B.COM Unit – 4 ( CORPORATE SOCIAL RESPONSIBILITY ( CSR ).pptx
Logistics report sample
1.
2. Content
Executive Summary
Sector Overview
Road
Rail
Air Cargo
Shipping
EXIM Logistics
Warehousing
3PL
IT in Supply Chain and Logistics
Company Profiles – Listed and Un-listed
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3. Executive Summary
A decade of opportunities lies ahead…
Logistics and supply chain is a close to US$ XXXbn business (US$ XXXbn in 2010-11),
amounting to XXX% of India’s nominal GDP. The references stating the sector is XXX% of India’s
GDP are incorrect.
The sector will grow in line with the GDP to reach a size of around US$ XXXbn by 2014-15, and
US$ XXXbn by 2019-20.
The sector will need, directly or indirectly, investment of around US$ XXXbn per annum in the
2011-20 period. We believe this indicates scope of greater PE investment in this sector.
Amongst modes of transport, road is the biggest segment, with revenues of around US$ 56bn
in 2010-11. While commodity trucking is not very attractive, profitable niches exist – like express,
containerised cargo, and less than truck load.
Private sector has struggled in rail, given difficult operating environment. However, given the
strong growth potential of container transport, the sector is attractive over the long term.
Air cargo and shipping maybe less attractive given the inability of Indian companies to compete
with MNC majors here.
Amongst business sectors, EXIM logistics, with a size of US$ XXXbn, and XXX% growth, the
segment offers is the most attractive segment in logistics.
Agri logistics has fast emerged as an area with attractive business economics. With the
government intent of increasing private sector participation in agri value chain, this segment will
attract new players.
We find Indian manufacturing is ready for outsourcing logistics requirements, and demand for
contract/3PL kind of logistics services should increase strongly. Leading logistics services are
keenly targeting such business.
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This information is confidential and was prepared by Four-S solely for the use of our client; it is not to be relied on by any 3rd party without Four-S’s prior written consent.
4. Sector Overview
Sector Size
Exhibit 1: Size of Indian logistics and supply chain sector
A bottom up calculation of various
segments within logistics indicates
that the sector had a size of around
US$ XXXbn for 2010-11. Road
transport at US$ XXX bn forms the
biggest individual chunk. EXIM
services is a large segment as well.
Sector Growth Potential
The sector will grow at a rate
around XXX% over the next few
years. Applying XXX% growth in
2015, and XXX% for the next 5
years, we get a size of US$ XXXbn
for 2015 and US$ XXXbn for 2020.
2010-11 2014-15P 2019-20P
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5. Sector Overview
PE Investments in Logistics in 2011
Date Fund Company (%) ($ mn) There were 11 Private Equity investments in
Jan-11 India Equity Company 1 XX XX logistics space in 2011. The disclosed
Partners investment amount was US$ XXX mn, with
Feb-11 Infrastructure India
Plc
Company 2 XX XX
average disclosed deal size of US$ XXX mn.
Mar-11 Infrastructure India Company 3 XX XX The biggest disclosed deal size was US$
Holdings Fund LLC XXX mn.
Mar-11 Mayfield India and Company 4 XX XX The logistics funding was XXX% of funding
Nexus Venture
done in services sector and XXX% of total
Partners
Apr-11 Warburg Pincus Company 5 XX XX
funding done in 2011.
Apr-11 Fidelity Growth Company 6 XX XX Five deals happened in growth stage
companies and the rest were equally
Partners
May-11 Mumbai Angels Company 7 XX XX
May-11 India Agro Business Company 8 XX XX
divided between the PIPE, early, and late
Fund (IABF), IFC Stages. Most of the deals happened in the
consortium first half of the year.
Jun-11 IL&FS PE Company 9 XX XX
Jul-11 Rajasthan VC Fund Company 10 XX XX
Jul-11 Standard Company 11 XX XX
Company Buyer Seller Invested Original Retur
Exhibitered PE
since Investmet ns(X)
Source: Four-S Research $mn
Company 1 Infra. India Guggenheim 2007 XX XX
2011 saw three successful exits equally
Company 2 Warburg Pincus IL&FS NA XX XX
divided between strategic sale and through
the open market. Company 3 Warburg Pincus Aureos Capital NA XX XX
Source: Four-S Research 5
This information is confidential and was prepared by Four-S solely for the use of our client; it is not to be relied on by any 3rd party without Four-S’s prior written consent.
