eCommerceSimplified
eCommerceSimplified Safe Harbor This presentation and the - - PowerPoint PPT Presentation
eCommerceSimplified Safe Harbor This presentation and the - - PowerPoint PPT Presentation
eCommerceSimplified 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,
eCommerceSimplified
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 form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. Our actual results may differ materially from those included in this presentation for a variety of reasons, including, but not limited to - changes in political, business, and economic conditions; foreign exchange rate fluctuations; the impact and integration of recent and future acquisitions; our need to successfully react to the increasing importance of mobile payments and mobile commerce and the social aspect of commerce; an increasingly competitive environment for our businesses; the complexity of managing an increasingly large and growing enterprise, with a broad range of businesses; our need to manage regulatory, tax and litigation risks (including risks); and our need to timely upgrade and develop our systems, infrastructure, and customer service capabilities at reasonable cost while maintaining site stability and performance and adding new products and features. This presentation also contains product demonstrations (or reference to such new products), some of which are conceptual and may not be developed or launched in the same form, with all of the same features or at all. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections..
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eCommerceSimplified
Group Evolution
YEAR R 1986-88 88
Incorporated in 1986 and started trading in API & intermediates in 1988
YEAR R 1992-94 94
Converted into Public Ltd company in 1992 and raised funds through IPO in 1994
YEAR R 1995
Sets up GMP standard API & Intermediate manufacturing plant in Gujarat
YEAR R 1999
Promoted India’s 1st Online Chemical Trading Portal PwC – as a strategic partner
YEAR R 2001 2001-08 08
API & Intermediate business runs into rough weather and company turns sick; Continues with Job Work
YEAR R 2008 2008-09 09
Clears all debts & outstanding and the company becomes debt-free
YEAR R 2012
Comes Out of Financial Sickness & sets up Digital & eCommerce division; Fully exited API & Intermediate Business
eCommerceSimplified
Digital & eCommerce
YEAR R 2014
Selected to present at the Web Summit in Dublin, Ireland
Launched iStreet Bazaar
India’s 1st internet Retail Store Set up stores through network partners in Gujarat, Maharashtra & Rajasthan. No of stores - 1,001 as on Jan 31, 2015 Selected as the "Startup of the Year 2014" by Silicon India
YEAR R 2007 2007
Set up online auction stores under the "cash in your attic" program
YEAR R 2008 2008
Evolved the eBay "Trading Assistant" model. Delivered eCommerce to 100s of brands under this model till date
YEAR R 2011
Pioneered flash sales to ship 4,000-6,000 items a day on eBay Managed India’s largest online auction for IPL 2011 involving BCCI & Volkswagen
YEAR R 2012
Created online jewelry configurator and sold loose diamonds online with IDEX India and eBay India Set up "India Street" - Grocery products shipped from India to across the world
YEAR R 2013
Company Name changed to “iStreet Network Limited”
eCommerceSimplified
Retail Landscape
eCommerceSimplified
Retail Modern Retail Digital Retail Evolution of Retail
Developed Countries
eCommerceSimplified
Indian Retail
One of the major pillars 13~15% of GDP
Retail in India
eCommerceSimplified
Indian Retail
~US$500bn
(Rs. 30 lacs crores) Retail in India
eCommerceSimplified
Mom & Pops 91.6% Modern Retail 8% eTailing 0.4%
Retail in India
eCommerceSimplified
950 520 +82.7% 2018E 2013
Retail Market Size (USD Bn)
Source – Industry reports
India Retail – an overview
Organized Retail Penetration 20.0% China India 8.0% Thailand 85.0% 40.0% 30.0% USA Indonesia 6.0% 11.0% 3.0% 4.0% 5.0% 3.0% 8.0% 60.0% Revenue Share in Retail Category Organized Retail 8.0% Unorganized Retail 92.0%
Food & Grocery - 60% Apparel – 8%, Mobile & Technology 6% Food Service – 5%
- Con. Electronics – 4%
Pharmacy – 3% Jewelery – 3% Others – 11%
eCommerceSimplified
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, currently contributing negligible, though
growing at a very fast pace
eCommerceSimplified
Moms and Pop Stores -
the King without Crown
Low operational cost Driven by trust & Quick response 14 million stores Convenient Neighbourhood Store
14 million Mom and Pop Stores in India are consumers’ most trusted point of buying But ... have limited product offering
eCommerceSimplified
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.
