FOUR-S Consumer 14th Feb12 27th Feb12 (Soft) Track

LOGISTICS TRACK
Fortnightly Update on Indian Logistics Industry

News of the week

Infrastructure Fund Of India Exits Logistics Firm Gati Infrastructure Fund of India LLC, a private equity fund managed by AMP Capital Investors, exited its investment in logistics services provider Gati Ltd by selling nearly 6% stake through the open market earlier this month. The stake was sold for an amount between ` 170mn and ` 210mn, according to estimates. AMP Capital invested in Gati in 2006, acquiring 12% stake for $15mn or ` 664mn. It also picked up additional stake from the markets in 2009. Loss-making Gati Ships, owns four container vessels, fetching a valuation of close to ` 2bn according to industry analysts. Bernard Schulte, which manages a fleet size of more than 650 vessels, operates in 25 countries. in talks to sell stake in shipping arm to Bernhard Schulte Hyderabad-based logistics major Gati is in talks with German ship-management company Bernhard Schulte to sell a strategic stake in its loss-making shipping business to raise cash to tide over the financial crisis. Bernhard Schulte will acquire significant stake in Gati's demerged shipping business, Gati Ships, helping it to charter container vessels to capitalise on the growing cargo trade emerging out of India. Founded in 1989, Gati has more than 3500 employees covering 622 out of the 626 districts in India. It has over 4,500 vehicles on the road, s excluding its fleet of refrigerated vehicles, container shipping vessels and world class warehousing facilities across India.

Content
News of the week 1

Investment Activity

News Update

Event Update

Global News Update

Stock Market Updates

Peer Benchmarking

About Four-S Services

Four-S India Logistics Report 2012

Four-S is launching comprehensive report on Logistics Space. The report presents current industry trends and snapshot of all key segments in Logistics & Supply Chain Industry along with profiles of interesting listed and unlisted players in the space. The report is useful for Board members & Senior Management of Logistics companies, PE Fund Managers and other investors. To book your copy, please write to Seema Shukla at seema@four-s.com.

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Four-S Services is India's leading provider of high-end research, financial consulting and Investment banking services. We have executed projects for prestigious Indian as well as global corporations, investment banks, private equity funds, venture capitalists and hedge funds including Indias Top 5 PE Funds. For further information, please contact Seema Shukla at seema@four-s.com or reach us as http://www.four-s.com

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Investment Activity
PE Deals in 2011
Date 6-Jan 23-Mar 11-Apr 22-Apr 5-May 24-Jun 4-Jul 5-Jul 5-Jul 19-Aug 13-Dec Investor India Equity Partners Infrastructure India Holdings Fund LLC Warburg Pincus Fidelity Growth Partners Mumbai Angels IL&FS PE Rajasthan VC Fund Standard Chartered PE ECL Finance Ltd. Ascent Capital India Equity Partners Target Foursee Infrastructure Equipments Ltd. Aegis Logistics Continental Warehousing Corporation Transpole Logistics MVS Efarms JICS Logistics Leeway Logistics Redington India Redington India Karaikal Port TNT Express Stake (%) NA 6.4 NA NA 25 NA NA 10.0 2.0 NA NA Amount ($ mn) 10.0 15.1 100.0 13.5 NA 8.8 3.3 81.1 16.2 30.0 NA Strategy Growth PIPE Late Growth Early Growth Early PIPE PIPE Growth Buyout

Mergers & Acquisitions in 2011

Date 19-Jan 16-Feb 26-Apr 29-Apr 12-Jul 31-Oct 12-Dec 14-Dec Investor TVS Logistics Infrastructure India Plc Aqua Logistics Ltd SBS Holdings Royal Vopak Vikram Logistics IL&FS Transportation Networks Ltd. Future Supply Chain Solutions Target Stake (%) Amount ($ mn) NA NA NA 33.3 61.8 14.4 NA NA Business Logistics Services Tranportation Logistics Services Logistics Services Liquid Storage Multimodal Logistics Road Transport Infra Warehousing

MESCO (US) 100 Vikram Logistics & Maritime Services 37.39 Nikkos Logistics 70 Atlas Logistics 80 CRL Terminals 100 ETA Engineering and its sub. Freightstar NA Chongqing Yuhe Expressway Co Ltd. 49 Transmart India NA

