7

A U G 1 2

2 0

A U G 1 2

Logistics Track
Research4India Fortnightly update on Logistics Industry

In The Spotlight
Dempo buys majority stake in shipyard Modest Infrastructure for ` 7bn

Contents

News of the fortnight Goa-based Dempo Group, which in 2009 sold its core mining business to Vedanta Resources and ventured into shipping, has acquired a controlling stake in Gujarat's shipyard company Modest Infrastructure in a transaction valued at over ` 7bn. The acquisition will catapult Demp Limited to making barges for iron ore exports from Goa, into the national shipyard and ship repair business and pitch it with larger companies like L&T, ABG Shipyard, according to people familiar of the development. Dempo's transaction was done through the group's unlisted subsidiary Dempo Shipbuilding and Engineering. A recent study by industry body Assocham said that the Indian shipbuilding industry, which is growing at 8% every year, will need to be expanded to cater to cargo traffic of 1,230mn tonnes by 2015 and 3,000mn tonnes by 2020. Currently, the traffic at major ports in India is about 600mn tonnes. The ` 7.5bn, 70-year-old Dempo Group has interests in iron ore mining, calcined petroleum coke, pig iron, and shipbuilding and repair. The closely-held group has two listed companies, Goa Carbon and Hindustan Foods. In 2009, the group sold its mining business to Sesa Goa, part of Vedanta Resources, for ` 17.5bn. It focused on shipbuilding, by making barges used by ore exporters from Goa, the largest ore exporter of India.

Investment Activity

News Update

Global News Update

Stock Market Updates

Peer Benchmarking

10

About Four-S Services

11

About Research4India

Research4India is the research services arm of Four-S Services Pvt Ltd. Here we provide regular research reports on key sectors of the Indian economy, and large unlisted companies in these sectors. These reports will be available on our upcoming site www.research4india.com, as well as from leading international research sellers like Thomson Reuters, Bloomberg, Research and Markets, CapitalIQ etc.

Research4India is the research services arm of Four-S Services Pvt Ltd, a leading provider of high-end research, financial consulting and Investment banking services. For subscription / custom queries, please contact Seema Shukla at seema@four-s.com

Logistics Track
Investment Activity
PE Deals in 2012 Date 6-Jan 23-Feb 23-Feb 28-Mar 30-Mar 26-Apr 19-Apr 29-Jun 25-Jul 19-Aug Investor General Atlantic IDFC Private Equity Target Foursee Infrastructure Equipments Ltd. StarAgri Warehousing & Collateral Mgmt Chhotu.in (Santa Claus Couriers) Spear Logistics e2E Rail VRL Logistics TVS Logistics Reverse Logistics Stake (%) NA NA Amount ($ mn) 20.8 30.0 Strategy Growth Growth Angel Growth Early Late Growth Growth Early Growth

Global Super Angels NA NA Ambit Pragma NA 1.7 VenturEast, Zephyr Peacock NA 6.0 New Silk Route NA 33.4 KKR, Goldman Sachs 20.0 55.0 Vertex Venture Holdings, KPCB, NA NA Sherpalo Ventures Ambit Pragma Mehta Frozen Foods Carriers 74.0 NA GTI Capital Brattle Foods NA NA The space saw 10 deals till date raising a total disclosed amount of $185.1mn.

Mergers & Acquisitions in 2012 Date 1-Feb 20-Apr 15-May 18-Jul 18-Jul 16-Aug Investor Oil Field Warehousing & Services DHL Express (India) Pvt Ltd DTDC SG Holdings SG Holdings Dempo Group Target Raamns Shipping & Logistics DHL Lemuir Logistics Pvt Ltd Eurostar Express Sindhu Cargo Services Sunlog Services Modest Infrastructure Stake (%) NA 24.0 NA 40.0 40.0 NA Amount ($ mn) NA NA NA NA* NA* 140.0 Business Logistics Services Logistics Services Courier Services Logistics Services Logistics Services 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

