.53Series 1Series 2Current RatioQuick Ratio
  • 78. shares so that reasons the company shares value stood at Rs.33.40 till current financialyear 2012.• The reserves and surplus of the company shows that an excellent performance over thepast five years. In the FY2011 shows that abnormal growth up to 37.89% increased, inFY2012 the reserves and surplus could be stood at 14% in past five years the companyshows 91% they retain their earnings for future expansions.• The company spent their resources for buying more plant & equipments in FY12 spentup to Rs.464Crs and vehicles brought about 45.43Crs. But also intangible assets likecomputer software it acquires up to Rs. 81Crs. From this point of view, the companyadopts new technologies• Aegis logistics ltd’s investment parameters shows that there is an up down movements inFY2011 Rs 94.53Cr its was increased from 122% in the previous year. But in FY2012,the level could be increased up to 27% about Rs27.23Crs• Inventories are valued at cost or net realizable Value whichever is less. Cost isdetermined by using the first in first out formula. Cost comprises all costs of purchase,cost of conversion and cost incurred to bring inventories to their present location andcondition other than those subsequently recoverable by company form tax authorities.• The level of sundry debtors value could be increased over the past five years in FY12 isshows that Rs.31.41Crs• Aegis company adopts just in time inventory concept in which they would not focuson inventories because all material in movements. So the inventory level continuouslydecreased.• Aegis Company they deposit level could be increased over the past performance in thisway the firm deposit their amount in banks for increase the current ratio position in themarkets.• The firm lends loans and advances to their subsidiaries and other government deposit inFY12 they provide Rs.81.14Crs.• Meanwhile the total current asset could be increased up to Rs 30.63crs. Due to increasedinterest accrued on fixed deposits, unamortized interest on buyers’ credit & premium onOption contracts, unamortized premium on share and Debentures increased to Rs 5crs.• The company short term borrowings could be increased still it stood at Rs.12.99Crs
  • 79. • The current liabilities of aegis shows that fluctuation over the past five years in the FY12the company increased about Rs 14.27 Crs• The company had a continuous poor performance on sales over the past four years. InFY12 that records 10% slight growth in sales.• Due to low production that one reason for reduction in decline in sales in past four years.•During the year the company has registered income from operation of Rs. 62.36Crs.ascompared to Rs. 57.32Crs In FY2011.• Profit before Depreciation Interest and Tax (PBDIT) has increased Rs 4.95Cr. For the yearended March 31, 2011 PBDIT was Rs.65.24 Cr. It showing an increase of 7.5%. DuringFY2012, the company has recorded PBDIT of Rs 70.19Crs of the income from operationas against -2% during FY2011.•In the year 2008, the company performs Rs39.09Cr level of net profit in FY09 it wasdecreased of Rs. 8Crs then stood at Rs.30.37Crs. in the FY10 the level of profit couldbe increased 28%. Finally in the FY12 the company records the Rs41.06Crs. It wasincreased from 31% in the past FY11.•The book value of the company shows that there is a fluctuation in over past financialyears. Now it stand at Rs 89.00•EPS calculation made over the years indicate whether or not the firm’s earnings on pershare basis has changed over the period under this case the company EPS shows thatsome variation over the past five financial years. In FY12, Aegis company EPS stood atRs. 12.29 the face value is Rs 10 only.• The company recommends the dividend of Rs 6.68 in FY12. It was 20% low compare to previous financial year 2011.• The gross profit ratio reflects the efficiency with which management produce each unitof product. This is explaining about the relative to sales after the deduction of productioncosts, and indicates the relation between production costs, and selling price. Under thiscase aegis record over the past financial years it shows good results it increase to 22% inFY12• The ratio of return of net worth was in FY2008 was 13.79% it was increased in FY12 wasstood at 27.70%
  • 80. • The company recommends Rs 2.50 in FY12. Due to retains their resources as generalreserves.• Net profit margin ratio means a relationship between net profit and sales and indicatesmanagement’s efficiency in manufacturing, administering and selling products. In aegiscompany’s net profit margin indicate that some variations in past five years. In FY12 itstands at 13.96% it was increased from pervious financial years 11.73%.• The current ratio of aegis’s company shows that there is constant position over the years.• Number of days in working capital in the FY12 is increased because of the lot ofcompletion in the markets. So the working capital cycle now in 144 days.4.5.11 SWOT Analysis of Aegis Logistics Ltd
  • 81. Strengthü Strong brand image.ü Quality and reliability.ü A leader in Oil, Gas and ChemicalLogisticsü Direct delivery capabilityü Strength market position in west Indiasegment like Karnataka, Maharashtra,Gujarat.Weaknessü Government influence over price of oil,gas and chemicalü Bad infrastructure in India like road,communication, portOpportunitiesü Could seek better supplier dealsüLarge, potential domestic andinternationalü to utilize their general reserve for futureexpansionü company can enter in to east IndiasegmentThreatsü Competition from low quality from localterminalsü LPG domestic sector subsides continueto eat into margins and sales as domesticcooking gas gets illegally diverted intoother market segment such as autogasand commercial cylinder.ü Bad infrastructure facilities in India.Table No 4.5.11 SWOT Analysis of Aegis Logistics
  • 82. 1.6 COMPETITIVE ADVANTAGES ANALYSIS4.6.1 RESERVE AND SURPLUS OF INDUSTRYCompany NameReserve and Surplus2008 2009 2010 2011 2012Aegis Logistics 137.64 154.91 167.47 230.93 264.23Allcargo Logistics 361.65 443.53 765.18 951.68 1113.16Aqua Logistics 28.48 44.52 206.47 493.61 491.56Arshiya International 445.23 475.36 483.91 502.62 540.81Container Corporation of India 3118.93 3632.23 4206.42 4847.83 5476.45Industries Average 818.39 950.11 1165.89 1405.33 1577.24Table No 4.6.1 Reserve and Surplus of IndustryChart No 4.6.1 Reserve and Surplus of IndustryInferenceThe above diagram explain about the reserve and surplus of the logistics industry in which theContainer Corporation of India has more resources compare to its competitors
  • 83. 1.1.2 NET WORTH OF INDUSTRYCompany NameNetworth2008 2009 2010 2011 2012Aegis Logistics 157.55 174.70 186.24 264.33 297.63Allcargo Logistics 385.51 496.87 791.79 979.01 1140.14Aqua Logistics 39.94 57.44 227.01 523.61 521.56Arshiya International 458.97 490.1 496.84 514.89 552.58Container Corporation of India 3183.92 3762.21 4336.40 4977.81 5606.43Industries Average 845.178 996.264 1207.656 1451.93 1623.668Table No 4.6.2 Net Worth Of IndustryChart No 4.6.2 Net Worth Of IndustryInferenceThe diagram explain about the net worth of industries where as the average of industriescould be increased over the past five years. In which the Container Corporation of India hasgreater than the average. The remaining companies have the below the average. AllcargoLogistics have the chance to prosperity in future. But Aegis performs similar result over the2008 2009 2010 2011 20120.001000.002000.003000.004000.005000.006000.007000.00Aegis LogisticsAllcargo LogisticsAqua LogisticsArshiya InternationalContainer Corporation ofIndiaSeries 6Series 7Series 8Series 9Series 10
  • 84. years.1.1.3 SALESCompany NameNet Sales2008 2009 2010 2011 2012Aegis Logistics 373.88 368.33 284.67 258.14 283.5Allcargo Logistics 361.25 516.79 516.76 699.84 1,079.43Aqua Logistics 108.99 213.4 322.01 380.88 310.35Arshiya International 201.91 256.39 273.61 453.01 592.63Container Corporation of India 3347.30 3417.16 3705.68 3828.12 4060.95Industries Average 878.666 954.414 1020.546 1123.998 1265.372Table No 4.6.3SALESChart No 4.6.3SALESINFERENCEThe diagram denotes that Net Sales of the overall industries the Container Corporation of Indiahave good performance over the years it had more sales compare to the industries averages.Allcargo Logistics nearly touch the average in the FY12 then Arshiya International shows that2008 2009 2010 2011 201205001,0001,5002,0002,5003,0003,5004,0004,5005,000Aegis LogisticsAllcargo LogisticsAqua LogisticsArshiya InternationalContainer Corporation ofIndiaIndustries Average
