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• Certain statements contained in this document may be statements of future expectations and other forward looking statements that are based on management„s current view and assumptions and involve known and unknown risks and uncertainties that could cause actual results performance or events to differ materially from those expressed or implied in such statements. • The information contained in this presentation has not been independently verified and no representation or warranty expressed or implied is made as to and no reliance should be placed on the fairness accuracy completeness or correctness of this information or opinions contained herein. • This presentation may contain certain forward looking statements within the meaning of applicable securities law and regulations. These statements include descriptions regarding the intent belief or current expectations of the Company or its directors and officers with respect to the results of operations and financial condition of the Company. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and actual results may differ from those in such forward-looking statements as a result of various factors and assumptions which the Company believes to be reasonable in light of its operating experience in recent years. Many factors could cause the actual results performances or achievements of the Company to be materially different from any future results performances or achievements. Significant factors that could make a difference to the Company‟s operations include domestic and international economic conditions changes in government regulations tax regime and other statutes • None of VRL logistics ltd or any of its affiliates advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its content or otherwise arising in connection with this document. • This document does not constitute an offer or invitation to purchase or subscribe for any shares and neither it nor any part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. 2
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Source : Crisil research VRL is predom dominan inantl tly a parcel el deliv iver ery servi vice e provi vide der (66.29% % of tot otal l revenues) es) with pan-Indi India last mile e connec ectiv ivity ity through ough a fleet et of 3649 owned ed goods ods transp spor ort vehicles icles ( M Mar-15) 4
VRL can levera erage e the benef efits its of being an LFO Source : Crisil research 5
VRL is look oking to capital italise ise on the growt wth h prospec ects s of the industry Source : Crisil research 6
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COMPANY TIMELINE • Listed in Limca Book • Dr. Vijay of Records 2013 as • Foray into car • Commencement • Commencement Sankeshwar the single largest fleet carrying and started goods owner of commercial of courier service of passenger liquid transportation vehicles in the private business in transportation transportation business through a sector in India Karnataka business proprietary firm • Incorporated as • Became a • Name changed to • Listing on • Investment deemed public VRL Logistics NSE and BSE Vijayanand by NSR • Turnover Roadlines Private limited company Limited stock • Obtained exchanges Limited crosses ISO9001:2000 INR10bn certification Largest est fleet et owner er of comm mmercial ial vehic icle les s in privat ate e sector or 8
Business Segments 97.10% Transportation 19.8 .84% 77.2 .23% Passenger Transportation Goods Transportation Reputed brand name Main business vertical „Vijayanand travels 1.32% Wind Power generation 1.33% 66.2 .29% 8.4 .47% 1.95% 0.14% 0.38% 42.5 MW wind farm Car Less than truck Full truck load (FTL) Liquid Courier load (LTL) Carrier Transport 0.7% Door to door services For time Air charter operations catering to large sensitive 0.38% customers documents and 2 aircraft parcels 59.3 .34% General Parcel Priority Parcel 6.95% 0.9% Delivery services Door to door delivery Others(sale of scrap) – core business in a time bound manner Parcel el deliv ivery (66.29%) %) is the key business ess segmen ment Note: Approximate revenue contribution to the revenue from operations as of FY15 9
Strong ong operations ns with largest fleet et and mark rket et leading operation ons Hub-and-Spoke model to aggregate small parcels and maximize capacity utilization of its vehicles One of the largest widespread pan-Indian transportation network in 28 states and 4 union territories. Operational infrastructure compromises of 652 branches ( 20 owned) & 325 agencies in 977 locations Strategically placed 48 (7 owned).transshipment hubs 71 new branches added in FY 15 Focus on growth in the North and the Eastern parts of the country Established brand since four decades Market leader in India Critical infrastructure facilities comprising of branches agencies godowns and transhipment hubs enables us to cater diversified customer base spread across different geographical locations Pan Indian an net etwor ork with 977 location ations 10 10
Goods ds transpor ortation ation fleet t include des : Small Light Heavy Car Total 3649 owned vehicles. Tanker Cranes BUSES TOTAL As of Vehicle Commercial Commercial Carrier Vehicles (5) (6) FLEET 1245(34%) vehicles less than 5 years old. (1) Vehicle(2) Vehicles(3) (4) Owned 2372 (65%) of vehicles are debt free 1427 (39%) of vehicles book value is Re 1 31-Mar-10 180 842 1480 0 7 10 2519 196 2715 Average age of goods fleet is 8.2 years Wide range of vehicles with carrying capacity 31-Mar-11 171 892 1575 0 7 10 2655 296 2951 from 1 ton to 32 tons Passeng nger er transpor orta tati tion n fleet et includes udes 31-Mar-12 139 883 1916 102 27 12 3079 423 3502 375 owned vehicles 339 (90%) vehicles are less than 5 years old 61(16%) of vehicles are debt free 31-Mar-13 122 883 1941 102 27 13 3088 460 3548 Average age of Passenger vehicles is 3.7 years Signif nific icanc ance e of ow own ve vehic icles les 31-Mar-14 122 882 2210 102 23 13 3352 477 3829 Enables us to significantly reduce hiring and operational costs 31-Mar-15 120 975 2423 102 16 13 3649 375 4024 Enables us cover a large no of routes reduce NOTE: dependence on third party hired vehicles (1) Small vehicles are defined as vehicles with carrying capacity up to 2500 kilograms. (2) Light commercial vehicles are defined as vehicles with carrying capacity between Enables better control over time bound delivery 2500 kilograms and 7500 kilograms. enhancing service quality and ensuring reliable (3) Heavy commercial vehicles are defined as vehicles with carrying capacity of more than 7500 kilograms. quality services (4) Used for transportation of automobiles. Passenger transportation vehicles enables us to (5) Used for transportation of liquid. (6) Cranes are predominantly used for internal operations. provide safe on time comfortable travel experience Total tal of 4024 4 owned ed vehic icle les provi vides es great ater er lever erag age in terms of pricin ing and servi vice e 11 11
In – hous In ouse e goods ds ve vehic icle le body designing ing fa facilit lity at Hubballi lli • Technology to fabricate vehicles with lighter and longer bodies thereby reducing overall weight Dedicated in-house of the vehicle and ensure higher payloads without violating permissible payload limits goods vehicle body • Higher length chassis sourced from manufacturers on specifications provided by company design facilities resulting in additional space Concept of Charged weight and Actual weight based on nature of consignments booked • resulting in higher payloads FUEL L SOURCING RCING • Fuel cost form 26.67% of total income in FY 15 • Operate two own consumer diesel pumps located at Hubballi and Chitradurga in the State of Karnataka to ensure quality fuel supply and reduced fuel costs • Our own pumps contribute 25% of our total procurement of fuel, Procurement from IOC is Fuel procurement 54%, Procurement from HP is 19% and Procurement from BP is 3%. • Tie up with nearly 100 designated fuel pump retailers across country for re fuelling during transits and also availing fuel at discounted price Significant savings by means of redemption points availed by Fuel companies • • Employ staff in such locations to ensure enroute compliance of vehicles • Payment by fleet cards credit cards enables discount s and extended credit period • Ashok Leyland & VE commercial (Volvo) have established their own spare parts yard in our premises resulting in procurement of spare parts at factory rates and saving on carrying cost . Spares procurement • Procurement of other spare parts & consumables directly from manufacturers • Arrangements with Michelin India Tyres Private Limited and CEAT Limited for procurement of tyres at competitive rates • Maintain records of comparative rates for our spare parts and consumables in our ERP system to maintain control over spare parts cost Note: 1- data computed for the month of March 2015 12 12
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