1.
Insert Cover Image using Slide Master View Do not distortFreight Forwarding Market – IndiaSeptember 2012

2.
Executive Summary  xx Region is the 2nd largest freight forwarding market in the world after yy  xx and yy are the global leaders in the air and ocean freight markets for the year 20‐‐ Market  Freight forwarding market in India is estimated to reach INR xx bn by 20‐‐ at a CAGR of x%  India is expected to witness considerable growth in freight business by 20‐‐ compared to European nations Drivers Challenges LE – Growth in International Trade – Stiff Competition from International Drivers & Counterparts P – Rapid Economic Growth & FDI in Logistics Challenges – Diversification into Logistics Business – Rising Freight Costs A M – Improved Transportation Infrastructure S – Rising Competitiveness among Domestic Companies  EDI Platform – Complex Operation – Lack of Skilled Manpower – Poor Infrastructure  Technology Adoption by Leading Players Technological  UPLIFT  Technology Adoption ‐ Case Study Trends  4S eTrans Major Players Company A Company B Company CCompetition Company D Company E Company F Company G Company H Company I FREIGHT FORWARDING MARKET IN INDIA 2012.PPT 2

3.
•Introduction•Freight Forwarding – Segments & Features•Market Overview Global India P LE M•Sustainable Procurement Guidelines S A•Standard Trading Conditions •Drivers & Challenges•Technological Trends•Competition•Investments•Strategic Recommendation•Appendix FREIGHT FORWARDING MARKET IN INDIA 2012.PPT 3

4.
Freight Forwarding – Definition & Types Freight Forwarding (IFFA) Services of any kind relating to the carriage, consolidation, storage, handling, packing or distribution of the goods with ancillary and advisory services in connection therewith, including but not limited to customs and fiscal matters, declaring the goods for official purposes, procuring insurance of the goods and collecting or procuring payment or documents relating to the goods Types of LE MP Freight Forwarding Air Freight S A Sea / Ocean / Ship Land Freight Rail Freight Forwarding Freight Forwarding Forwarding Forwarding Mode of Transport Mode of Transport Mode of Transport Mode of Transport Air Cargo Sea Freight Road Transport Rail FreightNote: IFFA ‐ International Federation of Freight Forwarders Associations FREIGHT FORWARDING MARKET IN INDIA 2012.PPT 4

5.
SAMPLE Freight Forwarding – Segments, Services & Benefits (1/2) Types of Freight Forwarding Segments Served Services Customer BenefitsAir Freight Forwarding • xx • xx • xxSea Freight Forwarding • xx • xx • xx FREIGHT FORWARDING MARKET IN INDIA 2012.PPT 5

6.
Freight Forwarding Market ‐ GlobalFreight Forwarding Market ‐ Global ‐ Overview• Findings LE MP A Market Size & Growth Market Size by Region (2010) INR bn10,000 8,000 x1 1.8% x2 S 25% 5% 2% 39% xx Region is the 2nd largest freight forwarding market in 6,000 the world after yy 4,000 2,000 29% 0 20‐‐ 20‐‐e Region A Region C Region E Region B Region D FREIGHT FORWARDING MARKET IN INDIA 2012.PPT 6

7.
Major Players in Global Freight Forwarding Market SAMPLE Market Share – Air Freight (20‐‐) Market Share – Sea Freight (20‐‐) 1.4% 0.5% xx is the market 2.0% yy is the market 1.5% 6.8% leader in global air 0.4% 1.5% leader in global sea / 1.7% freight forwarding 0.5% 0.5% ocean freight 1.7% market 0.5% forwarding market 1.8% 3.5% 0.7% 1.5% 2.9% 0.9% 3.0% 1.0% Company A Company F Company A Company F Company B Company G Company B Company G Company C Company H Company C Company H Company D Company I Company D Company I Company E Company J Company E Company J • FindingsNote: Market Share ‐ % of total freight forwarding market 7

8.
Freight Forwarding Market ‐ IndiaFreight Forwarding Market ‐ India ‐ Overview • Findings P LE S A M Market Size & Growth INR bn 800 x6 16.5% 600 x5 x4 x3 400 x2 x1 200 0 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ FREIGHT FORWARDING MARKET IN INDIA 2012.PPT 8

