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Market Research Report : Courier market in india 2014 - Sample

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Abstract :
The report highlights the analysis of the drivers and explains the factors for growth of the industry. Global Trade Boom, Growth in e-Tailing, Growing Business of Private Telecom Sector, Financial Institutions Dependence on Courier and Seasonal Business Upsurge Due to Occasions are the key drivers of this market. Top courier companies operating in India are specializing in secure and in-time delivery of Indian pharma products. The telecom sector is dependent on courier service largely for Sending postpaid connection bills, Bulk sim delivery in business houses and Sending important notices and intimations to customers. A commercial bank spends approximately INR 2.4 bn annually on courier to meet its business needs. Courier companies are normally hired by florists to deliver fresh flowers to clientele on birthdays, anniversaries and wedding occasions.

There are various challenges too that the courier industry faces, Poor Infrastructure, Poor Warehousing Facility, Delay in Clearances and High operating costs are the major challenges faced by the courier industry. A huge number of roadways in India are un-metalled that poses difficulty for courier service providers – almost 40% of villages do not have any access to all weather roads. Due to heavy cargo movement the customs at various international airports is unable to send detention memo for most of the detained parcels and this adversely affects courier service operators’ business. High level of competition in the industry limits the ability of courier companies to increase pricing and high level of operating costs coupled with the limited pricing power lead to low profitability for the industry overall

Some recent technology adoption in the courier industry is the use of GPS which is used for tracking location of goods carrying vehicles. Barcode technology is used to monitor flow of documents and other courier items at various points in from point of origin to point of delivery. RFID aids in smooth information flow between monitoring unit and on-duty delivery. The Indian Government has been operating postal and telegraph service through India Post since 1837 and has evolved over the years to provide fast and reliable service at par with other key players in the market. The Government of India is also considering setting up of dedicated cargo airports to tap the growing courier market.
Table of Contents :
Slide 1: Executive Summary

Macroeconomic Indicators
Slide 2: GDP at Factor Cost: Quarterly (2010-11, 2011-12, 2012-13, 2013-14), Inflation Rate: Monthly (Jul 2013 – Dec 2013)
Slide 3: Gross Fiscal Deficit: Monthly (Feb 2013 – Jul 2013), Exchange Rate: Half Yearly (Oct 2013 – Mar 2014)
Slide 4: Lending Rate: Annual (2008-09, 2009-10, 2010-11, 2011-12), Trade Balance: Annual (2010-11, 2011-12, 2012-13, 2013-14), FDI: Annual (2009-10, 2010-11, 2011-12, 2012-13)

Introduction
Slide 5-8: Lo

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Market Research Report : Courier market in india 2014 - Sample