  • 85. beat performance in the past five years. But Aegis and Aqua Logistics most horrible performancecompare to other companies.1.1.4 TOTAL INCOMECompany NameTotal Income2008 2009 2010 2011 2012Aegis Logistics 375.8 366.81 298.37 263.46 291.04Allcargo Logistics 365.27 536.82 532.1 742.77 1130.49Aqua Logistics 79.72 132.66 144.69 182.44 309.02Arshiya International 207.26 266.21 280.03 474.75 630.01Container Corporation of India 3506.02 3620.73 3869.75 4001.57 4377.49Industries Average 906.814 984.646 1024.988 1132.998 1347.61Table No 4.6.4 Total IncomeChart No 4.6.4 Total IncomeINFERENCEThe diagram explains about the total income of the companies. The industries average ofin the year 2012 Rs. 1347.61Crs but the Container Corporation of India sales corresponding yearis Rs. 4377Crs their contribution is highest than other companies. The Allcargo shows also near2008 2009 2010 2011 201201,0002,0003,0004,0005,0006,0007,0008,000Aegis LogisticsAllcargo LogisticsAqua LogisticsArshiya InternationalContainer Corporation ofIndiaSeries 6Series 7Series 8Series 9Series 10
  • 86. to the average. But Aegis company performance has the variation over the five years even itsbelow the average. While compare to total income of the industry. The Container Corporation ofIndia has the competitive advantage in the industries.1.1.5 Operating ProfitCompany NameOperating Profit2008 2009 2010 2011 2012Aegis Logistics 61.27 47.09 58.34 57.32 62.36Allcargo Logistics 79.72 132.66 144.69 182.44 309.02Aqua Logistics 12.77 22.35 32.91 35.76 15.78Arshiya International 14.03 20.7 22.16 53.13 128.65Container Corporation of India 890.73 931.12 961.97 1002.69 1023.73Industries Average 211.704 230.784 244.014 266.268 307.908Table No 4.6.5Operating ProfitChart No 4.6.5Operating ProfitINFERENCE2008 2009 2010 2011 201202004006008001,0001,2001,4001,6001,800Aegis LogisticsAllcargo LogisticsAqua LogisticsArshiya InternationalContainer Corporation of IndiaIndustries Average
  • 87. The above diagram explains the operating profit of the industries. This ratio used to discuss thegeneral profitability of the concern. The Container Corporation of India more than the industryaverage it shows that more efficiency firm. Allcargo Company is near to the average in the year2012. But the balance three companies much could be improves its performance because itdenotes lower efficiency.1.1.6 PBIDTCompany NamePBDIT2008 2009 2010 2011 2012Aegis Logistics 63.19 52.23 67.14 65.24 70.19Allcargo Logistics 83.74 152.69 160.03 225.37 360.08Aqua Logistics 13.19 23 32.8 36.61 17.36Arshiya International 19.38 30.52 28.58 74.87 166.03Container Corporation of India 1049.45 1134.69 1126.04 1176.14 1340.27Industries Average 245.79 278.626 282.918 315.646 390.786Table No 4.6.6 PBIDTChart No 4.6.6 PBIDT2008 2009 2010 2011 201202004006008001,0001,2001,4001,600Aegis LogisticsAllcargo LogisticsAqua LogisticsArshiya InternationalContainer Corporation ofIndiaIndustries Average
  • 88. INFERENCEThe diagram denotes the Profit Before Depreciation Interest and Taxes of the companieswhere as Container Corporation of India is more than the company average. Other companies arebelow the average in which Allcargo is in the year 2012 near to the average.1.1.7 PROFIT BEFORE TAXCompany NameProfit Before Tax2008 2009 2010 2011 2012Aegis Logistics 50.11 36.88 49.43 44.35 47.95Allcargo Logistics 66.96 109.11 106.19 157.26 220.49Aqua Logistics 8.8 17.11 26.14 25.48 1.71Arshiya International 18.02 28.14 22.26 36.35 69.19Container Corporation of India 942.87 1018.72 990.85 1030.61 1181.78Industries Average 217.352 241.992 238.974 258.81 304.224Table No 4.6.7 Profit Before Tax2008 2009 2010 2011 201202004006008001,0001,200Aegis LogisticsAllcargo LogisticsAqua LogisticsArshiya InternationalContainer Corporation ofIndiaSeries 6Series 7Series 8Series 9Series 10
  • 89. Chart No 4.6.7 Profit Before TaxINFERENCEThe Profit Before Taxes is the difference between profit before interest and taxes andinterest charge (PBT=PBIT-INT). PBT may also include non-operating profit. Whereas theabove diagram explains that the Container Corporation of India earns more PBT. The othercompanies never touch the companies’ averages.1.1.8 NET PROFITCompany NameNet Profit2008 2009 2010 2011 2012Aegis Logistics 39.09 30.37 38.94 31.22 41.06Allcargo Logistics 59.78 92.67 97.81 121.13 184.07Aqua Logistics 5.61 11.15 20.54 22.39 1.15Arshiya International 12.36 18.49 15.4 24.93 47.51Container Corporation of India 752.21 791.2 786.69 875.95 877.88Industries Average 173.81 188.776 191.876 215.124 230.334Table No 4.6.7 Profit Before Tax2008 2009 2010 2011 20120100200300400500600700800900Aegis LogisticsAllcargo LogisticsAqua LogisticsArshiya InternationalContainer Corporation ofIndiaSeries 6Series 7Series 8Series 9Series 10
  • 90. 4.6.7 Profit Before TaxINFERENCEThe diagram explains about Net Profit of the company in which Container Corporation ofIndia is earn more profit compare to its overall companies. It have the competitive advantage inthe market. All cargo in the year 2012 near to industries average so it have superior growthupcoming years1.1.9 EARNING PER SHARECompany NameEarning Per Share (Rs)2008 2009 2010 2011 2012Aegis Logistics 19.61 18.43 20.71 9.35 12.29Allcargo Logistics 29.51 41.44 7.84 9.28 14.1Aqua Logistics 4.9 8.63 10 0.75 0.04Arshiya International 2.17 3.15 2.62 4.24 8.08Container Corporation of India 115.74 60.87 60.52 67.39 67.54Industries Average 34.386 26.504 20.338 18.202 20.41Table No 4.6.9 Earning Per Share
  • 91. Chart No 4.6.9 Earning Per ShareINFERENCEThe profitability of the shareholders’ investments can also be measured in this way likeEPS. It indicate whether or not the firm’s earning power on per share basis has changed over theperiod. The diagram shows that the Container Corporation of India has more earning per sharecompare to its companies. The others are below the companies’ average1.1.10 NET PROFIT MARGIN (%)Company NameNet Profit Margin(%)2008 2009 2010 2011 2012Aegis Logistics 10.39 8.09 13.38 11.73 13.96Allcargo Logistics 16.48 17.76 18.5 16.79 16.28Aqua Logistics 5.14 5.22 6.37 5.85 0.36Arshiya International 5.94 7 5.45 5.25 7.54Container Corporation of India 21.45 21.92 20.32 21.88 20.05Industries Average 11.88 11.998 12.804 12.3 11.638Table No 4.6.10 Net Profit Margin2008 2009 2010 2011 2012115.7460.87 60.5267.39 67.54Aegis LogisticsAllcargo LogisticsAqua LogisticsArshiya InternationalContainer Corporation of India
  • 92. Chart No4.6.10 Net Profit MarginINFERENCENet Profit Margin ratio establishes a relationship between net profit and sales and indicatesmanagement’s efficiency in manufacturing, administering and selling products. This ratio is theoverall measure of the firm’s ability to turn each rupee sales into profit. If the net margin isinadequate, the firm will fail to achieve satisfactory return on shareholder’s funds. Whereas thediagram explains that Container Corporation of India have more efficiency compare to othercompanies. The other companies’ performances are below the average of the industries.1.1.11Current RatioCompany Name Current RatioCompany Name 2008 2009 2010 2011 2012Aegis Logistics 1.66 1.3 1.59 1.81 1.21Allcargo Logistics 1.55 3.33 2.98 2.65 2.08Aqua Logistics 5.06 5.95 2.75 5.89 3.26Arshiya International 6.46 0.75 1.3 1.27 2.02Container Corporation of India 2.65 2.66 3.03 3.63 4.15Industries Average 3.476 2.798 2.33 3.05 2.544Table No 4.6.11 Current Ratio2008 2009 2010 2011 201221.45 21.92 20.32 21.88 20.05Aegis LogisticsAllcargo LogisticsAqua LogisticsArshiya InternationalContainer Corporation of IndiaSeries 6Series 7Series 8Series 9Series 10
  • 93. Chart No 4.6.11 Current RatioINFERENCEThe current ratio is a measure of the firms’ short term solvency. As conventional rules, acurrent ratio of 2:1 or more is considered satisfactory. Whereas the diagram explains about thecurrent ratio of the companies in which the Container Corporation of India have the grater themargin of safety. But Aegis Logistics company ratio indicates that inadequate margin of safetyfor creditors. Arshiya International have the variation over the past five years later in the FY12company has good performance. Allcargo has also records good performance over the years4.7 BRIEF HISTORY OF BOSTON CONSULTANCY GROUPThe Boston Consulting Group was started up in 1963 by Bruce Henderson and from itsinception sought to establish itself in the planning and was considered the pioneer of BusinessStrategy analysis. Boston Consulting Group was founded as the Management and ConsultingDivision of the Boston Safe Deposit and Trust Company - a subsidiary of The Boston Company.In 1968, The Boston Company spinned off BCG as a separate subsidiary.In 1965 Henderson thought that to survive, much less grow, in a competitive landscape occupiedby hundreds of larger and better-known consulting firms, a distinctive identity was needed,2008 2009 2010 2011 20120123456Aegis LogisticsAllcargo LogisticsAqua LogisticsArshiya InternationalContainer Corporation ofIndiaSeries 6Series 7Series 8Series 9Series 10