9.
India is expected to witness considerable growth in freight business by 2020 compared to the European countries SAMPLE • Findings Top 5 Freight Markets (20‐‐) Top 5 Freight Markets (20‐‐e) bn tkm bn tkm 7,000 x1 12,000 y1 6,000 10,000 x2 5,000 8,000 4,000 y2 6,000 3,000 x3 x4 x5 4,000 y3 y4 y5 2,000 x6 y6 1,000 2,000 0 0 Country 1 Country 2 Country 3 Country 4 Country 5 Country 6 Country 1 Country 2 Country 3 Country 4 Country 5 Country 6 FindingsNote: Market size is for overland freight (road, rail and inland waterways) markets (billion tkm – unit of freight transport volume) 9

10.
Freight forwarding is emerging as the businesses with high market attractiveness SAMPLE Attractiveness in Freight Forwarding Market in India Competitive Overall Current Market Size Growth Potential Innovation Potential Profitability Intensity Attractiveness ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ ‐‐ Areas of Improvements Level of improvement desired Area 6 Area 3 Area 1 Area 2 Area 5 Area 4 Relative weight based on world averageNote: Attractiveness is rated in accordance with 1 < 2 < 3 < 4 < 5 10

11.
Elements considered by shippers while selecting a mode of transportation Factors for Selecting Transportation Mode LE x6% P Findings x5% SA M x4% x1% x3% x2% A B C D E F FREIGHT FORWARDING MARKET IN INDIA 2012.PPT 11

12.
SAMPLE Freight Forwarding Market in India – SWOT Analysis Strength Weakness • xx • xx SWOT Analysis Opportunity Threat • xx • xx FREIGHT FORWARDING MARKET IN INDIA 2012.PPT 12

13.
Sustainable Procurement Guidelines for Freight Forwarding (1/5) SAMPLE Findings Sustainable Procurement of • xx Freight Forwarding Services • Greenhouse Gas Emissions • xx • Air Pollutants • xx Key Environmental Impacts FREIGHT FORWARDING MARKET IN INDIA 2012.PPT 13

14.
SAMPLE Standard Trading Conditions for Freight Forwarders (1/3) Freight Forwarder’s Role • xx Performance of the Contract • xx FREIGHT FORWARDING MARKET IN INDIA 2012.PPT 14

15.
Drivers & Challenges Challenges Stiff Competition from International Counterparts Drivers LE Rising Freight Costs Growth in International Trade MP Complex Operation A Rapid Economic Growth & FDI in S Logistics Lack of Skilled Manpower Diversification into Logistics Business Poor Infrastructure Improved Transportation Infrastructure Rising Competitiveness among Domestic Companies FREIGHT FORWARDING MARKET IN INDIA 2012.PPT 15

16.
Growth in international trade is providing huge impetus to the demand for freight forwardingGrowth in International Trade (1/2) Impact• Findings LE MP India’s Total Export S A India’s Total Import INR bn Government of India INR bn plans to double India’s 15,000 20,000 18% 20% export of goods and y4 x4 services by 2014‐15 15,000 y2 y310,000 x2 x3 y1 x1 10,000 5,000 India’s import is also expected to grow 5,000 further, particularly of 0 0 oil and capital goods 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ FREIGHT FORWARDING MARKET IN INDIA 2012.PPT 16

17.
Intercontinental trade is expected to witness considerable growth in next five years Growth in International Trade (2/2) • Findings Growth in India – US Bilateral Trade Growth in India – Russia Bilateral Trade INR bn INR bn LE a% b% b2 6,000 a2 1,000 P 4,000 a1 b1 500 2,000 0 20‐‐ 20‐‐ S A M 0 20‐‐ 20‐‐ Growth in India – Lithuania Growth in India – Latin America Growth in India – China Bilateral Trade Bilateral Trade Bilateral Trade INR bn INR bn INR bn d%15,000 c% 6,000 d2 6,000 e% e2 c2 d110,000 c1 4,000 4,000 5,000 2,000 2,000 e1 0 0 0 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ FREIGHT FORWARDING MARKET IN INDIA 2012.PPT 17

18.
Freight forwarding sector in India has witnessed a significant growth due to robust economic growth Rapid Economic Growth & FDI in Logistics (1/2) Impact • Findings P LE S A M Key Economic Indicators GDP Growth Trend* Rapid Urbanization % % b4 b5 10 a3 40 b3 a5 b1 b2 8 a2 a4 a1 30 6 20 4 2 10 0 0 20-- 20-- 20-- 20-- 20-- 20-- 20-- 20-- 20 20--*Note: Figures for financial year – April to March FREIGHT FORWARDING MARKET IN INDIA 2012.PPT 18

