NAMASTE
From the Land of Great Wealth and Opportunity
INDIA
Global Opportunities – India Maritime Sector
Presented by :
Captain. Somesh Batra
Co-Chairman
SEAHORSE GROUP
Introduction
Capt. Somesh Batra
ACADEMIC & PROFESSIONAL QUALIFICATIONS
 1963 - Pre-sea training on Training Ship ‘Dufferin’ - was awarded ‘Extra
First Class’ (Distinction - the highest award).
 1970 - Master’s Certificate of Proficiency and Competence from Ministry
of Transport, Government of India
 1976-77 - Post Graduate Studies in Shipping Management from Plymouth
Polytechnic, United Kingdom
 1977 - “Management of Offshore Operations” from the above mentioned
institution. One of the few professionals in India being qualified in this field.
Introduction
Capt. Somesh Batra
DIRECTORSHIPS
Currently Director/Chairman of the following companies:
Bay Container Terminals Pvt. Ltd
Marine Container Services (India) Pvt. Ltd.
Marine Container Services (South) P. Ltd
Seahorse Ship Agencies Pvt. Ltd.
Seahorse Distribution & Freight Services Pvt. Ltd
Sanko Kisen Seahorse (India) Pvt. Ltd
Seahorse Buss Infrastructure Pvt. Ltd.
Tristar Container Services (Asia) Pvt. Ltd.
Yang Ming Line (India) Pvt. Ltd.
 Member on the Council of Management of the World Trade Centre,
Mumbai since 1992. Vice Chairman of the Board.
Introduction
Seahorse Group
Container
Leasing
NVOCC
&
Multimodal
Transportation
Ship Agency
Container Repairs
&
Storage Depot
Management
Core
Operating
Areas
Port
Representation
Total Freight
Solutions
&
Distribution
Systems
Port Captaincy
&
Cargo
Supervision
Ship Manning
&
Management
Chartering
&
COAs, Offshore
Introduction
Seahorse Group
n Ludhiana
New Delhi
n
w
n
Mundra
n
n
Ahmedabad
Kandla
Pipavav
n
Kolkata
nn
INDIA
Vadodara
w
Nagpur
w
w
Mumbai n
Nhava Sheva
n
n Vizag
Hyderabad
Associate Offices
w
Depots
n
nw
Bangalore
Mangalore
n Seahorse Offices
w
n
wn Chennai
n Coimbatore
Cochin
n Tuticorin
w
More than 2000 employees & 30 Offices
Introduction
Seahorse Group – Joint Ventures
Yang Ming Line (India) Pvt. Ltd.
Marine Container Services & Yang Ming Line, Taipei
Shipping & Transport
Tristar Container Services (Asia) Pvt. Ltd.
Marine Container Services & Triton Container Intl, U.S.A.
Domestic container leasing
Seahorse Buss Infrastructure Pvt. Ltd.
Marine Container Services & Buss Capital, Singapore)
For long term financing of Infrastructure Projects.
Sanko Kisen Seahorse (India) Pvt. Ltd.
