Investor Presentation Aug 2019 1 www.tciexpress.in
Table of Content 1. Business Overview 2. Logistics Industry Overview 3. Financial Performance 4. Way Forward 5. Corporate Governance 2 Strictly Private and Confidential www.tciexpress.in
1. Business Overview 2. Logistics Industry Overview 3. Financial Performance 4. Way Forward 5. Corporate Governance 3 Strictly Private and Confidential www.tciexpress.in
Vision and Mission Vision TCI Express should be a customer oriented, multi-technology, multi specialist transport system in the Indian and International markets, with a proven commitment to excellence in every facet of activity and pursuit of value-based policies to satisfy aspirations of society, customers, vendors, employees, shareholders and the transport industry. Mission L Loved by customers in Indian and International Markets E Express multimodal fastest company A Always ahead of the rest in speed and professionalism D Delight our customers every time E Excellence in service using the latest in technology Reliable to all our customers and respected by all our R stakeholders 4 Strictly Private and Confidential www.tciexpress.in
We Are - Fastest Express Delivery Company in India India’s leading Express logistics player providing Door -to-Door Express Distribution Services Specialized in offering time definite solutions with focus on Tier II and III cities ERP enabled operations, Barcoding on packaging, GPS enabled vehicles and CCTV surveillance Ranked 457 in Top 500 Companies based on Market Cap, as on March 31, 2019 1997 202 40,000 Incorporation Locations Served Countries Served Containerized 5,000 3,000+ 24 Workforce Air Gateways Vehicles Company Branch 700+ 28 Sorting Centre Set Up 5 Strictly Private and Confidential www.tciexpress.in
Why TCI Express? Ranked 457 in Top 500 Companies based on Market Cap, as on March 31, 2019 Asset Light No Franchise: Lowest Cost High Value Cargo Business Model All owned Structure (Low volume, high Branches margins) Containerized Superior API based back- Movement Customer Support end technology Services 6 Strictly Private and Confidential www.tciexpress.in
Asset Light Business Model Key Characteristics • 5,000+ vehicles from 1,500+ vendors and 18 out of 28 sorting centres are on lease • An asset light business model facilitates scalability through partnerships with asset owners Benefits and Competitive Advantages • Does not require large capital expenditure on equipment, • Access to exclusive resources in the value chain, through thus focusing only on investments generating better returns partnership for shareholders • • Operating on a per km-based cost model, improving cost Revitalization of fleet after every 7 years through efficiency and profitability replacement of vehicles 7 Strictly Private and Confidential www.tciexpress.in
Service Offering (95%) B2B Surface Express Domestic Air Express International Air Express Reverse Express • • • • 40,000 Pickup & Delivery Locations Connecting 34 domestic airports Servicing 202 countries Customized Reverse pick ups 3 rd Country billing option • • • • Fully containerized fleet 24hr delivery into Tier 1 cities Effective Return management • • Customized Valued Added Services Multi-modal options for small towns • Time sensitive distribution (5%) B2C Ecommerce Express • Last mile delivery service • Technology driven product • Effective market place handling • Multi- modal network leverage • Value added feature of Cash-on-Delivery • Focus on tier II and III cities 8 Strictly Private and Confidential www.tciexpress.in
TCI Express Network 500+ 700+ Express Routes Company Branches 28 2,500+ Sorting Centres Feeder Routes 50 8 Zonal Offices Regional Offices 708 Districts Served 9 Strictly Private and Confidential www.tciexpress.in
Value Added Services Out of Delivery Area Scheduled Delivery 10 Strictly Private and Confidential www.tciexpress.in
Business Update Industry Vertical Product Mix Surface Express accounts for 86% of Revenue share; Government push to improve road infra would augment TCI Express’ business objective 11 Strictly Private and Confidential www.tciexpress.in
Our Esteemed Clientele – Vertical wise 50 % 50 % Small and Medium Enterprises 12 Strictly Private and Confidential www.tciexpress.in
TCI Express Infrastructure New Age Sorting Centres Package Handling 13 Strictly Private and Confidential www.tciexpress.in
