Market Research India - Warehousing Industry in India 2009

Warehousing Industry ‐
Warehousing Industry India
July 2009

Executive Summary
 Estimated worth INR 20 bn in 2007‐08; Expected to reach INR 55 bn by 2010‐11
 Warehousing accounts for 20% of the total logistics market
Market  Major warehousing destinations are Maharashtra, Tamil Nadu, Haryana and West Bengal
 Warehouses can be classified as ‐ public, private and bonded
p ,p
 Shift to GST tax regime
 The Warehousing Act, 2007
Government  Private investment in logistics parks and FTWZs
Initiatives  Infrastructural developments
Infrastructural developments
 Development of the dedicated freight corridor
 Strong macroeconomic fundamentals
 Changing tax policy boosting warehouse outsourcing
Trends  Most profitable segment in logistics leading to large scale investments
 Realty players foraying into the market
 Large scale investments from private equity firms
 The market is fragmented with 92% of the market comprising of the unorganized sector
The market is fragmented with 92% of the market comprising of the unorganized sector
 70‐75% of the organized market is accounted for by PSUs
PSU’s Private Players
Major Players • Central Warehousing Corporation • Transport Corporation of India
p
• Food Corporation of India • Gati
• State Warehousing Corporation • Blue Dart

WAREHOUSING INDUSTRY – INDIA.PPT 2

•Market Definition
•Market Overview
•Government Initiatives
•Industry Characteristics & Trends
•Major Players
•Key Developments
y p
•Appendix


Warehouses constitutes space for temporary storage for raw
materials and finished goods for onward transport to customers
Supply Transport Storage Transport End‐customer

Road Road
Manufacturer Customer
Rail Rail
Exporter Warehouse Importer
Sea Sea
S
Distributor Customs
Air Air

• Inbound Logistics: Storage of raw material sourced from suppliers
Role • Outbound Logistics: Dispatch/delivery to customer

Core Non‐core or value added services

Activities • Receipt/Putaway • Tally with goods receipt • Order processing
• Storage • Packaging/re‐packaging • Shipping
• Dispatch • Product mixing/bundling
Product mixing/bundling • Inventory Management
Inventory Management

• Primary: Road; located close to manufacturing base or end‐customer
Integration • Secondary: Increasingly being integrated directly with rail, sea and air infrastructure


•Market Overview
•Major Players
•Key Developments
y p
•Appendix


Warehouse industry is estimated to grow at an accelerated rate
in accordance with the growth in trade and commerce
Overview Major Warehousing Destinations
•Warehousing in India is estimated to account Other Logistic Segments
for approximately 20% of total logistics costs 80%
Warehousing
•The current state of warehousing is dismal: expected to
 Inefficient facilities account for 35%
logistic activity by
 Lack of technology 2011
 Shortage of expertise
Shortage of expertise 20%
 Small and distributed across states primarily due Warehousing
to the tax structure
•Fundamental demand is very strong leading to
large investments and expansion by logistic
large investments and expansion by logistic Market Size and Growth Capacity Expansion
p y p
service providers and warehousing companies USD bn mn MT
•Market is estimated to grow at 40% p.a. 60 +40% 55 150 +10%
•The Government’s 11th Five Year Plan targets a 100
110
39 91
capacity of 110 MT by 2012 40 100 83
28 75
•Competitive landscape is dominated by state‐ 20
20 50
owned companies although private
participation is also growing significantly 0 0
07‐08 08‐09 09‐10 10‐11 2008 ’09 ’10 ’11 ’12


Lack of sophisticated technology, skilled personnel and
infrastructure has led to inefficiencies in current warehouses

• Warehouse management in India predominantly follows a Clearing and Forwarding (C&F)
agent model thus most warehouses are primarily a covered storage space acting as depots
Current state of or stocking points and are usually small in size
Market • An agent on contract manages the facility but most are not knowledgeable nor follow
professional methods and practices
• Concepts or tools such as warehouse management systems, automation or vertical space
y
utilization are virtually non‐existent

• Majority of operators are small‐ to mid‐sized entrepreneurs with limited investment
Majority of operators are small to mid sized entrepreneurs with limited investment
capacity
State of • Most investments are from government while private sector investments are sporadic and
Infrastructure are largely concentrated only in the port areas
and Resources  Government plans to invest USD 24 bn in overall supply chain infrastructure by 2016
Government plans to invest USD 24 bn in overall supply chain infrastructure by 2016
• Large demand supply gap exists in the warehousing industry for skilled personnel
• A major shortfall exists in the resources required for warehouses to function efficiently
 Number of warehouse managers is expected to increase from 14,00 in 2006 to 34,000 in 2015
 Demand for new warehouse managers is expected to increase from 3,270 in 2006 to 7,720 in 2015


