THE OPPORTUNITY OF THE FREE TRADE & WAREHOUSING ZONE (FTWZ)

& Arshiyas Integrated Logistics Services

FTWZ FTWZ Rail Infrastructure Rail Infrastructure Domestic Distripark Domestic Logistics Distripark LogisticsSupply Chain Supply Chain Management Transport & Management Handling Technology Technology

THE BIG THREE REASONS AS TO WHY FTWZ

While Consumption in India will grow in real terms from US$ 378 billion
presently to US$ 1.56 trillion by 2025 a fourfold increase, reality is that :

- India ranks 17th in terms of importing world products, consuming just over 2% of globally produced merchandise, but growing @ 35%
While by 2020, India is projected to have an additional 47 million working population, almost equal to the total world shortfall, with an average Indian age of 29 fuelling our ability to become a manufacturing mecca of the world, reality is that:

- India ranks 26th as per WTO in terms of exporting world products contributing just over 1.3% of globally consumed merchandise, but growing @ 22%
India's container throughput in CY10 was just over 9.3 million TEU's, as compared to Dubai (12 million), Singapore (28 million) & China (169 million)

- Indicating zero penetration to the Value Addition, Hubbing and Re-Export market leveraging our cost and skill arbitrage

ABOUT FREE TRADE & WAREHOUSING ZONES (FTWZ)

GOI Introduces the Free Trade & Warehousing Zones Policy, as a part of Foreign Trade Policy (FTP) 2004-2009 Governed by the SEZ ACT,2005 & SEZ Rules,2006

Free Trade Zones in other countries:

Jebel

Ali Free Zone (48 Sq. Km of area) in Dubai, Changi Airport in

Singapore, China (Shenzhen, Shanghai, Tianjin etc.)

Activities allowed inside the FTWZ: packaging, re-packaging, labeling, re-labeling,

consolidation, kitting etc.

Authorized Services such as transportation from Port to FTWZ, documentation, packaging, re-packaging, labeling, re-labeling, strapping, refurbishment, crating, cartonisation, fumigation, choking, lashing, tagging, shrink/stretch/bubble wrapping, palletization, bagging, re-bagging, quality assurance, kitting, dekitting, sorting assorting, making combination pack, consolidation, agglomeration, washing, cleaning, processing, repairs & maintenance, CKD/SKD assembly, bottling, blending, cutting, polishing, painting, coating, filming, resizing, splitting, threading, coupling etc.

ENTRY BARRIERS FOR DEVELOPING & OPERATING FTWZs IN INDIA

Minimum contiguous area required: 100 Acres & above, with minimum built up area of 100,000 Sqm
Acquisition of land at strategic locations (near Major Ports/Airport, manufacturing Hubs & Industrial areas Multiple levels of approval process from the state & central government (Informal & Formal Approval and Notification) FTWZ in a sector specific SEZ, cannot cater to any unit outside the sector specific SEZ

BUSINESS SCALABILITY BARRIERS

Due to Indias unique geography & market demography, integrating FTWZs with other critical logistics infrastructure such as Rail Connectivity & Domestic Distribution hubs

Integrating Hard Infrastructure - (FTWZs, Rail Infrastructure & Domestic Distriparks) with Soft Infrastructure - Global 3PL, Domestic 4PL, Handling & Transportation and IT

Expertise not only in developing world class state-of-the-art logistics infrastructure, but also experience in operating FTWZs to mitigate customers logistics & supply chain challenges unique to India

Offering a One Throat to Catch end-to-end integrated logistics & supply chain services to global customers

FTWZ - UNIQUE BENEFITS FOR IMPORTS

Flexibility towards end distribution in India Duty deferment benefits (freeing up working capital & increasing sales )

Quality control capability prior to duty- payment

Exemption on SAD, VAT & CST on imports through FTWZ Hassle-free re-export regulatory /duty implications Reduced buffer stocks Service Tax exemption on services availed; including transportation inside India Lowered product costs Foreign exchange transaction capability

