Slide 1: Exchange covering letter for Corporate Presentation
Vakrangee mTffi~ Vakrangee limited "Vakrangee Corporate House", Plot No. 93, Road No. 16, M.I.D,C. Maral, Andheri (East). Mumbai -400093. Maharashtra. W: wwwvakrangee.in I L: +912228503412/ +9122 6776 5100 F: +91 22 2850 2017 1[IN : L65990MH1990PLC056669 May 10, 2019 To, Department of Corporate Rela
Slide 2: Vakrangee Limited Corporate Presentation
THE ASSISTED DIGITAL CONVENIENCE STORE VAKRANGEE LIMITED CORPORATE PRESENTATION May 10, 2019
Slide 3: Disclaimer
DISCLAIMER This presentation has been prepared by Vakrangee Limited (“Vakrangee” or “VL” or the “Company”) solely for your information and for your use and may not be taken away, reproduced, redistributed or passed on, directly or indirectly, to any other person (whether within or outside your organ
Slide 4: Table of Contents
TABLE OF CONTENTS Performance Update 04 Update on Regulatory Compliances 13 Update on Awards & Recognition 16 Q4 & FY2018-19 Results Update 18 Company Overview 21 Directors & Leadership Team 35 Annexures 40 Kendra Evolution 41 Branding & Marketing Campaign 54 3
Slide 5: Performance Update
PERFORMANCE UPDATE 4
Slide 6: NextGen Outlets – Performance Scorecard
NEXTGEN OUTLETS – PERFORMANCE SCORECARD 3,504 ~Rs. 9.5 Billion No of NextGen Outlets Monthly Throughput on Vakrangee Operational Platform – Transaction Value (in Rs.) ~US$ 1.6 BN ~4 Million Annual Run Rate Throughput – Monthly No of Transactions on Transaction Value - basis Current NextGen Vakrangee
Slide 7: Target Estimates Planned on Mature Basis
TARGET ESTIMATES PLANNED ON MATURE BASIS Huge Upside Potential Opportunity on Maturity * 3,504 ~Rs. 25-30 Bn No of NextGen Outlets Avg. Monthly Throughput on Maturity – - On Maturity Transaction Value Estimate (in Rs.) ~US$ 4-5 BN ~10-12 Million Annual Run Rate Throughput – Monthly No of Transaction
Slide 8: NextGen Outlets – Performance Scorecard
NEXTGEN OUTLETS – PERFORMANCE SCORECARD NextGen outlets are currently only 3 months old. The below is the Average Data for the month of April 2019. As the stores mature, we expect the financials to significantly improve. Avg. No of Daily Transactions - ~40-50 transactions per day per ATM ATM Avg. To
Slide 9: NextGen Outlets – Service Activation Status
NEXTGEN OUTLETS – PERFORMANCE SCORECARD NEXTGEN OUTLETS – SERVICE ACTIVATION STATUS Service Activation Status at Service NextGen Outlets (%) Banking* 61% ATM 99% Insurance * 74% Financial Services Money Transfer 100% Home Loan ^ 42% Assisted E-Commerce Online Shopping (Amazon / Netmeds / Gold Jewell
Slide 10: Case Studies: NextGen Top Performers
CASE STUDIES : NEXTGEN TOP PERFORMERS ATM Services – Case study Banking Services – Case study • Franchisee Location – Tier IV • Franchisee Location – Tier IV • Monthly Franchisee Commission Income– • Monthly Franchisee Commission Income– INR. 85,824 INR. 66,454 • Number of Financial Transactions – 6
Slide 11: Case Studies: NextGen Top Performers