Warehouses are classified in three categories depending on
ownership and usage

• Owned and operated by private entities or individuals
Private • Licensed for exclusive use of goods owned, imported by or on behalf
of licensee only
f li l

• Licensed by the government to private entities individual or
Licensed by the government to private entities, individual or
cooperative society
• Permitted to offer storage facilities to general public or other entities
Type Public for a fee
• Typically located near transportation points and critical in marketing of
agricultural products

• Licensed to accept import goods for storage until payment of customs
duty
• Primarily located near ports and operated by government or customs
Bonded authorities and used primarily by importers and exporter
• Warehouses give an undertaking or “bond” that goods will not be
removed without prior consent from customs authorities


There are two primary models – own and lease with various sub‐
options depending on the operator’s preferences

Built‐to‐suit • Low startup time since land consolidation not an Operational elasticity
(BTS) issue No lease renewal/termination
Appreciation of land prices

Direct land • Beneficial for large players & long‐term plans
Own/Purchase • Acquisition and consolidation large land tracts
purchase
 Large initial investment
Partnership  Difficulty in obtaining large‐
• Land acquisition & development handled by
size facility
size facility
with land realty player & construction is done by operator
 Long payback period
developer • Identifying ideal partner is a challenge

 Condition and technological
Low initial investment
 l capabilities of facility
bl ff l
Built‐to‐suit Low risk and liabilities  Possibility of high rentals & size
(BTS) Availability of infrastructure constraint issues
 High maintenance costs
Lease

Long‐term Freedom of customization  Availability of long‐term land lease
Low maintenance  Land consolidation issues for larger
Land Lease
Integration of technologies sized facilities


Major Warehouse Hubs – North & East India

Warehouse Hubs

Faridabad
Pataudi

Medinipur


Major Warehouse Hubs – South & West India

Bhavnagar

Mysore

Warehouse Hubs


•Market Overview
•Major Players
•Key Developments
y p
•Appendix


The government has taken strong initiatives and implemented
various policies for the development of this sector
Shift to GST tax regime
• Major transition from Central Sales Tax to the existing VAT regime coupled with the
introduction of Single‐tax Goods & Services Tax (GST) allowing for the lower logistics costs
• Expected to lead to large warehouses offering various services via integration of technology
Warehousing Act
• The Warehousing Act, 2007 introduced a negotiable warehouse receipt (NWR) system
• NWR’s are expected to facilitate FI’s as it provides cost advantages and eases trade
procedure for players
procedure for players

Key Private Investment in Logistics Parks and FTWZs
Initiatives
• Government has been encouraging private players to develop logistics parks and Free Trade
Warehouse Zones in order to boost this sector by drawing in large scale investments
y g g

Infrastructural Developments
• Impetus has been on developing road infrastructure to support road freight
Q ( ) j
• Golden Quadrilateral and NSEW (North‐South‐East‐West) Road Corridor are two major
initiatives forwarded by the government
Development of the Dedicated Freight Corridor

• Government plans to create a dedicated rail freight corridor along the east and the west
• Private participation is expected for developing modern logistics facilities and services


Phase out of current CST tax system by March 2011 paving way
for large and sophisticated warehouses
Until 2006 Tax system transitions Expected
Primary driver
Central Sales Tax (CST) regime
for consolidation
& outsourcing
& outsourcing

Manufacturers/distributors Fewer but larger
taxed for Inter‐state sales warehouses
Phase out of CST by 2010‐11

Warehouses maintained in Optimized rather
each state to show inter‐state than tax‐efficient
sales as stock transfers and location
avoid tax
Consolidation
Introduction of VAT in 2005 of
Warehouses
• Small‐sized warehouses Scope for value
• Inefficient added services
• Minimal or no technology
Single‐tax Goods & Services
Tax (GST) on 1st A il 2010
T (GST) 1 April 2010
High distribution costs – Integration of
Logistics spend ~13% of GDP technology

Introduction of VAT has increased transparency and eventual incorporation of GST will
Introduction of VAT has increased transparency and eventual incorporation of GST will
significantly reduce logistics costs


Negotiable warehouse receipt system will facilitate entry of FIs
and create demand for modern warehouses
Key components of the Warehousing (Development and Regulation) Act, 2007
• Warehousing Development and Regulatory Authority (WDRA) for registration and certification of warehouses
• Accreditation agencies also appointed to facilitate registration of warehouses
Warehouse • Certification granted condition to warehouse meeting prescribed norms such as:
 Storage worthy for different category of goods
Regulator
 Equipment and apparatus for weighing, handling, sampling, grading, fire fighting and pest management
 Trained staff having knowledge and expertise for scientific storage of goods
• Certified warehouses will be permitted to issue Negotiable Warehouse Receipt (NWR)

