TVS INDUSTRIAL LOGISTICS PARKS PVT LTD Emergence of

TVS INDUSTRIAL & LOGISTICS PARKS PVT. LTD. Emergence of Modern Warehouse Buildings & Logistics Parks By Nitin Aggarwal, VP – TVS ILP All Rights Reserved © Author: TVS Industrial & Logistics Parks Pvt. Ltd. 1

Evolution The Story of Storage Spaces Origins difficult to pinpoint, used primarily to store food HISTORICALLY MODERN All Rights Reserved © Author: TVS Industrial & Logistics Parks Pvt. Ltd. Early civilizations Eg. Indus Valley, Roman, Egyptian used for storage of food, materials & barter items As early transport systems developed, warehouses became terminal points for land & sea trade routes Ancient Granaries Storage Pits & Rooms Terminal Warehousing Godowns Standalone Warehouses Logistics Parks/Modern Warehouses Originates from the Malay word Godong, literally going down to the storage area Changing role of the sector, warehouses created as storage & COLLECTION points While market still unorganized, huge push for change & creation of hubs 2

Evolution Key Drivers changing the Global landscape Some of the worlds largest warehouses & facilities: (in Sq. Ft. ) The Rise of Mega Warehouses John Deere Warehouse, USA 2. 6 Mn. 1 Booming e-Commerce & Retail market driving the construction of Mega Warehouses (> 1 Mn. Sq. Ft. ) – One stop shops! Target Import Warehouse, USA 2. 0 Mn. 2 90 mn. Sq. ft. of these Mega Warehouses were constructed in the United States ! China & Europe following suit !!! Amazon Fulfilment Centre, Scotland 1. 1 Mn. 3 Fuel prices have also driven companies to look for ways to centralize product distribution! Shaw National DC, UK 1. 1 Mn. 4 In 2015, avg. height of warehouses in the USA was ~22 mt. Extra height provides room for mezzanine floors, maximizing space! 5 As warehouses get bigger, screening & monitoring of mostly temporary workers will evolve Morrisons Centre, UK TESCO, Ireland 0. 9 Mn. 0. 8 Mn. All Rights Reserved © Author: TVS Industrial & Logistics Parks Pvt. Ltd. Source: spacer. com/au, morethanshipping. com 3

Evolution India vs. the Rest of the World The World India Standalone Warehouses: 1 – 2 Lakh Sq. Ft. Modern Warehouse: 5 – 7 Lakh Sq. Ft. Mega Warehouses: Excess of 1 Million Sq. Ft. Godowns: 0. 5 – 1 Lakh Sq. Ft. Standalone Warehouse: 0. 75 – 2 Lakh Sq. Ft. Logistics Parks/Modern Warehouses: Less than 1 Million Sq. Ft. All Rights Reserved © Author: TVS Industrial & Logistics Parks Pvt. Ltd. 4

Evolution Godowns/Godaam Key Drivers changing the Indian landscape Standalone Warehouses Logistics Parks & Modern Warehouses 1 Rise in manufacturing activity, increasing international trade + emergence of organized retail Value Added Services = Food Courts, Fuel Docks, Restrooms, Offices etc… 6 2 Growing need for organized spaces, Godowns being asked to shift out of cities India economically stable, witnessing growth of >7% for past decade 7 3 PEB technology, JIT techniques, Pre-Cast Tech, automation / optimization of processes & systems Regulations like GST – consolidation of small facilities to large ones, will drive demand for WH 8 4 Increasing private & foreign investments in infrastructure Increasing connectivity Pan-India, need for consolidated hubs & zones 9 All Rights Reserved © Author: TVS Industrial & Logistics Parks Pvt. Ltd. 5

Overview Key Features of storage spaces in India Godowns/Godaam Standalone Warehouses Logistics Parks / Modern Warehouses 80 -85% 8 -10% 3 -5% Unorganized Organized Automated & Organized Storage Area Low Adequate Very High Security & Surveillance Low High Very High Space for parking & movement Poor Adequate Very Good Low - Medium High Connectivity & Access Poor Good Very Good Potential for Automation & Optimization Low High Very High Fire Safety Low Good Very Good Water & Sanitation Poor Good Very Good Features % of Current Indian Market Arrangement of products/goods Ceiling Height The need for all these features in a single facility or hub, facilitates & calls for the development of modern warehouses and logistics parks All Rights Reserved © Author: TVS Industrial & Logistics Parks Pvt. Ltd. 6

Landscape Key Areas of Focus Availability, Procurement, Prices, Clear Titles, Proper Approvals, Multiplicity & Complexity of Regional Laws Artificially low pricing in some markets leads to lack of innovation LAND INDUSTRY Unorganised nature of Industry leads to credibility issues - CREDIBILITY compliances, titles, etc. 3 FINANCE 4 Ability to raise funds for projects, contingencies for project overruns Approval/Acquisition processes & policies, Construction quality - upgradation All Rights Reserved © Author: TVS Industrial & Logistics Parks Pvt. Ltd. 2 Pan - India STANDARDIZATION What is each one doing differently 1 5 DIFFERENTIATOR 6 7

Landscape Navigating the changing landscape… Partnerships: With regional players with existing spaces, with local expertise on ground to help w/ key issues & assist in resolution Developing a comprehensive understanding of Who We Are in the industry – Trying to create a niche rather than indulging in completion Educating the client about the positives of the offerings Association with a trusted name & Delivering again and again. . Specialised Teams, and Standardized Offerings, leading to economies of scale faster turn-around time 1 2 3 Capitalization FINANCE 4 STANDARDIZATION Creation of technical teams that provide value engineering for the supply chain system All Rights Reserved © Author: TVS Industrial & Logistics Parks Pvt. Ltd. INDUSTRY CREDIBILITY Establishing cash flow certainty and identifying right investors who believe in the vision LAND 5 DIFFERENTIATOR 6 8

Sociologists like Alain Testart have argued that these early storage techniques were ‘key’ to the evolution of societies As civilization has developed, warehousing today has become broader, more diverse, more complex. All Rights Reserved © Author: TVS Industrial & Logistics Parks Pvt. Ltd. 9

Thank You ! THANK YOU !!!!! About TVS Infrastructure Assets in Operation/Execution: ~ 4 Mn. Sq. Ft. Assets in Creation: ~ 4 -5 Mn. Sq. Ft. § § Logistics Parks Industrial Facilities EPC FMS Catering to India’s needs by making World Class Facilities happen! www. tvsilp. in @TVSILP All Rights Reserved © Author: TVS Industrial & Logistics Parks Pvt. Ltd. 10

TVS ILP Our EPC Approach to the changing landscape 1 In depth understanding of the construction industry 2 Range of construction services from the conceptual design phase through to facilitycommissioning 3 Strong Labour Management expertise & ability to have multiple contractors across multiple sites 4 Facility design focusses on reducing inventory, maximizing utilization & improving on efficiencies 5 Strict adherence to project management plans & execution – can deliver in 3 -4 months 6 Focus on fully integrated professional FMS as part of a fully integrated industrial infrastructure services package All Rights Reserved © Author: TVS Industrial & Logistics Parks Pvt. Ltd. STAGE III DESIGN: § Scheduling & Estimating § Constructability Review § Value Engineering BID: § Packaging & Review § Document & Contracts Prep CONSTRUCTION PHASE: § Schedule Administration § Quality Control § Contractor Coordination § Cost Reporting 09 -Jun-21 11