Allcargo eBook

CORPORATE DOSSIER

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Corporate Overview 1

o Business Understanding Overview

Business verticals

Presence worldwide mapped

Infrastructural Strength

Number of employees

Overall sales and revenue figures etc.

Milestones of the company 3

Business Unit Specific Pages 6

o Name of the Business

o Business portfolio

o Contribution to sales

o No of employees in the unit

o Clients

o Future plans

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CORPORATE OVERVIEW

Allcargo Global Logistics Ltd. is Indias first multinational company providing integrated logistics

services and the second largest LCL consolidator globally.

Allcargo is one of Indias largest publicly owned logistics company and is listed on the Bombay

Stock Exchange and the National Stock Exchange of India

Global Footprints: Allcargo has global presence with operations spread over 59 countries

covering more than 5000 port pairs

Business Verticals: The company offers specialized logistics services across

o Multimodal Transport Operations

Global LCL (Less Than Container Load) Consolidation Services / NVOCC (Non Vessel

Owning Common Carrier) and FCL (Full Container Load) cargo

o Container Freight Station Operations

Container Freight Stations

Inland Container Depots

3PL (Third Party Logistics)

o Project and Engineering Solutions

Project Logistics

Engineering Solutions

Leadership: Promoted by Mr. Shashi Kiran Shetty and managed by experienced industry

professionals.

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Meridian Total, 108

Allcargo - CFS, 1288

Allcargo - Corporate, 78

Allcargo - ECU, Mumbai, 18

Allcargo - Equipment, 1632

Allcargo - ICD, 1

Allcargo - NVOCC, 375

Allcargo - Projects, 101

Allcargo - Shipping Services, 7

Allcargo - Warehouse, 115 HCL Total, 383

Employee Strength:

Turnover & Growth Figures: The consolidated CY 2009 turnover of the company was

Rs. ~ 2061 with a consolidated net profit Rs ~ 141 crores. Aspirations are for the company to

cross billion dollar turnover by 2014. The company achieved an EBITDA CAGR of 31% for three

year period CY06-CY09.

Investors: The Company has demonstrated superior performance, significant growth prospects

in the past years, thereby attracting quality investors like - The Blackstone Group and New

Vernon Capital, two of the worlds leading private equity firms which have holdings of 14.99%

and 6.42% respectively in Allcargo.

Overall sales and revenue figures have shown an increasing trend.

Rs.Crore 4 QE-Dec-10 4 QE-Dec-09 Y-o-Y Change (%) CY 2010 CY 2009 Y-o-Y Change (%) NetSales 704 559 26% 2,633 2,061 28% EBIT 53 22 135% 202 138 46% PBT 59 23 157% 228 167 37% PAT 42 18 134% 171 130 32%

Consolidated Financial Performance

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MILESTONES OF THE COMPANY

2010: Business expansion

Acquisition of Hong Kong based entities: Allcargo acquired business rights and controlling

stake in two Hong Kong based companies engaged in NVOCC business in China and other

parts of eastern regions. The acquisition would strengthen the company's profitability stream

(EBITDA) by adding approximately USD 3.53 million p.a.

Network Expansion: Through local acquisitions achieved controlling stakes in UK, Qingdao

(PRC), Sri Lanka, and Indonesia operations. The Company also completed minority interests

acquisition in Hong Kong and Argentina. The U.K. acquisition strengthened our ECU Line

network by servicing tradlanes of UK and USA and UK and Rest of Europe.

Capacity Expansion: Augmented capacity at Chennai and Mundra CFSs to 120,000 TEU p.a.

and 77,000 TEU p.a. respectively.

Ship Owning: The company has acquired two vessels of the capacity of approximately 6,500

dead weight ton each. This will help the Company to save ship chartering charges on project

cargo movements and capitalize on coastal cargo movement business.

Fund Raising: In April, 2010, the Company successfully raised USD 23.54 million (~Rs. 104.65

crore) through QIP (Qualified Institutional Placement) at Rs.184.80 per share. Several financial

institutions participated.