Seahorse Ship Agencies & Sanko Kisen, Tokyo
For handling chartering of Sanko’s tonnages
INDIA
India
At a Glance
Official Name: Republic of India
Area: 3.3 MN Square Kilometres
North to South - 3,214 KM
East to West - 2,993 KM
Coastline - 7,517 KM
Administrative Divisions:
28 States and 7 Union Territories
Head of Government: Prime Minister
Capital: New Delhi
Population: 1.24 BN
GDP: US$ 3.26 TN
Major Cities: Delhi, Mumbai, Kolkata,
Chennai, Bengaluru, Hyderabad
Currency: Indian Rupee
(INR)
*Source: National Portals of India
India
At a Glance
India
At a Glance - Road Network – 2nd Largest in the World
*Source: map of world
India
At a Glance - Railway Network – 4th Largest in the World
*Source: map of world
India
At a Glance - Air Network – One of the Largest Networks in the World
*Source: map of world
ECONOMY
India
GDP Growth
9
8
8.4
8.4
7.6*
7
6
6.9
6.7
5
4
3
2
1
0
Y08-09
Y09-10
Y10-11
Y11-12
Y12-13
Mr. Pranab Kumar Mukherjee
Finance Minister
*Projected - Source: Prime Minister office – Y – APR-MAR
India
Economic Scenario - GDP growth trends – India Vs World
Region
2010
2011*
2012*
2013*
World
4.0
2.8
2.6
3.2
Developed Economies
2.7
1.3
1.3
1.9
Developing Economies
7.5
6.0
5.6
5.9
China
10.4
9.3
8.7
8.5
India
9.0
7.6
7.7
7.9
Source :
World Economic Situation and Prospects 2012
The United Nations Department of Economic and Social Affairs
India
Economic Scenario - % GDP Contribution
Percentage share in GDP - Agriculture
Percentage Share in GDP - Industry
Industry
30%
Agriculture
17%
Services
53%
Percentage Share in GDP - Services
India
Pre – Liberalization – Prior 1991
Industry Licensing and Quotas
Dominance of Public Sector
Restriction on Private Investment
Controlled Economy
India
Post - Liberalization Stage - Strategies Developed
Government’s role -Licensor to Regulator
Barriers Dismantled - Procedures Simplified
Open Economy
FDI welcomed in all sectors
E-Governance
Free Trade Agreements
Globalization of Indian Industries
Service sector to the forefront
India
India’s – Trade
Total EXIM trade over US$790BN
Ambitious Target – Achieving a 5% share in world trade by the year 2020
April – March
2010-11
2011-12
% Increase
Export $ BN
251
303
21 %
Import $ BN
370
488
32 %
Mr. Anand Sharma
Union Cabinet Minister in charge of Commerce and Industry and Textiles
* Department of Commerce – Govt. of India`
India
India- Canada Bilateral Trade 2008-2011(Jan-Dec) - US$ BN
Details
2008
2009
2010
2011
Exports to Canada
2.0
1.8
2.1
2.6
Imports from Canada
2.3
1.9
2.0
2.6
Total
4.3
3.6
4.1
5.2
“Bilateral Trade - equivalent to 2 1/2 days of US-Canada trade… India stands out
in the world, as an emerging market with a strong democratic base, fully functional
in English – the worldwide accepted business language, as a country where the
rule of law pervades and as a country that survived the economic recession.”
John Manley, President & CEO, Canadian Council of Chief Executives
Source: Statistics Canada
India
Direct investment between India and Canada 2008-2010 – Canadian$ MN
Details
2008
2009
2010
2011
Canadian direct investment in
India
785
601
500
492
Indian direct investment in
Canada
2,667
2,972
6,600
6,554
Total
3,452
3.573
7,100
7,046
“Common democratic traditions and underlying people-to-people links, bind IndoCanadian ties.
Broad based bilateral economic partnership with strong collaborations in
agriculture, education, infrastructure, manufacturing, tourism and knowledge
industries like clean technologies, biotech, pharmaceuticals and R&D.”
Hari Bhartia, President-designate, CII
Source: Government of Canada
India
Indian companies investments in Canada
Indian Co’s
Canadian Co’s / Industry
Year
Essar Steel Ltd - Acquired
Algoma Steel
2007
TATA Communication (VSNL) Acquired
Teleglobe
2007
Hindalco Ltd (Aditya Birla
Group) – Acquired
Novelis Inc
2007
Jubilant Organosys – Acquired
Draxis Health
2008
Tata Steel Global Mineral Holdings
– JV
New Millennium Capital (NML) and
LabMag – For developing a direct
shipment ore (DSO) project
2009
Mahindra Satyam – Opened
Smart Grid Research and Innovation
Centre (RIC) University of Waterloo
Campus in Ontario
2011
Maharashtra State Government MOU
Government of Quebec- Health & Social
Services
2012
Other Major Investors
Tata, Satyam Computer Services, Wipro, Infosys and Aditya
Birla Group, State Bank of India, ICICI Bank
India
Canadian companies investments in India
Canadian Co’s
India Co’s / Industry
Year
Bombardier – Plant to build Metro
rail coaches
State of Gujarat
2008
CAE Inc. – Construction of new
Flight helicopter simulation centre
Hindustan Aeronautics Limited /
Bangaluru
2009
SNC-Lavalin PAE Inc – Contract to
build Mumbai’s newest metro lines
Mumbai Metro Rail cooperation
2009
Other Major Investors
BCE, RIM, McCain Foods, CGI, Sun Life, MDS Nordion,
Scotiabank, R. V. Anderson Associates Ltd., M. A. Jans &
Associates (MAJ), Tele-Direct International & Deloitte & Touche
LLP Canada.