19.
Key economic indicators including 100% FDI in logistics shows a healthy economic outlook for India Rapid Economic Growth & FDI in Logistics (2/2) Employment Growth Rise in Aggregate Annual Disposable Income A B C D F +2.3% INR tr mn y4 y5 100 z 600 y1 y2 y3 y4 LE 80 +6.9% 24% 400 P 60 23% 200 y 40 15% M x 9% 34% 0 34% 13% 9% 7% A 20 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 49% 33% 15% S 0 23% 9% 3%~66% of the total population will be in the working age group by 2020 20‐‐ 20‐‐e 20‐‐e Total FDI in India* FDI Inflow FDI in Logistics Sector INR bn % Share 1500 x2 x2 x4 100 1000 x3 50 X% 500 0 0 20‐‐ 20‐‐ 20‐‐ 20‐‐** Logistics India is the 3rd largest investor base in the worldNote: Working age group refers to 15‐64 years old *Note: Figures for financial year – April to March **Note: Figures for Apr to Jan FREIGHT FORWARDING MARKET IN INDIA 2012.PPT 19

20.
Freight rates in India are zooming up owing to diesel price hikeRise in Freight Costs (2/2) Cost to Import‐Export Per Container•xx INR ‘000 4% 60 a4 b4 a5 b5 a1 b1 a2 b2 a3 b3 40 LE 20 MP 0 2007 2008 2009 2010 2011 Hike in Diesel Price S A Destinations Delhi to A Rate Increased by (in INR) ‐‐ Import Export Freight Rate Now (in INR) ‐‐INR / litre 14% Delhi to B ‐‐ ‐‐50 x2 x1 Delhi to C ‐‐ ‐‐40 Delhi to D ‐‐ ‐‐30 Delhi to E ‐‐ ‐‐20 Delhi to F ‐‐ ‐‐10 Delhi to G ‐‐ ‐‐ Delhi to H ‐‐ ‐‐ 0 Earlier Now Delhi to I ‐‐ ‐‐ FREIGHT FORWARDING MARKET IN INDIA 2012.PPT 20

21.
Process improvement and greater use of technology have the potential to… Information flow through the Logistics Value Chain xx xx xx xx xx xx xx LE P Electronic Data Interchange (EDI) Needed across the Entire Supply Chain M xx S A xx xx EDI Platform xx xx xx xx xx FREIGHT FORWARDING MARKET IN INDIA 2012.PPT 21

22.
…significantly improve operating efficiencies for the Indian logistics sectorShippers & Consignees Custodian Benefits UPLIFT • xx • xx LE Universal Platform for Logistics & P Integrated Freight Transport CHAs / Forwarders S A M xx xx Customs xx Carriers• xx • xx • xx FREIGHT FORWARDING MARKET IN INDIA 2012.PPT 22

23.
Technology Adoption by Leading Players (1/2) Freight Forwarding Industry & Four Soft Alliance (FFIFA) • xx xx LE Greatly facilitates the freight forwarding / CHAs industry MP S A IT • xx Awareness FREIGHT FORWARDING MARKET IN INDIA 2012.PPT 23

24.
Major Public Companies ‐ SummaryNet Profit/Loss2,8002,600 Size of the Bubble represents Market Capitalization in INR mn2,400 m12,200 2,000 LE1,800 P1,600 M1,400 A1,200 m21,000 800 600 400 S 200 m4 m3 0 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 Total income Company A Company B Company C Company D Note: All figures are in INR mn and are based on the latest financials available FREIGHT FORWARDING MARKET IN INDIA 2012.PPT 24

25.
Public: Domestic Company – Company A (1/3)Company Information Offices and Centres – India Corporate HeadquarterTel No.Fax No.WebsiteYear of Incorporation LE Ticker Symbol MP AStock Exchange Mumbai Head OfficeProducts and ServicesCategoryLogistics solutions Products/Services S Key People Name Designation FREIGHT FORWARDING MARKET IN INDIA 2012.PPT 25

