Vakrangee Limited · NSE:VAKRANGEE
Vakrangee — Investor Presentation (January 2019)
67 slides from Vakrangee's investor presentation, Jan 25, 2019
Slide 1: Exchange covering letter
Vakrangee Vakrangee limited ~vakrangee Corporate House", Plot No. 93, Road No. 16. M.I.D.C. MarDI. Andheri (Eastl. MumbaHDD093. Maharashtra. w: www.vakrangee.in IL: .912228503412/ '9122 6776 5100 i'mm~ F: ' 9122285020171 (IN: L65990MH1990PLC056669 January 25, 201 9 To, Department of Corporate Re lat
Slide 2: Vakrangee Limited Corporate Presentation
THE ASSISTED DIGITAL CONVENIENCE STORE VAKRANGEE LIMITED CORPORATE PRESENTATION January 25, 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 Leadership Update 04 Strategy Update 11 Q3 & 9M FY2018-19 Results Update 19 Company Overview 21 Directors & Leadership Team 34 Annexures 39 Kendra Evolution 40 Branding & Marketing Campaign 55 3
Slide 5: Leadership Update
LEADERSHIP UPDATE 4
Slide 6: Leadership Update: Strengthening Team
LEADERSHIP UPDATE : STRENGTHING TEAM RATIONALE FOR STRENGTHING & ENHANCING THE LEADERSHIP TEAM To Enhance Management Bandwidth to drive the company for the 1 next phase of growth opportunity Focussed Effort to further enhance the Corporate Governance 2 standards Rick experience of ~150 man years wit
Slide 7: Leadership Update: Strengthening Team
LEADERSHIP UPDATE : STRENGTHING TEAM FOCUS TO STRENGTHEN MANAGEMENT BANDWIDTH & ENHANCE GOVERNANCE STANDARDS Mr. Anil Khanna has joined Vakrangee as Managing Director & Group CEO w.e.f. 25th January 2019. Prior to Vakrangee he has been at the position of Managing Director of Blue Dart Express Limite
Slide 8: Leadership Update: Strengthening Team
LEADERSHIP UPDATE : STRENGTHING TEAM FOCUS TO STRENGTHEN MANAGEMENT BANDWIDTH & ENHANCE GOVERNANCE STANDARDS Mr. Dinesh Nandwana has about 27+ years of business experience. He drives and oversees the overall business at Vakrangee since its inception in 1990. He is fully committed and would continue
Slide 9: Senior Team Added Over Last 12-18 Months
LEADERSHIP UPDATE : STRENGTHING TEAM SENIOR TEAM ADDED OVER LAST 12-18 MONTHS TO DRIVE NEXT PHASE OF GROWTH SANJEET MAHAJAN • Mr. Sanjeet Mahajan joined Vakrangee as Head – Financial & Other Services in October 2017. CEO – FINANCIAL He is responsible to build the Retail & SME Loans, Mutual Fund & Ot
Slide 10: Senior Team Added Over Last 12-18 Months
LEADERSHIP UPDATE : STRENGTHING TEAM SENIOR TEAM ADDED OVER LAST 12-18 MONTHS TO DRIVE NEXT PHASE OF GROWTH SAGAR • Mr. Sagar Kargutkar joined Vakrangee as Chief Marketing officer. He has a experience of 19 COMPANY OVERVIEW : LEADERSHIP UPDATE KARGUTKAR years in Consumer & Digital Marketing, Brand S
Slide 11: Senior Team Added Over Last 12-18 Months
LEADERSHIP UPDATE : STRENGTHING TEAM AVINASH • Mr. Avinash Sampagaonkar joined Vakrangee as Head CRM. He is a commerce graduate and a SAMPAGAONKA Masters in Business Administration specializing CRM & Operations. HEAD CRM • He possess vast experience of nearly 17 years in Business Operations entailin
Slide 12: Strategy Update
STRATEGY UPDATE 11
Slide 13: NextGen Upgradation Status
NEXTGEN UPGRADADATION STATUS UPGRADATION STATUS 3500 45000 15500 VAKRANGEE 15000 KENDRA OUTLETS 11000 Nextgen - Operational Nextgen - Ready for Upgrade Nextgen - Taken Extension to Decide Nextgen - Not Agree to Upgrade 12
Slide 14: Guidance on Opening of NextGen Outlets
