RESEARCH

Snowman Logistics Ltd

One-time assessment

CRISIL IPO Grade 4/5 (Above Average)

March 10, 2014

Grading summary
CRISIL Research has assigned a CRISIL IPO grade of 4/5 (pronounced four on five) to the proposed IPO of Snowman
Logistics Ltd (Snowman). This grade indicates that the fundamentals of the IPO are above average relative to the other
listed equity securities in India. However, this grade is not an opinion on whether the issue price is appropriate in relation
to the issue fundamentals. A CRISIL IPO Grading is not a recommendation to buy / sell or hold the securities to which it
relates (or any other securities); it does not comment on the issue price, future market price or suitability for a particular
investor.

The assigned grade reflects Snowmans strong position as a leading domestic integrated cold chain company and good
long-term prospects for the cold chain industry. CRISIL Research expects the cold chain industry to grow at a healthy
pace over the next few years (15-17% CAGR over FY13-16) driven by growing demand from end-product industries,
uneven regional distribution of cold storages in India and favourable government policies.

The grade is supported by Snowmans strong end-product portfolio, loyal clientele, professional management, seasoned
shareholders and modern cold chain infrastructure. The company has increased its pallet (a structural foundation of a unit
load for efficient handling and storage of products) capacity by five times in less than two years without any adverse
impact on its margins. It further plans to expand its capacity to 1,00,000 pallets by FY16.

The grade is constrained by risks related to Snowmans aggressive capacity expansion plans. The company might not be
able to generate sufficient business to run at a healthy utilsation with the increased capacity which can put pressure on its
profitability and growth.

Snowmans operating income grew at a CAGR of 48.5% from 346 mn in FY10 to 1,137mn in FY13 driven by capacity
expansion, broadening of the end-product portfolio and increase in the client base. EBITDA margin improved by 650 bps
from 16% in FY10 to 22.5% in FY13 due to increase in utilisation and improvement in per pallet realisation.
Consequently, EBITDA expanded at a CAGR of 66.3% from 56 mn in FY10 to 256 mn in FY13.

Adjusted PAT grew at a CAGR of 79.1% from 38.2 mn in FY10 to 219.4 mn in FY13 on the back of strong growth in
EBITDA and tax credit on account of Section 35AD of Income Tax Act 1961. Consequently, PAT margin improved from
11% in FY10 to 19.3% in FY13. The company has a net debt of 885 mn as of FY13.
 CRISIL IPO Grading Rationale

About the company

Snowman Logistics Ltd (Snowman), founded in 1993, is a leading integrated player in a predominantly unorganised cold
chain industry in India. The largest shareholder in the company is Gateway Distriparks Ltd (GDL), which owns 48.33%
stake in the company. The other key shareholders in the company are Mitsubishi Logistics Corporation (2.93%),
Mitsubishi Corporation (12.63%), International Finance Corporation or IFC (12.46%) and Norwest Venture Partners VII-A
Mauritius (13.84%).

Snowman was incorporated by Amalgam Foods Ltd in 1993 as Snowman Frozen Foods Ltd. In 1997, erstwhile Brook
Bond India, (now part of Hindustan Unilever Ltd) acquired 23% stake in the company. In 2001, Mitsubishi Corporation
and Mitsubishi Logistic Corporation jointly bought a majority stake in Snowman. Until then, the company was incurring
losses. In 2006, GDL became the largest shareholder in the company by acquiring 33.34% stake and revamped
Snowmans management structure. In 2010, IFC acquired 20% stake. In 2011, to reflect the change in positioning of the
company, the name of the company was changed to Snowman Logistics Ltd. In 2013, private equity firm NVP bought
14.28% stake in Snowman.

Snowman is engaged in cold chain warehousing and transport and value-added services for perishable goods. In its
transport business, the company offers services through primary and secondary transportation. Primary transportation is
an intercity service while secondary transportation is an intra-city service.

The companys cold chain business currently has 21 warehouses across 13 locations in India with a capacity of
46,751 pallets and a fleet of 238 reefer vehicles (reefers). Also, its ambient (normal temperature) warehousing business
has a capacity of 3,000 pallets. 11 of the 21 temperature controlled warehouses are on leased land. The companys
transport business has 175 leased reefers and 63 owned reefers. The company also offers value-added services such as
labeling, grading, packaging and inventory management to some of its clients.

