Slide 1: Exchange filing cover letter
Vakrangee iWm rr!k?far Vakrangee Limited "Vakrangee Corporate House". Plot No. 93. Road No. 16. M.l.D.C. Marai. Andheri (East). Mumbai·400093. Maharashtra. W: www.vakrangee.in I L: +912228503412/ +9122 6776 5100 F: +91 22 2850 20171 CIN: L65990MHI990PLC056669 August 13, 2019 To, Department of Corpor
Slide 2: Vakrangee Limited Corporate Presentation
THE ASSISTED DIGITAL CONVENIENCE STORE VAKRANGEE LIMITED CORPORATE PRESENTATION August 13, 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 Key Highlights - Nextgen Outlets 04 Performance Update 09 Q1 FY2019-20 Results Update 14 Company Overview 17 Update on Regulatory Compliances 28 Update on Awards & Recognition 30 Directors & Leadership Team 33 Annexures 36 Kendra Evolution 37 Branding & Marketing Campaign 49 3
Slide 5: Key Highlights
KEY HIGHLIGHTS 4
Slide 6: Key Highlights - NextGen Outlets
KEY HIGHLIGHTS - NEXTGEN OUTLETS 5,000+ • ACHIEVED PLANNED TARGET OF 5,000 INCREMENTAL NEXTGEN VAKRANGEE KENDRA. TOTAL NUMBER OF NEXTGEN VAKRANGEE KENDRA CURRENTLY STANDS AT 8,500+ OUTLETS. • ENHANCED THE PRESENCE ACROSS KEY STATES SUCH AS JAMMU & KASHMIR, ANDHRA PRADESH, TELANGANA & TAMIL NADU. • W
Slide 7: Clear Visibility of NextGen Outlets
KEY HIGHLIGHTS - NEXTGEN OUTLETS VISIBILITY ON OPENING OF NEXTGEN OUTLETS Total Number of Total Number of Formal Enquiries : Qualified 67,000+ Applications Clear currently under process: Visibility of The above includes 11,000+ 25,000 existing Old Format NextGen outlet interest as The above excludes
Slide 8: Guidance on Opening of NextGen Outlets
KEY HIGHLIGHTS - NEXTGEN OUTLETS GUIDANCE ON OPENING OF NEXTGEN OUTLETS 3,00,000 75,000 NO OF NEXTGEN OUTLETS 45,000 25,000 8,500* 3,504 95 Dec-18 Mar-19 Jun-19 Mar-20 E Mar-21 E Mar-22 E Mar-25 E Note: * 3,504 Live outlets 5,000+ outlets under activation Planned Target is to have last Mile presence
Slide 9: Well Poised for Strong Growth
KEY HIGHLIGHTS - NEXTGEN OUTLETS Debt Free Balance sheet & Zero Promoter Pledge Strong Attractive Senior Asset Light Mgmt. team WELL Franchisee in Place POISED FOR Model STRONG GROWTH Highly All Scalable Regulatory with Strong Compliances Operating in Place Leverage 8
Slide 10: Performance Update
PERFORMANCE UPDATE 9
Slide 11: NextGen Outlets - Performance Scorecard
NEXTGEN OUTLETS – PERFORMANCE SCORECARD 8,500+ ~Rs. 32.1 Bn No. of NextGen Outlets - 3,504 Live Quarterly Throughput on Vakrangee outlets & 5,000+ outlets under activation Platform – Transaction Value (in Rs.) ~US$ 1.8 Bn ~12 Mn Annual Run Rate Throughput – Quarterly No. of Transactions on Transacti
Slide 12: NextGen Outlets - Performance Scorecard
NEXTGEN OUTLETS – PERFORMANCE SCORECARD NextGen Live outlets are currently only 6 months old. The below is the Average Data for the month of June 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 Av
Slide 13: Case Studies: NextGen Top Performers
CASE STUDIES : NEXTGEN TOP PERFORMERS ATM Services – Case study Banking Services – Case study • Franchisee Location – Tier VI • Monthly Franchisee Commission Income– • Franchisee Location – Tier VI INR. 91,310 • Monthly Franchisee Commission Income– • Number of Financial Transactions – 8,099 INR. 71
Slide 14: Case Studies: NextGen Top Performers
CASE STUDIES : NEXTGEN TOP PERFORMERS BBPS Services – Case study Jio Services – Case study • Franchisee Location – Tier I • Franchisee Location – Tier V • Monthly Franchisee Commission Income– • Monthly Franchisee Commission Income– INR. 16,618 INR. 11,785 • Gross Sale Value – INR. 3,01,477 • Number
Slide 15: Q1 FY2019-20 Results Update
Q1 FY2019-20 RESULTS UPDATE 14
Slide 16: Consolidated Financial Statements