  • 94. and pioneered "Business Strategy" as a special area of expertise for BCG.As his client listgrew, Henderson targeted the nations best business schools. At some point he was said tohave eclipsed McKinsey as the top recruiter at Harvard, aggressively wooing its best studentswith high salaries and the chance to make a difference in a cutting-edge firm. He encouragedthe brilliant young minds he hired to come up with innovative ideas that were meant to dazzlehardened corporate veterans.In 1973 Bill Bain and others left BCG to form Bain & Company, and two years later Hendersonarranged an employee stock ownership plan (ESOP), so that the employees could take thecompany independent from The Boston Safe Deposit and Trust Company. The buyout of allshares was completed in 1979.In 1998 BCG created The Strategy Institute. Its purpose is to enrich the firms strategic thinkingby applying insights from a variety of academic disciplines to the strategic challenges facingboth business and society.The Boston Consulting Group (BCG) ranked 8th overall and first among smaller companiesin Fortune Magazines 2007 "100 Best US Companies to Work For" survey, based on strongemployee development, a supportive culture, and progressive benefits.4.7.1 BCG Growth-Share MatrixIn the late 1960’s a consultant for the Boston Consulting Group presented his ideas about ‘cashdeficient’ and ‘growth deficient’ businesses and the need for a balance between cash generatorsand cash users.In the late 1960’s the Boston Consulting Group developed a portfolio business model basedon this thinking. The model, the BCG matrix or growth/share matrix, was based on the BostonConsulting Group’s knowledge and work in the area of the experience curve and of the productlife cycle and how they relate to cash generation and cash requirements.
  • 95. The growth-share matrix was intended to analyse a portfolio from a corporate perspectivebecause it is only at that level that cash balance is meaningful. A business may, however, besegmented further using this diagnostic tool to understand the positions of its various productlines or market segments. This portfolio can therefore be made up of products in a multi-productcompany, divisions in a multidivisional company and companies in a conglomerate.The BCG Growth-Share Matrix is based on the observation that a companys business units canbe classified into four categories based on combinations of market growth and market sharerelative to the largest competitor, hence the name "growth-share". Market growth serves as aproxy for industry attractiveness, and relative market share serves as a proxy for competitiveadvantage. The growth-share matrix thus maps the business unit positions within these twoimportant determinants of profitability The BCG Growth-Share Matrix positions the variousSBUs/product lines on the basis of Market Growth Rate and Market Share relative to the mostimportant competitor as shown below;Relative market shareThis indicates likely cash generation, because the higher the share the more cash will begenerated. As a result of economies of scale (a basic assumption of the BCG Matrix), it isassumed that these earnings will grow faster the higher the share. The exact measure is thebrands share relative to its largest competitor. Thus, if the brand had a share of 20 percent, andthe largest competitor had the same, the ratio would be 1:1. If the largest competitor had a shareof 60 per cent, however, the ratio would be 1:3, implying that the organizations brand was ina relatively weak position. If the largest competitor only had a share of 5 per cent, the ratiowould be 4:1, implying that the brand owned was in a relatively strong position, which might bereflected in profits and cash flows. If this technique is used in practice, this scale is logarithmic,not linear.On the other hand, exactly what is a high relative share is a matter of some debate. The bestevidence is that the most stable position (at least in FMCG markets) is for the brand leader tohave a share double that of the second brand, and triple that of the third. Brand leaders in thisposition tend to be very stable - and profitable.
  • 96. The reason for choosing relative market share, rather than just profits, is that it carries moreinformation than just cash flows. It shows where the brand is positioned against its maincompetitors, and indicates where it might be likely to go in the future. It can also show what typeof marketing activities might be expected to be effective.Market growth rateRapidly growing brands, in rapidly growing markets, are what organizations strive for; but thepenalty is that they are usually net cash users - they require investment. The reason for this isoften because the growth is being bought by the high investment, in the reasonable expectationthat a high market share will eventually turn into a sound investment in future profits. The theorybehind the matrix assumes, therefore, that a higher growth rate is indicative of accompanyingdemands on investment. The cut-off point is usually chosen as 10 per cent per annum.Determining this cut-off point, the rate above which the growth is deemed to be significant (andlikely to lead to extra demands on cash) is a critical requirement of the technique; and one that,again, makes the use of the BCG Matrix problematical in some product areas. What is more, theevidence, from FMCG markets at least, is that the most typical pattern is of very low growth, lessthan 1 per cent per annum. This is outside the range normally considered in BCG Matrix work,which may make application of this form of analysis unworkable in many markets.Where it can be applied, however, the market growth rate says more about the brand positionthan just its cash flow. It is a good indicator of that markets strength, of its future potential(of its maturity in terms of the market life-cycle), and also of its attractiveness to futurecompetitors. It can also be used in growth analysis.Resources are allocated to business units according to where they are situated on the gridas follows:Dog - a business unit that has a small market share in a mature industry. A dog may notrequire substantial cash because dogs have low market share and a low growth rate and thusneither generate nor consume a large amount of cash, and dogs are cash traps because of themoney tied up in a business that has little potential and the capital that could better be deployedelsewhere. Unless a dog has some other strategic purpose, such businesses are candidates for
  • 97. divestiture, and it should be liquidated if there is little prospect for it to gain market share.Question Mark (or Problem Child) - a business unit that has a small market share in a highgrowth market. Question marks are growing rapidly and thus consume large amounts of cash,but because they have low market shares they do not generate much cash. The result is large netcash consumption. A question mark (also known as a "problem child") has the potential to gainmarket share and become a star, and eventually a cash cow when the market growth slows. Ifthe question mark does not succeed in becoming the market leader, then after perhaps years ofcash consumption it will degenerate into a dog when the market growth declines. Question marksmust be analyzed carefully in order to determine whether they are worth the investment requiredto grow market share.Star - a business unit that has a large market share in a fast growing industry. Stars generatelarge amounts of cash because of their strong relative market share, but also consume largeamounts of cash because of their high growth rate; therefore the cash in each directionapproximately nets out. If a star can maintain its large market share, it will become a cash cowwhen the market growth rate declines. The portfolio of a diversified company always shouldhave stars that will become the next cash cows and ensure future cash generation. If successful, astar will become a cash cow when its industry matures.Cash Cow - a business unit that has a large market share in a mature, slow growing industry.As leaders in a mature market, cash cows exhibit a return on assets that is greater than themarket growth rate, and thus generate more cash than they consume. Such business units shouldbe "milked", extracting the profits and investing as little cash as possible. Cash cows provide thecash required to turn question marks into market leaders, to cover the administrative costs of thecompany, to fund research and development, to service the corporate debt, and to pay dividendsto shareholders. Because the cash cow generates a relatively stable cash flow, its value can bedetermined with reasonable accuracy by calculating the present value of its cash stream using adiscounted cash flow analysis. Cash cows require little investment and generate cash that can beused to invest in other business units.
