For the complete report, get in touch with us at: info@netscribes.com 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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Courier Market – India
October 2014

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
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
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
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
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
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
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
Key
Issues
Delivery Snags
Internet Accessibility
E-Billing Popularity
COURIER MARKET IN INDIA 2014.PPT

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
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
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
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. 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
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
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