GUIDANCE ON OPENING OF NEXTGEN OUTLETS 75000 NO OF NEXTGEN TO BE OPERATIONAL 45000 25000 20000 15000 8500 3500 95 Dec-18 Mar-19 Jun-19E Jun-19 Sep-19 Sep-19 E Dec-19 Dec-19E Mar-20 E Mar-21 E Mar-22 E • Currently there is a clear visibility of 15,000 incremental franchisees who have agreed to upgrad
Slide 15: Impact of Upgradation to NextGen
IMPACT OF UPGRADATION TO NEXTGEN NEXTGEN OUTLETS WILL LEAD TO BETTER BRAND VISIBILITY & ENHANCED PROFITABILITY Service Sales & Store Availability & Technology Profitability Exclusivity Consistent Features Impact Branding CCTVs And Digital Enhanced Revenue Signage for stream & Footfalls Enhanced Stor
Slide 16: Store Economics of a NextGen Kendra
STORE ECONOMICS OF A NEXTGEN KENDRA Avg. Revenue per Month NextGen Outlet Estimated Rs. 0.1 mn to 0.2 mn based on Rural and Revenue Per Store Urban Location* NextGen Outlet Estimated Ranging from 65:35 to 80:20 based on Commission Sharing Ratio Service Type Vakrangee Margins NextGen Outlet Estimated
Slide 17: Store Economics - MMR Case Study
STORE ECONOMICS - MMR CASESTUDY MMR NextGen outlets are currently only 3 months old. The below is the Average Data for the month of December 2018. As the stores mature, we expect the financials to significantly improve. Avg. No of Daily Transactions - ~70-75 transactions per day per ATM ATM Avg. Tot
Slide 18: Financial Guidance
FINANCIAL GUIDANCE • Revenue as well as Profitability has been • Financials to start improving from March quarter materially impacted as these outlets undergo onwards as more and more Next Gen outlets up-gradation process. become operational. • Further, Financials shall improve as the stores get mor
Slide 19: 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 Preliminary instance of any stock promoter & promoter Findings - No Irregularities manipulation by Promoter group with respect to price observed with respe
Slide 20: Q3 & 9M FY2018-19 Results Update
Q3 & 9M FY2018-19 RESULTS UPDATE 19
Slide 21: Consolidated Financial Statements
CONSOLIDATED FINANCIAL STATEMENTS Key Profit & Loss Statement Items Particulars (Rs. Mn.) Q3 FY2018-19 Q2 FY2018-19 QoQ % 9M FY2018-19 Total Income from Operations 1,186.6 3,200.6 (62.9) 14,663.1 Total Expenses 1,133.5 3,146.8 (64.0) 14,323.6 EBIDTA 73.7 72.1 2.2 396.8 Profit before Tax (PBT) 70.8 5
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 VAKRANGEE VITT VAKRANGEE NAGRIK VAKRANGEE BAZA
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 3,500+ 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 350+ 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 Click here – Potential Market Opportunity 75,535 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: 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 30: Franchisee Focused Team Structure
FRANCHISEE FOCUSED TEAM STRUCTURE Corporate Head Office Team State Operations State Marketing Head Head Continuous support Continuous support Field Operations to Franchisee to Field Sales Team to Franchisee to Team (Division and drive Operations (Division and District) drive Sales District) Block Ar
Slide 31: Strategic Tie Up with Indian Oil Corporation Limited
STRATEGIC TIE UP WITH INDIAN OIL CORPORATION LIMITED C • 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 Sta
Slide 32: White Label ATM - Opportunity