  1. 1. Insert Cover Image using Slide Master View Do not distort Courier Market – India October 2014
  2. 2. 2 COURIER MARKET IN INDIA 2014.PPT Executive Summary Market Drivers & Challenges Role of Government Competition Global Trade Boom Growth in e-Commerce Financial Institutions Dependence on Courier Growing Business of Private Telecom Sector Seasonal Business Upsurge Due to Occasions The courier/ express courier market is highly fragmented with numerous small unorganized players The market was valued at INR X1 bn in 20-- and is expected to reach ~INR X5 bn in FY 20-- exhibiting a CAGR of X% between 20-- to 20-- Poor Infrastructure is a major decelerator Poor Warehousing Facility is a Major Deterrent Delay in Clearances High Operating Costs Ensuring Competitiveness Infrastructure Development Foreign Direct Investment India Post Office Amendment Bill Laws Major Players Company 1 Company 2 Company 3 Company 4 Company 5 Company 6
  3. 3. 3 COURIER MARKET IN INDIA 2014.PPT •Macroeconomic Indicator •Introduction •Market Overview •Business Models •Key Issues •Drivers & Challenges •Technology Adoption •Role of Government •Role of EICI •Competitive Landscape •Transactions •Business Processes •Strategic Recommendations •Appendix
  4. 4. 4 Economic Indicators (1/3) 11 12 13 14 15 INR tn Q4 c4 b4 a4 Q3 c3 b3 a3 Q2 d2 c2 b2 a2 Q1 d1 c1 b1 a1 2010-11 2011-12 2012-13 2013-14 GDP at Factor Cost: Quarterly Inflation Rate: Monthly -2 -1 0 1 2 q Aug 2013 - Sep 2013 r Jul 2013 - Aug 2013 Sep 2013 - Oct 2013 p Nov 2013 - Dec 2013 t Oct 2013 - Nov 2013 % s COURIER MARKET IN INDIA 2014.PPT
  5. 5. 5 COURIER MARKET IN INDIA 2014.PPT Logistics primarily deals in transportation and storage operations and is significantly aided by value added service The logistics sector comprises primarily of 3 major segments – Transportation, Storage and Value-added services. The growing Indian economy is playing an advantageous role on players operating in storage and value- added services segments TRANSPORTATION Container Rail Transport STORAGE Road Transport Express Logistics Coastal Shipping Air Cargo Project Logistics Warehousing Logistics Park Inland Container Depot Container Freight Station Port Freight Forwarding 3PL/ 4PL Courier Service LOGISTICS SECTOR VALUE ADDED SERVICE Focus of the Report Cold Chain
  6. 6. 6 Growing business opportunities in India is driving the need for time bound service Market Overview Market Size and Growth • The courier/ express courier market is highly fragmented with numerous small unorganized players • The market was valued at INR X1 bn in 20-- and is expected to reach ~INR X2 bn in FY 20-- • The market is projecting a CAGR of X% and is expected to maintain a steady growth rate till FY 20-- • India having over a lakh of pin codes, only approximately 10,000 are connected by courier service • It thus makes the lesser known players very significant in the market as they take upon the responsibility of providing last mile service to large organized players COURIER MARKET IN INDIA 2014.PPT Express/ Courier Categories in India Government Administered India Post Global Integrators Player A, Player B, Player C etc. Player D, Player E, Player F etc. Large Indian Companies Other Small Courier Companies Regional Players 0 100 200 300 400 INR bn 20--e X3 20-- X% 20--e X6 20--e X5 20--e X4 X2 20-- X1 C% B% A% A B C Revenue Split of Courier Sector – 20--
  7. 7. 7 Courier Service Segmentation (1/2) Courier Service by Type On- Board Courier •Most expensive and in depth service giving courier delivery the approach of ‘Just In Time’ •Specific for items of extreme importance and international transport •Items maybe medical cargo like organs needed for transplantation, critical parts and tools or sensitive business or legal information Personal Courier •This courier service is common in big cities or over relatively short distances •Items transported may include super sensitive and delicate articles to office files and documents •This type of courier service is common in large companies that has complex mail systems and needs to ensure safe and timely package delivery Same Day Courier Service •The service is available for locations within a reasonable range that can be reached within the same day •The service normally comes at a premium price Standard Courier Service •Most commonly used courier service by individuals and business organizations •Though it provides a reasonably timely service it is not as fast as other courier services and is priced accordingly •It service provides security and timely service but fails to provide tracking and ‘signature on receipt’ facilities Overnight Courier Service •The overnight courier service is offered for selected destinations •The service is expensive than Standard Courier but cheaper than On- Board, Personal and Same day Courier Services Back Loads and Part Loads Courier Service •This type of service is usually utilized by businesses that depend on frequent delivery of items from a courier •Urgency is ruled out and the items are delivered as and when the courier company has to deliver some other package in the same area •This is a cost saving business strategy employed by companies COURIER MARKET IN INDIA 2014.PPT
  8. 8. 8 Ever rising number of franchisees of the big players in the market is indicative of popularity of franchisee model Courier market in India operates through franchisee model for raising accessibility of its customers Higher the number of franchisees in the market space higher will be its visibility that will ensure greater business for the companies INR A mn to INR B mn Total Investment t sq. feet to q sq. feet Area Required ROI % Return on Investment Y months to Z months Expected Breakeven Low cost franchisee opportunities by renowned companies is mutually beneficial for the company as well as the franchisee operator Franchisee options of various valuations enables small starters to initiate their business easily while the company benefits as its outlet number increases Adequate training in Supply Chain Management Company Support COURIER MARKET IN INDIA 2014.PPT
