Nirav Kothary Head, Industrial Services, India Status & Leverage of Logistics Parks in India.

© 2011 Jones Lang LaSalle. All rights reserved. Jones Lang LaSalle Brief Industrial & Logistic Services, India Logistic Parks – Current Scenario Challenges and Way Ahead Logistics – Where are we placed? Presentation Structure Your Point of Contact Case Study China

© 2011 Jones Lang LaSalle. All rights reserved. Logistics – Where are we placed?

© 2011 Jones Lang LaSalle. All rights reserved. 60 Year’s CAGR for Population = 2.0% 59Year’s CAGR for GDP at Factor Cost and Constant Price = 5.2 % Indian GDP and Population Growth Note: GDP at factor cost at constant prices relates to prices upto From onwards, data are based on new series ( ) prices. Source: Economic Survey of India, and Census of India * GDP figures relate to * India has the size and its growing fast India - Huge Market Size

© 2011 Jones Lang LaSalle. All rights reserved. India - Strong Industrial Growth Strong Industrial production Is India’s Logistic Scenario ready to absorb it? Healthy Industrial Production growth among Top 10 performing countries Source: CIA World Factbook, 2010

© 2011 Jones Lang LaSalle. All rights reserved. Indian Logistics – Only in transforming state – Long way to go “India is 39 th in Logistics Performance Index (LPI) in world.” Logistic Performance Index of BRIC Nations Still a long way to go…..

© 2011 Jones Lang LaSalle. All rights reserved. Drivers of Warehousing Industry 5 th largest consumer Market in the world by 2025 (McKinsey) Retail market to grow to US$ 420Bn by 2025 (McKinsey) 18.5% of India’s GDP Agri exports grew by 25% in 08-09, expected to be US$ 18 Bn by (APEDA) Top 12 producers of manufacturing value added (MVA) Investment prospect of US$ 180 Bn. in 5 yrs. (Investment Commission) Containerized traffic to grow by average rate of 18% annually over the next decade (SCI) Govt. Investment target of US$ Bn over the next 2 yrs. in the infrastructure sector. (Planning Commission) Expected phase out of Central Sales tax and implementation of Goods and Services Tax (GST) Free Trade Warehousing Zones

© 2011 Jones Lang LaSalle. All rights reserved. Logistic Parks – Current Scenario

© 2011 Jones Lang LaSalle. All rights reserved. Warehousing Hubs in India Source: Jones Lang LaSalle Secondary Hubs Surat Goa Chandigarh Pune Vadodara Vizag Kochi Coimbatore Nagpur Trivandrum Jaipur Nashik Mangalore Indore Ludhiana Tertiary Hubs Vijayawada Jalandhar Mysore Bhopal Amritsar Patna Lucknow Kanpur Agra Bhubaneshwar Jodhpur Guwahati Allahabad Varanasi Meerut Primary Hubs NCR-Delhi Mumbai Chennai Kolkata Bangalore Hyderabad Ahmedabad

© 2011 Jones Lang LaSalle. All rights reserved. Logistic Parks in India NCRMumbaiChennaiBangaloreKolkataHyderabadPune Avg. Land Cost – – 20 Avg. Rents Major Warehousing Locations PalwalBhiwandiSriperumbudurTumkur rd.DhulagarhKompallyChakan JamalpurPanvelIrungatukottaiHaskoteAnkurhatiGundlapochampallyTalegaon Bhorah KalanTalojaOragadamMysore Rd.Hide Rd.MedchalWagholi LohariRasayaniMaraimalainagarDevanahalliKonaPatancheruShirval DharuheraPatalgangaMadavaramHasur Rd.DankuniShamshabad Major Logistic Parks in India Source: Jones Lang LaSalle; Note: [1] = Avg. Land Cost in INR Million / acres & [2] = Avg. Rents are in INR / sft / month EXIM CargoRetail GoodsAutomotiveTextilesPharmaceuticalsIT & Telecom Ahmedabad Bangalore Chennai Hyderabad Kolkata Mumbai NCR-Delhi Major demand generators for warehousing Source: Jones Lang LaSalle

