19 March ’07 Sical Presentation - ACE Analyser Meet/120086_20070319.pdf · It focuses on containerised logistics across India and operates and manages CFS at Chennai, Vizag, and

19 March ’07 Sical Presentation

SSKI Investor Meet, Singapore

Sical Growth Strategy

Scheme of Presentation

• Company overview

• Business segments

• Restructuring process

• Way forward

South India House, Armenian St, Chennai


Legacy of Sical

• Founded by Late Dr.M.A.Chidambaram in 1955

• M.A.Chidambaram was the pioneering entrepreneur who introduced a slew of engineering products, including importantly, two wheelers and three wheelers into India

• Sical went public in 1981 and is listed in BSE and NSE

Dr.M.A.Chidambaram

Sical pioneered

Techno – innovations

in Chennai port


Evolution of Sical

Focused growthDiversified Businesses

Offshore Logistics

12%

Container Logistics

16%

Inland Logistics

20%

Building Material

8%

Bulk Logistics

9%

Manfag5%

Marketing22%

Eng1% Mfg,

7%

Note: Includes revenues from PSA-SICAL & SICAL Distriparks

Offshore Logistics

16%Bulk

Logistics47%

Inland Logistics

21%

Container Logistics

16%

Non Logistics businesses


Mission, Vision, Values

Mission

To deliver integrated multimodal logistics services by a highly motivated team using best practices and technology ensuring a dominating customer experience

Vision

To be the most preferred integrated multimodal logistics services provider in bulk and container logistics in India with global presence

Goal

To become a billion dollar company by 2012

Values

• People

• Service

• Profit


Sical Logistics Limited – Overview

BULK LOGISTICS

Port handling

Coal Terminal

Iron Ore Terminal

CONTAINER LOGISTICS

Container Terminals

CFS & ICDs

INLAND LOGISTICS

Trucking

Warehousing

OFFSHORE LOGISTICS

Offshore Supply Vessels

Bergen Offshore






• Way forward


Port Handling involves loading and discharging cargo to/from vessels to docks during import and export trade

Sical continues to be the largest bulk cargo handling service provider in the sub-continent by volume

Present in all the major Indian ports – Chennai, Tuticorin, Vishakapatnam, Nhavasheva/Mumbai, Kandla, Haldia, Paradip, Goa, and also at several minor ports

Exclusive cargo-handling berths at Chennai Port for 20 years

Sical offers Customs House Agency & Shipping Agency services, apart from port handling, as a complete logistics solution to its customers

Port handling represents a total revenue of Rs. 2.2 Bn in FY06 with an EBITDA margin of 16.5%

Bulk LogisticsPort

HandlingCoal Terminal

EnnoreSical Iron

Ore Terminals Ltd

Segmental Revenues (INR million), 2006

Key Customers

Coal, 1411.6

Other Bulk, 281.4

Iron Ore, 69.7

Cement, 9.7

Fertiliser, 84.9

Steel, 288.2


Port HandlingBulk Logistics

Coal TerminalEnnore

Sical Iron Ore Terminals Ltd

Sical has entered into a 20 year BOT contract with Tamil Nadu Electricity Board (TNEB) for handling coal at Ennore port

Project operations started in June 2002, and the concession period is up to 2022

Sical have to unload the coal at Ennore port and transport it to the adjoining power plant via a conveyor system

Sical has made a total investment of Rs.900 million and has installed 2 ship-unloaders and a mobile hopper. The total discharge capacity is 8,000 TPH

The Company makes an EBITDA margin of 24%, which is expected to stabilise at 20%

The current coal requirement is 8 million tons p.a., and all the coal reaches TNEB through Ennore port

TNEB has 3 thermal power generation plants that are serviced by Ennore coal terminal

Ennore (450 MW)

North Chennai (630 MW)

Mettur (840 MW)


Coal TerminalEnnore

Sical Iron Ore Terminals Ltd

Port Handling

Sical Iron Ore Terminals Limited (SIOT), a SPV of Sical led consortium would implement the project of establishing a Common User Iron Ore Terminal on BOT basis and operate the same for a period of 30 years.

The proposed Ennore Iron ore terminal would be the largest in Asia with an initial capacity to handle 12mn MT, with a stack yard of 1.2 million tons.

