Avg Logistics Ltd. · NSE:AVG
Avg Logistics — Investor Presentation (September 2018)
26 slides from Avg Logistics's investor presentation, Sep 7, 2018
Slide 1: AVG Logistics Ltd. Corporate Presentation
Private & Confidential AVG Logistics Ltd. Corporate Presentation September 2018 1
Slide 2: Company Overview
Company Overview Incorporated in 2010, AVG specializes in Transportation and warehousing services to select clients with PAN India distribution Emerging as a network and automated technology systems. It has a fleet of more than 1,100 vehicles including 347 owned and 396,000 sq ft reputed third of
Slide 3: Serving the largest segments of the logistics industry
Serving the largest segments of the logistics industry Modes of freight Types of Storage & transportation Warehousing AVG’s business operations Industry/Retail Roadways Warehousing FTL/LTL Transportation Liquid storage Railways Warehousing Agri Warehousing Waterways Railways Cold storage Airways War
Slide 4: Strong infrastructure in place
Strong infrastructure in place Dedicated, well-trained and experienced workforce which makes 520+ dedicated work force the operations run 24*7, 365 days in an efficient manner Over 1,100 trucks under Certified all weather proof, containerized vehicles offer FTL, LTL, operations with 242/105 ODC
Slide 5: Financials at a glance
Financials at a glance Steady earnings growth trajectory Driven by gradual margin expansion 2,500 2,243 80 12.0% 10.6% 1,922 1,947 76 70 10.0% 2,000 1,831 8.3% 8.6% 60 8.0% 7.1% 7.1% 1,500 1,303 50 45 6.0% 40 38 1,000 30 32 4.0% 26 20 500 2.0% 10 0.0% - 0 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17
Slide 6: Future Growth Strategy
Future Growth Strategy Vehicle Fleet • Seeing significant order pipeline from current and potential clients, the company plans to add about 250 vehicles to its owned fleet in next 3 years in addition to hiring more market trucks as it enters into newer routes. Own trucks will offer better customer s
Slide 7: Spreading branch network to help source more business
Spreading branch network to help source more business Nation wide presence Service spread across 23 states. Including 347 owned transport Owned Vehicles vehicles Customized 3PL and warehousing solutions Solutions to select customers Award winning service quality Quality Service and continued support
Slide 8: Sharp focus on critical success factors – drivers & technology
Sharp focus on critical success factors – drivers & technology Focused on improving driver skill set and leveraging technology to improve operational efficiency Induction training – Management and motivation of drivers Driver Apps – Vehicle tracking, delay management, breakdowns Ongoing training – E
Slide 9: AVG’s owned fleet of dry and refrigerated vehicles
AVG’s owned fleet of dry and refrigerated vehicles Innovative Malaysian-design bulker for no-residue transport 1 Ton pick-up for secondary transport 12 Ton 32 ft reefer vehicle for refrigerated containers 19 Ton 34 ft dry vehicle for container transport 9
Slide 10: Owned warehouses coming up in Agartala and Mysore
Owned warehouses coming up in Agartala and Mysore AGARTALA MYSORE Project Cost – Rs 70mn Project Cost – Rs 90mn COST OF PROJECT Land Building Land Building Rs 2mn Rs 67.4mn Rs 18.0mn Rs 71.1mn REVENUE POTENTIAL Rs10-12mn Rs16-20mn PAYBACK PERIOD 6-7 yrs 6-7 yrs ROCE 16-18% 16-18% Timelines of the pr
Slide 11: Latest technology to help scale-up operations
Latest technology to help scale-up operations Green Driving Indicator to check drive quality Real time GPS to track fleet movement Online order management portal 24*7 central control room monitored by Fully CCTV enabled warehouses & branch Online market vehicle data network with biometric machines h
Slide 12: Diversified marquee client base
Diversified marquee client base Revenue breakdown FY15 – Nestle was 45% of sales Eastern Condiment, 1% Almonard, 1% Others, 24% Nestle, 45% Agrotech Foods, 2% Ultratech, 2% DS group, Duraline, 3% 8% Amara Raja, 3% GSK, 4% SC Johnson, 6% Revenue breakdown FY18 – Nestle is 38% of sales NCERT Bharti Mo
Slide 13: Marketing developments – business won so far in FY19