  9. 9. 9 Key Issues Delivery Snags Internet Accessibility E-Billing Popularity COURIER MARKET IN INDIA 2014.PPT
  10. 10. 10 COURIER MARKET IN INDIA 2014.PPT Drivers & Challenges – Summary Drivers Global Trade Boom Growth in e-Commerce Financial Institutions Dependence on Courier Growing Business of Private Telecom Sector Seasonal Business Upsurge Due to Occasions Challenges Poor Infrastructure is a major decelerator Poor Warehousing Facility is a Major Deterrent Delay in Clearances
  11. 11. 11 SAMPLE Express Industry Council of India (EICI) •The EICI is an organization formed by players of the industry with the aim to protect and promote common interest of Express industry and its members •EICI has affiliation of express bodies such as Global Express Association and Conference of Asia Pacific Express Carriers ` Role of EICI Plays a vital role in interacting with the Government, the Customs and other related government organizations The organization has been successful in clearing major bottlenecks and delays that occur in express industry The organization plays a major role in bringing about speedy clearances and aid in importing greater volumes COURIER MARKET IN INDIA 2014.PPT
  12. 12. 12 Key People Products and Services Company Information Offices and Centres – India Corporate Address Player A 5th Road, 6th Street, City A – 700 xxx Tel No. 91 22 6679 xxxx Fax No. 91 22 6679 xxxx Website www.playera.com Year of Incorporation 19-- Ticker Symbol 53xxxx (BSE) Stock Exchange Bombay Stock Exchange Name Designation Person A MD Person B CFO Person C CEO Head Office Public: Domestic Company – Player A (1/3) City X Category Products/Services Courier and Express Package Distributor Door-to-door express deliveries for documents, packages, commercial shipments Packaging Air and ground express packaging services under Smart Box COURIER MARKET IN INDIA 2014.PPT
  13. 13. 13 Financial Snapshot Key Ratios Financial Summary • The company incurred a net loss of INR d units in FY 20--, as compared to net loss of INR c units in FY 20-- • The company reported total income of INR R4 units in FY 20--, registering an increase of m% over FY 20-- • The company earned an operating margin of f% in FY 20--, an increase of g percentage points over FY 20-- • The company reported debt to equity ratio of d in FY 20--, a decrease of h% over FY 20-- Total Income Net Profit/Loss INR units -20 -40 -60 -80 INR units 250 200 150 100 50 0 20-- d R4 20-- c R3 20-- b R2 20-- a R1 Private: Foreign Company – Player A (2/3) Particulars y-o-y change (2014-13) 2014 2013 2012 2011 Profitability Ratios Operating Margin -53.06 4.89% 57.96% 5.66% 5.11% Net Margin -33.91 2.65% 36.56% 3.01% 2.85% Profit Before Tax Margin -50.68 4.77% 55.45% 4.94% 4.27% Return on Equity -5.51 16.55% 22.06% 21.36% 23.63% Return on Capital Employed -348.16 -160.22% 187.94% 71.33% 84.50% Return on Working Capital -6.61 20.55% 27.15% 21.36% 20.68% Return on Assets -3.73 16.06% 19.79% 14.22% 12.38% Return on Fixed Assets 21.65 143.41% 121.76% 60.16% 42.80% Cost Ratios Operating costs (% of Sales) 53.06 95.11% 42.04% 94.34% 94.89% Administration costs (% of Sales) 0.00 0.00% 0.00% 0.00% 0.00% Interest costs (% of Sales) -2.38 0.13% 2.51% 0.72% 0.84% Liquidity Ratios Current Ratio -11.48% 1.66 1.87 2.06 1.81 Cash Ratio 5.83% 0.46 0.43 0.42 0.36 Leverage Ratios Debt to Equity Ratio -73.46% 0.03 0.11 0.50 0.91 Debt to Capital Ratio -71.29% 0.03 0.10 0.33 0.48 Interest Coverage Ratio 68.45% 38.97 23.13 7.83 6.06 Efficiency Ratios Fixed Asset Turnover 1523.99% 54.09 3.33 19.97 15.03 Asset Turnover 1019.01% 6.06 0.54 4.72 4.35 Current Asset Turnover 788.69% 3.08 0.35 3.66 3.25 Working Capital Turnover 943.41% 7.75 0.74 7.09 7.26 Capital Employed Turnover 934.35% 6.24 0.60 7.09 8.30 Improved Decline COURIER MARKET IN INDIA 2014.PPT
  14. 14. COURIER MARKET IN INDIA 2014.PPT 14 Key Business Segments Key Geographic Segments Business Highlights Description News Overview Infrastructure Recognitions 0% 50% 100% 20-- A 0% 50% 100% 20-- B X X Private: Foreign Company – Player A (3/3)
  15. 15. 15 SAMPLE COURIER MARKET IN INDIA 2014.PPT Appendix Ratio Calculations Operating Margin (Operating Income/Revenues)*100 Net Margin (Net Profit / Revenues) *100 Profit Before Tax Margin (Income Before Tax / Revenues *100 Return on Equity (ROE) (Net Income / Shareholders Equity)*100 Return on Capital (ROCE) EBIT / (Total Assets – Current Liabilities)*100 Return on Working Capital (Net Income / Working Capital) *100 Return on Assets (Net Income / Total Assets)*100 Return on Fixed Assets (Net Income / Fixed Assets) *100 Operating Costs (% of Sales) (Operating Expenses / Sales) *100 Administration Costs (% of Sales) (Administrative Expenses / Sales) *100 Interest Costs (% of Sales) (Interest Expenses / Sales) *100 Ratio Calculations Current Ratio Current Assets / Current Liabilities Cash Ratio {(Cash & Bank Balance + Marketable Securities) / Current Liabilities)} Debt to Equity Total Liabilities / Shareholders Equity Debt to Capital Ratio {Total Debt / (Shareholders Equity + Total Debt)} Interest Coverage Ratio EBIT / Interest Expense Fixed Asset Turnover Sales / Fixed Assets Asset Turnover Sales / Total Assets Current Asset Turnover Sales / Current Assets Working Capital Turnover Sales / Working Capital Capital Employed Turnover Sales / Shareholders Equity
  16. 16. 16 Thank you for the attention About Netscribes, Inc. Netscribes, Inc. is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes, Inc. is a one-stop shop designed to fulfil clients’ profitability and growth objectives. The Courier Market – India report is part of Netscribes, Inc. Automotive & Logistics Industry Series. For any queries or customized research requirements, contact us at: Disclaimer: This report is published for general information only. Although high standards have been used in the preparation, “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes and prior permission is required for guidelines on reproduction. Phone: +91 22 4098 7600 E-Mail: info@netscribes.com COURIER MARKET IN INDIA 2014.PPT

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