• Fully negotiable instruments at a national level
Negotiable
• Uniform paper or electronic format containing all necessary details
Warehouse Receipt
• Backed by enforceable laws to protect rights of holder

• Legal protection along with dispute settlement mechanism enforces trust in NWR as negotiable instruments
Legal protection along with dispute settlement mechanism enforces trust in NWR as negotiable instruments
Trade & Finance • Freely transferable between buyers and sellers making it a tool of trade
• Enabling large‐scale entry of financial institutions and resultant credit flow to rural areas and farmers

• Shorter and more efficient supply chains
Logistics Costs • Lower cost of financing due to reduced risk
• Rewards for quality & grading

Demand for warehouses with modern equipment, processes and technology will be a
Demand for warehouses with modern equipment, processes and technology will be a
must to support the objectives of Warehousing Act


Policy on Logistics Parks and Free Trade Warehouses providing
significant boost to warehouse development
• Government policy to invite private sector to build logistics parks and Free Trade Warehouse Zones (FTWZ) is one the
most important drivers for growth in warehousing in India
• Although there are distinctions between Logistics Parks and FTWZs, they share a common function to provide state‐
of‐art warehousing facilities, multimodal connectivity, and services pertaining to domestic and EXIM trade

Parameter Logistics Park Free Trade Warehouse Zone (FTWZ)
Description Includes warehouses, container facilities and cold chain
Includes warehouses container facilities and cold chain Special form of SEZ with focus on warehousing and
Special form of SEZ with focus on warehousing and
infrastructure international trading
Components • Container and product‐specific terminals & warehouses • Standard and Bonded Warehouse
• Rail & road connectivity; air where applicable • Rail & Road sidings
• Allied facilities like commercial space and banks • Processing area
•H t l f d
Hotels, food parks and entertainment facilities permitted
k d t t i t f iliti itt d
Focus Domestic market EXIM trade – international markets
Regulatory • Considered as within the DTA (Domestic Trade Area) • Designated as foreign territory
• Classified under Infrastructure industry • Governed under the SEZ Act, 2005 & SEZ Rules, 2006
Specification N.A.
NA • Minimum built up area of 0 5 mn sq mtrs
Minimum built up area of 0.5 mn sq. mtrs
• Minimum outlay: INR 1 bn
Incentives • 22% income tax exemption for continuous operations of • Same as SEZ
10 years • Developers and operators can avail benefits
• Granted only to developers
Location • Majority are near SEZs & Dedicated Freight Corridors FTWZ itself is considered as an SEZ


Improving road infrastructure will support road freight, which
accounts for nearly half of all freight traffic
Golden Quadrilateral and NSEW (North‐South‐East‐West) Road Corridor
•Despite being more expensive than rail, roads
account for 50% of freight transport with
national highways alone accounting for 40%
•As part of road infrastructure development:
 Six‐laning of Golden Quadrilateral and select
national highways
g y
 Four‐laning on NSEW corridors
 Four‐laning 20, 000 km of National Highways
•Roads will remain a crucial component of
freight movement since railway freight is:
freight movement since railway freight is:
 More popular for movement of bulk goods
 Hindered by limited reach in hinterland
 More expensive than road transport


Dedicated Freight Corridors will create a modal shift from road
to rail and need for modern logistic facilities and services
•Government has proposed two dedicated rail freight corridors along the west and east.
 Western corridor is a part of the Delhi Mumbai Industrial Corridor (DMIC) and is to be commissioned by 2012
 Eastern corridor is yet at a proposal stage
•Private sector participation is sought for logistic infrastructure and trade services along the corridor
Pi t t ti i ti i ht f l i ti i f t t dt d i l th id

Dedicate Freight Corridors ‐ Route Map Delhi Mumbai Industrial Corridor
• Length: 1,483 km
• Short‐listed Industrial Areas (IA):
 Meerut‐Muzaffarnagar (U.P) ‐ Engineering/Manufacturing
 Faridabad‐Palwal (Haryana) ‐ Engineering/Manufacturing
 Jaipur‐Dausa (Rajasthan) ‐ Marble/Leather/Textile
 Vadodara Ankleshwar (Gujarat) General Manufacturing
Vadodara‐Ankleshwar (Gujarat) ‐ General Manufacturing
 Nimach‐Nayagaon (Madhya Pradesh)
 Dighi Port (Maharashtra) ‐ Industrial area with greenfield
port
• Indian Railways has identified 11 sites for multimodal
logistics hubs and will invite private sector
participation through SPVs