India
BRICS countries are BIG on Merger & Acquisitions
% Businesses planning M&A over the next 3 Years
* GRANT THORNTON IBR 2012
India
Potential Foreign Trade (FTA’s)
 Canada **CEPA: Likely to conclude by 2013 (Current $ 5 BN)
 EU FTA: End 2012 – Operational 2013 (Current Trade $ 75 BN)
China: Trade to double - $100 BN by 2014 (Current $ 60 BN)
 ASEAN: Bilateral trade $70 BN by 2014 (Current $ 50 BN)
 Korea: Trade to double $24 BN by 2015 (Current $12 BN)
 Indonesia: Trade to double $20 BN (Current $10.5BN )
 Japan - CEPA 2011:Trade to double $ 25 BN by 2014
 Malaysia CECA 2011:Trade to reach $15 BN by 2015 (Current $ 9 BN)
India- 2nd most preferred destination for foreign investors “Doing Business in India‘-Ernst & Young”
http://www.international.gc.ca
INFRASTRUCTURE
India
Infrastructure
Infrastructure sector will require $ 1.7 TN investment in the next 10-years.
“Goldman Sachs Report”
Needs to spend $ 1.2 TN by 2030 to meet the projected demand of its
cities
“McKinsey Global Institute Report”
India
12th Plan – To Focus on All Inclusive Growth
50% - Private sector participation (11th Plan 36%) - Decade ago - 5%
12th Five year Investment plan
Total – $1025 BN ($ 514 BN 11th Plan)
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
132
155
178
202
230
260
India
Building India, Step by step !!! 10th – 12th Year Plan
Agriculture :
12th-2012-17
9
12th year plan aimed at a 4%
growth. (11th plan 3%, 10th plan
2%)
Manufacturing :
8.2
11th-2007-12
9
Prime Focus on Public Private
Partnership (PPP) to facilitate
infrastructure investment.
7.8
10th-2002-07
8
7
7.2
7.4
7.6
7.8
8
The Brick and Mortar of the
Economy – will grow at 11-12 %
8.2
ACHIEVEMENT
8.4
8.6
8.8
9
TARGET
India
Infrastructure in India
FDI up to 100% under the Automatic Route:
Exploration of oil and natural gas fields, infrastructure related to actual
trading and marketing of petroleum products, petroleum product & natural
gas/LNG pipelines, Petroleum refining in the private sector.
Setting up New and in Established Industrial Parks
Investment Opportunities:
Global private equity (PE) funds to target Indian infrastructure companies
in the coming years for high return on investments making India the most
preferred choice among Emerging Markets.
Sub-sectors to chose from: Power, Telecom, Roads and Ports.
Report by Research Agency “Preqin”
Source: Consolidated FDI Policy, Department of Industrial Policy & Promotion (DIPP)
India
Growth of Infrastructure 1998 – 2011 - impressive physical growth
Sector
Roads
Length (MN KM)
National highways (000 KM)
1998
2011
% increase
3.3
35
4.2
71
28
101
2.5
8.3
226
62,800
350
65,000
950
4
175
16
50
213
Ports
Traffic handled (MN TEUs)
Rail
Route (KM)
Goods transported (MN tonnes)
Airports
Passengers handled (MN)
India
Golden Quadrilateral
 Golden Quadrilateral highway
 5829 KM – 4 Lane
 North–South & East–West Corridor highway
 5831 KM – 4 Lane
 Port connectivity – All major ports
 330 KM – 4 Lane
 Inter-capital
 1342 KM – 4 Lane
 Bypass and other national highways.
 945 KM – 4 Lane
 14,277 KM of highways connect major
manufacturing centers, commercial cities of India
*Source: map of world
India
Western Corridor - Dadri (Delhi) to JNPT– Nhava Sheva
 Project Investment $ 100 BN
 1483-km long
 Passes through Six States
 Traffic will rise
 2017 3.8mn TEU
 2022 5.3mn TEU
 Project Phasing :
Phase – I Commissioning
Rewari – Vadodara 31st Dec 2016
Full Commissioning
J.N. Port - Dadri 31st March 2017
India
Eastern Corridor – Sonnagar (Bihar) to Ludhiana (Punjab)
 Project Investment $ 100 BN
 Total length of 1,279km.
