Tuscan Advisory

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    Solutions for the Logistics Entrepreneur

    Tuscan Advisory

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    Introduction to Tuscan

    Investment / Advisory company focused on Logistics, Transportation & Transport Infrastructure

    Incepted in 2007 by Vishal Sharma ex business head of Maersk Line India and Shagun Kapur Gogia, Vice

    President with ICICI Ventures, Indias largest and oldest Private Equity house

    Invested in LCL Logistix (15%) , one of Indias largest third party logistics firms and RSI International(40%), a logistics and shipping focused training firm headquartered in Singapore

    Advises promoters of companies looking to raise private equity or looking to exit their business

    Recognized as Indias only boutique logistics and shipping focused investment & advisory company

    First choice of Investment Bankers, Private Equity funds and financial institutions who want to invest in thelogistics, shipping and transportation space

    Screened and advised on more than 100 deals covering the following sectors: Ports

    Private Rail Freight Forwarding / NVOCC Container Freight Stations / Inland Container Depots Warehousing Trucking Courier & Express Cold Chains

    T U S C A N V E N T U R E S

    Private Equity & Advisory Activity

    Introductory Note

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    Tuscan invests and advises companies from across the supply chain

    RailRoad

    Courier&

    Express

    Air Cargo

    FreightForwarding

    LogisticsSoftware

    Training &Consulting

    Cold Chains ICD / CFS Coastal Shipping

    Warehousing

    Ports

    T U S C A N V E N T U R E S

    Private Equity & Advisory Activity

    Introductory Note

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    Tuscan Investments

    T U S C A N V E N T U R E S

    Private Equity & Advisory Activity

    Introductory Note

    Tuscan Ventures concluded an equity investment in LCL Logistix in May2008 . Tuscan is a 15% shareholder in the company

    With 33 offices and 400+ people, LCL Logistix is Indias largest oceanfreight forwarder with significant interests in CFS operation, yardmanagement, warehousing, distribution, air and project cargo

    Tuscan Ventures concluded an equity investment in Rasmussen &

    Simonsen International in April 2008. Tuscan is a 40% shareholder in thecompany

    RSI is a unique global training & development company focused ontraining shipping and logistics professionals. RSI also owns and managestwo popular industry Internet portals

    Financial Investor+

    Operating Partner

    Tuscan has a sharp domain focus and prefers to invest in companies withconsiderable scope of strategic / operational value-addition

    Tuscan is an active investor and adds significant value to its portfoliocompanies by engaging them on strategy discussions, systems andprocesses and on the induction of robust corporate governance practices

    www.lclshipping.com

    www.r-sintl.comwww.shippingworkz.comwww.logisticsworkz.com

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    Tuscan Advisory: Case Study

    T U S C A N V E N T U R E S

    Private Equity & Advisory Activity

    Introductory Note

    Dharamtar Logistics Park, 13NM from Nhava Sheva port, offers state-of-the-art CFS and warehousing facilities and services for EXIM cargo touching JN

    Port In early 2008, Dharamtar Port engaged Tuscan to:

    Design the operational flow for container cargo at Dharamtar Port andLogistics Park

    Market the facility to shipping companies and end users

    Tuscan assisted with the creation of a viable operational flow for container

    traffic to and fro Dharamtar port

    Since, Tuscan has aggressively marketed the facility to shipping companiesand cargo owners with good results

    Most reputed shipping lines now accept cargo to and from Dharamtar.These include Maersk Line, CMA-CGM, PIL, Hapag Lloyd amongothers

    Several cargo owners have accepted the sense of including Dharamtarin their current supply chains

    Overtime, Dharamtar is gaining recognition as a viable complimentary facilityto the Nhava Sheva port system

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    Tuscan Advisory: Case Study

    T U S C A N V E N T U R E S

    Private Equity & Advisory Activity

    Introductory Note

    Maersk Logistics, a part of the A. P. Moller Maersk Group, is a significant 3PLservice provider globally with aggressive growth plans for India

    In 2008, Maersk Logistics engaged Tuscan Ventures as an advisor to theirIndia focused Acquisitions strategy

    Tuscan Ventures proposed an M&A strategy for Maersk Logistics, fitting withtheir overall India strategy

    Tuscan evaluated several acquisition options based on the criteria agreed uponand introduced the most optimal targets to Maersk Logistics

    Maersk Logistics is currently in discussion with two companies simultaneouslyfor potential acquisitions

    Top 5 Global 3PLMajor

    Headquartered inEurope with offices in

    >100 countries

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    Why does private equity have a role in todays market ?

