Four s fortnightly logistics track 4th september - 17th september 2012
Transcript of Four s fortnightly logistics track 4th september - 17th september 2012
4 S E P ’ 1 2 – 1 7 S E P ’ 1 2
Logistics Track Research4I nd ia For t n ight l y updat e o n L og is t i c s I ndust ry
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In The Spotlight Contents
Agri ministry pushes for ` 50bn scheme for
post-harvest logistics
The Union Ministry of Agriculture has planned to ask
for a ` 50bn budget during the 12th five-year Plan
(2012-17) for a scheme to allow private companies to
collaborate with farmers to produce, harvest, process,
transport and market various agro products. Officials
said the aim was to ensure availability of farm
produce across the country at affordable prices. Titled
the Public-Private Partnership for Integrated
Agricultural Development, or PPP-IAD, it hopes to
create an efficient supply chain for cereals,
perishables and other high-value produce. The plan
aims to cover a million farmers during the Plan.
Funds are to be leveraged through the flagship
Rashtriya Krishi Vikas Yojana.
A company, it is suggested, could propose a project
targeting a minimum of 10,000 farmers, over three to
five years, covering all aspects from production to
marketing. Average investment per farmer is to be `
100,000 and government assistance will be restricted
to half the overall investment in this regard, within a
ceiling of ` 50,000 per farmer. The ministry says it
already has 33 project proposals from private
companies, sent through the Federation of Indian
Chambers of Commerce and Industry. A project will
involve mobilising farmers into producer groups and
registering as a joint stock producer company or a
co-operative or self-help group. In the process, these
companies could coordinate with the Indian Council of
Agricultural Research for improved varieties of
seeds/seedlings and for sorting credit issues with the
National Bank for Agriculture and Rural Development.
The hope is for infusion of technologies using
precision farming techniques, primary processing,
sorting, grading , washing, packaging and value
addition clusters, development of warehouses, cold
chains, etc. The Small Farmers Agri-Business
Consortium will provide professional support services
to such producer firms.
News of the fortnight 1
Investment Activity 3
News Update 4
Global News Update 7
Stock Market Updates 10
Peer Benchmarking
11
About Four-S Services 12
Four-S India
Logistics Report
2011-12
Our logistics
report is now
available for
purchase. A
100 page, hard
bound word
document,
presented by
Central, this is
India’s most
comprehensive
and rigorous
research report
on Logistics.
To buy the report, or to know
more about it, see Page 2.
Logistics Track
Research4India 2
Central Logistics Intelligence presents
“Four-S India Logistics Report 2011-12”.
This is the first comprehensive, rigorous report on the
logistics sector. It brings a new analytical perspective
to the sector research coverage, which is plagued by
poor research. Incorrect notions like: the Indian
logistics sector is 13-14% of GDP; or there is multiplier
of 2x between logistics growth and GDP growth rate –
abound, and are often quoted by leading logistics
companies, industry associations and sector
consultants.
The report presents original data and analysis on several key
aspects of the sector, including size of various segments and
projections, and highlights investment potential. In the report
we have taken a comprehensive look at all the key segments
of logistics and supply chain.
We find EXIM and agri-logistics areas of great promise. The 3PL/contract logistics
space also has strong potential, which will get a push as and when the long awaited
goods and services tax (GST) reforms are implemented. We expect greater activity
from PE funds and MNCs in this decade compared to 2001-10.
The report includes information about the key players in the Indian logistic sector and its
various segments.
“Four-S India Logistics Report 2011-12” is prepared by the research of Four-S Services
(www.four-s.com), which has covered this sector in detail in India for several years now.
REASONS TO BUY
India’s first comprehensive report on the logistics and supply chain business
The report has original numbers and projections, backed by rigorous analysis, which would
compel you to question some of the established facts floating around about the sector.
Takes a detailed look at all key business segments, and highlights growth potential.
Mentions key listed and unlisted companies in the sector.
FOR WHOM
Companies in the supply chain and logistics business in India, logistics MNCs wanting to enter
India, private equity funds, industry associations, policy makers, independent consultants and
industry researchers
HOW TO BUY
Kindly write to Seema Shukla at [email protected] You can also call Ashutosh Sharma at
0124-425 1442, or Devendra Deole at 022-42153659 to book your copy.