 Passes thru 6 states
 Traffic will rise
 2017 75.6 MN tonnes
 2022 91.0 MN tonnes
 Project Phasing :
Commissioning of Eastern Corridor
31st December 2016
India
Roads Development - Transition
1997 Policy framework Approved
 India BOT Initiative for private investment in Road sector
2005 NHDP Programmes/Projects awarded only on BOT basis.
NHDP - Largest Private Sector Interest “Classical Infrastructure Projects.”
2012 India has about 4.2MN KM of Road Network
“Department of Industrial Policy and Promotion (DIPP) statistics”
India
Roads Development - Investment Opportunities
2012–13 India’s Construction Sector to grow @ 35%.
12th Five Year Plan US$ 100 BN on Roads and Highways
The Private Sector is Expected to Contribute 44%
Phase IV connectivity of 20,000 km of 2 Lane and 4 Lane Roads to be
built during the 12th five year plan, connectivity to the economic
hinterlands.
“Department of Industrial Policy and Promotion (DIPP) statistics”
India
Roads Development - Investment Opportunities
100% FDI is allowed under the Automatic Route:
Support services to Land Transport like Operation of Highway Bridges, Toll
Roads, and Vehicular Tunnels
Services incidental to Land Transport like Cargo Handling
Construction and Maintenance of Roads, Bridges
Construction and Maintenance of Roads and Highways on Build-onTransfer (BOT) basis, including collection of Toll
“Source: Consolidated FDI Policy, Department of Industrial Policy & Promotion (DIPP)
India
Railways in India: Vision 2020
The 4th largest Rail Network after US, Russia and China.
 4th largest commercial or utility employer - over 1.4 MN employees
114,500 KM & 7,500 stations.
FDI inflows worth US$ 233 MN - April 2000 to November 2011
Aims at Adding 25,000 Route km to the Railway Network
Will follow Public Private Partnership (PPP) Model in Projects
Special Task Force to Clear Investment Proposals within 100 Days
http://m.oifc.in/Sectors/Infrastructure/Railways and “Source: Consolidated FDI Policy, Department of Industrial Policy & Promotion (DIPP)
India
Railways - Investment Opportunities
Large investment under PPP route – Logistic Parks/ Hub
 Efficient Use of Assets - Modernization and upgradation of equipmentboth fixed infrastructure & rolling-stock
 Doubling and Port Connectivity
 Dedicated Freight Corridors
 Asset Renewal/Modernization of Freight Terminals
 Wagon investment scheme
 FOIS : Freight Operations (Real time) information system
 Introduction of Private Container trains
http://m.oifc.in/Sectors/Infrastructure/Railways & *Source: CII
India
Special Economic Zones (SEZ)- Engines of Economic Growth
 A major hub for Manufacturing & Exports
Srinagar
 Internationally competitive Environment
Shimla
Dehra Dun
Noida
Delhi
Jaipur
Lucknow
Jodhpur
Guwahati
Kanpur
Gandhidham
Tax exemption benefits
Indore
Ahmedabad
Kolkata
Bhuvaneswar
Mumbai
Pune
 91- Special Economic Zones
 8 - Export Processing Zones
Hyderabad
Nhavasheva
Vishakhapatnam
 27 % of India’s Exports
 143 Operational SEZ
Manipal
Bangalore
Chennai
Kochi
 587 Formal Approvals
Coimbatore
Partial List
Nanguneri
*Source: map of world
India
Major Inland Container Depot’s (ICDS)
Ludhiana
Delhi
Rewari
Jodhpur
Faridabad
Moradabad
Guhawati
Jaipur
Gateway Port
Mundra
Ahmedabad
NhavaSheva
Ludhiana, Delhi, Dadri,
Faridabad, Loni,
Moradabad, Rewari, Jaipur,
Ahmedabad, Dashrath,
Pune, Pithampur,
Hyderabad
Mundra/Pipavav
Ludhiana, Delhi, Dadri,
Faridabad, Loni,
Ahmedabad,
Kandla
Ahmedabad,
Tuticorin
Coimbatore
Chennai
Hyderabad, Bangalore
Vizag
Delhi
Kolkatta/ Haldia
Guwahati
Kandla
Dashrath
Pipavav
Haldia
Pithampur
Kolkata
Hyderabad
Pune
Mumbai
Vizag
Nhava Sheva
ICD Connectivity
Bangalore
Coimbatore
Chennai
Kochi
ICD
SEA PORT
Tuticorin
*Source: map of world
India
Major Freight corridors
Delhi
Amristsar
Birgunj - Nepal
Guhawati
Ahmedabad
Indore
Mundra
Haldia
Nagpur
Kolkata
Pipavav
Hazira
Mumbai
Vishakhapatnam
Nhava Sheva
Hyderabad
Kakinada
Guntur
Bangalore
Chennai
Cochin
Tuticorin
Trunk route
Secondary route
*Source: map of world
India
Logistics - Adaptation
India
Logistics - Adaptation
India
Logistics - New vehicle designs on the Indian roads today
India
Logistics - New vehicle designs on the Indian roads today
MARITIME DEVELOPMENT
India
Sea Ports

India’s trade stands at 9.7 MN
TEUs per annum in 2011.