The company provides services to various industries such as seafood, poultry, fruits and vegetables, dairy, ice-cream,
food processing, pharmaceuticals and some other niche segments. Its key clients are Hindustan Unilever Ltd (HUL),
Al-Karim Exports Private Limited, McCain Foods India Pvt. Ltd (McCain), Novozyme South Asia Pvt. Ltd (Novozyme),
Ferrero India Pvt. Ltd (Ferrero), Graviss Foods Private Limited etc.

Table 1: Business environment

Product / segment Warehousing Distribution Consignment business
Revenue contribution
46% 52% 2%
(FY13)
Product / service Cold chain warehousing Cold chain primary distribution Indenting, order bookings and category
offering Ambient warehousing Cold chain secondary management

Value-added services distribution Invoicing and receivable management

Ambient primary distribution Inventory management, supply and tax
Ambient secondary administration
distribution Reverse logistics and safe disposal of
expired and excess stocks as per
government norms
Geographic presence 13 locations across India
Market position Leading integrated cold chain player
End markets Poultry, dairy, seafood, fruit and vegetables, pharmaceuticals, films and food processing industries

2
 RESEARCH

Product / segment Warehousing Distribution Consignment business

Key competitors Gati Kausar Ltd, RK Food Lands Ltd, Kelvin Cold Chain Logistics Pvt. Ltd, M.J. Logistic Services Ltd, etc.
Key clients Hindustan Unilever Ltd (HUL), Al-Karim Exports Private Limited, McCain Foods India Pvt. Ltd (McCain), Novozyme
South Asia Pvt. Ltd (Novozyme), Ferrero India Pvt. Ltd (Ferrero), Graviss Foods Private Limited
Key risks Aggressive incremental capacity expansion
Cost overruns in the capacity expansion plan

Table 2: Evolution
Year Event
1993 Snowman Frozen Foods was incorporated by Amalgam Foods Ltd
1997 Erstwhile Brook Bond India, (now part of HUL) Ltd acquired 23% stake
1998 Operations commenced in 10 cold chain warehouses across India
2001 Mitsubishi Corporation and Mitsubishi Logistics Corporation jointly acquired a majority stake
2004 Nichirei Logistics Group Inc. (Japan) bought a 15% stake
2006 GDL acquired 6,861,000 equity shares from Amalgam Foods Limiteds and by subscribing to fresh shares to become the largest
shareholder in the company
2008 Warehouses got ISO 22000 (Food Safety Policy) certification
2010 IFC acquired 20% stake
Certain cold chain warehouses received ISO 14001 (Environmental Safety Policy) certification
2011 New warehouses were set up in Mevalurkuppam, (near Chennai) and Bengaluru
2012 Taloja (near Mumbai) warehouse was set up
2013 NVP acquired 14.28% stake
New warehouses in Chennai, Bengaluru, Visakhapatnam, Taloja (near Mumbai), Mulshi (near Pune) and Palwal (near Delhi) were set
up
GDL acquired 5,142,500 shares in the company from IFC
GDL entered into a share purchase agreement with Nichirei Logistics Group Inc.
Source: DRHP

Table 3: Issue details

Type of issue Initial public issue
Shares offered to public 42 mn
Shares offered as percent of post issue equity (dilution) 25.3%
Object of the issue Setting up new cold storages and ambient warehouses
Long-term working capital
General corporate purposes
Amount proposed to be raised Not available at the time of grading
Price band Not available at the time of grading
Lead managers HDFC Bank Ltd

Source: DRHP

3
 CRISIL IPO Grading Rationale

Table 4: Use of IPO proceeds

Particulars Deployment of IPO proceeds ( mn)
Setting up new cold chain and ambient warehouses 1,303.75
Long-term working capital 134.97
General corporate purposes NA
Total NA
Source: DRHP

Table 5: Shareholding pre- and post-issue

Pre-issue Post-issue (estimated)
Category of equity shareholders
No. of equity shares % No. of equity shares %
Promoters and promoter group 5,98,54,119 48.33 5,98,54,119 36.09
Others* 6,39,81,738 51.67 10,59,81,738 63.91
Total 12,38,35,857 100.00 16,58,35,857 100.00
*Others include Mitsubishi Corp., Mitsubishi Logistics Corporation, IFC and NVP
Source: DRHP

4
 RESEARCH

Detailed Grading Rationale

A. Business Prospects
Cold chain industry has strong growth prospects driven by growth in end-user industries and organised
retail

CRISIL Research expects the 150 bn (FY13 estimate) cold chain industry to grow at a healthy 15-17% over the next
three years driven by growth in end-user industries and organised retail. Within the cold chain industry, warehousing
services (which constituted about half of Snowmans revenues in FY13) are expected to grow at a CAGR of 15-17% from
125 bn in FY13 to 218 bn in FY16.