  • 99. Company Name Company Growth Market share in 2012Aegis Logistics -24.17 4.48Allcargo Logistics 198.80 17.06Aqua Logistics 184.75 4.91Arshiya International 193.51 9.37Container Corporation of India 21.32 64.19Table No 4.7.1 Market Share and Growth of companiesMarket shares and market growth are calculated from net sales of the companies. It covers fiveyears periods.Chart No 4.7.2 Market Share of logistics companies in IndiaRelative market share
  • 100. RelativeMarketGrowthHIGH LOWHIGHStars Question MarksLOWCash Cows DogsTable No 4.7.3 BCG Matrix for Logistics Industry in India1. StarsThe stars though generate funds but need to be constantly invested into because their prospectusof becoming cash cows depends on the pre-requisite of them being the market leader. Container
  • 101. Corporation of India, Arshiya International comes this position in which the company takefollowing strategic decisionMarket Development• The Allcrgo Logistics Company can develop new product to capture market share in theindustry. Currently company hold high in growth due to earn more profit over the fiveyearsMarket penetration• CONCORE can penetrate in to develop rail road to connect new cities, implementdeveloped technologies• Arshiya International can improve their warehousing facilities to speed up the deliverytime2. Question marksSince they are the new entrants or strugglers in the market for major share where themarket is changing at a high pace, efforts are being made to make sure that the gain on theirmarket share. Arshiya International comes under this positionProduct development• To develop wide range of product in order to catch the new market in India also inaboard• To improve the 3PL segment it leads to increase the market growth3. Cash cows
  • 102. Since the cows needed to be milked now and then, and efforts are to be made to ensure that theymaintain the largest share in the market the following strategies are being adopted by AegisLogistics LtdProduct development• CONCORE can develop their market into air cargo, to cover new market to increase itsoperation in order to maintain this position in this industry• CONCORE can develop market in pipe line logistics segment• The company can come in to cargo handling segment, warehousing, container etc• The company may enter in to 3PL in segmentConcentric diversificationThe COCORE Company may add extra value to its existing product like new pipe linebetween new markets. Focus to India market segment like road segment, airways4. DogsThey are run on breakeven point and in the eyes of an accountant they are not even viable. Butcan be important for synergiesAegis Logistics and Aqua Logistics comes under dog criteria in which the company deal withsingle segment so the company can diversify their business into various segment it increase theirvalue in the marget.Divestments• The company can come in to cargo handling segment, warehousing, container etc• The company may enter in to 3PL in segment• The company can improve their operation by way of increase the market segment.4.8 GE MATRIX FOR LOGISTICS INDUSTRY
  • 103. GE / McKinsey Matrix are strategic and marketing management tool used for portfolioanalysis. Most of the time, this tool is used for analyzing the portfolio of products, services, andstrategic business units. GE Matrix is similar to BCG Matrix and it is an extension of the BCGMatrix approach - multifactor portfolio analysis tool. The GE Matrix compares differentbusinesses on "Business Strength" and "Market Attractiveness" variables, plus the size of thebubbles in the matrix represents the market size instead of business sales used in the BCGMatrix. The share of the market or business sales vs. market size is represented as pie chartinside the bubbles in the matrix. This allows business users to compare business strength, marketattractiveness, market size, and market share for different strategic business units (SBUs) ordifferent product offerings on one matrix or chart.4.8.1 GE MATRIX - ALTERNATIVE POSITIONS & STRATEGIESThe GE / McKinsey Matrix is divided into nine cells - nine alternatives for positioning ofany SBU or product offering. Based on the strength of the business and its market attractivenesseach SBU will have a different position in the matrix. Further, the market size and the currentsales will distinguish each SBU. Based on clear understanding of all of these factors decisionmakers are able to develop effective strategies.The nine cells in the matrix can be grouped into three major segments:Segment 1: This is the best segment. The business is strong and the market is attractive. Thecompany should allocate resources in this business and focus on growing the business andincrease market share.Segment 1
  • 104. Segment 2: The business is either strong but the market is not attractive or the market is strongand the business is not strong enough to pursue potential opportunities. Decision makers shouldmake judgment on how to further deal with these SBUs. Some of them may consume to muchresources and are not promising while others may need additional resources and better strategyfor growth.Segment 2Segment 3: This is the worst segment. Businesses in this segment are weak and their market isnot attractive. Decision makers should consider either repositioning these SBUs into a differentmarket segment, develop better cost-effective offering, or get rid of these SBUs and invest theresources into more promising and attractive SBUs.Segment 3
  • 105. 4.8.2 MARKET SHARE & GROWTH OF SELECTED LOGISTICSCOMPANIES IN 2012Company Name Company Growth Market share in 2012Aegis Logistics -24.17 4.48Allcargo Logistics 198.80 17.06Aqua Logistics 184.75 4.91Arshiya International 193.51 9.37Container Corporation of India 21.32 64.19Table No Market share & Market Growth4.8.3 GE MATRIX FOR LOGISTICS INDUSTRYHigh Medium LowHighMediumLowMARKETATTRACTIVENESSBusiness Unit StrengthAllcargoAegisCCIAquaArshiya
  • 106. INFERENCE• In India the industry attractiveness is highly increased over a decades. Indiaallowed FDI 100% though the performance of logistics company showsexcellent performance• by using GE matrix, the Allcargo have more market attractiveness andmarket growth and market share in among companies• Arshiya International having good growth in market so it below the marketshares. So the company can increase their market shares by increasing theoperation in up coming periods• The Container Corporation of India had competitive position in Indianmarket but the growth of the company is less than the Allcargo. Thecompany can increase their capacity over the market• Aegis Logistics company leader in Oil, Gas and Chemical segment but itsperformance was comes under negative points because of it focus particularsegment so the company can set up new plants. To cover the all over theIndia• The performance of Aqua logistics company denotes that company havinggood financial records over the years so the growth of the company goesdouble digits even the market share remain in constants its face the lot ofcompetitions in the market
  • 107. 4.9 SWOT ANALYSIS OF INDIAN LOGISTICS INDUSTRY4.9.1 Strength and weakness• Logistics industry contribute 10-13 % in GDP in India• Ranked at 46th position in world in 2012• Vital role in import and export business• Cheap labour available in India• Improve infrastructure like development of new roads, rail road, ports• 100% in FDI in India• Quality and reliability• Direct delivery capability• Currently industry use latest technology4.9.2 Weakness• Poor performance in infrastructure facilities in india• Lack of experienced people while taking strategic decisions• Poor physical facilities like road, port, rail road, IT etc• State and central government policies over its industry like import restriction over certainproducts and export for certain scare products• Competitors from international players like DHL, UPS, TNT, FEDEX, Blue Dart etc• Indian logistics company adopt inadequate technology compare to foreign competitors4.9.3 Opportunities and ThreatsOpportunities - Growth and future of 3PL Market in IndiaCRISIL Research has estimated the 3PL market in India at Rs 47-50 billion in 2008-09, which isexpected to grow at a CAGR of 27% to Rs162-165 billion by 2013-14.3PL penetration has been the highest in sectors such as cars and organized retail. The segment isalso gaining importance in other sectors such as IT hardware and FMCG. The share of 3PL in theoverall logistics market is expected to increase from around 1.5 - 2.0% in 2008-09 to around3.5 – 4% by 2013-14. The benefits would accrue in the form of:• Reduction in warehousing space requirement• Improvement in efficiency due to better inventory management
  • 108. • Reduction in transportation cost due to higher capacity utilisationThe segment is also gaining importance in other sectors such as Power, Infrastructure,IThardware and FMCG.Threats - Key Challenges faced by the Indian Logistics Sector1. Logistics has historically been a high-cost, low-margin business. The problem of organizedplayers is compounded by unfair competition with unorganized players, who can get awaywithout paying taxes and following operating norms stipulated in the Motor Vehicles Act such asquality of drivers and vehicles, volume and weight restrictions, etc.2. Economies of scale are absent in the Indian logistics industry. Even the organized sectorthat contributes slightly more than 1% of the logistics cost, is highly fragmented. Existences ofthe differential sales tax structure have brought in diseconomies of scale. Though VAT (ValueAdded Tax) has been implemented since April 1, 2005, failure in implementation of a uniformVAT structure across different states has let the problem persist even today.3. Apart from the non-uniform tax structure, Indian LSPs have to pay numerous other taxes,octopi, and face multiple check posts and harassment from authorities. High costs of operationand delays involved in compliance with varying documentation requirements of different statesmake the business unattractive. It is assumed that on an average, a vehicle on Indian roads loses24-48 hours in complying with paperwork and formalities at different check posts en route to adestination and also precious fuel is spent waiting at check posts.4. There is lack of trust and awareness among Indian shippers with regard to outsourcinglogistics. The volume of outsourcing by Indian shippers is presently very low (~ 10%) comparedto the same for the developed countries (> 50%, sometimes as high as 80%). The unwillingnessto outsource logistics on part of Indian shippers may be attributed to scepticism about thepossible benefits, perceived risk, and losing control, of sensitive organizational information, andvested interests in keeping logistics activities in-house.5. Indian shippers expect LSPs to own quality assets, provide more value-added services andact as an integrated service provider, and institute world-class information systems for morevisibility and real-time tracking of shipments. However, they are unwilling to match the samewith increased billings; even pay little attention to timely payments that leave LSPs short ofadequate working capital.