Between 2000 and 2010, India
grew at CAGR of 13% annually

Increased port capacity
imperative for the country's trade
growth
Ludhiana
Delhi
Rewari
Jodhpur
Mundra
Faridabad
Moradabad
Guhawati
Jaipur
13 Major Ports - 64 % Cargo
Ahmedabad
Kandla
Haldia
Paradip
Pipavav
Kulpi
Dashrath
Pithampur
Mumbai
Nhava Sheva
Dhamra
Kolkata
Vizag
Mormugoa
Kochi
 38 % Liquid bulk
Hyderabad
Pune
New Mangaluru
 187 State ports
 33 % Dry Bulk
 15 % Containerized Cargo
Bangalore
Coimbatore
Ennore
Katupally
Chennai
Tuticorin
ICD
SEA PORT
 5 Major Bulks – Iron ore, Coal,
Grain, Bauxite, Alumina &
Phosphate.
India
Throughput Jan-Dec 2011 – (9.7 MN Teus)
Sea Ports -
Ludhiana
Delhi
Rewari
Jodhpur
Mundra
Faridabad
Moradabad
Guhawati
Jaipur
Ahmedabad
Kandla
Haldia
Paradip
Pipavav
Kulpi
Dashrath
Pithampur
Mumbai
Nhava Sheva
Dhamra
Kolkata
Hyderabad
Pune
Vizag
Port
2011
Nhava Sheva
4.3 **
Chennai
1.6
Mundra
1.4
Kolkata / Haldia
0.5
Tuticorin
0.5
Pipavav
0.6
Kochi
0.3
Kandla
0.2
Mumbai
0.1
Vizag
0.2
Total
9.7
Mormugoa
New Mangaluru
Kochi
Bangalore
Coimbatore
Ennore
**Nhava Sheva throughput
Katupally
Chennai
Tuticorin
ICD
SEA PORT
2016
2020
11 MN Teus (Proj)
23 MN Teus (Proj)
(Latest 10 year Plan Indian Ministry of Shipping)
India
Maritime Sector
India’s merchant shipping fleet- ranked 16th among the maritime countries
 95 % by volume and 70% by value of International trade is carried
through Maritime transport.
14,500 KM of inland waterways- 5 declared as National Waterways
 Develop coastal movement, inland water ways to supplement rail-road
 India Maritime Agenda 2010-20
 The Government aims to create a port capacity of around 3200 MN Tons
to handle the expected traffic of about 2500 MN Tons by 2020
Mr. GK Vasan, Union Minister MoS
India
Maritime Agenda 2020 - Port Traffic / Tonnage
Projected Total Cargo Traffic Growth
3500
3126
3000
2591
2500
2495
2019
MMTPA
2000
Traffic
Capacity
1500
1088
1000
884
570 660
500
0
2005-06
2010-11
2016-17
2019-20
India
Projected container handling capacity-2020
Upper West Coast
Total 33 MNTEUs
Upper East Coast
6.0
Kandla, Mundra,
Pipavav, Hazira
3.0
Central West Coast
12.3
Mumbai, JNPT,
Dighi & Jaigardh
1.2
Paradip, Haldia,
Kolkata, Dhamra,
Kulpi
Central East Coast
Vizag, Gangavaram,
and Krishnapatnam
Lower West Coast
Lower East Coast
New Mangalore, Kochi,
Mormugao,
Vizhinjam
Chennai, Ennore, Tuticorin
India
Port Developments Container handling Projects Envisaged up to 2020
Upper West coast
 Adani Hazira Port at Jamnagar.
