Market Research Report : Shipping and port market in india 2014 - Sample

Shipping and Port Market – India

November 2014

2 SHIPPING AND PORT MARKET IN INDIA 2014.PPT

SAMPLE Executive Summary

Market Overview

Drivers & Challenges

Government Bodies, Policies and Initiatives

Indian shipping sector is expected to witness a major growth due to the rapid increase in economic activities

and increased EXIM trade

Indian shipping sector includes various other sub sectors such as coastal shipping, ship building and ship

repair which collectively provide ample opportunity in this sector

Indian overseas seaborne trade grew at a CAGR of x% between 19xx-xx and 20xx-xx

Maritime States Developments Council

National Maritime Development Programme

Traffic Authority at Major Ports

Approval of Model Concession Agreement

Drivers

– Increased import of coal

– India as a manufacturing hub

– Increased import of oil

– Increased import of natural gas

– Increased import of iron-ore

– Estimated shortage of food grain

Challenges

– Increased competition and decrease in

order numbers

– Decrease in exports

– Poor connectivity

– Oversupply of tonnage

Establishment of Port Community System

Investments from PE firms

100% allowance of FDI

Promoting tourism

Improving cargo throughput

Competition

Major Players

Player 1 Player 2 Player 3 Player 4 Player 5


•Macroeconomic Indicators

•Introduction

•Market Overview

Shipping

Port

•Investments Undertaken at the Major Ports

•Recent and Emerging Opportunities

•Government Initiative

•Drivers and Challenges

•Competitive Landscape

•Strategic Recommendations

•Appendix


Economic Indicators (1/3) SAMPLE

11

12

13

14

15

INR tn

Q1

d1 c1

b1

a1

Q4

c4

b4

a4

Q3

c3 b3

a3

Q2

c2

b2

a2

2014-15 2013-14 2012-13 2011-12

GDP at Factor Cost: Quarterly

Inflation Rate: Monthly

-2

-1

0

1

2

s

Sep 2013 - Oct 2013

r

Nov 2013 - Dec 2013

t

Oct 2013 - Nov 2013

%

Aug 2013 - Sep 2013

q

Jul 2013 - Aug 2013

p


SAMPLE Shipping and Port Industry – Introduction

Shipping and port industry is one of the major industries in India and has always been a major area of focus for the Indian government

It plays a crucial role in the development of the Indian economy

Shipping and Port Industry

Key Characteristics of the shipping and port industry

Ports Shipping

• Text • Text

Ship building and repair

• Text

Ports Shipping Ship building and repair

Segments


SAMPLE Indian fleet comprises of coastal and overseas vessels which cater to the need of India’s overall sea EXIM trade

Shipping Vessels

20-- 20--

G%

D%

B%

F%

E% C%

A%

C% D%

E%

F%

G%

B% A%

Segment 2

Segment 1

Segment 3

Segment 4

Segment 5

Segment 6

Segment 7 Segment 5

Segment 4

Segment 3

Segment 2

Segment 1

Segment 6

Segment 7

Number of Vessels - x Number of Vessels - y


SAMPLE Shipping industry is an essential sector which boosts India’s economic growth by a large extent

• Shipping is a global industry and is considered as the

backbone of international trade

Its global nature makes it dependent on the development

of the worlds economy

– Characterized to be cyclic in nature and the freight rates tend to

be volatile

• Indian shipping industry plays an important role in

the development of the Indian economy

Indian seaborne trade accounts x% of trade in terms of

volume and y% by value

Government of India is set to invest INR x tr by 20-- for the

development of shipping and port infrastructure

• In Dec, 2013 out of the x vessels registered y vessels

were registered in costal trade and z is overseas

trade

Shipping – Overview Growth of Indian Tonnage

Indian Overseas Seaborne Trade

0

1999-00

a1

b1

2012-13

X%

mt

20-- 20--

0

20-- 20--

Overseas Coastal ‘000 GRT

Note: The ship building number and capacity is for the number of ships delivered by public and private sectors an their capacity is in respect with DWT


SAMPLE Coastal shipping in India is at its nascent stage and is expected to show robust growth in future

• Coastal shipping is expected to offer a huge growth opportunity for transportation of cargo within India

India has about 7,517 km of coastal areas which is a boon for coastal shipping – Coastal shipping accounts for an estimated 7% of total domestic

cargo movement

• Lack of proper connectivity, inadequate infrastructure, high capital cost and unfavorable taxation facility are some of the major hindrances

