coldchainsmarketinindia2012 sample 120727102218 phpapp02

Cold Chain Market IndiaColdChainMarket India

July2012

ExecutiveSummary

MarketColdchainshavebecomeextremelycrucialfortheimprovementinthepreservationprocessofagriculturalproductioninIndia

ThemarketisexpectedtoattainaCAGRclosetoxx%toreachavaluationworthINRxxbnbytheendof20

It is going to witness strong growth in capacity creation backed by government policies Itisgoingtowitnessstronggrowthincapacitycreationbackedbygovernmentpolicies

Current&FutureScenario

Owingtotheshortfallsintheexistingcoldchaininfrastructuremassiveamountsoffoodgrain,fruitsandvegetablesgetwastedeveryyear,therebycreatingamplescopeforvendors

Privateparticipationisexpectedtoraisethestoragecapacity ofthesectorbyalargeextentGovernment has classified cold chain as infrastructure as announced in the 201112 union

Drivers&Ch ll

Drivers: GrowthinOrganizedRetail ShifttowardsHorticulturalCrops

Challenges: LackofLogisticalSupport UnevenDistributionofColdChains

Scenario Governmenthasclassifiedcoldchainas infrastructure asannouncedinthe2011 12unionbudget

Challenges

d

GrowthinProcessedFoodSector DemandfromPharmaceuticalSector ChangingConsumptionPattern

CostStructure DeficitinPowerSupply

EntryofForeignPlayersRail based ReefersTrends RailbasedReefersColdChainsFacilitiesatAirportsBackwardIntegration

MajorPlayers

2COLDCHAINMARKETININDIA2012.PPT

Competition PlayerA PlayerB PlayerCPlayerD PlayerE PlayerF

Introduction

Market OverviewMarketOverview

Current&FutureScenario

D i & Ch llDrivers&Challenges

GovernmentInitiatives

Trends

Competition

StrategicRecommendation

Appendix


Appendix

Coldchainshelptopreserveedibleproductsbymaintainingaconsistentsurroundingtemperature

Supply/Procurement Storage Transport EndcustomerTransport

xx xx xxxx xx

ColdChain Definition

Segments

Segment2Segment1

xxxx

KeyActivities

Activity2Activity1


Activities xxxx

TypesofColdStorage

ColdStores

Type1xx

Type2xx

Type3xx.

Type4xx

Type5xx

Type6xx

Type7xx


ColdChainLogisticsServices

xxxx

xx

xxColdChainLogisticsServices

ColdChainLogisticsServices

xx

xx


xx

ColdchainmarketinIndiaisgoingtowitnessstronggrowthincapacitycreationbackedbygovernmentpolicies

Cold chain is an important infrastructure forenhancing the preservation process of agricultural

ColdChainMarket Overview MarketSizeandGrowth

400

INRbnz66productivity in India

Cold chain comprises of mainly 2 activities storageconsisting of about xx% of the market share andtransportation comprising about xx5%

100

200

300X%

y6

x6z5

y5

x5z4

y4

x4z3x3z2

x2z1x1

Cold Chain market is expected to grow at about xx%CAGR from INR x bn in 20 to INR y bn in 20

The last two announcements made by Governmentof India (GoI) in the last two union budgets will

0

100

202020

y4

20

y3

20

y2

20

y1

x1

Segment BSegment A( ) gprimarily boost capacity creation Following the announcements several multinationalcorporations and PE firms have invested in cold chainservices

MarketSegmentation(2011)

X%

SegmentBSegmentA

With the actual production capacity being 10 timeshigher than the present storage capacity, Indiawitnesses huge spoilage of about xx% agriculturalproduce

X%

SegmentB

SegmentA


Close to xx% of fruits and vegetables and 5% of food grainaccounting for approximately INR 500 bn get wasted inIndia on a yearly basis

Y%

PlayersOpportunityinColdStorageFacility(1/2)