With major development along Delhi Mumbai corridor and golden quadrilateral project
With major development along Delhi‐Mumbai corridor and golden quadrilateral project
in parallel, the region is likely to witness maximum development and investment


•Market Overview
•Major Players
•Key Developments
y p
•Appendix


Key Trends

Strong macroeconomic
fundamentals

Large scale investments from
L l i t t f Changing tax policy boosting
Ch i t li b ti
private equity firms warehouse outsourcing
Trends

Most profitable segment in
Realty players foraying into the
logistics leading to large scale
market
investments


Strong macroeconomic fundamentals driving the demand for
warehouse services
EXIM trade Retail Market
INR bn USD bn
8,000
, 400
Export +14%
14% 312
6,000 Import 300 262
230
186 205
4,000 200

2,000
, 100

0 0
2001 2002 2003 2004 2005 2006 2007 2008 2001‐02 2002‐03 2003‐04 2004‐05 2005‐06

Industrial Production Index Share of Organized Retail
400 Basic Goods Base: 1993‐94 = 100 % Growth of
Capital Goods
350 Consumer Goods 20 organized retail is
direct driver for
300 Intermediate Goods
15 warehousing
Manufacturing
250
IPI
10
200
150 5

100 0
2001 2002 2003 2004 2005 2006 2007 2008 2004 2005 2006 2007 2008 2009 2010


Phasing out of CST and introduction of VAT encouraging
warehouse outsourcing and value‐added services
State of logistics outsourcing Outsourced activities
•Until 2006, manufacturers maintained their Outbound Transport 56%
own warehouses for stock transfers and
avoided taxation on inter‐state sales under
id d i i l d Inbound Transport
Inbound Transport 52%
CST Clearing and Forwarding 52%
•With phasing out of CST and introduction of
VAT regime, manufacturers are increasingly EXIM Management 35%
opting to outsource logistics functions
opting to outsource logistics functions Outbound Warehousing 34%
•Based on a 2007 survey:
Inbound Warehousing 30%
 Warehousing is a frequently outsourced function,
including outbound and inbound warehousing Labelling & Packaging 29%
 Warehousing services such as labeling &
Warehousing services such as labeling &
packaging, order picking, and inventory Fleet Management 29%
management are also being outsourced
Order Picking 27%
•Logistics outsourcing to 3PLs:
 High prevalence in industries such as automotive Inventory Management 24%
and IT hardware & electronics
Respondents: 130 companies in 15 industries
 Low in consumer goods and pharmaceutical Source: Centre for Supply Chain Management, MDI, Gurgaon, India

Growth in logistics outsourcing will provide an impetus to the organized sector and 3PL
Growth in logistics outsourcing will provide an impetus to the organized sector and 3PL
operators, which currently account for less than 10% of Indian logistics


Logistics service provider are focusing on large scale investments
in the warehousing segment
High Margins Expected Investment Levels (in USD mn)
•Future investments estimated in the logistics 10‐20
market is expected to be dominated by large >50
scale investments 20%
%

•A substantial share of these large investments Majority of
45% logistics service
is expected to be made in the warehousing providers making
space
p 35% large investments
large investments
•Logistics players are primarily focusing on the 20‐50
warehousing market as the margins are
substantially higher than the other segments
Warehousing dominates Capex
of the supply chain
of the supply chain
•In comparison to other segments of logistics
M&A
industry like transportation, which yield profit
IT 5% Logistics players
margins of ~20%, warehousing offer net
22% focussing on the
margins on EBITDA ~35‐40%
margins on EBITDA ~35 40% most profitable
sector
42%

31% Warehousing
Fleet expansion


Players are entering via independent ventures or through JV’s
with warehousing development and management companies
Real estate companies foray into warehousing
• In the current market scenario, real estate players are looking at generating revenues in the short run through
investments in logistics
• Demand – supply mismatch allows real estate players to breakeven in5‐7 years as return on investment with
rentals alone yields between 12‐14% p.a.