GAME CHANGER BENEFITS OF FTWZ

BENEFITS OF IMPORTING PRODUCTS INTO INDIA THROUGH THE FTWZ (DEEMED FOREIGN TERRITORY)

GLOBAL AUTOMOBILE MANUFACTURERS CURRENT SUPPLY CHAIN

International Suppliers
Rejection after duty payment Supply of spares and parts to Dealers in India for after sales and service

Dealers in India

International Suppliers

Dealers in India

International Suppliers

Indian Ports

India Manufacturing Plant

Dealers in India

International Suppliers
Storage of Spares, Parts and Components for after sales & service post duty payment

Dealers in India

International Suppliers

Rejection after duty payment

Dealers in India

Duty paid storage of spares implicating higher working capital of the supply chain implicating higher cost of product

Limitations in volume of storage increasing lead time for customer delivery

Higher lead time for client delivery creating customers dissatisfaction (unauthorised spares in the market)

Quality control post duty payment increasing hassle for re-export and therefore cost

ARSHIYAS SOLUTION THROUGH FTWZ

International Suppliers
Rejection without duty payment Storage of Spares, Parts and Components for after sales & service without duty payment

Dealers in India

International Suppliers

Dealers in India

International Suppliers

International Dealers

International Suppliers

FTWZ

International Dealers

International Suppliers

Rejection without duty payment

Regional distribution of spares and parts enabling the income tax exemption on the re-export of imported spares and parts

International Dealers

Duty deferred storage reducing working capital and therefore cost of product

Reduction in lead time in supplying the spares for after sales and limitless capability of spares storage Quality control before duty payment enabling hassle free re-export process and therefore lowering of associated supply chain costs Regional Distribution capability leveraging cost/skill arbitrage of India in addition to Income tax exemption of profits from this activity

FTWZ - UNIQUE BENEFITS FOR EXPORTS

Products from India entering the FTWZ are treated as deemed export

providing immediate benefits to suppliers

Local Tax Exemption (e.g. CST, Sales Tax, Excise & VAT) on all activities conducted inside the FTWZ Export quotas able to be met for companies exporting into FTWZ Increased efficiency through lowered reverse logistics through quality control before dispatch from India Foreign exchange transactions capability

Increasing supply chain efficiencies (forward & reverse) while enhancing

capital cash flow

GAME CHANGER BENEFITS OF FTWZ

CASE STUDY BENEFITS OF EXPORTING

PRODUCTS OUT OF INDIA THROUGH THE FTWZ

(DEEMED FOREIGN TERRITORY)

GLOBAL FMCG MAJORS CURRENT SUPPLY CHAIN

Reverse logistics of rejected materials Breaking and re-invoicing of units as per different store demands is conducted before dispatches to the stores.

Supplier 1

Store 1 Various Ports across India DC in Europe For value addition

Supplier 2

Store 2

Supplier 93
All the SKUs are sent by the suppliers directly to DC in Europe by suppliers

93 suppliers from India , Karachi(18) Bangladesh(15), & Sri Lanka (4)

Store 173

Distribution Center (DC) in Europe maintained only due to invoicing regulatory limitations where consolidations of products sourced from India is done Increased supply chain cycle lead time and associated costs

Companys India trading arm responsible for any under/over invoicing or customs issues with respect to shipments of suppliers without having any control over process
Quality control currently in European DC causing higher product returns European DC doing labeling for products made in India/Asian sub-continent

ARSHIYAS SOLUTION THROUGH FTWZ

Supplier 1 Supplier 2

Store 1

Supplier 93

Store 2

Supplier in Pakistan Supplier in Bangladesh & Sri Lanka

FTWZ
DC in FTWZ for Value addition

Store 173

FTWZ removes regulatory limitations of consolidating product from suppliers in India, Sri Lanka, Bangladesh & Pakistan in Asia Significant reduction in DC operations costs of India Vs. Europe

Value addition for end-distribution to world-wide stores done in FTWZ in India lowering costs.
Reduction in suppliers working capital due to faster payment cycle Lowered reverse logistics cost Enhanced control and efficiency in inventory management - closer to the suppliers