CASE STUDIES : NEXTGEN TOP PERFORMERS BBPS Services – Case study Netmeds Services – Case study • Franchisee Location – Tier III • Franchisee Location – Tier V • Monthly Franchisee Commission Income– • Monthly Franchisee Commission Income– INR. 22,669 INR. 17,190 • Gross Sale Value – INR. 1,28,240 •
Slide 12: Guidance on Opening of NextGen Outlets
GUIDANCE ON OPENING OF NEXTGEN OUTLETS 3,00,000 75,000 NO OF NEXTGEN OUTLETS 45,000 25,000 20,000 15,000 8,500 3,504 95 Dec-18 Mar-19 Jun-19 E Sep-19 E Dec-19 E Dec-19 Mar-20 Mar-20E Mar-21 E Mar-22 E Mar-25 E Planned Target is to have last Mile presence across All Postal codes covering each & every
Slide 13: NextGen Outlets – Key Employee Initiatives
NEXTGEN OUTLETS – KEY EMPLOYEE INITIATIVES Key Initiatives taken to enhance Employee Productivity Total Manpower Count - No of Employees • Hiring and further strengthening the field team to enhance the ground level reach and availability. 3500-4000 • Attractive Incentive schemes launched for employe
Slide 14: Update on Regulatory Compliances
UPDATE ON REGULATORY COMPLAINCES 13
Slide 15: Update on MCA Inspection
UPDATE ON MCA INSPECTION • The Company has received an update on the Inspection report from Ministry of Corporate Affairs (dated 2nd May, 2019) which clearly states that pursuant to Inspection of Books of Accounts of the company for the last three years there are no irregularities and there is no fu
Slide 16: Update on Compliance Related Matters
UPDATE ON COMPLIANCE RELATED MATTERS SEBI INVESTIGATION EOW INVESTIGATION MCA INSPECTION There were no findings or Clean chit given to Update on MCA Inspection instance of any stock promoter & promoter - No Irregularities & no manipulation by Promoter group with respect to price further action pendi
Slide 17: Update on Awards & Recognition
UPDATE ON AWARDS & RECOGNITION 16
Slide 18: Awards & Recognition
AWARDS & RECOGNITION Vakrangee makes history by setting GUINNESS Vakrangee has been awarded as the best WORLD RECORDSTM title for the Most stores ‘FINANCIAL SERVICES RETAILER OF THE YEAR’ at launched simultaneously on 14th January 2019 the Indian Retail Awards 2019. Launches 1107 Nextgen Vakra
Slide 19: Q4 & FY2018-19 Results Update
Q4 & FY2018-19 RESULTS UPDATE 18
Slide 20: Consolidated Financial Statements
CONSOLIDATED FINANCIAL STATEMENTS Key Profit & Loss Statement Items Particulars (Rs. Mn.) Q4 FY2018-19 Q3 FY2018-19 QoQ % FY2018-19 Total Income 1,218.8 1,186.6 2.7 15,882.0 Total Expenses 1,062.7 1,133.5 (6.2) 15386.3 EBIDTA 186.2 73.7 152.6 583.0 Profit before Tax (PBT) 156.1 70.8 120.5 513.4 Tax
Slide 21: Financial Guidance
FINANCIAL GUIDANCE • Revenue as well as Profitability has been • Financials to start improving from Current materially impacted as these outlets undergo quarter onwards as more and more Next Gen up-gradation process. outlets become operational. • Further, Financials shall improve as the stores get m
Slide 22: Company Overview
COMPANY OVERVIEW 21
Slide 23: NextGen Vakrangee Kendra – Scope of Services
NEXTGEN VAKRANGEE KENDRA – SCOPE OF SERVICES Vakrangee Kendra offers a broad spectrum of services across different sectors to offer a “One Stop Shop” solution for its customers 22
Slide 24: NextGen Vakrangee Kendra – Scope of Services
