Market Research Report : Air cargo market in india 2015 - Sample

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Air Cargo Market – India

April 2015

2

Executive Summary

Market Overview

Competition

Air transport is a vital component of many international logistics networks

The air cargo supply chain is a combined set of interconnected parties, locations, procedures, and information exchanges that enables cargo to move from its origin to its destination by air

World air cargo traffic is forecast to grow an average x% per year over the next 20 years

India is projected to be amongst the top ten international air cargo market by 2018

Air Cargo in India growing at a steadily increasing rate is poised to reach y mn tons by 2019

Major Players

Player 1 Player 2 Player 3


Drivers & Challenges

Drivers

Growth in International Trade

Rapid Economic Growth

Growth in Retail Sector

Thriving Pharmaceutical Shipments

Growth in e-Tailing

Poor Infrastructure of the Port Sector

Challenges

Rising Air Traffic Fuel (ATF) Prices

High Taxes Raising Operating Costs

Sub Standard Infrastructure and Unavailability of Resources

Government Initiatives

FDI Regime – Sectors Pertaining to the Freight and Transportation Industry

Development of the Surface Transport Sector

Policies by the Ministry of Civil Aviation

Phased Implementation of VAT

Infrastructure Initiatives – Union Budget 2014

AIR CARGO MARKET IN INDIA 2015.PPT

3 AIR CARGO MARKET IN INDIA 2015.PPT

•Macroeconomic Indicators

•Introduction

•Market Overview

•Major Domestic Airlines

•Drivers & Challenges

•Key Issues

•Government Initiatives

•Regulatory Framework

•Technological Trends

•Competitive Landscape

•Strategic Recommendation

•Appendix

4

SAMPLE Macroeconomic Indicators (1/3)

INR tn

Q4 Q3 Q2 Q1

2013-14 2012-13 2011-12 2014-15

GDP at Factor Cost: Quarterly

Inflation Rate: Monthly

Nov 2013 - Dec 2013 Oct 2013 - Nov 2013 Sep 2013 - Oct 2013 Aug 2013 - Sep 2013 Jul 2013 - Aug 2013

%




•Introduction

•Market Overview



•Key Issues






•Appendix

6

SAMPLE Indian aviation sector grew remarkably in the last decade with robust growth in passenger and cargo traffic

"The world is focused on Indian aviation - from manufacturers, tourism boards, airlines, global businesses to individual

travelers, shippers and businessmen. If we can find common purpose among all stakeholders in Indian aviation, a bright

future is at hand," as per Mr Tony Tyler, Director General and CEO of International Air Transport Association (IATA)

Aviation Sector – Industry Classification

Note: MRO: Maintenance, repair and operations


Aviation Industry

7

SAMPLE Air Cargo Movement – Value Chain (1/2)


The air cargo supply chain is a combined set of interconnected parties, locations, procedures, and information exchanges that enables cargo to move from its origin to its destination by air



•Introduction

•Market Overview



•Key Issues






•Appendix

9

SAMPLE Growth in world air cargo has slowed over the past decade mainly owing to consistent rise in fuel prices

• World air cargo traffic is forecast to grow an average x% per year over the next 20 years to reach a total of more than twice the amount as reported in 2013

• Asia–North America, Europe-Asia, and Europe–North America are the leading east-west air cargo markets

• Two principal causes are responsible for the weak air cargo growth between 2011 and 2013 are underperforming world economy and lackluster growth in trade, particularly trade in the commodities that are traditionally carried as air cargo

• Global air trade continued to gain momentum in 2014, and by Jul 2014 , traffic had grown y% compared to the first seven months of 2013

Global Air Cargo – Market Overview (1/2)

World Air Cargo Market – Size and Growth

Note: RTK – Revenue Ton Kms are used to determine the total amount of freight that is shipped by a transportation company in terms of revenue earned


bn ton km +Aa%

2013 2012 2011 2010 2009 2008 2007 2006 2005

Projected Growth in World Air Freight (RTKs)

