Vakrangee Limited · NSE:VAKRANGEE
Vakrangee — Investor Presentation (April 2022)
45 slides from Vakrangee's investor presentation, Apr 22, 2022
Slide 1: Intimation letter to stock exchanges
Vakrangee M Vakrangee limited "Vakrangee Corporate House Plot No 93. , Road No 16, MID C Maral. Andherl (East), Mumbal 400093, Maharashtra W wwwvakrangee.1O L ·912228503412 ·912267765100 iWffi~ F +9122285020171 CIN L65990MH1990PLC056669 April 22, 2022 . To, Department of Corporate Relationship Corpo
Slide 2: Vakrangee Limited Corporate Presentation
THE ASSISTED DIGITAL CONVENIENCE STORE “GO TO MARKET PLATFORM” : BUILDING INDIA’S LARGEST LAST MILE DISTRIBUTION PLATFORM VAKRANGEE LIMITED CORPORATE PRESENTATION
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 Company Overview 04 Strategy 2.0 : Our next 5 year growth plan 19 Demerger Update 22 Update on Sustainability ESG Initiatives 26 Update on Awards & Recognition 30 Results Performance Update 32 Board of Directors Team 39 Annexure : Kendra Evolution 42 3
Slide 5: Company Overview
Vakrangee / ’ COMPANY OVERVIEW
Slide 6: NextGen Vakrangee Kendra – Scope of Services
NEXTGEN VAKRANGEE KENDRA – SCOPE OF SERVICES Banking , ATM & Insurance Financial Services / Fintech E-Commerce / Online Travel Tele Medicine / Pharmacy PAN INDIA PRESENCE : • > 80% IN TIER 4-6 LOCATIONS PHYSICAL + DIGITAL • 5,430+ POSTAL CODES ECO-SYSTEM • 560+ DISTRICTS “GO TO MARKET PLATFORM” : BU
Slide 7: Scope of Services: BFSI & ATM Services
NEXTGEN VAKRANGEE KENDRA – SCOPE OF SERVICES BFSI & ATM SERVICES • ATM Cash Withdrawal • Non-Financial Transactions (White Label ATM License) • Opening of Online Demat & Trading Account • Money Transfer • Lead Generations of Personal / Home / Business Loans • Pan Card Service • CIBIL Score service •
Slide 8: Scope of Services: Assisted E-Commerce Services
NEXTGEN VAKRANGEE KENDRA – SCOPE OF SERVICES ASSISTED E-COMMERCE SERVICES • Online Shopping of Goods • Online Shopping of Jewellery • Telemedicine services • Online Shopping of Medicines • Mobile/DTH Recharge • Bill Payments • E-Mitra services in Rajasthan (Only for Rajasthan) • Train Ticket Booking
Slide 9: E-Commerce Marketing Initiatives
E-COMMERCE MARKETING INITIATIVES Link to the Co-Branded Advertisement Campaign - Amazon & Vakrangee : https://www.youtube.com/watch?v=MPtZ_c62 Odg https://www.youtube.com/watch?v=- AJarKHI94c 8
Slide 10: Formats of NextGen Vakrangee Kendra
FORMATS OF NEXTGEN VAKRANGEE KENDRA NEXTGEN VAKRANGEE KENDRA: GOLD, SILVER AND BRONZE 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 sto
Slide 11: Key Features – NextGen Vakrangee Kendra
KEY FEATURES – NEXTGEN VAKRANGEE KENDRA 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 •
Slide 12: NextGen Vakrangee Kendra Model
NEXTGEN VAKRANGEE KENDRA MODEL 11
Slide 13: NextGen Vakrangee Kendra Model
NEXTGEN VAKRANGEE KENDRA MODEL 12
Slide 14: Huge Untapped Market: Overall Market Potential
HUGE UNTAPPED MARKET: OVERALL MARKET POTENTIAL POPULATION 1.35 BILLION POLLING STATIONS 1 MILLION TOTAL NO OF VILLAGES 6,62,986 TOTAL NO OF GRAM PANCHAYAT 2,53,268 TOTAL NO OF URBAN WARDS 75,535 TOTAL OUTLET POTENTIAL 3,28,803 13
Slide 15: 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 16: Our Proprietary Technology Platform
OUR PROPRIETARY TECHNOLOGY PLATFORM SERVICES PROVIDED THROUGH REAL-TIME INTEGRATION WITH PARTNER SYSTEMS BANK – CORE BANKING SERVER ALL PARTNER SYSTEM (e-Commerce, e-Governance, Insurance, Financial Services & Logistics) Customer Vakrangee Kendra Internet Vakrangee Management System Connectivity Ken
Slide 17: White Label ATM – Opportunity
WHITE LABEL ATM – OPPORTUNITY • India ranks low in the world in terms of ATM Density. We have ATM density of 210 ATMs per Million whereas developed countries like Canada have 2,141 ATMs per Million. • Low ATM Penetration in Tier 3, 4, 5 and 6 cities creates Huge opportunity for WLAs to bridge the ga
