2. Contents Sr. NoTopics IConcept & Need of an International Logistics Park IIConcept of Regional Hub & Demand & Supply IIIMumbai Region - Bhiwandi Emerging Warehouse Hub IVOperational Challenges – Bhiwandi Warehousing Hub VRenaissance Logistic Park – A Snapshot VIKey Learnings & Best Practices VIIClient Expectation & Needs Satisfaction VIIIBusiness Proposition & Way Forward

4. Global Logistics Industry (LI) Scenario Page 4 Global Logistics Industry (LI) = US$ 3500 billion Indias Logistics Industry (LI) = US$ 66 billion Indias LI % to Global Industry = 1.90 % International Logistics Performance Index (LPI) LPI depends upon the following areas: 1.Infrastructure : Quality of trade & transport related infrastructure 2.Logistics competence : Competence and quality of logistics services 3.Timeliness : Timeliness in shipments in reaching destination within the scheduled or expected delivery time 4.Tracking & Tracing : Ability to track & trace consignments 5.International shipments : Ease of arranging competitively priced shipments 6.Customs : Efficiency of clearance process RankCountry 1Germany 2Singapore 7Japan 8U.K. 15U.S.A. 27China 47India Source: World Bank LPI Survey 2010

5. International Spends on Logistics Management Lower the % of logistics spent to GDP, better is the logistics management Higher % of 3PL shows a higher share of organized players Developing countries spend excess on logistics management * China exception to rule due to geographical conditions Global Logistics Industry (LI) Scenario

6. Present Logistic Market of India FY 2009-10 Expected Logistic Market of India for the F.Y. 2012-13 Indias LI Scenario Overall Indias Logistic Market Growth rate is 18% - 20% p.a. in the year Indias Expected Investment in LI by 2015 is USD $350 billion. Indias Logistic Market : Expected growth of CAGR of 8% p.a. over the next 3-5 years.

7. Page 7 Organised LI in India Need of the hour : International Quality of Logistics Parks Without this vital infrastructure, the cost of Logistics Industry will also stay higher & the efficiency will be low. Share of organised LI in India : 6%

9. Potential Regional Hubs in India

10. Logistic Parks – Demand Factors Major Demand for Logistics comes from: –Industrial Activity Automobile Industry Electronics & Electrical Industry Textiles Industry Machine & Engineering Chemical & Pharmaceuticals Food Processing Industry Manufacturing SEZs –Agricultural – Retail Sector –EXIM Cargo

11. Demand Parameters in Top 8 Locations S.N.LocationDemand Factors 1. NCR Delhi Industry ( Auto, Textile, Electronics, Machine &Engineering, SEZs ), retail, & agriculture 2. Mumbai Industry ( Electronics, pharma, textiles, auto -components ), retail, agriculture, EXIM cargo 3. Chennai Industry ( Auto, electronics, textiles, SEZ ), retail, EXIM cargo 4. Kolkata Agriculture, EXIM, retail 5. Bangalore Industry ( Electronics, textile, auto ), retail, agriculture 6. Hyderabad Retail, industry ( Pharma ) 7. Pune Industry ( electronics, auto, textile/garment ), retail 8. Vishakhapatanam EXIM cargo, industry ( Chemicals & pharma, SEZ ), agriculture

12. Supply Scenario of Logistics Space Establishment of ICDs/CFSs offer advance logistic facilities and play important role in organized logistic activity CWC is the biggest player in Logistics sector with operations from Agri-warehouses to ICDs

14. Key Logistics Hubs in MMR Established /Emerging Logistic Hubs in Mumbai Averag e Rentals Rs/ Sq Ft/ Month Land Cost Rs in Crores/ Acre Bhiwandi 131.00 Panvel17 2.00 Taloja20 Trans Thane Creek Rasayani16 Patalganga15

15. Main Users / Sectors of the Proposed Product SNSectors% Share 1Textile Sector6% 2Automobile Sector32% 3FMCG Sector18% 4Pharma Sector14% 5Cement Sector4% 6IT Sector16% 7Other10% Total100% Focus: Bhiwandi City Current Market Trend Of Rental Rate Of Warehousing Complex In Bhiwandi Warehousing ComplexRent Per Sq.Ft. A Grade WarehousesRs.15 – Rs.18 B Grade WarehousesRs. 11 – Rs.14 C Grade WarehousesRs. 8 – Rs.10