 South Port-Adani Port( Mundra) –
Ro-R0 & Container Terminnal - mid2012.
Mundra
Kandla
Central West Coast-Mumbai
Haldia
Pipavav
Paradip
Hazria
Offshore Terminal - Dec-2012.
4th Container Terminal at JNPT –
Awarded to PSA Intl & ABG Ports 4.8
MN Teus
Corporatisation of JNPT (Venice Port
Authority agreement signed), New
developments in Rewas and Dighi
ports
5th Terminal 10MN Teus designed by
Scott Wilson
Kolkata
Mumbai
Rewas
Nhava Sheva
Vishakhapatnam
Dighi
Mormugao
Krishnapatnam
Mangalore
Kochi
Chennai
Tuticorin
Vizhinjam
2015 -Private sector to handle 50% of the nation's cargo.
India
Port Developments Container handling Projects Envisaged up to 2020
Central East coast
270 meter long riverine
multipurpose jetty at
Salukhkhali, Haldia Dock
under process
Container handling
facilities at Gangavaram &
Krishnapatnam.
Mundra
Kandla
Haldia
Pipavav
Kolkata
Paradip
Hazria
 2nd Container Terminal at
Tuticorin,
Mumbai
Rewas
Nhava Sheva
Vishakhapatnam
Dighi
International
Bunkering terminal at
Vypeen, Cochin Port
Container Terminal at
Kattupalli (near Chennai) BY
May/2012
Lower West coastMormugao
Container Terminal at
Vizhinjam.
Kulpi and Dhamra
Lower East coast
Krishnapatnam
Mangalore
Kochi
Vizhinjam
Chennai
Tuticorin
Container terminal at
Ennore (near Chennai)
progressing.
 Container handling
facility at Karaikal
2015 -Private sector to handle 50% of the nation's cargo.
India
Developments -
Break Bulk terminals
Central East coast
 Break bulk - port
development to meet – Coal
Import / Iron Ore Export.
 Dhamra port - URS Scott
Wilson project Management
consultant.
Mundra
Kandla
Haldia
Pipavav
Kolkata
Paradip
Hazria
Mumbai
Rewas
Nhava Sheva
Vishakhapatnam
Dighi
Mormugao
Krishnapatnam
Mangalore
Kochi
 Paradip - Channel
deepening/construction of deep
draft iron ore and coal berths –
capacity expansion 251m
tonnes.
Chennai
 Krishnapatnam port, a private
greenfield deepsea port – 18
metres draft
Ambitious plans to become a
“South Asian” focus for dry
bulk, heavy lift and project
cargo.
Tuticorin
Vizhinjam
2015 -Private sector to handle 50% of the nation's cargo.