© 2011 Jones Lang LaSalle. All rights reserved. Case Study China

© 2011 Jones Lang LaSalle. All rights reserved. Case Study China Beijing and Tianjin - An Integrated Economy and Logistics Market Dalian and Qingdao - Regional Shipping Centres Cities in Greater Yangtze River Delta - Support Shanghai Pearl River Delta - More Ports Along the Coastal Line - Enhanced Connection with Hong Kong Chengdu and Chongqing - Service West China Logistic Hotspots in China

© 2011 Jones Lang LaSalle. All rights reserved. Case Study China Shanghai – China Focus Shanghai: Major Logistic Parks

© 2011 Jones Lang LaSalle. All rights reserved. Case Study China Changing WH Usage International Operator Presence Deregulation and sophistication International operators increase efficiencies Growing FDI also globalizes the logistic market Lessons Learnt

© 2011 Jones Lang LaSalle. All rights reserved. Challenges and Way Ahead

© 2011 Jones Lang LaSalle. All rights reserved. Critical Challenges Faced by Warehousing Industry in India Availability of affordable land at desired locations Non – transparent and unorganized warehouse real estate market. Unclear title and approvals hassles Land values attaining peaks in the past 3 – 5 years, the availability of affordable land is a concern. Integration of various modes of logistics Key challenge is to integrate all these modes (road, rail, air & sea) to ensure efficient delivery though cost effective means. Exploring the opportunity of multimodal transport system integrating different geographical scales from the global to the local. Taxation & regulatory policies Government’s role to promote organized warehousing with clear cut rules and regulations The expected phase-out of Central Sales Tax and implementation of Goods and Services Tax (GST) Standardization of warehouse specifications across geographies Lack of standards - Quality and flexibility of available warehousing space is a major concern. There is a dearth of quality temperature controlled storage spaces across the region, Infrastructure The widening gap between the growth of infrastructure sector and that of organized warehousing While significant outlay has been done at a macro-level, infrastructure at the warehouse level also needs focus. Trained and professional manpower Skilled work force to manage warehouses of tomorrow will mitigate risks of high inventory levels and poor service offerings

© 2011 Jones Lang LaSalle. All rights reserved. Optimization of Cost Source: CII Institute of Logistics, India. Minimizing Losses Effective Planning of WH positioning Reducing transportation cost Effective inventory management Efficient storage facilities - warehouses Unbroken Cold chain Locating warehouse in optimal locations keeping in mind both supply and distribution networks. Efficient transportation fleet Shifting to cost efficient transportation mode Extensive use of RFID Tagging Professional Management of inventory Optimization might be achieved by:

© 2011 Jones Lang LaSalle. All rights reserved. Jones Lang LaSalle Brief

© 2011 Jones Lang LaSalle. All rights reserved. Key Statistics 2011 Revenue $3.6B Sq ft under management 1.8 Billion Employees 42,000+ Licensed Brokers 2,600 Research staff 300+ Locations 1, offices 535 cities 14 countries Americas 60 offices 126 cities 31 countries EMEA 77 offices 156 cities 13 countries Asia Pacific Locally focused, Regionally co-ordinated, Globally aligned

