1. CONCOR and INLAND CONTAINER PORTS Presented by: Isha Varma : 10020241045 SIIB

2. CONCOR Container Corporation of India Ltd. (CONCOR), was incorporated in March 1988 under the Companies Act, and commenced operation from November 1989 taking over the existing network of 7 ICDs from the Indian Railways. It is now an undisputed market leader having the largest network of 59 ICDs/CFSs in India. It has and will continue to play the role of promoting containerization of India by virtue of its modern rail wagon fleet, customer friendly commercial practices and extensively used Information Technology. The company developed multimodal logistics support for India’s International and Domestic containerization and trade.

3. “ To join with our community partners and stake holders to make Concor a company of outstanding quality by providing responsive, cost effective, efficient and reliable logistics solutions to customers through synergy with our community partners and ensuring profitability and growth. We strive to be the first choice for our customers. We will be firmly committed to our social responsibility and prove worthy of trust reposed in us.” MISSION STATEMENT

4. Awards and Achievements CONCOR has over the years demonstrated that a public sector enterprise can not only grow profitably, but also contribute significantly to the growth and economic development of the country. The excellence in performance has resulted into due recognition and awards for the company, the most recent of which are as under : MOU excellence awards for four consecutive years (2004-2008) ƒ Iso-9001:2000 quality systems certification for 35 terminals/units obtained upto FY 2007-08. ƒ Top Indian company in the shipping and logistics sector for the dun & bradstreet- American express corporate awards, 2007 & 2008 consecutively. ƒ Concor has received corporate excellence award from amity international for the year 2007.

5. Core Business

6. Summary of Financial Reports* Quick Financials EPS(Rs.) : 60.87 P/E: 18.89 Face value: Rs 10 Market cap: 14948.02 (in Crore) Book value per share(Rs): 289.44 Dividend per share(%): 140 P & L in a nutshell ( In Crore) Net Sales: 3417.16 Other Income: 211.09 Operating Profit: 1142.15 Depreciation: 115.91 Tax: 234.73 March 2009 Net Profit: 791.20 *The figures have been taken form their website

7. Facilities and Services

10. Air Cargo Services CONCOR entered Air Cargo services in 1999, to provide Intermodal logistics solutions to India’s trade. It undertakes various air cargo activities – Road Feeder Services Air cargo complexes and Centres for Perishable cargo. Bonded & other warehousing

12. Bonded Warehousing It was first tried out at Bangalore. It offers dual advantage to the importers. Allows deferral to duty payment & Allows cargo to be stored under cheaper option of warehouse storage. Bonding of cargo is very cost effective since warehouses are located in close proximity to ICDs.

13. Reefer Services Reefers facilitate the movement of cargo that requires strict temperature controlled environment. Running of reefer services requires a certain degree of Infrastructure development at the handling terminals. CONCOR has made such facilities available at the terminals. A “clip on” generator is attached to supply power to the refer units.

14. Discount Schemes CONCOR has special incentive schemes keeping in mind the existing business trends. Special volume linked incentives are offered to shipping lines and exporters.

16. Though CONCOR, was incorporated in March 1988, it embarked on the transportation of domestic cargo only in 1991.

17. A separate Domestic Division was therefore created in December 1997.

18. There are at present 5 exclusively domestic terminals.

19. Domestic cargo is carried is the standard 20ft container

21. Classification contd.. M (mixed goods) Commodities other than the five listed above, which have 'CC' loadability in the Railway Goods tariff are included in this category W (weight condition) These are light commodities which have loadability less than 'CC' even after occupying the total space of a container

22. Volume Discount Schemes For Business Associates Teus booked per month For achieving minimum monthly target If monthly target is exceeded by 25% If monthly target is exceeded by 50% If monthly target is exceeded by 100% b) For other customers Teus per month Upto 29 teus >29‐60 >60 VDS as % of chassis‐chassis rail freight 1% 1.5% 2% 2.5% VDS/teu (Rs) Nil 150/‐ 200/‐

23. Door delivery and pickups The prime objectives of the domestic division is to bring back to rail, goods which are now being transported by road Concept of door pick ups and delivery takes them one step closer to achieving the primary objective of becoming a truly multi-modal logistics service provider Advantages Paper work can be completed at the customer's door, and the customer need not visit the terminal at all In certain cases unloading of cargo from containers, and the delivery of loose cargo at the customer's requirements is done.