Company Investments
• JV: Entered into a partnership with ProLogis a US based industrial real estate
JV: Entered into a partnership with ProLogis, a US based industrial real estate
developer, for setting up warehouses across India
K. Raheja Corp • MOU: With West Bengal Industrial Infrastructure Development Corporation towards
expanstion at an investment of INR 23 bn
• Acquisition: Planning to acquire land for projects in Bangalore, Chennai and Mumbai
• JV: With Jebel Ali Free Zone (Jafza) International of Dubai towards developing 27
Tata Realty and
businesses and logistic parks across India at an investment of INR 100 bn
Infrastructure Ltd
• Expansion: Large tracts of land have been identified and each park will take between
(TRIL)
six to seven years for completion
• Expansion: Plans on developing warehouses in Chennai, Bangalore and Pune at an
Nitesh Estates
investment of INR 20 bn
Akruti City • Expansion: Plans on developing 20 warehouses across India


Growth in the warehouse business has witnessed large scale
investments from PE firms
PE activity in warehousing industry
• The level of investment, by 2012, towards the development of warehousing space is estimated to be USD
500mn
• Investments of USD 1 bn is expected towards developing 110 logistics parks by 2012 expanding over 3500
acres

Year Logistics Company PE Investor Stake (%) Deal Size (USD mn)
Apr ‐
Apr 2008 TVS Logistics Services Ltd
TVS Logistics Services Ltd Goldman Sachs
Goldman Sachs’ NA 20
Jan ‐ 2008 Om Logistics Merrill Lynch NA 24
Aug ‐ 2007 Transport Corp (TCIL) Fidelity 7 11
Aug ‐ 2007 Vikram Logistics Guggenheim Global 33 NA
Mar ‐ 2007 Sical Logistics IDFC NA 25
Mar ‐ 2007 Delhi Assam Roadways Corp IDFC NA 11
Mar ‐ 2007 DRS Group Kotak Mahindra PE NA 22.5
Jan ‐ 2007 BLR India Reliance Capital 31 12
Jun ‐ 2006 BLR India Reliance Capital 31 12
Jan ‐ 2006 Allcargo Movers New Vernon PE 6 13.3


•Market Overview
•Major Players
•Key Developments
y p
•Appendix


Market is extremely competitive with a large unorganized sector
and the organized sector is dominated by PSU’s
Overview Organized Sector (2008)
•70‐75% of the organized market is accounted Unorganized
by PSUs 92%
 Central Warehousing Corporation
 Food Corporation of India
 State Warehousing Corporation
•Other major player
Other major player
 Transport Corporation of India
8%
 Blue Dart Organized
Growth in Organized Sector
•Existing and new players are constantly
expanding operations and are expected to State Warehousing
Central Warehousing 25% Corporation
continue to develop warehousing Corporation
infrastructure
14%
Organized 2008 2012 CAGR
33% Food Corporation
Area (mn. sq.ft.) 174 255 10% of India
28%
Capacity (mn. MT)
( ) 80 125 12% Others


Government Players (1/2)
Company Snapshot: Central Warehousing Corporation
Corporate Information Financial Performance
Established 1957 Revenue Revenue Profit
INR mn
INR Profit / Loss INR mn
INR
Headquarters Mumbai 7,762
8,000 6,864 1,500
Capacity 9.8 mn tonnes 6,000
1,000
Location 499 warehouses ,
4,000
Key People • B.B.Pattanaik (Chairman and MD) 500
2,000
• D.K.Panwar (Chairman and MD)
• Naveen Prakash( Joint Secretary) 0 0
2006‐07 2007‐08

Business Highlights Business Outlook
• Provides storage facilities for a wide range of products, • Expansion: Plans on expanding existing warehousing
from agricultural to industrial goods
from agricultural to industrial goods capacity in Kerala by 20,000 tonnes in 2009‐10
capacity in Kerala by 20 000 tonnes in 2009‐10
• It has a market share of 14 % (2008) • MOU: Formed an association with the Ministry of
• The company handled 941,872 TEUs in ’08 against Consumer Affairs, Food & Public Distribution for
773,536 TEUs handled in the previous year, registering a creating additional storage capacity of 50,000 MT
growth of 21.8% at their CFSs / ICDs
growth of 21.8% at their CFSs / ICDs • MOU: With FACT as it plans to set up a modern state‐
With FACT as it plans to set up a modern state
of‐the art CFS facility near the Kochi Port


Government Players (2/2)
Company Snapshot: Food Corporation of India
Corporate Information Business Highlights
Established 1965 • Warehouses are extensively used for storing eatable
items
Headquarters New Delhi
• The corporation sees opportunity in diversifying and
Capacity 24.5 mn tonnes catering to warehousing of commodities apart from
Location 1451 warehouses food
Key People • V.K.Malhotra (Chairman & MD) (
• Market Share: 33% (2008))

Company Snapshot: State Warehousing Corporations
Business Highlights
• These are under dual control of the respective State Government and CWC
• Total share of capital is contributed equally by CWC and concerned state corporation
• M k Sh
Market Share: 25% (2008)
25% (2008)
• Capacity: 18.73 mn tonnes (07‐08); 1576 warehouses
• Maharashtra State Warehousing Corporation (MSWC) has the largest network of warehouses (693) in 165
centres with capacity of 11.71 lakh tonnes
• Expansion: MSWC signed a MOU with NCDEX Spot Exchange Ltd towards developing 20 warehouses across
MSWC signed a MOU with NCDEX Spot Exchange Ltd towards developing 20 warehouses across
Maharashtra