Figure 1: Cold chain storage revenues to grow at a CAGR Figure 2: Cold chain storage volumes to grow at a CAGR
of 16% over FY13-16 of 9% over FY13-16
(. bn) (Mn Tonnes)
30
250

25
200

20
150
216 15
190 27
100 162 24
21 22
141 10 20
125 17 18
110
50 96
5

8 8.5 11 12 15 17.5 21
0 0
FY10 FY11 FY12 FY13 FY14E FY15E FY16E FY10 FY11 FY12 FY13 FY14E FY15E FY16E
Transportation Warehousing Warehousing Volumes

Source: CRISIL Research Source: CRISIL Research

The main growth drivers in the domestic cold chain industry are:

Proliferation of QSRs: The QSR (Quick Service Restaurant) industry is projected to grow at a healthy CAGR of 30%
over FY13-16 driven by factors such as favourable demographics, rise in disposable incomes and increase in
urbanisation. On the supply-side, the entry of international brands, expansion by the existing players and an improving
retail infrastructure are expected to ensure strong growth. This proliferation of multinational QSR chains in India should
create a demand for a pan-India cold chain logistics companies who can provide high quality services across India to the
QSR chains.

5
 CRISIL IPO Grading Rationale

Figure 3: QSR revenues to grow at 30% CAGR over FY13-16

( mn)
80

70

60

50

40
70
30
55

20 43
34
25
10 20
15

-
FY10 FY11 FY12 FY13 FY14 FY15 FY16

Source: CRISIL Research

Increase in penetration of organised retail: Although food and grocery collectively constitute 60% of overall retail, the
penetration of this group in organised retail is quite low (2.5%). Due to the perishable nature of food and grocery products
such as ice cream, butter and cheese, the biggest challenge for this group is the under-developed cold chain
infrastructure. This challenge creates an opportunity for cold chain service providers.

Skewed distribution of cold storage units in India: India has a very uneven distribution of cold storage units. For
instance, 44% of the cold storage in India is concentrated in Uttar Pradesh (Figure 4).This creates a demand for cold
chain services in areas with low density of cold storage units.

Figure 4: Skewed distribution of cold storages in India

Others
15%

Bihar
5%

Andhra Pradesh UP
5% 44%

Gujrat
6%

Punjab
6%
West Bengal
19%

Source: CRISIL Research

Increase in export demand for seafood: CRISIL Research expects the fisheries export industry to grow to US$5.19 bn
in 2015-16 at a three-year CAGR of 14% driven by increasing demand from key importing countries such as the US, the
EU, Japan, China and the Middle East.

6
 RESEARCH

India is one of the largest producers of seafood in the world but 20-30% of annual seafood produce is wasted as its shelf
life is short. Although most of the seafood is caught in summer, there is a huge demand for seafood throughout the year.
For assured supply during the non-catch season, there is a need for cold storages to maintain quality and prevent
spoilage of seafood.

Emergence of niche segments that require cold chain services: There is an untapped demand for cold chain
services from niche segments such as pharmaceuticals, enzymes, reagents, films, etc. due to high temperature
sensitivity of the products and potential high loss in case of spoilage.

The industry is shifting towards high premium end-products and organised play

The cold chain industry is moving towards high premium end-products and the organised segment from the plain vanilla
storage of potatoes.

The cold chain industry in India is highly fragmented with the unorganised segment comprising an estimated 90% market
share. The unorganised sector consists mainly of low quality warehouses offering simple storage or standalone
transporters. Although there are many standalone transporters, most of the organised players have a limited number of
cold storage units. The main players in the organised sector are Snowman, RK Foodlands, Coldex, Devbhomi, Kausar
India, Fresh and Healthy Enterprises and Bulaki Deep Freeze.

