Market Research Report : Air cargo market in india 2015 - Sample by Netscribes, Inc.

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Air Cargo Market â&#x20AC;&#x201C; India April 2015

Executive Summary

Market Overview

 Air transport is a vital component of many international logistics networks  The air cargo supply chain is a combined set of interconnected parties, locations, procedures, and information exchanges that enables cargo to move from its origin to its destination by air  World air cargo traffic is forecast to grow an average x% per year over the next 20 years  India is projected to be amongst the top ten international air cargo market by 2018  Air Cargo in India growing at a steadily increasing rate is poised to reach y mn tons by 2019

Drivers

Drivers & Challenges

Government Initiatives

Challenges

 Growth in International Trade  Rapid Economic Growth  Growth in Retail Sector  Thriving Pharmaceutical Shipments  Growth in e-Tailing  Poor Infrastructure of the Port Sector

 Rising Air Traffic Fuel (ATF) Prices  High Taxes Raising Operating Costs  Sub Standard Infrastructure and Unavailability of Resources

 FDI Regime – Sectors Pertaining to the Freight and Transportation Industry  Development of the Surface Transport Sector

 Policies by the Ministry of Civil Aviation  Phased Implementation of VAT  Infrastructure Initiatives – Union Budget 2014

Major Players

Competition

Player 1

Player 2

Player 3

Player 4

Player 5

Player 6

AIR CARGO MARKET IN INDIA 2015.PPT

•Macroeconomic Indicators •Introduction •Market Overview •Major Domestic Airlines •Drivers & Challenges •Key Issues •Government Initiatives •Regulatory Framework •Technological Trends •Competitive Landscape •Strategic Recommendation •Appendix AIR CARGO MARKET IN INDIA 2015.PPT

Macroeconomic Indicators (1/3)

SAMPLE

GDP at Factor Cost: Quarterly INR tn

Q2 2011-12

2012-13

Q3 2014-15

2013-14

Inflation Rate: Monthly %

Jul 2013 - Aug 2013

Aug 2013 - Sep 2013

Sep 2013 - Oct 2013

Oct 2013 - Nov 2013

AIR CARGO MARKET IN INDIA 2015.PPT

Nov 2013 - Dec 2013

Indian aviation sector grew remarkably in the last decade with robust growth in passenger and cargo traffic

SAMPLE

Aviation Sector â&#x20AC;&#x201C; Industry Classification

"The world is focused on Indian aviation - from manufacturers, tourism boards, airlines, global businesses to individual travelers, shippers and businessmen. If we can find common purpose among all stakeholders in Indian aviation, a bright future is at hand," as per Mr Tony Tyler, Director General and CEO of International Air Transport Association (IATA)

Aviation Industry

Note: MRO: Maintenance, repair and operations

AIR CARGO MARKET IN INDIA 2015.PPT

Air Cargo Movement â&#x20AC;&#x201C; Value Chain (1/2)

SAMPLE

The air cargo supply chain is a combined set of interconnected parties, locations, procedures, and information exchanges that enables cargo to move from its origin to its destination by air

AIR CARGO MARKET IN INDIA 2015.PPT

Growth in world air cargo has slowed over the past decade mainly owing to consistent rise in fuel prices Global Air Cargo – Market Overview (1/2)

SAMPLE

• World air cargo traffic is forecast to grow an average x% per year over the next 20 years to reach a total of more than twice the amount as reported in 2013 • Asia–North America, Europe-Asia, and Europe–North America are the leading east-west air cargo markets • Two principal causes are responsible for the weak air cargo growth between 2011 and 2013 are underperforming world economy and lackluster growth in trade, particularly trade in the commodities that are traditionally carried as air cargo • Global air trade continued to gain momentum in 2014, and by Jul 2014 , traffic had grown y% compared to the first seven months of 2013

World Air Cargo Market – Size and Growth

Projected Growth in World Air Freight (RTKs) bn RTK

bn ton km

+Aa% +b%

2005 2006 2007 2008 2009 2010 2011 2012 2013

2013

2033e

Note: RTK – Revenue Ton Kms are used to determine the total amount of freight that is shipped by a transportation company in terms of revenue earned

