Arshiya International Ltd.

A REVOLUTION IN
INDIA’S LOGISTICS EVOLUTION

FTWZ Rail Infrastructure

Rail Domestic Distripark
Domestic LogisticsSupply Chain
Supply ChainHandling
Management
& Technology
FTWZ Logistics Technology
Infrastructure Distripark Management Transportation
 OVERVIEW OF THE INDIAN ECONOMY

India has seen consistent GDP growth of over 7% in the last decade. Even in
FY’2010 its GDP grew by 7.4%.

 India had been one of the 10 fastest-growing economies in the world in the last
two decades

 Domestic consumption is the largest contributor to the GDP (58% as of FY 09/10)

 Country’s foreign exchange reserves will soon reach US$ 300 billion mark.

India ranks 21st in terms of exporting world products contributing 1.3% of globally
consumed merchandise, with a value of US$ 163 billion

Ranks 14th in terms of importing world products, consuming 2.0% of globally

produced merchandise, with a value of US$ 250 billion

 India’s population is significantly younger and is growing at a faster pace & is

expected to outpace China by 2030
 INDIA’S LOGISTICS REALITIES & IN-EFFICIENCIES

 Logistics cost in India is fairly high – at around 14% of GDP, as against 8% - 9% in most
developed nations.

 On a 1 trillion GDP; this represents absolute value of in-efficiency and therefore logistics
market potential of over US$ 50 billion

 According to FICCI (Federation of Indian Chambers of Commerce & Industry),

E&Y (Ernst & Young) the average time taken to clear import and export cargo at ports is
about 19 days in India, as against 3 to 4 in Singapore

 India's container throughput in FY09 was just over 7 million TEU's, as compared to Dubai

(12 million), Singapore (24 million) & China (186 million)

 India burns nearly US$2.5 billion worth of fuel on account of trucks standing idle on state
check-posts

 Even with the poor road infrastructure & disorganized trucking network in the country,
road transport currently accounts for approximately 65% of the total Indian freight
transport. With rail having only about 30% market share, hinterland cargo
movement is more expensive and in-efficient.
THE WORLD BANK’S 2010 LOGISTICS PERFORMANCE INDEX (LPI)
World Bank ranks
4.11 4.09 India 47th
3.88 3.86 3.84 in logistics
3.63 efficiency
3.49

3.12

Performance Indicators
 Customs  Logistics Competence
 Infrastructure  Tracking and Tracing
 International Shipments  Timeliness
 CAN THE FUTURE OF INDIA’S ECONOMY AFFORD THIS
IN-EFFICIENCY?

 By 2030 India is poised to overtake Japan, to be world's 3rd largest economy

 India currently carries approximately 3 billion MT of cargo; which is expected to grow

to approximately 6 billion MT by 2020 (@ CAGR of 7%)

By 2025 India will have a middle class population of 583 million and will become worlds
fifth largest consumer market

By 2020, India is projected to have an additional 47 million workers, almost equal to the
total world shortfall with an average Indian age of 29. Comparative average population
age of other geographies at that time will be China (37),  US & Western Europe (45) and
Japan (48)
 CAPITALIZING ON INDIA’S LOGISTICS OPPORTUNITY
What does it take?

 Free Trade Warehousing Zones (FTWZs)

 To enable EXIM cargo Consolidation, Value Addition and allow India to become a
Regional Trading Hub
 Domestic Distriparks
 For Domestic cargo value addition and consolidation for Rail transportation to
remove dependency on road
 Rail Infrastructure Solutions
 Comprising of innovative Customized Containers for specific product types, Service
Level agreements on timeline and deliver with Key Performance Indicators
 State-Of-The-Art Rail Terminals, at strategic locations across India with modern
equipment to increase speed of loading/unloading and churn
 Integrate Logistics Infrastructure with Global Logistics, Domestic Supply Chain
Management & IT
 Global ocean & air logistics, domestic forward and reverse supply chain
management with ownership on reduction of working capital and product visibility
& control, through technology
ARSHIYA INTERNATIONAL LTD.
Capitalizing on India’s mammoth logistics opportunity
through Integrated Supply Chain & Logistics
Infrastructure Solutions

