market research report : reverse logistics market in india 2012
DESCRIPTION
For the complete report, get in touch with us at : [email protected] Government concern for sustainability and manufacturers continuous endeavor to garner customer satisfaction are the key drivers of reverse logistics. Significance of reverse logistics is perceived from both economic as well as environmental perspective. To state it simply, reverse logistics stands for any operation that involves the reuse of damaged or faulty products after its refurbishment. The report begins with an introduction section that gives a total overview of the logistics sector and its components. Thereafter, the section provides an elaborate understanding of reverse logistics as a service that the process of planning, implementing and controlling the efficient and cost effective flow of raw materials, in-process inventory, finished goods and related information, from the point of consumption to the point of origin, for the purpose of recapturing value of proper disposal. It also covers the difference between forward and reverse logistics for a clear understanding. The introduction section is then followed by the market overview of reverse logistics market. The section demonstrates the current market size along with forecasted market size and growth rate that would be prevalent in the market till 2016. The section also deals with percent demand acquisition from the four zones of India along with the highest reverse logistics demanding sectors.TRANSCRIPT
Insert Cover Image using Slide Master ViewDo not distort
Reverse Logistics Market – India
December 2012
2
SAMPLE
Executive Summary
Market
Need for Reverse Logistics
Drivers & Challenges
Competition
Drivers Government Concern for Sustainability
Garnering Customer Satisfaction
Growing Consumerism among Indians
Economic Viability of Reusing Goods
Challenges Low importance given to returns management
Infrastructural bottlenecks
Warehouse space deficit
REVERSE LOGISTICS MARKET IN INDIA 2012.PPT
• The Indian logistics market comprises approximately A% of the global logistics market in value terms• The reverse logistics market is currently valued at INR X1 bn and is expected to reach INR X2 bn in 20‐‐ at a CAGR of X%
• The reverse logistics market is currently experiencing a major share of demand from A zone of India followed by B zone of India
• Possible Reasons for Return of Goods• Reverse Logistics – With and Without• Reverse Logistics Significance • Reverse Logistics – Needs and Associated Benefits
SectoralSnapshots
• Retail Market • Electronics Market
• Automobile Market • Pharmaceutical Market
Player HPlayer GPlayer FPlayer E
Player DPlayer CPlayer BPlayer A
Key Players
3
SAMPLE
• Introduction
• Forward & Reverse Logistics: Comparison
•Market Overview
•Distribution Channel
•Need for Reverse Logistics
• Reverse Logistics Models
• Industry‐wise Outlook
•Drivers & Challenges
• Key Issues
• Technology Adoption
• Recent Trends
• Competition
• Strategic Recommendations
•Appendix
REVERSE LOGISTICS MARKET IN INDIA 2012.PPT
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SAMPLE
Logistics primarily deals in transportation and storage operations and is significantly aided by value added services
•The logistics sector comprises 3 major segments – Transportation, Storage and Value‐added services•The growing Indian economy has a positive impact on players operating in storage and value‐ added services segments, while in the transportation segment, container train and project logistics is projecting a promising future outlook
TRANSPORTATION
Container Rail Transport
STORAGE
Road Transport
Express Logistics
Coastal Shipping
Cold Chain
Project Logistics
Modern Warehousing
Logistics Park
Inland Container Depot
Container Freight Station
Port
Freight Forwarding
3PL/4PL
Courier Services
LOGISTICS SECTOR
VALUE ADDED SERVICES
Reverse Logistics
REVERSE LOGISTICS MARKET IN INDIA 2012.PPT
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SAMPLE Need for reverse logistics is conceived primarily from economic and environmental perspectives
Process of planning, implementing and controlling the efficient and cost effective flow of raw materials, in‐process inventory, finished goods and related information, from the point of consumption to the point of origin, for the
purpose of recapturing value of proper disposal
Process whereby companies can become more environmentally efficient through recycling, reusing, and reducing the amount of materials used
Economic Perspective
Environmental Perspective
REVERSE LOGISTICS
REVERSE LOGISTICS MARKET IN INDIA 2012.PPT
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SAMPLE
Reverse logistics market is on a gradual growth path with manufacturers realizing its significance