16. Buyers Segment / Key Players In Various Industries Courier Industry Bludart First flight AFL DTDC Overnight Professional Courier Warehousing Industry CWC DHL logistics AFL Om Logistics Safex Delhi Assam Roadways Patel Roadways DHL Schenker BAX Semb Corp Panalpina Agil Freight Logistics Air Express Bluedart Gati Road Express Gati Safexpress TNT TCI Source : CII Report, World Bank Survey, Report by Cushman and Wakefield, REC, ASSOCHAM Survey Buyers Segments/ Players in various Industries Focus: Bhiwandi Warehousing Hub

17. Future Demand

18. Switchover of Corporate from existing Illegal Warehouses SNParticulars Area in Mln Sq.Ft. 1Switchover of Corporate from illegal Warehouses in Bhiwandi15.00 2Agro & Industrial Need for Warehouses2.40 3Retailing Sector Need for Warehouses25.00 4Export & Import (Cargo Handling) Need for Warehouses15.08 Total Warehouses Space Demanded in Bhiwandi Sector57.48

19. SN Industrial Sectors Area in Lac Sq.ft. IAgriculture8.67 IIMetal2.40 IIIChemical1.00 IVPetrochemical7.58 VPharmaceutical0.09 VICement3.92 Total ( I to VI )24.00 Converted into Million Sq.Ft. 2.40 Future Demand Agro & Industrial need for Warehouses 2010 - 15

20. Allowance of FDI in Retail sector (Single brand & Multi-brand), number of Malls, Hypermarkets, Supermarkets will increase in the coming years. Leading Corporates like Pantaloons (Big Bazaar), TATA (Westside), Reliance (Hypercity), Bharti Retails, Rahejas (Shoppers Stop), Reliance Retails, DLF Shopping Malls, Bata, Archies, Crossword and other global players are in the foray. Retail market is growing at 20%- 25% p.a. Future Demand Retail Sector need for Warehouses 2010 - 15

21. Future Demand Export & Import (Cargo handling) need for Warehouses 2010 - 15 India has the vast coastline of 7,517 Kms 95% of Indias foreign trade by volume involves sea transportation 45 other non – major/ private ports are being modernized urgently to make Indian goods competitive in the international market. Reduction in tax (Import duty, Ad-volerum Duty, Port Charges) will give a tremendous boost to cargo handling traffic Rising Globalization and Increased International Trade between the countries, WTO, and the new SAFTA agreement signed between the SARRAC countries will boost the import and export of the country in the future years. Along the 720 km coastal line of the Maharashtra State, two major ports, namely Mumbai Port Trust (MbPT) and Jawaharlal Nehru Port Trust (JNPT) at Nhawa-Sheva are in operation Total Space Req. = 1 Tonne : 6 Sq.Ft.

23. Major Issues faced by Operator in Bhiwandi Warehousing Hub S.N 1Absences of Legal and Marketable title for warehouse Non-compliance of Development control rules & legal approvals Absence of planned complex Absence of Infra & Utilities of world class levels 2No common facilities & amenities in warehousing complex Substandard warehouse building with broken floor. Cracked walls, heating, dusty environment etc Non-compliance Building for modern facilities like Racking system, forklifts, dock leveler etc Local issues of various monopoly of varia, local transport, labour supply, security etc 3Non-compliance of fire & safety norms hence loss of insurance cover No human Interface in terms of toilets, restrooms, food courts hygiene Water logging flooding & termites Insects pests creating lot of goods lost No specialised facilities for temperature control, cold storage, chemical storage high cost good storage in strong room etc.

25. Master Plan - Renaissance

26. Project Summary

27. Unique Selling Propositions Assurance 1 First 100% Legal Warehousing complex in Bhiwandi 2 The project is promoted by the Special Purpose Vehicle(SPV) and is being developed under the approvals granted by Central and State Government to SPV 3 All land rights are in the name of SPV, further transferred to buyer ensuring 100% title legality 4 The complex is master planned, designed and executed by PMC approved by Government of India What makes Renaissance Warehousing Business-class?

