Welcome to Eredene’s Annual General Meeting/media/Files/E/Eredene/Annual Reports/results/agm...Welcome to Eredene’s Annual General Meeting. ... India Cements, ... • Joint development

INVESTING IN INDIA’S INFRASTRUCTURE

www.eredene.com

Welcome to Eredene’s Annual General Meeting

SUMMARY Private and Confidential | 2

• Eredene implemented a number of significant strategic changes over the last 18 months with the objective of returning

cash to shareholders and extracting value from the portfolio

• Ocean Dial, appointed as investment manager to Eredene in December 2013, is working alongside the Eredene team

in Mumbai to facilitate the monetisation process.

• The Group’s operating expenses have been significantly brought down through the continued cost reduction

programme to £2.4m for the year (2013: £3.4m) and are expected to be below £1m for the year ended 31 March 2015.

• As at 31 March 2014, the Group had a net asset value ("NAV") of £27.8m (2013: £67.0m), representing 11.3p per

share (2013: 18.52p) following the return to shareholders of £19.9m in October 2013; total consolidated cash balances

of £1.5m at 31 March 2014 (2013: £17.8m)

• The exit environment in India continues to be challenging. However the economy is recovering and business

confidence is at a two year high. Interest in the Company’s assets, both domestic and overseas has materially picked

up.

• The Company has sufficient cash on the balance sheet to continue the asset realisation programme over the next 18-

24 months, with commensurate returns of capital to shareholders.

SATTVA CFS Private and Confidential | 3

KEY UPDATES

• This is a steady, profitable and dividend paying business with

low debt

• Leading customers at the CFS include NYK Line, Maersk,

CMA-CGM and MSC

• Eredene recently sold 23% stake to the promoters (Sattva

Group) for £1.9m (IRR1 of 35%) following which Eredene now

holds 16% stake in the company

• Target realization timeline – 18 to 24 months.

INVESTMENT SUMMARY

Particulars £’m

Fair value as of 31 August 2014 1.25

Amount invested in total to 31 August 2014 0.7

Ownership stake at 31 August 2014 16%

Total debt as of 31 August 2014 0.1

Actual site pictures

1IRR – internal rate of return

SATTVA CONWARE Private and Confidential | 4

KEY UPDATES

• Sattva Conware is one of the largest CFS1 in Chennai and is

strategically located to three large ports – Chennai (30 km),

Ennore (20 km) and Kattupalli (22 km)

• Since commencing the EXIM2 business in February 2014 the

container volumes at the CFS have picked up steadily

• Sattva Conware handles around 800 containers per month

currently with leading clients including Ford Motors, India

Cements, several leading shipping lines and CHAs3

• The business requires additional funding to meet capacity

expansion

• Target realisation timeline – 18 to 24 months.

INVESTMENT SUMMARY

Particulars £’m

Fair value as of 31 March 2014 5.6





1CFS – container freight station 2EXIM – export import 3CHA – customs handling agents

MJ LOGISTIC Private and Confidential | 5

KEY UPDATES

• Eredene has put in place an independent management team

headed by a CEO (previous COO) while the promoter and

MD has moved into an advisory role

• The new team has been set clear strategic goals over next 12

months to stabilise the business and make it profitable

• Business increased by 10% in YTD1July 2014 vis-à-vis YTD

July 2013 - leading clients include Tata Motors, ITC, Bharti

Retail, Subway, PepsiCo and DuPont

• MJL is a leading independent 3PL2 player in North India and

continues to interest a number of strategic players. The target

realisation timeline is 12 to 18 months.

INVESTMENT SUMMARY

Particulars £’m






1YTD – year to date 23PL – third party logistics

CONTRANS Private and Confidential | 6

KEY UPDATES

• The volumes at Pipavav CFS have seen good recovery with a

traffic growth of 43% for the four months ended July 2014

over same period last year

• Leading customers at the CFS include Maersk India, Hapag-

Lloyd and J.M. Baxi

• The company is generating sufficient internal accruals for

debt servicing and is expected to sustain profitability for the

current financial year

• The company is renewing industrial permissions for Baroda

land – it does not intend to develop this land

• Eredene is exploring various strategic options for realization

of stake including demerger of the business

• Target realisation timeline – 18 to 24 months.

INVESTMENT SUMMARY

Particulars £’m






APEEJAY INFRALOGISTICS Private and Confidential | 7

KEY UPDATES

• The Haldia CFS has seen significant decline in container

traffic since July 2013 due to an embargo put by the Haldia

port on handling of non-scrap cargo by private CFSs

• The Kalinganagar ICD1 commenced EXIM operations in May

2014 but the container volumes have not picked up due to

transportation issues across inter state borders which has

restricted shipping lines from using the ICD on a regular basis

• The company requires significant additional funding to meet

operating losses and debt servicing over next 24 months

• Target realisation timeline is 6 months.

INVESTMENT SUMMARY

Particulars £’m






1ICD – inland container depot

MRPL and GRPL Private and Confidential | 8

KEY UPDATES

• Eredene became 100% owner of the company following a

settlement process reached with the Indian promoter in

February 2014

• This has allowed Eredene to reassert control over the

project and work with relevant parties to restore the

opportunity

• In keeping with the Board’s strategy to monetise the

portfolio a number of options for this asset are being

considered

• Outright sale to a 3rd party

• Joint development of the project working alongside

credible local real estate business

INVESTMENT SUMMARY

Particulars £’m



Ownership stake at 31 August 2014 MRPL – 100%

GRPL – 100%


Welcome to Eredene’s Annual General Meeting/media/Files/E/Eredene/Annual Reports/results/agm...Welcome to Eredene’s Annual General Meeting. ... India Cements, ... • Joint development

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