Slide 18: Launch of Mobile Super App Update
LAUNCH OF MOBILE SUPER APP UPDATE • Vakrangee has recently launched an online digital platform to enable seamless services for the consumer at the comfort of their homes. Through this, company has evolved into the unique O2O (Online to Offline) platform, whereby there is Assistance available through
Slide 19: Business Model: Our Unique Offering
BUSINESS MODEL : OUR UNIQUE OFFERING Customer Strong Value Proposition • All in One Super App Platform • Access to Physical Store network - Trust & Comfort for Customers especially in Rural India Unique Convenience Features : Leveraging the Vakrangee Eco-System • Store Pick Up Facility • Pay at Stor
Slide 20: Strategy 2.0: Our Next 5 Year Growth Plan
STRATEGY 2.0: VAKRANGEE’S PHYSICAL NETWORK PLATFORM – OUR NEXT 5 YEAR GROWTH PLAN 19
Slide 21: Core Business Physical Network 5-Year Growth Strategy
Vakrangee y VAKRANGEE CORE BUSINESS - PHYSICAL NETWORK 5-YEAR GROWTH STRATEGY : (FY21-22 TILL FY25-26) BANKLOGO om } E Vakrangee 2.0 FY 2025-26 E NO. OF ANNUAL TRANSACTION FY 2025-26 E STRONG FINANCIAL GROWTH TAKE RATE (Revenue COMM %) : ~1.2-1.5% PAT MARGIN % : 10%-12% TARGET CASH ADJUSTED ROE: 35%
Slide 22: Focussed to Build Pan-India Presence Covering 100% Postal Codes
FOCUSSED TO BUILD PAN-INDIA FY 2025-26 PRESENCE COVERING 100% POSTAL CODES - 75,000+ Outlets - 19,000 + - 36 States / UTs Postal codes - 740 + Districts - ~70% Tier V & VI Q3 FY 2021-22 - 19,230+ Outlets - 33 States / UTs - 560+ Districts With Exclusive Branded Format Stores, - 5,430+ Postal codes C
Slide 23: Demerger Update
Vakrangee / ’ DEMERGER UPDATE
Slide 24: Demerger Update
DEMERGER UPDATE • As on June 19, 2021 the Board of Directors of Vakrangee Limited had approved Demerger of its digital Division. • However, The Board of Directors have now after due deliberations and detailed discussions, taking into consideration the best interest of all its stakeholders, have fina
Slide 25: Proposed Demerger Structure
PROPOSED DEMERGER STRUCTURE PRE-DEMERGER 1 2 POST- VL E-GOVERNANCE & IT VAKRANGEE LIMITED – SOLUTIONS BUSINESS DEMERGER CURRENT LISTED ENTITY DIVISION – TO BE LISTED ARRANGEMENT TO INCLUDE :- TO INCLUDE :- • VAKRANGEE KENDRA POST- • E-GOVERNANCE BUSINESS BUSINESS (PHYSICAL DEMERGER • IT/ITES BUSINES
Slide 26: Vakrangee Kendra Business – Post Demerger
VAKRANGEE KENDRA BUSINESS – POST DEMERGER POST DEMERGER : VAKRANGEE LIMITED TO EMERGE AS PURE RETAIL CONSUMER CENTRIC BUSINESS RETAIL CONSUMER STRONG RURAL BRAND UNIQUE PHYSICAL + CENTRIC BUSINESS PRESENCE DIGITAL PLATFORM SCALABLE FRANCHISEE DEBT FREE BALANCE ASSET LIGHT MODEL LED MODEL SHEET HIGH
Slide 27: Update on Sustainability ESG Initiatives
UPDATE ON SUSTAINABILITY ESG INITIATIVES 26
Slide 28: Sustainability ESG Performance Update: Top ESG Performer 2022
SUSTAINABILITY ESG PERFORMANCE UPDATE VAKRANGEE RECOGNIZED AS A TOP ESG PERFORMER IN 2022 • Vakrangee Limited has been identified as a top ESG performer out of more than 4,000 comprehensive companies that Sustainalytics cover in the global universe. • In 2022, Vakrangee has been recognized by Sustai
Slide 29: Key Initiatives: Sustainability Impact & ESG
KEY INITIATIVES : SUSTAINABILITY IMPACT & ESG Being Responsible • Being one of the largest franchisee-based, multi-service retail network, Vakrangee is focused on creating India’s extensive network of last-mile retail outlets at every & Social Conscious postal code in the country, enabling Indians t
Slide 30: Sustainability ESG Performance Update
SUSTAINABILITY ESG PERFORMANCE UPDATE Global recognition reflects company’s commitment to further enhance its corporate governance and transparency standards. Company has achieved Global recognition across various platforms for its superior ESG performance and long term Business sustainability. Comp