28. Contd… Business Class Facilities 1The superior warehousing facilities speed up the throughput time and efficiency of the business operations from checking into terminals, docking unloading, loading, palletizing and checking out. 2 46 ft. exclusive road for every building with 68 ft. main road and 121 ft. (8-lane-one way) circular loop road around the entire complex 3 The complex comes with world-class exclusive common facilities: Inbound and outbound truck terminal HRD training centre Food courts, commercial complex, trade centre Warehouse support services outlets Logistics equipment and service centres Goods storage, trading and display support services 4 The complex will have all MIDC equivalent facilities of roads, water distribution, power supply, drainage, security system and fire fighting system 5 The fire fighting station located within the complex 6 The complex will be professionally managed by a dedicated Operations and Management team headed by the CEO

29. Contd… Business Class Design 1All 27 buildings of the warehousing complex are branded world-class PEB structures 2 The new warehouse structure has exclusive features of building insulation, air-conditioned, racking compliance and exclusive road for each warehouse building with controlled access 3 Screwless, standing seam roofing (SS 2000): Puncture- free roof system, roofing system is designed to handle expansion and contraction of the sheets during high temperature variations and avoiding corrosion 4 FM II (TR34) compliant flat floor for safety, precision, wide and narrow aisle racking arrangement. Strong reinforced, abrasion crack and dust resistant floor designed for racking and forklift loading 5 Poliginus reflective insulation: Heat insulated (reduction of 7°C when outside temperature is 45°C plus), fire retardant, improves work efficiency and offers safer storage of goods. 6 Pallet compliant flooring: The warehouse layout (length, breadth and height) is compliant to positioning of heavy duty racking system and designed to maximise the number of pallet positions 7 Continuous canopy of 6 m over-hung with Soffit

30. Location Location of Future Ring Road – MMR Plan Location Plan 1 2

31. Proposed Ring Road - MMR Plan

32. Location Map

33. 100% Marketable Title & Freehold Property Step 1 to 6 to make property 100% marketable to freehold SPV transfer the title to the buyer or purchaser 1 2 Project Land & Approvals

34. World Class Infra

35. Road Section

36. Traffic Management: Facilitating Business Facilitating a smooth flow: Our world-class traffic management systems are strategically planned to ensure that your goods move business-class. The terminals, wide central roads, directional guides, signages, inter-connected roads leading to warehouse and other units are planned for smooth flow and hassle-free movement. S.N ATruck TerminalCEntrance Management The truck terminal has been designed considering the length of the containers (60 ft., 40 ft. and 30 ft.), with a parking capacity of 100 trucks. For every truck which enters, the security checks for vacant space in the respective warehouse. Trucks will be permitted to enter the premises only if there is room else will be instructed to be parked in the truck terminal until availability of space in that warehouse. BFacilities in Truck TerminalDSecurity Post a. Canteen / Mess b. Driver Dormitory c. Shops Each entrance has a security cabin responsible for screening all the vehicles entering, coordinating on the availability of space with the warehouse in-charge and directing them towards the truck terminal or the respective warehouse.

37. Contd… S.N EVehicular MovementGTraffic Flow Management One-way movement of all trucks Two loop roads to facilitate movement of the vehicle internally (in case of wrong turns) Internal signage assisting smooth vehicular movement One-way traffic for incoming vehicles Efficient traffic management staff controlling the traffic flow FRoad System 121 ft. central complex road (8-lane, two-way) 68 ft. main road (4-lane, one-way) 46 ft. warehouse internal road (one- way) Industrial tonnage cement concrete road Road illuminated with sodium vapour lamp Loop road for quick movement in case of a wrong turn 41.75% of land area is road

38. Built-to-Suit: Provisions & Possibilities At the Renaissance warehouse, our structures have been designed in a manner that allows us to incorporate certain additions as per your unique business needs. For example, if your wares need temperature control, you require a ceiling higher by a couple of meters. At the Renaissance warehouse, there are various such possibilities along with the trust of getting the additions done through the same expert team that has designed this world-class structure. Below is a comprehensive list of built-to-suit provisions and possibilities over and above the standard elements. S.NElementsCustomization possibilities 1Height Standard ceiling height: 8 m Built-to-suit provision: Height can be extended up to 10 m 2Racking Built-to-suit possibility: Racking can be created with various financial options 3Flooring Standard Flooring: M25 grade, 150 mm thick, steel fibre reinforced concrete (SFRC), Dry Shake Hardener with Liquid Surface Hardener (LSH) Built-to-suit possibility: Depending on the business need, flooring with greater weight-bearability can be created