• The Government having recognized that coastal shipping is a very energy efficient and comparatively cheaper mode of transport, which could greatly relieve the pressure on rail and road transport and the new government is taking initiatives to boost costal shipping

The Shipping ministry has issued guidelines on priority berthing of coastal vessels at ports owned by the Indian government

This will be in addition to the dedicated berths for handling of coastal thermal coal already existing at these ports

The ports will also have to give priority berthing to coastal container vessels at private terminals and at container berths run by the ports themselves

Coastal Shipping – Overview

Note: GRT stands for Gross Register Tonnage and DWT stands for Dead Weight Tonnage

Number of Coastal Vessels

0

X%

20--

d1

20--

c1

20--

b1

20--

a1

0.0

20--

d1 d2

20--

a2 a1

X%

c2 c1

20--

b2 b1

20--

Segment 2 Segment 1

mn

Capacity of Coastal Vessels


SAMPLE Increasing trade and fierce competition in the industry is expected to add to the growing market

• Indian shipbuilding being a part of global shipping

industry is expected to get a major boost owing to

the rise in global trade

Anticipated increase in the EXIM trade of India and

thereby increased number of ships required to support the

growing trade will lead to dynamic growth

• To capitalize on the forthcoming opportunities in the

industry, players are taking various initiatives

They have expressed their interest in categorizing

shipbuilding as a part of infrastructure, extension of the

subsidy scheme till 2017 is also one of the proposals put

forward by the players

• Currently, India has 27 shipyards with 6 under

Central Public Sector, 2 under State Governments

and 19 private shipyards

Gujarat, with its 1,600 km long coastline provides ample

opportunities for shipbuilding

– Gujarat alone accounts x% of India’s shipbuilding capacity, which

is y% of global shipbuilding capacity

Shipbuilding – Overview

Note: The ship building number and capacity is for the number of ships delivered by public and private sectors an their capacity is in respect with DWT

Market Size of Shipbuilding

Shipbuilding Number and Capacity

0

INR bn X%

20--e

f1

20--e

e1

20--e

d1

20--e

c1

20--e

b1

20--

a1

0

X%

2012-13

b1

2011-12

a1

0.0

mt Y%

2012-13

b2

2011-12

a2


SAMPLE Increasing sea-trade and global fleet size is expected to push the industry forward

• Indian ship repair industry is expected to witness a

major boom in its growth in the years to come

Overall increase in global trade and fleet size will increase

the frequency of periodic maintenance and repairs thereby

boosting this sector significantly

– Indian sea-borne trade is also expected to increase significantly by

2020, thereby leading to the development of the ship repair

industry in India

In order to sustain growth and create a strong revenue

generation model due to increased trading activities, the

government has also played its part

– All major ports in the country are directed to expand their

business from port service to ship repairing so as to cater to the

increasing traffic

• Currently the average revenue of the sector is INR x

bn pa

Ship Repair – Overview Market Share and Size

Number of Ships Repaired (in numbers)

X%

Y%

Region 1

Region 2

0

20-- 20--

d2

d1 c1

20--

a2

a1 b1 b2 c2

20--

Segment 2 Segment 1


SAMPLE Major Ports in India (1/13)

Port 1 – Overview (1/2)

• Port 1 is considered to be the oldest port in the eastern region of India

Text

0

a1

INR bn

2012-13

c1

2011-12

b1

2010-11

Total Operating Revenue

Net Surplus/Deficit

Financial Highlights

Commodity 20xx-20xx 20xx-20xx

Liquid Bulk

Dry Bulk

Break Bulk

Container

Overall

Performance Indicators

Note: The performance indicators are based on average turn around time in days


SAMPLE

Commodity Wise Traffic Estimation (mt)

0

20

40

60

80

100

2015-16e

a1

2019-20e

b1

Segment 8

Segment 7

Segment 6

Segment 5

Segment 4

Segment 3

Segment 2

Segment 1

Commodity Wise Capacity Estimation (mt)

0

50

100

150

2019-20e

b1

2015-16e

a1

Segment 8

Segment 7

Segment 6

Segment 5

Segment 4

Segment 3

Segment 2

Segment 1

Port 1– Overview (1/2)

• Text

0

Apr-Nov 2012

a1

Apr-Nov 2013

b1

Segment 6

Segment 1

Segment 2

Segment 3

Segment 5

Segment 4

Commodity Wise Traffic Handled (in ‘000)

Major Ports in India (1/13)


SAMPLE Investments Undertaken at the Major Ports (1/6)