There are almost 6,500 cold storages across the country, most of which are operated by small players with less than five
cold storage units. In terms of catering to end products, 74% of the cold storage facilities are used for potatoes. With
growing demand for multipurpose storage facilities, the share of potato storage, which is a low-margin business, is
declining.

Favourable government policies to promote cold chain infrastructure

Favourable government policies offer incentives such as viable gap funding, tax cuts, liberal FDI norms etc. to the cold
chain infrastructure companies to encourage them to invest heavily in the industry.

In FY12, the Government of India awarded infrastructure status to the cold chain industry in India to curb post-harvest
losses, increase realisations for farmers and lower price fluctuations in perishable commodities.

7
 CRISIL IPO Grading Rationale

The cold chain industry was awarded

Infrastructure status
inf rastructure status in FY12

Funding up to 40% of the project cost and 55%

Viability gap funding of the project cost in the case of north-eastern
areas

5% concession on import duty, service tax

Tax and duty cuts exemption, excise duty exemption on several
items.

Deduction of 150% of the total capex while

Depreciation benefits
computing taxable income

Foreign investment norms 100% FDI norms & liberal ECB norms

Established in 2011 to look into matters related

NCCCD establishment
to cold chain inf rastructure

Financial outlay f or cold chain inf rastructure and

Proposed Policies f ood parks of 1,675 cr and 3,250 cr
respectively.

Snowman - a complete cold chain provider with presence across value chain

Snowman is a leading integrated cold chain player in India with presence across the value chain of the industry. The
company offers high quality cold chain storage, distribution and value-added services. It has high-end equipment and
handling mechanism, and uninterrupted power and fuel supply. Further, the companys presence in 13 locations allows it
to offer services to clients across India.

Snowman charges its clients a premium based on high quality offering, pan India operations and presence across the
value chain.

The value chain

Collection Cold Dispatch to

from source Pre-cooling Transportation Cold storage VAS the market

8
 RESEARCH

Caters to diverse end-product industries to counter demand volatility and realise growth potential

Snowman offers cold chain logistic solutions for diverse industries such as seafood, poultry products, fruits and
vegetables, dairy products, ice-cream, retail, pharmaceuticals and some other niche segments. Serving diverse end
products helps the company in countering demand volatility as most of the end products that require cold storage have
seasonal demand.

Snowman is also well placed to gain from the growth prospects in the end-product industry it serves.

Figure 5: Well-diversified product mix (FY13) Figure 6: Segmental revenue mix FY13
RTC Sea Food Consignment
QSR 9% 19% Transportation Agency
10% 52% 2%

Poultry & Agro Food

Meat 12%
10%

Other
1%

Industrials
4%
Dairy
Products Confectionery Warehousing
Icecream Pharma 14% 46%
7% 11%
3%

Source: Company, CRISIL Research Source: Company, CRISIL Research

Table 6: Strong end-product industry growth to boost cold chain demand

End products segment Revenue share (FY13) Outlook (CAGR over FY13-16) Key clientele
Seafood 19.0% 12.5% West Coasts Fine Foods Ltd.
Confectionaries 14.0% 14.0% Ferrero India Ltd., McCain Foods Ltd.
F&V & agro foods 12.0% High growth Godrej Agro
Dairy 11.0% 10.0% Amul
QSR 10.0% 30.0% Subway, Dominos, KFC
Poultry 10.0% 14.0% Suguna Foods Limited
Ready to cook 9.0% 10.0% McCain Foods Ltd.
Ice-cream 7.0% 19.0% HUL
Niche segments 7.0% High growth Novozyme, Indian Immunologicals Limited
Others 1.0%
Source: CRISIL Research

Well diversified and loyal clientele

Snowmans clients are from diverse industries such as FMCG, QSRs, poultry, seafood, dairy, food processing,
confectionaries and pharmaceutical. The strong and diversified customer base helps the company in running at high
utilisation throughout the year. Snowmans key clients are Hindustan Unilever Ltd (HUL), Al-Karim Exports Private Ltd,
McCain Foods India Pvt. Ltd (McCain), Novozyme South Asia Pvt. Ltd (Novozyme), Ferrero India Pvt. Ltd (Ferrero),
Graviss Foods Private Ltd etc.

