Logistic park

LOGI CITYBy Reliable Group

Presented by

Real Players

Dated – 10 Nov 2011

•Lack of sustained investment in planned infrastructure like warehouses, transport centres, ICDs etc

• Cold Chain infrastructure is very sporadic. The concept of “Integrated Cold Chain” is non existent

• Major investments on these infrastructures have come from Government agencies like CWC, SWC, CONCOR etc

• Current private sector initiatives are small and sporadic.

• Private sector warehousing are of poor quality , small, fragmented and does not meet infrastructure standards

• No quality standards or benchmarks are followed in infrastructure creation

Current Status of Logistics Infrastructure

Key Demand Drivers of Logistics

• Need for Exim based logistics infrastructure– Number of ICDs needed would be doubled in next 5 to 10 years– Critical need for Free Trade Warehousing Zones (FTWZ)

• Urgent need for air cargo processing space, in light of cargo capacity enhancement at airports and arrival of wide bodied jets capable of carrying substantial cargo at an economical costs. Current capacity is 50000 sq.m. and the total processing space required is 200000 sq.m.

• Urgent need to create modern agro warehouses. This would be critical for sustaining for sustaining agriculture. As per Planning Commission, agro warehousing needed is 35 mn MT in next 5 to 10 years

• At present organized retail accounts for 10 percent of the total; by 2015 this share reach 20 percent. This would require creation of huge backend infrastructure for this sector

Key Growth Drivers of Logistics

WAREHOUSING

• As per planning commission & industry estimates: • Total existing warehousing capacity-80 Mn MT• Required additional warehousing capacity-35 Mn MT (in next 5-10 years)• Business opportunity: Creating warehouse infrastructure with warehousing

partners of commodity exchange• Strategy:

– Identification of locations – Land verification– Formation of an SPV with a warehousing company of exchange– Creation of infrastructure

Business Opportunity In Logistics Sector

A vicious circle …

Land of Opportunities

Currently India ranks only 17th in terms of importing world products and consuming just over 2% of globally produced merchandise but it is growing at 35%.

It has enormous potential; consumption is expected to grow four-fold in real terms from the present US $378 billion to US $1.56 trillion by 2025.

Growing Indian economy, increase in outsourcing of logistics services and major investment by public and private sector in transport and other infrastructures make logistics a very attractive sector for large companies to expand business.

India is projected to have an additional 47 million working population, with an average age of 29 which will enable India to become a manufacturing hub of the world.

In a nut shell…

Ground Zero…

a) To carry out Demand Assessment studies for assessing likely demand in the proposed ‘Logistics Park’;

b) To firm up project scooping and components

c) To prepare a Techno-Economic Feasibility Report including the conceptual Master Plan, Cost Estimation and Financial Viability for the ‘Logistics Park’ that can be used by the potential developers of the Park for submitting their bids.

Course Ahead…

The proposed warehousing and logistic proposal are split under two sub head a. Pre-commencement.b. Post commencement

Work under pre-commencement activities shall include :-

1. Preparation of the project report .2. Preparation of the legal framework in which the proposed activity will work.3. Liason with the bankers if bank finance is sought.4. Statutory certification 5. Consulting on any other issues.6. Maintainance of the project account.

Work under post commencement activities shall include :-1. Generation of the documents for subsidy if exists.2. Manitainance of books of accounts.3. Any other issue which have direct finance relevance.

In case of any query pls revert to Mr Kamlesh Kumar – 8889122522Mr Mayank Bajpai - 8889122422

THANK-YOU