39. Contd… S.NElementsCustomization possibilities 4Mezzanine Built-to-suit possibility: Mezzanine floor can be created as per the occupiers need 5Air Conditioning Built-to-suit possibility: In case the wares require temperature controlled environment, the same can be created on demand 6Cold Room Built-to-suit possibility: Walk-in cold room can be created 7Office Space In case the occupiers need to use a portion or the unit for office purpose, the same can also be designed and created in a fully- functional format depending upon the needs 8Light Standard offering: The structure comes with 265 lights Built-to-suit provision: More lights can be added as per the need Our warehouse is compliant with various business types, including: Pharmaceutical Industry 3 PL & 4 PL Logistic Studio Low cost IT Agricultural Warehouse

40. Contd… S.NElementsBuilt-to-suit optionsValue Generation 1Interiors - Office & Toilet Design Provision of office at entrance of the warehouse. Customization 2Changing & Locker Room Toilets at entry side of the warehouse for executives and at exit side for labor and drivers Customization 3Mezzanine FloorsProvision of changing & locker rooms for workers Provision of mezzanine floors of required size for office purpose, as per requirement Customization 4Heavy-duty Racking System Provision of racking system - pallet location - 11457 nos. Customization 5Dock LevelersProvision of dock leveler for easy loading and unloading, as per requirement Customization 6Air-conditioningProvision of air-conditioning of required tonnage Customization

42. S.NCritical issuesProblemsLearning / Best practice 1Fragmented ownership of land Consolidation of landLocal facilitator / Aggregator having in depth understanding and relation in village 2Defective titleNo marketable titleComprehensive title search since 1957 (day), court search, forest search etc 3Title holder not having possession No possession of landStrong local team with surveyor having understanding of land possession 4Land approvalsNon transferability of land Local connect from collector office to talathi inhouse team of experienced people to follow through & get complete approval 5Local MafiaStopage of workLocal Influential people part of land acquisition parcel to manage Locating & Land Acquisition of Logistics Park

43. Approvals of Logistics Park Correct Land Use Violation of zone - Industrial Zone - Location clearance Development Control Rule Compliance FSI Violation (Illegal property) Additional FSI/Higher FSI Environment & State Pollution Control Board Pollution & complete disregard for environment Environmental clearance MPCB content to establish product Water, Power, Communication Boring water, load shedding & power cuts Water supply from irrigation Express feeder (non load shedding line) Local Approvals NA/ Deemed NA Grampanchayat NOC T.P. Plan Approval (as applicable)

44. Design & Engineering of Logistics Park Graded land must to super flat floor High quality of sub bare must Vastu compliant stop of land Contour, soil quality, slop of land Always master plan the logistic park on International paramenters in terms of Roads planning, utilities planning, environment plan, vastu compliance in terms of entrance, Building facing etc Master planning of Logistics Park Highway class road lanes, storm water drainages, transportation plan & traffic networking, WTP & Water supply network, STP & Sewages Netwok etc Infra & Utilities DesignBuild Plan & Design Food courts Dhaka,Truck Terminals, Dormitories Common facilities & Amenities Centrally located open space & landscaped area Open space & Landscaping Best & experienced contractors to execute projects, flooring contractor, PEB Structures Engineering & Contracting

45. Page 45 Development of Logistics Park S.NIdeal steps to follow the development of Logistics park 1Earth work to achieve desired level-2 to 3 meter above high flood line (HFL) -Nothing coordinates to create a grid for Vastu Compliance -All Building at zero degree 2Road & storm water network through the complex -Highway class lanes 3Utilities corridors & Ducts-3 to 4 meters utilities corridors 4Locating WTP, STP, UG tanks, Fire station-Continuous source of water (Ideal from irrigation department) -STP to recycle water for irrigation & Flushing -Fire fighting system, fire station & CFO compliance certificate 5-Centrally located open spaces & landscaped areas -At least 10% as open space -5% common facilities & amenities -Common facilities & amenities location 6Standard building & Built to Suit plots-International standard for warehouse building -Plotting out area for building in project 7Optimise FSI Utilisation-Specialised contractors to execute specialized job 8-Always reside people around complex travelling is most energy draining activity -Residential Complex for work to work with all township amenities