Private Players (1/5 )
Company Snapshot: Blue Dart
INR mn Profit / Loss INR mn
Headquarters Mumbai 9,825
10,000 8,118 800
Capacity 0.15 mn sq ft (07‐08); 50 warehouses 8,000 6,698 600
Location Bonded warehouses at Ahemdabad, 6,000 4,227
400
Bangalore, Chennai, Delhi, Mumbai,
B l Ch i D lhi M b i 4,000
Kolkata and Hyderabad 2,000 200

Key People • Sharad Upasani (Chairman) 0 0
• Anil Khanna (MD) 2005 2006 2007 2008

• Entered into surface movement of goods, with its • Expansion: Establish 58 new warehouses by 2010
product offering named SurfaceLine towards building
product offering named SurfaceLine towards building translating to over 1 mn sq ft of warehousing space
translating to over 1 mn sq ft of warehousing space
extensive capacity in the warehousing segment by investing INR 1 bn
• It has set up 22,000 sq ft warehouse at Kona Expressway • Expansion: Planning to build 7 warehouses in the
near Kolkata catering to its India‐Bangladesh service east by 2010 adding 90,000 sq ft
route, launched jointly with DHL.  Locations identified are Bohoragora in Bengal, Orissa,
g g , ,
• Developed their first 40,000 sq ft facility in Bangalore Assam border, Kona Express highway and Guwahati
highway


Company Snapshot: Gati
INR mn
INR INR mn
INR
Profit / Loss
Headquarters Secunderabad 6,000 5,755 2,500
4,577 4,610
Capacity Mechantronic warehousing facilities 2,000
of 2 mn sq ft across all major cities 4,000 3,613
1,500
Location
L i 22 warehouses across India
22 h I di 2,000
1,000

Key People • Mr. K.L.Chugh (Chairman) 500
• Mr. Mahendra Agarwal (MD & CEO) 0 0
2004‐05 2005‐06 2006‐07 2007‐08

• Introduced its 3PL services in 1997. A concept which was • Expansion: Planning to increase capacity to 2.5 mn sq
not popular in India
not popular in India ft by June 2009 by investing INR 1.5 bn
ft by June 2009 by investing INR 1 5 bn
• Introduced state‐of‐the‐art mechantronics warehouses • New Facility: Launched its 1.8 lakh sq ft modern
with APL racking and modern handling equipment in mechantronic express distribution centre (EDC) at
major cities across India Jeedimetla in Hyderabad equipped with the most
modern warehousing technologies and equipment


Company Snapshot: Indo Arya
Established 1970 INR mn
Revenue
5,000
Headquarters New Delhi 4,200
4,000 3,500
Capacity 0.83 mn sq ft; 0.3 mn sq ft under
construction 3,000 2,500
Location
L i Delhi, Hyderabad, Bangalore and
D lhi H d b d B l d 2,000
2 000
Indore among others 1,000
Key People Mr. R.P.Arya (Director) 0
2006‐07e 2007‐08e 2008‐09e

• Management: It is undertaking warehouse management • Expansion: The company plans to set up warehousing
for a clientele base which includes companies such as
for a clientele base which includes companies such as capacity of 2 mn sq ft by 2010 in  Kolkata, Chennai
capacity of 2 mn sq ft by 2010 in Kolkata Chennai
ITC Foods, Pantaloon, Reliance, Nestle, Coca‐Cola and and Mumbai
P&G • Acquisition: Plans on acquiring freight forwarding
• PE: Bolstered by the growth prospects, it is also firms in India, France, Germany and China
contemplating a 20% equity stake dilution to fund • New Clientele: Providing Aditya Birla Retail exclusive
New Clientele: Providing Aditya Birla Retail exclusive
investments warehousing space for its retail operations


Company Snapshot: Transport Corporation of India
INR mn Profit / Loss INR mn
Headquarters Gurgaon
15,000 400
Capacity 7.5 mn sq ft (07‐08);9 mn sq ft (08‐10) 10,896 12,029
9,140 300
10,000
Location Across India 7,359
200
Key People • Mr. S. N. Agarwal (Chairman) 5,000
100
• Mr. D. P. Agarwal (Vice‐Chairman &
Managing Director) 0 0
2004‐05 2005‐06 2006‐07 2007‐08

