OPPORTUNITIES IN DRY BULK LOGISTICS IN INDIA B. Velan Managing Director Scorpio Engineering Pvt Ltd India

ENVIRONMENTAL DISASTER OR COMMERCIAL OPPORTUNITY?

28 States and 7 Union Territories

1.Andhra Pradesh 2.Arunachal Pradesh 3.Assam 4.Bihar 5.Chhattisgarh 6.Goa 7.Gujarat 8.Haryana 9.Himachal Pradesh 10.Jammu and Kashmir 11.Jharkhand 12.Karnataka 13.Kerala 14.Madhya Pradesh 15.Maharashtra 16.Manipur 17.Meghalaya 18.Mizoram 19.Nagaland 20.Orissa 21.Punjab 22.Rajasthan 23.Sikkim 24.Tamil Nadu 25.Tripura 26.Uttar Pradesh 27.Uttarakbhand 28.West Bengal States of India 28 A.Andaman and Nicobar Islands B.Chandigarh C.Dadra and Nagar Haveli D.Daman and Diu E.Lakshadweep F.National Capital Territory of Delhi G.Puducherry Union Territories of India 7

MAJOR ROADS NETWORK KM excl rural roads of KM 65% of freight moves on roads North-South 3200km East-West 3000km 3.3m sq km area 7 th largest country

Total navigable length 14200km ( will increase with desilting) Developed to date: 5 national waterways, 4500km

63000 ROUTE KM NETWORK 3 RD LARGEST IN THE WORLD ( TRACK KM)

bottom discharge alumina rail wagon

7500km coastline 180 minor ports 13 major ports

INDIA PORTS 13 Major Ports, mainly Government owned 180+ Minor Ports, open to private investment and public-private partnership Total of USD 10 billion to be spent on Ports and Terminals by 2020 Projects for interlinking rivers and developing Inland Waterways

TYPICAL PRODUCTION LEVELS Sugar 20 million tonnes per year – equal to production in entire Europe Cement 300 million tonnes – equal to production in entire Europe Soda Ash 3 million tonnes Grain 86 million tonnes Rice 120 million tonnes Alumina 2 million tonnes TOTAL NUMBER OF 50KG BAGS: 10 BILLION/YR 27 MILLION /DAY

THE DISTRIBUTION SCENE 27 million 50kg bags per day Potentially linered 20ft containers per day Potentially silo trucks (40T) per day Potentially 675 river barges per day (2000 dwt) IS THIS NOT A CASE FOR A SPECIALIZED DRY BULK LOGISTICS COMPANY IN INDIA?

Kassbohrer Germany Convair Australia ACC Cement India Types of Road Bulk Trucks

Courtesy Caretex Denmark

Courtesy Interbulk Group UK

Silos for dry bulk materials in Indian manufacturing plants- these are few and far between as of now- the potential is exponential. The silo to silo concept should become the norm.

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POSSIBLE BUSINESS MODEL Own all assets: silo trucks, barges, bulk trucks, isocontainers. Provide one stop solution Outsource and manage Lease silos and silo loading/unloading, bagging equipment to customers. Use modular concept- silo parks Take long term contracts on per tonne basis of materials supplied

FUNDING Capital is not a constraint VCs and Investment funds are plenty waiting to invest in India and Indian infrastructure/logistics ( highest logistics costs in India compared to all other comparable countries) Long term approach and investment as a focussed business area

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