Reverse Logistics Market – India February 2015
Executive Summary Market
Drivers & Challenges
Key Issues
Reverse logistics is one of the growing sectors in India that has attracted a number of players Retail boom in India is aiding the growth of reverse logistics market in the country
Drivers
Challenges
Government Concern for Sustainability Garnering Customer Satisfaction Growing Consumerism among Indians Economic Viability of Reusing Goods
Low Importance to Returns Management Infrastructural Bottlenecks Warehouse Space Deficit
Mismanagement in Segregating Returns High Distribution Costs Retailer-Manufacturer Conflict
SAMPLE Key Players
Competitive Landscape
Company A
Company B
Company C
Company D
Company E
Company F
REVERSE LOGISTICS MARKET IN INDIA 2015.PPT
2
• Macroeconomic Indicators • Introduction • Forward & Reverse Logistics: Comparison • Market Overview • Distribution Channel • Need for Reverse Logistics • Reverse Logistics Models • Industry-wise Outlook • Drivers & Challenges • Key Issues • Technology Adoption • Recent Trend • Competitive Landscape • Strategic Recommendations • Appendix REVERSE LOGISTICS MARKET IN INDIA 2015.PPT
3
Reverse logistics market is on a gradual growth path with manufacturers realizing its significance Reverse Logistics – Indian Market Overview (1/2) • Text
SAMPLE Market Size & Growth – Reverse Logistics INR bn x
2013
2014e
2015e
2016e
REVERSE LOGISTICS MARKET IN INDIA 2015.PPT
2017e
2018e 4
Reverse logistics is currently experiencing a strong demand from Southern India followed by Western India Reverse Logistics – Indian Market Overview (2/2)
• Text
• Text
• Text
• Text
REVERSE LOGISTICS MARKET IN INDIA 2015.PPT
5
Reverse Logistics – Distribution Channel Text Text
SAMPLE
Text
Text
Text
Text
Text
Text
Text Text
Text
Text
Text Text
Text Text
Text
Text
REVERSE LOGISTICS MARKET IN INDIA 2015.PPT
6
Forward and Reverse Supply Chain in Retail Sector Text
Text
Text
Text
Key ASN
Text
Text
Text
Product Flow
Text
Information Flow
Text ASN Text
Text
Text
Text
Text
ASN (Advanced Shipping Notice) – Detailed shipment information transmitted to customer or consignee in advance of delivery, designating the contents (individual products and quantities of each) and nature of the shipment. May also include carrier and shipment specifics including time of shipment and expected time of arrival Milk Run - Delivery method for mixed loads from different suppliers wherein one vehicle visits each supplier on a daily basis and picks up deliveries for that customer
REVERSE LOGISTICS MARKET IN INDIA 2015.PPT
7
Shorter lifecycles are driving the need for logistics and reverse logistics in the electronics industry Need for Logistics in Indian Electronics Sector • Text
SAMPLE Need for Reverse Logistics in Indian Electronics Sector • Text
Facts
• Text
REVERSE LOGISTICS MARKET IN INDIA 2015.PPT
8
Forward and Reverse Supply Chain in Automobile Sector Text
SAMPLE
Text
Text
Text
Text
Text
Text
Text
Text
Text
Text
Text
Text
REVERSE LOGISTICS MARKET IN INDIA 2015.PPT
9
Warehousing space crunch is a difficulty that persists across industries with regards to logistics related demand Warehouse Space Deficit
Impact
• Text
SAMPLE Projected Growth In Warehousing Requirement million sq. ft.