Research4India

Logistics Track
News Update
Future Supply Chain set to raise `1bn in second round funding Future groups consumer logistics company Future Supply Chain Solutions will be raising ` 1bn this year through a second round of private equity placement. This will form part of the funds needed to double the warehousing capacity of the company. According to Anshuman Singh, MD & CEO, Future groups consumer logistics company Future Supply Chain Solutions will be raising ` 1bn this year through a second round of private equity placement. This will form part of the funds needed to double the warehousing capacity of the company. The company had earlier in 2009 received $30mn from Fung Capital, the private equity arm of Hong Kong-based Li and Fung group, diluting 26% stake in the company. This time, it would either look for a new equity partner or raise additional funds from the existing partner. The funds will be utilised to double the warehousing capacity to 10mn sq ft in next two years. The company has made a total investment of ` 3bn since its inception and in the past two years it has added a storage space of two million sq ft. Expanding storage space was necessitated after the company started servicing external clients three years back. Currently, 70% of the companys revenue comes from serving the group companies and the rest from external clients. By the end of this year the revenue share from the external clients are expected to go up to 50% as the company has been witnessing good growth in the business in the past three years. The company clocked ` 4bn revenue last year hopes a 50% growth in the topline this fiscal. New CFS to Distriparks add muscle to Gateway 2012-13, Gateway Distriparks achieved a turnover of ` 558mn (against ` 610mn in the same period last year) and a net profit of ` 180mn (` 223mn) on standalone basis. The company is expected to ramp up its CFS capacity to 560,000 TEUs in the current financial year with the resumption of full operations at Punjab Conware CFS. Its current capacity stands at 516,000 TEUs. Construction of the building of Punjab Conware CFS has begun and partial operations from the facility will commence by November-end. The facility will be fully operational towards the year-end. The Kochi CFS has also commenced partial operations (on wheel operations) and is likely to commence full-fledged operations on completion of the construction of warehouse, which is expected to happen next month. Gateway Distriparks is broadly divided into three CFS, container rail (through Gateway Rail Freight Ltd) and cold storage (Snowman Logistics). The company operates container freight stations at Navi Mumbai, Chennai, Visakhapatnam and (soon in) Kochi. It also operates Inland Container Depots (ICD) at Garhi (Haryana), Sahnewal (Ludhiana), Kalamboli (Mumbai) and a new ICD at Asaoti (Fardibad, to be operational in the current year). GTI Capital invests in Brattle Foods Financial services and investment firm GTI Capital has invested in foods company Brattle Foods. Brattle and its subsidiaries are engaged in the business of contract manufacturing of food products and providing logistics solutions, including cold and ambient temperature storage and transport. The investment will be utilised in expanding Brattle's facilities. The amount of investment was not disclosed. Almost three years back, Brattle Foods had announced an investment of ` 8bn to set up three manufacturing units for dairy, meat and processing of fruits and vegetables. At that time, the company had said it was allocating `

Despite the dip in net profit in the first quarter of the current year, Gateway Distriparks expects a better year due to the commissioning of two new container freight stations at Navi Mumbai and Kochi. For the first quarter of Research4India