FTWZ - UNIQUE BENEFITS FOR RE-EXPORTS

Service tax exemption on all activities conducted inside the FTWZ including rental & labour

Exemption from custom and stamp duty on products imported into FTWZ; meant
for re-export out of India Income tax exemption on profit where applicable Hassle-free re-export process Permission of 100% FDI for the set-up of units by the unit holder of the FTWZ Ability to leverage Indias cost, skill & geographic positioning advantage as a hub for regional/global distribution post Value Addition activities

GAME CHANGER BENEFITS OF FTWZ

CASE STUDY BENEFITS OF HUBBING & VALUE

ADDITION OF PRODUCTS IN INDIA THROUGH

THE FTWZ (DEEMED FOREIGN TERRITORY)

GLOBAL MOBILE MANUFACTURERS CURRENT SUPPLY CHAIN

CHINA
Supply of Charger, Earphone and packaging material Supply of completely packaged mobile phones

Indian Subcontinent

Middle East
Supply of battery

USA

Far East Asia

Supply of handset

Regional Value Addition, Hubbing & Distribution Centre in Singapore/Dubai

South East Asia

GERMANY

VOS like Labelling, packaging, assembly and consolidation based on the country of export

Africa/Eastern Europe

Higher cost of operations in Singapore i.e. Labour, Water, Electricity, Materials etc.

Higher charges for Value Optimising Services (VOS) like labeling, packaging, assembly etc. Increasing cost of product

Technically skilled manpower expensive and not abundant

Cost of economies of scale

ARSHIYAS SOLUTION THROUGH FTWZ

CHINA
Supply of Charger, Earphone and packaging material Supply of completely packaged mobile phones

Indian Subcontinent

Supply of battery

Middle East

USA

Far East Asia

Supply of handset

FTWZ
VOS like Labelling, packaging, assembly and consolidation based on the country of export

South East Asia

GERMANY

Africa/Eastern Europe

Lower cost of operations in India i.e. Labour, Water, Electricity, Material etc.

Minimum charges for Value Optimising Services (VOS) like kitting, labeling, packaging, assembly etc. decreasing cost of product Local tax exemptions (Excise, VAT etc.) on all the value added service inside FTWZ

Abundance of technically skilled manpower

ARSHIYAS FTWZ IN MUMBAI INDIAS FIRST, OPERATIONAL SINCE NOV 2010

FIRST MOVER ADVANTAGE IN INDIAS LOGISTICS LANDSCAPE

165 Acre State-of-Art Facility 24km from JNPT Port featuring:

24x7 On-Site Custom Clearance House State-of-the-Art Infrastructure with World class Safety, Equipment & Maintenance Facilities Connectivity to our Pan-India Rail Network accelerating distribution through aggregation at strategic locations State-of-the-art ICD/CFS facility with superior Safety and Hazardous cargo handling capacity of 10,000+ containers including reefers

ARSHIYAS MUMBAI FTWZ

ARSHIYAS MUMBAI FTWZ

FTWZ WORLD CLASS INFRASTRUCTURE: WAREHOUSES AND YARDS

World-class Warehouses of 13 M height with G+6 palletized racking system, super-flat flooring & state-of-the-art Material Handling Equipments (MHEs)

Dedicated & customized Office space & area for Value Optimising Services (VOS) within the Warehouse
Mezzanine storage area with temperature controlled HVAC system & optional humidity control Warehouses designed as per Seismic Zone 4 requirements Container Yard (CY) with Pavement Quality Concrete (PQC) flooring for stacking containers in a G+5 stacking system using state-of-the-art Rubber Tyre Gantry Cranes (RTGCs) & Reach Stackers Over Dimensional Cargo (ODC) Yard with Paver-Block flooring for storage of cargo that cannot be stored in the Warehouse

