ftwzvalueproposition-chemicalindustry
TRANSCRIPT
8/2/2019 FTWZValueProposition-ChemicalIndustry
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White Paper - Chemical Industry
Arshiya International Ltd.
Unique Benefits
Free Trade & Warehousing Zones
‘There’s A Way’
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Contents
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About Arshiya International Ltd.
Free Trade and Warehousing Zones (FTWZs)
FTWZ at Panvel, Mumbai
Strategic Location of the Zones
Arshiya's Planned FTWZ Footprint
Benefits of FTWZ to Chemical Industry
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Arshiya FTWZ
Value Proposition to
Chemical Industry
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About Arshiya International Ltd.Arshiya International Ltd. (AIL), a flagship company of the Arshiya Group is a listed entity on the Bombay Stock Exchange (Stock
Code: 506074) and National Stock Exchange (Stock Code: Arshiya) and is an India headquartered, integrated supply chain and
logistics infrastructure solutions provider. The company has multinational operations in the logistics and supply chain
management space and is currently involved in the phased investment of approximately US$ 1.5 billion towards creating
pioneering logistics infrastructure in India.
Arshiya is a combination of several strategic integrated logistics verticals (Free Trade and Warehousing Zones [FTWZs], Rail
Infrastructure, Domestic Distripark, Logistics, Supply Chain Management, Technology) enabling unparalleled operational
expertise & solution capability across the entire supply chain spectrum. Arshiya has also been accorded the status of “Star ExportHouse” in accordance with the provisions of the Foreign Trade Policy. Arshiya's strategic business entities are.
Arshiya International Ltd. operates with the vision of being the only fully integrated supply chain management & logistics
infrastructure solutions company in India. The genesis of the vision is driven by the fact that India; as a country spends
approximately 14% of its GDP on logistics while most developed countries spend between 8% - 9%. On a US$ one trillion GDP; this
represents approximately US$ 50 billion in excessive spending owing to the inefficiencies and unorganized nature of logistics inIndia. As India's economy surges ahead and trade increases, bringing the desired efficiencies in logistics systems in India
represents Arshiya's mission.
Arshiya FTWZ
Involved in implementation
and operation of Free Trade
and Warehousing Zones
(FTWZs)
Arshiya Rail Infrastructure
Designed to provide pan-India
rail freight operations and
providing rail terminal facilities
Arshiya Domestic Distripark
Providing strategic hub
warehousing for domestic rail
consolidation across India
Arshiya Logistics
Provides logistics solutions
including end-to-end freight
management & transportation
services in over 150 +
countries world-wide
Arshiya Technology
Provides software solutions for
supply chain management and
business process outsourcing
Arshiya Supply Chain
Provides end-to-end supply &
demand chain solutions
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The foundation of Arshiya's integrated supply-chain & logistics infrastructure solutions model is aimed to address the following
inefficiencies of logistics in India:
1 62% of container freight traffic entering or leaving India is out of one port-Jawaharlal Nehru Port Trust (JNPT) in Mumbai,
requiring India to depend heavily on domestic freight movement for last mile supply chain connecting this port to industrial
hubs and the end consumer.
2 The total Indian freight transport system carried approximately 2.8 billion MT of cargo in FY09; where Road enjoys highest
market share with approximately 60% and Rail in this country trails severely with only 35% market share:
a. This high dependence on road transport not only represents inefficiencies arising out of the bad quality of trucks
and roads in India, but adds to costs on account of product theft/loss, time taken for delivery on account of state
border crossings, loss of visibility of product etc.
I. As a country, it is reported that India burnt approximately US$ 2.5 billion on fuel on account of trucks
standing on check posts
b. The road transport sector in India remains very largely unorganized with an average trucker in India owning only
about seven trucks.
3 Added to the above, India is ridden with the inefficiencies consistent with an unorganized 3PL / 4PL network with no true pan-
Indian players that can offer best-in-class supply chain solutions.
4 India's present container throughput as per FY09 – was approximately 7 million TEUs (Twenty Equivalent Units), as against
Dubai (over 12 million TEUs), Singapore (over 24 million TEUs) & China (over 186 million TEUs) owing to a lack of
infrastructure that would allow India to compete as a competent location for value addition, hubbing & transshipment hub.
ARSHIYA INTERNATIONAL LTD:
'Integrated Supply Chain & Logistics Infrastructure Solutions'
With 10-year legacy in the logistics industry, servicing over 1,500 customers, Arshiya has a vision to reduce India's 'last mile'
logistics & supply chain cost from 14% to 9%, thus targeting the absolute inefficiency of US$ 50 billion in the country. Arshiya plans
to capitalize on India's mammoth logistics opportunity through Integrated Supply Chain & Logistics Infrastructure Solutions. By
leveraging its unique competency of combining 'Soft Infrastructure' such as asset-light 3PL (Third Party Logistics), 4PL (Forth Party
Logistics) services, with innovative 'Hard Infrastructure' such as, FTWZs, Rail Infrastructure & Domestic Distriparks, integrated
through customized IT solutions.