+b%

bn RTK

2033e 2013

10

SAMPLE Asia overall and Domestic China will continue to lead the world in average annual air cargo growth…

Global Air Cargo – Major Routes (1/2)


Historical and Forecast Air Cargo Growth Rates (Major Routes)

Intra-Europe

South Asia–

Europe

Middle East–

Europe

Latin America–

North America

Latin America–

Europe

%

Intra–North

America

Europe–North

America

Domestic China

Intra-Asia Europe-Asia

Asia–North

America

Africa-Europe

2014-2033 2003-2013

11

SAMPLE Air cargo sector continues to demonstrate a consistent rapid growth

• Air cargo serves as a vital link between domestic and international markets

• Air Cargo is poised to grow at a CAGR of x% over the next five years until 2019

• Significant untapped potential of air cargo in India is apparent from the fact that the total cargo volume handled at Indian airports lagged behind traffic handled at other major international airports

• Rising local demand, improved international connectivity and resulting consolidation activity, and expanding cargo-handling infrastructure are the key drivers of increased freight handling at airports

• Increased trade activity, especially of physical goods between India and the Asia-Pacific region and the relocation of trade epicenters to China, Southeast Asia and Africa could open up new opportunities for air cargo in India in the coming five years

Indian Air Cargo – Market Overview (1/2)

Air Cargo Market – Market Size and Growth

Note: Market size is based on all cargo handled by AAI airports. Unless otherwise specified all years mentioned are financial years from Apr-Mar


2019e 2018e 2017e 2016e 2015e 2014 2013 2012 2011 2010 2009

mn tons

2008

+a% +b%

12

SAMPLE International cargo, which constitutes majority of total cargo is largely handled by the metro airports

Air Freight Statistics – Selected Segments (1/3)

Growth in International Air Cargo by Indian Carriers


Growth in Domestic Air Cargo by Indian Carriers

000’ tons

2014 2013 2012 2011 2010 2009

+a% 000’ tons

2014 2013 2012 2011 2010 2009

+b%

Freight Handled by Major Airports, 2013 (Jan-Sept), Tons

Ahmedabad Hyderabad Bangalore Kolkata Chennai Delhi Mumbai

International Domestic



•Introduction

•Market Overview



•Key Issues






•Appendix

14

Major Domestic Airlines (1/9)

Air India (1/2)

Total Freight


Total Mail

000’ tons

+b%

2014 2013 2012 2011 2010

000’ tons

+c%

2014 2013 2012 2011 2010

Total Cargo on All Scheduled International Services (Last Five Years)

+a%

2014 2013

000’ tons

2012 2011 2010

Note: Figures are for calendar year Jan - Dec

SAMPLE



•Introduction

•Market Overview



•Key Issues






•Appendix

16

Drivers & Challenges

Drivers

Growth in International Trade

Rapid Economic Growth

Growth in Retail Sector

Thriving Pharmaceutical Shipments

Growth in e-Tailing

Poor Infrastructure of the Port Sector

Challenges

Rising Air Traffic Fuel (ATF) Prices

High Taxes Raising Operating Costs

Sub-standard Infrastructure and Unavailability of Resources


17

SAMPLE Country wise scheduled freight carried to and from India by all airlines

Growth in International Trade (3/3)

India – China Air Trade India – UAE Air Trade

India – Saudi Arabia Air Trade India – Hong Kong Air Trade India – Germany Air Trade

India – USA Air Trade

Saudi Arabia and USA shows the maximum growth in bilateral air trade for the last fiscal year

tons

2014 2013

tons

2014 2013

tons

2014 2013

tons

2014 2013

tons

2014 2013

tons

2013-14 2012-13


18

SAMPLE Reduction of sales tax on ATF is considered to be one of the most critical needs of the aviation sector