Logistics Track
3bn for setting up a dairy plant, and ` 1bn for its vegetables and fruit processing business. But the majority investment of ` 4bn had been allocated for the company's meat processing division. Japan-aided DMIC likely to bring ` 750bn investment to UP The Delhi-Mumbai Industrial Corridor (DMIC) project is estimated to facilitate investments of ` 750bn in the Greater Noida investment zone of Uttar Pradesh. The zone, comprising DadriNoida-Ghaziabad, would attract food, electronics, auto, IT and other sunrise industries that is likely to create 1.2mn job opportunities. The Centre would also spend ` 30bn in the region under the DMIC. The muchawaited industrial corridor project is a ` 5tn mega infrastructure project with financial and technical aid from Japan. Seven investment centres and 13 industrial areas have been identified along the upcoming industrial corridor, of which an investment centre (Greater Noida) and an industrial area (MeerutMuzaffarnagar) would fall in UP. On either side of these centres, a 150-200 km area has been identified as dedicated freight corridor (DFC). These would be self-sustaining industrial townships with world-class infrastructure viz road, rail/air connectivity, quality social infrastructure and provide a competitive business environment. Indian Railways intends to develop Multi-modal Logistics Parks (MMLP) through the public-private partnership (PPP) route along the eastern DFC at strategic locations. An MMLP was also proposed at Kanpur. JNPT likely to scrap deal with DBC Port The country's largest container port, Jawaharlal Nehru Port Trust (JNPT), is likely to scrap a contract with Arvind Dubash-owned DBC Port Logistics, formerly Speedy Multimodes, after JNPT's auditors found discrepancies in the rates charged by the company. Speedy Multimodes had won the licence in 2007 to operate the container freight station (CFS) at JNPT, spread across 68 acres, and are the largest CFS facility at the port. The terms and conditions of the Research4India agreement said that the rates at the CFS were to be governed by the ones approved by the Tariff Authority for Major Ports (TAMP). But after complaints raised by board members and customers that DBC was charging higher rates, JNPT had appointed a chartered accountant to look into the allegations. Later in May, the auditors submitted their report which said that the rates charged were higher than those mandated by TAMP. DBC Ports Logistics defended itself, saying it didn't overcharge customers, and concerns were raised mainly by competitors since DBC's rates were much lesser than others. It has also warned of strong legal action if their contract is terminated. Incidentally, DBC has been seeking a revision in its rates at the CFS facility and had requested for a massive 180% hike in rates. 7 firms keen to develop proposed ship repair unit Kochi ports

As many as seven firms have responded to a proposal by the Kochi Port to develop a ship repair facility on a PPP basis within the port. Cochin Shipyard Ltd and the Bahrain-based Sultan Marine International are among the firms that have evinced interest at the Expression of Interest floated by the port for the public-private partnership project. Encouraged by the response, the port had invited global bids in May in a two cover system for Development and Operation of an international ship repair facility with private sector participation. According to the senior official, the port will position its existing ship repair facility as a modern ship repair yard with additional facilities for ship building. The idea is to develop the existing facility on par with international standards for maintenance, repair and overhaul of small and medium size vessels by ensuring fast turnaround, high quality and excellent service. Figures from the port show that around 1,000 ships call at the port every year . The number will nearly double over the next three years, brightening the prospects for the ship repair facility. Chennai Port Trust trading companies woos Coimbatore

Logistics Track
The Chennai Port Trust (ChPT), which is getting into containerisation in a big way, will set up a marketing cell and a help desk in the city to increase its share in shipments from the region. It is also ready to offer volume-based discounts, storage and stevedoring (loading and unloading) facilities for exporters and importers in the region. With several private container train operators commencing container train services from Chennai to other parts of the state, the export-import trade in Coimbatore can get easier. About 350 containers of cargo are sent to the Chennai Port every month from Coimbatore. This can go up to 1,000 tonnes according to senior official. More than 500 items are being exported from Coimbatore and there are over 300 registered exporters. The Chennai Port was the major export terminal for the region till the early 90s. However, it lost out its prime position to other ports over a period of time. But with the ChPT shedding dirty and break bulk cargo, it is now trying to win back patronage from the trade and industry in the region. Railways wants FDI for industry corridors In a move that seeks to overturn the Railways policy against foreign direct investment in its core business of laying tracks and running trains, the Railways Ministry has proposed that the Cabinet allow FDI to build dedicated lines for industries. Accepting that its current plans to boost connectivity to sectors such as mining and industry have not succeeded, the ministry has forwarded its proposal for FDI in a cabinet note sent to the committee on infrastructure headed by Prime Minister Manmohan Singh. Foreign direct investment in its core areas has been an absolute no-no for the fourth largest rail network in the world despite a huge shortage of funds to finance expansion. The Railways allows FDI only in the manufacture of components by private companies that supply to the network. Between 2000 and 2012, the total FDI into the Railways has been ` 13.5bn according to the Department of Industrial Policy and Promotion. Under the model, the concessionaire would build lines and maintain them while the railways will have joint equal Research4India right to use the infrastructure to ferry goods. Rail Bhawan expects the project concession period will run for 30 years with the return on equity linked to the interest rate on 10-year GSecs. Railway freight traffic to grow 5.2% this fiscal: CMIE Railway freight traffic is likely to clock a 5.2% growth this fiscal on higher demand from coal and iron ore meant for domestic steel plants, according to a forecast by Centre for Monitoring Indian Economy (CMIE). In 2012-13, the revenue-earning freight traffic of the Indian Railways is projected to rise by 5.2%. About 1,020mn tonnes of commodities are likely to be transported during the year. The freight traffic during the June quarter increased 4.8% compared to the same period year ago. Noting that the growth will be supported by coal and iron ore meant for domestic steel plants, the report said country's coal imports are expected to rise 28.3% to 134.4mn, which will create a need for transporting. There is a strong demand for coal from the power and steel sectors. Since the domestic output is not sufficient to meet the demand of the power sector, coal is imported.