© 2011 Jones Lang LaSalle. All rights reserved. Largest geographical footprint – 14 offices in 11 cities A growing base of employees, currently over 4,000 Two out of five professionals in the organised Indian real estate sector work for Jones Lang LaSalle Perfect combination of global best practices and local, grass-root level insights An expanded presence in growing Tier II and Tier III cities Tier 1 Cities Tier 2 Cities CHANDIGARH DELHI KOLKATA MUMBAI PUNE HYDERABAD CHENNAI BANGALORE COIMBATORE KOCHI AHMEDABAD Delhi, Mumbai, Hyderabad, Bangalore, Chennai Chandigarh, Ahmedabad, Pune, Kolkata, Kochi, Coimbatore Tier 3 and Other Cities – Foothold in 90 + cities Allahabad Agra Amritsar Anand Aurangabad Baroda Bhavnagar Bhilai Bhubaneshwa r Durgaur Goa Gorakhpur Guwahati Gwalior Hawra Hubli Indore Jabalpur Jodhpur Kalyan Kanpur Kharagpur Kolhapur Lucknow Ludhiana Mangalore Meerut Mehsana Moradabad Mysore Nashik Nanded Panipat Raipur Rajkot Siliguri Surat Thane Thiruvananthapuram Ujjain Vapi Vizag Vijaywada Jones Lang LaSalle, India

© 2011 Jones Lang LaSalle. All rights reserved. World’s Most Ethical Companies (for four years in a row) Ethics Inside Certification Rigid Code of Ethics Account Management Research Suite Single point of contact Empowered account managers Ensures consistent delivery What keeps us ahead of the Curve ?

© 2011 Jones Lang LaSalle. All rights reserved. Industrial & Logistic Services, India

© 2011 Jones Lang LaSalle. All rights reserved. Americas US:169 Canada: 9 Mexico: 11 Brazil:3 196 industrial professionals Australia:74 China:60 Hong Kong:5 India:14 Indonesia:1 Japan:2 Korea:1 New Zealand:10 Asia Pacific EMEA Belgium:6 CEE:8 France: 11 Germany:28 Holland: industrial professionals181 industrial professionals # Industrial transactions: 1,146 Total $ consideration: $3.7 billion Total s.f.: 76 million Italy:4 Russia:9 Spain:20 UK:33 Philippines:2 Singapore:4 Taiwan:2 Thailand:4 Vietnam:2 Malaysia:2 Asia Regional: # Industrial transactions: 900 Total $ consideration: $2.1 billion Total s.f.: 109 million 2010 # Industrial transactions: 850 Total $ consideration: $1.6 billion Total s.f.: 53 million Panama:1 Argentina:2 Chile:1 Jones Lang LaSalle – Global Industrial & Logistic Footprint

© 2011 Jones Lang LaSalle. All rights reserved Transactions 12+ Mn. Sft. transacted 14 Team Members 40+ Consulting 7 City Presence Industrial tenant representation Industrial property marketing Supply chain & Logistics Solutions Industrial asset disposition Project Development Services Energy and sustainability Site selection/incentives Industrial Valuation Port, airport & multi modal services Our Service Offerings: Business Location Consulting Industrial & Logistic Service Offerings & Footprint in India

© 2011 Jones Lang LaSalle. All rights reserved. “I would like to commend JLL’s performance in managing our Chakan MIDC transaction to a successful outcome. JLL managed the purchase process from concept through to negotiation and completion in a very efficient and professional manner. This delivered a result by the team which met our expected timeframe and targeted purchase value and savings.” Ruairi McCafferty Manager of Real Estate Europe, Middle East & Africa Federal-Mogul Corporation “JLL has found a very good location and followed up very diligently on all the items, with the landowners and was very professional & competent in the managing of the real estate aspects.” Peter Allen Lubricants LSC Business Development Manager Shell “Jones Lang LaSalle had worked with us for a few months on the relocation & expansion project of our plant at Bangalore. JLL gave us valuable inputs with their excellent market knowledge and technical expertise in this assignment. They were professional in their approach and efficient. I thank JLL for their close collaboration and support on this important project.” David Stanley Managing Director & CEO AMC India Built to SuitAcquisition / Disposition Consulting Select Clientele and Testimonial

© 2011 Jones Lang LaSalle. All rights reserved. Your Point of Contact

© 2011 Jones Lang LaSalle. All rights reserved. Your Point of Contact Nirav Kothary Sr. Vice President Head – Industrial Services, India Hand phone: Your Point of Contact

© 2011 Jones Lang LaSalle. All rights reserved. Thank You