46. Local Issue Management Critical issuesProblemsLearning / Best practice VaraiMonopoly of Loading and unloading by locals 1.Create local representative bodies 2.Laid out policies for non interface by locals 3.Take land on joint development & made properties for letting out for villages 4.Created fix compensation for village development Labour supplyMonopoly of Labour supply1.Labour contractor with license & compliance on market driver pricing 2.Objective to provide services to occupier 3.No monopoly in labour supply Local transportMonopoly of local transport1.Transportation in local 2.Tempo station on market driven pricing 3.No monopoly SecurityMonopoly of security1.Creates 3 to 4 security licensed agency within village to provide services on market driven pricing & with quality of services 2.No monopoly Local employmentFixed percentage of employment compulsory 1.HRD centre to train people on logistics skill 2.Create semi skill & skill employment for use of equipments & assembling

47. Operation & Maintenance IssuesProblemsLearning & Best Practices Quality of InfraBad qualityDesign & Build to last for decades Quality of UtilitiesNon - reliability Create & build most reliable utilities i.e. water supply, electric system, sewage system, wages system, drainage system, fire fighting Common facilities & amenities Human interface ignored - Lack of Restrooms, Food areas, Dormitories, Provision stores Very human centric master plan & complex use plan, creating sweet-spots around the complex & keeping it clean & usable Warehouse Structure & Maintenance Broken flooring, leakages, fire, water-logging, insects heat World class flooring complying FM standards Standing sun roof Insulation Fire-fighting system Operation Management & FacilitiesAbsence of professionalism Professional & skilled facilities management company Run Logistics Park as a service operation like hotel, hospital

49. Critical issues for client Page 49 S.NCritical issue for client in operation of warehouse Learning (Best practice) 1Flooring of warehouse-FM: Compliant, International certified flooring 2Leak proof roofing-Standing seem (Screwless roofs) 3Docking Bays with Dock levelers-1.2 meters Docking bay with dock levelers 4Security gates & gated complexes-Two level gated complex with security system 5Truck terminal-5 to 7% of area dedicated for truck terminal 6Fire fighting system & Insurance compliance -CFO Compliance & Certification 7Local issue-Local committees & fixed payments 8Availability of skill & semi-skilled labour-HRD centers local population to be trained to be employable 924 x 7 operation-Commutation facilities for 24 x 7 & residential facilities within complex 10Heating & humidity in summer-Insulation, Righ vents, Turbo Ventilation 11Flooding & Water logging-3 to 4 meters above HFL, effective storm water drainage

50. Page 50 S.NCritical issue for client in operation of warehouse Learning (Best practice) 1224 x 7 Power-Express fidder, back up generator 13Solid waste & unclear-Solid waste management & regular cleaning through facilities management 14Fast turnaround time-Excellent road, clear traffic movement, equipment loading & unloading, Highspeed connectivity 15Human Interface in term of clean toliets etc -Public toilets, foot path, bus shelters, sitouts 16Hygiene Food-Food courts lunch home, restaurants 17Recreation to loose Fat-Club facilities, Recreation grounds, gardens 18Traffic swift mobility-Signages, location standies, instruction boards 19Area for commerce-Marketing centre, Exhibition Area, hotels Factory outlets. 20Maintainance of warehouse building equipment -Professional team for facilities management Critical issues for client

52. Business proposition & Way Forward Standard BuildingBuilt-to-Suit Lease Ready for Possession4.5 lac sq ftReady to Build15 lac sq ft Area under construction 10.00 lac sq ftBTS under Negotiation10 lac sq ft Sale Area under construction for sale 3.0 lac sq ftReady to be sold under BTS 10 lac sq ft Properties at Renaissance Logistic Park Bhiwandi

53. Bhiwandi, MMR Demand Supply Demand Supply Total Warehouses Space Demanded 57.48 Total Industrial Space Demanded 53.71 Total Industrial Township Demanded 48,130 Total Warehouses Supply by RI 6.83 Total Industrial Park supply by RI 5.65 Total Industrial Township supply by RI 22,500 Mn Sq. Ft. No. of Accommodation required % of RIs Supply to total Demand No. of Accommodation available 12% 11% 47% Demand Supply Analysis

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