Istreet Network Ltd. · BSE:ISTRNETWK
Istreet Network — Investor Presentation (May 2015)
43 slides from Istreet Network's investor presentation, May 20, 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: Our 1st Step
Our 1st Step eCommerce Simplified
Slide 4: Business gaining Momentum
Business gaining Momentum No. of Transactions 18,938 Sale value (Rs. In Lac) 43 14,149 16 5,023 8 4 226 Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY15 Q2FY15 Q3FY15 Q4FY15 778 Network Partners The unique, out of the box concept of 535 iStreet Bazaar is generating tremendous interest and curiosity amongst custom
Slide 5: iStreet Bazaar – Performance
iStreet Bazaar – Performance* No. of Transactions– 38,336 GMV – Rs. 70.59 lacs No. of Transactions– 19,398 GMV – Rs. 27.41 lacs No. of Transactions– 5,249 GMV – Rs. 11.81 lacs No. of Transactions - 226 GMV – Rs. 3.83 lacs 1st Store 13 Stores 130 Stores 184 Stores 193 Stores 227 Stores 727 Stores 1,5
Slide 6: Our Journey
Our Journey eCommerce Simplified
Slide 7: 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 8: 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 9: Retail Landscape
Retail Landscape eCommerce Simplified
Slide 10: Evolution of Retail – Developed Countries
Evolution of Retail Developed Countries Digital Modern Retail Retail Retail eCommerce Simplified
Slide 11: Retail in India: 13-15% of GDP
Retail in India Indian Retail One of the major pillars 13~15% of GDP eCommerce Simplified
Slide 12: Retail in India: ~US$500bn
Retail in India Indian Retail ~US$500bn (Rs. 30 lacs crores) eCommerce Simplified
Slide 13: Retail in India
Retail in India Modern Retail eTailing 8% 0.4% Mom & Pops 91.6% eCommerce Simplified
Slide 14: 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 15: 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 16: 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 17: 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 18: 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 19: 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 20: 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 21: A Revolutionary concept
A Revolutionary concept eCommerce Simplified
Slide 22: 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 23: 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 24: iStreet Bazaar – a Physical Digital Amalgamation
iStreet Bazaar – a Physical Digital Amalgamation eCommerce Simplified
Slide 25: 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 Yo ur T ext Go es her e. Down load th is aw esome d i a g ra m. B r i n g y o u r Assisted Trust with p r e s
Slide 26: 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 27: Few Examples ..
Physical-Digital Convergence Few Examples .. eCommerce Simplified
Slide 28: 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 29: 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 30: Project so far …
Project so far … eCommerce Simplified
Slide 31: 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 32: Network Coverage
Network Coverage Rajasthan 474 Stores Gujarat 555 Stores Chattisgarh & MP 94 Stores Maharashtra (Western) 383 Stores 1,506 (as of 31st March, 2015) iStreet Bazaar Stores currently available to ~150mn population eCommerce Simplified
Slide 33: 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 34: 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 35: Team
istreet eCommerce Simplified
Slide 36: 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 37: Management Team
Management Team Rocky Braganza Over 19 years of work experience in Electronic Category across Online & Organized Retail AVP - Business MBA in e-Management Marketing he has worked with all stakeholders in Retail segments Bhanwar Singh Has over 9 years of work experience in Retail & eCommerce in
Slide 38: Management Team
Management Team Ratan Jain Qualified Chartered Accountant with over 12 years of experience Internal Audit Oversees and builds System Audits, Internal Audits, Management Audit besides setting up Professional processes and documents for Finance Department Shriram Shrikrishna Manager Category Ove
Slide 39: Financials
Financials eCommerce Simplified
Slide 40: Profit & Loss
Profit & Loss Particulars (Rs. Lacs) Mar-15 Mar-14 Mar-13 Mar-12 Pharmaceutical & Int. Total Revenue 94.9 74.1 51.7 19.7 business thru Job Work Pharmaceuticals --- 13.9 20.6 19.7 Digital & eCommerce Digital & eCommerce 94.9 60.2 31.1 ---- business Revenue • Up to FY14 - 3rd party Total Expenses 398.
Slide 41: Balance Sheet
Balance Sheet Particulars (Rs. Lacs) Mar-15 Mar-14 Mar-13 Mar-12 Shareholders Funds 491.8 466.4 472.8 98.0 Share Capital 801.0 795.0 795.0 435.0 Reserve & Surplus -363.1 -328.6 -322.2 -337.0 Money Received against warrants 53.9 - - - Current Liabilities 90.0 49.8 30.4 35.0 Trade Payables 14.4 1.4 0.
Slide 42: Future Outlook
Future Outlook FY16E FY17E Project Launched Jan-14 Population covered 35 - 40 crore 80 - 100 crore Vidarbha Maharashtra, Andhra Pradesh, Geographical coverage (may change Karnataka, Kerala, Rest of India depending upon various parameters) Punjab, Himachal Pradesh Stores 3,500 – 4,000 8,000-10,000 No
Slide 43: eCommerce Simplified – 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