Global News Update

Global shipping Q2 volumes hit by Europe's economic crisis Global shipping volumes fell in the second quarter of the year as Europe's economic difficulties continued to act as a burden on demand, according to the latest report from Container Trade Statistics (CTS). The data shows that exports from Europe (in terms of TEU) grew three per cent in the second quarter of 2012, a marked slowdown from the revised first quarter figure of 9.7%, while imports to Europe fell 5.3% in the second quarter. Asia's weaker economic performance in the second quarter (compared with a stronger first quarter) is reflected in the figures. Initial data shows imports to the region fell 4.2% in the second quarter, compared with growth of 5.8% in the first quarter. Meanwhile export volumes

Logistics Track
increased just 2.8%, according to Transport Intelligence. Container exports from North America decreased 6.5% in the second quarter, while exports in the first quarter of the year were almost flat at minus -0.6%. However, import figures indicate a much more positive picture, up 9.9% in the second quarter, compared with growth of 3.7% in the first quarter. Negative export growth was reported in South America, the Middle East and Africa. In terms of imports, growth rates slowed considerably, however, they remained in positive territory. As the global economic recovery remains weak and uncertain, it seems the second half of the year is likely to remain tough for shippers. C.H. Robinson boosts buyback program by 10mn shares C.H. Robinson Worldwide Inc. (CHRW) had added 10mn shares to its share-repurchase program as the logistics company looks to boost shareholder return. The latest authorization represents about 6.2% of shares outstanding as of Friday. The company had about 2.5mn shares remaining under its prior authorization. C.H. Robinson has posted improved results since the recession, with particular strength seen in its key trucking business. Last month, the company reported its second-quarter earnings increased 3.2% as revenue in its sourcing and payment services segments rose, though sales in its key trucking segment slipped slightly. Shares were up by three cents at $54.26 after hours Friday. The stock has fallen 10% over the past three months. Boardwalk to buy PL Midstream from PL Logistics for $625mn Boardwalk Pipeline Partners has formed a joint venture (JV) with an affiliate of its general partner, which entered into an agreement to acquire PL Midstream from PL Logistics, a portfolio company of Lindsay Goldberg for $625mn in cash. With this acquisition, the company will enter into the natural gas liquids market with well-run and strategically-located assets. BPHC will own 67% of the joint venture's equity, while remaining 33% will be owned by Boardwalk. They are likely to contribute about $268mn and $132mn, respectively, to fund the acquisition. The deal is expected to close in late September or early October. PL Midstream provides salt-dome storage, pipeline transportation, fractionation and brine supply services for producers and consumers of petrochemicals, natural gas liquids (NGLs) and natural gas through two hubs in southern Louisiana. Concord's Cardinal Logistics acquired by NY private equity firm Cardinal Logistics Management Inc. has been bought by Centerbridge Partners, a New Yorkbased private-equity firm. Financial terms of the acquisition were not disclosed. Cardinal, which is based in Concord, specializes in shipping, warehousing and distribution. The 15year-old companys clients include AutoZone Inc. and Office Depot Inc. Cardinal's management will remain intact, according to a spokeswoman. Centerbridge Partners manages approximately $ 20bn in capital. Tesoro buys BP refinery, California for $2.5bn logistics in