NEXTGEN VAKRANGEE KENDRA – SCOPE OF SERVICES Technology Intensive Retail Distribution Platform for last mile touch points delivering services across Banking & ATM, Insurance, e-Governance, e-Commerce and Logistic services to domains on a real-time basis BANKING INSURANCE E-GOVERNANCE E-COMMERCE LOGI
Slide 25: Key Business Alliances – Strong Reputed Partners
KEY BUSINESS ALLIANCES – STRONG REPUTED PARTNERS BANKING FINANCIAL SERVICES ATM (White Label ATM License) E-GOVERNANCE INSURANCE E-COMMERCE (For Mobile/DTH Recharge) LOGISTICS 24
Slide 26: NextGen Vakrangee Kendra – Our Presence
NEXTGEN VAKRANGEE KENDRA – OUR PRESENCE Sr. No State Name 3,504* OUTLETS 1 Bihar 2 Chandigarh 19 STATES 3 4 Chhattisgarh Delhi (NCR) 5 Goa 6 Gujarat 7 Haryana 8 Himachal Pradesh 9 Jharkhand 10 Karnataka 11 Kerala 12 Madhya Pradesh 13 Maharashtra 14 Odisha 15 Punjab 366 District Covered 16 Rajasthan
Slide 27: Huge Untapped Market: Overall Market Potential
HUGE UNTAPPED MARKET: OVERALL MARKET POTENTIAL POPULATION 1.21 BILLION TOTAL NO OF VILLAGES 6,54,424 TOTAL OUTLET POTENTIAL 3,69,977 RURAL OUTLET POTENTIAL 2,94,442 URBAN OUTLET POTENTIAL 75,535 Click here – Potential Market Opportunity 26
Slide 28: Advantage Vakrangee: Our Strengths
ADVANTAGE VAKRANGEE : OUR STRENGTHS Tie up with Technology & On Ground Field Size and Scale Strong Partners & Integration Presence till the with Strong Access to Key Expertise Block Level Franchisee Model Licenses • Over two decades of • Field Level Hierarchy System Integration till the Block level
Slide 29: Store Economics of a NextGen Kendra
STORE ECONOMICS OF A NEXTGEN KENDRA NextGen Outlet Estimated Avg. Revenue per Month Revenue Per Store Rs. 0.1 mn * NextGen Outlet Estimated Ranging from 65:35 to 80:20 based on Commission Sharing Ratio Service Type Vakrangee Margins NextGen Outlet Estimated Operational Gross Level – 18-20% Profit Ma
Slide 30: Our Proprietary Technology Platform
OUR PROPRIETARY TECHNOLOGY PLATFORM Technology Internet Connectivity • Technology platform integrated with CBS of • Seamless connectivity through V-SAT or Broadband Internet various banks, delivering real-time & interoperable banking access • Biometric authentication enabling quick KYC Security Spec
Slide 31: Franchisee Focused Team Structure
FRANCHISEE FOCUSED TEAM STRUCTURE Relationship Relationship Manager Corporate Head Office Team Manager Dedicated Dedicated support support State Operations State Marketing directly from directly from Head Office Head Head Head Office to franchisee to franchisee for all type of for all type of Operat
Slide 32: Strategic Tie Up with Indian Oil Corporation Limited
STRATEGIC TIE UP WITH INDIAN OIL CORPORATION LIMITED • Strategic tie-up with Indian Oil Corporation Limited (IOC), India's largest commercial enterprise for setting up Vakrangee Kendra at its retail outlets (distribution network). • To set up Vakrangee Kendra in IOC Retail Outlets (Filling/Gas Stati
Slide 33: White Label ATM – Opportunity