 By owning & operating our own:

 FTWZs
 Rail Infrastructure
 Domestic Distriparks
 Providing & partnering towards:
 Technology
 Supply Chain Management
 International Logistics
 Handling & Transportation
 ARSHIYA’S LOGISTICS INFRASTRUCTURE FOOTPRINT (PHASE 1 & 2)
Core Differentiator

 5 FTWZs – Rail Connected, Planned Pan-India

 Mumbai (Launched in August 2010), Delhi (Go Live Q2FY’11), Nagpur, Chennai &
East.

 5 Domestic Distriparks - Planned Pan-India, Complimenting the FTWZ Network

 First of the Domestic Distriparks (in Khurja near Delhi) operational by Q2FY’11

 75 Train Pan-India Rail Operations

 Providing unique and customized solutions to marquee customers with long term
contracts.
 Inducted 15 trains over the last 23 months and the most profitable Private Rail
Container Operator in India today
 Pan-India Rail Terminal Network complimenting each FTWZ, Domestic Distripark &
Rail Operations accelerating cargo distribution through aggregation
ARSHIYA’S INFRASTRUCTURE FOOTPRINT
 ARSHIYA’S ASSET LIGHT GLOBAL LOGISTICS, DOMESTIC SUPPLY
CHAIN & IT SERVICES LINEAGE

 10-year lineage, 150+ country freight forwarding network, servicing over 1,500
customers

 5-year lineage in Supply & Demand Chain legacy servicing leading retail & other brands
across India

 Proprietary IT – Arshiya Technology, that provides customized software solutions across

the value chain

Unique Competitive Advantage - Asset light portion of the business, ready to

soft connect the hard infrastructure being built that is currently operating
@ 17 % EBITDA
MAJOR CUSTOMERS (INTEGRATED SUPPLY CHAIN)
 ARSHIYA’S INTEGRATED MODEL
Industry Recognitions

Year 2008

Year 2009
 INDUSTRY RECOGNITIONS

Emerging Rail Operator of the Year Emerging Company & Visionary of the Year Employer of the Year
(2010) (2010) (2009-2010)

Logistics Company of the Year ELSC Face of the Year Visionary of the Year
(2009) (2009) (2009)

Supply Chain Innovation Note of Appreciation Note of Appreciation

(2009) IIM Bangalore IIM Calcutta
ARSHIYA’S MUMBAI FTWZ : DESIGN & SCHEMATIC
ARSHIYA’S SUCCESS STORY – LAUNCHED INDIA’S FIRST FTWZ
ARSHIYA’S KHURJA FTWZ : DESIGN & SCHEMATIC
 ARSHIYA RAIL INFRASTRUCTURE
Customized Containers & Long Term Charter Contracts

Open top containers increasing speed

of loading heavy cargo

Multi-purpose containers for dry-cargo

increasing return utilization
Enhanced cargo locking facility inside the
containers
Customized containers for carrying various
types of cargo
 INTEGRATED REVENUE STREAMS THROUGH ARSHIYA’S
INFRASTRUCTURE
 Captive Revenue Coming into Arshiya’s FTWZ/Domestic Distripark
 3PL revenues (Freight Forwarding + Local Transportation + Document Management) for product
being pulled from outside India into FTWZ/Domestic Distripark
 Rail/Road/Supply Chain Management revenues for product being pulled from inside India to the
FTWZ/Domestic Distripark.