Hugescopetotapthecoldchainmarket

inIndiabyfocusingontheimprovement

infoodprocessingasonlyxx%offruits

andvegetablesinIndiagetprocessedas 70X3%

X2%

%Share

ProcessedFruits&Vegetables

a d egetab es d a get p ocessed as

comparedtoxx%inUSAandxx%inBrazil

30

40

50

60

0

10

20

X1%

CountryA CountryCCountryB

Whilexx%offruitandvegetable

productioninUSAgothroughcold

storage,onlyxx%ofitgoesthroughin

Fruits&VegetablesgoingthroughColdStorage

80Y2%

%Share

g , y g g

India

20

40

60

80


0

20Y1%

CountryA CountryB

GovernmentbackingtoboostthecapacitycreationforcoldstoragesinIndia SurfaceStorage

Surface storage accounts for majority of the coldchain services in India

d h d ld h

SurfaceStorageMarket Overview ColdStoragesDistribution

In 20, India had 5,386 cold storages with a capacityof about xx mn MT

Majority of the cold storage facilities are utilized forpotato storage and are scattered in states of UP,Uttaranchal, Maharashtra & West Bengal

8%

5%, gOver xx% cold storages are in the private sector Cold storage infrastructure is set to undergo majorrevamp with government backing

30%2%

7% 5%

5%

6%

10%

CommodityWiseDistribution

9%

5%

2%

C i 2 % f l

Co od ty se st but o

x3%x4%

x6%Commodity AC dit B 3%

3%3%

Comprise2%oftotalcoldstoragesCommodity C

Commodity DCommodity E

x5%

Others

x1%x2%

Commodity B


Others

Note:Figuresareason31st Dec,2009

NumberofColdStorageinIndia State&Productwise(1/2)

Sl.No. States Potatoes MultipurposeFruits&Vegetable

Meat&Fish

Milk&MilkProducts

OthersTotalNo.

1Andaman&NicobarIslands(UT)

xx xx xx xx xx xx Xx(UT)

2 AndhraPradesh xx xx xx xx xx xx xx

3 ArunachalPradesh xx xx xx xx xx xx xx

4 Assam xx xx xx xx xx xx xx

5 Bih5 Bihar xx xx xx xx xx xx xx

6 Chandigarh(UT) xx xx xx xx xx xx xx

7 Chhatisgarh xx xx xx xx xx xx xx

8 Delhi xx xx xx xx xx xx xx

9 Gujarat xx xx xx xx xx xx xx

10 Goa xx xx xx xx xx xx xx

11 Haryana xx xx xx xx xx xx xx

12 HimachalPradesh xx xx xx xx xx xx xx

13 Jammu&Kashmir xx xx xx xx xx xx xx

14 Jharkhand xx xx xx xx xx xx xx

15 Kerala xx xx xx xx xx xx xx

16 Karnataka xx xx xx xx xx xx xx


Note:Figuresareason31st Dec,2009

CurrentRankingsofIndiasFoodProductionw.r.tGlobalScenario

c

t

i

o

n

(

M

T

)

xxMT

xxMT

Food2

India,holdingalargefoodbasketforglobalconsumptioncreateshugedemandforcold

F

o

o

d

P

r

o

d

u

c

Food1chainInorderto

sustaintheproductiontrend

xxMT

Food3

Rank1 2 3

xx

Indias positionIndia sposition

inperishablefood

production

incomparison

xx

xx


withworld xx

Newplayersarenowventuringintothemoreprofitablerefrigeratedtransportservices Refrigerated

Transport

Refrigerated transport involves usage of refrigeratedvehicles for transportation of goods

RefrigeratedTransportMarket Overview RefrigeratedTransportProcess

Procurement

Key products that move through reefers include Product A Product B Product C Product D

Grading/Sorting/

Precooling/ Product D Product E Product F

In terms of volume, current reefer transportationbusiness is about xx mn MT and is expected to reach

g/Packing

Refrigerated Transportpxx mn MT within xx years

Refrigerated transport offers the largest margins incold chain logistics At least xx companies are offering refrigerated transport

i i I di

RefrigeratedTransport

ColdStoragesservices in India

Key players in this segment include Player A Player B Player C

DomesticSupply Exports


Player C

MajorDealsinColdChainMarketinIndia(20092012)

