Air Cargo - India

July 2009

Executive Summary
Market valued at INR X bn in 2007-08; Expected to grow at x% p.a. Cargo transported is dominated by pharma, textiles fashion goods, telecom, IT hardware, gems and machinery parts x % of all cargo is transported as belly cargo in domestic airlines International operations expected to grow at x% p.a. while domestic operations expected to grow at x% p.a. by 2011-12

Market

Drivers Drivers & Challenges

Strong macroeconomic fundamentals Growth in retail Development of transportation system Growth in clearing and forwarding agents

LE P M A S
AA UU

Challenges
Rising air traffic fuel (ATF) prices Growing congestion at airports Delays in cargo handling & clearance

Government Initiatives

Changing FDI policy to attract investors Introduction of the Open Sky policy Various bi-lateral agreements Large scale investment to develop infrastructural capabilities Many domestic and international players have entered the market in order to capitalize on the growing opportunities
Domestic Players International Players BB VV CC WW DD XX

Competition

AIR CARGO INDIA . PPT

Introduction Market Overview Drivers & Challenges Government Initiatives Competition Key Developments

AIR CARGO INDIA . PPT

Air cargo traffic in India has been growing due to strong domestic demand and rising international trade
Overview
Air cargo market is estimated to grow at x% p.a. and reach INR X bn by 2011-12 Largely dominated by pharmaceuticals, textiles fashion goods, telecom (like mobiles), IT hardware, gems and machinery parts which are time critical x % of all cargo is transported as belly cargo in domestic airlines

Market Size and Growth

INR bn
150 100 50 0

Growth Rate of Modes of Transportation

Air Import Cargo Ports (cargo) Railway (freight) Air Export Cargo z% v% y%

LE P M A S
V x%
000 tonnes
2,000 1,500 1,000 500 0

x% Y W X

2007-08

08-09e

09-10e

10-11e

11-12e

Cargo Traffic
Domestic International D A B C E F G

Air cargo observed the highest growth in the cargo transportation sector (2007-08)

2001-02 Source: AIR CARGO INDIA . PPT

02-03

03-04

04-05

05-06

06-07

07-08

Cargo Terminals: International

Location: Chennai
Overview
Established Area Export Wing Covered Area Build up Stations Cargo Apron Capacity Import Wing Covered Area Perishable Cargo Facility Total Area Cold Chambers x sq. m. X sq. m. each, 0 -4 C Examination: x sq. m., 12 -18 C Work Station: x sq. m.,7 ton capacity o o Receiving Area: x sq. m., 15 -18 C
o o o o

Cargo Traffic
Feb 1, 19-x sq. m. Export

X sq. m. x manual

x wide bodied aircrafts with ULD parking area, hydrant refueling set-up

LE P M A S
000 MT
300 200 100 0

Import +13% C D E F G

2001-02 02-03

03-04

04-05

05-06

06-07

07-08

08-09

x sq. m.

Infrastructure and Developments

x airport terminals with one dedicated to cargo flights; equipped with modern cargo handlers such as forklifts and power hydraulic pallet trucks. A new Integrated Cargo Terminal
This is being planned and is expected to span over x sq. m. and Phase 1 has been commissioned

Other Sections

Expansion of the airport is expected and is going to be constructed in Sriperumbudur taluk at an investment of INR X bn
5

Source: AIR CARGO INDIA . PPT

Drivers and challenges

Challenges Drivers
Strong Macroeconomic Fundamentals Growth in Retail Development of Transportation System Growth in Clearing and Forwarding Agents Rising Air Traffic Fuel (ATF) Prices Growing Congestion at Airports Delays in Cargo Handling & Clearance

AIR CARGO INDIA . PPT

Government has taken various measures towards developing this segment by introducing major changes in the FDI policy
Sector Cargo and Nonscheduled Airlines Greenfield Airports Policy Hiked to x% FDI from the initial permissible rate of y% FDI up to x % is permitted through automatic approvals FDI up to x % is permitted through automatic approvals and up to y% with special permission from FIPB x% FDI is allowed in domestic airlines under the automatic route (but not by foreign airline companies) y% equity ownership by Non-Resident Indians (NRIs) is permissible x% FDI in maintenance, repair and overhaul (MRO) organizations, flying training institutes (FTIs) and helicopter services y% tax exemption for airport projects for a period of X years in order to attract investors

FDI Policy
Existing Airports

Domestic Airlines

Others

SAMPLE
Source: AIR CARGO INDIA . PPT

Domestic Players (1/10)

Company Snapshot: ABC Ltd
Corporate Information
Headquarters Founded Fleet Size Parent Subsidiaries Key People New Delhi 19-X ABC N.A.

Financial Performance

Mr.-- (Founder) Mr. -- (Owner, Jet Airways) Mr. -- (CEO)

Business Highlights

LE P M A S
30,000 20,000 10,000 0
Tonnes/day
70 60 50 40 30 20 10 0

Revenue INR mn X

Revenue Profit / Loss Y Z

Profit INR mn
0

-2,000 -4,000 -6,000

2005-06

06-07

07-08

Operational Performance
Average Weight Load Factor Cargo Carried D B A C E F %
80 60

It expanded its operations by introducing new daily flights between Delhi-Srinagar via Jammu and Mumbai-Srinagar Plans on introducing flights between Dubai-Nagpur as Nagpur is expected to become a major logistic hub in India Cargo carried ranges from carriage of various perishables, household pets, life saving drugs, valuables and general goods
Source:

40 20 0

2001-02

02-03

03-04

04-05

05-06

06-07

07-08

AIR CARGO INDIA . PPT