AIR CARGO MARKET IN INDIA 2015.PPT

Asia overall and Domestic China will continue to lead the world in average annual air cargo growth… Global Air Cargo – Major Routes (1/2)

SAMPLE

Historical and Forecast Air Cargo Growth Rates (Major Routes) 2003-2013

2014-2033

Asia– North America

Europe- Intra-Asia Europe– Asia North America

Intra– Domestic Latin Latin North China America– America– America Europe North America

AIR CARGO MARKET IN INDIA 2015.PPT

AfricaEurope

South Asia– Europe

Middle East– Europe

IntraEurope

Air cargo sector continues to demonstrate a consistent rapid growth

SAMPLE

Indian Air Cargo – Market Overview (1/2)

• Air cargo serves as a vital link between domestic and international markets • Air Cargo is poised to grow at a CAGR of x% over the next five years until 2019 • Significant untapped potential of air cargo in India is apparent from the fact that the total cargo volume handled at Indian airports lagged behind traffic handled at other major international airports • Rising local demand, improved international connectivity and resulting consolidation activity, and expanding cargo-handling infrastructure are the key drivers of increased freight handling at airports • Increased trade activity, especially of physical goods between India and the Asia-Pacific region and the relocation of trade epicenters to China, Southeast Asia and Africa could open up new opportunities for air cargo in India in the coming five years

Air Cargo Market – Market Size and Growth mn tons +b% +a%

2008

2009

2010

2011

2012

2013

2014

2015e

2016e

2017e

2018e

2019e

Note: Market size is based on all cargo handled by AAI airports. Unless otherwise specified all years mentioned are financial years from Apr-Mar

AIR CARGO MARKET IN INDIA 2015.PPT

International cargo, which constitutes majority of total cargo is largely handled by the metro airports Air Freight Statistics – Selected Segments (1/3)

SAMPLE

Growth in International Air Cargo by Indian Carriers

000’ tons

2009

Growth in Domestic Air Cargo by Indian Carriers

000’ tons

+a%

2010

2011

2012

2013

2014

2009

+b%

2010

2011

2012

2013

2014

Freight Handled by Major Airports, 2013 (Jan-Sept), Tons International

Mumbai

Delhi

Chennai

Kolkata

Domestic

Bangalore

AIR CARGO MARKET IN INDIA 2015.PPT

Hyderabad

Ahmedabad 12

Major Domestic Airlines (1/9) Air India (1/2)

SAMPLE

Total Cargo on All Scheduled International Services (Last Five Years) 000’ tons +a%

2010

2011

2012

2013

2014

Total Freight

Total Mail

000’ tons

000’ tons +c%

+b%

2010

2011

2012

2013

2014

2010

2011

2012

2013

2014

Note: Figures are for calendar year Jan - Dec

AIR CARGO MARKET IN INDIA 2015.PPT

Drivers & Challenges

Drivers Growth in International Trade

Challenges

Rapid Economic Growth

Rising Air Traffic Fuel (ATF) Prices

Growth in Retail Sector

High Taxes Raising Operating Costs

Thriving Pharmaceutical Shipments

Sub-standard Infrastructure and Unavailability of Resources

Growth in e-Tailing

Poor Infrastructure of the Port Sector

AIR CARGO MARKET IN INDIA 2015.PPT

Country wise scheduled freight carried to and from India by all airlines

SAMPLE

Growth in International Trade (3/3) India – China Air Trade

tons

India – USA Air Trade

tons

2013

2014

India – Saudi Arabia Air Trade tons

2013

2014

India – UAE Air Trade

tons

2013

2014

2013

2014

India – Germany Air Trade

India – Hong Kong Air Trade

tons

2013

2014

2012-13

2013-14

Saudi Arabia and USA shows the maximum growth in bilateral air trade for the last fiscal year AIR CARGO MARKET IN INDIA 2015.PPT

Reduction of sales tax on ATF is considered to be one of the most critical needs of the aviation sector Rising Air Traffic Fuel (ATF) Prices (1/2)