PE Deals in 2012
Date 6-Jan 23-Feb 23-Feb General Atlantic IDFC PE Global Super Angels Investor Target Foursee Infrastructure Equipments Ltd. StarAgri Warehousing & Collateral Management Chhotu.in (Santa Claus Couriers Pvt Ltd) Stake (%) NA NA NA Amount ($ mn) 20.8 30.0 NA Strategy Growth Growth Angel

Mergers & Acquisitions in 2012

Date 1-Feb Investor Oil Field Warehousing & Services (OWS) Target Raamns Shipping & Logistics Stake (%) NA Amount ($ mn) NA Business Logistics Services

Source: Four-S Database

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News Update
Logistics Company Chhotu.in Raises Funding From Global Super Angels Santa Claus Couriers which operates the e-commerce logistics company Chhotu.in, has raised an undisclosed amount of funding from Global Super Angels. The company intends to use the money raised to expand its operations to more cities and hire more people. Started in Jan 2011, Chhotu.in is a Delhi-based online logistics company which provides last mile logistics for various e-commerce companies including HealthKart, LensKart, Zovi, UrbanTouch, Fashion And You, 99labels.com, Myntra and Healthcar.com. It also provides other services like reverse logistics, Cash On Delivery and offline payment collection. The company claims to be handling around 800 transactions on a daily basis, with a monthly transaction size ranging from ` 7.5mn to ` 10mn. It currently has more than 100 employees on board. AllCargo Logistics begins corporate recast AllCargo Logistics Ltd has set in motion a corporate restructuring move aimed at de-merging its Indian and global businesses into two separate entities, each getting a true reflection of the business and standing in the market. The demerger, which may take four to five months to take shape, will see the parent company retain its listing in India and the new entity, which will handle the global less-than-containerload (LCL) operations, get a new listing either in India or overseas, but headquartered in India (Mumbai). The company spread wings globally after it acquired European firm, ECU Line, in 2006, making it the second largest NVOCC (non-vessel owning common carrier) in the world. Essentially, the demerger will re-shape the ECU arm into a new entity. This business currently handles a throughput of 3.5mn cubic metres, with 160 offices sprinkled across 60 countries and one transhipment hub in each continent. It has 85 smaller LCL companies that AllCargo acquired over the years. Adani Group to consolidate under three verticals: resources, logistics and energy Gujarat based diversified infrastructure player Adani Group is consolidating businesses under three verticals as it seeks to gain a leaner structure to pursue global ambitions better. According to Gautam Adani chairman of Adani Group, which has grown to $6 bn size in the last 24 years the company needs to integrate by specifically laying out core areas of focus. The company would be bringing all its businesses under three main verticals or clusters: resources, logistics and energy. While under resources, the group will house its coal mining and oil & gas operations; under logistics it will have - activities such as development of ports, logistic hubs and special economic zones. The third cluster will include its business of power generation and transmission. TVS Logistics to sell motor factor TVS Logistics, the parts warehousing and logistics business owned by the TVS Group of India, has agreed the sale of its Globe Transport Products. Globe is a commercial vehicle motor factor specialising in truck parts and components and was launched in 2002 with a single branch in Oswestry. The business was purchased from its management by the Multipart Group in 2009, and has since expanded with seven branches located in Oswestry, Crick, Cardiff, Warrington, Birmingham, Sheffield and Avonmouth. Globe is being purchased by TVS Europes former chief executive, Chris Gateley. Gateley led the buyout of Multipart Group, including Globe, from the Imperial Group and subsequently oversaw its acquisition by TVS in 2010. He stood down from his TVS role during 2011 and has since then been assisting the organisation with its European development plans. Aegis Logistics looks at doubling Pipavav port investment Aegis Logistics, a gas and liquid fuel logistics concern has plans to increase its proposed investment in Gujarat Pipavav Port. The company had delineated an investment of ` 4 bn in 2010 which it plans to enhance to ` 10 bn, driven by the growth potential in the port. The investment entails setting up of a tankage facility at the port that would span across a period of 3-4 years. Capital expenditure by Aegis for the year 2013 would be segregated into ` 650 mn at Haldia and ` 1.25 bn at Pipavav for liquid facilities and another ` 250 mn for LPG facilities. The second part of the capex would be devoted to Phase II and III of Pipavav for its LPG facilities. In 2010, Aegis had announced to develop 600,000 kilolitre (kl) oil terminal complex at an investment of ` 4 bn. It had entered into a sublease deal with the operator of the port, APM Terminals Pipavav, to set up a global oil and petrochemical storage complex across 100 acre of land. This 100 acre storage complex combined with potential of bigger ships calling at Pipavav port due to deeper draft given opportunity to enhance tankage facility for Aegis. Shipping Ministry Signs MoU with Ennore Port Limited A Memorandum of Understanding (MoU) setting out the performance targets for 2012-13 for Ennore Port was signed between the Ministry of Shipping and Ennore Port Limited (EPL). The MoU for 2012-13 has enhanced physical and financial targets for the company. The Cargo throughput targ-