FTWZ WORLD CLASS INFRASTRUCTURE

24x7 on-site Customs Clearance Business Ancillary Services: On-site Office spaces, Banks, Insurance, Currency Exchanges & CHAs that reduce operating costs for companies operating in the FTWZ Fire & Safety Amenities: Primary & Secondary fire fighting systems along with Tertiary Fire Engine at FTWZ site with trained Fire Fighting Professionals. Personnel having expertise & certification in handling DG Cargo. Secure IT Connectivity: Comprehensive IT system with network infrastructure such as a server room within each warehouse & a centralized data center with uninterrupted data, voice & video connectivity through primary & secondary vendors & 100% data back-up Ancillary Buildings and Facilities: Covered ODC Yard, Maintenance & Repair (M&R) Yard, Scrap Yard & an Empty Container Yard, Food court, Medical dispensary with Ambulance at site

Supporting Infrastructure: Weigh bridge, road network with up to 6 lanes to avoid congestion, Fuel Station in the processing zone, uninterrupted water & power supply systems & 100% power back-up using DG Sets
Storm Water Drainage System: Having a capacity to handle rainfall with peak intensity of 156 mm/ hour or 10 cubic m per sec, i.e. 3 times the highest recorded level of rainfall in Mumbai

Environmental Consciousness: The FTWZ emits no Industrial effluents & contains Sewage Treatment Plants, Waste Disposal Units, Rain Water Harvesting facilities & Green Areas

FACILITIES & VALUE OPTIMISING SERVICES IN THE FTWZ

FTWZ FTWZ

Rail Infrastructure Rail Infrastructure

Domestic Distripark Domestic Logistics Distripark

LogisticsSupply Chain Supply Chain Management Transport & Management Handling

Technology Technology

FACILITIES IN THE FTWZ

STANDARD WAREHOUSE ODC YARD (OPEN & COVERED) CONTAINER YARD (CFS) CHILLER/FREEZER HAZARDOUS STORAGE

TEMPERATURE CONTROLLED STORAGE

STRONG ROOM OFFICE INFRASTRUCTURE

VALUE OPTIMISING SERVICES (VOS) IN FTWZ

VOS ON CONTAINER
a. b. Customs Documentation Incoming & Outgoing Transportation (Port to FTWZ & return) Gate Coordination (incoming & outgoing) Survey of Cargo/Containers (incoming & outgoing) Handling / Loading & Unloading (inbound & outbound) g. f. g. h. i. Weighment of Containers h. Fumigation of Containers i. Scanning of Containers Strapping, refurbishment Bar-Coding a. b. c. d. e. d. e. f.

VOS ON PALLETS / BREAK-BULK OF PALLETS

Carting & Shifting of the Pallets Palletization Carbonization Strapping Shrink Wrapping Packaging / Re-packaging (into smaller parcels/cases /cartons) Labeling / Re-Labeling

HIGH END VOS

a. Quality Control (QC) b. Sorting / Assorting c. Kitting / De-kitting

d. Bottling/ Blending
e. Assembling f. Cutting & Threading g. Consolidation h. Agglomeration i. Repairs & Maintenance j. CKD/ SKD assembly k. Cutting/ Polishing l. Painting/ Coating m. Filming/ Re-sizing n. Splitting o. Threading p. Coupling, etc..

c.

i.
Lashing / Unlashing Services etc.

Tagging, shrink / stretch / bubble wrapping etc.

HOW DO WE CHARGE OUR CUSTOMERS Understanding of clients business model and Pain areas Creating consolidated business proposal specific to clients business model with one price inclusive of all elements like Transportation to and from FTWZ, Storage, VOS etc.. Pricing strategy based on clients VOS scope and throughput Also based on clients industry standard pricing practices e.g., For Steel Industry: Per ton basis For Wine Industry: Per case/piece basis For Large Importers and Exporters: Per Container Basis (Movement from Port to FTWZ and back including storage and all other services)

REVENUE MODEL OF AN FTWZ CLIENT

Client Name Sector Product Type No. of Pallets to start operations 6 - Month Rampup of Pallets V-XYZ Trading (Import & Re-Export) FMCG Products such as Perfumes, Sports Items, Deodrant, Shoes etc. 500 15000