24. Cabotage of ISO container A "cabotaged" container is effectively loaned by the shipping company to the carrier (in this case CONCOR) for a very short period (usually a single one way trip) ,the carrier is permitted to use the container for movement of domestic cargo. Advantages:- CONCOR can therefore offer a substantial discount to both shipping lines and the potential domestic client. CONCOR does not posses any 40 ft. Containers in its domestic fleet, all domestic movements in 40 ft. containers is done by cabotaginginternational 40 ft. containers CONCOR regularly offers Cabotageservices on it's core exim route between Mumbai and Delhi.

25. Strengths Incumbent player with a significant market share and margins significantly higher than the other players.Concor accounts for one-third of the country's EXIM container traffic. Infrastructure advantage - 8,200 wagons, 175 rakes operating per year, 57 terminals; the company plans to add to this infrastructure to take advantage of the expected growth in EXIM trade. The company also owns its terminals, which is a substantial advantage given that other players pay close to 40% of their freight revenue as terminal charges. Significant presence at JNPT and other major Indian ports. Long-standing relationship with Indian Railways.

26. Weaknesses Poor asset maintenance has led to lower efficiency and clogged capacities. Top 20 terminals handle 83% of total volumes. So the balance 65% of terminals handled only 17% of the total volumes. Consequently there is large portion of capacity not being optimally utilized

27. Opportunities Increase in the penetration of containerization - in India is currently at 60% vs 80% globally. we expects the penetration to improve to 75% driven by cost advantages in favor of containerization. Indian railways have planned to build dedicated rail freight corridors (DRFC) which will exclusively cater to freight trains. These corridors will greatly improve the freight transportation across India.These corridors will greatly improve the freight transportation across India leading to faster development of the country. Substantial growth expected in international trade, according to estimates from the Ministry of Trade and Commerce. Rapid growth of organized retail and agro processing industries and strong FDI inflows into various industries should lead to enhanced market opportunities for logistics services.

28. Threats Entry of new players into the container train operations business. Fourteen new operators have signed the concession agreement with Indian Railways to run container trains for a period of 20 years, extendable by another 10 years. High land acquisition costs for developing ICDs imply that the sector is capital-intensive. Business depends on international trade to a great extent. Thus companies in the sector are exposed to geopolitical risk. Competition from truck operators.

29. New initiatives

30. E-FILLING SOFTWARE E-Filing software is a web based application of CCLS system . objective of this software is to provide one platform for entire import/export trade to perform online all their commercial transactions . any importer/exporter/shipping agent can file his documents including billing and take necessary print outs.

31. Hub and spoke

32. COASTAL SHIPPING “India has a long coastline of 5,560 Kms., having access to the sea on three sides with 11 major and 168 minor/intermediate ports.” Equity stakes in coastal shipping lines.

33. REEFER LOGISTICS Today 85% of the cold storages are in the private sector and not a single complete cold chain solution provider is available in the market. Reefer services between Delhi and Mumbai.

34. TOTAL LOGISTICS SOLUTION The market size of logistical sector in India is about Rs 437,000 crore. Only 10 per cent of this sector is organised and hence it is largely a fragmented market. Transportation in the logistics industry accounts for an approximate Rs 138,000 crore. About 65 per cent of the domestic freight is carried out by the road segment; the remaining by rail segment, whereas other modes are almost negligible. With the predicted increase in investments in the agriculture, manufacturing, construction and infrastructure sectors, the complete logistics sector is expected to boom. (http://www.projectsinfo.in/News.aspx?nId=dvERoQ+i3gFYh8jNpUBdrQ==)

35. TOTAL LOGISTICS SOLUTION The industry is estimated to grow steadily at a Compound Annual Growth Rate (CAGR) of 10-15 per cent in the coming years. Trends indicate that the current size of the project logistics market should be Rs 20,000 crore and should grow at a CAGR of 18-20 per cent. By 2012, the project logistics industry is expected to reach around the Rs 45,000 crore turnover mark. (http://www.projectsinfo.in/News.aspx?nId=dvERoQ+i3gFYh8jNpUBdrQ==)

36. TOTAL LOGISTICS SOLUTION TCI+CONCOR = INFINITE LOGISTICS SYSTEM. about Rs 50 crore to be spent in the next three years. Golden Rock unit to make longer container wagons. The present size of the wagon fleet in use on CONCOR's network is approximately 8374 wagons, of which more than 85% are owned by the company