Impact

• Text

Rising Air Traffic Fuel (ATF) Prices (1/2)


Domestic Production and Consumption of ATF Comparison of ATF Prices – India and Competing Hubs

2010 2011 2009 2012 2013

Consumption Production

000 tons

Singapore Kaula Lumper

USD/kilolitre

Bankok India Dubai

Note: ATF price comparison are for the year 2011

19

SAMPLE Supply of skilled human resource has not kept pace with the rapid growth in demand for human resource

• Text

Sub Standard Infrastructure and Unavailability of Resources (2/3)


Note: The list of Airports is not exhaustive

Workforce Requirement Forecasts for Domestic Carriers Airport Workforce Requirement Forecast

2011 2017

Other Staff

Aircratf Engineerand Technicians

Pilots

Cabin Crew

2011 2017

Total Workers



•Introduction

•Market Overview



•Key Issues






•Appendix

21

Key Issues – Summary


Aviation Sector

Text

Text Text

SAMPLE



•Introduction

•Market Overview



•Key Issues






•Appendix

23

SAMPLE Indian Transportation Sector Particulars vs. Global Benchmark (2013)

Particulars India Global

Average Truck Speed (kmph)

Four Lane Road Length (kms)

National Highway Length (kms)

Average Distance Traveled by a Truck in a Day (kms)

Road


Airport Waiting Time – Export (hours)

Airport Waiting Time – Import (hours)

Aviation Turbine Fuel as % of Operation Cost

Air

Particulars India China

Double Lines

Number of Locomotives

Number of Freight Wagons

Railway


Turnaround Time (hours)

Pre-berthing Delay (hours)

Ports

The Indian transportation sector has a lot to improvise, invest and improve on in order to exploit the potentials of the freight market


24

SAMPLE

`

FDI Regime – Sectors Pertaining to the Freight and Transportation Industry

Development of the Surface Transport Sector

Phased Implementation of VAT

Policies by the Ministry of Civil Aviation Role of Government

Government Initiatives

Infrastructure Initiatives – Union Budget 2014




•Introduction

•Market Overview



•Key Issues






•Appendix

26

SAMPLE Regulatory Framework (4/4)

Supply Chain Document Requirements (2/2)




•Introduction

•Market Overview



•Key Issues






•Appendix

28

SAMPLE Material Handling Technology (2/3)


• Text

Process and Benefits

Pro

cess

• Text

Automated Guided Vehicle System (AGVS)

Advantages

• Text

Process and Benefits

Pro

cess

Elevating Transfer Vehicles (ETV)



•Introduction

•Market Overview



•Key Issues






•Appendix

30

SAMPLE Porter’s Five Forces Analysis

Competitive Rivalry • Text

Bargaining Power of Suppliers

• Text

Bargaining Power of Buyers

• Text

Threat of Substitutes

• Text

Threat of New Entrants

• Text

Impact

Impact

Impact

Impact

Impact


31

SAMPLE Key Ratios of Top 3 Companies – Operational Basis (FY 2013) (1/3)

Competitive Benchmarking (2/5)

%


Net Margin Operating Margin

• Text


32

SAMPLE

Key People

Products and Services

Company Information Offices and Centres – India

Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation

Ticker Symbol

Stock Exchange

Category Products/Services

Sector (EPC)

Name Designation

Head Office


Public: Domestic Company – Player 1 (1/5)

33

SAMPLE Particulars

y-o-y change (2014-13)

2014 2013 2012 2011

Profitability Ratios

Operating Margin

Net Margin

Profit Before Tax Margin

Return on Equity

Return on Capital Employed

Return on Working Capital

Return on Assets

Return on Fixed Assets

Cost Ratios Operating costs (% of Sales)

Administration costs (% of Sales)

Interest costs (% of Sales)