6. Road Transport
The dominant form of transportation business in India
In terms of absolute numbers, the Planning
Freight movement by road in India Commission projected that freight
movement by road would reach a size of
about XXX billion ton-kilometres (BTKM) by
2011–12.
This is assuming an average GDP growth
rate of 8% between 2007–08 and 2011–12.
The Planning Commission has used a
multiplier of XX between the GDP and
2000-01 2001-02 2002-03 2003-04 2004-05 2011-12P freight movement growth rates.
Unit: Billion ton kilometres (BTKM)
Source: Planning Commission, Four-S Research
Size of Road Transport Sector
Express General
We expect road sector revenues to cross
$XXXbn by 2020. We have projected the
express segment to grow at XXX%, and the
general cargo to grow at XXX%.
2011-12 2019-20
Unit: $bn, Source: Four-S Research, Industry 6
This information is confidential and was prepared by Four-S solely for the use of our client; it is not to be relied on by any 3rd party without Four-S’s prior written consent.
7. Road Transport
Growth Drivers
The higher growth rate is for express is based on industry feedback, and the fact that the
sectors express caters to, like consumer goods, computers, auto, pharmaceuticals are all high
growth segments of the economy.
Increasing penetration of modern trade, and changing supply chain practices among users is
expected to drive higher growth for express compared to overall transport sector.
In the Box: Case study of Express Transport Operator
Competitive scenario
The organized sector is a miniscule portion of the road transport sector.
None of the large companies operating including XXX, XXX, XXX etc account for even 1% of
sector revenues.
Road transportation is a low entry barrier-business.
There is a vast population of owner-driven trucks in India–drivers who have turned truckers.
Investment Potential
Value added road business has high potential to attract investments
In the Box: Case study of investments in road transport companies
•Revenue Mix
•Growth
•Margins
•Investment Details
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This information is confidential and was prepared by Four-S solely for the use of our client; it is not to be relied on by any 3rd party without Four-S’s prior written consent.
8. Key Companies in the sector
Top 20 Listed Logistics Companies
Key Performance Metrics and Ratios
Company Market Cap Revenue PAT Gross Fixed Total EBITDA PAT Asset ROCE (%) ROE (%)
Assets Assets Margin Margin turnover
(%) (%) (x)
Company 1 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX
Company 2 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX
.... …. …. …. …. …. …. …. …. …. ….
Company 19 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX
Company 20 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX
Units: INR mn, data for latest financial year, Source: Ace Equity Analyser, Four-S Research
Top 10 Global Logistics Companies Key Un-listed Companies in India
Company Home Country Employees Countries
Company 1 Germany XXX XXX About the company
Company 2 USA XXX XXX Leadership
Company 3 USA XXX XXX Business Lines
Company 4 Germany XXX XXX Investment, M&A Activity
Company 5 Switzerland XXX XXX Financials
Company 6 Japan XXX XXX Growth Plans
Company 7 China XXX XXX
Company 8 France XXX XXX
Company 9 USA XXX XXX
Company 10 Netherlands XXX XXX
Source: Four-S Research
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This information is confidential and was prepared by Four-S solely for the use of our client; it is not to be relied on by any 3rd party without Four-S’s prior written consent.
9. Companies Covered
Listed Un-Listes Global
CONCOR Safexpress Deutsche Post DHL
Shipping Corp. of DARCL UPS Supply Chain
India
Allcargo Logistics Future Supply Chain Fedex Corp
Solutions
Great Eastern Radhakrishna DB Shenker
Shipping Foodland Pvt Ltd
Transport Corporation Sohan Lal Commodity Kunhe+Nagel
of India Management Pvt. Ltd
Essar Shipping Flywheel Logistics Nippon Express
Blue Dart Express Total Logistics (India) Geodis
Pvt. Ltd
Great Offshore JICS Logistics CEVA
……and more
Source: Four-S Research
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This information is confidential and was prepared by Four-S solely for the use of our client; it is not to be relied on by any 3rd party without Four-S’s prior written consent.
10. Thanks!
The report presents current industry trends and snapshot of all key segments in Logistics & Supply Chain
Industry along with profiles of interesting listed and unlisted players in the space. The report is useful for
Board members & Senior Management of Logistics companies, PE Fund Managers and other investors. To
book your copy, please write to Devendra Deole at devendra.deole@four-s.com or call +91-22-4215 3659
About Four-S Services
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