26.
Public: Domestic Company ‐ Company A (2/3) Financial Snapshot SAMPLE Key Ratios y‐o‐y change Total Income Net Profit/Loss INR mn Particulars 2012 2011 2010 2009 INR mn (2012‐11) 35,858 Profitability Ratios40,000 34,381 3,000 28,803 Operating Margin ‐0.19 8.78% 8.97% 7.61% 8.01%30,000 Net Margin 0.06 6.54% 6.48% 5.76% 6.24% 20,836 2,00020,000 Profit Before Tax Margin ‐0.15 8.44% 8.58% 7.77% 8.13% 1,000 Return on Equity 0.48 15.42% 14.94% 13.74% 13.07%10,000 Return on Capital Employed 1.52 14.71% 13.18% 13.53% 13.95% 0 0 Return on Working Capital ‐11023.91 ‐ 50.35% 46.22% 36.95% 10973.56% 2009 2010 2011 2012 Return on Assets 0.32 8.27% 7.95% 8.07% 8.62% Financial Summary Return on Fixed Assets 4.55 16.76% 12.20% 19.68% 23.75% Cost Ratios• The company earned a net profit of INR xx mn in FY 20‐‐, as Operating costs (% of Sales) 0.19 91.11% 90.92% 92.34% 91.90% compared to net profit of INR xx mn in FY 20‐‐ Administration costs (% of 17.24 17.24% 0.00% 6.07% 8.64%• The company reported total income of INR xx mn in FY 20‐‐, Sales) registering an increase of xx% over FY 20‐‐ Interest costs (% of Sales) 0.03 1.65% 1.62% 0.68% 1.12%• The company earned an operating margin of xx% in FY 20‐‐, a Liquidity Ratios decrease of xx percentage points over FY ‐‐ Current Ratio ‐48.94% 1.00 1.95 1.82 2.13 Cash Ratio ‐43.37% 0.26 0.47 0.63 0.83• The company reported debt to equity ratio of xx in FY 20‐‐, a Leverage Ratios decrease of xx% over FY ‐‐ Debt to Equity Ratio ‐1.63% 0.86 0.88 0.70 0.52 Key Financial Performance Indicators Debt to Capital Ratio ‐20.15% 0.27 0.34 0.24 0.17 Interest Coverage Ratio ‐3.90% 5.39 5.61 11.27 7.20 Indicators Value (25/09/2012) Efficiency Ratios Market Capitalization (INR mn) xx Fixed Asset Turnover 35.97% 2.53 1.86 3.39 3.77 Total Enterprise Value (INR mn) xx Asset Turnover 3.01% 1.25 1.21 1.39 1.37 Current Asset Turnover 36.26% 5.10 3.74 3.59 3.11 EPS (INR) xx Working Capital Turnover ‐21677.73% ‐1655.74 7.67 7.97 5.86 PE Ratio (Absolute)‐25th Jun, 2012 xx Capital Employed Turnover 2.23% 2.33 2.28 2.37 2.07 Note: FYC 2012 Improved Decline FREIGHT FORWARDING MARKET IN INDIA 2012.PPT 26

27.
Public: Domestic Company ‐ Company A (3/3)Key Business Segments Key Geographic Segments Container Freight Stations Australia & New Zealand Mediterranean Far East Europe Project & Engineering Solutions Africa America India Multimodal Transport Operations % % 2% 2% 2%100% 6% 7% 7% 100% 2% 10% 10% 16% 6% 2% 16% 18% 5% 19% 4% LE50% 94% 83% 83% 50% 28% 27% 15% 29% 15% P 30% 31% 29% 0% 0% M 2008 2009 2010 2008 2009 2010Business HighlightsDescription Overview News S AICD/CFS FacilitiesRankAcquisitions FREIGHT FORWARDING MARKET IN INDIA 2012.PPT 27

28.
Major Private Companies ‐ SummaryNet Profit/Loss 800 Size of the Bubble represents Total Assets 700 in INR mn 600 LE t1 500 400 MP 300 200 100 S A t5 t3 t7 t2 0 t6 t4 ‐100 Total income ‐5,000 0 5,000 10,000 15,000 Company A Company B Company C Company D Company E Company F Company G Note: All figures are in INR mn and are based on the latest financials available FREIGHT FORWARDING MARKET IN INDIA 2012.PPT 28

29.
Private: Domestic Company ‐ Company B (1/3)Company Information Offices and Centres – India Corporate Headquarter Tel No. Delhi LEFax No.WebsiteYear of Incorporation MP A Head OfficeProducts and ServicesCategory Products/Services S Key People Name DesignationDiversified Support Services FREIGHT FORWARDING MARKET IN INDIA 2012.PPT 29