Port Name & Description Estimated Cost

(INR mn) Capacity (MTPA)

Port 1

Container Terminal, NSICT xx xx

BPCL Jetty xx xx

Third Container Terminal xx xx

Port 2

Construction of two new off Shore container berths and Development of container terminal on BOT basis in Mumbai Harbor

xx xx

Port 3

Bulk Cargo Berths No. 5A & 6A xx xx


SAMPLE Recent & Emerging Opportunities (1/6)

Port Name & Description Estimated Cost

(INR mn) Capacity (MTPA)

Port 1

Development of 13th to 16th multipurpose cargo berth (other than liquid & container cargo berth)

xx xx

Creation of berthing and allied facilities of Tekkra near Tuna (outside kandla Creek) – Phase – 1

xx xx

Setting up of Single Point Mooring (SPM) and allied facilities off Veera in Gulf of Kutch

xx xx

Port 2

Setting up of Mechanized Iron Ore handling facilities at Berth – 14 xx xx

Development of Container Terminal xx xx


SAMPLE Major Government Bodies

Tariff Authority at Major ports (TAMP)

• Constituted in 1997, the TAMP is an independent authority which regulates matters related to port tariffs Regulates all sorts of tariffs related to vessels and cargoes and decides the rates for various properties in

the major port trusts of India and the private operators TAMP also notifies the conditions governing the application of tariffs The notifications are published in the Gazette of India

• The union government has the power to modify these orders or issue ‘policy directions’

Maritime States Development Council (MSDC)

• Maritime States Development Council helps in maintaining an integrated port development policy across the Indian ports

National Maritime Development Program (NMDP)

• Announced in 2005, the NMDP envisages an investment of INR 1003.30 bn on 387 projects in ports and shipping sector over a period of 20 years

• Fund allocated for the port and shipping sector separately are:

Port sector – INR 558.04 bn through PPP basis

Shipping sector – INR 445.35 bn through budgetary and internal and external budgetary resources

Government Bodies


Drivers & Challenges

Drivers

Increased import of coal

India as a manufacturing hub

Increased import of oil

Increased import of natural gas

Increased import of Iron-ore

Estimated shortage of food grain

Challenges

Increased competition and decrease in order numbers

Decrease in exports

Poor connectivity

Oversupply of tonnage


SAMPLE Increased demand for thermal coal and shortage of domestic production will result in higher imports of coal

• Dominance of coal in the energy sector in India is expected to continue in the foreseeable future

• Demand for coal imports will grow in future as Indian installations of coal-fired power stations expand

• India’s demand for coal is expected to increase by x% annually over the period 20xx-xx

Coal production in India in 20xx-xx was z mt

Total imports for the same period of coal and products was y mt

Demand-supply gap in 20xx-xx was met through coal imports which depicted a growth of x% YOY

• Indian shipping is expected to see a good future due to the increase in the demand for coal

India is expected to replace China as the leading source of coal demand growth area

Increased import of coal

0.0

2024-25e

c1

2021-22e

b1

2016-17e

a1

mt

Segment 1 Segment 5 Segment 3

Segment 4 Segment 2

Coal Demand Projection

Ports 2013(mt) 2012(mt) Y-o-Y Change

Paradip

Gangavaram

Haldia

Vishkapatnam

New Mangalore

Krishnapatnam

Coking Coal Stocks at Indian Ports

Impact


SAMPLE

Competitive Rivalry • Text

Bargaining Power of Buyers • Text

Threat of New Entrants • Text

Impact High

Impact High

Impact Medium

Bargaining Power of Suppliers • Text

Impact Low

Threat of Substitutes • Text

Impact Low-Medium

Porter’s Five Forces Analysis


SAMPLE Public Trading Comparable (FY 2014)

Player 1 Player 2

Market Capitalization (INR mn)

Share Price (INR)

EV/EBITDA (x)

EV/Revenue (x)

PE Ratio

Competitive Benchmarking (1/5)

Note: 2 domestic cargo transportation companies based on the Market Capitalization; Market Capitalization , PE ratio and Share Price is as on 14/10/2014


SAMPLE Key Ratios of Top 3 Companies – Operational Basis (FY 2014) (1/3)

• Text

Competitive Benchmarking (3/5)

B

0

A

C

x1

y1

%

Company C

y3

x3

Company B

y2

x2

Company A

Net Margin Operating Margin


SAMPLE

Key People

Products and Services

Company Information Offices and Centres – India

Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation

Ticker Symbol

Stock Exchange

Category Products/Services

Products/Services

Name Designation

Note: The list of products and services is not exhaustive

Mumbai Head Office

Public: Domestic Company – Player 1 (1/5)