The company has relatively low client concentration as its top 25 clients contribute ~40% to the companys total
revenues.

9
 CRISIL IPO Grading Rationale

Three-pronged service model in warehousing

Dedicated chamber: The entire chamber capacity is sold on a dedicated basis. Rent for the capacity is charged
irrespective of whether the client uses capacity or not.
Guaranteed space: A fixed number of pallets are guaranteed to the client, which can be used whenever required. If
the client is not using its capacity, Snowman can use this capacity for pay-and-park customers.
Pay and park: Under this model, clients pay for the capacity and store their products.

The three-pronged strategy helps the company in maintaining high utilisation.

Superior services compared with unorganised players

Snowman has been focusing on offering superior services to its clients compared with the unorganised players. It offers
value-added services (VAS) services including cleaning, grading, sorting, packaging and inventory management to its
clients.

Snowman uses very efficient modern warehousing infrastructure which includes real time data logging and enterprise
resource planning (ERP system) to monitor and track the quality and quantity of products stored and being transported.
Clients can themselves track and monitor the temperature of its products in storage and distribution.

Snowman uses Freon 404 as refrigerant, which though expensive is safer and better compared with ammonia used by
the unorganised players. Use of ammonia has regulatory repercussions as well.

Table 7: Freon vs ammonia

Desired properties Freon Ammonia
Industrial Name R404 R-717
Low boiling point -46.1 -33.3
Non-corrosive to metal Non-corrosive Corrosive
Flammability Non-inflammable Flammable
Toxicity Non-toxic Toxic
Explosive nature Non-explosive Explosive
Cost Expensive Cheap
Easy to locate leaks by odour or other
No Yes
suitable indicator
Source: CRISIL Research

Snowman also offers ultra freezing facility to its clients. It has installed a blast freezer which can be used to freeze
products to as low as -40 degree Celsius. Bacteria multiply fastest between +8C (46F) and +68C (154F). By reducing
the temperature of cooked food from +70C (158F) to +3C (37F) or below within 90 minutes, the food is rendered safe
for storage and future consumption.

10
 RESEARCH

Key risks
Aggressive incremental capacity expansion

Snowman is aggressively expanding its capacity from 36,210 pallets in FY13 to 100,000 pallets in the next couple of
years. In case the company is unable to generate sufficient business, its utilisation could come under pressure,
subsequently putting pressure on profitability and growth.

Cost overruns in the capacity expansion plan

Cost overruns and delay in building the new warehouses may hamper growth and put pressure on the companys
financials.

11
 CRISIL IPO Grading Rationale

B. Financial Performance
Snowmans operating income grew at a CAGR of 48.5% from 346 mn in FY10 to 1,137mn in FY13 driven by capacity
expansion, broadening of end product offering and increase in the client base. EBITDA margin improved by 650 bps from
16.0% in FY10 to 22.5% in FY13 due to increase in utilisation and improvement in per pallet realisation. Consequently,
EBITDA grew at a CAGR of 66.3% from 56 mn in FY10 to 256 mn in FY13.

Adjusted PAT grew at a CAGR of 79.1% from 38.2 mn in FY10 to 219.4 mn in FY13 on the back of strong growth in
EBITDA and tax credit on account of Section 35AD of Income Tax Act 1961. Consequently, PAT margin improved from
11% in FY10 to 19.3% in FY13.

Due to large capex of 1,153 mn in FY13, the company has a negative free cash flow. It has a net debt of 885 mn as of
FY13.
mn FY09 FY10 FY11 FY12 FY13
Operating income 316 346 452 614 1,137
EBITDA 27 56 91 130 256
EBITDA margin 8.4% 16.0% 20.0% 21.1% 22.5%
Adjusted PAT 9.6 38.2 62.7 34.3 219.4
Adj PAT Margin (%) 3.0% 11.0% 13.9% 5.6% 19.3%
Adj EPS () (0.1) (0.4) (0.6) (0.3) (2.1)
RoCE (%) (2.1) 2.3 5.0 6.7 9.9
RoE (%) 2.8 4.6 6.2 3.2 18.4
Actual o/s shares (mn) 82.3 102.9 102.9 102.9 102.9
Net debt/equity (x) (0.4) (0.5) (0.3) (0.1) 0.7
Net worth - - - - -
Cash flow from operations (65.7) 32.8 70.7 94.5 244.2
Source: DRHP

RoE rose sharply from 4.6% in FY10 to 18.4% in FY13. RoCE increased from 2.3% in FY10 to 9.9% in FY13.

