Tuesday, March 24, 2009

Supply Chain Management




Supply Chain Management :



One of the most important challenge in organized retail in India is faced by poor supply chain and logistics management. The importance can be understood by the fact that the logistics management cost component in India is as high as 7% -10% against the global average of 4% - 5% of the to,tal retail price. Therefore, the margins in the retail sector can be improved by 3% - 5% by just improving the supply chain and logistics management.



In India, with demand for end-to-end logistics solutions far outstripping supply, the logistics market for organised retail is pegged at $50 million and is growing at 16%. It is expected to reach $120-$130 million by 2010. Organised retail on the other hand is growing at 400% and is expected to reach around $30 billion by 2010.



Arshiya International Ltd


Arshiya International Ltd is a global supply chain and logistics infrastructure solutions company and is listed on the BSE. The company is an amalgamation of several strategic verticals (Free Trade Warehousing Zones {FTWZ’s}, Rail, 3PL, 4PL, Trucking, Warehousing & IT) enabling unparalleled operational expertise & solution capability across the entire supply chain spectrum & value chain. Arshiya has additionally developed strong ground operational capability (including Trucking & Warehousing) in the Middle-East, intended to be linked by sea from Mumbai, India to Sohar, Oman & Dubai, UAE.

Arshiya's key business entities currently include: Arshiya Logistics {which provides shipping and global logistics (3PL) services to its customers under the flagship BDP}, Arshiya Demand Chain Management {focusing exclusively on India's rapidly expanding retail market for their entire supply/demand chain (4PL) management in partnership with Global Major, Genco}, Arshiya Logistics Infrastructure (focusing on building Free Trade Warehousing Zones in India & the Middle East) Arshiya Rail Infrastructure (with 75 rakes set to become the largest pan-India private container rail operator by 2010) Arshiya Technology (under the flagship ‘Cyberlog’ which provides global I.T systems, software development and business process outsourcing services in the Supply Chain space) and Arshiya's Knowledge Center (which will encompass specialized consulting & training services).


GROUP COMPANIES


Arshiya Logistics Infrastructure


Arshiya Infrastructure focuses on establishing stable, high-tech and interconnected logistics infrastructure under project Diamond and Emerald in India and Middle East respectively.


Arshiya Logistics Infrastructure -Free Trade and Warehousing Zones:

Arshiya’s FTWZs would be a special category of Special Economic Zones (SEZ) with a focus on trading and warehousing. The units located within the FTWZ would thus be provided with significant benefits as available to the units in SEZ. These FTWZs would emerge out as an Integrated Zone to be used as International Trading Hubs with inbuilt Container Freight Station, Warehousing space and Inland Container Depots with attached Empty Container Storage & Refurbishment Yard. Concept of FTWZ has been coined to provide much needed infrastructure support for trading, storage and value added activities related to foreign trade along with multi-modal transportation, easy foreign exchange transaction, one stop custom clearance and to avail the regulatory benefits of FTWZs like exemption from taxes and duties.

Arshiya Logistics Infrastructure - India

West & North India, Free Trade Warehousing Zone (FTWZ) as Hubs and Rail network across Pan India (Phase 1).Project Diamond including the Indian Sub-Continent (FTWZ, as Hubs with all types of warehousing and CFS/ICD at all locations in West, North, East, South and Central India with Spokes on the rail corridors) connecting the main ports and hinterland of the India sub - continent with a rail / road (last mile connectivity) network (to be fully commissioned by end 2012) (Phase 2).

Arshiya Logistics Infrastructure Middle East

FTWZ in Sohar, Oman (Phase 1).
Project Emerald (FTWZ as Hub and Spokes all over Middle East Region) connecting the Sohar FTWZ with the main freight centers of Middle East (to be fully commissioned by mid 2012) (Phase 2).

BDP India and Middle East


BDP India and Middle East are entities within the Arshiya Group and are affiliated with BDP International, one of the leading global logistics companies. BDP International, headquartered in the United States has a network of offices and affiliates spanning 140 countries and representing a customer base of leading fortune 500 companies with advanced technology, BDP provides visibility across the global supply chain.

Within India, BDP has expanded to 9 offices across the sub-continent providing a full scope of logistics services to its clients. Logistics operations include import and export services across the globe, freight forwarding, ocean and air transportation, trucking, project logistics, and supply chain management.

BDP Middle East has offices in UAE, Qatar and Oman and is rapidly expanding across the Middle East region. Covering the samefull scope of services as BDP India, BDP Middle East can support its clients in the movement of products across the globe. In addition to its menu of core services, a special project logistics team of experts has been created to support the growth of major Infrastructure development within the region.



Cyberlog Technologies


Cyberlog provides an integrated supply chain solution to manage the logistics of demand fulfillment, customised technology services and business process outsourcing services.
Cyber-SCM, a supply chain solution, is a suite of web native applications for enterprises and logistics service providers. The completely integrated application helps to manage the logistics of demand fulfillment seamlessly across all geographies and transport modes, thereby reducing costs, stock levels, and cycle time while satisfying the need for on-time delivery.

Genco India:


Genco India is a joint venture company providing unique 4PL“Demand Chain Management” services designed to enhance customer’s competitive advantage in the retail sector. Genco is one of the leading retail logistics companies in North America, specializing in “forward and reverse logistics”, and provides customized logistics activities to many of the largest retail stores and consumer brand companies across a wide range of product segments.


Activities include supply chain analytics and network design, neutral benchmarking, 4PL logistics execution for product distribution across India and reverse logistics, providing a single point of contact for information visibility and KPI management, and ultimately assisting customers to re-design their operations from a traditional logistics model to a dynamic demand chain which responds to changing consumer needs.



Arshiya Rail Infrastructure:


Arshiya Rail Infrastructure, a wholly owned subsidiary of Arshiya International has commenced phase I of its rail operations as of 02 February 2009.


Arshiya Rail initiated its pan-India rail operations with the deployment of its first of the planned 30 rakes in phase 1 for Vedanta Aluminium. Arshiya Rail Infrastructure is providing unique and customised rail solutions with innovative and industry / product specific designed containers for large corporations with sizeable evacuation requirements in India.



Recent News:


Arshiya’s free trade zone in Khurja


Arshiya International Ltd, a global supply chain and logistics infrastructure solutions company, has received the formal approval from the Board of Approval (BoA) of SEZs (Special Economic Zones) for setting up its Free Trade and Warehousing Zone (FTWZ) in Khurja (UP).
Arshiya’s FTWZ in Khurja is coming up in the heart of the manufacturing hub in the NCR and is the second of the five FTWZs being set up by the company at different locations in the country. Arshiya’s first FTWZ at Mumbai received BoA clearance in December last year. It is expected to be the first operational FTWZ and is to be commissioned by September 2009.



Stock Details:


Q3 Financials:


Net Income for Q3FY09 at Rs. 114.16 crore, up 9%
EBITDA for Q3FY09 at Rs. 17.38 crore, up 31%
Net Profit for Q3FY09 at Rs. 13.02 crore, up 25%
Nine Months Ended (FY09) Net Income at Rs. 405.67 crore, up 49%
Nine Months Ended (FY09) EBITDA at Rs. 60.97 crore, up 87%
Nine Months Ended (FY09) Net Profit at Rs. 52.34 crore, up 105%



BSE Stock Code: 506074


Share Price: 49.8 as on 24 March 2009


Face Value : 2


Year High Low
2009 86.5 42.55
2008 424 69.2


At Current Market price it is a buy for Medium to LongTerm.

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