Date Target Investor/Buyer StakeDealsize(INRmn)

Dealtype

Jun 20 Company A Company B xx xx xxJun20 CompanyA CompanyB xx xx xx

Jun20 CompanyC CompanyD xx xx xx

Feb20 CompanyE CompanyF xx xx xx

Dec20 CompanyG CompanyH xx xx xx

Dec20 CompanyI CompanyJ xx xx xx

Mar20 CompanyK CompanyL xx xx xx

Aug20 CompanyM CompanyN xx xx xx

Jul20 CompanyO CompanyP xx xx xx


JV JointVenture;PE PrivateEquity;M&A Mergers&Acquisitions

FocusonInvestments

InvestmentofINRxxbnisexpectedby20 tosetup

bottling plants and cold chain infrastructure in IndiaCompanyX

bottlingplantsandcoldchaininfrastructureinIndia

Planningtobuildcoldchainsatitsexistingplantsinxxandinxxtoincreasexx

ConstructionwasplannedtobecompletedbyMayCompanyY

p p y y20

Enteredintothecoldchainconsultancysegmentin

Indiain20 withplanstodealwithissuesofstorage,

transportationanddeliveryofperishableproductsCompanyZ


Drivers&Challenges Summary

Drivers

G th i O i d R t il

Challenges

LackofLogisticalSupport

GrowthinOrganizedRetail

ShifttowardsHorticulturalCrops

UnevenDistributionofColdchains

CostStructure

GrowthinProcessedFoodSector

DemandfromPharmaceuticalSector

DeficitinPowerSupply

ChangingConsumptionPattern


GrowthinorganizedretailhascreatedademandforcoldchainsinIndia

Finding 1

GrowthinOrganizedRetail Impact

Finding1

Finding2

Finding3

Finding4

GrowthinOrganizedRetail

10

12 x2

INRtn

xx

2

4

6

8

x1


020 20e

Shifttowardshorticulturalcropsbyfarmerstoevaderiskbooststhedemandforcoldchain

Finding 1

ShiftTowardsHorticulturalCrops Impact

Finding 2

Finding 3

Subfinding

GrowthinHorticulturalCrops

250 25

x5x43

Area (in mn hectare)

150

200

x4x3x2x1

Production(inMT)

Area(inmnhectare)

0

50

100

0


0 02020202020

Foodprocessingsectoristhemajortargetsegmentforcoldchainmarket

Finding 1

GrowthinProcessedFoodSector(1/2) Impact

Finding 1

Finding 2

Finding 3

GrowthinFoodProcessingSector

INRtn

6

8

10 xx% x5x4

x3x2

x1

0

2

4

2020202020


20e20e20e20e20

Foodprocessingsectorisexpectedtoshowhugegrowthineachofitssegments

GrowthinProcessedFoodSector(2/2) Impact

Fruit & Vegetables DairyFruit&Vegetables

400

600

INRbn

x1%x3

Dairy

4 000

6,000

INRbn

x2% y3

0

200

400

20e20

x2

20

x1

0

2,000

4,000

20e20

y2

20

y1

20 e2020 20 e2020

Snack&readytoeatfoods

INRbn

MarineProducts

INRbn

200

400

600x3%

z3

z2 200

400

600

x4% m3

m2m1


020 20e20

z10

20e2020

m1

RisingdemandforcoldstorageinpharmaceuticalsectorispushingthegrowthincoldchainmarketinIndia