12
 RESEARCH

Financials
Income statement
( mn) FY09 FY10 FY11 FY12 FY13
Operating income 316 346 452 614 1,137
EBITDA 27 56 91 130 256
EBITDA margin 8.4% 16.0% 20.0% 21.1% 22.5%
Depreciation 34 36 40 59 91
EBIT (7) 19 50 71 165
Interest 0 0 0 0 23
Operating PBT (8) 19 50 70 142
Other income 16 18 23 20 3
Exceptional inc/(exp) 0 (8) 1 17 (15)
PBT 8 30 75 107 130
Tax provision (1) (0) 11 56 (74)
Minority interest - - - - -
PAT (Reported) 10 30 64 51 205
Less: Exceptionals 0 (8) 1 17 (15)
Adjusted PAT 10 38 63 34 219
Source: DRHP

13
 CRISIL IPO Grading Rationale

C. Management Capabilities and Corporate Governance

Snowmans professional management and seasoned promoters bring in huge experience in the logistics industry and
financial stability to grow the company.

Professional management supported by a strong professional second line

We believe that the company is led by an experienced and professional management. The management is headed by
Mr Ravi Kannan (CEO and whole-time director) who has 18 years of experience in the supply chain industry. The
management has been able to demonstrate strong understanding of the business and planning and execution
capabilities by increasing the capacity five times in less than two years without any detrimental effect on the realisation
and margins. Under the current management, the company has successfully increased its client base and strengthened
its offerings.

Seasoned promoters and other shareholders

GDL as a promoter brings in experience in the logistics industry. GDLs chairman, Mr Pillai, was instrumental in
completely revamping and restructuring Snowmans management in 2007, when GDL became the majority shareholder.

IFC, a World Bank member, is another strong shareholder. It has 12.46% stake in Snowman. Since its investment in
2010, IFC has been very critical in bringing the best practices, quality assurance checks, increasing efficiency, setting out
specific environmental measures and giving direction to the recent capacity expansion plan. The company has obtained
many certifications under IFC guidance to improve the internal audit practices and monitoring to assure the quality of the
products stored and transported.

Board includes experienced independent directors from diverse backgrounds

Snowmans board consists of eight directors, of whom four are independent directors. Two of the independent directors
are from the logistics industry and other two have experience in the financial industry. The diverse backgrounds help in
constructive contribution in the decision-making process during the board meetings.

We believe that board processes are in place. All the major decisions are discussed at the board meetings and the
independent directors receive the necessary documents in advance. The company currently has four committees (audit,
compensation, share allotment, transfer & investor grievances and IPO). The companys quality of disclosure can be
considered good judged by the level of information and details furnished in the DRHP, websites and other publicly
available data. Further, based on our interactions with the management, we believe that the management is transparent
and forthcoming with information.

14
 RESEARCH

Annexure I: Profile of the directors

Name Designation Age Qualification Directorships / partnership in other entities
Mr Gopinath Chairman 76 Bachelor's Degree from the Incorporated in Singapore
Pillai University of Malaya Windmill International Pte. Ltd
Savant Infocomm Pte. Ltd
KSP Investments Pte. Ltd
Savant Infotech Solutions Pte. Ltd
Little India Arcade Pte. Ltd
Edutech Investments (India) Pte. Ltd
Eastcom Systems Pte. Ltd
Manquist Holdings Pte. Ltd
Tourmasters Pte. Ltd
Tourmasters (GSA) Pte. Ltd
Infocom Technologies & Education Pte. Ltd
Playware Studios Asia Pte. Ltd
Ang Mo Kio- Thye Hua Kwan Hospital Ltd
Jurong International Holdings Pte. Ltd
Incorporated in India
Gateway Distriparks Ltd
Gateway East India Pvt. Ltd
Gateway Distriparks (South) Pvt. Ltd
Gateway Rail Freight Ltd
Gateway Distriparks (Kerala) Ltd
Chandra CFS and Terminal Operators Pvt. Ltd
Incorporated in Mauritius
KSP Holdings Ltd
Edutech Holdings (India) Ltd
KSP Logistics Ltd
Incorporated in the UK
AEC Education Plc
Mr Prem Kishan Vice 55 Bachelors degree in Science Incorporated in India
Dass Gupta Chairman & from the University of Delhi. Gateway Distriparks Ltd
Director Gateway East India Pvt. Ltd
Gateway Distriparks (South) Pvt. Ltd
Gateway Rail Freight Ltd
Gateway Distriparks (Kerala) Ltd
Chandra CFS and Terminal Operators Pvt. Ltd
Massco Media Pvt. Ltd
Perfect Communications Pvt. Ltd
Prism International Pvt. Ltd
Star Cineplex Pvt. Ltd
Prima Soft Tissues Pvt. Ltd
Prestige Infracon Pvt. Ltd