SAMPLE

Impact

• Text

Domestic Production and Consumption of ATF Production

Consumption

Comparison of ATF Prices – India and Competing Hubs USD/kilolitre

000 tons

India 2009

2010

2011

2012

2013

Singapore Bankok

Kaula Lumper

Dubai

Note: ATF price comparison are for the year 2011 AIR CARGO MARKET IN INDIA 2015.PPT

Supply of skilled human resource has not kept pace with the rapid growth in demand for human resource

SAMPLE

Sub Standard Infrastructure and Unavailability of Resources (2/3) â&#x20AC;˘ Text

Workforce Requirement Forecasts for Domestic Carriers

Airport Workforce Requirement Forecast Total Workers

Pilots Cabin Crew Aircratf Engineerand Technicians

Other Staff

2011

2017

2011

2017

Note: The list of Airports is not exhaustive AIR CARGO MARKET IN INDIA 2015.PPT

Key Issues – Summary

SAMPLE Text

Aviation Sector Text

Text

AIR CARGO MARKET IN INDIA 2015.PPT

Indian Transportation Sector Particulars vs. Global Benchmark (2013)

SAMPLE

Particulars

India

Global

India

Global

India

Global

India

China

Average Truck Speed (kmph)

Road

Four Lane Road Length (kms) National Highway Length (kms) Average Distance Traveled by a Truck in a Day (kms)

Particulars Ports

Turnaround Time (hours) Pre-berthing Delay (hours)

Particulars Air

Airport Waiting Time – Export (hours) Airport Waiting Time – Import (hours) Aviation Turbine Fuel as % of Operation Cost

Particulars

Railway

Double Lines Number of Locomotives Number of Freight Wagons

The Indian transportation sector has a lot to improvise, invest and improve on in order to exploit the potentials of the freight market AIR CARGO MARKET IN INDIA 2015.PPT

Government Initiatives

SAMPLE

FDI Regime – Sectors Pertaining to the Freight and Transportation Industry

Development of the Surface Transport Sector

Role of Government `

Policies by the Ministry of Civil Aviation

Phased Implementation of VAT

Infrastructure Initiatives – Union Budget 2014

AIR CARGO MARKET IN INDIA 2015.PPT

Regulatory Framework (4/4) Supply Chain Document Requirements (2/2)

SAMPLE

AIR CARGO MARKET IN INDIA 2015.PPT

Material Handling Technology (2/3)

SAMPLE

Automated Guided Vehicle System (AGVS) Process and Benefits

Process

• Text

Advantages

• Text

Elevating Transfer Vehicles (ETV) Process and Benefits Process

• Text

AIR CARGO MARKET IN INDIA 2015.PPT

Porter’s Five Forces Analysis

SAMPLE Impact

Threat of New Entrants • Text

Impact

Impact Impact Competitive Rivalry Bargaining Power of Buyers

Bargaining Power of Suppliers • Text

• Text

Impact

Threat of Substitutes • Text

AIR CARGO MARKET IN INDIA 2015.PPT

Competitive Benchmarking (2/5)

SAMPLE

Key Ratios of Top 3 Companies – Operational Basis (FY 2013) (1/3) Operating Margin

Player 1

Net Margin

Player 2

Player 3

• Text

AIR CARGO MARKET IN INDIA 2015.PPT

Public: Domestic Company – Player 1 (1/5) Company Information

SAMPLE Offices and Centres – India

Corporate Address

Tel No. Fax No.

Website Year of Incorporation Head Office

Ticker Symbol Stock Exchange

Products and Services Category

Products/Services

Key People Name

Designation

Sector (EPC)

AIR CARGO MARKET IN INDIA 2015.PPT

Public: Domestic Company – Player 1 (2/5)

SAMPLE

Financial Snapshot Total Income

Key Ratios

Net Profit/Loss

Particulars

INR mn

y-o-y change (2014-13)