Liquidity Ratios Current Ratio

Cash Ratio

Leverage Ratios Debt to Equity Ratio

Debt to Capital Ratio

Interest Coverage Ratio

Efficiency Ratios Fixed Asset Turnover

Asset Turnover

Current Asset Turnover

Working Capital Turnover

Capital Employed Turnover

Financial Snapshot Key Ratios

Financial Summary

• The company earned a net profit of INR - mn in FY 2014, as compared to net profit of INR - mn in FY 2013

• The company reported total income of INR - mn in FY 2014, registering an increase of -% over FY 2013

• The company earned an operating margin of -% in FY 2014, a decrease of m percentage points over FY 2013

• The company reported debt to equity ratio of - in FY 2014, registering an increase of -% over FY 2013

Key Financial Performance Indicators

Indicators Value (03/02/2014)

Market Capitalization (INR mn)

Total Enterprise Value (INR mn)

EPS (INR) -

PE Ratio (Absolute) .

Improved Decline


Net Profit/Loss Total Income

2014

INR mn INR mn

2013 2012 2011


Note : This company has had a fiscal year change on Dec-31, 2011

34

SAMPLE Key Business Segments Key Geographic Segments

Business Highlights (1/2)

Description News

Overview • Text

Infrastructure • Text

Recognitions • Text

2014

Integrated Air and Ground Transportation and Distribution

2014

India

Text


Text


35

SAMPLE Business Highlights (2/2)

Description News

Services Offered

• Text



36

SAMPLE

• Text • Text

• Text • Text

T O

W S

Public: Domestic Company – Player 1 – SWOT Analysis (5/5)


37

SAMPLE Private: Domestic Company – Player 2 (1/5)

Key People

Products and Services

Company Information Offices and Centres – India

Category Products/Services

Name Designation

Corporate Headquarter

Tel No.

Fax No.

Website

Year of Incorporation

Head Office


38

SAMPLE Ownership Structure

Name No. of Shares held

Total

Ownership structure corresponds to Date of AGM: 31/03/2013

Shareholders of the Company

100%

Private: Domestic Company – Player 2 (2/5)


39

SAMPLE Particulars

y-o-y change (2013-12)

2013 2012 2011 2010

Profitability Ratios Operating Margin

Net Margin

Profit Before Tax Margin

Return on Equity

Return on Capital Employed

Return on Working Capital

Return on Assets

Return on Fixed Assets

Cost Ratios Operating costs (% of Sales)

Administration costs (% of Sales)

Interest costs (% of Sales)

Liquidity Ratios Current Ratio

Cash Ratio

Leverage Ratios Debt to Equity Ratio

Debt to Capital Ratio

Interest Coverage Ratio

Efficiency Ratios Fixed Asset Turnover

Asset Turnover

Current Asset Turnover

Working Capital Turnover

Capital Employed Turnover

Financial Snapshot Key Ratios

Improved Decline

Financial Summary

• The company earned a net profit of INR - mn in FY 2013, as

compared to net profit of INR - mn in FY 2012

• The company reported total income of INR - mn in FY 2013,

registering an increase of -% over FY 2012

• The company earned an operating margin of -% in FY 2013, an

increase of k percentage points over FY 2012

• The company reported debt to equity ratio of q in FY 2013, an

increase of -% over FY 2012

Total Income Net Profit/Loss

INR mn INR mn

2012 2013 2010 2011



40

SAMPLE Business Highlights

Description News

Overview • Text

Cargo Services • Text

Awards • Text



41

SAMPLE

• Text • Text

• Text • Text

T O

W S

Private: Domestic Company – Player 2 – SWOT Analysis (5/5)




•Introduction

•Market Overview Global

India



•Key Issues






•Appendix

43

SAMPLE Strategic Recommendation (3/5)

Accomplishing Industry Status for Air Cargo Sector


Major Challenges Faced

Text Text Text

Text Text

Improvements Desired

Text Text Text

Text Text Text

Text Text Text

44

Thank you for the attention

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