BP has agreed to sell its 266,000 bpd Carson refinery in California and related logistics and marketing assets in the region to Tesoro for $2.5bn in cash. The deal value includes the estimated value of hydrocarbon inventories and subject to post-closing adjustments. The company noted that the sale is part of a previously-announced plan to reshape BPs US fuels business. Subject to regulatory and other approvals, Tesoro will acquire the Los Angelesarea refinery as well as the associated logistics network of pipelines and storage terminals and the ARCO-branded retail marketing network in Southern California, Arizona and Nevada. The sale also includes BP's interests in associated cogeneration and coke calcining operations. The sale is expected to close before mid-2013.

Research4India

Logistics Track
XPO Logistics $8mn acquires Kelron ops for of the gas transporter. Navigator has offices in New York and London, and delivers gas to mostly developing countries. Ross Jr. is ranked by Forbes as the 206th wealthiest person in the country. Toyota to set up KES 1.28bn logistics centre in Nairobi It is reported that auto maker Toyota is setting up a KES 1.28bn logistics hub in Nairobi that will be used by 13 countries in sub Saharan Africa to source vehicles directly from Japan. Through its trading and investment arm Toyota Tsusho Corporation, the firm signed a memorandum of understanding with the Vision 2030 delivery board that will facilitate the establishment of the centre and support collaborations with the Kenyan government in the automobile, power and energy, petroleum and mineral resource, environmental infrastructure, agricultural industrialization fields. Companies in the Sub Saharan region will be saved from importing vehicles directly from Japan with the establishment of the facility. It is expected that the center will reduce their cost and other importation inconveniences experienced because of the long distance. Private sector invests $33.4bn in transportation infrastructure - Abdib Brazil Between 2003 and 2011, the private sector invested 67.6bn reais ($33.3bn) in transportation and logistics projects in Brazil, making up 40% of all investments throughout the nine year period, infrastructure and basic industries association (Abdib) said in a release. Throughout the period, a total of 1.04tn reais was invested in overall infrastructure projects. Of this, 169bn reais, being 16.3%, was dedicated to transportation and logistics work which included highways, railways, metros, ports, airports, and waterways. A total of 60% of this came from the public sector and the rest from the private sector. In recent years, overall infrastructure project investments have seen slight increases. A total of 173bn reais was 7

XPO Logistics on Monday, Aug. 6, announced its acquisition of the freight brokerage operations of Kelron Logistics, a Canadian nonasset thirdparty logistics business, for $8mn in cash, excluding working capital adjustments. Kelron Logistics serves more than 1,000 customers through locations in Toronto, Vancouver, Montreal and Cleveland. Kelron Logistics generated trailing 12 months revenue of about $100mn as of June 30. XPO Logistics is a leading, non-asset based, third-party logistics provider in North America. Unified Logistics acquires McTyre Trucking Unified Logistics Holdings has acquired McTyre Trucking Company, Inc., based in Orlando, Florida, USA. Headquartered in Bethesda, Maryland, Unified Logistics is a specialized logistics company focused primarily on the handling, transport and delivery of hard-todeliver freight, particularly highly urgent and/or over-dimensional freight. McTyre, founded in 1947, primarily provides engineered transport of large structures (bridge steel, power grid equipment, highway and airport structures). McTyre also transports mega-heavy shipments in the nuclear and electrical power industries, including industrial machinery and processing equipment. McTyre will join other specialized rigging and hauling companies acquired by Unified since 2008, including Silk Road Transport, Silk Road Translink, Benchmark Logistics, Great Lakes Heavy Haul and Specialized Carriers. Wilbur Ross firm buys majority stake in shipping magnate WL Ross & Co., which is headed by Palm Beacher Wilbur Ross Jr., recently agreed to buy the shipping firm Navigator Holdings out of bankruptcy. The New York investment company made a deal with Lehman Brothers to purchase 4.4mn shares of Navigator Holdings for $110mn, giving Ross more than 50% ownership. WL Ross already had 3.5mn shares Research4India