Average Monthly Throughput

REVENUE MODEL COMPONENTS Rental Warehouse Rent @ INR 800/Pallet Storage Space - Mezzanine Office Space - Mezzanine Container Yard Rent ODC Yard rent Total Rent/Container Total Rent/Pallet REVENUE COMMENTS

16,000

Considering Avg. 20 Pallets/Container

16,000 800

REVENUE MODEL OF AN FTWZ CLIENT

VALUE OPTIMISING SERVICES (VOS)
Gate Charge (Inbound)

COMMENTS
Per Container

Handling (Inbound) @ INR 100/Pallet

Handling (Outbound) @ INR 100/Pallet

Gate Charge (Outbound)

Survey Charges (Inbound)

Survey Charges (Outbound)

Value Optimising Services like packaging, labeling etc. Packaging

150 2,000 2,000 150 150 150

Per Container
Per Container

Per Container
Per Container

Per Container

4,000
20,000 5,000 4,400 4,400

a) 1 Pallet = 10 Cartons, b) Total Cartons/Container = 200 c) Packaging Rate of INR 20/Carton a) Total Pieces/Container = 10,000 (50 pieces/carton) b) Labeling Rate of INR 2/Piece a) Bar Coding Rate of INR 0.50/Piece

Labeling Bar coding Transportation per container (Inbound) Transportation per container (Outbond)

All the cargo will be re-exported In this case all the incoming cargo will be palletized again for re-export

Palletization
Total VOS Revenue /Container/Turn

10,000
52,400

Total VOS Revenue /Pallet/Turn

Ratio (VOS Revenue / Rental Revenue) No. of Cycle in a month VOS (Variable) income to Rental (Fixed) Income

2,620
3.3 3 9.9

Per Piece Rate INR 6.99

34% reduction on current cost for customer

CUSTOMERS

All above logos are property of respective owners

CUSTOMERS

All above logos are property of respective owners

3PL CUSTOMERS

All above logos are property of respective owners

THE FTWZ REVOLUTIONIZING THE INDIAN LOGISTICS LANDSCAPE

FTWZ FTWZ

Rail Infrastructure Rail Infrastructure

Domestic Distripark Domestic Logistics Distripark

LogisticsSupply Chain Supply Chain Management Transport & Management Handling

Technology Technology

INDIAN LOGISTICS IN-EFFICIENCIES BECAUSE OF LACK OF HUBS

Logistics cost in India is fairly high at around 14% of GDP, as against 9%-10% in most developed nations: - On a 1.6 trillion GDP; this represents absolute value of in-efficiency and therefore logistics market potential of over US$65 billion - Even with the poor Road infrastructure & disorganized trucking network in the country, road currently accounts for approximately 65% of the total Indian freight transport, while Rail having only about 30% market share - India burns nearly US$2.5 billion worth of fuel on account of trucks standing idle on state check-posts India's level of containerization is less than 25% as against global average of 60% -70% The average time taken to clear import & export cargo at ports is about 19 days in India, against 3 to 4 in Singapore World Banks 2010 Logistics Performance Index (LPI) ranks India 47th in terms of logistics in-efficiency as compared to 130 countries globally in terms of - Customs Clearance, Infrastructure, Timelines, Shipments, Logistics Competences, Tracking & Tracing

CAPITALIZING ON INDIAS LOGISTICS OPPORTUNITY What does it take?

Free Trade Warehousing Zones (FTWZs)

To enable EXIM cargo Consolidation, Value Addition and allow India to become a Regional Trading Hub For Domestic distribution, cargo value addition and consolidation for Rail transportation to remove dependency on road Comprising of innovative Customized Containers for specific product types, Service Level agreements on timeline and deliver with Key Performance Indicators State-Of-The-Art Rail Terminals, at strategic locations across India with modern equipment to increase speed of loading/unloading and churn

Domestic Distriparks

Rail Infrastructure Solutions

Integrate Logistics Infrastructure with Global Logistics, Domestic Supply Chain Management , Handling & Transportation and IT

Global ocean & air logistics, domestic forward and reverse supply chain management with ownership on reduction of working capital and product visibility & control, through technology

ARSHIYA INTERNATIONAL LTD.