WHITE LABEL ATM – OPPORTUNITY • India rank’s is 148 in the world in terms of ATM Density ATM per Mn Population 2,423 • Low ATM Penetration in Tier 3, 4, 5 and 6 cities ~ Huge opportunity for WLAs to bridge the gap between Urban 1,859 1,745 and Rural India 1,537 1,338 • As on March 2019, India had ~
Slide 34: Logistics – Our Business Model
LOGISTICS – OUR BUSINESS MODEL VAKRANGEE LOGISTICS Front-end Point for Courier Last Mile Reverse Logistics Last Mile Delivery Services Booking Services Services • Courier Market-Place - leveraging • Market-Place Model for E- Vakrangee Kendra presence to • Market-Place Model for Reverse commerce Deli
Slide 35: Awards and Certifications
AWARDS AND CERTIFICATIONS • Guinness World Records Title for the Most Stores Launched Simultaneously on 14th January 2019. Launches 1107 Nextgen Vakrangee Kendra stores across the country at 11.07 am on the same day • Awarded as the best ‘Financial Services Retailer of the year’ at the Indian Retail
Slide 36: Directors & Leadership Team
DIRECTORS & LEADERSHIP TEAM 35
Slide 37: Independent / Nominee Directors on the Board
INDEPENDENT / NOMINEE DIRECTORS ON THE BOARD Strong Board of Directors RAMESH JOSHI • Has about 40+ years of business experience in the banking industry. Non Executive • Has worked with RBI for over three decades and a former ED of SEBI Independent Director • Holds a Bachelor’s degree in Arts from t
Slide 38: Leadership Team
LEADERSHIP TEAM STRONG MANAGEMENT TEAM IN PLACE TO DRIVE NEXT PHASE OF GROWTH ACROSS ALL BUSINESSES • Has about 27+ years of business experience. Main functions and areas of responsibilities in the Company include policy DINESH formulation and decision making. NANDWANA • Has received a memento from
Slide 39: Leadership Team
LEADERSHIP TEAM STRONG MANAGEMENT TEAM IN PLACE TO DRIVE NEXT PHASE OF GROWTH ACROSS ALL BUSINESSES • Mr. Sumit Jain joined Vakrangee as Sr. Vice President and is heading the eCommerce vertical. SUMIT JAIN • He joined Vakrangee Limited from Barclays. Prior to Barclays, he worked with Credit Suisse a
Slide 40: Leadership Team
LEADERSHIP TEAM STRONG MANAGEMENT TEAM IN PLACE TO DRIVE NEXT PHASE OF GROWTH ACROSS ALL BUSINESSES • Mr. Rahul Dev Pal an economics graduate with a rich experience of 26+ years in the field of sales and marketing. He RAHUL DEV PAL has an in-depth knowledge of the banking vertical & from the very be
Slide 41: Annexures
ANNEXURES 40
Slide 42: Kendra Evolution
KENDRA EVOLUTION 41
Slide 43: Kendra Evolution – Phase 1: E-Governance Player
KENDRA EVOLUTION PHASE 1: INITIALLY AN E-GOVERNANCE PLAYER PHASE 1: CSC & E-MITRA MODEL OUTLETS WERE PRIMARILY TERMED AS “COMMON SERVICE CENTRE - CSC” OR “E-MITRA KENDRA” :- • NON-EXCLUSIVE STORE MODEL • SINGLE LINE OF SERVICE PRIMARILY E-GOVERNENCE SERVICES • NO STANDARDIZED DESIGN LAYOUT & BRANDIN
Slide 44: Kendra Evolution – Phase 1
KENDRA EVOLUTION PHASE 1: INITIALLY AN E-GOVERNANCE PLAYER 43
Slide 45: Kendra Evolution – Phase 2: Banking BC Point Model
KENDRA EVOLUTION PHASE 2: E-GOVERNANCE PLAYER TO A BANKING BC POINT MODEL PHASE 2 : BANKING BC POINT MODEL COMPANY RECEIVED THE BUSINESS CORRESPONDENCE BANKING MANDATE AND STARTED THE BC POINT SERVICES THROUGH THE KENDRA – • NON-EXCLUSIVE • DUAL LINE OF SERVICE - E-GOVERNENCE & BANKING SERVICES • NO