a
2014
2019e
Indian is already struggling to meet warehousing demand and with gradual prospering of reverse logistics, warehouse space demand will be a critical factor of success for reverse logistics REVERSE LOGISTICS MARKET IN INDIA 2015.PPT
10
Reverse logistics is plagued by mismanaged returns, high distribution costs and retailer-manufacturer conflicts
Key Issues
Text
• Text
Text
• Text
Text
• Text
SAMPLE
REVERSE LOGISTICS MARKET IN INDIA 2015.PPT
11
Growth of electronic retail business has a positive impact on reverse logistics… Growth in e-Commerce • Text
SAMPLE e-Commerce Market Size & Growth – India
e-Commerce Market Split (2013) – India
INR tn
Travel
Retailing Financial Services a
Other Services Digital Downloads
1 2013
2014e
2015e
2016e
2017e
2018e
REVERSE LOGISTICS MARKET IN INDIA 2015.PPT
12
Porter’s Five Forces Analysis
SAMPLE Impact Low
Threat of New Entrants • Text
Impact High
Bargaining Power of Suppliers • Text
Impact Medium
Impact Medium
Bargaining Power of Buyers
Competitive Rivalry
• Text
• Text
Impact Low
Threat of Substitutes • Text
REVERSE LOGISTICS MARKET IN INDIA 2015.PPT
13
Public: Domestic Company – ABC (1/5) Company Information
Offices and Centers – India
Corporate Address
Tel No. Fax No. Website Year of Incorporation Hyderabad
Ticker Symbol Stock Exchange
Head Office
Products and Services Category
Key People
Products/Services
Name
Designation
Products
SAMPLE REVERSE LOGISTICS MARKET IN INDIA 2015.PPT
14
Public: Domestic Company – ABC (2/5) Financial Snapshot Total Income
Key Ratios Net Profit/Loss
Particulars
INR mn
INR mn
2010
2011
2012
2013
Financial Summary • The company reported total income of INR mn in FY 2013, registering decrease of % over FY 2012 • The company earned an operating margin of in FY 2013, a decrease of percentage points over FY 2012 • The company reported debt to equity ratio of Y 2013, a decrease of over FY 2012
Total Enterprise Value (INR mn) EPS (INR) PE Ratio (Abs)
2012
2011
2010
Profitability Ratios 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 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
Key Financial Performance Indicators Indicators
2013
Cost Ratios
• The company incurred a net profit of INR mn in FY 2013, as compared to net profit of INR mn in FY 2012
Market Capitalization (INR mn)
y-o-y change (2013-12)
Value (5/08/2014)
Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover Improved
REVERSE LOGISTICS MARKET IN INDIA 2015.PPT
Decline
15
Public: Domestic Company – ABC (3/5) Key Business Segments Text
Key Geographic Segments
Text
India
Text
2010
2011
2012
2013
2013
Business Highlights (1/2) Description
News
Overview
• Text
SAMPLE REVERSE LOGISTICS MARKET IN INDIA 2015.PPT
16
Public: Domestic Company – ABC (4/5) Business Highlights (2/2) Description
News
Exports
• Text
Retailing
• Text
Marketing
• Text
SAMPLE REVERSE LOGISTICS MARKET IN INDIA 2015.PPT
17
Public: Domestic Company – ABC – SWOT Analysis (5/5)
SAMPLE • Text
• Text
S
W
O
T
• Text
• Text
REVERSE LOGISTICS MARKET IN INDIA 2015.PPT
18
Private: Domestic Company – ABC (1/5) Company Information
Offices and Centers – India
Corporate Address
Tel No. Fax No. Website Year of Incorporation Head Office
Products and Services Category
Products/Services
Key People
Products
Name
Designation
SAMPLE REVERSE LOGISTICS MARKET IN INDIA 2015.PPT
19
Private: Domestic Company – ABC (2/5) Ownership Structure
Shareholders of the Company Name
No. of Shares held
Foreign holdings Bodies corporate
SAMPLE Total
Ownership structure corresponds to Date of AGM: 5/08/2013
REVERSE LOGISTICS MARKET IN INDIA 2015.PPT
20
Private: Domestic Company – ABC (3/5) Financial Snapshot Total Income
Key Ratios Particulars
Net Profit/Loss
INR mn
INR mn
y-o-y change 2013 (2013-12)
2012
2011
2010
Profitability Ratios 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
2010
2011
2012
2013
Financial Summary
Cost Ratios Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales)
• The company incurred a net profit of INR mn in FY 2013, as compared to net profit of INR mn in FY 2012
Liquidity Ratios
• The company reported total income of INR mn in FY 2013, registering an increase of over FY 2012
Leverage Ratios
• The company earned an operating margin of in FY 2013, an increase of percentage points over FY 2012 • The company reported debt to equity ratio of in FY 2013, an increase of %over FY 2012
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
REVERSE LOGISTICS MARKET IN INDIA 2015.PPT
Decline
21
Private: Domestic Company – ABC (4/5) Business Highlights Description
News
Overview
• Text
Packing Facility
• Text
Distribution Network
• Text
Exports
• Text
SAMPLE
REVERSE LOGISTICS MARKET IN INDIA 2015.PPT
22
Private: Domestic Company – ABC – SWOT Analysis (5/5)
SAMPLE • Text
• Text
S
W
O
T
• Text
• Text
REVERSE LOGISTICS MARKET IN INDIA 2015.PPT
23
Strategic Recommendations
Skilled Manpower
• Text
Systematic Returns Segregation
• Text
Technology Adoption
• Text
Competitive Pricing
• Text
SAMPLE
REVERSE LOGISTICS MARKET IN INDIA 2015.PPT
24
Thank you for the attention Reverse Logistics Market – India report is part of Netscribes’ Automotive and Logistics Series. For any queries or customized research requirements, contact us at: Phone:
+91 22 4098 7600
E-Mail:
info@netscribes.com
•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. •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. REVERSE LOGISTICS MARKET IN INDIA 2015.PPT
25