Capitalizing on Indias mammoth logistics opportunity through Integrated Supply Chain & Logistics Infrastructure Solutions

By partnering towards: FTWZs Rail Infrastructure Domestic Distriparks Technology Supply Chain Management International Logistics Handling & Transportation

ARSHIYAS PAN-INDIA INFRASTRUCTURE FOOTPRINT

5 FTWZs Rail Connected, Planned Pan-India

Mumbai (Operational since Nov10), Delhi (Go Live Q2FY12) followed by Nagpur, Chennai & one in the East

5 Domestic Distriparks - Planned Pan-India, Complimenting the FTWZ Network

First of the Domestic Distriparks (in Khurja near Delhi) operational by Q2FY12

150 Train Pan-India Rail Operations

Providing unique and customized solutions to marquee customers with long term contracts Inducted 16 trains since FEB09 and one of the most profitable Private Container Train Operators (PCTO) Pan-India Rail Terminal Network complimenting each FTWZ, Domestic Distripark & Rail Operations accelerating cargo distribution through aggregation

ARSHIYAS KHURJA FTWZ : LOCATION ADVANTAGE

18 km from the new Yamuna Expressway connecting Noida to Agra 12 km from proposed international airport at Jewar in UP Sikandarabad the neighbouring Developed Industrial City is < 30 km from the FTWZ Tughlakabad 80 km Dadri 60 km Bulandshahr 20 km About 70 km away from the National Capital Region (NCR)

ARSHIYAS UPCOMING INFRASTRUCTURE KHURJA (NEAR DELHI)

315 Acre Comprehensive Facility 90 km from Delhi Side-by-Side FTWZ (135 Acres) and Domestic Distripark (130 Acres) Arshiya Rail Infrastructure (50 Acres), including on-site Rail Siding Operations live as of Q2FY12 to be joined by similar models in Chennai, Nagpur & East State-of-the-art ICD/CFS facility with superior Safety and Hazardous cargo handling capacity of 10,000+ containers including reefers

KHURJA : PHASE 1 (FTWZ & DDP) LAUNCH, AUGUST, 2011

KHURJA RAIL SIDING: TO BE LAUNCHED OCTOBER, 2011

ARSHIYA RAIL INFRASTRUCTURE Customized Containers & Long Term Charter Contracts

Open top containers increasing speed of loading heavy cargo

Multi-purpose containers for dry-cargo increasing return utilization

Enhanced cargo locking facility inside the containers Customized containers for carrying various types of cargo

INTEGRATED REVENUE STREAMS THROUGH ARSHIYAS INFRASTRUCTURE

Captive Revenue Coming into Arshiyas FTWZ/Domestic Distripark

3PL revenues (Freight Forwarding + Local Transportation + Document Management) for product being pulled from outside India into FTWZ/Domestic Distripark Rail/Road/Supply Chain Management revenues for product being pulled from inside India to the FTWZ/Domestic Distripark.

Captive Revenue Inside Arshiyas FTWZ/Domestic Distripark:

Warehouse Management Warehouse and Equipment Rentals Value Optimising Services (Labeling, Assembly, Packaging, Re-packaging, Consolidation, De-consolidation, Quality Control etc.) Container Yard (CY) / Maintenance & Repairs

Captive Revenue from Product moving out of Arshiyas FTWZ/Domestic Distripark:

3PL revenues (Freight forwarding + Local Transportation + Document Management) for product being pushed from the FTWZ/Domestic Distripark to international markets Rail/Road/Supply Chain Management & Distribution revenues for product being pushed back into India from the FTWZ/Domestic Distriparks, including various services in the domestic hubs and sub-hubs

Revenue Streams: Core Services Supporting all of the above enhancing customer value:

IT Solutions/Legal & Regulatory consultancy services across the value chain and revenue streams

