Istreet Network Ltd. · BSE:ISTRNETWK
Istreet Network — Investor Presentation (February 2015)
40 slides from Istreet Network's investor presentation, Feb 24, 2015
Slide 1: Investor Presentation - eCommerce Simplified
istreet BAZAAR” 4b ke lige Investor Presentation iStreet Network Limited eCommerce Simplified
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which has been prepared by iStreet Network Limited (the “Company”), solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not
Slide 3: Group Evolution
Group Evolution YEAR 2012 YEAR 2001-08 Comes Out of Financial Sickness & sets up Digital & eCommerce API & Intermediate business runs division; Fully exited API & into rough weather and company Intermediate Business turns sick; Continues with Job Work YEAR 1995 Sets up GMP standard API & Intermediat
Slide 4: Digital & eCommerce
Digital & eCommerce YEAR 2011 Pioneered flash sales to ship Managed India’s largest online 4,000-6,000 items a day on eBay auction for IPL 2011 involving BCCI & Volkswagen YEAR 2008 Evolved the eBay "Trading Assistant" model. Delivered eCommerce to 100s of brands under this model till date YEAR 2014
Slide 5: Retail Landscape
Retail Landscape eCommerce Simplified
Slide 6: Evolution of Retail - Developed Countries
Evolution of Retail Developed Countries Digital Modern Retail Retail Retail eCommerce Simplified
Slide 7: Retail in India: 13-15% of GDP
Retail in India Indian Retail One of the major pillars 13~15% of GDP eCommerce Simplified
Slide 8: Indian Retail ~US$500bn
Retail in India Indian Retail ~US$500bn (Rs. 30 lacs crores) eCommerce Simplified
Slide 9: Retail in India
Retail in India Modern Retail eTailing 8% 0.4% Mom & Pops 91.6% eCommerce Simplified
Slide 10: India Retail – an overview
India Retail – an overview +82.7% 85.0% Retail Market Size (USD Bn) Organized Retail Penetration 950 520 40.0% 30.0% 20.0% 8.0% India China Indonesia Thailand USA 2013 2018E Organized Retail 8.0% Revenue Share in Retail 6.0% 3.0% Food & Grocery - 60% 11.0% 4.0% Apparel – 8%, Category Mobile & Techno
Slide 11: Evolution of Retail - India
Evolution of Retail - India India • Indian Retail Segment - Mom & Pops Stores, which are traditional family owned store, 96% of which is less than 500 sq. Feet • Modern Retail though expected to be replace mom & pop stores, struggles to expand its share • eTailing started growing since 2010, current
Slide 12: Moms and Pop Stores - the King without Crown
Moms and Pop Stores - the King without Crown Convenient 14 million Neighbourhood stores Store Driven by trust & Quick response Low operational cost 14 million Mom and Pop Stores in India are consumers’ most trusted point of buying But ... have limited product offering eCommerce Simplified
Slide 13: Common Man buys from 'Mom & Pop' store
Common Man of India Common Man buys from ‘Mom & Pop’ store Common Man popular image created by Late Shri R.K. Laxman. The same is used here just as a symbol and is not our property. eCommerce Simplified
Slide 14: Who is the Common Man of India
Who is the Common Man of India Common Man may be any person living in Urban, Tier 2, Tier 3 cities including Villages & towns Common Man has aspirations and hopes Common Man is a follower rather than creator or believer Is 95% of Population of India who have yet not been touched by eCommerce
Slide 15: Adoption of new formats of Retail
Adoption of new formats of Retail Common Man far away from • Modern Retail • Digital Retail Common Man popular image created by Late Shri R.K. Laxman. The same is used here just as a symbol and is not our property. eCommerce Simplified
Slide 16: Why he has not moved beyond Mom & Pop
Why he has not moved beyond Mom & Pop Very low per capita Modern Retail space 95% of Population in India LFR – Perceived as Stores for select FEWs i.e. Common Man Has Limited access to plastic monies Mom & Pop Consumer Is E-illiterate Does not have internet connectivity Prefers human interaction whi
Slide 17: A Revolutionary concept
A Revolutionary concept eCommerce Simplified
Slide 18: iStreet Bazaar is an Internet Retail Store
iStreet Bazaar is an Internet Retail Store in a neighborhood where a common man can buy products, ONLINE (with assistance) eCommerce Simplified
Slide 19: Changing the Retail landscape of India
Digital Retail – driven by Mom & Pop – Technology convenient Stores Modern Retail – large offering / choice Changing the Retail landscape of India with a unique India centric approach eCommerce Simplified
Slide 20: iStreet Bazaar – a Physical Digital Amalgamation
iStreet Bazaar – a Physical Digital Amalgamation eCommerce Simplified
Slide 21: iStreet Bazaar - Unique proposition
iStreet Bazaar - Unique proposition Facilitating Enhanced Shopping Experience Neighborhood Store Competitive Pricing Single stop for Hassle free & multiple type highly of products convenient Your Text Goes here. Download this awesome d iagram. Bri ng yo ur Assisted Trust with presentat io n to life
Slide 22: Win-Win for all stakeholders