Logistics Track
Research4India 3
PE Deals in 2012
Date Investor Target Stake
(%) Amount ($ mn)
Strategy
6-Jan General Atlantic Foursee Infrastructure Equipments Ltd.
NA 20.8 Growth
23-Feb IDFC Private Equity StarAgri Warehousing & Collateral Mgmt
NA 30.0 Growth
23-Feb Global Super Angels Chhotu.in (Santa Claus Couriers) NA NA Angel 28-Mar Ambit Pragma Spear Logistics NA 1.7 Growth 30-Mar VenturEast, Zephyr Peacock e2E Rail NA 6.0 Early 26-Apr New Silk Route VRL Logistics NA 33.4 Late 19-Apr KKR, Goldman Sachs TVS Logistics 20.0 55.0 Growth 29-Jun Vertex Venture Holdings, KPCB,
Sherpalo Ventures Reverse Logistics NA NA Growth
25-Jul Ambit Pragma Mehta Frozen Foods Carriers 74.0 NA Early 19-Aug GTI Capital Brattle Foods NA NA Growth
The space saw 10 deals till date raising a total disclosed amount of $185.1mn.
Mergers & Acquisitions in 2012
Date Investor Target Stake
(%) Amount ($ mn)
Business
1-Feb Oil Field Warehousing & Services Raamns Shipping & Logistics NA NA Logistics Services 20-Apr DHL Express (India) Pvt Ltd DHL Lemuir Logistics Pvt Ltd 24.0 NA Logistics Services 15-May DTDC Eurostar Express NA NA Courier Services 18-Jul SG Holdings Sindhu Cargo Services 40.0 NA* Logistics Services 18-Jul SG Holdings Sunlog Services 40.0 NA* Logistics Services
16-Aug Dempo Group Modest Infrastructure NA 140.0 Ship-building & Repair *SG Holdings have invested a total of $18mn in Sindhu Cargo Services and Sunlog Services which are sister concerns
The space saw 6 deals till date but the transaction details were disclosed for one only.
Dempo Group acquired ship-building & repair company Modest Infrastructure for $
140mn in August 2012.
In 2011, there were 11 PE deals in Logistics space worth $278.1mn. The largest among
came from Warburg Pincus which invested $100mn in Continental Warehousing
Corporation for un-disclosed stake.
In the same year, 8 M&A deals in Logistics space. TVS Logistics acquired 100% stake in
US based MESCO for un-disclosed amount. Amongst the disclosed, the largest was 100%
stake by Royal Vopak in CRL Terminals for $61.8mn
Investment Activity
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DHL to trim Blue Dart stake from 81% to
comply with Sebi norms
Deutsche Post DHL plans to bring down its
stake in Blue Dart Express, held through its
subsidiary DHL Express Singapore, to comply
with minimum public shareholding
requirements. Deutsche Post DHL currently
holds 81 percent in the Mumbai-based express
logistic firm. Future collaboration between Blue
Dart Express and Deutsche Post DHL will not be
affected by this transaction and Deutsche Post
DHL remains fully committed to the domestic
market, said a statement from the German
company. The Euro 53bn Deutsche Post DHL,
which is a world leader in postal and logistics
group, said the move is enable the domestic
company to comply with the new minimum
public shareholding norms, which demands
listed companies to have at least 25% of their
stake with the public by next June.
Sical Logistics to set up JV for coal
washery in Talcher
Chennai based Sical Logistics Ltd, in which
Tanglin Retail Reality Developments has a stake
of 53.12%, is planning to set up a joint venture
to set up a coal washery in Talcher, Orissa, to
execute an integrated contract for the
movement of coal. The company is also
expecting permission from relevant authorities
to use its iron ore terminal in Ennore to handle
alternate cargoes since the terminal could not
be commercialised for iron ore transportation.
The company has sought shareholders’ approval
for giving corporate guarantees or providing
securities or loans or advances, and for making
investments not exceeding ` 4.5bn in its
subsidiary or joint venture companies.
According to an announcement with the BSE,
the investment shall not exceed ` 4.5bn, and
would be used in Sical Iron Ore Terminals Ltd,
which has an iron ore terminal in Ennore Port.
The investment would also be for setting up of
a coal washery at Talcher through a joint
venture.