Research Desk
Four-S Services is India's leading provider of high-end research, financial consulting and Investment banking services. We have executed projects for prestigious Indian as well as global corporations, investment banks, private equity funds, venture capitalists and hedge funds including Indias Top 5 PE Funds. For further information, please contact Seema Shukla at seema@four-s.com or reach us as http://www.four-s.com

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-et has been set at 16 mn Tonnes and gross sales have been put at ` 2.1bn for Excellent Grade. Having a paid up equity of ` 3bn, against the authorized capital of ` 5bn, Ennore Port has been consistently a profit making company and has paid a dividend of ` 74.1mn crores to the Government of India and ` 37.1mn to Chennai Port Trust, who are its shareholders, for the year 201011. Essar Shipping inducts new mini cape vessel The Ruias-owned Essar Shipping inducted its second mini-cape vessel, as part of its on-going $1bn ship acquisition programme in the next two years. The new vessel is the second in the series of mini-cape bulk carriers that are being built for the company at STX Dalian shipyard the remaining four will join the Essar fleet in the next four months. This relatively new category of vessels, which is in between a cape size and supramax size ship, can be berthed at ports having relatively shallower drafts of about 13.7 metres, but with a higher cargo carrying capacity. Four Soft bags new deal from Flowerport Logistics Four Soft has announced that it has signed significant deal with Flowerport Logistics, a leading Netherlands based logistics solutions provider. As per the deal, Four Soft would offer its integrated freight forwarding solution, 4S eTrans SME. The contract was executed through Four Soft Netherlands BV, Dordrecht, a subsidiary of Four Soft, India. SITL 2012: Indian ports should be run like corporate entities A delegation of transport and logistics industry veterans was in Mumbai for SITL 2012. It was a three-day interactive session-cum-seminar for the aforementioned industry during 23rd Feb to 25th Feb. According to European delegates, India has a long coastline and a number of ports, but they will become a lot busier and be able to match up to international standards only when the port authorities and the Ministry of Shipping start running them like corporate entities and not as mere infrastructure facilities. The semi-privatisation of ports has been taking place in Europe for a couple of decades now. This is what India could learn from European experience. The concerned ministry and the private sector should meet and work out the modalities for public-private partnership in the port sector. According to the knowledge partner KPMG, India is an emerging logistics market with current size of $84bn which is estimated to touch $112bn in 2014.

Global News Update

Shipping group Moller-Maersk sees 2011 profit slide, grim outlook Denmarks A.P. Moller-Maersk A/S, the worlds largest container carrier announced that that full-year profits fell 36% due to lower rates, particularly on Asia-Europe routes, and warned the outlook was grim. The earnings dropped 36% to 18.1 bn kroner ($3.3bn), despite a 2% rise in revenue to 322 bn kroner, as lower freight rates offset the impact of higher container volumes. A.P. Moller-Maersks subsidiary Maersk Line is the worlds largest container carrier with a fleet of more than 500 vessels. Kerry Logistics obtains Spanish joint venture Kerry Logistics has completed its acquisition of Kerry Salvat Logistics S.A., its former Spanish joint venture. The Hong-Kong based 3PL procured the remaining shares of the firm from partner Salvat Logistica, S.A.. Terms of the deal were not disclosed. Spain has been a key market for Kerry Logistics since 2005. In addition to forwarding significant freight volumes between Spain and Asia, Kerry has provided its Spanish customers with the means to sell their goods in Asia. Business of Management Sprint Logistics Acquired by Aperion

Aperion Management, a New York-based middle-market private equity firm, has acquired the municipal solid waste transfer station management and transportation business of Sprint Logistics for an undisclosed amount. Established in 1992, Sprint Logistics is a provider of transfer station management and transportation services in the Houston, Texas market. The company will be rebranded Stella Environmental Services. Roadrunner Transportation Transportation Logistics Systems acquires Capital

