SOLMAZ Opportunities in IndiaSubmitted to Prof. Lipi DasFaculty of Information Technology IMT Ghaziabad

By Group 2:Abhishek Sharma (12EX-002) Arjun Mukundan (12EX-008)Gaurav Singh(12EX-017)Puneet Garg (12EX-036)Pankaj Kumar (12EX-060)Umesh Gupta (12EX-053)

Agenda – RQ2

“Review Solmaz company profile and match business investment or business participation opportunities within India (mapping Solmaz experience & capabilities versus service/product gap in India-opportunity). “

Indian Scenario High demand for basic and specialized logistics management,

at local and cross-border levels. Foreign direct investment (FDI) leading to better logistic

proficiency. According to a Cushman & Wakefield report,

“India’s logistics industry is expected to grow at 15-20% per annum, reaching revenues of US$ 385 billion by 2015.”

Current state-level value added tax (VAT) to a national and uniform Goods and Services tax (GST).

India currently spends 12-13% of its GDP on logistics.

World Economic Forum - Outlook on the Logistics & Supply Chain Industry 2012.

Growth Drivers

Report: Adding Wheels-Investing in the Indian transportation & logistics industry-2010-KPMG

Growth in Indian economy, key user sectors and International trade.

• Growth in International Trade

Rise in outsourcing and consolidation

• India currently outsource an estimated 52 percent of their overall transportation & logistics activities

Rapid supply side changes enabling positive service experiences and true value additions

• Widespread adoption of warehouse management systems, GPS-enabled fleets

Growth Drivers – Contd..

Regulatory changes are driving private participation and efficiency improvements.

• Goods and service tax (GST) – Uniform Tax Regime across India. • Government incentives/tax breaks to food processing parks, cold warehouses. • Privatization of the container rail segment and public-private partnership (PPP)

programs.

Significant government spending on infrastructure:

• Indian government has earmarked about INR 50,000 billion according to the XII Five Year plan (2012-17) double to that of XI Five year Plan (2007-12) for infrastructure investment.

Industry Perspectives - India

Indian Retail Industry – Green Practices

 Indian retail segment 22 % of India's GDP. 8 % of total employment.

As per PwC, India's retail sector is worth US$ 350 billion and is growing at a compound annual growth rate (CAGR) of 15 to 20 % at present.

Major categories: Phasing-in/out items Promotion items Purchasing driven items Capacity driven items Regular items

Major Players:

Paint Industry According to CMIE, Segments:

Decorative Paints Emulsions, Enamel paints, Distemper  Cement paints

Industrial paints Automotive coating, Powder coating and Coil coating.

As per RNCOS Research Solutions: “Market Growth of paint industry would be about $200 -

$400 million per year over next 5 years. 15 – 17% Growth Rate per annum.”

Top Organised Players: Asian Paints, Kansai Nerolac, Berger Paints and ICI

Process Industries Industry

Businesses that add value to materials by mixing, separating, forming or chemical reactions.– petroleum, chemicals, pharmaceutical and other

industries that provide products from a chemical process.

Pharmacy Industries Indian Pharmaceutical Industry

Grown to US$ 13 billion in 2011 from US$ 11.4 billion in 2010 with a pace of 15%.

Ranks 3rd in terms of volume and is 14th in terms of value globally.  Total turnover expected to reach US$19.22 billion by 2012. Major Players: Ranbaxy, Cipla, Sun, Cadila Healthcare & Piramal

Healthcare.  Opportunities:

Transferring of Temperature Sensitive Drugs. Improved “Last Mile Connectivity”. State of cold storages is poor.

http://www.indiapharmaceuticalsummit.com/

Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers

Handicraft Industries

Industrial revolution and the increasing productivity had slowed down the

growth and the quality of crafts, but for last some decades now, the

scenario has changed a lot and machine-made products no longer

attracting the people.

Presently, they have opted for style statement and the leisure pursuit.