Concession agreement has been entered with Ennore Port

Detailed Project Report has been submitted by SIOT to the port

Terminal would be operational from 2009

Project cost is Rs 4800 million

Export potential at Ennore terminal is expected to increase to 15mn MT annually by 2012

Bulk Logistics


Port Handling Coal TerminalEnnore

Sical Iron Ore Terminals LtdBulk Logistics

Name of equipment Number

Ship Loader 1 5000 TPH

Stacker 2 4000 TPH

Reclaimer 2 5000 TPH

Wagon Tippler(fully covered with dust suppression and extraction system)

2 1800 TPH25 to 30 Tipples/ hr

Conveyor system

Tippler to Stockpile feeder conveyorStockpile cross conveyors

33

Fully enclosed with dust suppression systems4000 TPH5000 TPH

Railway yard To accommodate 3 loaded and 3 empty rakes

Capacity

Ship Loader

Wagon TipplerWind barrier plantation around the site, rain water harvesting

and a settling pond are also provided for.


Sical Distriparks Limited is a 90% subsidiary of SICAL and associates.

It focuses on containerised logistics across India and operates and manages CFS at Chennai, Vizag, and Tuticorin

Sical Distriparks has a 55 acre CFS facility in Chennai, including reefer storage & bonded warehouses.

Services offered include container yards, bonded and general warehousing, and third party logistics (3PL)

Company has an exclusive contract with Maersk for en bloc movement for 3 years

It handled 59,169 TEUs during FY2005-06

The main commodity handled are waste paper, metal scrap & auto parts

Revenues for FY2005-06 was INR 20.76 Crore against INR 10.60 Crore in the previous year. The profit before tax was INR 3.69 Crore

Container Logistics

Key Customers

PSA SICAL Sical Gupta Logistics Ltd

Sical Distriparks

Container RailCompany Ltd

Container Freight Station, Chennai


Containerised Cargo Handled

254

307321

2004 2005 2006

SICAL holds 37.5% stake in the JV (62.5% - PSA Corporation of Singapore) in PSA Sical.

Has bagged 30 year contract to equip, operate and manage Tuticorin Container Terminal

PSA International Pte Ltd, a global leader in the ports and terminals business, with investments in 20 port projects in 11 countries.

PSA SICAL manages container terminal at Tuticorin since 1999.

PSA SICAL has recently bagged the contract to operate second container terminal at Chennai.

Revenue in FY 2005 was Rs.66.14 crore against Rs.63.07 crore in the previous year.


Sical Distriparks


(‘000 TEUs)

Container Logistics


Multimodal International Hub Airport at Nagpur (MIHAN)

Sical-led consortium has won the bid to build railway and road terminals at the international airport hub at Nagpur on B-O-T basis. The lease period is 66 years

Facilities include a container freight station with rail siding and handling infrastructure for bulk and containerised cargo

The initial planned capacity is 50,000 TEUs

The terminal is expected to be operational in the first quarter of FY2008-09

Planned facility


Sical Distriparks


Area (sq mtr) ICD Rail Yard Domestic Shipment

Warehouse 3,740 imports3,740 exports3,740 Bonded

Nil 15,120

Paved areas 50,000 21,000 7,332

Open Storage Areas

20,700 Nil 10,050

Location of MIHAN

Container Logistics


Amritsar

Delhi

Indore

NagpurKolkata

Vizag

KakinadaGunturBangalore

Chennai

Mumbai

Mundra

Hazira

Pipavav

Trunk route

Secondary route


Sical Distriparks

Container RailCompany LtdContainer Logistics

Container Rail ProjectSical had procured all-India license for operating container trains for 20 yearsSical would operate container trains and build rail linked ICDs to ensure integrated logistics solutionsSical has identified Attipattu near, Chennai and Devengunthi near Bangalore for developing Multi-modal hubs Rail linked container terminal with rolling stock would be established at MIHAN NagpurThe company plans a first phase 3-year investment of Rs 3,750 million, of which Rs 500 million has already been paid to government as license feeThe investment will go towards developing rail sidings at inland locations, container depots and investments in container rolling stock and handling equipmentThe proposed terminals would be operational by 2008


Inland Logistics

Sical is one of the major operators in the South Indian trucking industry, transporting over 7,500 MT of cargo daily

Cargo transported includes dry bulk, liquid bulk, ODC, project equipment and hazardous chemicals

Currently, Sical owns a fleet of about 481 vehicles (58 specialised and 423 conventional tippers, trucks and tankers) and regularly contracts a fleet of about 2,000 vehicles on workhire basis

It has introduced GSM/GPS systems for high value cargo carrying trucks to track these vehicles on a real-time basis

Sical has a long term contract with Shell for transporting the petroleum products

Sical has ear-marked Rs.50 Crore for procuring 300 double-axle trucks and tankers as part of its expansion plans

Trucking Warehousing

Existing Operations

Key Customers

Steel24%

Others22%

Fertilizers41%

Cement13%


The warehouse division serves as a captive warehouse of Spic catering to its fertilizer division and carrying out Trucking & Warehousing activities from packaging to the delivery at dealer point.