    T U S C A N V E N T U R E S

    Private Equity & Advisory Activity

    Introductory Note

    Cash may equalsurvival

    Credit has dried up. Customers are holding payments but suppliers arepushing for theirs.

    Timely injection of working capital can come as a lifeline. Often, the onlyway to ensure survival

    Small window to lowasset prices

    Asset prices are at an all time low. Timing it right is key but possible only if

    cash is available at short notice In industries, where own assets make good business sense, optimally

    priced purchase of assets will emerge as a strong competitive advantagewhen the going is good again

    Constructing a

    future organisation

    An economic downturn is a great time to build a future organisation acquire and train talent, put processes in place and introduce cost andother controls

    The will to invest in these often sidelined initiatives has to be matched bycash

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    Why do PE funds prefer to invest logistics companies ?

    T U S C A N V E N T U R E S

    Private Equity & Advisory Activity

    Introductory Note

    Industry2008 Jan-Decchange (%)

    Road & Rail 16%

    Airfreight & Logistics -12%

    Consumer Staples -21%

    Health Care -30%Consumer Discretionary -37%

    Industrials -39%

    Information Technology -39%

    Utilities -40%

    Materials -43%

    Financials -44%

    Energy -45%

    Telecommunication Services -48%

    Source: Intersections, Global Transport & Logistics Mergers & AcquisitionAnalysis (2007Q4), Price Water house Coopers

    0

    200

    400

    600

    800

    1000

    1200

    1400

    1987

    1988

    1989

    1990

    1991

    1992

    1993

    1994

    1995

    1996

    1997

    1998

    1999

    2000

    2001

    2002

    2003

    2004

    2005

    2006

    2007

    Source: Business Week, Dow Jones performance, 2008 January -December

    Logistics companies are able to hold their

    value better in an economic downturn

    The industry has seen increased M&A in recent

    years, giving investors more opportunities to exit

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    Why should Tuscan advise you ?

    T U S C A N V E N T U R E S

    Private Equity & Advisory Activity

    Introductory Note

    We understand thelogistics industry

    The Tuscan team has more than 40 years of hands on experience inlogistics, shipping, transportation and transport infrastructure

    The team has worked across the Indian subcontinent, Europe, NorthAmerica, Africa & South East Asia in leadership roles

    It has interacted and advised more than 100 Indian logistics companies

    It has advised logistics multinationals on acquisition of companies in India

    We know whatinvestors look for

    As investors, the Tuscan team has critically reviewed more than 120 privateequity investment opportunities from the logistics & transportation space

    It has advised, reviewed and worked on logistics deals with most of Indiasleading private equity funds

    Tuscan Ventures has itself structured, due diligenced and invested in a thirdparty logistics company (LCL Logistix), where it now sits on the board

    We know how to getyou ready for

    investors

    Tuscan has an intimate understanding of the private equity process used byinstitutional investors (IC decision / Financial negotiations / Legal structuring)

    The Tuscan team is very familiar with the typical challenges faced by promotersfrom the logistics space in raising private equity

    Tuscan leverages this working knowledge of the requirements and challenges ofeach side to ensure that the promoter is well prepared for the PE process

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    An investor ready company is a robust company

    T U S C A N V E N T U R E S

    Private Equity & Advisory Activity

    Introductory Note

    Strong

    Weak

    Low High

    InvestorReadiness

    Company robustness

    HRpractices

    / Performanceincentives

    Financialcontrols

    Corporate

    Governance

    Businessstrategy /

    Competitivepositioning

    InvestmentNeed / plan

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    Stage 1. Evaluating need and readiness for Private Equity

    T U S C A N V E N T U R E S

    Private Equity & Advisory Activity

    Introductory Note

    STAGE 1:EVALUATING PE READINESS

    STAGE 2:GEARING UP

    STAGE 3:ENGAGING INVESTORS

    What are the real drivers of my industry now and in future?