Finding1

Finding 2

DemandfromPharmaceuticalSector Impact

Finding2

Finding3

Subfinding1Subfinding 2Sub finding2

100

INRbn

x% x7

GrowthinVaccineMarket GrowthofPharmaceuticalMarket

INRbn

2 500 y2

20

40

60

80

100 x% x7x6

x5x4x3x2

x1

2.500

2.000

1.500

1.000

500

y%y2

y1


0

20

20e20e20e20e20e20e20e

500

020e20

ChangingconsumptionpatternisexpectedtocreatehugedemandforcoldstorageinIndia

Finding 1

Finding 2

ChangingConsumptionPattern ImpactSalesofPackagedFood(20)

g

Finding 3

Subfinding 1Subfinding 2

x4%

x1%

Subfinding 3Finding 4 x2%

x3%

WestNorth

SouthEastandNortheast

WestNorth


Higheroperatingcostsmakesettingupcoldstoragesdifficultandunviable

Finding 1

CostStructure Impact

Finding1

Finding2

Finding3

Finding 4 Finding4

OperatingCostperCubicmeterperyear ShareofEnergyExpenseofTotalColdStorageExpense

80

100

INR

x1

p g p p y

25

30

%Sharey1%

gy p g p

20

40

60x2

5

10

15

20

y2%


0WesternCountriesIndia

0WesternCountriesIndia

Powershortageisexpectedtoposechallengesforthedevelopmentofthethrivingcoldchainmarket

Finding1

Finding 2

DeficitinPowerSupply Impact

Finding2

Subfinding1Finding3

Subfinding 2Sub finding2

FuturePowerDemandSupplyScenario DemandSupplyGap~xx%

y1

y323%

x3

45%y2

x2

Base

Peak

GenerationAverage Energy Demand

600800Energy (BU)

2007 2012e 2017e

46%

Supply

y1

74%

26%

Demand

x1

59%41%

Supply

77%

Demand

55%

Supply

y2

76%24%

Demand

54%0

200400

XIXVIIIVIIVI


Trends Summary

BackwardIntegration Entryofforeignplayers

KeyTrends

ColdChainsFacilitiesatAirport RailbasedReefers


Themarketisdominatedbytheprivatesectorwithminimalpresenceofthepublicsector

z%y% InvestmentandgrowthopportunityforcoldchainishugeasitisstillnotyetdevelopedinIndia

Competition Overview SectorWiseSplit SurfaceStorage

InvestmentshavebeenannouncedbyReliance,Bharti,ITC,Godrej,Tata,AdityaBirlaGroupandFutureGrouptoofferareadymarketforthirdpartycoldchainlogisticsplayers

Coldchaincapacityintheorganizedsectorwasaround60,000tonnesin2009

x%

Capacityadditions&investmentsinnext3yearswithexistingplayersexpandingcapacitiesaswellasnewplayers

Highlycapitalintensiveindustrywithanaveragepaybackperiodofaround5years

Distribution offers the largest margins in cold chain Distributionoffersthelargestmarginsincoldchainlogistics Atleast50companiesareofferingrefrigeratedtransportservicesinIndia

3typesofcompaniesoperatesincoldstorageand

SectorC

SectorB

SectorA

transportationsectornamely,IntegratedCompanies,StandaloneCompaniesand3PLServiceProviders

MajorcompanieshaveshowninterestincoldchainmarketinIndia,includingSnowmanFrozenFoods,Fresh and Healthy Enterprises and Apollo Everest

Morethan90%ofthecoldstoragecapacityinIndiaisownedandmaintainedbytheprivatesector

GovernmentofIndiaencouragesandsupportstheparticipationofprivateplayerstodevelopthehighlycapitalintensivecoldchainsector

bli i l i d i l i i i i


FreshandHealthyEnterprisesandApolloEverestCoolSolutions

Publicsectorisalsogearingupandactivelyparticipatinginthedevelopmentofcoldchainsolutions

MajorPublicCompanies Summary

1 800

2,000

2,200

NetProfit/Loss

SizeoftheBubblerepresentsMarketCapitalizationinINRmn

1,200

1,400

1,600

1,800

m1

600

800

1,000

,

0

200

400

m3m2

200

1,000 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,000 13,000

Totalincome

PlayerCPlayerBPlayerA


Note:AllfiguresareinINRmnandarebasedonthelatestfinancialsavailable

Public:DomesticCompany PlayerA(1/3)

CompanyInformation OfficesandCentres India

CorporateAddress

l

TelNo.