India
Ports Development - Transition
1995 1st Privatisation Effort – BOT Concession for NSICT signed in 1997
Subsequent PPPs – Terminals at Tuticorin, Chennai, Visakhapatanam,
and JNPT 3rd Berth
 Success Stories- State Level Projects:
Gujarat-Mundra, Pipavav
 Andhra Pradesh-Gangavaram
 Odhisa-Dhamra
 Tamil Naidu -Kariakal
 Most state developments as “Greenfield” development
India
Ports Developments – Break Bulk
India
Ports Developments – Break Bulk
India
Ports Developments – Dry bulk seaborne trade growth
2012 f
Billion tonnes
2010
2,400
2,300
2,200
2,100
2,000
1,900
1,800
1,700
1,600
1,500
1,400
1,300
1,200
1,100
1,000
900
800
700
600
500
400
300
200
100
0
Capesize
Iron Ore
Phosphate Rock
Salt
Sulphur
Ex-capesize
Steam Coal
Aluminium Raws
Rice
Aluminium Products
Capesize
Coking Coal
Cement
Coke
Paper/Pulp
Grains
Non-Ferrous Ores
Pig Iron
DRI
Steel
Forest Products
Petroleum Coke
Ex-capesize
Fertilisers
Sugar
Ferrous Scrap
India
Ports – Cargo Outlook
POL (Petroleum, Oil, Lubricants)
 Increased focus on LNG
 Increase - Consumption of Crude Oil and products
 Demand & Supply gap – increased imports
Coal
 Steel consumption is to grow at about 16% pa
 Electricity demand to increase 7-10 % pa
India
Ports – Cargo Outlook
Iron ore
 Government policy - Iron ore exports to be canalized
 Restrictions on mining
 Fertilizers (Agriculture sector)
 Consumption exceeded domestic production in Nitrogenous (N),
phosphatic (P) fertilizers
 Entire potassic (K) fertilizers met through import
http://steel.nic.in/policy.htm
India
India Infrastructure - Maritime Agenda
 New Maritime Agenda 2010-20 (Maritime Development Program)
 $ 110 BN to Develop Ports and Shipbuilding by 2020
 Port Sector $ 66 BN Private investment
 Shipping sector $ 44 BN thru PPP
 Capacity expansion 3.2 BN MT (Traffic of about 2,500 BN MT).
 Develop Coastal Movement, Inland Water Ways to Supplement RailRoad
To increase India's share in global ship building to 5%(Present 1%)
Source: Consolidated FDI Policy, Department of Industrial Policy & Promotion (DIPP)
India
Target 2020
 Develop 2 New Major Ports
 Develop 2 New Hub ports: One each on the West Coast & East Coast
 Upgrade 4 of the existing 13 ports – (Major Maritime Hubs)
West Coast - Nhava Sheva & Kochi
 East Coast - Chennai & Visakhapatnam
 All Major Ports 14 metres and Hub Ports 17 metres Draft
 Adequate storage areas in Major Ports
 Major Ports to set up Ship Repair and Maintenance Hubs
India
Port Sector - Target 2020
100% FDI is allowed under the Automatic Route:
To Supplement Domestic Capital, Technology and Skills, for Accelerated
Economic Growth.
2000-2012 (FDI) into Ports at US$ 1,635 MN
Leasing of existing Ports / Assets
Leasing of Equipment for Port Handling and Leasing of Floating Crafts
Captive Facilities for Port based Industries
http://m.oifc.in/Sectors/Infrastructure/ports Source: Consolidated FDI Policy, Department of Industrial Policy & Promotion (DIPP)
India
Port Sector - Target 2020
Construction / creation and maintenance of Assets
Container terminals
 Bulk / Break bulk
 Multi-purpose and specialized cargo berths
Warehousing, container freight stations
Storage facilities and tank farms, cranage / handling equipment,
Setting up of captive power plants, dry docking and ship repair facilities
Coastal movement
Source: Consolidated FDI Policy, Department of Industrial Policy & Promotion (DIPP)
India
Inland waterways
 14,500 KM of navigable inland
waterways
 Total 5 National inland Waterways
 3 developed & operational - 2716 KM
 Allahabad-Haldia -1620 KM in Uttar
Pradesh, Bihar, Jharkhand and West
Bengal
 Sadiya-Dhubri -891 KM in Assam
 Kollam-Kottapuram -205 KM in Kerala
 1027 KM states of Andhra Pradesh,
Tamil Nadu & the Union Territory of
Puducherry
 588 KM states of West Bengal &
Orissa
STRENGTHS
India
Politics in India
Democracy … is our Biggest Asset
… Yet sometimes it moves like : ‘ A Drunken Sailor
… One step Forward and Two Step Sideways !
India
Strengths
Availability of
Democratic System of
Resources
Governance
1.
Availability of Raw material
1.
2.
Well-developed technical and
tertiary education infrastructure
Active judiciary-respect of
patents
2.
Progressive reforms
3.
English is language of business
3.
4.
High availability of skilled
workforce
Low cost labour
INDIA
ADVANTAGE
Large Domestic
Strong Economic
Market
Environment
1.
Strong middle-class
1.
Consistently growing GDP & FDI
2.
Growing consumerism and young
population
2.
Stable Interest rates
3.