Roadrunner Transportation Systems acquired all of the outstanding capital stock of Capital Transportation Logistics, located in Nashua, N.H. The purchase price of $6.25 mn was financed with borrowings under Roadrunner's credit facility. CTL is a non-asset based TMS provider offering primarily transportation management solutions on less-than-truckload freight, in addition to truckload brokerage and freight

Research Desk
Four-S Services is India's leading provider of high-end research, financial consulting and Investment banking services. We have executed projects for prestigious Indian as well as global corporations, investment banks, private equity funds, venture capitalists and hedge funds including Indias Top 5 PE Funds. For further information, please contact Seema Shukla at seema@four-s.com or reach us as http://www.four-s.com

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-ght bill audit and payment services. CTL uses a Web-based system that allows clients to optimize carrier selection, dispatch and track shipments, generate invoices, create custom reports, and perform improvement analysis. Both are the US based companies inolved into supply chain management. In 2011, CTL generated net revenues of approximately $6 mn. Panalpina Appoints New CFO And Regional CEO Americas Panalpina announced two key executive hires. Robert Erni (45) is to become the new Chief Financial Officer of the Group. Ferdinand Kurt (59) is to become the new regional CEO for the Americas. Both have an extensive track record in the freight forwarding and logistics industry. Cold chain logistics company CryoPort secures $5m private placement US cold chain logistics company CryoPort has closed a private placement with various investors for $5m.

Research Desk
Four-S Services is India's leading provider of high-end research, financial consulting and Investment banking services. We have executed projects for prestigious Indian as well as global corporations, investment banks, private equity funds, venture capitalists and hedge funds including Indias Top 5 PE Funds. For further information, please contact Seema Shukla at seema@four-s.com or reach us as http://www.four-s.com

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Stock Market Update
As on 24th February 2012 Container Corporation of India Blue Dart Great Eastern Shipping Shipping Corporation of India Essar Ports Ltd. Allcargo Logistics Gateway Distriparks Arshiya International Mercator Ltd. Aegis Logistics Transport Corporation of India Sical Logistics Aqua Logistics SEAMEC Ltd. Gati Varun Shipping NSE Nifty BSE Sensex ET Logistics Index ET Shipping Index Baltic Dry Index (BDIY:IND) Market Cap (In ` mn) 129,801 45,139 36,062 32,792 27,008 17,905 16,180 8,786 6,759 5,513 4,941 3,812 3,735 3,143 3,104 2,873 Price (In `) 998.60 1,902.35 236.80 70.40 65.80 137.15 149.50 149.35 27.60 165.05 67.95 68.55 12.45 92.70 35.85 19.15 5,429.30 17,605.82 16,729.41 7,226.60 718.00 1W 2.2% 7.5% -12.7% -8.6% -5.9% -3.6% 3.3% -7.9% -11.1% -2.7% -5.5% -1.2% 4.2% -7.5% -10.3% -6.6% -2.4% 2.0% -0.3% -6.3% 0.1% Percentage Change (%) 1M 3M 6M 12M 11.1% 9.1% 6.6% -8.6% 12.2% 29.3% 17.3% 90.7% 3.3% 9.9% 0.7% -3.4% 18.1% 20.0% -14.7% -29.4% 2.8% -5.7% -9.6% -0.3% 11.9% -9.4% -3.5% 15.0% 18.1% 14.4% 30.0% 8.2% 2.7% 11.4% -19.2% 21.1% 30.2% 10.8% -19.8% -1.7% 19.5% -10.9% -42.8% 3.6% 7.9% -14.5% -28.3% -0.5% -2.5% -4.6% -6.9% -0.4% -12.9% -12.0% -28.0% -0.3% -0.6% -7.0% -12.2% 4.5% 31.6% -37.1% -30.6% 3.8% 16.4% -3.5% -29.7% 5.9% 14.2% 11.1% 3.2% 7.5% 9.4% 4.0% -6.0% 10.6% -1.3% -5.4% -7.8% 1.2% 13.7% 1.3% -3.4% -11.0% -60.4% -55.2% -42.2%

Baltic Dry Index

Source: Baltic Exchange

Road Freight Index

Source: Transport Corporation of India

Research Desk
Four-S Services is India's leading provider of high-end research, financial consulting and Investment banking services. We have executed projects for prestigious Indian as well as global corporations, investment banks, private equity funds, venture capitalists and hedge funds including Indias Top 5 PE Funds. For further information, please contact Seema Shukla at seema@four-s.com or reach us as http://www.four-s.com