  • 109. 6. Indian freight forwarders face stiff competition from multi-national freight forwarders forinternational freight movement. MNCs, because of their size and operations in many countries,are able to offer low freight rates and extend credit for long periods. Indian freight forwarders, onthe other hand, because of their smaller size and lack of access to cheap capital, are not able tomatch the same.7. Poor physical and communications infrastructure is another deterrent to attracting investmentsin the logistics sector. Road transportation accounts for more than 60% of inland transportationof goods, and highways that constitute 1.4% of the total road network, carry 40% of the freightmovement by roadways. Slow movement of cargo due to bad road conditions, multiple checkposts and documentation requirements, congestion at seaports due to inadequate infrastructure,bureaucracy, red-tapism and delay in government clearances, coupled with unreliable powersupply and slow banking transactions, make it difficult for exporters to meet the deadlines fortheir international customers. To expedite shipments, they have to book as air freight, rather thansea freight, which adds to the costs of shipments making them uncompetitive in internationalmarkets.8. Low penetration of IT and lack of proper communications infrastructure also result in delays,and lack of visibility and real-time tracking ability. Unavailability and absence of a seamlessflow of information among the constituents of LSPs creates a lot of uncertainty, unnecessarypaperwork and delays, and lack of transparency in terms of cost structures and service delivery.9. Shippers would like LSPs to offer more value-added services and a single-stop solution toall their logistical problems. The inability of service providers to go beyond basic services andprovide value-added services such as small repair work, kitting/de-kitting, packaging/labeling,order processing, distribution, customer support, etc. has not been able to motivate shippers to gofor outsourcing in a big way.10. There is lack of skilled and knowledgeable manpower in the logistics sector. Managementgraduates do not consider logistics as a prime job. To improve the status of the industry, serviceproviders have to move beyond the level of brokers and truckers to attract and retain talent.
  • 110. CHAPTER IVFINDINGS AND CONCLUSION5.1 FINDINGS• The Container Corporation of India records good financial performance in past fiveyears. In which the company have more reserves compare to its company with inindustry. So the company enjoyed competitive position in the market.• CONCORE was leader in rail road segment. Because the company has major player inrail way cargo handling followed by Arshiya International, Allcargo Logistics.• Even the Allcargo Logistics Company had good performance in both market growth andmarket shares in past five years. Because the company operates worldwide level up to 65countries.• Aegis Logistics enjoy as leader in Oil, Gas, Chemical handing the company hadpoor financial performance over five years because of poor infrastructure facilities inprevailing in India. But the company only target east India segment only. Hence thecompany had strong financial resources compare to its company in industry.• Strength of CONCORE, Arshiya in railway cargo handling, CFS, MOT. Allcargo, Aquais strength in third party logistics and warehousing and information technology, AegisLogistics company strength in Oil, Gas field.• The weakness of all of the company is to face tough competition towards world level dueto change in government policies, fluctuation in foreign currency, poor physical facilitiesin India.• India ranked at 46th position in Logistics performance Index all over the world• The overall industry strength is the level of GDP increased by its industry. The industrycontributed 13-14% as GDP in 2012.• Industry analysis explains that the CONCORE attains competitive position in the marketfollowed by Allcargo, Arshiya International• Aegis Logistics company attained competitive position in Oil, Gas, and Chemicalsegment.
  • 111. • The overall industry average income was increased continuously over the period. InFY12 the industry average income stood at Rs1347Cr.• The operating profit explains that CONCORE got more profit followed by Allcargo,Arshiya Int.• The Earning Per Share (EPS) of CONCORE in FY12 Rs67.54• The all companies are followed acceptable level of current ratio. In which the workingcapital level is better in CONCORE and followed by Aqua• By using BCG matrix the Allcargo company get star position, Arshiya Int. stand atquestion mark position, CONCORE comes under cash cow area, the other two companieslike Aqua, Aegis comes in dog position.• By using GE matrix5.2 SUGGESTION• India should develop infrastructure facilities improve road structure like extension the road,to improve the capacity of ports and develop new ports in India.• Railroad must be developed because it leads to reliability in supply of goods and servicesquickly.• The Air port should be improve their capacity level and create more air port in India so thelevel of cargo handling can be increased• To adopt latest information technology like GPS, inventory control, material handlingequipments, it helps to decrease the cost of operation in order to utilize the resourceeffectively• CONCORE may enter into airways, 3PL it provide more revenue to company.• CONCORE can acquisition of other company in which it may enter into new segment likeFree Trade Warehousing Zones.• Allcargo company may enter into CFS in which improve its capacities• Aegis Company may expand their operation throughout the India. So it can cover all overthe India
  • 112. • Arshiya International company have financially strong position in market so the companyhave estimated the project outlay of Rs 1600 crore for the acquisition of 75 Rakes, breakvans, building of rail siding and other necessary infrastructure across the country. Its helpsto investors interest over the company shares in market• Arshiya International can develop their Free Trade Warehousing Zones in other majorcities like Chennai port, Tuticorin ports and others majors ports in India• Aqua Logistics company can improve their operation by way of increasing its contractsLogistics and The company had a Multi-Modal Transport Operators License, an IATAAccreditation and a Custom House Agents License for servicing customers requirementcould be match accordingly• Aqua Logistics may enter into FTWZ, MTO its create increase their performance in themarkets5.3 CONCLUSIONThe project titled “A Study on Logistics Industry in India” in which the selected logisticscompanies’ performance in financial position, market growth, and market share in industrywas discussed. The purpose of this research was to find out the competitive position in thelogistics market in India by using BCG matrix and GE matrix.In this research, the author considered the political, economical, socio-demographical andtechnological changes that can influence the company and its industry.Finally the industry analysis finds out how to attain competitive position in the marketand what are the strategic decisions to be taken for improving in this industry.