Vendor Management (Fleet) Better Fleet Control, Back up vehicles available without adding per Lane Cost 2,000 Inter-state Vehicles Performance monitoring, Lanes wise Analysis Per KM Model, fluctuates based on Increase/ Decrease of Diesel Prices 1,000 Intra-state Vehicles Always New Fleet, Change vehicle after 7 years of service Control on scheduled Arrival & Departure 2,000 Intra-City Vehicles Working Effectively from last 21 years 14 Strictly Private and Confidential www.tciexpress.in
TCI Express Tech-Vantage Hand Held GPS- Ground Barcoding & RFID Barcoding & RFID Mobile Apps CCTV Surveillance API Terminals Technical Support (Enterprise Resource Planning) (Accuratedispatch & billing) (Scanning for speed & accuracy ) (Real-time shipment visibility) (Higher efficiency & accessibility) (Safety & Security of cargo) ➢ ➢ ➢ ➢ Barcoded Labels Onsite Booking and GPS in all vehicles Mobile App for ➢ ➢ CCTV surveillance Implementation of printed for accuracy Delivery for real time pickup and delivery in all sorting business intelligence ➢ ➢ Barcode Scanning In/Out Scan tracking of packet update at customer centers and main tools such as API’s, of packets for Updating status point pickup and delivery geotagging ➢ ➢ ➢ movement of Dynamic routing Facilitates 24*7 Instant POD ➢ locations Performance packet to exact and misroute alert visibility uploading ➢ Operation Control measurement tool ➢ position. system Services and Business Centre Monitoring and automation Locations Enquiry ➢ for Real Time Oracle ERP enabled ➢ Freight Calculator Corrective Action branches 15 Strictly Private and Confidential www.tciexpress.in
Hub and Spoke Model Customer Branch Customer Branch Branch Sorting Sorting (spoke) (spoke) Centre (Hub) Centre (Hub) Branch Branch Customer Customer Branch A centralized and integrated logistics system • • Increased transit dependability and performance Opportunity for rapid geographical expansion • • Reduced cargo acquisition and transportation cost Better capital efficiency and higher fleet utilization • • Optimize economies of scale at branches and routes Lower carbon footprint 16 Strictly Private and Confidential www.tciexpress.in
Shipment Process Flow- Using Technology 17 Strictly Private and Confidential www.tciexpress.in
1. Business Overview 2. Logistics Industry Overview 3. Financial Performance 4. Way Forward 5. Corporate Governance 18 Strictly Private and Confidential www.tciexpress.in
Express Industry – An Outlook Logistics as % of GDP 60% 14% India GDP $2.7 TN Road $2,726 Bn Total Logistics Spend $360 Bn 31% Rail Indian 15% Road Transportation $210 Bn Logistics Market $13,608 Bn Split Un-Organised Segment 95% 9% Water 8% TCI Express Carries $10 Bn $20,494 Bn 0.1% Air TCI Express Market Share 5% Source : World Bank Database - 2018 Figures, Department of Commerce – Gov. of India 19 Strictly Private and Confidential www.tciexpress.in
Government of India - Logistics Infrastructure Initiatives Road infrastructure development Infrastructure status for logistic Make in India initiatives industry ▪ • • Bharatmala Pariyojna to provide 50 Flagship project of Gov. of India to Easy and economical financing for national corridors transform the country into “Global the industry Surge in private ▪ Government target to increase the Manufacturing Hub” investments • • length of NH to 200,000km Identified multiple key economic Growth of large format warehouses ▪ Development of 15 multimodal sectors for setting up and multimodal logistics parks logistic parks under the Logistics manufacturing bases • Efficiency Enhancement Program Will generate new business opportunities for logistics sector Road Express ▪ Small but Premium and significant segment of the Logistics Industry ▪ Fastest growing segment and expecting 17% Y-o-Y growth in next 3 years ▪ Express industry is expected to receive a fillip from the higher level of consumption demand in the country ▪ Consumption demand in India is expected to grow at 10% annually → Creating additional demand for express industry Key areas for creating a sustainable growth in logistics sector Regulatory Reforms Technological Integration Logistics Infrastructure 20 Strictly Private and Confidential www.tciexpress.in
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