• Largest Indian integrated supply chain player India • Expansion: Plans on developing warehouses in
•L Large fleet size of 7000 trucks and 6 cargo ships
fl t i f 7000 t k d6 hi Chakan, Gurgaon at an investment of INR 300 mn. It
Chakan Gurgaon at an investment of INR 300 mn It
is expected to be operational by 2009
• JV: Forayed into third party logistics solutions by forming
a joint venture with Mitsui & Co in 1999 • PE/VC: Fund managers such as, ICICI, Kotak Mahindra
and Fidelity have been looking to invest in TCI
• PE: Plans on raising INR 500 ‐ 750 mn in 08‐09(3Q) by
Plans on raising INR 500 750 mn in 08 09(3Q) by
selling 10% of its promoter holding in the company


Company Snapshot: National Bulk Handling Corporation
Headquarters Mumbai • Expansion: Plans set up 200 warehouses between
2011‐13 at an investment of ~INR 50 bn
Capacity 1.8 mn MT, 381 storage facilities;
manages 3000+ storage facilities with • MOU: With Haryana Warehousing Corporation
total of over 4+ mn MT (HWC) towards a strategic collaboration in
commodity and warehousing management services
Location Pan India presence
Pan‐India presence
• MOU: With Bank of India to work in warehouse‐
Key People • Mr. Anil K Choudhary (MD & CEO) based receipt financing services in 2007

Company Snapshot: Kalpataru Group

Headquarters Mumbai • Expansion: 40 warehousing and agriculture logistics
Capacity 200,000 MT of dry storage and 32,000 parks in 2009‐2012
parks in 2009 2012
MT of cold storage  First phase
– Plans to build 11 parks at a cost of INR 1.4 bn.
Location 4 warehouses across Rajasthan  Second phase
– 14 parks will be in Maharashtra and Madhya Pradesh
Key People
y p Mr. Ajay Munot( Director )
j y ( )
 Third Phase
Mr. Manish Mohnot ( Director)
– Cover Andhra Pradesh, Haryana and Punjab


Market has observed entry of new private players

Growing private participation
• Private players are entering the warehousing sector to capitalize on the tremendous growth opportunities
g p
• Private investment in warehousing is restricted to port areas
• The emergence of 3PL industry has led to various international players investing in developing warehousing facilities
in India
Company Investment and Partnerships
Allcargo Global Logistics
ll l b l i i
• Expansion: Planning to invest INR 3.4 bn in order to set up ten logistic parks at
Mumbai, Hyderabad, Kolkata, Bangalore, Ahmedabad, Nagpur and Delhi

Reliance Logistics Ltd (RLL)
• Expansion: It plans on setting up logistics parks in all forthcoming SEZ's namely in
p p g p g p g y
Navi Mumbai, Haryana, Jamnagar and others


•Market Overview
•Major Players
•Key Developments
y p
•Appendix


Key Developments
Date Development
25‐May ‐09 Central Warehousing Corporation plans on expanding their infrastructure in the State of Kerala. It plans
on adding an additional capacity of ~20,000 tonnes through four warehouses expected to be developed
by 2009‐10.
16‐May‐09 NCDEX initiated a warehouse receipt‐based delivery system in rubber futures. Towards this endeavour,
they entered into a partnership with Central Warehousing Corp. who will be responsible for the
examination and storage of rubber. It forwarded this plan as there are small margins in rubber trade and
requires a fast turnaround time.
5‐May‐09 The Central Board of Excise and Customs included Thiruvallur district, beyond north Chennai, as on of the
The Central Board of Excise and Customs included Thiruvallur district beyond north Chennai as on of the
destinations where export warehouses can be developed. It will benefit players as container traffic at the
Chennai port has increased substantially delaying operations and it will allow warehouses to be located
closer to customers leading to cost efficiencies.
26‐Apr‐09 Infrastructures Kerala Ltd (Inkel) plans on developing construction parks in Thiruvananthapuram, Kochi,
Thrissur and Kozhikode which will have provisions for manufacturing of building materials and
h d h k d h h ll h f f f b ld l d
warehousing. An investment of ~INR 6.6 bn is estimated.
3‐Feb‐09 Uniworld Logistics Private Limited plans on setting up their first integrated logistics park at
Irungattukottai. The project is expected to cost USD 10 mn. The facility will be equipped with an ICD,
airfreight station, bonded warehouses, customs clearance, general warehousing and a distribution
airfreight station bonded warehouses customs clearance general warehousing and a distribution
centre.