Marketing developments – business won so far in FY19 Expected annual value of Sr. No. Name of Customer Paticulars services (Rs mn) Amara Raja Company has agreed to add two more states viz. Gujarat and 1. 100 Batteries Maharashtra for transportation of materials with effect from July,2018 Tamilnadu N
Slide 14: Multiple vendor tie-ups to improve profitability further
Multiple vendor tie-ups to improve profitability further AVG has a sharp focus on costs and is opportunistically looking at periodic schemes and tie-ups with vendors and service providers with view to drive further cost savings. Some examples of such tie ups include Fastag from ICICI Bank to get cas
Slide 15: Doubling of vehicle fleet and warehouse space to aid margins
Doubling of vehicle fleet and warehouse space to aid margins Own Fleet size to cross 500 in 3 years Warehousing space to increase to 7.3mn sq ft 600 8.0 7.3 500 7.0 500 6.0 400 347 5.0 4.0 300 264 4.0 3.5 3.0 200 2.0 100 1.0 0 - FY17 FY18 3 yr Potential FY17 FY18 3 yr Potential FY17 FY18 3 yr Potent
Slide 16: Experienced management team
Experienced management team Managing Director & CEO of the company With over 30+ years of experience, Mr. Gupta is a veteran in the logistics business Strong past leadership experience in multi-modal logistics management Mr. Sanjay Gupta MD & CEO Joined in September 2016 as Vice-President
Slide 17: Experienced management team
Experienced management team Joined the company in 2015 as head of marketing, currently is the GM of Marketing Has over 12+ years of experience within logistics industry having been previously associated with FedEx, SafeExpress and Gati Mr. Niraj Kumar GM (Marketing & BD) Joined the company in
Slide 18: Corporate structure
Corporate structure ZN (Ohare 18 \
Slide 19: Awards & Accreditations
Awards & Accreditations ASSOCHAM Excellence Award – Best Logistics Company of the year 2016. FSC Cold Chain Award - Operational Excellence in Cold Chain FMCG 2016 & 2017. Global Logistics Excellence : Emerging 3PL Warehousing & Logistics Company. SEDEX Compliant – Responsible Sourcing Progra
Slide 20: Financial Summary
Financial Summary (All Figures in INR Million, unless specified) FY 15 FY16 FY17 FY18 Profit & Loss Statement Net Revenue 1,831 1,922 1,947 2,243 EBITDA 130 159 167 237 EBITDA Margin 7.1% 8.3% 8.6% 10.6% Depreciation 41 46 48 57 Finance Cost 43 56 55 64 Tax 16 19 20 45 Profit After Tax 32 38 45 76 P
Slide 21: Industry Outlook: Indian logistic industry to grow at a CAGR of ~13%
Industry Outlook: Indian logistic industry to grow at a CAGR of ~13% to Rs 9.2 trillion in FY20 Total logistic market Rs 6,425bn in FY17 estimated Total logistic market Rs 9,236bn in FY20 planned The Industry is dominated by transportation accounting to ~88%, and is expected to remain high over th
Slide 22: GST to be a game changer for the logistics industry
GST to be a game changer for the logistics industry Implication of GST Also And /or enables Savings from Dismantling of Tax savings consolidation border check posts (hub and spoke model) Any reduction in Lowers NO CST tax rate below No cascading effect transportation time current RNR Reduces better
Slide 23: Demand from consumer centric industries set to grow faster
Demand from consumer centric industries set to grow faster Growth of consumer centric industries vs raw material Growth in the underlying economy centric industry (FY12-16) Consumer centric Raw material centric Manufacturing and trade are expected to see strong growth on account of strong initiati
Slide 24: Opportunities for Logistics Service Providers
Opportunities for Logistics Service Providers Opportunities in logistic service requirements for key industries Change in logistics service requirements for key industries Opportunities for organised LSPs Investment in a fleet of higher capacity vehicle which Use of higher capacity vehicles for
Slide 25: Transportation value chain
Transportation value chain In-plant logistics Supplier Manufacturer Retailer/Buyer Mother Secondary Manufacturer Retailer/Buyer warehouses warehouses Primary transportation Secondary transportation End-to End supply chain player Other services across the entire value chain 25
Slide 26: Thank You
Thank You aN (Sai -A STEP AHEAD \e
AVG Logistics — Investor Presentation (September 2018) on 6ix