Slide 31: Update on Awards & Recognition
UPDATE ON AWARDS & RECOGNITION 30
Slide 32: Awards & Recognition
AWARDS & RECOGNITION Vakrangee makes history by Vakrangee has been ranked Vakrangee has been Vakrangee has been awarded setting GUINNESS WORLD amongst Top 100 Franchise awarded as the best ESG India Leadership Award RECORDSTM title for the Most Opportunities for the year ‘FINANCIAL SERVICES
Slide 33: Results Performance Update
RESULTS PERFORMANCE UPDATE 32
Slide 34: Results Performance Update – Q3 FY2021-22 Key Highlights
RESULTS PERFORMANCE UPDATE Key Highlights – Q3 FY2021-22 (Y-o-Y Basis) REVENUE FROM OPERATIONS EBITDA PROFIT AFTER TAX (PAT) In Rs Mn 433.6 2086.7 293.3 250.9 168.0 743.6 180.6% 72.8% 74.6% Q3 FY2020-21 Q3 FY2021-22 Q3 FY2020-21 Q3 FY2021-22 Q3 FY2020-21 Q3 FY2021-22 Sale Revenue & Profitability Gro
Slide 35: Results Performance Update: Revenue and PAT Trend
RESULTS PERFORMANCE UPDATE REVENUE FROM OPERATIONS PROFIT AFTER TAX (PAT) In Rs Mn 2071.9 2086.7 293.3 267.4 1540.2 233.3 207.9 168.0 1018.5 743.6 Q3FY2020-21 Q4FY2020-21 Q1FY2021-22 Q2FY2021-22 Q3FY2021-22 Q3FY2020-21 Q4FY2020-21 Q1FY2021-22 Q2FY2021-22 Q3FY2021-22 Returning to Pre-Covid Growth Pat
Slide 36: Vakrangee Kendra Outlets – Performance Update
VAKRANGEE KENDRA OUTLETS – PERFORMANCE UPDATE PERFORMANCE UPDATE FOR QUARTER ENDED DECEMBER, 2021 ~Rs. 125.5 Bn ~34.1 Mn Quarterly Throughput on Vakrangee Quarterly No. of Transactions on Platform – Q3 FY22 Transaction Value Vakrangee Platform – Q3 FY22 19,230+ ~US$6.7 Bn No. of Outlets currently An
Slide 37: Q3 FY2021-22 GMV / Throughput Contribution
VAKRANGEE KENDRA OUTLETS – PERFORMANCE UPDATE Q3 FY2021-22 - GMV / THROUGHPUT CONTRIBUTION (RS. MN.) Margin Profile % * E-Commerce 1,793 2 - 15% ATM 30,775 Rs. 17/ Fin Txn BFSI 92,940 0.25 - 0.40% • BFSI and ATM services witnessed robust QoQ as well as YoY growth as we get back to pre-covid growth p
Slide 38: Case Studies: NextGen Top Performers
CASE STUDIES : NEXTGEN TOP PERFORMERS Franchisee - SHUBHAM KULKARNI Number of Accounts Opened - 91 SHUBHAM from a Tier-3 location of Maharashtra KULKARNI have Earned `88,373 in just month Total Transaction Value - from BFSI Services `4,86,12,050 Number of Financial Transaction - ABDUL Franchisee – A
Slide 39: Consolidated Financial Statements
CONSOLIDATED FINANCIAL STATEMENTS Key Profit & Loss Statement Items Particulars (Rs. Mn.) Q3 FY2021-22 Q3 FY2020-21 YoY% Q2 FY2021-22 9M FY2021-22 Revenue from Operations 2,086.7 743.6 180.6 2,071.9 5,698.8 Total Expenses 1,698.8 711.8 138.7 1,723.8 4,671.5 EBIDTA 433.6 250.9 72.8 392.0 1,166.4 Prof
Slide 40: Board of Directors Team
Vakrangee BOARD OF DIRECTORS TEAM
Slide 41: Board of Directors
BOARD OF DIRECTORS Strong Board of Directors • Has about 40+ years of business experience. He has held several leadership positions in the Reserve Bank of RAMESH JOSHI India and has been Nominee Director on behalf of RBI on the Boards of Various Banks, and retired as an Non Executive Executive Direc
Slide 42: Board of Directors
BOARD OF DIRECTORS Strong Board of Directors AVINASH VYAS • Has wide experience in Audit Certification for externally aided projects funded by foreign agencies such as World Non Executive Bank and its extended arms Independent Director • Holds a Bachelor’s Degree in Commerce and is LL.B (professiona
Slide 43: Annexure: Kendra Evolution
ANNEXURE : KENDRA EVOLUTION 42
Slide 44: Kendra Evolution
KENDRA EVOLUTION PHASE 1: INITIALLY AN E- PHASE 2: EVOLVED TO A PHASE 3: EVOLVED TO MULTI PHASE 4: EXCLUSIVE NEXTGEN GOVERNANCE PLAYER BANKING BC POINT MODEL SPECIALITY STORE MODEL DIGITAL CONVENIENCE STORE PHASE 1: CSC & E-MITRA PHASE 4 : NEXTGEN KENDRA PHASE 2 : BANKING BC PHASE 3 : MULTI-SPECIALI
Slide 45: Thank You
Vakrangee / ’ Thank You