•Market Overview
•Major Players
•Key Developments
y p
•Appendix


Appendix I: Free Trade Warehousing Zones across India
Approval Area
Developer District State
Status (Hectares)
Notified J Matadee Eco Parks Private Limited Kancheepuram Tamil Nadu 40.625
Formal Balaji Infra Projects Limited (BIPL)
Balaji Infra Projects Limited (BIPL) Raigadh Maharashtra 100
Formal Chiplun Infrastructure Private Limited ‐ Maharashtra 40
Formal J. Matadee Eco Parks Pvt. Ltd. Kancheepuram Tamil Nadu 40
Formal Jafza Chennai Business Parks Private Limited Tirvallur Tamil Nadu 136.38
Formal Jhunjhunwala Vanaspati Ltd. Chandauli Uttar Pradesh 103.63
Formal Haldia Free Trade Warehousing Private Limited Haldia West Bengal 45.72
In‐principle LMJ Warehousing Private Limited Kandla Gujarat 40
In‐principle Shipco Infrastructure Private Limited (SIPL) ‐ Karnataka 120
In‐principle Arshhiya Technologies International Limited (AIL) Panvel Maharashtra 68
In‐principle Vibrant IL&FS Consortium Naigaon Maharashtra 46.94
In‐principle DLF Universal Limited Amritsar Punjab 40
In‐principle Greater Noida Integrated Warehousing Pvt. Ltd. Greater Noida Uttar Pradesh 80


Appendix II: State Wise Storage capacity of FCI, CWC and SWCs
(In Million MT)
States FCI CWC SWC Total States FCI CWC SWC Total
Andhra Pradesh 3.48 1.37 2.58 7.43 Manipur 0.02 0.00 0.00 0.02
Arunachal Pradesh 0.02 0.00 0.00 0.02 Meghalaya 0.03 0.00 0.01 0.04
Assam 0.25 0.06 0.26 0.57 Mizoram 0.02 0.00 0.00 0.02
Bihar 0.52 0.11 0.25 0.88 Nagaland 0.03 0.01 0.00 0.04
Chattisgarh 1.31 0.21 0.83 2.35 Orissa 0.68 0.32 0.42 1.42
Goa 0.01 0.05 0.00 0.06 Punjab 6.62 0.7 5.7 13.02
Gujarat 0.59 0.70 0.14 1.43 Rajasthan 0.9 0.72 0.86 2.48
Haryana 2.13 0.53 1.37 4.03 Sikkim 0.01 0.00 0.00 0.01
Himachal Pradesh 0.03 0.07 0.00 0.10 Tamil Nadu 0.75 0.60 0.65 2.00
Jammu & Kashmir 0.12 0.00 0.00 0.12 Tripura 0.04 0.02 0.00 0.06
Jharkhand 0.12 0.03 0.00 0.15 Union Territories 0.54 0.18 0.00 0.72
Karnataka 0.59 0.45 0.89 1.93 Uttar Pradesh 2.52 1.10 2.83 6.45
Kerala 0.53 0.13 0.20 0.86 Uttaranchal 0.16 0.08 0.00 0.24
Madhya Pradesh 0.56 0.56 1.17 2.29 West Bengal 1.00 0.77 0.21 1.98
Maharashtra 1.62 1.48 1.18 4.28 Total1 25.2 10.25 19.55 55.00

Storage Capacity Constructed

2001‐ 07‐08 Achieved (as of NOTE: 1 ‐ As on 01‐04‐2007
Player 02‐03 03‐04 04‐05 05‐06 06‐07
02 (target) 31.12.07)
2 ‐ Includes 0.16 mn MT's constructed for FCI
FCI 0.16
0 16 0.09
0 09 0.13
0 13 0.09
0 09 0.02
0 02 0.02
0 02 0.02
0 02 0.01
0 01 under 7 years guarantee scheme
d 7 t h
CWC 0.32 0.352 0.29 0.11 0.27 0.37 0.213 0.18 3 ‐ Includes railside warehouses under CRWC Ltd.


Appendix III: Logistics Parks Planned
Location State Number Location State Number
Ambala Haryana 2 Indore Madhya Pradesh 5
Chandigarh Punjab/Haryana 1 Nagpur Maharashtra 4
Sonepat Haryana 4 Mumbai Maharashtra 8
Jaipur Rajasthan 2 Nashik Maharashtra 1
Kanpur Uttar Pradesh 1 Ahmedabad Gujarat 1
Muzzaffarpur‐Hajpur Bihar 3 Gandhinagar Gujarat 1
Ranchi Jharkhand 1 Hyderabad Andhra Pradesh 5
Jamshedpur Jharkhand 1 Vizag Andhra Pradesh 1
Kolkata West Bengal 4 Chennai Tamil Nadu 3
Guwahati Assam 3 Bhopal
p Madhya Pradesh
y 2
Raipur Chattisgarh 1 Bangalore Karnataka 3


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