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MILESTONES ...

Year 2010 has been a year of awards and recognition for Allcargo. Following is a list of select

recognition for Allcargo Global

Allcargo has been ranked at 2nd position in Logistics segment and at 290th position overall in

the FORTUNE 500 companies in India by Fortune India.

The Southern Region of Container Corporation of India (CONCOR) honoured as the Best LCL

Consolidator Award for the year 2009- 10 in Chennai.

Allcargo has been ranked at No. 251 in the ET 500-2010 list by The Economic Times.

Additionally, the company has been identified as one of the top 10 companies which has a

potential for growth and value addition based on consistent performance in its section SHOW

STOPPERS-Spot the Winners.

Logistics Company of the Year and the Freight Forwarder of the Year (Indian) by the All-

Maritime and Logistics Awards (MALA) 2010 in Mumbai.

Chairman & Managing Director was awarded the Face of the Year by Express Logistics and

Supply Chain (ELSC) organized by the Economic Times & Future group in Mumbai.

Chairman & Managing Director was awarded "Entrepreneur of the Year Services Category" by

Ernst &Young in New Delhi.

Ms. Shantha Martin, CEO, NVOCC, Indian Subcontinent and Middle East, has been adjudged

as the 1st runner in the category Leading Woman CEO by iGroup in Delhi during 9th-10th

December, 2010.

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MILESTONES ...

2009

New Business Vertical: Company started 3PL (3rd Party Logistics) operations with two

warehouses one at Bhiwandi (Mumbai) and the other at Verna (Goa). Company has invested

in the state-of-the-art infrastructure, equipment and software platforms to ensure accuracy,

efficiency and speed. Mumbai and Goa have 45,000 sq. ft. and 55,000 sq. ft. space

respectively.

Investment: In October, 2009, Blackstone Group increased its stake by converting its holdings of

preferential warrants and Fully and Compulsorily Convertible Debentures (FCCDs) into shares at

the rate of Rs.934. As of now there are no outstanding warrants or FCCDs.

First ICD Depot: On May 30, 2009, the company started its first inland container depot (ICD) at

Pithampur (near Indore) through a JV company, viz., South Asia Terminals Pvt. Ltd. in which

Allcargo Global Logistics Ltd. holds 51% and balance by Hind Terminal.

2008

JV: Allcargo, with 51% stake, entered into a joint venture agreement with Container Corporation

of India Limited (CONCOR) holding 49%, for setting up of Inland Container Depot (ICD) at

Dadri, Greater Noida in Uttar Pradesh for catering the container traffic of North India.

Investment: Blackstone Group invested Rs. 2,424 Million as a private equity investor through

shares, warrants and FCCD (Fully and Compulsorily Convertible Debentures).

Merger: Allcargo acquired and merged Transindia Freight Services Pvt. Ltd (Equipment Hiring

business).

2007

CFS Expansion: In May, Allcargo commissioned CFSs at Chennai and Mundra. Each of these

CFSs had capacity of handling 50,000 TEUs per annum in the first phase.

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Business Verticals

Multimodal Transport Operations

Leadership: Allcargo pioneered the NVOCC business in India and over the years has built a

strong network of customers, offices, agents and partners to ensure seamless movement of

cargo.

Scalability: Allcargo today is the second largest LCL services provider in the world and enjoys

scale both in terms of reach and in terms of volume

o LCL Consolidation is an asset light division generating high returns

Business Portfolio: Allcargo receives LCL cargos from freight forwarders across its network and

reserves FCL space on various shipping lines. Cargo is consolidated according to destination

and stored in bonded warehouses to be shipped to final location or to hub ports where it is

transshipped to final destination.

