ARSHIYA FREE TRADE AND WAREHOUSING ZONES

RADIATING INFRASTRUCTURAL EFFICIENCY

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Depicted on the cover is the sun in a Madhubani art form that specialises in capturing details to brighten the home…. much like Arshiya
FTWZ’s role in sharpening critical logistical aspects that seek to brighten the economy.
Arshiya International Ltd. is delighted to bring you Free Trade and Warehousing Zones (FTWZ), the profitable infrastructural support that
allows you to export, import and re-export products without the burden of taxes, duties and levies that you would otherwise have been
bound by. These special zones offer you customised warehousing facilities to help you add value or store, before organised shipment.

These zones have been strategically located, networked and laden with every facility you may require to offer you a clear time-and-cost
advantage.

The benefits that this pioneering venture

would offer are: duty and tax incentives, faster
regulatory clearances, significantly reduced
capital expenses, visibility, flexibility and most
importantly, decrease in working capital cost.
Arshiya’s vision of setting up Free Trade and Warehousing Zones (FTWZ) is a part of an endeavour to help you
boost your operational efficiency.

Conveniently located for port or multi-modal hinterland connectivity, the FTWZ facilitates the movement of
products in and out of the country and lets you leverage India’s cost and skill arbitrage. FTWZ empowers you
with its strategic geographical position to enable you to benefit from this Value-Addition and Distribution hub.

It clearly puts you in an advantageous state when you consider India’s position in terms of trade as compared
to other players in the Asian subcontinent.
You lower your product costs on your exports
The FTWZ is a deemed foreign territory, hence products entering it from India are treated as exports and attract immediate export
benefits like duty and tax exemption where applicable, reduced working capital, and a host of other benefits. It offers you a convenient
business environment where regulatory compliance has been simplified.

You have the advantage of being able to consolidate, add value and conduct quality control on the products effortlessly before
distributing them worldwide.

The FTWZ increases forward and reverse supply-chain efficiencies, reduces

lead time and buffer stock, provides higher inventory visibility, enhances
capital cash flow, lowers cost of sourced products, augments vendor
management capability, customised security, and optimised space
management.

You can avail of Income-tax exemption on profits wherever applicable.

There’s exemption from Local Taxes like CST, Sales Tax, Excise and VAT.

You can transact in foreign exchange.

Case Study : Benefits of FTWZ for Exports
A global FMCG major sourcing a majority of its products from Export Oriented Unit (EOU) suppliers based in India.

Without FTWZ
This global FMCG major utilises multiple suppliers based in India for its globally sold products - predominantly in Europe and North
America. The suppliers, being EOU's cannot claim export benefits unless physical destination of material from their factories are sent
out of India -forcing the FMCG major to conduct consolidation and value addition of the sourced materials in Europe - prior to last-mile
distribution to stores and customers. This current model automatically means incurring higher operational costs in the final stage of the
products for activities such as packaging, labelling, and warehouse management. Additionally, quality control is also done in Europe for
sourced materials from India creating inefficiency with returns processing.

With FTWZ
The FTWZ being a deemed foreign territory allows the FMCG
major to consolidate sourced materials from Indian EOU suppliers
in India - while providing the supplies export benefits. This model
provides the FMCG major to additionally lower their working
capital tie-up by bringing the consolidation hub closer to the
suppliers and bring about tremendous efficiency in their
operations. Quality control and returns management additionally
is now in India for materials sourced from Indian supplies - while
providing the company to leverage India’s benefits for other value-
added services such as packaging, labelling, etc. This zone in the FTWZ additionally helps consolidate materials sourced from suppliers
in Pakistan, Sri Lanka & Bangladesh creating one consolidation hub in the region for the FMCG major.
You lower your product costs
on your imports
The FTWZ provides you with several cost-saving benefits for your imports before
letting you avail of various flexible end-distribution facilities in India. You can
defer duties and free your working capital, reduce buffer stocks, get volume
discount, and ensure higher inventory visibility.