Ship repair facility for CSL
Cochin Shipyard has been given the go-ahead
to set up a ` 7.5bn ship repair and building
facility at Cochin Port. Union shipping minister
G.K. Vasan announced the bid award to Cochin
Shipyard Ltd, which followed Cochin Port’s
floating a tender for building the facility a few
months ago. The project would come up on the
old Rajiv Gandhi Terminal premises. The new
project would benefit the shipyard, which was
on an expansion mode.
RINL sets in motion freight car axle unit in
Jalpaiguri
Rashtriya Ispat Nigam Ltd (RINL) has set in
motion preparatory work for its proposed `
2.8bn railway freight car axle project in West
Bengal. The processes were initiated for a
feasibility study, flotation tenders for the plant
and machinery and the off-take agreement with
the Railways. The RINL unit is to be located on
a 46-acre plot of land at New Jalpaiguri in the
under-industrialised northern part of the State.
A 30-year renewable land lease agreement with
the Railways has already been executed. The
proposed project would have the capacity to
produce 50,000 pieces of axles a year. Each
axle will have the load bearing capacity of
between 22.9 tonnes and 25 tonnes and will be
210 mm in diameter. The new plant will have
the facility of forging and heat treatment. At
present, the Indian Railways depends on
substantial imports of axles. Though the off-
take deal is yet to be signed, it has been agreed
that the Railways would purchase around 70
per cent of the production. The remaining
output would be meant for local and overseas
markets.
CIL plans ` 145bn on rail, to spend ` 245bn
on capex
Battling low production, the world's largest coal
miner CIL today said it has earmarked ` 245bn
capital expenditure over the next five years
mainly to boost capacity and is also looking at
News Update
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spending another ` 145bn to augment rail
infrastructure. The PSU planned to undertake a
conditional investment of ` 145bn on
augmenting rail infrastructure. According to the
CIL Chairman, S Narsing Rao, the company
intends to spend ` 75bn on rail infrastructure
provided the Railways complete the project on
time. It also intends to spend another ` 70bn
on rail projects for faster transportation of coal
if all goes well.
LifeCell partners with Sequel Logistics
LifeCell International, one of the leading stem
cell storage companies in India has announced
its partnership with Sequel Logistics, a company
that specialises in critical logistics, to offer
'Personalized Shipment Service' of the umbilical
cord blood and tissue samples. The initiative is
critical in healthcare logistics whereby stem
cells of the new born will be shipped through
Sequel’s partner airlines via the next available
flight to LifeCell’s processing and storage facility
in Chennai. It is important for stem cell
preservation since the sample will reach the
laboratory for testing and processing within 24
hours from metro cities and 36 hours from non-
metro cities. StemCell estimates to generate
revenues of more than Rs 1bn in the current
financial year. The current size of stem cell
banking industry is around 40,000 enrolments
per year and the industry has been growing at
30% in the recent past. Currently the industry
is serviced with dedicated cargo handlers who
operate on an overnight hub-and-spoke model.
Global shipping companies hike shipment
rates
International container carriers, ignoring a weak
global economy, have started actively raising
rates for shipments from India and other
regions since the past few months in an effort
to pull the global shipping industry out of
choppy waters. While the move to increase
rates across various routes may breathe life
into the shipping industry, it has affected the
competitiveness of the Indian export sector
according to the exporters. Hapag-Lloyd will
increase rates by $200 per 20-foot container
unit and $400 per 40-foot container unit on all
shipments from India to ports in North Europe
and the Mediterranean. Hapag Lloyd raised
rates on the Japan-Australia and Japan-east
Asia routes, while MSC increased their Europe-
Asia route and Indian subcontinent-Northern
Europe rates. This week, data compiled by the
commerce ministry had said exports slid by
nearly 15% in July, the steepest dive in three
years.
ABC India to consider sale of stake in
Nissin ABC Logistics Pvt. Ltd.
According to announcements, the meeting of
the Board of Directors of ABC India Ltd was
schedules last Saturday to approve sale of 19%
shareholding out of present 24% shareholding
in Nissin ABC Logistics Private Limited.