FaxNo.

Website

YearofIncorporation

Products and Services

HeadOffice

WestBengalp

TickerSymbol

StockExchange

KeyPeople

ProductsandServices

Category Products/Services

ColdChainLogistics

N D i tiName Designation


i i l S h K i


FinancialSnapshot KeyRatios

Particularsyoychange(201110)

2011 2010 2009 2008

ProfitabilityRatiosOperatingMargin 5.61 14.64% 9.03% 7.88% 16.85%

NetProfit/LossTotalIncome

49 266.571.0

60

80

6

8

INRmnINRmn

NetMargin 0.55 1.94% 1.39% 1.03% 9.07%ProfitBeforeTaxMargin 0.53 2.98% 2.44% 1.91% 11.13%ReturnonEquity 0.13 0.78% 0.65% 0.65% 6.44%ReturnonCapitalEmployed 1.96 4.52% 2.57% 3.12% 7.48%ReturnonWorkingCapital 0.57 1.24% 0.67% 0.72% 8.13%ReturnonAssets 0.15 0.54% 0.38% 0.40% 3.77%

42.849.2

0

20

40

60

0

2

4

6

2011201020092008FinancialSummary

ThecompanyearnedanetprofitofINRxxmninFY2011,ascomparedtonetprofitofINRxxmninFY2010

ThecompanyreportedtotalincomeofINRxxmninFY2011,registering a decrease of xx% over FY 2010

ReturnonFixedAssets 0.79 3.08% 2.28% 2.05% 17.56%

CostRatiosOperatingcosts(%ofSales) 5.70 85.21% 90.91% 92.12% 83.15%Administrationcosts(%ofSales)

1.29 2.56% 3.85% 2.30% 2.19%

Interestcosts(%ofSales) 5.37 11.16% 5.79% 5.25% 5.31%registeringadecreaseofxx%overFY2010

Thecompanyearnedanoperatingmarginofxx%inFY2011,anincreaseofxxpercentagepointsoverFY2010

ThecompanyreporteddebttoequityratioofxxinFY2011,adecreaseofxx%overFY2010

Interest costs (% of Sales)

LiquidityRatiosCurrentRatio 77.19% 5.21 22.84 20.92 8.23CashRatio 73.35% 3.47 13.00 8.85 4.96

LeverageRatiosDebttoEquityRatio 33.83% 0.46 0.69 0.65 0.71D b C i l R iKeyFinancialPerformanceIndicators

Indicators Value(09/07/2012)MarketCapitalization(INRmn) XX

TotalEnterpriseValue(INRmn) 129.5

( )

DebttoCapitalRatio 35.04% 0.26 0.40 0.38 0.40InterestCoverageRatio 15.62% 1.33 1.57 1.50 3.17

EfficiencyRatiosFixedAssetTurnover 3.78% 1.57 1.64 1.99 1.94AssetTurnover 0.18% 0.27 0.27 0.39 0.42CurrentAssetTurnover 11.72% 0.51 0.46 0.66 0.79


EPS(INR) 0.29

PERatio(Absolute)10th July,2012 26.62WorkingCapitalTurnover 32.20% 0.63 0.48 0.70 0.90CapitalEmployedTurnover 13.97% 0.40 0.46 0.64 0.71

Improved Decline


KeyBusinessSegments KeyGeographicSegments

100%

SegmentA

100%

India

100%

Indiaistheonlygeographicsegmentinwhichthecompanyhasbeenoperatingforthelast

fiveyears

100%

50%

100% SegmentAistheonlybusinesssegmentinwhichthecompanyhasbeenoperatingforthelast

fiveyears

100%

50%

100%

BusinessHighlights

0%2011

0%2011

Description News

Overview

NameChange


MajorPrivateCompanies Summary

SizeoftheBubblerepresentsTotalAssetsin50

60

NetProfit/Loss

INRmn

20

30

40

50

t2

10

0

10

t4t3

50

40

30

20

t1

60

50

0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 2,600 2,800 3,000 3,200

Totalincome

Player GPlayer FPlayer EPlayer D


Note:AllfiguresareinINRmnandarebasedonthelatestfinancialsavailable

PlayerGPlayerFPlayerEPlayerD

Private:DomesticCompany PlayerB(1/3)

CompanyInformation OfficesandCentres India

CorporateAddress

TelNo.