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v
?
Transshipment Hub
vDomestic Distriparks
?For Domestic cargo value addition and consolidation for Rail transportation to remove dependency on road
vRail Infrastructure
?To comprise innovative Customized Containers for specific product types, service level agreements on timeline
and delivery with Key Performance Indicators
?State-of-the-art Rail Terminals, at strategic locations across India with modern equipments to increase speed of
loading/unloading and churn
vIntegrate Logistics Infrastructure with Global Logistics, Domestic Supply Chain Management & Information
Technology (IT)
?Global ocean, air & projects logistics, domestic forward and reverse supply chain management with ownership
on reduction of working capital and product visibility & control, through technology
Free Trade and Warehousing Zones (FTWZs)
To enable EXIM cargo consolidation, value addition to allow India to become a Regional Trading and
ARSHIYA'S LOGISTICS INFRASTRUCTURE FOOTPRINT (PHASE 1 & 2)
v5 FTWZs – Rail Connected, Planned Pan-India
?Mumbai (Panvel – Sai Village), Khurja (near Delhi) in the State of Uttar Pradesh, Nagpur (Butibori), South & East
of India
v5 Domestic Distriparks - Planned Pan-India, Complimenting the FTWZ Network
?First of the Domestic Distriparks will be operational in Khurja (near Delhi) in the state of Uttar Pradesh
v75 Trains - Pan-India Rail Operations
?Providing unique and customized solutions to marquee customers with long term contracts
?Inducted 12 trains, since starting operations in February 2009
?The most profitable Private Rail Container Operator in India today
?Pan-India Rail Terminal Network complimenting each FTWZs, Domestic Distriparks & Rail Operations
accelerating cargo distribution through aggregation
ARSHIYA INTERNATIONAL'S PERSPECTIVE FOR CAPITALIZING ON INDIA'S LOGISTICS OPPORTUNITY
'what does it take’
To make India realize its true potential, a proactive approach needs to be taken for creating a revolution in India's logistics
evolution. The industry needs an innovative and 'Game Changing' approach towards creating logistics infrastructure solutions
such as:
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Free Trade and Warehousing Zones (FTWZs)
“Free Trade and Warehousing Zone” means a Special Economic Zone wherein mainly trading and warehousing and
other activities related thereto are carried on”
Definition as per the SEZ ACT, 2005
Activities allowed inside the FTWZ as per the SEZ, Rules 2006
Trading with or without labelling, packaging or repackaging, re-sell, re-invoice or re-export of imported goods.
Assembly of complete knocked down and semi knocked down kits
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vUnique benefits of importing Chemicals into India through FTWZ
lImporting into India through FTWZ will allow the flexibility of end-distribution in India through duty
deferment, higher inventory visibility, reduced buffer stocks & lowered product costs also allowing
flexible and hassle-free re-export apart from taking advantage of volume discount on imports as duty on
imported chemicals can be deferred
lUnique benefits include:
?Hassle-free business environment in terms of local laws & regulatory compliance
?Unlocking of working capital through the flexibility of storing the Imported chemicals into India
(Inside FTWZ), without the duty payment
?Flexibility to customize marketing specific to Indian market, such as re-invoicing, packaging/re-
packaging, labeling/re-labeling, , blending, consolidation etc
?24 / 7 Customs clearance enhancing speed and efficiency of distribution of chemicals, thus
reducing the lead time of delivery
?Ability to store various types of chemicals in customized warehousing space, maintaining the
highest standard of quality in infrastructure
?Ability to consolidate imported chemicals by bringing it in bulk in FTWZ and therefore reduction in
logistics cost
?Quality control capability prior to duty-payment (will allow companies to have quality check &
control on critical chemicals before the duty payment)
?Re-Export without regulatory/duty implications. (in case of rejection or damage of imported
chemicals)
?Foreign exchange transactions capability
lOther tangible benefits possible through the FTWZ in this model include:
?Postponement Distribution capabilities
?Dynamic and Flexible Distribution capability
?Commodity and Inventory Hedging possibilities
Benefits of FTWZ to Chemical Industry
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Services like value addition (re-invoicing, packaging, re-packaging,
labeling/re-labeling, blending etc.) and other services (including
procurement of materials for the purpose of Value addition) availed by
Chemical companies will be exempt from local taxes. Companies will be
allowed to have 100% FDI for the set-up of their unit, providing regulatory
ease and operational freedom.