Industry hails Cabotage exemption to
Vallarpadam terminal
The much awaited announcement of relaxation
in the Cabotage rules for the Vallarpadam
terminal is likely to herald a new era in the
container transhipment business from the
region. The fledgling International Container
Transhipment Terminal at Vallarpadam can look
forward to doing more business in
transhipment, now being carried out mainly
through Colombo and Salalah. Colombo Port
handles a transhipment throughput of 2m TEUs
from India. However, the ICTT is currently
doing only a meagre transhipment business of
20,000 TEUs a year. This is expected to go up
significantly with the relaxation of the law.
Indian Railways to get more than ` 4 bn
from RLDA
Rail Land Development Authority (RLDA), a
statutory authority established by Ministry of
Railways for generating non-tariff revenue from
railway land, announced that it is soon going to
restart offering sites for development of Multi
Functional Complexes and railway land for
commercial development. RLDA has now
targeted for earning more than ` 4bn during
current financial year. RLDA has prepared an
action plan for fast tracking the development of
projects and realization of expected revenues.
RLDA has lined up 60 more new MFC sites and
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8 other standalone sites for which bidding
process is being initiated in phases within a
fortnight. Many real estate consultants like
Knight Frank, IL&FS, PWC, E&Y and JLLM are
advising RLDA in Planning and Marketing the
MFC/Commercial sites.
Railways cut spending on assets
With less money in the kitty, Indian Railways
has cut its spending on asset replacement by
about 15%. The cut is a fallout of the rollback
of passenger fares rises. Investment in the
replacement of aged assets financed from the
depreciation reserve fund (DRF) has been cut
by 18% to ` 75.8bn. Similarly, the railways
have slashed the budget for the development
fund (DF) by 20% to ` 29.9bn and the capital
fund (CF) by 14% to ` 42.7bn. The railways had
targeted to almost double spending to `
199.9bn under four funds, including the Railway
Safety Fund, this year from ` 102bn in 2011-
12. But, with the cut in investment, the
spending is now expected to be around 60%
more than the revised estimate for 2011-12.
The railways operate various funds to meet the
requirement of asset acquisition, construction,
replacement and renewal as well as pension
payments to employees. These funds are fully
or partially financed by railway revenue,
budgetary support by the central government
or market borrowings, if needed.
Titagarh denies joint venture with
FreightCar is over
Kolkata-based wagon manufacturer Titagarh
Wagons has denied that its joint venture with
FreightCar America has been scrapped. Earlier a
newspaper had reported that, FreightCar
America Inc has called off its joint venture with
Titagarh Wagons due to latter’s failure to get
approval from Indian Railways for a prototype
of an aluminium wagon, which the US-based
wagon maker specialises in. But, according to
the official at Titagarh, The joint venture is still
intact, the report that has been published is
false and very soon both the companies will do
a joint press conference in this regard. The joint
venture pact was signed in 2008 between both
the companies and it was formed to develop
high-axle load and low tare-weight aluminium
wagons in which FreightCar holds a majority
stake of 51%, with the remaining 49% owned
by Titagarh Wagons.
Kerala expects boom in logistics sector
With the Union Cabinet’s approval to relax the
Cabotage law facilitating the transshipment of
containers to and from the International
Container Transshipment Terminal (ICTT),
Vallarpadam, the logistics sector in the state is
all set for a giant leap. It is expected that
around 50,000 direct and 100,000 indirect
employment opportunities will be generated
within five years. A massive investment of
about ` 150bn will also be pumped into the
sector. At present, the rail traffic in the state is
almost 25% above the capacity. To tap the
potential of the law relaxation, better road, rail
and water connectivity are crucial. The ICTT will
realise its full potential of one million twenty-
foot equivalent unit (TEU) within a year. Owing
to it, newer opportunities will emerge not only
at the Vallarpadam terminal but at Vizhinjam,
Azheekkal, Beypore and 14 other minor ports.
Areas such as supply chain, logistics, material
handling, storage, information technology,
warehousing and inventory management will
emerge as possible business areas in the state.