USPs:

o Global networks give Allcargo access to most of the trade lanes and operate direct lines to

multiple destinations. This eliminates transshipment costs, reduces transit times, helps the

company exercise better operational control and purge multiple handling of cargo.

o Large volumes help Allcargo to enjoy preferential freight rates with shipping lines and lead

to operating leverage

o Having offices at both origination and destination enables Allcargo to exercise better

operational control, thereby ensuring one culture and one mandate, leading to lower cost

and higher margin

Infrastructure Strength: The Company has set up a bespoke ERP system that has built-in CRM

capabilities that facilitates real time tracking of shipment for customers besides catering to

operational and financial requirements of the company.

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Business Verticals...

Sales Figures & Performance: As of September 2010 the LCL & FCL businesses recorded net

sales of Rs. 603 crores.

o MTO volume has increased both in import and export segment, aggregating to 15% y-o-y

for the quarter.

o Overall MTO segment performance has improved in the third quarter and YTD period

over the last year

Acquisitions: Allcargo recently acquired two Hong Kong based firms engaged in the NVOCC

business for Rs. 100 crore and would further scout for organic and inorganic growth

opportunities in the LCL/FCL segment in geographies or markets where the company does not

have significant presence.

Growth and Expansion Plans for the segment:

o Tactical acquisitions in regions where Allcargo is present but does not have significant

presence

o Leveraging potential opportunity for creating more profitable trade lanes through network

expansion

Volume in CBM 4 QE-Dec-10 4 QE-Dec-09 Y-o-Y Change (%) CY 2010 CY 2009 Y-o-Y Change (%) Export - CBM 7 49,775 6 64,600 13% 3 ,024,818 1 ,954,464 55%Import - CBM 8 02,776 7 17,436 12% 3 ,151,569 2 ,065,879 53%Total 1 ,552,551 1 ,382,036 12% 6 ,176,387 4 ,020,343 54%

MTO Segment Business Volume Performance (LCL + FCL)

Rs. Crore 4 QE-Dec-10 4 QE-Dec-09 Y-o-Y Change (%) CY 2010 CY 2009 Y-o-Y Change (%) Net Sales 568 430 32% 2,079 1,696 23%EBITDA 35 11 226% 115 89 29%EBIT 32 9 237% 103 72 42%

MTO Segment - Consolidated Financial Performance

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Container Freight Station Operations

Leadership: Allcargo launched the CFS/ICD division in Mumbai in 2003 and since then has

become one of the largest operators of CFS in the country.

Business Portfolio:

o CFS: The Company has CFSs at JNPT, Chennai and Mundra with total CFS capacity of

341,000 TEU p.a.

JNPT capacity is 144,000 TEU / annum

Chennai capacity is 120,000 TEU / annum

Mundra capacity is 77,000 TEU / annum.

JNPT and Chennai are the key ports in India handling bulk of the container traffic.

The two ports together handled ~76%(1) of the total container traffic in India in

2008

By volume: Allcargo is one of top two CFS operators at JNPT and Chennai (barring

captive CFSs) and among top five at Mundra

Market share by volume at JNPT, Chennai and Mundra is in the range of 8-9%,

9-10% and 6-7% respectively

o ICD: The Companys ICD at Pithampur has a capacity of 36,000 TEU p.a.

Some of the services offered by the division are:

o Transportation of loaded and empty containers

o Stuffing and de-stuffing of consignments

o Loading and unloading of cargo containers

o Delivery of loaded containers

o Warehousing of import and export LCL cargo

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ICD Partnerships:

o Allcargo has entered into a 51:49 JV (with Allcargo holding 51%) with CONCOR to establish a

ICD at Dadri. Land for the ICD has been leased by CONCOR and is connected by rail siding.

The facility is expected to come on line by April, 2011.

Current Performance:

o Capacity utilization at JNPT was above 95%, Chennai is about 60% & Mundra 35% during

Q3 2010

o Dwell time is about 11 days at JNPT and Chennai CFSs

o Revenue / TEU realization has gone up by approximately 5% as compared to year-ago

quarter

o CFS segment has maintained strong growth during quarter and YTD period over last year

Growth and expansion plans for the segment:

CFS:

Allcargo has invested close to Rs. 20 crore to expand its capacity at Mundra and Chennai

ports and plans to allocate Rs. 100 crore for expansion at JNPT and other ports in the

country during CY2011.