CONSOLIDATED FINANCIAL STATEMENTS Key Profit & Loss Statement Items Particulars (Rs. Mn.) Q1FY2019-20 Q4FY2018-19 QoQ % FY2018-19 Revenue from Operations 1,267.8 1,014.6 24.9 15,882.0 Total Expenses 1,315.4 1,062.7 23.8 15386.3 EBIDTA 192.6 186.2 3.4 583.0 Profit before Tax (PBT) 157.6 156.1 1.0 513
Slide 17: Financial Guidance
FINANCIAL GUIDANCE • Revenue as well as Profitability has been • Financials have started 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 g
Slide 18: Company Overview
COMPANY OVERVIEW 17
Slide 19: 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 18
Slide 20: 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, Financial Services, e-Governance, e-Commerce and Logistic services to domains on a real-time basis BANKING INSURANCE E-GOVERN
Slide 21: 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 20
Slide 22: NextGen Vakrangee Kendra - Our Presence
NEXTGEN VAKRANGEE KENDRA – OUR PRESENCE Sr. No State Name 1 Andhra Pradesh 8,500+* OUTLETS 2 3 Bihar Chandigarh 4 Chhattisgarh 25 STATES & UTs 5 6 Delhi (NCR) Dadra and Nagar Haveli 7 Daman and Diu 8 Goa 9 Gujarat 10 Haryana 11 Himachal Pradesh 12 Jammu & Kashmir 13 Jharkhand 14 Karnataka 15 Kerala
Slide 23: 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 22
Slide 24: 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 25: 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 26: 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 27: 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 28: 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 29: Update on Regulatory Compliances
UPDATE ON REGULATORY COMPLIANCES 28
Slide 30: 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 31: Update on Awards & Recognition
UPDATE ON AWARDS & RECOGNITION 30
Slide 32: 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 33: 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 34: Directors & Leadership Team
DIRECTORS & LEADERSHIP TEAM 33
Slide 35: 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 36: 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 37: Annexures
ANNEXURES 36
Slide 38: Kendra Evolution
KENDRA EVOLUTION 37
Slide 39: Kendra Evolution - Phase 1
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 40: Kendra Evolution - Phase 1
KENDRA EVOLUTION PHASE 1: INITIALLY AN E-GOVERNANCE PLAYER 39
Slide 41: Kendra Evolution - Phase 2
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 42: Kendra Evolution - Phase 2
KENDRA EVOLUTION PHASE 2: E-GOVERNANCE PLAYER TO A BANKING BC POINT MODEL 41
Slide 43: Kendra Evolution - Phase 3
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 44: Kendra Evolution - Phase 3
KENDRA EVOLUTION PHASE 3: E-GOVERNANCE PLAYER TO MULTI SPECIALITY STORE MODEL 43
Slide 45: Kendra Evolution - Phase 4
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 46: NextGen Vakrangee Kendra: Gold, Silver and Bronze Model
KENDRA EVOLUTION 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 store format. • Key Ma
Slide 47: 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 48: NextGen Vakrangee Kendra: Gold Model
KENDRA EVOLUTION NEXTGEN VAKRANGEE KENDRA: GOLD MODEL 47
Slide 49: NextGen Vakrangee Kendra: Silver Model
KENDRA EVOLUTION NEXTGEN VAKRANGEE KENDRA: SILVER MODEL 48
Slide 50: Branding & Marketing Campaign
BRANDING & MARKETING CAMPAIGN 49
Slide 51: National Level Advertising - Print
NATIONAL LEVEL ADVERTISING - PRINT 50
Slide 52: National Level Advertising - OOH
NATIONAL LEVEL ADVERTISING - OOH 51
Slide 53: National Level Advertising - OOH
NATIONAL LEVEL ADVERTISING - OOH 52
Slide 54: National Level Advertising - Localised
NATIONAL LEVEL ADVERTISING - LOCALISED 53
Slide 55: Thank You
Thank You 54