tuscan advisory
TRANSCRIPT
-
8/8/2019 Tuscan Advisory
1/15
Solutions for the Logistics Entrepreneur
Tuscan Advisory
-
8/8/2019 Tuscan Advisory
2/15
Introduction to Tuscan
Investment / Advisory company focused on Logistics, Transportation & Transport Infrastructure
Incepted in 2007 by Vishal Sharma ex business head of Maersk Line India and Shagun Kapur Gogia, Vice
President with ICICI Ventures, Indias largest and oldest Private Equity house
Invested in LCL Logistix (15%) , one of Indias largest third party logistics firms and RSI International(40%), a logistics and shipping focused training firm headquartered in Singapore
Advises promoters of companies looking to raise private equity or looking to exit their business
Recognized as Indias only boutique logistics and shipping focused investment & advisory company
First choice of Investment Bankers, Private Equity funds and financial institutions who want to invest in thelogistics, shipping and transportation space
Screened and advised on more than 100 deals covering the following sectors: Ports
Private Rail Freight Forwarding / NVOCC Container Freight Stations / Inland Container Depots Warehousing Trucking Courier & Express Cold Chains
T U S C A N V E N T U R E S
Private Equity & Advisory Activity
Introductory Note
-
8/8/2019 Tuscan Advisory
3/15
Tuscan invests and advises companies from across the supply chain
RailRoad
Courier&
Express
Air Cargo
FreightForwarding
LogisticsSoftware
Training &Consulting
Cold Chains ICD / CFS Coastal Shipping
Warehousing
Ports
T U S C A N V E N T U R E S
Private Equity & Advisory Activity
Introductory Note
-
8/8/2019 Tuscan Advisory
4/15
Tuscan Investments
T U S C A N V E N T U R E S
Private Equity & Advisory Activity
Introductory Note
Tuscan Ventures concluded an equity investment in LCL Logistix in May2008 . Tuscan is a 15% shareholder in the company
With 33 offices and 400+ people, LCL Logistix is Indias largest oceanfreight forwarder with significant interests in CFS operation, yardmanagement, warehousing, distribution, air and project cargo
Tuscan Ventures concluded an equity investment in Rasmussen &
Simonsen International in April 2008. Tuscan is a 40% shareholder in thecompany
RSI is a unique global training & development company focused ontraining shipping and logistics professionals. RSI also owns and managestwo popular industry Internet portals
Financial Investor+
Operating Partner
Tuscan has a sharp domain focus and prefers to invest in companies withconsiderable scope of strategic / operational value-addition
Tuscan is an active investor and adds significant value to its portfoliocompanies by engaging them on strategy discussions, systems andprocesses and on the induction of robust corporate governance practices
www.lclshipping.com
www.r-sintl.comwww.shippingworkz.comwww.logisticsworkz.com
-
8/8/2019 Tuscan Advisory
5/15
Tuscan Advisory: Case Study
T U S C A N V E N T U R E S
Private Equity & Advisory Activity
Introductory Note
Dharamtar Logistics Park, 13NM from Nhava Sheva port, offers state-of-the-art CFS and warehousing facilities and services for EXIM cargo touching JN
Port In early 2008, Dharamtar Port engaged Tuscan to:
Design the operational flow for container cargo at Dharamtar Port andLogistics Park
Market the facility to shipping companies and end users
Tuscan assisted with the creation of a viable operational flow for container
traffic to and fro Dharamtar port
Since, Tuscan has aggressively marketed the facility to shipping companiesand cargo owners with good results
Most reputed shipping lines now accept cargo to and from Dharamtar.These include Maersk Line, CMA-CGM, PIL, Hapag Lloyd amongothers
Several cargo owners have accepted the sense of including Dharamtarin their current supply chains
Overtime, Dharamtar is gaining recognition as a viable complimentary facilityto the Nhava Sheva port system
-
8/8/2019 Tuscan Advisory
6/15
Tuscan Advisory: Case Study
T U S C A N V E N T U R E S
Private Equity & Advisory Activity
Introductory Note
Maersk Logistics, a part of the A. P. Moller Maersk Group, is a significant 3PLservice provider globally with aggressive growth plans for India
In 2008, Maersk Logistics engaged Tuscan Ventures as an advisor to theirIndia focused Acquisitions strategy
Tuscan Ventures proposed an M&A strategy for Maersk Logistics, fitting withtheir overall India strategy
Tuscan evaluated several acquisition options based on the criteria agreed uponand introduced the most optimal targets to Maersk Logistics
Maersk Logistics is currently in discussion with two companies simultaneouslyfor potential acquisitions
Top 5 Global 3PLMajor
Headquartered inEurope with offices in
>100 countries
-
8/8/2019 Tuscan Advisory
7/15
Why does private equity have a role in todays market ?