Common Man buys from ‘Mom & Pop’ store
Common Man of India
eCommerceSimplified
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.
- 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 in its present & available avatar
- Is largely dependent on Mom & Pop stores for its needs
Who is the Common Man of India
eCommerceSimplified
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.
Common Man far away from
- Modern Retail
- Digital Retail
Adoption of new formats of Retail
eCommerceSimplified
Confluence of Digital Retail & Indian psyche is a mismatch; it needs an innovative and differentiated platform
Does not have internet connectivity Has Limited access to plastic monies Prefers human interaction while transacting Looks for trust factor while transacting on Internet
95% of Population in India i.e. Common Man
Mom & Pop Consumer
Very low per capita Modern Retail space
Why he has not moved beyond Mom & Pop
Is E-illiterate LFR – Perceived as Stores for select FEWs
eCommerceSimplified
A Revolutionary concept
eCommerceSimplified
iStreet Bazaar is an Internet Retail Store in a neighborhood where a common man can buy products, ONLINE (with assistance)
eCommerceSimplified
Modern Retail – large
- ffering /
choice Mom & Pop – convenient Stores Digital Retail – driven by Technology
Changing the Retail landscape of India with a unique India centric approach
eCommerceSimplified
iStreet Bazaar – a Physical Digital Amalgamation
eCommerceSimplified
Get Quote
Your Text Goes here. Download this awesome- diagram. Bring your
Single stop for multiple type
- f products
Access to Global and Local Brands Facilitating Enhanced Shopping Experience Competitive Pricing Safe, Secure & Authentic Trust with the seller Hassle free & highly convenient Neighborhood Store Assisted eCommerce
Harmonious convergence of Physical & Digital shopping
iStreet Bazaar - Unique proposition
eCommerceSimplified
The model of iStreet Bazaar is a win-win proposition for all stakeholders
- Low Investment in setting up store
- Branding & Advertising to be
undertaken by iStreet Bazaar
- No Inventory Management &
Supply Chain Management
- Low Risk & Quick to start
Network Partners Brands Customers
Opportunity to cater to 95% of the untapped population of India Business with high return on Investment Access to Global & Local Brands at attractive prices
- Creation of Brand equity via deeper
Penetration in Indian market
- Development of Loyal Customer Base
- Quality Products at competitive
Pricing
- Wide variety and Choice
- High level of trust and
familiarity in transactions
Win-Win for all stakeholders
eCommerceSimplified
Physical-Digital Convergence
Few Examples ..
eCommerceSimplified
IRCTC – Assisted eCommerce
- www.irctc.co.in is a Government website used
for booking tickets for Indian Railways
- Portal charges a fee on every ticket booked
through the portal
- Portal has tied up with various agencies such as
Yatra and Make my Trip
- Recently
portal added flight tickets, hotel bookings, car rentals and tourist packages through its site
- In FY14 IRCTC sold tickets amounting to gross
value of Rs. 15,400 cr
www.irctc.co.in is a classic case of assisted eCommerce being used to increasingly penetrate deep in the Indian market thereby increasing ticketing revenue and achieve faster growth for the gigantic Indian Railways
- ~24% of overall gross value of tickets purchased is
via agents, assisted eCommerce
- Provided immense time saving for passengers due to
avoidance of long ticketing queues
- Agency model – it got 140,000 outlets and agents
thus creating deeper inroads in to the Indian market
- IRCTC outlet in both Rural and Urban India brings
~40% volumes with more than 3.0mn transactions per month
- Agency model created to combat internet illiteracy
in far flung areas as well as trust issues with users
India examples
eCommerceSimplified
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 combined it with in person channels
to eliminate all-too-frequent problems such as inability to link personal accounts to commercial accounts
- Fusion based strategy propelled CBA to the highest customer-satisfaction ranking for retail banks in 2013
- CBA’s share price rose 80% from 2006-2014 compared to 9% for S&P/ASX 200 index
- Competitors taking far longer to emulate the success story of Digical adopted by CBA
- Menswear Digital retailer Bonobos Counts it offline offline “experiment” a success. Co-founder and Chief
Executive Andy Dunn told the New York Times, “We said we would never be offline, and then, wait a second … we hit a big turning point. We realized offline really works.”
- Warby Parker stormed onto the scene in 2010 by selling affordable eyewear exclusively online. After
building a flourishing e-commerce business, co-founders David Gilboa and Neil Blumenthal decided to break into bricks-and-mortar in 2013. With eight storefronts across the country, customer service, interaction and community have helped the brand thrive. As of November 2014, Warby Parker’s bricks-and- mortar stores are now collectively turning a profit, selling an average of $3,000 a square foot annually.