15
 CRISIL IPO Grading Rationale

Name Designation Age Qualification Directorships / partnership in other entities

Mr Shabbir Independent 67 Accountant Incorporated in Singapore
Hakimuddin Director Indo Straits Trading Co. (Pte.) Ltd
Hassanbhai Hassanbhai Realty Pte. Ltd
Zee Chin & Co Pte. Ltd
Hakimuddin & Sons Pte. Ltd
Premier Travels (GSA) Pte. Ltd
Singapore Business Advisors and Consultants Council Ltd
Intraco Ltd
Incorporated in India
Gateway Distriparks Ltd
Gateway Distriparks (South) Pvt. Ltd
Gateway East India Pvt. Ltd
Gateway Rail Freight Ltd
Chandra CFS and Terminal Operators Pvt. Ltd
Incorporated in United Arab Emirates
Al Badawi General Trading LL
Mr Saroosh Independent 43 Bachelor of Commerce and Gateway Distriparks Ltd
Cowasjee Director LL.B. and holds a MBA from Cowasjee Dinshaw and Sons Pvt. Ltd
Dinshaw the Texas Christian University United Salt Works and Industries Ltd
The Zoroastrian Co-operative Bank Ltd
Mr Kannan Whole time 54 Masters degree in Computer
Ravindran Director and Application
Naidu CEO
Mr Michael Independent 70 Retired IAS officer Gateway Distriparks Ltd
Philip Pinto Director Star Paper Mills
Infrastructure Leasing & Financial Services Ltd
Gateway Distriparks ( Kerala) Ltd
Ashoka Buildcon Ltd
SCI Forbes Ltd
Tolani Shipping Company Ltd
Principal Trustee Company Pvt. Ltd
Essar Ports Ltd
Mr AKT Chari Independent 74 Electrical Engineering from Infrastructure Development Corporation (Karnataka) Ltd
Director the University of Madras Feedback Infra Pvt. Ltd
HDFC Standard Life Insurance Company Ltd
HDFC Pension Management Company Ltd
Mahindra EPC Services Pvt. Ltd
Mr Masakazu Director 55 Bachelors degree in Mitsubishi Corporation India Pvt. Ltd
Sakakida Engineering from the MC Craft Machinery Pvt. Ltd
University of Tokyo, Japan Asahi Glass India Ltd
Source: DRHP

16
 RESEARCH

Our Capabilities
Making Markets Function Better

Economy and Industry Research

Largest team of economy and industry research analysts in India
Coverage on 70 industries and 139 sub-sectors; provide growth forecasts, profitability analysis, emerging
trends, expected investments, industry structure and regulatory frameworks
90 per cent of Indias commercial banks use our industry research for credit decisions
Special coverage on key growth sectors including real estate, infrastructure, logistics, and financial services
Inputs to Indias leading corporates in market sizing, demand forecasting, and project feasibility
Published the first India-focused report on Ultra High Net-worth Individuals
All opinions and forecasts reviewed by a highly qualified panel with over 200 years of cumulative experience

Funds and Fixed Income Research

Largest and most comprehensive database on Indias debt market, covering more than 15,000 securities
Largest provider of fixed income valuations in India
Value more than 53 trillion (US$ 960 billion) of Indian debt securities, comprising outstanding securities
Sole provider of fixed income and hybrid indices to mutual funds and insurance companies; we maintain 12
standard indices and over 100 customised indices
Ranking of Indian mutual fund schemes covering 70 per cent of assets under management and 4.7 trillion
(US$ 85 billion) by value
Retained by Indias Employees Provident Fund Organisation, the worlds largest retirement scheme covering
over 60 million individuals, for selecting fund managers and monitoring their performance