  • 113. REFERENCE WEBSITES••••••••••••••••••••,d.bmk•
  • 114. •,d.bmk•
  • 115. 1. Balance Sheet of Container Corporation of India------------------- in Rs. Cr. -------------------Particulars Mar 08 Mar 09 Mar 10 Mar 11 Mar 12Sources Of FundsTotal Share Capital 64.99 129.98 129.98 129.98 129.98Equity Share Capital 64.99 129.98 129.98 129.98 129.98Reserves 3,118.93 3,632.23 4,206.42 4,847.83 5,476.45Networth 3,183.92 3,762.21 4,336.40 4,977.81 5,606.43Total Liabilities 3,183.92 3,762.21 4,336.40 4,977.81 5,606.43Mar 08 Mar 09 Mar 10 Mar 11 Mar 12Application Of FundsGross Block 2,244.24 2,617.57 2,965.48 3,266.11 3,472.61Less: Accum. Depreciation 579.09 691.98 825 959.13 1,078.86Net Block 1,665.15 1,925.59 2,140.48 2,306.98 2,393.75Capital Work in Progress 172.08 269.07 222.44 339.18 115.12Investments 155.36 203.08 240.54 243.96 293.1Inventories 4.81 5.08 6.99 6.26 8.17Sundry Debtors 13.73 15.72 17.64 17.27 19.59Cash and Bank Balance 64.47 58.77 49.44 56.34 2,761.50Total Current Assets 83.01 79.57 74.07 79.87 2,789.26Loans and Advances 373.07 403.94 571.56 561.77 906.35Fixed Deposits 1,457.03 1,704.74 1,940.07 2,239.34 0Total CA, Loans & Advances 1,913.11 2,188.25 2,585.70 2,880.98 3,695.61Current Liabilities 599.05 684.24 707.79 639.22 714.37Provisions 122.73 139.54 144.97 154.07 176.78Total CL & Provisions 721.78 823.78 852.76 793.29 891.15Net Current Assets 1,191.33 1,364.47 1,732.94 2,087.69 2,804.46Total Assets 3,183.92 3,762.21 4,336.40 4,977.81 5,606.43
  • 116. 2. Profit & Loss account of Container Corporation of India------------------- in Rs. Cr. -------------------Mar 08 Mar 09 Mar 10 Mar 11 Mar 12IncomeSales Turnover3,347.303,417.163,705.683,828.124,060.95Excise Duty 0 0 0 0 0Net Sales3,347.303,417.163,705.683,828.124,060.95Other Income 158.72 203.57 164.07 173.45 316.54Total Income3,506.023,620.733,869.754,001.574,377.49ExpenditureRaw Materials 1.71 2.14 2.29 2.67 5.04Power & Fuel Cost 0 0 14.99 14.03 28.05Employee Cost 54.82 80.39 83.61 86.9 99.91Other Manuf.Expenses2,294.122,254.002,506.322,598.32 78.86Selling and Admin Expenses 62.42 95.96 94.7 75.43 0Miscellaneous Expenses 43.5 53.55 41.8 48.082,825.36Preoperative Exp Capitalised 0 0 0 0 0Total Expenses2,456.572,486.042,743.712,825.433,037.22Mar 08 Mar 09 Mar 10 Mar 11 Mar 12Operating Profit 890.73 931.12 961.971,002.691,023.73PBDIT1,049.451,134.691,126.041,176.141,340.27
  • 117. Interest 0.24 0.06 0.09 0.3 0PBDT1,049.211,134.631,125.951,175.841,340.27Depreciation 106.34 115.91 135.1 145.23 158.49Other Written Off 0 0 0 0 0Profit Before Tax 942.871,018.72 990.851,030.611,181.78Extra-ordinary items 7.38 7.21 15.76 25.11 -52.16PBT (Post Extra-ord Items) 950.251,025.931,006.611,055.721,129.62Tax 197.98 234.73 219.92 179.77 251.74Reported Net Profit 752.21 791.2 786.69 875.95 877.88Total Value Addition2,454.862,483.902,741.422,822.763,032.18Equity Dividend 168.98 181.98 181.98 201.48 249.26Corporate Dividend Tax 28.72 30.93 30.52 33.06 0Per share data (annualised)Shares in issue (lakhs) 649.911,299.831,299.831,299.831,299.83Earning Per Share (Rs) 115.74 60.87 60.52 67.39 67.54Equity Dividend (%) 260 140 140 155 165Book Value (Rs) 489.9 289.44 333.61 382.96 431.323. Balance Sheet of Aqua LogisticsParticulars------------------- in Rs. Cr. -------------------2008 2009 2010 2011 2012Sources Of FundsTotal Share Capital11.46 12.92 20.54 30.00 30.00
  • 118. Equity Share Capital11.46 12.92 20.54 30.00 30.00Share Application Money 0.00 0.00 0.00 0.00 0.00Preference Share Capital 0.00 0.00 0.00 0.00 0.00Reserves28.48 44.52 206.47 493.61 491.56Revaluation Reserves 0.00 0.00 0.00 0.00 0.00Networth39.94 57.44 227.01 523.61 521.56Secured Loans 7.46 39.73 29.70 39.71 53.18Unsecured Loans 0.70 0.06 0.01 30.37 31.23Total Debt 8.16 39.79 29.71 70.08 84.41Total Liabilities48.10 97.23 256.72 593.69 605.972008 2009 2010 2011 2012Application Of FundsGross Block 9.91 14.67 46.50 51.50 55.89Less: Accum. Depreciation 0.78 1.92 3.41 7.14 10.96Net Block 9.13 12.75 43.09 44.36 44.93Capital Work in Progress 0.00 0.00 2.30 7.31 13.45Investments 0.01 10.85 9.89 45.61 54.41Inventories 0.00 0.00 0.00 0.00 0.00Sundry Debtors32.86 59.73 103.24 155.63 146.80Cash and Bank Balance 8.19 1.04 5.46 2.28 94.37Total Current Assets41.05 60.77 108.70 157.91 241.17Loans and Advances 7.40 15.59 33.82 65.35 280.62Fixed Deposits 0.10 10.45 75.91 292.81 0.00
  • 119. Total CA, Loans & Advances48.55 86.81 218.43 516.07 521.79Deffered Credit 0.00 0.00 0.00 0.00 0.00Current Liabilities 9.22 10.48 16.26 20.23 25.33Provisions 0.37 4.11 4.67 3.43 3.27Total CL & Provisions 9.59 14.59 20.93 23.66 28.60Net Current Assets38.96 72.22 197.50 492.41 493.19Miscellaneous Expenses 0.00 1.42 3.94 4.00 0.00Total Assets48.10 97.24 256.72 593.69 605.98Contingent Liabilities 0.00 10.82 1.85 16.69 2.91Book Value (Rs)34.84 44.45 110.51 17.45 17.394. Profit & Loss account of Aqua LogisticsParticulars------------------- in Rs. Cr. -------------------2008 2009 2010 2011 2012IncomeSales Turnover 108.99 213.4 322.01 380.88 310.35Excise Duty 0 0 0 0 0Net Sales 108.99 213.4 322.01 380.88 310.35Other Income 0.42 0.65 -0.11 0.85 1.58Stock Adjustments 0 0 0 0 0Total Income 109.41 214.05 321.9 381.73 311.93ExpenditureRaw Materials 0 0 0 0 0Power & Fuel Cost 0 0 0 0 0Employee Cost 7.63 10.58 10.92 8.33 6.19
  • 120. Other Manufacturing Expenses 84.31 175.49 272.42 326.79 282.43Selling and Admin Expenses 3.44 3.79 4.47 8.71 0Miscellaneous Expenses 0.84 1.19 1.29 1.29 5.95Preoperative Exp Capitalised 0 0 0 0 0Total Expenses 96.22 191.05 289.1 345.12 294.57Mar08 Mar09 Mar10 Mar 11 Mar 12Operating Profit 12.77 22.35 32.91 35.76 15.78PBDIT 13.19 23 32.8 36.61 17.36Interest 3.82 4.75 5.17 7.25 11.78PBDT 9.37 18.25 27.63 29.36 5.58Depreciation 0.57 1.14 1.49 3.88 3.87Other Written Off 0 0 0 0 0Profit Before Tax 8.8 17.11 26.14 25.48 1.71Extra-ordinary items 0 0 0 -0.48 0PBT (Post Extra-ord Items) 8.8 17.11 26.14 25 1.71Tax 3.18 5.97 5.6 2.62 0.55Reported Net Profit 5.61 11.15 20.54 22.39 1.15Total Value Addition 96.22 191.05 289.1 345.12 294.57Equity Dividend 0 0 0 0 0Corporate Dividend Tax 0 0 0 0 0Per share data (annualised)Shares in issue (lakhs) 114.64 129.24 205.412,999.912,999.91Earning Per Share (Rs) 4.9 8.63 10 0.75 0.04Equity Dividend (%) 0 0 0 0 0Book Value (Rs) 34.84 44.45 110.51 17.45 17.395. Key Financial Ratios of Aqua Logistics:2008 2009 2010 2011 2012Investment Valuation Ratios
