Third Party Logistics Market – India November 2014
Executive Summary Market
Drivers & Challenges
Technology Adoption
SAMPLE
Third party logistics is one of the growing sectors in India that has attracted a number of players The market is rapidly evolving in India with more customers using outsourcing options to reduce cost
Drivers
Challenges
Economic Growth High Cost of Logistics in India Growth in Consumer Electronics and Durables Industry Growth in Auto & Auto Components Sector Growth in Retail Sector Phased Implementation of VAT Infra Related Government Initiatives
Infrastructure Congestion High Inventory Levels Lack of Skilled Manpower Lack of Trust and Awareness
Identification Technology – Barcode, RFID Material Handling Technology - Automated Guided Vehicle System (AGVS) , Information directed System Communication Technology - Global Positioning System (GPS) Tracking Information Technology – ERP, eBizNET – SC suite, Vin eRetail Key Players
Competitive Landscape
Company A
Company B
Company C
Company D
Company E
Company F
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•Macroeconomic Indicators •Introduction •Market Overview Global India
•3PL – Shipper Relationship •Drivers & Challenges •Technology Adoption •Competitive Landscape •Strategic Recommendations •Opportunities •Appendix THIRD PARTY LOGISTICS MARKET IN INDIA 2014.PPT
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Demand for services of expert logistics outsourcing providers is rising worldwide Global 3PL Market – Overview (1/2)
SAMPLE • Text
Market Size & Growth – 3PL Revenues
Global 3PL Revenues Break-up (2012) North America
INR bn
Europe X
Asia-Pacific Latin America Other Regions
2011
2012
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Globalization of trade and technological developments has led to an increase in demand for 3PL providers Global 3PL Market – Overview (2/2) Share of Top 10 Global 3PL Players (2013)
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DHL Supply Chain & Global Forwarding
CEVA Logistics
Kuehne + Nagel
DSV
DB Schenker Logistics
Sinotrans
Nippon Express
Panalpina
C.H. Robinson Worldwide
SDV (Bolloré Group)
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Third party logistics is fast gaining popularity in the Indian logistics market Indian Third Party Logistics – Market Overview (1/2) • Text
SAMPLE Market Size & Growth – Third Party Logistics INR bn
x
2013
2014e
2015e
2016e
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2018e 6
Outsourced Logistics Services Outsourced Logistics Services
Share of Logistics Expenditure in Global Outsourcing (2013)
Outsourcing Expenditure Others
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Simultaneous cost reduction coupled with high productivity by electronics manufacturers will drive the 3PL market Growth in Consumer Electronics and Durables Industry
Impact
• Text
SAMPLE India’s Consumer Electronics and Durables Market INR bn Y
2011
2015e
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Growing dependence of automobiles and auto components sector on 3PL services to facilitate market growth Growth in Auto & Auto Components Sector
Impact
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SAMPLE Growth in Automobile Production in India
Growth in Revenue – Auto Component Sector
INR bn
No. of Vehicles Y
Z
0 2012-13
2013-14
2009-10
2010-11
2011-12
2012-13
Note: Auto components includes Engine Parts, Drive Transmission & Steering Parts, Body & Chassis, Suspension & Braking Parts Equipments, Electrical Parts, Others THIRD PARTY LOGISTICS MARKET IN INDIA 2014.PPT
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3PL providers need to customize their services and charge competitive rates to benefit from India’s retail boom Growth in Retail Sector
Impact
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SAMPLE Organized Retail Market Space
Growth of Malls in India Number of malls
INR tn
Increasing retail space across the country will x augment growth of the 3PL market
X
No.
mn sq ft Y
0 2010
2020e
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2012-13 10
Porter’s Five Forces Analysis Threat of New Entrants
Impact Low
• Text
Impact High
Bargaining Power of Suppliers • Text
Impact Medium
Impact Medium
Bargaining Power of Buyers
Competitive Rivalry
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Impact Low
Threat of Substitutes • Text
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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
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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
Key Financial Performance Indicators Indicators Total Enterprise Value (INR mn) EPS (INR) PE Ratio (Abs)
2013
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
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)
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 Improved
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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
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Public: Domestic Company – ABC (4/5) Business Highlights (2/2) Description
News
Exports
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Retailing
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Marketing
• Text
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Public: Domestic Company – ABC – SWOT Analysis (5/5)
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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
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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
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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
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Private: Domestic Company – ABC (4/5) Business Highlights Description
News
Overview
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Packing Facility
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Distribution Network
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Exports
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Private: Domestic Company – ABC – SWOT Analysis (5/5)
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Strategic Recommendations (1/2)
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