Sical has 103 warehouses at different locations of Tamilnadu, Andhra Pradesh, Karnataka, and Kerala.

Existing Facilities

Covered Warehouses – Hire – 306235 Sq.Ft

Covered Warehouses – Own – 215577 Sq.Ft

Open Plot - Own – 420000 Sq.Ft (approx)

Rented Warehouses

1 godown / compartment, 30317 Sq.Ft is rented out to Albert & Co, for storing imported fertilizer.

1 godown / compartment, 15292 Sq.Ft is rented out to Aaruran Sugars.

4 compartments (67908 Sq.Ft) are rented out to Villavarayar & sons for storing wheat.

Value added services include bagging and packing, palletizing, strapping, and shrink packing

Inland LogisticsTrucking Warehousing

Key Customers

53

25

1411

Tamilnadu AndhraPradesh

Karnataka Kerala

Planned facility


Offshore Logistics

Bergen OffshoreLogistics Pte LtdOffshore Logistics

Key Customer

Sical’s offshore venture is to tap the highly lucrative markets of offshore supply vessels and related servicesAs a strategy, the company has successfully bid and won the offshore support services contract from ONGCThe present scope of operations include providing Operations and Maintenance (O&M) services to the fleet of 15 offshore vessels of ONGCSical has an office and workshop in Kakinada to service dry docking and maintenanceIt has a Quality Assurance system and a working HSE program currently in place within the organisation, which is ISN certified.Sical Logistics is compliant with ISPS and all other relevant international and contractual requirements.


Offshore Logistics

Bergen OffshoreLogistics Pte LtdOffshore Logistics

Sical acquired Bergen Offshore Logistics Pte Ltd to provide high-end offshore logistics services to the global energy and heavy engineering sectors

Bergen Offshore one Platform Supply Vessel (PSV)

The acquisition of Siem Mollie, acquired from Siem Offshore SA, Norway, is the first acquisition of a new build offshore PSV by an Indian company.

Post acquisition, the PSV has been rechristened Sical Torino.

The PSV has been deployed in the North sea region on spot market

The business would target global offshore energy service providers

This is the first step towards global presence in offshore logistics

Bergen Offshore has chalked plans to acquire more offshore supply vessels and dredgers to expand its spectrum of services

Sical Torino






• Way forward


Restructuring Process

Financial restructuring Organisational restructuring

Functional Reorganisation

IDFC Private placement

Demerger of Non Logistics business

Integrated Complete Customer Solution


Financial Restructuring

Rs. 1.1 Billion Equity Infusion by IDFC Private Equity

IDFC Private Equity has offered to invest Rs.1.1 billion in the logistics business

The proposed investment would be through a preferential issues of equity shares

De merger of Non Logistics Businesses

Proposes to de-merge the non-logistics businesses comprising of trading undertakings, services undertaking and coffee plantations

Dis-investment of the Other Non-Logistics Assets

Refractory – VRW to shut down and the land to fetch around Rs. 300 million

Palm Oil – De-merger resulting in Rs.250 million of inflow

Auto Components – Firm Offer for sale of Indrad Auto Components company in the range of Rs. 120 – 150 million

Manufacturing – Actively looking at exiting in chemicals, drums and pipes

Building Material – Large overseas players keenly looking to invest, based on KSA Technopak research. Disinvestment will be in stages, in view of the strategic interest in SICAL’s fleet of trucks and spread of warehouses






• Way forward


Thank You

Contact details :-

Karthik Menon

Sical Logistics Limited

Phone 0091 44 2235 1014

Mobile 0091 98407 07378

Email : [email protected]

Documents

19 March ’07 Sical Presentation - ACE Analyser Meet/120086_20070319.pdf · It focuses on containerised logistics across India and operates and manages CFS at Chennai, Vizag, and