Kerala plans cargo movement through
coastal shipping
The Kerala government plans to decongest the
state roads, diverting at least 20% of the cargo
traffic through coastal shipping by 2015 and
40% by 2020. The state is planning to do this
through a three-pronged strategy comprising
building of infrastructure and institutions and
providing incentives. The State will create a `
3bn fund to finance the incentive. To oversee
the development of the maritime sector, Kerala
will also set up a State Maritime Board on the
lines that exist in other maritime States such as
Gujarat and Maharashtra. The coastal traffic
potential through non-major ports of the state
is estimated to be 4.64mn tonnes during 2012-
14 and 7mn tonnes by 2019-20. Among the
infrastructure development initiatives in the
port sector, Vizhinjam International Container
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Trans-shipment Terminal is the prime project of
the state. This project is proposed to follow
landlord model, where dredging, reclamation,
construction of breakwater, quay wall and
external infrastructure like power, water, road
and rail connectivity are done by the Vizhinjam
International Seaport Ltd. The building of
terminal superstructure and its operation for 30
years is proposed to be done by the private
operator on PPP (public-private-partnership)
model. Kollam, Alappuzha, Kodungallore,
Ponnani, Beypore and Azheekkal ports are also
earmarked for development.
Ministry moots infrastructure status for
coastal shipping
In order to promote coastal shipping, the
shipping ministry has moved a note for the
Cabinet Committee on Infrastructure (CCI) to
secure infrastructure status for the sector.
The status would help the sector make good
use of various benefits such as easier credit at
cheaper rates and faster regulatory clearances.
The move would also help in promoting trade
along India's coastline of 5,560km, having
access to the sea on three sides with 11 major
and 168 minor and intermediate ports. It would
also increase private investment in the sector
and encourage infra-focussed funds to pump in
money. The Cabinet Committee on
Infrastructure has outlined six characteristics
for a sector to qualify for infra status. These
include sector involving natural monopoly, high-
sunk costs and asset specificity, non-tradability
of output, non-rivalness in consumption,
possibility of price exclusion, and presence of
externalities. Besides, three other factors are
kept in mind while granting infra status. These
are the sector's importance to the scheme of
economic development, its ability to contribute
to human capital and the specific circumstances
under which it has developed in India.
Shipping ministry alters plan on SPV
The shipping ministry has altered its plan to set
up a special purpose vehicle (SPV) for investing
in overseas port assets to include local ports as
well. To reflect this change, the ministry has
rechristened the SPV to Indian Ports Ltd from
the earlier Indian Ports Global. India plans to
spend as much as `3tn on its ports in the
decade ending 2020 to triple its cargo-handling
capacity to 3.2bn tonnes, according to the
maritime agenda for the decade announced by
the shipping ministry in January 2011. Indian
Ports Ltd is structured on the lines of DP World,
which is majority owned by the Dubai
government and PSA International Pte Ltd, a
wholly owned unit of Temasek Holdings (Pvt.)
Ltd, the sovereign wealth fund of Singapore.
The proposed SPV will have 50% equity
participation from ports controlled by the Union
government with financial institutions holding
the balance.
C.H. Robinson to acquire Apreo Logistics
C.H. Robinson Worldwide has agreed to acquire
Apreo Logistics S.A. (“Apreo”), a leading freight
forwarder based in Warsaw, Poland. Founded in
June of 2007, Apreo provides truckload services
including dry van and temperature controlled
and liquid and dry bulk capabilities. To
complement their truckload offering, the
company also offers additional warehouse, air
and ocean services. Apreo has shown significant
growth over the past several years, with
current gross revenues over $100mn while
servicing more than 2,000 customers. The
company has over 300 employees in 21 offices
in Poland and one office in Germany. This
acquisition will expand C.H. Robinson's
presence in Europe. Founded in 1905, C.H.
Robinson Worldwide, Inc., is a global provider
of multimodal logistics services, fresh produce
sourcing, and information services to 37,000
customers through a network of more than 230
offices and over 8,700 employees around the
world. The company works with 53,000
transportation providers worldwide. C.H.
Robinson is a Fortune 500 company and had
annual revenues of $10.3bn in 2011.
Donnelley acquires XPO to expand
operations
Global News Update
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R.R. Donnelley & Sons Co (RRD) has acquired
privately-held outbound mailing services
provider Express Postal Options International.
The financial terms of the deal were not
announced. The acquisition of Express Postal
Options International or XPO is expected to
strengthen Donnelley's logistics business
segment and expand its operations in more
than 150 countries. Donnelley has been
experiencing strong growth in the logistics
segment. In the last concluded quarter, this
segment reported an 11.3% jump in revenue.