T U S C A N V E N T U R E S
Private Equity & Advisory Activity
Introductory Note
Cash may equalsurvival
Credit has dried up. Customers are holding payments but suppliers arepushing for theirs.
Timely injection of working capital can come as a lifeline. Often, the onlyway to ensure survival
Small window to lowasset prices
Asset prices are at an all time low. Timing it right is key but possible only if
cash is available at short notice In industries, where own assets make good business sense, optimally
priced purchase of assets will emerge as a strong competitive advantagewhen the going is good again
Constructing a
future organisation
An economic downturn is a great time to build a future organisation acquire and train talent, put processes in place and introduce cost andother controls
The will to invest in these often sidelined initiatives has to be matched bycash
-
8/8/2019 Tuscan Advisory
8/15
Why do PE funds prefer to invest logistics companies ?
T U S C A N V E N T U R E S
Private Equity & Advisory Activity
Introductory Note
Industry2008 Jan-Decchange (%)
Road & Rail 16%
Airfreight & Logistics -12%
Consumer Staples -21%
Health Care -30%Consumer Discretionary -37%
Industrials -39%
Information Technology -39%
Utilities -40%
Materials -43%
Financials -44%
Energy -45%
Telecommunication Services -48%
Source: Intersections, Global Transport & Logistics Mergers & AcquisitionAnalysis (2007Q4), Price Water house Coopers
0
200
400
600
800
1000
1200
1400
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Source: Business Week, Dow Jones performance, 2008 January -December
Logistics companies are able to hold their
value better in an economic downturn
The industry has seen increased M&A in recent
years, giving investors more opportunities to exit
-
8/8/2019 Tuscan Advisory
9/15
Why should Tuscan advise you ?
T U S C A N V E N T U R E S
Private Equity & Advisory Activity
Introductory Note
We understand thelogistics industry
The Tuscan team has more than 40 years of hands on experience inlogistics, shipping, transportation and transport infrastructure
The team has worked across the Indian subcontinent, Europe, NorthAmerica, Africa & South East Asia in leadership roles
It has interacted and advised more than 100 Indian logistics companies
It has advised logistics multinationals on acquisition of companies in India
We know whatinvestors look for
As investors, the Tuscan team has critically reviewed more than 120 privateequity investment opportunities from the logistics & transportation space
It has advised, reviewed and worked on logistics deals with most of Indiasleading private equity funds
Tuscan Ventures has itself structured, due diligenced and invested in a thirdparty logistics company (LCL Logistix), where it now sits on the board
We know how to getyou ready for
investors
Tuscan has an intimate understanding of the private equity process used byinstitutional investors (IC decision / Financial negotiations / Legal structuring)
The Tuscan team is very familiar with the typical challenges faced by promotersfrom the logistics space in raising private equity
Tuscan leverages this working knowledge of the requirements and challenges ofeach side to ensure that the promoter is well prepared for the PE process
-
8/8/2019 Tuscan Advisory
10/15
An investor ready company is a robust company
T U S C A N V E N T U R E S
Private Equity & Advisory Activity
Introductory Note
Strong
Weak
Low High
InvestorReadiness
Company robustness
HRpractices
/ Performanceincentives
Financialcontrols
Corporate
Governance
Businessstrategy /
Competitivepositioning
InvestmentNeed / plan
-
8/8/2019 Tuscan Advisory
11/15
Stage 1. Evaluating need and readiness for Private Equity
T U S C A N V E N T U R E S
Private Equity & Advisory Activity
Introductory Note
STAGE 1:EVALUATING PE READINESS
STAGE 2:GEARING UP
STAGE 3:ENGAGING INVESTORS
What are the real drivers of my industry now and in future?