FINANCIAL PERFORMANCE
Revenue 102% EBITDA
176%

PAT 81%

EBITDA Margins

14.4 %

17.0 %

16.8 %

19.6 %

FY 08 FY 09 FY 10 FY11

Consolidated Highlights Operating Income INR Cr. EBITDA INR Cr. EBITDA MARGIN % PAT INR Cr. PAT MARGIN % EPS INR per share

FY 2008 401.2 57.7 14.4% 45.4 11.3% 9.4

FY 2009 503.0 85.5 17.0% 65.6 13.0% 11.3

FY 2010 525.9* 88.1* 16.8% 98.3 18.7% 16.7

FY 2011 821.5 160.8 19.6% 82.0 10.0% 14.0

YTD** 743.9 199.5 26.8% 89.9 12.1% 15.3#

*Operating income and EBITDA excludes income from sale of software marketing rights at INR 38.89 cr whereas PAT includes the same ** For 9M FY12 # not annualized

PROJECT SUMMARY (in INR Cr.)

Actual Spends as on 31.12.11 Total 626 1562 421 551 Debt 381 724 256 364 Equity 226 242 160 177 Total 607 966 416 541

Capex Projects
Arshiya Rail Infrastructure (Phase I)

Debt 400 1177 281 413

Equity 226 385 140 138

Arshiya Western FTWZ (Phase I & II)

Arshiya Northern FTWZ (Phase I) Arshiya Northern Domestic (Distripark Phase I)

TOTAL

2,271

889

3,160

1725

805

2530

Notes : 1. Company has invested further Rs. 93 crore as equity in Arshiya Central FTWZ (Nagpur) for land acquisition purpose. 2. Above Capex will be spent by June 2013 & balance equity funding of Rs. 84 crore will be met through internal accruals.

ARSHIYAS GLOBAL ADVISORY BOARD

Prof. Ashutosh Varshney
Professor of Political Science at Brown University, Former Advisor to World Bank & United Nations Development Program(UNDP), Carnegie Scholar & Winner of Guggenheim Fellowship Award

James Beltran
Chief Executive Officer & Director, Malaysian Assurance Alliance Berhad (MAA) International Assurance Ltd

Dr. John L Gattorna

Flemming Jacobs
Former Partner & CEO AP Moller Maersk, Advisory Council Member of Port of Singapore & On Advisory Board of Panama Canal Authority

Chairman & Advisory Board-Macquarie Graduate School of Management (MGSM) Institute for Logistics & Supply Chain Management, Former Managing Partner for over 36 years at Accenture - Supply Chain Practice

Michael Proffitt
Former CEO Dubai Logistics City, Logistics Director for Danzas Switzerland, Director of Logistics & Supply Chain Group Dubai, Over 25 years of experience in Logistics & Supply Chain

Dr. Frank-Jrgen Richter

President of Horasis: The Global Visions Community ,Former Director of World Economic Forum (WEF), Economic Columnist for The International Herald Tribune & The Wall Street Journal

Paul W Bradley
Chairman & CEO, Caprica International, Vice Chairman, Supply Chain Asia, Senior Leadership position at Li & Fung Group, NYK Line & BDP Asia

Prof. G Raghuram
Professor: Indian Institute of Management, Ahmedabad(IIM A), Author of Books on Logistics & Supply Chain & Public Private Partnerships

Richard Taffet
Partner, Bingham McCutchen LLP and Co-Chair, Bingham's Intellectual Property Litigation and Patent Prosecution Group

Dr. Jerry (Yoram) Wind

Wharton School of Business Lauder Professor of Marketing Strategy, Founder & Director of SEI Center for Advanced Study in Management at Wharton, Founder & Academic Director Wharton Fellows Program

William P Adamopoulos
President & Publisher: Forbes Asia, Former Publisher & Managing Director The Asian Wall Street Journal