It offers you a conducive business environment that allows prompt clearances of legal and regulatory compliances. You enjoy enhanced
risk management on operations and 100% reliability in product distribution channels.

To enhance the speed and efficiency of your distribution you have a ready 24/7
customs clearance.

You can even perform quality control prior to payment of duty.

There are no regulatory implications for re-export.

Service tax exemption can be claimed on services availed–including

transportation within India.

You can make foreign exchange transactions.

Case Study : Benefits of FTWZ for Imports
Consider the case when the Indian unit of a global automobile giant has to import spares and accessories to service its current
customers in India. See how the FTWZ helps in saving time, costs, duties and brand image.

Without FTWZ
The goods imported enter the ports of India from various suppliers across the globe. The goods attract import duty that is payable at the
ports. The goods then reach the manufacturing plant in India. Here the goods go through quality control and the rejected lots are
shipped back to the supplier. Storage space being a constraint, not many spares are kept. The approved spares are sent to the dealers on
request post Maximum Retail Price (MRP) labeling.

The Result: Unavoidable import duty even on rejects increases working capital requirements and inflates product costs through
additional transportation requirements.

With FTWZ
Goods enter Arshiya’s FTWZ from the same vendors around the world. This being a deemed foreign territory no import duties are
levied. Last minute MRP labeling, Quality control is carried out here and rejects are shipped out without any inconvenience or delay.
State-of-the-art storage space in the FTWZ additionally allows the company to buffer-stock; thereby increasing customer satisfaction
through faster delivery. Goods can also be exported to international
dealers at short notice with tax exemptions.

The Result: The deferment of import duty reduces the working capital and
the cost of the product. Time saved in transport increases supply
efficiency. Flexibility in duty deferred storage at the FTWZ offers ready
availability of all spares in a competitive market place. Quality control
before duty payment saves a lot of bother. Lowered 3PL costs through
leveraging economies of scale and re-exports to regional distributors
leverages India’s cost and skill arbitrage and that too with income-tax
exemption on profits.
You add value to products cost-effectively
The FTWZ allows you to import products for purpose of assembly or adding value, in the most cost-effective manner. You can re-export
them worldwide or distribute within the country leveraging India as a global distribution and value-addition hub.

These services, which could include procurement of material for value addition, are exempt from local taxes.

As a FTWZ unit holder you are allowed 100% FDI for the set-up of such units providing regulatory ease and operational freedom.

You get service- tax exemption on all activities inside the FTWZ, including rentals and labour, along with hassle-free re-exports.
Case Study : Benefits of FTWZ for Value-addition Services
A global chemical major, imports chemicals and re-exports them subsequently after value addition in India, while complying with
stringent Indian regulations. You’ll see how the FTWZ helps overcome the regulatory constraints, eliminates duties and taxes and
increases efficiency and control of distribution.

Without FTWZ
Indian regulations do not permit the repackaging of imported chemicals in the local Indian manufacturing plant. This creates
complications in delivery for this company to a customer abroad who needs these chemicals together in one consignment. The
repackaging involves converting the imported chemicals from 240-kg drums into 5-kg tins sourced from India; which is also used to
package the chemicals made in India and sending it in one container to the customer abroad.

The Result: Consolidation currently done in Singapore for chemicals coming from India and abroad along with the 5-kg empty tins leading
to inefficiencies, complications and eventually raising product costs.

With FTWZ
The FTWZ being a deemed foreign territory, the Indian regulations do not apply. Hence
allowing consolidation and repackaging of imported chemicals with locally-manufactured
chemicals is permissible. Therefore operations become more efficient and subsequent
exports are done effortlessly. All repackaging activities and transportation into the FTWZ are
exempt from Service Tax. 5-kg tins sourced locally are exempt from excise duty and local
taxes, further reducing the cost. Income-tax benefits are additionally applicable on re-
exported chemicals.