Slide 46: Kendra Evolution – Phase 2
KENDRA EVOLUTION PHASE 2: E-GOVERNANCE PLAYER TO A BANKING BC POINT MODEL 45
Slide 47: Kendra Evolution – Phase 3: Multi Speciality Store Model
KENDRA EVOLUTION PHASE 3: E-GOVERNANCE PLAYER TO MULTI SPECIALITY STORE MODEL PHASE 3 : MULTI-SPECIALITY STORE MODEL EVOLVED INTO A MULTI SPECIALITY STORE MODEL :– • PLANNED AS AN EXCLUSIVE STORE MODEL • MULTI-LINE OF SERVICES – BANKING, E- GOVERNENCE, INSURANCE, E-COMMERCE & OPTIONAL ATM SERVICES •
Slide 48: Kendra Evolution – Phase 3
KENDRA EVOLUTION PHASE 3: E-GOVERNANCE PLAYER TO MULTI SPECIALITY STORE MODEL 47
Slide 49: Kendra Evolution – Phase 4: Exclusive NextGen Store
KENDRA EVOLUTION PHASE 4: E-GOVERNANCE PLAYER TO AN EXCLUSIVE NEXTGEN ASSISTED DIGITAL CONVENIENCE STORE PHASE 4 : NEXTGEN KENDRA MODEL – ASSISTED EVOLUTION INTO AN EXCLUSIVE ASSISTED DIGITAL CONVENIENCE STORE DIGITAL CONVENIENCE STORE MODEL – • EXCLUSIVE STORE MODEL • MULTI-LINE OF SERVICES – BANKI
Slide 50: NextGen Vakrangee Kendra: Silver and Gold Model
KENDRA EVOLUTION NEXTGEN VAKRANGEE KENDRA: SILVER AND GOLD MODEL Update on Nextgen Vakrangee Kendra Model:- • As the Bouquet of services have increased over the last few years , the viability of the kendra has increased on a standalone basis resulting into an Exclusive store format. • Key Mandatory
Slide 51: Kendra Evolution – Key Features
KENDRA EVOLUTION KEY FEATURES • Exclusive store model with same service level and same STORE EXCLUSIVITY & Customer experience CONSISTENT • Standardized layout & design by L&H (Lewis & Hickey) BRANDING • Uniform and Consistent Branding for Higher brand recall and visibility • ATM at each store and l
Slide 52: NextGen Vakrangee Kendra: Gold Model
KENDRA EVOLUTION NEXTGEN VAKRANGEE KENDRA: GOLD MODEL 51
Slide 53: NextGen Vakrangee Kendra: Silver Model
KENDRA EVOLUTION NEXTGEN VAKRANGEE KENDRA: SILVER MODEL 52
Slide 54: NextGen Vakrangee Kendra: IOCL
KENDRA EVOLUTION NEXTGEN VAKRANGEE KENDRA: IOCL 53
Slide 55: Branding & Marketing Campaign
BRANDING & MARKETING CAMPAIGN 54
Slide 56: National Level Advertising - Print
NATIONAL LEVEL ADVERTISING - PRINT 55
Slide 57: National Level Advertising - Print
NATIONAL LEVEL ADVERTISING - PRINT 56
Slide 58: National Level Advertising - OOH
NATIONAL LEVEL ADVERTISING - OOH 57
Slide 59: National Level Advertising - OOH
NATIONAL LEVEL ADVERTISING - OOH 58
Slide 60: National Level Advertising - Localised
NATIONAL LEVEL ADVERTISING - LOCALISED 59
Slide 61: National Level Advertising - Radio
NATIONAL LEVEL ADVERTISING - RADIO RADIO ADVERTISING AUDIO LINK RADIO AUDIO MARKETING CAMPAIGN – CLICK HERE RADIO AUDIO MARKETING CAMPAIGN – CLICK HERE RADIO AUDIO MARKETING CAMPAIGN – CLICK HERE RADIO AUDIO MARKETING CAMPAIGN – CLICK HERE RADIO AUDIO MARKETING CAMPAIGN – CLICK HERE RADIO AUDIO MARK
Slide 62: NextGen Vakrangee Kendra Locator
NEXTGEN VAKRANGEE KENDRA LOCATOR NEXT-GEN VAKRANGEE KENDRA LOCATOR NEXT-GEN KENDRA LOCATOR – CLICK HERE NEXT-GEN VAKRANGEE KENDRA : VIDEO LINK NEXT-GEN KENDRA VIDEO – CLICK HERE 61
Slide 63: Thank You
Thank You 62