30.
Private: Domestic Company ‐ Company B (2/3) Financial Snapshot Key Ratios y‐o‐y change Total Income Net Profit/Loss Particulars 2010 2009 2008 2007 (2010‐09) INR mn INR mn Profitability Ratios1500 1376.6 0 Operating Margin N.A. N.A. N.A. N.A. 90.63% 1169.3 Net Margin N.A. N.A. N.A. N.A. 4.46% Profit Before Tax Margin N.A. N.A. N.A. N.A. 5.61%1000 ‐200 Return on Equity 0.00 0.00% 0.00% 0.00% 19.13% 559.6 Return on Capital Employed 0.00 0.00% 0.00% 0.00% 1438.72% LE500 ‐400 Return on Working Capital 0.00 0.00% 0.00% 0.00% 34.87% 222.9 Return on Assets P 0.00 0.00% 0.00% 0.00% 16.44% Return on Fixed Assets 0.00 0.00% 0.00% 0.00% 325.58% 0 ‐600 M Cost Ratios 2008 2009 2010 2011 A Operating costs (% of Sales) N.A. N.A. N.A. N.A. 6.54% S Administration costs (% of N.A. N.A. N.A. N.A. 6.13% Sales) Financial Summary Interest costs (% of Sales) N.A. N.A. N.A. N.A. 0.09% • The company incurred a net loss of INR xx mn in FY 20‐‐, as Liquidity Ratios Current Ratio 32.99% 2.67 2.01 2.08 1.61 compared to net loss of INR xx mn in FY 20‐‐ Cash Ratio 16.04% 1.28 1.10 1.38 0.80 • The company reported total income of INR xxmn in FY 20‐‐, Leverage Ratios registering an increase of xx% over FY 20‐‐ Debt to Equity Ratio 2.26% 0.18 0.17 0.05 0.16 Debt to Capital Ratio 1.92% 0.15 0.15 0.05 0.14 • The company earned an operating margin of xx% in FY 20‐‐, an Interest Coverage Ratio N.A. N.A. N.A. N.A. 1098.85 increase of xx percentage points over FY 20‐‐ Efficiency Ratios • The company reported debt to equity ratio of xx in FY 20‐‐, an Fixed Asset Turnover N.A. 0.00 0.00 0.00 70.86 Asset Turnover N.A. 0.00 0.00 0.00 3.58 increase of xx% over FY 20‐‐ Current Asset Turnover N.A. 0.00 0.00 0.00 2.89 Working Capital Turnover N.A. 0.00 0.00 0.00 7.59 Capital Employed Turnover N.A. 0.00 0.00 0.00 4.16 Improved Decline FREIGHT FORWARDING MARKET IN INDIA 2012.PPT 30

31.
SAMPLE Private: Domestic Company – Company B (3/3)Business HighlightsDescription NewsOverviewNetworkAwards FREIGHT FORWARDING MARKET IN INDIA 2012.PPT 31

32.
Significant M&A activity being witnessed in this sector over the last few years SAMPLE Investments in Freight Forwarding Market in India Outbound M&A Deals, JVs & other Investments Date Target Acquirer/Investor Amount (INR mn) Stake mm‐yy Company 1 Company 11 ‐‐ ‐‐ mm‐yy Company 2 Company 12 ‐‐ ‐‐ mm‐yy Company 3 Company 13 ‐‐ ‐‐ mm‐yy Company 4 Company 14 ‐‐ ‐‐ mm‐yy Company 5 Company 15 ‐‐ ‐‐ mm‐yy Company 6 Company 16 ‐‐ ‐‐ mm‐yy Company 7 Company 17 ‐‐ ‐‐ mm‐yy Company 8 Company 18 ‐‐ ‐‐ mm‐yy Company 9 Company 19 ‐‐ ‐‐ mm‐yy Company 10 Company 20 ‐‐ ‐‐ FREIGHT FORWARDING MARKET IN INDIA 2012.PPT 32

33.
SAMPLE Strategic Recommendation for Freight Forwarders • xx • xx • xx • xx FREIGHT FORWARDING MARKET IN INDIA 2012.PPT 33

34.
Thank you for the attentionThe Freight Forwarding Market – India report is part of Netscribes’ Transportation & Logistics Series.For more detailed information or customized research requirements please contact:Phone: +91 33 4064 6214E‐Mail: sales@netscribes.comFollow us on:About NetscribesNetscribes 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 is a one‐stop shop designed to fulfil clients’ profitability and growth objectives.Disclaimer: This report is published for general information only. Although high standards have been used in the preparation, “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes and prior permission is required for guidelines on reproduction. FREIGHT FORWARDING MARKET IN INDIA 2012.PPT 34