The FTWZ will allow Chemical companies to leverage its state-of-the-artinfrastructure for storage of chemicals not only for India distribution but in
the future for regional distribution (re-export after value addition) also
covering countries in the Middle East, Afghanistan, Sri-Lanka, Bangladesh
and other nations in Asia pacific. Key advantages of this would include
?Leveraging India's cost & skill arbitrage for hubbing, value added
services like re-invoicing, labeling/re-labeling, packaging, re-
packaging, blending etc. and distribution
?Enjoy income tax benefits on profits made in India for such regional
distribution activity
Other tangible benefits possible through the FTWZ in this model include:
?Service tax exemption on all activities conducted inside the FTWZ
including rentals & labour
?Exemption from custom & stamp duty on products imported into
FTWZ, India meant for re-export out of India
?Hassle-free re-export of value added products
Unique benefits ofvalue-addition activity inside
the FTWZ for chemicalsmported and re-exported
through FTWZ.
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Products from India entering the FTWZ are treated as an
export thereby providing unique & immediate export
benefits (e.g. Tax incentives where applicable, reduced
working capital, etc.) to the suppliers. More importantly,
this will allow Companies to consolidate, value-add and
conduct quality control on these products before end
distribution world-wide increasing supply chain efficiencies
(forward & reverse) while enhancing capital cash flow; all
contributing to reducing cost of these sourced products.
Unique benefits of exporting product outof India through the FTWZ
(deemed foreign territory).Applicable to companies for sourcing
chemicals from India
FUTURE
POTENTIAL
lOther tangible benefits possible to Companies through the FTWZ
in this model include:
?Enhanced Capital Cash Flow
?Higher Inventory Visibility
?Enhanced Vendor Management Capability
?Foreign exchange transactions
?Lead time reduction
?Buffer Stock Reduction
?Multi-layered and customised security and compliance
specific to products
?Optimised space management
Unique benefits include:
?Hassle-free business environment in terms of local laws & regulatory compliance
?Local Tax Exemption (e.g. CST, Sales Tax, Excise & VAT)
?Ability to conduct Quality Control before despatch from India and flexibility of sending it back to Domestic Tariff Area (DTA)
for replacement
?Foreign exchange transactions
HE ARSHIYA'S
IFFERENTIATOR –
ARSHIYA IT & SUPPLY
HAIN MANAGEMENT (4PL)
The strong value proposition of Arshiya here is the power of
Supply Chain Management (4PL) and IT where Arshiya owns
its own IT company deploying customized IT solutions that
can talk to its Client's ERPs along with the trained intellectual
property to operate its FTWZ warehouses efficiently on
tangible SLAs defined by the Clients
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FTWZ at Panvel, Mumbai
* actual Arshiya FTWZ photo
Container Yard with RTGCs
and Reach Stackers
Customs House for Inbound Cargo
* actual Arshiya FTWZ photo
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Docking Area
Reach Stacker
* actual Arshiya FTWZ photo
* actual Arshiya FTWZ photo
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Strategic Location of the Zones
Mumbai
FTWZLocation Advantage?
?
?Connectivity to Mumbai- Goa and Mumbai- Pune Expressway?Connectivity post Nhava-Sewri Sea link within 1.5 kms from the site on the Sawant wadi Expressway
?15 Kms from New proposed Rewas mega-port
?Rail Connectivity: 3 Kms from Jite railway station
24 Kms from the JNPT Port
23 Kms from Proposed New International Airport at Panvel
Location AdvantageArshiya's Free Trade and Warehousing zone is located strategically:
?
?Distance of Khurja Junction from our site is 2.5 Kms
?About 70 Km away from the National Capital Region (NCR)
?Dadri - 60 Kms
?Bulandshahr - 20 Kms
?18 km from the new Yamuna Expressway connecting Noida to Agra
?12 kms from proposed international airport at Jewar in UP
?Sikandarabad – the neighboring Developed Industrial City is < 30 KM from the FTWZ
?Tughlakabad – 80 kms
Distance of Khurja City from our site is 1.5 Kms
FTWZFTWZDelhi (Khurja)Delhi (Khurja)
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Corporate Office:ARSHIYA INTERNATIONAL LTD.
301 Ceejay House, Level 3, Shiv Sagar Estate, F-Block, Dr. Annie Besant Road, Worli, Mumbai 400018, Maharashtra, India.Ph: +91 22 4230 5500 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
ARSHIYA INTERNATIONAL LTD.
[email protected] www.arshiyainternational.com
To know more about getting started, please write in to us at [email protected]
Arshiya's Planned FTWZ Footprint