•The Indian logistics market comprises approximately f% of the global logistics market in value terms•Growing Indian economy is having a strong impact on both forward as well as reverse logistics Industry experts are of the opinion that approximately 4% to 40% of products go through a return journey India has recorded an approximate return rate of m%
•The reverse logistics market is estimated at INR X1 bn in 20‐‐ and is expected to reach INR X2 bn in 20‐‐ at a CAGR of X%•Automotive, retail, pharmaceutical and electronics are key sectors driving the demand for reverse logistics Business houses spend approximately e‐f% of their logistics expenses on reverse logistics
• Reverse logistics essentially encompasses customer pick‐up, call center management of returns, warranty management, repairing, refurbishing, repacking of returned items, and resale of refurbished items to the end customer
Market Overview
0
500
1,000
1,500
INR units
X%
20‐‐e
X6
20‐‐e
X5
20‐‐e
X4
20‐‐e
X3
20‐‐e
X2
20‐‐
X1
Market Size and Growth (Value‐wise)
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SAMPLE
Economic and environmental perspectives associated with reverse logistics…
Reverse logistics by non‐governmental
organizations (NGOs)
•Public interest organizations are operating in this space towards reusing and disposing
low value goods such as municipal waste which is expensive to recycle
•Opportunity exists for NGO’s as it becomes extremely difficult for the government to
solely mobilize all waste material through reveres logistics
•Example ‐ SAAHAS, a Bangalore based voluntary organization, is committed to finding
solutions to problems related to solid waste management
• In this mode, reverse logistics is established and managed by large manufacturers who have the resources and available finances to execute its operations in this space
•Goods covered under reverse logistics operations include product returns (inventory returns, warranty returns, damaged goods), product recalls, recycling, reuse of materials, waste disposal, repair and remanufacturing
•Large amounts of initial investment is need to set up this huge and fragmented kind of self owned reverse logistics operations
•Example ‐ Future Group has its own logistics setup which is providing reverse logistics services to its indigenous companies including Big Bazaar, Pantaloon etc.
Corporate self owned
reverse logistics
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SAMPLE Industry‐wise Outlook – Summary
Pharmaceutical Industry
Retail Industry
ConsumerElectronicsIndustry
Auto Industry
CURRENTLY OPERATIVE
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SAMPLE
Consumer electronics and durables segment is enjoying increased demand due to technological advancements
Electronics Market – Overview
• The consumer electronics and durables market is growing at a phenomenal pace
• Young demographic population, rising disposable income, easy finance options along with growing prominence of consumer electronics retail stores and online retail industry are the key drivers for the industry
Consumer Electronics and Durables
0
200
400
600 B
20‐‐
A
INR bn
M%
20‐‐e
C
0
5,000
10,000
15,000
20,000
‘0007%
20‐‐
S2R2Q2
P2
20‐‐
S1R1
Q1
P1
SRQP
Sales Trends in Consumer Electronics
Consumer Electronics and Durables Market Segmentation
White BrownConsumer Electronics
•Air Conditioners
•Refrigerators
•Washing Machines
•Microwave Ovens
•Chimneys
•Fans
•Electric Irons
•Juicers
•Mixer and Grinders
• Television sets
• Set Top Boxes
• Audio and Video Players
• Personal Computers
• Laptops and PCs
• Cell Phones
• Digital Cameras
• Camcorders
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SAMPLE
Forward and Reverse Supply Chain in Electronics Sector
Raw Material
Part Fabrication
Assembly
Parts Assembly
Distribution
Consumers
Refurbish
Forw
ard Logistics Flow
in Electronics Sector
Reverse Logistics Flow
in Electronics Sector
Remanufacture
Recycle
Landfill
Secondary Markets(in case of resell due to outdating)
REVERSE LOGISTICS MARKET IN INDIA 2012.PPT
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SAMPLE
Drivers & Challenges – Summary
Drivers
Government Concern for Sustainability
Garnering Customer Satisfaction
Growing Consumerism among Indians
Economic Viability of Reusing Goods
Challenges
Low Importance Given to Returns Management
Infrastructural Bottlenecks
Warehouse Space Deficit
REVERSE LOGISTICS MARKET IN INDIA 2012.PPT
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SAMPLE RLMS addresses core reverse logistics requirements that help in easy identification and repair of defective products
Reverse Logistics Management System (RLMS)
Process and Benefits
• Improved customer satisfaction
•Reduced Turn Around Time
•Advanced planning in warehouses
•Reduced transportation costs