Logistics Track
reported in 2011, representing a 2% uptick from the 170bn reais in 2010. Kuehne + Nagel opens new warehouse facility in NZ Kuehne + Nagel has opened a new warehouse facility in Auckland to meet the growing demand for integrated logistics services. The new site has an available space of 86,000 sq. ft., including a specifically designed 65,000 sq. ft. outdoor secure yard for the handling and storage of bulk cargo. It is the third facility managed by Kuehne + Nagel in New Zealand and complements the companys two existing facilities with 108,000 sq. ft. and 54,000 sq. ft. warehouse space. The premises are centrally located with fast access to the citys key infrastructure facilities. Germany loses out as logistics location: Experts Germany is moving further away from the top spot as a logistics location it once held in a World Bank ranking. A German trade expert warns that not enough resources are being provided for more efficient infrastructure. Germany is losing its reputation globally as a splendid logistics location, a transportation expert from the Federation of German Wholesale, Foreign Trade and Services (BGA), Gerhard Riemann said in a statement. He claimed that the German government had been giving short shrift to important traffic infrastructure projects and increased the financial burdens on haulers. He also hinted the current toll system might be expanded to include other major roads. the ranking in question now saw Germany in fourth position after Singapore, Hong Kong and Finland. He particularly complained about the government not having given the green light yet to gigaliners or super-trucks on selected roads, praising their economic and ecological advantages. Riemann maintained that not enough money was being provided to maintain or expand the current traffic infrastructure in Germany, saying there was a lack of 5bn euros ($6.16bn) annually for road transportation Research4India projects alone. The trade expert also feared that a renewed delay of Berlin's new international airport would mean irreparable image damage for the country abroad. World's oldest shipping company closes after 300 years The world's oldest shipping firm, Stephenson Clarke Shipping Ltd., has gone into liquidation after nearly 300 years of trading, becoming a casualty of the worsening global downturn. Established in 1730 in Britain, Stephenson Clarke had tried to sell its ships and cut costs in the face of crashing rates for dry bulk shipping on which it relied -- transporting cargoes such as coal, grain and iron ore. Stephenson Clarke thrived during Britain's industrial revolution, shipping coal from its home in the northeastern city of Newcastle and later diversifying to ship other commodities including grain, fertilisers and steel in northern Europe, the Mediterranean and West Africa. DHL launches online shipping portal DHL Express has launched a new Internet portal as part of its thrust to upgrade its technological platform to facilitate online shipping, the latest move geared especially towards small and medium-sized enterprises. With the new portal My DHL, customers will have greater control over password management, and will have access to a broad range of international services. Applications that can be accessed on the portal include DHL web shipping international, a solution which allows customers to create invoices, print export labels, coordinate collections, store addresses and monitor shipments. According to the senior company officials, this portal is the last step missing to offer small and medium enterprises a full proposal that will help this sector in particular. Customers are required to register at www.dhl.com/mydhl to access the service.