    Hows my scale relative to competition?

    Am I playing to my unique competitive advantage?

    Should I even continue this business or exit it?

    Can PE really be a competitive differentiator for me?

    What should be my valuation expectation?

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    Stage 2. Gearing organization for Private Equity

    T U S C A N V E N T U R E S

    Private Equity & Advisory Activity

    Introductory Note

    STAGE 1:EVALUATING PE READINESS

    STAGE 2:GETTING READY FOR INVESTORS

    STAGE 3:ENGAGING INVESTORS

    Do I have the management depth to support the growth youenvision?

    Does my organization come across as a professional one?

    Do I have orderly financials, data and documentation ?

    Am I able to clearly articulate my strategy as well as the risks?

    Am I able to clearly position myself a cut above mycompetitors?

    Do I clearly understand the time and effort it takes to engageinvestors?

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    Stage 3. Locating funds

    T U S C A N V E N T U R E S

    Private Equity & Advisory Activity

    Introductory Note

    STAGE 1:EVALUATING PE READINESS

    STAGE 2:GEARING UP

    STAGE 3:ENGAGING INVESTORS

    Can I clearly articulate the opportunity that my industrysegment presents?

    Do I have a impressively detailed information memorandum?

    Do my projections find the right balance between optimism andmarket reality?

    Do I have a sense of the kind of questions investors typicallyhave?

    Am I aware of the rights that I should focus on in mynegotiations?

    Do I know how best to manage an investor during and afterfunding?

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    Founder Partners

    DhritimanHui

    Principal -Investments

    GaganSeksaria

    Principal -Investments

    Worked on transactions in the privaterail, 3PL, warehousing, distribution, courier & express and NVOCC spaces Last role with Maersk Lines Regional

    Headquarters, Singapore Head of Marketing, AP MollerMaersk, India ~ headed MarketIntelligence, Corporate Communications &External Relations for the sub-continentslargest shipping companyPart of AP Moller Maersks elite GlobalManagement Training Program, trainedin Logistics & Ports

    Worked on transactions in the air & seafreight forwarding, ports &terminals, container freightstations, project cargo and logisticssoftware spaces

    Head of Marketing, AP MollerMaersk, South Asia ~ headed MarketIntelligence, Corporate Communications& External Relations for the sub-continents largest shipping company Investments, APM Ports & Terminals~ responsible for negotiating andmanaging 2 USD 300 million+ port

    projects in West AfricaMBA in Marketing

    Advisory Team

    Vishal SharmaMD / CEO

    Business Head Maersk LineIndia, US$ 1.5 bn revenues; 350employees; 21 offices Head Group Strategy Office, AP

    Moller Maersk, US$25 bn revenues, 60countries 25000 employees; oversaw groupstrategy for shipping business, oil &gas, logistics, port , banking, BPO business Managing Director - MaerskVietnam, US$ 400 mn revenues, 200employees, negotiated the countrys first

    _private port concession ~ APMT Saigon

    MBA, Chicago School of Business

    Shagun GogiaDirector, Invest

    ments

    Vice President ICICI Ventures, US$ 2 bnAUM; 100 employees; 50 dealsconcluded, Indias oldest and most wellestablished Private Equity house. Personallycompleted 5 deals aggregating in excess ofUS$ 100 mn in the Real Estate sector.Reviewed 120+ deals Corporate Finance Rabo Bank, 3 yearsof Mergers & Acquisitions, participated in 10transactions across banking, bio-technology, finance and real estate. Was partof Founding Team. Very strong proprietary network in Indias

    investment banking and private equity space MBA, Indian School of Business

    T U S C A N V E N T U R E S

    Private Equity & Advisory Activity

    Introductory Note

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    Dhritiman Hui

    Principal

    +91 9967316481

    [email protected]

    Gagan Seksaria

    Principal

    +91 9821236792

    [email protected]