Strong growth in the logistics space along with
volume increase in certain office products
restricted the decline in revenues to 3.6% on a
year-over-year basis. Donnelley is focusing on
acquisitions to expand and enhance its offering
to its current customers, as well as to expand
the customer base. The company's continued
focus on acquisitions will also spur its already
dominant market position and drive long-term
growth.
China's Alibaba to lift investment in
logistics network
Chinese E-commerce giant, Alibaba Group, is
looking to put $100mn ($AU96.7mn) towards
parcel-delivery and warehouse operations.
According to the reports, the investment will
add to the 10bn yuan ($AU1.53bn) already
committed to in 2011 for improving the
company's logistics. Alibaba's group chief
strategy officer Zeng Meng said the company
was under pressure from underdeveloped
logistics infrastructure throughout China. Mr
Zeng acknowledged a growing Chinese appetite
for online shopping was fueling activity on
Alibaba's popular shopping websites Taobao
and Tmall.
China grants FedEx, UPS operating
licenses for some Chinese cities
Package delivery companies FedEx Corp and
United Parcel Service Inc have received
approval to provide express-package services in
some cities of China on their own, according to
the country's State Postal Bureau (SPB). The
approval gives FedEx access to eight cities
while UPS was given access to five cities. FedEx
already provides services in Chinese cities
through joint ventures with local companies
while UPS doesn't have partnerships with
Chinese companies. FedEx can now operate in
the cities of Shanghai, Guangzhou, Shenzhen,
Hangzhou, Tianjin, Dalian, Zhengzhou and
Chengdu. UPS was given a license for the cities
of Shanghai, Guangzhou, Shenzhen, Tianjin and
Xi'an. The authorization comes four months
after Chinese regulators approved a $1.6bn
initial public offering by state-owned China
Postal Express & Logistics, one of the largest
courier companies in the Chinese domestic
market.
GLP, Haier Group to develop logistics
network in China
Singapore-listed Global Logistic Properties
(GLP) has said it is partnering Chinese home
appliance maker Haier Group to develop a
logistics network in China. As per the news
release, the move is for the distribution of
Haier's household appliances across China.
Under the agreement, Haier will manage the
industrial facilities resources of the group
through its arm Qingdao Haier Industrial
Development Co. GLP and Haier are expected to
collaborate and integrate resources like capital
land sourcing and management expertise to
meet Haier's logistics requirements in China.
Survey shows Turkey will be next big
logistics location
According to the survey by Jones Lang LaSalle -
a multinational financial and professional
services company specialising in real estate,
Turkey tops European supply chain managers
list as emerging logistics market over the next
five-years. Poland and Romania follow in
second and third spots. It says, Turkey offers
all attributes required to become an emerging
logistics market. Its geographic location
bridging Europe with Middle Eastern, Asian and
African countries is ideal to make it an
international logistics hub its economy is
growing strongly based on a stable political
framework, there have been and are still
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Research4India 9
significant investments in infrastructure.
Despite its significant retail market and trade
volumes, the Turkish logistics market is
currently underdeveloped and dominated by
local players and small family businesses.
Abu Dhabi JV eyes $1bn Japan investment
Abu Dhabi Investment Council has partnered
with an Australian real estate company to
develop more than $1bn worth of logistics
facilities in Japan. The deal with the Goodman
Group, which owns, develops and manages real
estate including warehouses, business parks
and offices globally, sees the establishment of
the Goodman Japan Development Partnership
(GJDP). The agreement is a 50/50 venture
between Goodman and the Abu Dhabi
Investment Council. A combined $500mn of
equity has been allocated to the partnership,
with its leverage capability allowing for an initial
investment target in excess of $1bn. GJDP said
it has a strategy to develop modern logistics
facilities in the major logistics markets of Japan.
Japan’s distribution centers are drawing
investors as the market rebounds from record-
high vacancies about two years ago.
Myanmar gets loan for highway
construction
India has extended a $ 500mn concessional
Line of Credit to the Government of Myanmar.
The Line of Credit is at an interest rate of
1.75% per annum and repayment period of 15
years inclusive of 5 years moratorium. "The
Line of Credit will be utilised in the
infrastructure development projects, including
in the fields of Agriculture and Irrigation, Rail
Transportation and Power in Myanmar. EXIM
Bank of India releases and monitors funds
sanctioned under Government Lines of Credit.