Win-Win for all stakeholders Access to Global & Local Brands Business with high return on Investment at attractive prices Network Partners Customers Brands Opportunity to cater to 95% of the untapped population of India • Low Investment in setting up store • Creation of Brand equity via deeper • Qua
Slide 23: Physical-Digital Convergence: Few Examples
Physical-Digital Convergence Few Examples .. eCommerce Simplified
Slide 24: India examples
India examples IRCTC – Assisted eCommerce www.irctc.co.in is a Government website used ~24% of overall gross value of tickets purchased is for booking tickets for Indian Railways via agents, assisted eCommerce Portal charges a fee on every ticket booked Provided immense time saving for passe
Slide 25: Global examples
Global examples Commonwealth Bank of Australia CBA) Launched a program to revamp branch network to improve convenience and service levels Project produced an impressive succession of DIGICAL (Digital + Physical) innovations Project Finest Online modernized CBA’s Internet Banking Service and co
Slide 26: Project so far …
Project so far … eCommerce Simplified
Slide 27: Common Man of India - Rathodi Village pilot
Common Man of India Rathodi Village, Malad (W), Mumbai Conducted a pilot program in Rathodi Village, Malad (W) in June, 2012 Rathodi Village in Malad (W) is about 40kms from Mumbai Main and 2kms away from Malad which is a hub for BPO, KPO and large IT companies. Target – to test the market and
Slide 28: Network Coverage
Network Coverage Since 188 20 mn Rajasthan Dec’14 store people Launched 494 50 mn Gujarat in Jan’ 14 store people Maharashtra 30 mn Since Oct’14 319 store (Western) people Madhya Chhattisgarh Goa In Progress ... Pradesh 1,001 (as of 31st Jan, 2015) iStreet Bazaar Stores currently available to ~100mn
Slide 29: Performance Statistics
Performance Statistics The unique, out of the box concept of iStreet Bazaar is generating tremendous interest and curiosity amongst customers thereby enticing small entrepreneurs to latch on to the model of iStreet Bazaar leading to growth in Volumes eCommerce Simplified
Slide 30: iStreet Bazaar – Product Portfolio
iStreet Bazaar – Product Portfolio Mobiles Computers Existing Category Accessories Home Appliances Focus on Men's & Fashion & Include products such as Pipeline Apparels Women wear Wallets, Bags, Sunglasses, categories Lifestyle Wrist Watches Thousands of products under 11 categories & 55 sub cat
Slide 31: International Recognition in Dublin, Ireland
International Recognition in Dublin, Ireland Received overwhelming response at the Web Summit 2014 held in Dublin, Ireland eCommerce Simplified
Slide 32: Team
istreet eCommerce Simplified
Slide 33: Promoter Group
Promoter Group Pradeep Malu : Founder and Managing Director • Chartered Accountant by qualification • An eCommerce professional since late 90’s and has set new rules for business growth using eCommerce • Conceptualized and executed large number of eCommerce projects in B2C, B2B and C2C space Lakshya
Slide 34: Management Team
Management Team Bhanwar Singh Has over 9 years of work experience in Retail & eCommerce industry Sales & Operations Responsible for expanding Network, Business Development, Sales & Operations Navin Rane Has over a decade of expertise managing core HR functions Human Resources Responsible for
Slide 35: Financials
Financials eCommerce Simplified
Slide 36: iStreet Bazaar – Performance
iStreet Bazaar – Performance* 1st Store 13 Stores 130 Stores 184 Stores 193 Stores 227 Stores 727 Stores 1,001 Stores Launched Jan’14 Feb’14 Jun’14 Aug’ 14 Sep’14 Oct’ 14 Dec’ 14 Jan’ 15 Items Sold – 19,398 GMV – Rs. 27.41 lacs Items Sold – 12,604 Items Sold - 507 GMV – Rs. 20.59 lacs GMV – Rs. 7.83
Slide 37: Profit & Loss
Profit & Loss Particulars (Rs. Lacs) 9M FY15 Mar-14 Mar-13 Mar-12 Pharmaceutical & Int. Total Revenue 43.3 74.1 51.7 19.7 business thru Job Work Pharmaceuticals --- 13.9 20.6 19.7 Digital & eCommerce Digital & eCommerce 43.3 60.2 31.1 ---- business Revenue • Up to FY14 - 3rd party Total Expenses 166
Slide 38: Balance Sheet
Balance Sheet Particulars (Rs. Lacs) Sep-14 Mar-14 Mar-13 Mar-12 Shareholders Funds 644.6 466.4 472.8 98.0 Share Capital 795.0 795.0 795.0 435.0 Reserve & Surplus -150.4 -328.6 -322.2 -337.0 Current Liabilities 55.8 49.8 30.4 35.0 Trade Payables 2.6 1.4 0.2 0.0 Other Current Liabilities 53.2 48.4 30
Slide 39: Future Outlook
Future Outlook FY 14-15E FY 15- 16E FY 16- 17E Project Launched Jan-14 Population covered 110 - 150 mn 350 - 400 mn 800 – 1,000 mn Vidarbha Gujarat, Maharashtra, Maharashtra (west), Geographical coverage (may change Andhra Pradesh, Rajasthan, Madhya Rest of India depending upon various parameters) K
Slide 40: For further information, please contact
For further information, please contact Company : Investor Relations Advisors : iStreet Network Ltd. Strategic Growth Advisors Pvt. Ltd. CIN - L51900MH1986PLC040232 CIN - U74140MH2010PTC204285 Mrs. Ruchi Seksaria, Company Secretary Mr. Shogun Jain/Mr. Kevin Shah ruchi@istreetnetwork.com jshogun@sgap
iStreet Network — Investor Presentation (February 2015) on 6ix