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Results Update Last Quarter Ended 31st December 2011
All figures in ` mn
Company Q3 FY11 Aegis Logistics Mercator Lines CONCOR Shipping Corp. of Ind. Allcargo GE Shipping TCI Blue Dart Arshiya Essar Ports Gati Sical Logistics Patel Integrated Aqua Logistics Varun Shipping Shreyas Shipping Gateway Distri. SEAMEC Ltd 7,314 7,777 9,711 8,889 7,039 6,111 4,444 3,188 2,125 8,192 2,252 1,777 1,070 1,329 2,202 486 520 247 Revenue Q3 FY12 11,026 11,001 10,462 9,789 8,116 7,643 4,644 3,935 2,734 2,719 2,361 1,802 1,111 868 790 771 563 308 YoY 51% 41% 8% 10% 15% 25% 5% 23% 29% -67% 5% 1% 4% -35% -64% 59% 8% 25% Q3 FY11 223 1,357 2,807 1,612 781 2,574 335 397 423 2,988 216 138 34 129 1,007 86 271 (67) EBITDA Q3 FY12 (687) 1,698 2,774 (1,291) 1,048 2,852 360 311 702 2,145 277 197 35 61 62 42 321 (230) YoY 25% -1% -180% 34% 11% 7% -22% 66% -28% 29% 43% 3% -52% -94% -51% 19% Q3 FY11 122 16 2,285 1,231 567 1,175 118 240 201 276 32 24 6 76 118 45 230 (99) PAT Q3 FY12 (576) 234 2,412 741 559 875 135 224 345 450 53 26 4 13 825 3 207 (272) YoY 1406% 6% -40% -1% -26% 14% -7% 71% 63% 65% 7% -31% -84% 598% -94% -10% Margins Q3 FY12 EBITDA -6% 15% 27% 13% 37% 8% 8% 26% 79% 12% 11% 3% 7% 8% 5% 57% NPM -5% 2% 23% 8% 7% 11% 3% 6% 13% 17% 2% 1% 0% 1% 104% 0% 37% -

Results Update Annual

Company FY'10 CONCOR Shipping Corp. of Ind. Allcargo Mercator Lines GE Shipping TCI Aegis Logistics Blue Dart Varun Shipping Arshiya Sical Logistics Gati Essar Ports Patel Integrated Aqua Logistics Gateway Distri. Shreyas Shipping SEAMEC Ltd 37,057 34,631 26,329 18,436 30,415 15,224 3,057 9,097 9,026 5,259 7,260 6,303 10,282 3,467 3,220 1,670 1,479 4,248 Revenue FY11 38,266 35,434 28,613 28,069 25,580 18,527 18,121 11,507 8,368 8,188 7,711 7,512 5,170 4,268 3,810 1,915 1,904 1,024 YoY 3% 2% 9% 52% -16% 22% 493% 26% -7% 56% 6% 19% -50% 23% 18% 15% 29% -76% FY'10 9,616 4,690 2,790 6,619 9,107 1,146 726 1,065 2,834 891 375 615 3,227 117 324 882 (2) 2,237 EBITDA FY11 10,226 7,098 2,697 6,166 10,920 1,400 834 1,556 3,670 1,598 (1) 859 1,384 143 358 1,014 304 (544) YoY 6% 51% -3% -7% 20% 22% 15% 46% 30% 79% 40% -57% 23% 10% 15% FY'10 7,867 3,769 1,706 532 5,128 413 430 612 126 594 (357) (151) 900 46 205 772 (157) 2,039 PAT FY11 8,301 5,674 1,659 468 4,732 501 471 947 147 746 (80) 151 209 35 224 848 128 (668) YoY 6% 51% -3% -12% -8% 21% 9% 55% 17% 26% -77% -24% 9% 10% Margins FY11 EBITDA 27% 20% 9% 22% 43% 8% 5% 14% 44% 20% 11% 27% 3% 9% 53% 16% NPM 22% 16% 6% 2% 18% 3% 3% 8% 2% 9% 2% 4% 1% 6% 44% 7% -

Note: Financial Year for Allcargo and Blue Dart is Jan-Dec and that for Gati is Jul-Jun Source: Company Websites, Four-S Research

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