WHITE LABEL ATM – OPPORTUNITY ATM per Mn Population • India rank’s is 148 in the world in terms of ATM Density 2,423 • Low Penetration = Huge opportunity for WLAs 1,859 1,745 • As on March 2018, India had ~ 240,000 ATMs. It is 1,537 expected to cross 350,000 ATMs by 2020 in India. 1,338 1,076 1,076
Slide 33: 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 34: Awards and Certifications
AWARDS AND CERTIFICATIONS • CA Entrepreneur Path Breaker Award 2017 by Institute of Chartered Accountants of India • Selected in the Fortune 500 Companies – Fortune India 2017 • Selected in the Super 50 Companies – Forbes India 2017 • Selected in the Top 50 BSE 500 Companies by Growth in M-Cap - For
Slide 35: Directors & Leadership Team
DIRECTORS & LEADERSHIP TEAM 34
Slide 36: 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 37: 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 38: 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 39: 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 40: Annexures
ANNEXURES 39
Slide 41: Kendra Evolution
KENDRA EVOLUTION 40
Slide 42: 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 43: Kendra Evolution: Phase 1
KENDRA EVOLUTION PHASE 1: INITIALLY AN E-GOVERNANCE PLAYER 42
Slide 44: 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 45: Kendra Evolution: Phase 2
KENDRA EVOLUTION PHASE 2: E-GOVERNANCE PLAYER TO A BANKING BC POINT MODEL 44
Slide 46: 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 47: Kendra Evolution: Phase 3
KENDRA EVOLUTION PHASE 3: E-GOVERNANCE PLAYER TO MULTI SPECIALITY STORE MODEL 46
Slide 48: Kendra Evolution: Phase 4 NextGen Assisted Digital 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 49: 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 50: 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 51: NextGen Vakrangee Kendra: Gold Model
KENDRA EVOLUTION NEXTGEN VAKRANGEE KENDRA: GOLD MODEL 50
Slide 52: NextGen Vakrangee Kendra: Silver Model
KENDRA EVOLUTION NEXTGEN VAKRANGEE KENDRA: SILVER MODEL 51
Slide 53: NextGen Vakrangee Kendra: IOCL
KENDRA EVOLUTION NEXTGEN VAKRANGEE KENDRA: IOCL 52
Slide 54: NextGen Vakrangee Kendra
KENDRA EVOLUTION NEXTGEN VAKRANGEE KENDRA 53
Slide 55: NextGen Vakrangee Kendra
KENDRA EVOLUTION NEXTGEN VAKRANGEE KENDRA 54
Slide 56: Branding & Marketing Campaign
BRANDING & MARKETING CAMPAIGN 55
Slide 57: National Level Advertising - Print
NATIONAL LEVEL ADVERTISING - PRINT 56
Slide 58: National Level Advertising - Print
NATIONAL LEVEL ADVERTISING - PRINT 57
Slide 59: National Level Advertising - OOH
NATIONAL LEVEL ADVERTISING - OOH 58
Slide 60: National Level Advertising - OOH
NATIONAL LEVEL ADVERTISING - OOH 59
Slide 61: National Level Advertising - OOH
NATIONAL LEVEL ADVERTISING - OOH 60
Slide 62: National Level Advertising - OOH
NATIONAL LEVEL ADVERTISING - OOH 61
Slide 63: National Level Advertising - Localised
NATIONAL LEVEL ADVERTISING - LOCALISED 62
Slide 64: National Level Advertising - Localised
NATIONAL LEVEL ADVERTISING - LOCALISED 63
Slide 65: 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 66: NextGen Vakrangee Kendra Locator
NEXTGEN VAKRANGEE KENDRA LOCATOR NEXT-GEN VAKRANGEE KENDRA LOCATOR : NEXT-GEN VAKRANGEE KENDRA LOCATOR : MUMBAI METROPOLITAN REGION NATIONAL CAPITAL REGION MMR NEXT-GEN KENDRA LOCATOR – NCR NEXT-GEN KENDRA LOCATOR – CLICK HERE CLICK HERE NEXT-GEN VAKRANGEE KENDRA : LAUNCH VIDEO LINK MMR NEXT-GEN KEN
Slide 67: Thank You
Thank You 66