Hows my scale relative to competition?
Am I playing to my unique competitive advantage?
Should I even continue this business or exit it?
Can PE really be a competitive differentiator for me?
What should be my valuation expectation?
-
8/8/2019 Tuscan Advisory
12/15
Stage 2. Gearing organization for Private Equity
T U S C A N V E N T U R E S
Private Equity & Advisory Activity
Introductory Note
STAGE 1:EVALUATING PE READINESS
STAGE 2:GETTING READY FOR INVESTORS
STAGE 3:ENGAGING INVESTORS
Do I have the management depth to support the growth youenvision?
Does my organization come across as a professional one?
Do I have orderly financials, data and documentation ?
Am I able to clearly articulate my strategy as well as the risks?
Am I able to clearly position myself a cut above mycompetitors?
Do I clearly understand the time and effort it takes to engageinvestors?
-
8/8/2019 Tuscan Advisory
13/15
Stage 3. Locating funds
T U S C A N V E N T U R E S
Private Equity & Advisory Activity
Introductory Note
STAGE 1:EVALUATING PE READINESS
STAGE 2:GEARING UP
STAGE 3:ENGAGING INVESTORS
Can I clearly articulate the opportunity that my industrysegment presents?
Do I have a impressively detailed information memorandum?
Do my projections find the right balance between optimism andmarket reality?
Do I have a sense of the kind of questions investors typicallyhave?
Am I aware of the rights that I should focus on in mynegotiations?
Do I know how best to manage an investor during and afterfunding?
-
8/8/2019 Tuscan Advisory
14/15
Founder Partners
DhritimanHui
Principal -Investments
GaganSeksaria
Principal -Investments
Worked on transactions in the privaterail, 3PL, warehousing, distribution, courier & express and NVOCC spaces Last role with Maersk Lines Regional
Headquarters, Singapore Head of Marketing, AP MollerMaersk, India ~ headed MarketIntelligence, Corporate Communications &External Relations for the sub-continentslargest shipping companyPart of AP Moller Maersks elite GlobalManagement Training Program, trainedin Logistics & Ports
Worked on transactions in the air & seafreight forwarding, ports &terminals, container freightstations, project cargo and logisticssoftware spaces
Head of Marketing, AP MollerMaersk, South Asia ~ headed MarketIntelligence, Corporate Communications& External Relations for the sub-continents largest shipping company Investments, APM Ports & Terminals~ responsible for negotiating andmanaging 2 USD 300 million+ port
projects in West AfricaMBA in Marketing
Advisory Team
Vishal SharmaMD / CEO
Business Head Maersk LineIndia, US$ 1.5 bn revenues; 350employees; 21 offices Head Group Strategy Office, AP
Moller Maersk, US$25 bn revenues, 60countries 25000 employees; oversaw groupstrategy for shipping business, oil &gas, logistics, port , banking, BPO business Managing Director - MaerskVietnam, US$ 400 mn revenues, 200employees, negotiated the countrys first
_private port concession ~ APMT Saigon
MBA, Chicago School of Business
Shagun GogiaDirector, Invest
ments
Vice President ICICI Ventures, US$ 2 bnAUM; 100 employees; 50 dealsconcluded, Indias oldest and most wellestablished Private Equity house. Personallycompleted 5 deals aggregating in excess ofUS$ 100 mn in the Real Estate sector.Reviewed 120+ deals Corporate Finance Rabo Bank, 3 yearsof Mergers & Acquisitions, participated in 10transactions across banking, bio-technology, finance and real estate. Was partof Founding Team. Very strong proprietary network in Indias
investment banking and private equity space MBA, Indian School of Business
T U S C A N V E N T U R E S
Private Equity & Advisory Activity
Introductory Note
-
8/8/2019 Tuscan Advisory
15/15
Dhritiman Hui
Principal
+91 9967316481
Gagan Seksaria
Principal
+91 9821236792