  • 121. Face Value 10 10 10 1 1Operating Profit Per Share (Rs) 11.13 17.29 16.02 1.19 0.53Net Operating Profit Per Share (Rs) 95.07 165.12 156.76 12.7 10.35Free Reserves Per Share (Rs) 24.84 33.36 98.6 16.31 --Bonus in Equity Capital -- 15.47 9.73 6.66 6.66Profitability RatiosOperating Profit Margin(%) 11.7 10.47 10.21 9.38 5.08Profit Before Interest And Tax Margin(%) 11.17 9.93 9.74 8.34 3.8Gross Profit Margin(%) 11.19 9.93 9.75 8.36 3.83Cash Profit Margin(%) 5.41 5.52 6.98 7.1 1.94Adjusted Cash Margin(%) 5.41 5.52 6.98 7.1 1.94Net Profit Margin(%) 5.14 5.22 6.37 5.85 0.36Adjusted Net Profit Margin(%) 5.14 5.22 6.37 5.85 0.36Return On Capital Employed(%) 25.66 21.98 12.38 5.58 2.4Return On Net Worth(%) 14.05 19.89 9.2 4.3 0.22Adjusted Return on Net Worth(%) 13.37 19.03 9.42 4.48 0.42Return on Assets Excluding Revaluations 34.84 43.36 108.6 17.32 17.39Return on Assets Including Revaluations 34.84 43.36 108.6 17.32 17.39Return on Long Term Funds(%) 25.66 21.98 13.98 5.9 2.77Liquidity And Solvency RatiosCurrent Ratio 5.06 5.95 2.75 5.89 3.26Quick Ratio 5.06 5.95 10.44 21.81 18.24Debt Equity Ratio 0.2 0.69 0.13 0.13 0.16Long Term Debt Equity Ratio 0.2 0.69 -- 0.07 0.01Debt Coverage RatiosInterest Cover 6.34 5.47 6.8 4.91 1.23Total Debt to Owners Fund 0.2 0.69 0.13 0.13 0.16Financial Charges Coverage Ratio 3.38 4.74 6.44 5.11 1.56Financial Charges Coverage Ratio Post Tax 2.62 3.59 5.26 4.62 1.43Management Efficiency Ratios
  • 122. Debtors Turnover Ratio 4.69 4.61 3.95 2.94 2.05Asset Turnover Ratio 18.43 19.99 7.58 8.02 0.52Number of Days In Working Capital 128.69 121.84 220.8 465.41 572.086.Balance Sheet of Allcargo Logistics------------------- in Rs. Cr. -------------------ParticularsDec 07 Dec 08 Dec 09 Dec 10 Mar 1212 mths 12 mths 12 mths 12 mths 15 mthsSources Of FundsTotal Share Capital 20.26 22.36 24.96 26.10 26.11Equity Share Capital 20.26 22.36 24.96 26.10 26.11Share Application Money 3.60 30.98 1.65 1.23 0.87Preference Share Capital 0.00 0.00 0.00 0.00 0.00Reserves 361.65 443.53 765.18 951.68 1113.16Revaluation Reserves 0.00 0.00 0.00 0.00 0.00Networth 385.51 496.87 791.79 979.01 1140.14Secured Loans 24.38 105.28 109.30 247.25 495.91Unsecured Loans 0.00 100.97 0.00 0.00 62.84Total Debt 24.38 206.25 109.30 247.25 558.75Total Liabilities 409.89 703.12 901.091226.26 1698.89Particulars Dec 07 Dec 08 Dec 09 Dec 10 Mar 12Application Of FundsGross Block 248.62 377.66 508.97 776.14 1194.27Less: Accum. Depreciation 38.54 62.50 98.72 134.07 213.06Net Block 210.08 315.16 410.25 642.07 981.21Capital Work in Progress 40.52 59.45 61.75 45.79 47.44Investments 114.06 115.22 200.34 179.07 380.64Inventories 1.47 1.96 2.71 6.33 11.04Sundry Debtors 45.63 71.33 72.86 93.55 129.33Cash and Bank Balance 9.20 29.25 16.79 11.42 6.51Total Current Assets 56.30 102.54 92.36 111.30 146.88Loans and Advances 40.90 198.81 248.15 463.66 410.06Fixed Deposits 5.50 3.35 3.56 2.09 0.00Total CA, Loans & Advances 102.70 304.70 344.07 577.05 556.94Deffered Credit 0.00 0.00 0.00 0.00 0.00Current Liabilities 48.94 83.54 106.83 177.16 246.22Provisions 8.62 7.90 8.50 40.55 21.13Total CL & Provisions 57.56 91.44 115.33 217.71 267.35Net Current Assets 45.14 213.26 228.74 359.34 289.59Miscellaneous Expenses 0.09 0.05 0.00 0.00 0.00Total Assets 409.89 703.14 901.081226.27 1698.88Contingent Liabilities 18.52 15.93 76.84 69.61 328.89Book Value (Rs) 188.54 208.33 63.31 74.92 87.27
  • 123. 7. Profit & Loss account of Allcargo Logistics
  • 124. ------------------- in Rs. Cr. -------------------ParticularsDec 07 Dec 08 Dec 09 Dec 10 Mar 1212 mths 12 mths 12 mths 12 mths 15 mthsIncomeSales Turnover 361.25 516.79 516.76 699.841,079.43Excise Duty 0 0 0 0 0Net Sales 361.25 516.79 516.76 699.841,079.43Other Income 4.02 20.03 15.34 42.93 51.06Total Income 365.27 536.82 532.1 742.771,130.49ExpenditureRaw Materials 2.31 3.25 4.6 13.1 21.43Power & Fuel Cost 1.66 1.44 2.41 23.88 40.63Employee Cost 23.11 34.18 35.84 48.58 80.67Other Manufacturing Expenses 223.18 300.53 287.11 352.58 535.57Selling and Admin Expenses 22.22 30.62 29.45 63.95 0Miscellaneous Expenses 9.05 14.11 12.66 15.31 92.11Total Expenses 281.53 384.13 372.07 517.4 770.41ParticularsDec 07 Dec 08 Dec 09 Dec 10 Mar 1212 mths 12 mths 12 mths 12 mths 15 mthsOperating Profit 79.72 132.66 144.69 182.44 309.02PBDIT 83.74 152.69 160.03 225.37 360.08Interest 2.54 18.07 16.13 27.87 50.55PBDT 81.2 134.62 143.9 197.5 309.53Depreciation 14.2 25.47 37.63 40.24 89.04Other Written Off 0.04 0.04 0.08 0 0Profit Before Tax 66.96 109.11 106.19 157.26 220.49Extra-ordinary items 3.33 -0.01 0.23 0 0PBT (Post Extra-ord Items) 70.29 109.1 106.42 157.26 220.49Tax 10.52 16.42 8.44 23.74 36.42Reported Net Profit 59.78 92.67 97.81 121.13 184.07Total Value Addition 279.22 380.89 367.46 504.32 748.98Equity Dividend 10.76 5.59 12.48 39.44 19.58Corporate Dividend Tax 1.83 0.95 2.12 6.43 3.18Per share data (annualised)Shares in issue (lakhs) 202.56 223.641,248.111,305.171,305.47Earnings Per Share (Rs) 29.51 41.44 7.84 9.28 14.1Equity Dividend (%) 50 25 50 150 75
  • 125. 8. Balance Sheet of Aegis LogisticsParticulars------------------- in Rs. Cr. -------------------2008 2009 2010 2011 2012Sources Of FundsTotal Share Capital 19.91 16.44 18.77 33.40 33.40Equity Share Capital 19.91 16.44 18.77 33.40 33.40Share Application Money 0.00 3.35 0.00 0.00 0.00Preference Share Capital 0.00 0.00 0.00 0.00 0.00Reserves 137.64 154.91 167.47 230.93 264.23Networth 157.55 174.70 186.24 264.33 297.63Secured Loans 34.81 25.21 69.00 57.23 77.64Unsecured Loans 4.55 4.73 7.38 6.62 1.70Total Debt 39.36 29.94 76.38 63.85 79.34Total Liabilities 196.91 204.64 262.62 328.18 376.972008 2009 2010 2011 2012Application Of FundsGross Block 205.02 208.99 220.44 240.83 245.83Less: Accum. Depreciation 79.62 88.79 98.12 108.63 118.16Net Block 125.40 120.20 122.32 132.20 127.67Capital Work in Progress 0.99 6.57 12.84 1.15 15.69Investments 21.23 53.59 42.42 94.53 120.27Inventories 11.63 4.95 9.34 8.79 8.23Sundry Debtors 38.76 21.63 20.51 20.76 31.41Cash and Bank Balance 2.68 3.34 11.27 12.95 10.76Total Current Assets 53.07 29.92 41.12 42.50 50.40Loans and Advances 51.30 46.17 89.78 64.04 81.14Fixed Deposits 19.72 28.44 16.65 57.36 62.99Total CA, Loans & Advances 124.09 104.53 147.55 163.90 194.53Deffered Credit 0.00 0.00 0.00 0.00 0.00
