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Indian Shipping Sector


Shipping plays an important role in the transport

sector of Indias economy.


Approximately, 90 % of the countrys trade volume

(70 % in terms of value) is moved by sea.


India has one of the largest merchant shipping fleet

among the developing countries and is ranked17th in the world.

COMPANY OVERVIEW

About the Company


Varun is a private sector shipping company in India.

With its diversified fleet in LPG and crude oil sectors. The company provides comprehensive shipping solution across the entire hydrocarbon product chain to its valued customers. Varun owns/operates a fleet of 21 vessels, comprising 11 LPG carriers, 3 crude oil tankers and 7 anchor handling towing and supply (AHTS) vessels. The company has a diversified and well established 5 base of customers, including Indian Public Sector

Value Statement
Offering our customers a comprehensive shipping

and services solution across the entire hydrocarbon chain.


Adapting to customers requirements by expanding

and diversifying our shipping product range.

Companys Journey

Shareholders & Promoters

Companys Under Varun Shipping


VSC International Pvt. Ltd.

Tarun Shipping and Industries Ltd.

Varun Cyprus Ltd.

Varun Shipping
Ocean Race Shipping Co. Ltd. Realpoint (Mauritius) Ltd.

Varun Asia Pvt. Ltd.

Fleet Size

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BUSINESS STRATEGY

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Business Strategy
Our strategy is to assess the shipping requirements

of our customers in the hydrocarbon sector both in India and globally.


The plan is to maintain our presence in India while

we seek to increase our presence in the global market.


The plan is to expand our fleet to cater to the

growing needs of our customers and benefit from the expected growth in demand for hydrocarbon 12 transportation, both in India and abroad.

Business Strategy Cont.... Expansion of Fleet


Expansion strategy vis--vis sectors of business

a) Niche market sectors:Niche market sectors comprise sectors typically characterized by few charterers and owners, where the vessel requirements and designs are relatively specific to the trade involved. b) General market sectors:General market sectors comprise sectors with a large base of charterers, and owners, where the 13 vessel requirements and designs have evolved into

Business Strategy Cont.... Expansion of Fleet


Business Expansion strategy vis--vis India

Our expansion strategy vis--vis India would be to focus on acquiring cost efficient vessels where payback periods are lower.
Business strategy vis--vis international trade.

Our expansion strategy vis--vis international trade is to focus on acquiring younger vessels of a global standard size with design well suited for various trades and versatile use for a variety of customers in different markets.
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Business Strategy Cont.... Charterers


Intend to further strengthen our relationships with

charterers by striving to meet or exceed our charterers business needs.


As a major portion of our revenue is generated from

repeat customers, we intend to leverage on our existing relationships with these charterers to expand our business.
Explore logistic requirements of our charterers with

a view to provide efficient and economical, maritime 15 and logistical solutions to the end users.

Charterers Domestic & International


Domestic

International

Public SectorIndian Oil Corporation Limited. Hindustan Petroleum Corporation Limited. Bharat Petroleum Corporation Limited. Oil and Natural Gas Corporation Limited.

BP Group Trafigura Group, Transammonia Group, Shell Group, Sonatrach Group, Total Group, Vitol Group, Glencore, Pertamina, Koch, Nitrochem

Private Sector Reliance Group and Essar 16 Group

Major Competitors
The Shipping Corporation of India Ltd.

Mercator Lines Ltd.


Dredging Corporation of India Ltd. Global Industries, Ltd.

SKS Logistics Ltd.


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Financial Analysis

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Share Capital
150.5

150
149.5 149 148.5 148 147.5 147 Mar'07 148 Mar'08 150 Mar'09 150 Mar'10 150 Mar'11 150

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Profit After Tax


2500 2000 1500 1000

500
0 -

March'07 1413.5

March'08 2257.79

March'09 1228.05

March'10 125.83

March'11 147.48

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Total Expenditure
5000

4500
4000

3500
3000 2500 2000 1500 1000 500 0 March'07 2995.17 March'08 3577.14 March'09 4502.16 March'10 4260.71 March'11 4733.74

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Net Block (Asset)


6000 5000 4000 3000 2000 1000 March'07 Depreciation 523.47 Gross Block 2415.77
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March'08 688.55 3635.45

March'09 780.02 4316.17

March'10 636.13 3765.94

March'11 481.38 2925.3

Sales
10000

9000
8000

7000
6000 5000 4000 3000 2000 1000 0 March'07 6726.27 March'08 9325.67 March'09 9146.59 March'10 6662.23 March'11 4914.27

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Total Debt
3000 2500 2000 1500 1000 500 March'07 Unsecured Loans 69.65 Secured Loans 2634
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March'08 39.55 2701.85

March'09 0 2846.84

March'10 0 2200.82

March'11 0 1793.05

Reserves & Surplus


900 800 700

600
500 400 300 200 100 0 25

Mar'07 581.06

Mar'08 764.84

Mar'09 661.74

Mar'10 667.21

Mar'11 669.15

Ratio Analysis

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Earnings Per Share (EPS)


EPS= NPAT-Pref div no of shares
16 14 12 10 8 6 4 2 Rs/ Share

0
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March'07 9.9

March'08 15.05

March'09 8.91

March'10 0.84

March'11 0.98

Return on Capital Employed


14 12 10 8 Rs. In Crores

6
4 2 0 -2 -4 28

Mar '07 8.29

Mar '08 12.29

Mar '09 6.2

Mar '10 1.56

Mar '11 -3.19

Current Ratio
Current Ratio = Current Asset Current Liabilities
8 7 6 5 4 3 2 1 0 Mar '07 1.66 Mar' 08 0.78 Mar' 09 1.56 Mar '10 4.36 Mar '11 7.08

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Growth Strategy
To maintain leadership position in domestic and

global LPG Transportation by retaining around 70 per cent share in the Indian Market and build businesses in emerging economies within Asia and Africa To be Asias leading high technology, ultra deep water offshore Marine services company To be a leading Indian high quality crude tanker operator

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Share Price
70 In Rupees

60
50 Price 40 30 20 10 0 31

March'07 50.7

March'08 60.99

March'09 54.11

March'10 54.48

March'11 54.61

Awards & Recognition


In April, 2006 Varun received Fastest Expanding

Indian Shipping Company award from National Maritime Day Celebrations Committee, Directorate General of Shipping, Government of India.
In

October, 2007 Mr.Yudhishthir D Khatau, Vice Chairman & Managing Director received Policy Maker of the Year award at the Sea Trade India Shipping Summit Awards 2007 ceremony, held at Mumbai, India.

In October, 2008 Varun received The Marine and

Offshore Services Award at the Seatrade Middle East & Indian Subcontinent Awards 2008 ceremony, held in Dubai.
In October, 2009 Varun received Training and Crewing
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Award at the 11th Lloyds List Asia Awards 2009 ceremony held at Singapore.

Corporate Social Responsibility


Objective: As a socially responsible corporate citizen, the

company continues to support a wide spectrum of community initiatives through NGOs as well as programmes for health, education and environment.

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