Maturing capital markets
India
Growing younger
Population distribution (In MN) : 2016
140
120
120
100
100
80
80
60
60
40
40
20
20
0
0
0-4
5-9
10-14
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65-69
70-74
75-79
80+
140
0-4
5-9
10-14
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65-69
70-74
75-79
80+
Population distribution (In MN) : 1996
77% of India’s population is less than 40 years old.
The average age of its population is 25 years.
Source: IMA Research, Census of India, Ministry of Home Affairs
India
Working Harder - A growing working population
India
China
Japan
UK
% of working age adults to total population
75
70
65
60
55
50
45
1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050
By 2020: India’s working age population ratio will be the highest in the
world. A huge opportunity…
Source: UN population division; working age defined as 15-64 years
OPPORTUNITIES
India
Globalization of world economy bolsters the increasing importance of
international trade and the roles of ports and MNC’s.
Technological
advances in
networking,
telecommunication,
& information
Economic
liberalization
Capital market
formation
Globalization
The importance
of international
trade
Globalization
Globalization
Globalization
Globalization
The importance
of port
economics
The role of
multinational
corporations
India
The increasing importance of Air/ Sea ports and MNCs
Economic Liberalization
Internationalization
Networking & Informationalization
*Source: Jennifer Fang-Yu Huang / Taiwan
India
India Auto Industry - Global Small Car & Outsourcing Hub!
COMMERCIAL
VEHICLES
India
India Auto Industry - Global Sourcing Giants!
India
India – HI-Tech Industry
India
Multinational Companies
* Partial List
India
MNC’s – A part of Rural India
India
MNC’s – A part of Rural India
India
MNC’s – A part of Rural India
India
Consumerism in India - A brave new world
Indian mangoes have hit US shelves( Walmart)
Harley Davidson motor cycles cruising India’s roads
India
Consumerism in India – Grape Expectations

$ 1 BN Industry

25- 30 % Growth in Consumption

Estimated consumption to reach
14.7 MN litres by 2012 end
Indian Wine Industry Forecast to 2012
India
900+ MN Mobile subscribers – Still Growing
Estimated 10 MN potential new mobile phone buyers every month
India
Dabbawala’s - Management Skills

116 years old Business

5000 strong Semi-Literate
work force

1,75,000 boxes delivered daily
in a 3 hour period

Achievements:
- Six Sigma
- ISO
India
12th Plan – To Focus on All Inclusive Growth
50% - Private sector participation (11th Plan 36%) - Decade ago - 5%
12th Five year Investment plan
Total – $1025 BN ($ 514 BN 11th Plan)
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
132
155
178
202
230
260
India
Doing Business in India
India
Doing Business in India
The question for CEO’s the world over was not
“ Should my company go to India?”
But rather
“Can my company afford not to be in India?”
… On the economic front, it is clearly opportunity INDIA
Mr. Kamal Nath
Former Minister of Commerce & Industry
Government of India
India
Challenges
India
Challenges
 Infrastructure bottlenecks – Logistics
 Local customs and habits / Religious beliefs
 Analysis of skilled Manpower
 Pent up Demand
 Capital vs Labor
Prerequisites for Success
Preparation and Planning
Prerequisites for Success
Preparation and Planning
 Feasibility / Research prior Launch
 Work with specialists / Outsource
 Choose the right Markets/Partners
 Bureaucracy / Policy matters
 Family Business (Ties)
 Cricket vs. Baseball
 Hollywood vs. Bollywood
Prerequisites for Success
Preparation and Planning
 Joint Ventures & Acquisitions ?
 Board of Directors
 Tax / Statutory Obligations - Manage but do not fall for Avoidance
 Technology
 Effective communication
 Patience (Long-term view)
Some Tips
Do’s
 Be Global as well as Indian to succeed
 Special Pricing for Indian market
 Research, Assessment - Understand the Market
 Study Logistics … and supply chain, delivery system
 HR Policies to meet local environment
Some Tips
Don'ts
 Try to do too much too early
 Take short term positions in the market
 Interfere with local Management Practices
 Politicize the organization
 Take Consumer for Granted - Threat or Opportunity
THANK YOU
Captain. Somesh Batra
someshbatra@seahorsegroup.co.in
someshbatra@yml.in