•Advanced tracking functionality
•Decision‐making on product types and easy identification of defective parts
•A web‐based application that captures all commodity related information from warranty to final disposal• It is a configurable and scalable solution that enables after sales management of goods sold•Cost of installation depends on the number of users and operation period allotted by the client company – the cost may range anywhere between INR 1.5 mn to INR 4 mn as per the requirement
•The RLMS can be installed by either the manufacturing company or by reverse logistics service provider
ProcessBe
nefits
REVERSE LOGISTICS MARKET IN INDIA 2012.PPT
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1,600
18,000
Net Profit/Loss
‐2,000
400
2,000
200
4,000
0
6,000
‐200
8,000
‐400
Total Income
20,000
600
800
10,000
1,000
1,200
1,400
12,000 14,000 16,0000
Player C
Player B
Player A
Player CPlayer BPlayer A
Size of the Bubble represents Market Capitalization in INR units
Major Private Companies – Summary
SAMPLE
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SAMPLE
Key People
Products and Services
Company Information Offices and Centres – India
Corporate Address
Player A
5th Road, 6th Street,
City A – 700 xxx
Tel No. 91 22 6679 xxxx
Fax No. 91 22 6679 xxxx
Website www.playera.com
Year of Incorporation 19‐‐
Ticker Symbol 53xxxx (BSE)
Stock Exchange Bombay Stock Exchange
Name Designation
Person A MD
Person B CFO
Person C CEO
Head Office
Public: Domestic Company – Player A (1/3)
City X
Category Products/Services
Freight forwardingProvides air, sea and road freight forwarding services
LogisticsPlanning and implementation of supply chain solutions
Warehousing and Distribution
Provides facility management, inventory management and material management solutions
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SAMPLE
Financial Snapshot Key Ratios
Financial Summary
• The company incurred a net loss of INR d units in FY 20‐‐, as compared to net loss of INR c units in FY 20‐‐
• The company reported total income of INR R4 units in FY 20‐‐, registering an increase of m% over FY 20‐‐
• The company earned an operating margin of f% in FY 20‐‐, an increase of g percentage points over FY 20‐‐
• The company reported debt to equity ratio of d in FY 20‐‐, a decrease of h% over FY 20‐‐
Net Profit/LossTotal Income
INR units
‐20
‐40
‐60
‐80
INR units
250
200
150
100
50
020‐‐
dR4
20‐‐
cR3
20‐‐
b
R2
20‐‐
a
R1
Private: Foreign Company – Player A (2/3)
Particulars y‐o‐y change (20‐‐to‐‐)
20‐‐ 20‐‐ 20‐‐ 20‐‐
Profitability RatiosOperating MarginNet MarginProfit Before Tax MarginReturn on EquityReturn on Capital EmployedReturn on Working CapitalReturn on AssetsReturn on Fixed Assets
Cost RatiosOperating costs (% of Sales)Administration costs (% of Sales)
Interest costs (% of Sales)
Liquidity RatiosCurrent RatioCash Ratio
Leverage RatiosDebt to Equity RatioDebt to Capital RatioInterest Coverage Ratio
Efficiency RatiosFixed Asset TurnoverAsset TurnoverCurrent Asset TurnoverWorking Capital TurnoverCapital Employed Turnover
Improved Decline
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SAMPLE
Key Business Segments Key Geographic Segments
Business Highlights
Description News
Overview
Recent Transactions
Reverse Logistics
0%
50%
100%
20‐‐
A
0%
50%
100%
20‐‐
B
XX
Private: Foreign Company – Player A (3/3)
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Appendix
Ratio Calculations
Operating Margin (Operating Income/Revenues)*100
Net Margin (Net Profit / Revenues) *100
Profit Before Tax Margin (Income Before Tax / Revenues *100
Return on Equity (ROE) (Net Income / Shareholders Equity)*100
Return on Capital (ROCE) EBIT / (Total Assets – Current Liabilities)*100
Return on Working Capital (Net Income / Working Capital) *100
Return on Assets (Net Income / Total Assets)*100
Return on Fixed Assets (Net Income / Fixed Assets) *100
Operating Costs (% of Sales) (Operating Expenses / Sales) *100
Administration Costs (% of Sales)
(Administrative Expenses / Sales) *100
Interest Costs (% of Sales) (Interest Expenses / Sales) *100
Ratio Calculations
Current RatioCurrent Assets / Current Liabilities
Cash Ratio{(Cash & Bank Balance + Marketable Securities) / Current Liabilities)}
Debt to Equity Total Liabilities / Shareholders Equity
Debt to Capital Ratio{Total Debt / (Shareholders Equity + Total Debt)}
Interest Coverage Ratio EBIT / Interest Expense
Fixed Asset Turnover Sales / Fixed Assets
Asset Turnover Sales / Total Assets
Current Asset Turnover Sales / Current Assets
Working Capital Turnover Sales / Working Capital
Capital Employed Turnover Sales / Shareholders Equity
REVERSE LOGISTICS MARKET IN INDIA 2012.PPT
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REVERSE LOGISTICS MARKET IN INDIA 2012.PPT