FaxNo.

Products and Services

Website

YearofIncorporationMumbai HeadOffice

KeyPeople

ProductsandServices

Category Products/Services

AirFreightandLogisticsN D i ti

g gName Designation


i i l S h K i


FinancialSnapshot KeyRatios

Particularsyoychange(201110)

2011 2010 2009 2008

ProfitabilityRatiosOperatingMargin 91.41 180.87% 89.46% 87.23% 88.08%

TotalIncome NetProfit/Loss

2938.5

2500

3000 10

INRmn INRmn

NetMargin 0.65 1.28% 1.93% 0.13% 2.16%ProfitBeforeTaxMargin 0.39 0.11% 0.50% 0.48% 3.99%ReturnonEquity 0.25 5.69% 5.94% 0.97% 12.23%ReturnonCapitalEmployed 248.97 443.85% 194.88% 436.01% 149.64%ReturnonWorkingCapital 1.24 5.80% 7.04% 1.35% 7.00%ReturnonAssets 0.68 1.97% 2.65% 0.38% 12.23%

2033.7

500

1000

1500

2000

2500

30

20

10

01936.7

1129.5

ReturnonFixedAssets 1.42 3.12% 4.54% 0.33% 5.21%

CostRatiosOperatingcosts(%ofSales) 89.61 82.09% 7.52% 12.61% 11.71%Administrationcosts(%ofSales)

0.91 8.43% 7.52% 9.08% 7.46%

Interest costs (% of Sales) 0.42 1.78% 2.21% 1.26% 0.14%FinancialSummary

0

500

40

30

20112009 20102008

Interestcosts(%ofSales) % % % %

LiquidityRatiosCurrentRatio 5.41% 1.91 2.02 0.82 0.60CashRatio 48.80% 0.11 0.21 0.01 0.02

LeverageRatiosDebttoEquityRatio 52.28% 1.89 1.24 1.48 0.00

b i l i

ThecompanyincurredanetlossofINRxxmninFY2011,ascomparedtonetlossofINRxxmninFY2010

ThecompanyreportedtotalincomeofINRxxmninFY2011,registeringanincreaseofxx%overFY2010

DebttoCapitalRatio 18.09% 0.65 0.55 0.60 0.00InterestCoverageRatio 143.76% 102.23 41.94 69.43 640.18

EfficiencyRatiosFixedAssetTurnover 6.65% 2.43 2.28 2.64 2.40AssetTurnover 15.06% 1.53 1.33 3.07 5.63CurrentAssetTurnover 20.56% 2.15 1.78 2.31 2.19

Thecompanyearnedanoperatingmarginofxx%inFY2011,anincreaseofxxpercentagepointsoverFY2010

ThecompanyreporteddebttoequityratioofxxinFY2011,anincreaseofxx%overFY2010


WorkingCapitalTurnover 27.71% 4.51 3.53 10.79 3.23CapitalEmployedTurnover 48.37% 4.42 2.98 7.73 5.63

Improved Decline


BusinessHighlights

Description News

Overview

Plans

FundsFunds


StrategicRecommendation(1/2)

Anintegratedcoldchaininfrastructurecoveringmajorproductionareas,processingunitsanddistributioncentersshouldincludethefollowing:

xx xx

Withintegratedcoldchainsandsupplychainmanagement,anamountofINRxxbncanbesavedeveryyear

bycuttingxx%wastageofperishablehorticultureproduce,besidesgeneratingfurtherexportrevenueofoverINRxxbn


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coldchainsmarketinindia2012 sample 120727102218 phpapp02

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