FTWZ SAI - JULY 2009

FTWZ SAI - JULY 2009

SAME VIEW AUGUST 2010

CONTAINER YARD - AUGUST 2009

CONTAINER YARD - SEPTEMBER 2009

CONTAINER YARD - JULY 2010

CONTAINER YARD - JULY 2011

SUCCESS OF FTWZ - GAME CHANGER FOR GLOBAL ECONOMIES

Dubai Established in 1985, Jebel Ali Free Trade Zone (JAFZA) is spread across an area of 48 sq kms, with over 6,400 companies operating in the zone, including 120 of the Fortune Global 500 enterprises Accounts for 25% of all container throughput at Jebel Ali port & 12% of all air freight at Dubai International Airport. Over the years it has created over 1,60,000 direct jobs in the UAE through its companies Increased its revenue at an average of 34% year-on-year Contributed to Dubais GDP at 25% on a year-to-year basis Accounted for more than 50% of Dubais total exports Accounted for 20% of all FDI inflow into the UAE Grown its customer base by over 60% in the last four years

Even with an economy which is purely a transhipment hub, with comparatively low level of domestic consumption, FTWZ has been a game changer for Dubai

SUCCESS OF FTWZ - GAME CHANGER FOR GLOBAL ECONOMIES

China FTZs are operational since 1980 Waigaoqiao FTZ in Shanghai is spread across an area of 10 sq kms & over 9,300 companies registered in the zone, including 135 of the Fortune 500 companies Other zones being - Zhuhai (3 sq kms), Ningbo (2.3 sq kms), Xiamen (5 sq kms), Futian (1.35 sq kms), Shatoujiao (0.27 sq kms) & Yantian Port (0.85 sq kms)

From an economically backward country in 1970 to its gigantic success, FTZs have been the single most critical macroeconomic factor for Chinas rise

Singapore FTZs were first established in the island nation in 1969, today the entire country is a Free Trade Zone Notable FTZs being Keppel (2.59 sq kms), Pasir Panjang (0.65 sq kms), Jurong (0.61 sq kms), Sembawang (0.19 sq kms) & Air Logistics Park of Singapore at Changi Airport Over 7,000 multinational companies operate through these zones

Due to FTZs this island nation has become the gateway to Southeast Asia & a Global Distribution Hub for international companies

INDIAS STRATEGIC POSITIONING

Dubai
Mumbai

Singapore

At present, majority of product hubbing & value addition is done in Dubai & Singapore 70% to 80% of these value additions, is done for products meant for Indian market Compared to Dubai or Singapore, India is much larger market for product consumption and is an emerging manufacturing hub India has tremendous advantages in terms of cost & skill arbitrage vis--vis Dubai & Singapore Due to its strategic positioning, India is much better suited for being a Transhipment , Value Addition & Global Distribution hub than other economies

FTWZ : A GAME CHANGER FOR INDIA

India is worlds 2nd largest developing & fastest growing economy just behind China With a population of approx 1.1 billion, our domestic consumption comprises 58% of our GDP Strategically located between South East Asia & Middle East, we have 7,000 kms of coastline & unlike China our population is evenly spread across hinterland Unlike Dubai, India has a strong manufacturing base where global companies are producing products for domestic as well as export opportunities Logistics infrastructure is the single largest challenge as well as the biggest opportunity for sustaining Indias fast paced GDP growth

LOGISTICS INFRASTRUCTURE A MAJOR HINDARENCE TO INDIAS GROWTH In-efficiencies due to lack of logistics infrastructure & organized logistics, costs India an additional USD 65 billion per year In a growing economy if logistics infrastructure doesnt grow at faster pace than the GDP, it would cost India very dearly Indian economy is losing around 1.5% in GDP growth, due to lack of logistics infrastructure India loses approximately INR 55,000 crores per year of food produce due to lack of logistics infrastructure

Corporate HQ: 301 Ceejay House, Level 3, Shiv Sagar Estate, F-Block, Dr. Annie Besant Road, Worli, Mumbai - 400 018. Maharashtra, India. Ph: +91 22 4230 5500 /1 /2 Fax: +91 22 4230 5555
Registered Office: Arshiya House, 3rd Floor, Plot No.61, Road No.13, M.I.D.C., Andheri (East), Mumbai - 400093,Maharashtra, India. Ph: +91 22 4048 5300

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