SAMPLE

Financial Snapshot Key Ratios

Financial Summary

Key Financial Performance Indicators

Indicators Value (14/10/2014)

Market Capitalization (INR mn)

Total Enterprise Value (INR mn)

EPS (INR)

PE Ratio (Absolute)

Improved Decline


Particulars y-o-y change

(20xx-xx) 20xx 20xx 20xx 20xx

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 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

• Company earned a net profit of INR x mn in FY 20xx, as compared to a net profit of INR y mn in FY 20xx

• The company reported total Income of INR x mn in FY 20xx, registering an increase of z% over FY 20xx

• The company earned an operating margin of x% in FY 20xx a decrease of y percentage points over FY 20xx

• The company reported debt to equity ratio of x in FY 20xx, a decrease of y% over FY 20xx

Financial Snapshot

Financial Summary

Net Profit/Loss Total Income

-2,000 0

0

-1,000

INR mn INR mn

20--

x4

y4

20--

x3

y1 y2 y3

20--

x2

x1

20--


SAMPLE Key Business Segments Key Geographic Segments

Key Information

Description Details

Overview • Text

Public: Domestic Company – Player 1(3/5)

0%

50%

100%

20--

z

20--

y

20--

x

0%

20--

z

D3% C3%

B3% A3%

20--

y

C2% D2%

B2%

A2%

20--

x

C1% D1%

B1%

A1%

Region 1

Segment 2 Segment 4

Segment 3 Segment 1


SAMPLE Description Details

Latest Developments • Text



SAMPLE

• Text • Text

• Text • Text

•T •O

•W •S

•Strength •Weakness

•Opportunity •Threat

•SOFTWARE MARKET IN CHINA 2014.PPT


26

SAMPLE Private: Domestic Company – Player 2 (1/5)

Key People

Products and Services

Company Information Offices and Centres – India

Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation

Ticker Symbol

Stock Exchange

Category Products/Services

Products

Name Designation

Syed Abdi

Arun V. Phatak

Rajesh Tulsiani

Praveen Kumar Bhandari

Note: The list of products and services is not exhaustive

Mumbai Head Office

SHIPPING AND PORT MARKET IN INDIA 2014.PPT

27

SAMPLE

Improved Decline

Private: Domestic Company – Player 2 (2/5)


Financial Snapshot Key Ratios

Improved Decline

Particulars y-o-y change

(20xx-xx) 20xx 20xx 20xx 20xx

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 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

• Company earned a net profit of INR x mn in FY 20xx, as compared to a net profit of INR y mn in FY 20xx

• The company reported total Income of INR x mn in FY 20xx, registering an increase of z% over FY 20xx

• The company earned an operating margin of x% in FY 20xx a decrease of y percentage points over FY 20xx

• The company reported debt to equity ratio of x in FY 20xx, a decrease of y% over FY 20xx

Financial Snapshot

Financial Summary

Profit / Loss Total Income

0

1

2

3

4

0

Total Income INR mn

Profit INR mn

20--

a4

b4

20--

a3

b3

20--

a2

b2

20--

a1

a1

28

SAMPLE Shareholders of the Company as on 26/09/2013 Ownership Structure

Name No. of Shares held

ABC a

ABC b

ABC c

ABC d

ABC e

ABC f

ABC g

ABC h

ABC i

ABC j

ABC k

Total xyz

X%

Note: Shareholding pattern as on AGM dated 26th Sep 2013

Private: Domestic Company – Company 2 (3/5)

Segment 1


29

SAMPLE Description Details

Infrastructure • Text



30

SAMPLE

• Text

• Text

• Text

• Text

•T •O

•W •S

•Strength •Weakness

•Opportunity •Threat

•SOFTWARE MARKET IN CHINA 2014.PPT




SAMPLE

Infrastructure development

Strategy Adoption Area

R&D

Regional Growth Exploring niche markets

• Text

• Text

• Text

• Business strategies including increasing the fleet strength, fleet modernization providing better and wide range of facilities should be adopted

Strategic Recommendations


SAMPLE Shipping and Port Market – India 2014 report is a part of Netscribes’ Automotive and Logistics Series. For more detailed information or customized research requirements please contact:

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Market Research Report : Shipping and port market in india 2014 - Sample

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Transcript of Market Research Report : Shipping and port market in india 2014 - Sample