Top 20 shipping lines add 844,000 TEU to
fleet over 12-month period
The top 20 ocean liners had added over the last
12 months 844,000 TEU in capacity to their
fleet amid a loss-making period. The two
largest carriers, Maersk and MSC, account for
more than half the added capacity, having put
on 232,000 and 218,000 TEU respectively since
July 2011, Alphaliner reports. As of July 1, the
total liner capacity has reached 16.53mn TEU,
of which 16.05mn TEU is made up of container
ships, an increase of 6.5% in the last 12
months. It said that only two carriers, CSAV
and Zim, removed capacity during the period.
Cash-strapped CSAV's capacity has halved
during the last 12 months, down from 544,000
TEU to 269,000 TEU. During the same period,
Zim removed 10,700 TEU from its fleet amid a
drive to return to financial health.
CSAV accumulated net losses of $1.5bn since
the beginning of 2011, while Zim's losses have
hit $559mn in the same period.
Freight Forwarding and Logistics Group
Ventures Further into Supply Chain
Management
Freight forwarding and logistics company
Uniserve announced that it has acquired finance
and management consultants Portall Solutions
Ltd.- A 4PL company. Uniserve says the
acquisition signals its intention to redefine
supply chain management services and to raise
current standards of industry capability with a
new concept of Global Trade Management
(GTM). According to the statement, the
acquisition of Portall will give Universe a
significant addition to its range of capabilities.
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Research4India 10
Stock Market Update
Share Price Performance
Baltic Dry Index
Road Freight Index
U
As on 14th September 2012 Market Cap Price
(In ` mn) (In `) 1W 1M 3M 6M 12M
Container Corporation of India 125,212 963.30 3.1% 1.4% 12.0% 10.2% 5.3%
Blue Dart 40,415 1,703.25 -0.7% -15.6% -13.8% -12.5% 2.5%
Great Eastern Shipping 37,943 249.15 -0.2% -12.6% -2.8% 13.9% 22.8%
Essar Ports Ltd. 36,991 86.45 0.6% -10.8% -2.8% 16.5% 27.5%
Shipping Corporation of India 24,874 53.40 4.9% -1.5% 0.7% -25.1% -37.2%
Allcargo Logistics 16,617 130.35 -5.0% -5.4% 8.5% -8.6% -12.6%
Gateway Distriparks 15,378 141.85 4.1% 3.1% 5.6% -6.1% 3.0%
Arshiya International 7,578 129.80 12.4% 3.9% 4.5% -13.7% 1.0%
Mercator Ltd. 5,265 21.50 -6.2% 0.5% 12.8% -34.4% -22.6%
Transport Corporation of India 4,340 59.60 -0.8% -5.9% -0.7% -8.4% -29.1%
Aegis Logistics 4,248 127.20 8.4% 8.4% 0.6% -21.4% -33.9%
Sical Logistics 3,684 66.25 -1.2% -1.2% -2.7% -1.9% -8.2%
Gati 3,199 36.95 -2.3% -3.2% 9.5% 7.3% -33.4%
SEAMEC Ltd. 2,917 86.05 2.6% -2.1% 4.9% -9.9% -15.8%
Aqua Logistics 2,985 9.95 -2.5% -2.0% 14.4% -32.1% -28.9%
Varun Shipping 2,168 14.45 0.7% -4.0% -4.3% -23.5% -29.0%
NSE Nifty - 5,610.00 4.4% 3.7% 10.3% 2.1% 11.3%
BSE Sensex - 18,021.16 3.9% 2.2% 6.8% 1.2% 9.4%
ET Logistics Index - 16,573.49 2.9% -1.2% 6.0% 1.6% -0.4%
ET Shipping Index - 6,307.42 0.6% -1.4% -3.0% -9.4% -18.0%