 Captive Revenue Inside Arshiya’s FTWZ/Domestic Distripark:

 Warehouse Management
 Warehouse and Equipment Rentals
 Value Added Services (Labeling, Assembly, Packaging, Re-packaging, Consolidation,
De-consolidation, Quality Control etc.)
 Container Yard (CY) / Maintenance & Repairs

 Captive Revenue from Product moving out of Arshiya’s FTWZ/Domestic Distripark:

 3PL revenues (Freight forwarding + Local Transportation + Document Management) for product
being pushed from the FTWZ/Domestic Distripark to international markets
 Rail/Road/Supply Chain Management & Distribution revenues for product being pushed back into
India from the FTWZ/Domestic Distriparks, including various services in the domestic hubs and
sub-hubs

 Revenue Streams: Core Services Supporting all of the above enhancing customer
value:
 IT Solutions/Legal & Regulatory consultancy services across the value chain and revenue streams
 ARSHIYA’S GLOBAL ADVISORY BOARD
Ashutosh Varshney
Professor of Political Science at Brown
University, Former Advisor to World Bank & United
Nations Development Program(UNDP), Carnegie
Scholar & Winner of Guggenheim Fellowship
Award
Flemming Jacobs
Former Partner & CEO
AP Moller Maersk, Advisory Council Member of
Port of Singapore & On Advisory Board of
Panama Canal Authority
Dr. Frank-Jürgen Richter
President of Horasis: The Global Visions
Community ,Former Director of World Economic
Forum (WEF), Economic Columnist for The
International Herald Tribune & The Wall Street
Journal
Prof G. Raghuram
Professor: Indian Institute of Management,
Ahmedabad(IIM A), Author of Books on Logistics &
Supply Chain & Public Private Partnerships
Dr. Jerry (Yoram) Wind
Wharton School of Business – Lauder Professor
of Marketing Strategy, Founder & Director of SEI
Center for Advanced Study in Management at
Wharton, Founder & Academic Director
Wharton Fellows Program
James Beltran
Chief Executive Officer & Director,
Malaysian Assurance Alliance Berhad (MAA)
International Assurance Ltd
Dr. John L Gattorna
Chairman & Advisory Board-Macquarie Graduate School of
Management (MGSM) Institute for Logistics & Supply
Chain Management, Former Managing Partner for over 36
years at Accenture - Supply Chain Practice
Michael Proffitt
Former CEO Dubai Logistics City, Logistics Director for
Danzas Switzerland, Director of Logistics & Supply Chain
Group – Dubai, Over 25 years of experience in Logistics &
Supply Chain
Paul W. Bradley
CEO, Caprica International, Vice Chairman, Supply Chain
Asia, Senior Leadership position at Li & Fung Group,
NYK Line & BDP Asia
Richard Taffet
Partner, Bingham McCutchen LLP and Co-Chair, Bingham's
Intellectual Property Litigation and Patent Prosecution
Group
William P. Adamopoulos
President & Publisher: Forbes Asia, Former Publisher &
Managing Director The Asian Wall Street Journal
 UNIQUE DIFFERENTIATORS FOR ARSHIYA

Entrepreneurial leadership through visionary, Chairman & Managing Director Ajay S Mittal
 Clear & result-oriented management philosophy with a focus on Visualizing,
Implementing, Operating & De-risking
 Customer Focused Global Delivery Capability
 Fully Integrated Service Capability
 In Partnership with Global 3PL Player
 First FTWZ operator in the country, with first phase of 1 st FTWZ in Mumbai already sold
out
 The only profitable and fastest growing Rail business with a unique model
 Diverse & experienced global team
 Strong support from renowned global leaders as part of the Global Advisory Board
 Integrated offerings covering the End-to-End Logistics & Supply Chain, complimenting hard
logistics infrastructure assets
 Infrastructure projects becoming operational in or before 2011
3 FTWZs
2 Distriparks &
A minimum of 30 trains with 7 strategic rail terminals across India
1,500 captive logistics customers with a 10-year logistics & 5-year supply chain lineage
ready
 ARSHIYA’S POTENTIAL FROM INDIA’S LOGISTICS
IN-EFFICIENCY ALONE

At present levels of in-efficiency, even a 5%

penetration means an opportunity of over
US$ 2.5 Billion
 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

Registered Office: Arshiya House, 3rd Floor, Plot No.61, Road No.13, M.I.D.C., Andheri (East), Mumbai - 400093,Maharashtra, India.
Ph: +91 22 4048 5300

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