Logistics Track

Stock Market Update

Share Price Performance
As on 17th August 2012 Container Corporation of India Blue Dart Essar Ports Ltd. Great Eastern Shipping Shipping Corporation of India Allcargo Logistics Gateway Distriparks Arshiya International Mercator Ltd. Transport Corporation of India Aegis Logistics Sical Logistics Gati Aqua Logistics SEAMEC Ltd. Varun Shipping NSE Nifty BSE Sensex ET Logistics Index ET Shipping Index Baltic Dry Index (BDIY:IND) Market Cap (In ` mn) 123,003 47,927 41,441 39,550 25,992 17,671 14,687 7,341 4,971 4,647 4,035 3,725 3,303 3,000 2,971 2,363 Price (In `) 946.30 2,019.85 96.85 259.70 55.80 138.60 135.50 125.75 20.30 63.90 120.80 67.00 38.15 10.00 87.65 15.75 5,366.30 17,691.08 16,764.24 6,385.98 714.00 1W 0.4% 0.4% -2.1% -1.0% 3.8% -1.4% 0.0% 2.8% 7.1% 0.2% 5.0% -0.1% -1.3% 0.0% 0.9% 4.3% 0.9% 0.8% 0.3% 0.9% -7.8% Percentage Change (%) 1M 3M 6M 5.2% 8.1% -3.1% 3.6% -3.1% 14.2% 2.0% 8.1% 38.6% -0.1% 8.2% -4.3% -2.6% 2.2% -27.5% -1.7% 22.7% -2.5% -6.6% -8.5% -6.4% -3.5% -6.5% -22.5% -1.9% 6.8% -34.6% -3.6% 13.3% -11.1% -0.3% -6.8% -28.8% -0.2% -0.2% -3.4% 1.2% 14.2% -4.5% -8.7% -11.1% -16.3% 2.3% 12.7% -12.5% -2.5% -4.0% -23.2% 3.3% 10.2% -3.6% 3.4% 10.1% -3.3% 2.3% 5.3% -4.5% -1.6% -0.8% -17.8% -34.7% -37.2% -0.4% 12M -1.3% 21.4% 34.7% 8.3% -32.9% -14.8% 4.7% -3.9% -16.6% -20.0% -39.2% -15.9% -37.5% -30.8% -9.5% -20.3% 6.1% 5.1% 0.3% -5.8% -47.9%

Baltic Dry Index

Road Freight Index

Source: Baltic Exchange

Source: Transport Corporation of India

Research4India

Logistics Track
Financial Benchmarking
Quarterly Results Q1 FY 13, ending 30th June, 2012
Company Q1 FY12 Aegis Logistics Shipping Corp. of Ind. Mercator Lines CONCOR Allcargo GE Shipping TCI Blue Dart Arshiya Gateway Distri. Sical Logistics Varun Shipping Patel Integrated Aqua Logistics SEAMEC Ltd Shreyas Shipping Gati Essar Ports 8,304 9,727 7,992 9,490 8,541 7,280 4,159 3,721 2,226 1,978 2,058 1,327 1,130 1,107 460 319 2,253 70 Revenue Q1 FY13 14,843 12,200 10,952 10,369 9,752 8,070 4,574 4,317 3,418 2,320 1,753 1,538 1,191 773 737 462 159 84 YoY 79% 25% 37% 9% 14% 11% 10% 16% 54% 17% -15% 16% 5% -30% 60% 45% -93% 20% Q1 FY12 274 1,181 1,513 2,597 1,022 3,183 344 510 539 635 202 345 47 91 127 21 241 33 EBITDA Q1 FY13 (244) 1,624 1,750 2,671 1,135 2,879 370 574 934 660 220 937 45 63 138 70 (62) 12 YoY 38% 16% 3% 11% -10% 8% 13% 73% 4% 172% -3% -31% 240% -63% Q1 FY12 161 (59) 147 2,342 664 1,626 134 340 236 334 21 (353) 12 42 86 (14) 38 (213) PAT Q1 FY13 48 (549) 171 2,451 556 1,810 136 406 346 352 14 1,452 9 15 137 43 638 (179) YoY -70% 16% 5% -16% 11% 1% 19% 47% 6% -34% -25% -64% 1593% Margins Q1 FY13 EBITDA 16% 26% 12% 36% 8% 13% 27% 28% 13% 61% 4% 8% 15% 14% NPM 0% 2% 24% 6% 22% 3% 9% 10% 15% 1% 1% 9% 402% -