The Result: A drastic reduction of processing time, cost and effort. A significant allocation
of tax benefits helps to reduce product costs considerably. There is better control, higher
product visibility and flexibility on distribution. Supply chain efficiencies are enhanced
significantly.
 Cost Benefits Tax Benefits Operational Freedom

Interest-Free Income-Tax
Long-Term Storage Holidays on earnings Opportunity Buying

Lower Insurance Premium Duty Deferment of Cargo Foreign Inspections, locally

on Cargo for up to 5 years

Economies of Scale No Import Duty on

on Procurement and 3PL Equipment for FTWZ Trouble-Free Re-Export

Land Bridge, India Local Tax Exemptions Forex Trading

Increased Speed Leveraging India Quality

of Business (Cost & Skills Arbitrage) of Business

24/7/365 Custom Clearance Exhibit before Exporting to India State-of-the-Art Warehousing & CY/ICD

Bill of Lading at FTWZ Entry Hub in India for Global Distribution Integrated IT capability

Faster Operational Readiness Cost and Skill Benefits of Strategic location and proximity
for New Entrants VAS activity in India to Port and Airport

Availability of Skilled
J.I.T Business Model Integrated Essential Services
and Unskilled Manpower
At Arshiya’s Free Trade and Warehousing Zones you have fully-integrated logistics infrastructure with its own dedicated warehouses
that include Racked, Bulk, Temperature-controlled, Sanitised, Chillers, Freezers, Strong-room and Hazardous-storage.

The state-of-the-art warehouses feature enhanced warehouse

management efficiencies like 13-meter height utilisation, options for
customisation, fire-fighting, 24/7 security services and cutting edge
environment-friendly solutions for energy and water efficiency.

There is a dedicated Container Yard (CY) / Inland Container Depot (ICD)

infrastructure to facilitate movement of your products.

A Rail Terminal integrated into the FTWZ ensures ease of operations and
pan -India connectivity.

The FTWZ will also include auxiliary services like banking, insurance, travel, courier,
manpower, security agencies, etc., along with utility services including 24-hour power
and water (with 100% back up), fuel stations, cafeteria facilities ... and a lot more to make
you self sufficient.

The Data Centre inside the FTWZ provides exclusive server infrastructure for logistics
related document management.

Besides, it will have its own dedicated Exhibition Centres for customers to display imported products without duty payment.
Logistics and Supply Chain Industry is set to witness a
historic shift with the arrival of the game changer,
India's first Free trade and Warehousing Zone (FTWZ)
being developed by Arshiya International Ltd.

Arshiya proposes to offer you a choice of five Free

Trade and Warehousing Zones strategically located
across the country at Panvel (Mumbai), Khurja (Delhi
NCR), Nagpur & two more at South and East.

Our FTWZ value proposition forms a critical part of

our customised solutions in your supply chain model
and will bring about a revolutionary change in the
Indian logistics landscape.
Location advantage of Mumbai FTWZ:
◗24 km from JNPT port at Sai Village, Panvel
◗23 km from proposed new international airport
◗Rail connectivity: 3 km from JITE railway station
◗Connectivity to Mumbai-Pune and Mumbai-Goa expressway
◗15 km from proposed new Rewas mega port

Location advantage of Delhi FTWZ:

◗Strategically located on the JNPT-National Capital Region (NCR)
dedicated freight corridor, connecting the export hub of India to JNPT
◗Strategically connecting the West-North and East-North freight corridors

Location advantage of Nagpur FTWZ:

◗Near MIHAN – India's upcoming mega hub for air cargo
◗Near MIDC Industrial area, Nagpur
◗Located in central India connecting the various important industrial hubs in
the hinterland

Location advantage of Haldia FTWZ:

◗Situated at one of the strategic locations on the east coast
◗One of the busiest business ports of East India

Location advantage of Chennai FTWZ:

◗Located near Chennai - one of the busiest ports of South India
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Corporate HQ: 301 Ceejay House, Level 3, Shiv Sagar Estate, F-Block, Dr. Annie Besant Road, Worli, Mumbai - 400 018. Maharashtra, India.
Ph: +91 22 4230 5500 /1 /2 Fax: +91 22 4230 5555 email: info@arshiyainternational.com website: www.arshiyainternational.com