Baltic Dry Index (BDIY:IND) - 662.00 -1.0% -11.7% -27.4% -22.6% -65.6%
Percentage Change (%)
Source: Baltic Exchange
Source: Transport Corporation of India
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Research4India 11
Financial Benchmarking
Quarterly Results – Q1 FY ’13, ending 30th June, 2012
Figures in Rs.`mn
Annual Results - FY‘12
Figures in Rs.`mn
Q1 FY’12 Q1 FY’13 YoY Q1 FY’12 Q1 FY’13 YoY Q1 FY’12 Q1 FY’13 YoY EBITDA NPM
Aegis Logistics 8,304 14,843 79% 274 (244) - 161 48 -70% - 0%
Shipping Corp. of Ind. 9,727 12,200 25% 1,181 1,624 38% (59) (549) - - -
Mercator Lines 7,992 10,952 37% 1,513 1,750 16% 147 171 16% 16% 2%
CONCOR 9,490 10,369 9% 2,597 2,671 3% 2,342 2,451 5% 26% 24%
Allcargo 8,541 9,752 14% 1,022 1,135 11% 664 556 -16% 12% 6%
GE Shipping 7,280 8,070 11% 3,183 2,879 -10% 1,626 1,810 11% 36% 22%
TCI 4,159 4,574 10% 344 370 8% 134 136 1% 8% 3%
Blue Dart 3,721 4,317 16% 510 574 13% 340 406 19% 13% 9%
Arshiya 2,226 3,418 54% 539 934 73% 236 346 47% 27% 10%
Gateway Distri. 1,978 2,320 17% 635 660 4% 334 352 6% 28% 15%
Sical Logistics 2,058 1,753 -15% 202 220 - 21 14 -34% 13% 1%
Varun Shipping 1,327 1,538 16% 345 937 172% (353) 1,452 - 61% -
Patel Integrated 1,130 1,191 5% 47 45 -3% 12 9 -25% 4% 1%
Aqua Logistics 1,107 773 -30% 91 63 -31% 42 15 -64% 8% -
SEAMEC Ltd 460 737 60% 127 138 - 86 137 - - -
Shreyas Shipping 319 462 45% 21 70 240% (14) 43 - 15% 9%
Gati 2,253 159 -93% 241 (62) - 38 638 1593% - 402%
Essar Ports 70 84 20% 33 12 -63% (213) (179) - 14% -
Company Revenue EBITDA PAT Margins Q1 FY’13
FY'11 FY’12 YoY FY'11 FY’12 YoY FY'11 FY’12 YoY EBITDA NPM
Aegis Logistics 18,129 44,725 147% 833 49 -94% 467 197 -58% 0.1% 0.4%
Shipping Corp. of Ind. 35,434 43,086 22% 7,098 4,644 -35% 5,674 (4,282) - 11% -
CONCOR 38,266 40,609 6% 10,226 10,237 0% 8,301 8,779 6% 25% 22%
Mercator Lines 28,289 36,999 31% 6,385 5,829 -9% 468 206 -56% 16% 1%
GE Shipping 25,580 29,555 16% 9,945 10,804 9% 4,687 3,166 -32% 37% 11%
TCI 18,527 19,553 6% 1,400 1,580 13% 501 595 19% 8% 3%
Blue Dart 11,507 14,954 30% 1,556 1,799 16% 947 1,242 31% 12% 8%
Gati 9,330 12,093 30% 870 988 14% 95 141 48% 8% 1%
Essar Ports 19,408 11,088 -43% 7,667 8,910 16% 702 639 -9% 80% 6%
Arshiya 8,215 10,547 28% 1,580 2,701 71% 820 1,176 43% 26% 11%
Allcargo 6,998 8,263 18% 1,679 2,481 48% 1,211 1,513 25% 30% 18%
Gateway Distri. 6,034 8,235 36% 1,640 2,504 53% 968 1,320 36% 30% 16%
Sical Logistics 5,384 5,015 -7% (45) 341 - 108 133 24% - -
Patel Integrated 4,284 4,524 6% 139 166 20% 32 29 -8% 4% 1%
Aqua Logistics 5,165 3,683 -29% 497 233 -53% 288 83 -71% 6% 2%
Varun Shipping 8,368 3,645 -56% 3,670 888 -76% 147 92 -38% 24% 3%
Shreyas Shipping 1,904 2,708 42% 308 245 -21% 183 56 -69% 9% 2%
SEAMEC Ltd 1,024 1,818 78% (551) 94 - (672) (132) - - -
Company Revenue EBITDA PAT Margins FY’12
Logistics Track
Research4India 12
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