Figures in Rs.`mn Annual Results - FY12

Company FY'11 Aegis Logistics Shipping Corp. of Ind. CONCOR Mercator Lines GE Shipping TCI Blue Dart Gati Essar Ports Arshiya Allcargo Gateway Distri. Sical Logistics Patel Integrated Aqua Logistics Varun Shipping Shreyas Shipping SEAMEC Ltd 18,129 35,434 38,266 28,289 25,580 18,527 11,507 9,330 19,408 8,215 6,998 6,034 5,384 4,284 5,165 8,368 1,904 1,024

Revenue FY12 44,725 43,086 40,609 36,999 29,555 19,553 14,954 12,093 11,088 10,547 8,263 8,235 5,015 4,524 3,683 3,645 2,708 1,818 YoY 147% 22% 6% 31% 16% 6% 30% 30% -43% 28% 18% 36% -7% 6% -29% -56% 42% 78% FY'11 833 7,098 10,226 6,385 9,945 1,400 1,556 870 7,667 1,580 1,679 1,640 (45) 139 497 3,670 308 (551)

EBITDA FY12 49 4,644 10,237 5,829 10,804 1,580 1,799 988 8,910 2,701 2,481 2,504 341 166 233 888 245 94 YoY -94% -35% 0% -9% 9% 13% 16% 14% 16% 71% 48% 53% 20% -53% -76% -21% FY'11 467 5,674 8,301 468 4,687 501 947 95 702 820 1,211 968 108 32 288 147 183 (672)

PAT FY12 197 (4,282) 8,779 206 3,166 595 1,242 141 639 1,176 1,513 1,320 133 29 83 92 56 (132) YoY -58% 6% -56% -32% 19% 31% 48% -9% 43% 25% 36% 24% -8% -71% -38% -69% -

Margins FY12 EBITDA 0.1% 11% 25% 16% 37% 8% 12% 8% 80% 26% 30% 30% 4% 6% 24% 9% NPM 0.4% 22% 1% 11% 3% 8% 1% 6% 11% 18% 16% 1% 2% 3% 2% -

Figures in Rs.`mn

Research4India

10

Logistics Track

Four-S Services Pvt Ltd

Founded in 2002, Four-S has a strong & successful track record of genuine, accurate and objective advice to top Indian & global companies & PE Firms. Four-S has already proven success in corporate finance, strategy consulting, fund-raising, investment banking and investor relations mandates with 100+ corporates and large PE funds.

Four-S, trusted advisor to top Indian & Global Cos

Offering comprehensive bouquet of services to SMEs, Corporates and PE Funds

Research4India

11

Logistics Track

Disclaimer The information contained herein has been obtained from sources believed to be reliable but is not necessarily complete and its accuracy cannot be guaranteed. No representation, warranty, guarantee or undertaking, express or implied, is made as to the fairness, accuracy or completeness of any information, projections or opinions contained in this document or upon which any such projections or opinions have been based. Four-S Services Pvt. Ltd. will not accept any liability whatsoever, with respect to the use of this document or its contents. This document has been distributed for information purposes only and does not constitute or form part of any offer or solicitation of any offer to buy or sell any securities. This document shall not form the basis of and should not be relied upon in connection with any contract or commitment whatsoever. This document is not to be reported or copied or made available to others. The company may from time to time solicit from, or perform consulting or other services for, any company mentioned in this document.

For further details/clarifications please contact: Seema Shukla Seema@four-s.com Gurgaon Office: 214, Udyog Vihar, Phase I, Gurgaon 122016 Tel: +91-124-4251442 Ajay Jindal Ajay.jindal@four-s.com Mumbai Office: 101,Nirman Kendra, Opposite Star TV, Off Dr E Moses Road, Mahalaxmi, Mumbai 400001 Tel: +91-22-42153659

Research4India

12