2014

2013

2012

2011

Profitability Ratios Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed

2011

2012

2013

Return on Working Capital

2014

Return on Assets Return on Fixed Assets

Financial Summary • The company earned a net profit of INR - mn in FY 2014, as compared to net profit of INR - mn in FY 2013 • The company reported total income of INR - mn in FY 2014, registering an increase of -% over FY 2013 • The company earned an operating margin of -% in FY 2014, a decrease of m percentage points over FY 2013

• The company reported debt to equity ratio of - in FY 2014, registering an increase of -% over FY 2013

Key Financial Performance Indicators Indicators

Value (03/02/2014)

Market Capitalization (INR mn) Total Enterprise Value (INR mn) EPS (INR)

PE Ratio (Absolute)

Cost Ratios Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales)

Liquidity Ratios Current Ratio Cash Ratio

Leverage Ratios Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio

Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover

Note : This company has had a fiscal year change on Dec-31, 2011

Improved

AIR CARGO MARKET IN INDIA 2015.PPT

Decline

Public: Domestic Company – Player 1 (3/5)

SAMPLE

Key Business Segments

Key Geographic Segments

Integrated Air and Ground Transportation and Distribution

India

Text

2014

Business Highlights (1/2) Description

News

Overview

• Text

Infrastructure

• Text

Recognitions

• Text AIR CARGO MARKET IN INDIA 2015.PPT

Public: Domestic Company – Player 1 (4/5) Business Highlights (2/2) Description

News

Services Offered

• Text

SAMPLE

AIR CARGO MARKET IN INDIA 2015.PPT

Public: Domestic Company – Player 1 – SWOT Analysis (5/5)

SAMPLE

• Text

AIR CARGO MARKET IN INDIA 2015.PPT

Private: Domestic Company – Player 2 (1/5) Company Information

SAMPLE Offices and Centres – India

Corporate Headquarter

Tel No.

Fax No. Website Year of Incorporation Head Office

Products and Services Category

Products/Services

Key People Name

AIR CARGO MARKET IN INDIA 2015.PPT

Designation

Private: Domestic Company â&#x20AC;&#x201C; Player 2 (2/5)

SAMPLE

Shareholders of the Company Name

Ownership Structure

No. of Shares held

Total

100%

Ownership structure corresponds to Date of AGM: 31/03/2013

AIR CARGO MARKET IN INDIA 2015.PPT

Private: Domestic Company – Player 2 (3/5)

SAMPLE

Financial Snapshot Total Income

Key Ratios

Net Profit/Loss

Particulars

INR mn

2010

2011

2012

2013

Financial Summary

2012

2011

2010

Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed Return on Working Capital Return on Assets Return on Fixed Assets

Cost Ratios Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales)

Liquidity Ratios

• The company reported total income of INR - mn in FY 2013, registering an increase of -% over FY 2012

Leverage Ratios

• The company reported debt to equity ratio of q in FY 2013, an increase of -% over FY 2012

2013

Profitability Ratios

• The company earned a net profit of INR - mn in FY 2013, as compared to net profit of INR - mn in FY 2012

• The company earned an operating margin of -% in FY 2013, an increase of k percentage points over FY 2012

y-o-y change (2013-12)

Current Ratio Cash Ratio Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio

Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover Improved

AIR CARGO MARKET IN INDIA 2015.PPT

Decline

Private: Domestic Company – Player 2 (4/5)

SAMPLE

Business Highlights Description

News

Overview

• Text

Cargo Services

• Text

Awards

• Text

AIR CARGO MARKET IN INDIA 2015.PPT

Private: Domestic Company – Player 2 – SWOT Analysis (5/5)

SAMPLE

• Text

AIR CARGO MARKET IN INDIA 2015.PPT

•Macroeconomic Indicators •Introduction •Market Overview Global India

•Major Domestic Airlines •Drivers & Challenges •Key Issues •Government Initiatives •Regulatory Framework •Technological Trends •Competitive Landscape •Strategic Recommendation •Appendix AIR CARGO MARKET IN INDIA 2015.PPT

Strategic Recommendation (3/5)

SAMPLE

Accomplishing Industry Status for Air Cargo Sector Major Challenges Faced Text

Text

Improvements Desired Text

Text

AIR CARGO MARKET IN INDIA 2015.PPT

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