Addition of capacity at JNPT and other locations through both organic and inorganic

growth.

ICD:

The company also plans to establish a pan-India presence for its ICD division with plans

to expand in Hyderabad, Nagpur and Bangalore for which land has already been

acquired by the company. The ICD at Dadri is expected to be completed by April.

Rs. Crore 4 QE-Dec-10 4 QE-Dec-09 Y-o-Y Change (%) CY 2010 CY 2009 Y-o-Y Change (%) Net Sales 568 430 32% 2,079 1,696 23%EBITDA 35 11 226% 115 89 29%EBIT 32 9 237% 103 72 42%

MTO Segment - Consolidated Financial Performance

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Warehousing

Allcargo has started developing state-of-the-art warehouses to cater to the needs of its

customers

Allcargo has land banks to build warehouses in Nagpur, Hosur near Bangalore and Hyderabad

that will be ready by end of 2011.

Allcargo forayed into third party logistics (3PL) space last year.

Business Portfolio:

o The company currently operates two warehouses a 45,000 sq.ft facility in Bhiwandi, Mumbai

and another 57,000 sq.ft facility in Verna, Goa

o Combined capacity is 102,000 sq.ft. and a capacity utilization of above 90%

o The company is currently developing its land banks in Goa, Hosur and Nagpur and plans

to invest Rs. 40 crore in CY2011 for the same.

Growth and Expansion Plans:

o Strategically expanding into warehouses to ultimately provide integrated 3PL services

through organic and inorganic growth models.

o Existing land bank in place to build warehouses.

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Project and Engineering Solutions

Business Portfolio:

o The segment provides integrated project, engineering and equipment solutions.

o Allcargo has recently bought two vessels to reduce ship chartering cost and to leverage on

coastal cargo movement.

Services offered by the company are:

Turnkey Project Solutions

Point to Point Movement

Logistics Feasibility Study, Route Survey for the cargo movement

Jetty Design and Engineering/Civil work repair and restructuring

Ocean Freight/Ship Chartering/Barging Offshore and Inland Waterways

Inland Transportation/Vehicle Fabrication

Site handling and Erection

Indirect Tax Consultancy/Insurance

Infrastructure Strength:

o As of today Allcargo operates a fleet of more than 500 specialized vehicles and equipment

making it one of the top two leading equipment and transport solutions companies in the

country.

450 trailers and 56 hydraulic axles

20 heavy duty prime movers

75 cranes with lifting capacity from 50 to 750 MT

30 reach stackers

60 forklifts

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o All terrain cranes, crawler cranes, telescopic cranes and lattice boom cranes from well

known manufacturers such as Manitowoc, Kobelco, Liebherr, Demag

o Wwns Forklifts, Stackers and Trailers which supports Allcargos CFS/ICD and MTO divisions

o Occupational Health Safety Assessment Series (OHSAS) certified and high focus on safety

standards

Clientele: Allcargo has successfully executed multiple projects for clients such as BHEL, British

Gas, Jindal Group Companies, Delhi Metro Corporation, Vedanta Group companies,

Bombardier etc.

Current Performance:

o Segment has maintained strong growth during quarter and YTD period over last year

o Contributed Rs. 88 crore in quarterly net sales as of Sept 2010

o Capital employed has increased on account of equipment acquisition during the year

o The segment has an order book of more than ~ Rs.50 Crore

Growth and Expansion Plans:

o Allcargo intends to invest in specialized barges and tugs to augment engineering capability

and increase operating margins

o Focus on high growth sectors & through investment in highquality assets

o Unique offering of integrated projects and Equipment Solutions.

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HEAD OFFICE5th Floor, Diamond SquareCST Road, KalinaSantacruz (East), Mumbai - 400 098. Maharashtra, India.

Tel. : (+91-22) 6679 8100Fax : (+91-22) 6679 8195

Email : [email protected]

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