  • 126. Current Liabilities 68.85 68.57 54.21 53.94 68.21Provisions 5.96 11.67 8.30 9.65 12.99Total CL & Provisions 74.81 80.24 62.51 63.59 81.20Net Current Assets 49.28 24.29 85.04 100.31 113.33Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00Total Assets 196.90 204.65 262.62 328.19 376.969. Profit & Loss account of Aegis LogisticsParticulars ------------------- in Rs. Cr. -------------------2008 2009 2010 2011 2012IncomeSales Turnover 373.88 368.33 284.67 258.14 283.5Excise Duty 0 0 0 0 0Net Sales 373.88 368.33 284.67 258.14 283.5Other Income 1.92 5.14 8.8 7.92 7.83Stock Adjustments 0 -6.66 4.9 -2.6 -0.29Total Income 375.8 366.81 298.37 263.46 291.04ExpenditureRaw Materials 268.96 270.22 175.69 144.47 160.06Power & Fuel Cost 4.27 4.52 4.05 5.03 5.41Employee Cost 13.55 16.72 21.14 22.38 25.58Other Manufacturing Expenses 5.75 6.7 9.89 5.81 6.44Selling and Admin Expenses 18.34 14.72 18.42 18.06 18.53Miscellaneous Expenses 1.74 1.7 2.04 2.47 4.83Preoperative Exp Capitalised 0 0 0 0 0Total Expenses 312.61 314.58 231.23 198.22 220.852008 2009 2010 2011 2012Operating Profit 61.27 47.09 58.34 57.32 62.36PBDIT 63.19 52.23 67.14 65.24 70.19Interest 4.12 6.18 8.04 10.15 10.31PBDT 59.07 46.05 59.1 55.09 59.88Depreciation 8.96 9.17 9.67 10.74 11.36Other Written Off 0 0 0 0 0.57Profit Before Tax 50.11 36.88 49.43 44.35 47.95Extra-ordinary items 0.37 -0.24 0.06 0.82 10.07PBT (Post Extra-ord Items) 50.48 36.64 49.49 45.17 58.02Tax 11.38 6.27 10.53 13.96 16.95Reported Net Profit 39.09 30.37 38.94 31.22 41.06Total Value Addition 43.66 44.37 55.55 53.75 60.79Preference Dividend 0 0 0 0 0Equity Dividend 8.96 9.3 10.81 12.94 6.68Corporate Dividend Tax 1.52 1.76 1.84 2.12 1.08Per share data (annualised)
  • 127. Shares in issue (lakhs) 199.41 164.77 188.03 334 334Earning Per Share (Rs) 19.61 18.43 20.71 9.35 12.29Equity Dividend (%) 25 45 57.5 40 20Book Value (Rs) 79.01 103.99 99.05 79.14 89.1110. Key Financial Ratios of Aegis LogisticsParticulars 2008 2009 2010 2011 2012Investment Valuation RatiosFace Value 10 10 10 10 10Dividend Per Share 2.5 4.5 5.75 4 2Operating Profit Per Share (Rs) 30.72 28.57 31.02 17.16 18.67Net Operating Profit Per Share (Rs) 187.5 223.53 151.4 77.29 84.88Free Reserves Per Share (Rs) 65.21 91.5 85.36 67.09 76.31Bonus in Equity Capital 4.11 4.98 4.36 39.89 39.89Profitability RatiosOperating Profit Margin(%) 16.38 12.78 20.49 22.2 21.99Profit Before Interest And Tax Margin(%) 13.9 10.1 16.73 17.51 17.34Gross Profit Margin(%) 13.98 10.29 17.09 18.04 17.99Cash Profit Margin(%) 12.76 11.09 15.79 15.43 15.5Adjusted Cash Margin(%) 12.76 11.09 15.79 15.43 15.5Net Profit Margin(%) 10.39 8.09 13.38 11.73 13.96Adjusted Net Profit Margin(%) 10.39 8.09 13.38 11.73 13.96Return On Capital Employed(%) 27.7 21.94 20.88 16.58 16.15Return On Net Worth(%) 24.81 17.72 20.9 11.8 13.79Adjusted Return on Net Worth(%) 24.78 18.95 19.47 11.47 11.3Return on Assets Excluding Revaluations 79.01 103.99 99.05 79.14 89.11Return on Assets Including Revaluations 79.01 103.99 99.05 79.14 89.11Return on Long Term Funds(%) 27.7 22.31 22.14 17.29 18.06Liquidity And Solvency RatiosCurrent Ratio 1.66 1.3 1.59 1.81 1.21Quick Ratio 1.5 1.22 2.18 2.41 2.28Debt Equity Ratio 0.25 0.17 0.41 0.24 0.27Long Term Debt Equity Ratio 0.25 0.17 0.33 0.19 0.13Debt Coverage RatiosInterest Cover 30.99 9.35 13.04 8.6 8.41Total Debt to Owners Fund 0.25 0.17 0.41 0.24 0.27Financial Charges Coverage Ratio 15.41 8.76 8.02 6.42 7.07Financial Charges Coverage Ratio Post Tax 12.66 7.4 7.05 5.13 6.14Management Efficiency RatiosInventory Turnover Ratio 41.06 150.53 38.76 54.37 63.59Debtors Turnover Ratio 11.76 12.2 13.51 12.51 10.87Investments Turnover Ratio 41.06 150.53 38.76 54.37 63.59Fixed Assets Turnover Ratio 1.83 1.77 1.29 1.09 1.17Total Assets Turnover Ratio 1.9 1.8 1.09 0.8 0.76Asset Turnover Ratio 1.83 1.83 1.22 0.87 0.8
  • 128. Average Finished Goods Held 10.25 2.66 10.91 7.88 6.74Number of Days In Working Capital 47.46 23.73 107.55 139.88 143.92Profit & Loss Account RatiosMaterial Cost Composition 71.93 73.36 61.71 55.96 56.45Selling Distribution Cost Composition 1.67 1.39 1.8 1.88 1.9Expenses as Composition of Total Sales 0.3 0.28 0.31 0.6 0.46Cash Flow Indicator RatiosDividend Payout Ratio Net Profit 26.81 36.41 32.46 48.24 18.9Dividend Payout Ratio Cash Profit 21.81 27.96 26 35.89 14.65Earning Retention Ratio 73.16 65.95 65.15 50.36 76.93Cash Earning Retention Ratio 78.17 73.45 72.49 63.34 82.97AdjustedCash Flow Times 0.82 0.72 1.66 1.55 1.7411. Balance Sheet of Arshiya InternationalParticulars------------------- in Rs. Cr. -------------------2008 2009 2010 2011 2012Sources Of FundsTotal Share Capital 11.4 11.75 11.75 11.77 11.77Equity Share Capital 11.4 11.75 11.75 11.77 11.77Share Application Money 2.34 2.99 1.18 0.5 0Reserves 445.23 475.36 483.91 502.62 540.81Networth 458.97 490.1 496.84 514.89 552.58Secured Loans 0.33 78.99 306.41 655.65 1,006.53Total Debt 0.33 78.99 359.41 679.65 1,139.03Total Liabilities 459.3 569.09 856.25 1,194.54 1,691.61Particulars 2008 2009 2010 2011 2012Application Of FundsGross Block 4.89 12.65 23.37 343.18 626.77Less: Accum. Depreciation 1.48 3 5.78 12.32 24.42Net Block 3.41 9.65 17.59 330.86 602.35Capital Work in Progress 194.02 344.63 605.81 490.13 525.21Inventories 0 0 0 0 0Sundry Debtors 33.81 57.45 91.45 95.12 121.13Cash and Bank Balance 26.89 22.01 33.33 55.97 25.82Total Current Assets 60.7 79.46 124.78 151.09 146.95
  • 129. Loans and Advances 22.25 77.64 193.82 348.62 645.52Fixed Deposits 54.28 5.96 9.98 13.52 0Total CA, Loans & Advances 137.23 163.06 328.58 513.23 792.47Current Liabilities 15.55 53.33 201.07 269.2 379.29Provisions 5.68 7.6 8.48 9.97 13Total CL & Provisions 21.23 60.93 209.55 279.17 392.29Net Current Assets 116 102.13 119.03 234.06 400.18Total Assets 459.32 569.09 856.26 1,194.54 1,691.6112. Profit & Loss account of Arshiya InternationalParticulars------------------- in Rs. Cr. -------------------2008 2009 2010 2011 2012IncomeSales Turnover 201.91 256.39 273.61 453.01 592.63Excise Duty 0 0 0 0 0Net Sales 201.91 256.39 273.61 453.01 592.63Other Income 5.35 9.82 6.42 21.74 37.38Stock Adjustments 0 0 0 0 0Total Income 207.26 266.21 280.03 474.75 630.01ExpenditureEmployee Cost 5.84 7.85 15.79 24.26 36.63Other Manufacturing Expenses 173.35 214.83 222.91 348.7 386.8Selling and Admin Expenses 6.24 8.59 9.14 20.19 0Miscellaneous Expenses 2.45 4.42 3.61 6.73 40.55Preoperative Exp Capitalised 0 0 0 0 0Total Expenses 187.88 235.69 251.45 399.88 463.982008 2009 2010 2011 2012Operating Profit 14.03 20.7 22.16 53.13 128.65PBDIT 19.38 30.52 28.58 74.87 166.03Interest 0.72 0.82 4.52 31.56 80.41PBDT 18.66 29.7 24.06 43.31 85.62
  • 130. Depreciation 0.64 1.56 1.8 6.96 16.43Other Written Off 0 0 0 0 0Profit Before Tax 18.02 28.14 22.26 36.35 69.19Extra-ordinary items -0.19 0.14 0.84 0.1 0PBT (Post Extra-ord Items) 17.83 28.28 23.1 36.45 69.19Tax 5.46 9.79 7.71 11.52 21.68Reported Net Profit 12.36 18.49 15.4 24.93 47.51Total Value Addition 187.88 235.69 251.45 399.88 463.98Equity Dividend 4.56 4.7 5.88 7.06 8.24Corporate Dividend Tax 0.78 0.8 0.98 1.15 1.34Per share data (annualised)Shares in issue (lakhs) 570.04 587.53 587.53 588.29 588.29Earning Per Share (Rs) 2.17 3.15 2.62 4.24 8.08Equity Dividend (%) 40 40 50 60 70Book Value (Rs) 80.11 82.91 84.36 87.44 93.93