Equity and Company Research

Largest independent equity research house in India, focusing on small and mid-cap companies; coverage
exceeds 125 companies
Released company reports on 1,442 companies listed and traded on the National Stock Exchange; a global
first for any stock exchange
First research house to release exchange-commissioned equity research reports in India
Assigned the first IPO grade in India
Analytical Contact Media Contact
Sandeep Sabharwal, Mohit Modi, Manasi Apte,
Senior Director, Capital Markets Director Equity Research Communications and Brand Management
Phone: +91 22 4097 8052 Phone: +91 22 4254 2860 Phone: +91 22 3342 1812
Email: sandeep.sabharwal@crisil.com Email: mohit.modi@crisil.com Email: manasi.apte@crisil.com

Contact us
Phone: +91 22 3342 3561
E-mail: clientservicing@crisil.com | research@crisil.com

About CRISIL Ltd

CRISIL is a global analytical company providing ratings, research, and risk and policy advisory services. We are India's leading ratings agency. We are
also the foremost provider of high-end research to the world's largest banks and leading corporations.

About CRISIL Research

CRISIL Research is India's largest independent and integrated research house. We provide insights, opinions, and analysis on the Indian economy,
industries, capital markets and companies. We are India's most credible provider of economy and industry research. Our industry research covers 70
sectors and is known for its rich insights and perspectives. Our analysis is supported by inputs from our network of more than 4,500 primary sources,
including industry experts, industry associations, and trade channels. We play a key role in India's fixed income markets. We are India's largest provider
of valuations of fixed income securities, serving the mutual fund, insurance, and banking industries. We are the sole provider of debt and hybrid indices
to India's mutual fund and life insurance industries. We pioneered independent equity research in India, and are today India's largest independent equity
research house. Our defining trait is the ability to convert information and data into expert judgments and forecasts with complete objectivity. We
leverage our deep understanding of the macro economy and our extensive sector coverage to provide unique insights on micro-macro and cross-
sectoral linkages. We deliver our research through an innovative web-based research platform. Our talent pool comprises economists, sector experts,
company analysts, and information management specialists.

CRISIL Privacy
CRISIL respects your privacy. We use your contact information, such as your name, address, and email id, to fulfil your request and service your
account and to provide you with additional information from CRISIL and other parts of McGraw Hill Financial you may find of interest.

For further information, or to let us know your preferences with respect to receiving marketing materials, please visit www.crisil.com/privacy. You can
view McGraw Hill Financials Customer Privacy Policy at http://www.mhfi.com/privacy.

Last updated: May, 2013

Disclaimer
A CRISIL IPO Grading is a one-time assessment and reflects CRISIL's current opinion on the fundamentals of the graded equity issue in relation to
other listed equity securities in India. A CRISIL IPO Grading is neither an audit of the issuer by CRISIL nor is it a credit rating. Every CRISIL IPO
Grading is based on the information provided by the issuer or obtained by CRISIL from sources it considers reliable. CRISIL does not guarantee the
completeness or accuracy of the information on which the grading is based. A CRISIL IPO Grading is not a recommendation to buy / sell or hold the
graded instrument; it does not comment on the issue price, future market price or suitability for a particular investor.

CRISIL is not responsible for any errors and especially states that it has no financial liability whatsoever to the subscribers / users / transmitters /
distributors of CRISIL IPO Gradings. For information on any IPO grading assigned by CRISIL, please contact 'Client Servicing' at +91 22 3342 3561, or
via e-mail: clientservicing@crisil.com.
For more information on CRISIL IPO Gradings, please visit http://www.crisil.com/ipo-gradings

Stay Connected | CRISIL Website | Twitter | LinkedIn | YouTube | Facebook

CRISIL Limited
CRISIL House, Central Avenue,
Hiranandani Business Park, Powai, Mumbai 400076. India
Phone: +91 22 3342 3000 | Fax: +91 22 3342 8088
www.crisil.com
CRISIL Limited. All Rights Reserved. CRISIL Ltd is a Standard & Poor's company