In modern India, the crafts and crafts peoples have a vital role to play in

modern India – not just as part of its cultural and tradition, but as part of its

future economic of India

Supply Chain Opportunities

Various modes and infrastructure segments and supply chain across bulk,

non-bulk segments and 3PL (Third party logistics) opportunities exist in

India comprise the following

Demand and Growth Drivers

Industry SWOT

Infrastructure Opportunities

Infrastructure Opportunities

Transportation… Transportation refers to the movement of product from one

location to another as it makes its way from the beginning of a

supply chain to the customer’s handle.

Unavoidable Cost…

No Body Wants to Pay for it, Extra Burden for the Consumer

Affect the responsiveness of system

Warehouse Location To Show your complete presence in 28 States, 32.8L Sq KM,

a Solomaz should have

1250+ Warehouse

There is no any independent player in the Indian Industry,

Mostly are offering service with the help of JV with small

vendors.

More than 450+ small significant players are present, with

whom SOLOMAZ can work with them

Exact warehouse location will depend upon the nature of

business

Air Ports Future Ahead…. In India, Around 220+ Airport projects are running under the Various Governing

Bodies of Govt. India

Majority of Air Ports are running under the following segments

Customs

Defense

Domestic

International

Private

Sudden increase in air traffic Indian Government has proposed 26 new air ports

across the country.

26 New airport projects are under the pipeline.

Few Additional air ports are increasing their capacity so in future some of the

domestic air port will be working as custom or as defense or a mixture of both.

Air Ports Future Ahead….

Most of the Indian city have sufficient infrastructure to support air

traffic.

25 Airports are working either as a AirField or as a Flying School

Future Incoming Projects are…

State No of Airports (Proposed)

Andhra Pradesh 6

Karnataka 6

Maharashtra 4

Kerala 2

Chandigarh 1

Chhattisgarh 1

Puducherry 1

Sikkim 1

Tamil Nadu 1

Uttar Pradesh 1

Uttrakhand 1

West Bengal 1

Proposed Airports…

Proposed Airports…

Strategic Warehousing locations

Development of warehousing sector

Investments in logistics parks and free trade warehousing

zones (FTWZs) by Government & Private companies

Warehousing (Development and Regulation) act 2007 (with

effect 25th Oct 2010) improved the infrastructure

development in the warehouse segment

Strategic Location

Near airport, railway or coastal areas

Near industrial buildings or places

where customers can have easy access

Strategic Warehousing locations

Depending on business Strategy , Solmaz may have following

distribution system

Typical supplier-warehouse-consumer deal

Internet based consumer distribution system

warehouse / retail outfit deal

Comply with the Warehousing Development and Regulatory

Authority (WDRA) before applying for any warehouse tenders in

India

Stringent regulations in airport & coastal area

High value shipments (Opportunities)

The gems and jewelry sector has been one of the fastest-growing

sectors in India

Sector has gained global popularity because of talented craftsmen

and it has increased the rate of high value shipments in India

Fedex & Bluedart are the market leader for high value products shipment

in india

Refrigerated Product Movement (Opportunities)

Due to temperature sensitivity need special arrangements or

planning starting from warehouse to the delivery of products to the

end customers

Advantage of the dual development of the extension of supply

chains supported by globalization and the significant variety of

goods in circulation

Strategy regarding Setting and Organization of Cold Chains to

move these shipments concerns several phases

Shipment preparation

Model choice

Custom procedures

Integrity and quality assurance

Freezing technique

Method of preserving food by lowering the

temperature to inhibit microorganism growth

Types Of Freezing Contact freezing Air blast freezing.

Contact Freezing Contact freezers are most basically

referred to as plate freezers.

Contact Freezing Contact freezers typically have low

operation costs. Types : Vertical plate(for seafood) Horizontal plate(for packed food) Generally temperature is 0 to -30° F One package size can be

accommodated at a one at time

Air blast freezing Air blast freezers are categorized in two

varieties: 1. Batch 2. Continuous A blast freezer of this type is often consist of a

small room that can be closed off from the rest of the system

A rack system is used for holding the product in a preset geometric array structure during freezing and a powerful air-cooling unit is present there.

Air blast freezing

Storage turnover

Is the basic factor determines:

1. layout design of the storage

2. Amount of product to be held

3. Duration

Storage volume turnover=annual product received/total

amount of product in storage facility

 

Thank you