Global examples
Source –Harvard Business Review and Magazine Articles
eCommerceSimplified
Project so far …
eCommerceSimplified
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 gauge common man feedback
- n this project
- Put up banners of the offer to create a buzz about the wrist
watches on sale – sale online
- On the day, sold 40 wrist watches online in 5 hours through
local neighborhood store to the people of Rathodi. All sold
- nline. All monies collected in advance and watches delivered
after 3 days
eCommerce was simplified for Rathodi villagers who were very near to eCommerce & Tech hub in Malad, yet so far from it.
Common Man of India
eCommerceSimplified
Maharashtra (Western) Since Oct’14 319 store 30 mn people
Rajasthan Since Dec’14 188 store 20 mn people Gujarat Launched in Jan’ 14 494 store 50 mn people
Goa Chhattisgarh Madhya Pradesh
In Progress ...
1,001 (as of 31st Jan, 2015) iStreet Bazaar Stores currently available to ~100mn population
Network Coverage
eCommerceSimplified
Performance Statistics
The unique, out of the box concept of iStreet Bazaar is generating tremendous interest and curiosity amongst customers thereby enticing small entrepreneurs to latch on to the model of iStreet Bazaar leading to growth in Volumes
eCommerceSimplified
Existing Category Pipeline Mobiles Computers Accessories Home Appliances Apparels
- Focus on Men's &
Women wear categories
Fashion & Lifestyle
- Include products such as
Wallets, Bags, Sunglasses, Wrist Watches
Thousands of products under 11 categories & 55 sub categories & expanding
iStreet Bazaar – Product Portfolio
eCommerceSimplified
International Recognition in Dublin, Ireland
Received overwhelming response at the Web Summit 2014 held in Dublin, Ireland
eCommerceSimplified
Team
eCommerceSimplified 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 Malu : Co-Founder
- Mechanical Engineer from Boston University, USA
- Worked with Memorial Sloan-Kettering Cancer Research (NYC) and
Cyber Materials LLC.
- Handled eCommerce projects of TML, ITC, Videocon, SOTC and others
- Conceptualized iStreet Bazaar and did pilots / proof of concept to see
how eCommerce can be simplified for common man of India
Promoter Group
eCommerceSimplified
Ratan Jain Internal Audit Professional
- Qualified Chartered Accountant with over 12 years of experience
- Oversees and builds System Audits, Internal Audits, Management Audit besides setting up
processes and documents for Finance Department Bhanwar Singh Sales & Operations Navin Rane Human Resources Nagalaxmi Charipalli Branding
- Has over 9 years of work experience in Retail & eCommerce industry
- Responsible for expanding Network, Business Development, Sales & Operations
- Has over a decade of expertise managing core HR functions
- Responsible for building and developing a pool of talented Human Resources
- Holds a Masters of Science & Masters of Marketing Management from JBIMS, Mumbai
- Responsible for marketing & branding activities
Ruchi Seksaria Company Secretary
- Has over 8 years of experience in areas as Corporate affairs, Legal and Governance
- Responsible for adopting good governance practices at iStreet
Neha Pednekar Category Development - Technology
- Has over 7 years of experience
- Responsible for marketing & branding activities
Management Team
eCommerceSimplified
Financials
eCommerceSimplified
13 Stores 1st Store Launched Jan’14 Feb’14 130 Stores Jun’14 184 Stores Sep’14 Oct’ 14 Items Sold - 226 GMV – Rs. 3.83 lacs Aug’ 14 *All performance numbers are cumulative in nature GMV stands for Gross Merchandise Value Items Sold - 507 GMV – Rs. 7.83 lacs
iStreet Bazaar – Performance*
227 Stores 1,001 Stores Dec’ 14 Jan’ 15 193 Stores 727 Stores Items Sold – 12,604 GMV – Rs. 20.59 lacs Items Sold – 19,398 GMV – Rs. 27.41 lacs
Store Target – 1,400 to 1,500 Stores by March’15 and 3,500 to 4,000 Stores by March’16
eCommerceSimplified
Pharmaceutical & Int. business thru Job Work Sale of underperforming assets of Pharmaceutical & Intermediate business in 9M FY15
Particulars (Rs. Lacs) 9M FY15 Mar-14 Mar-13 Mar-12
Total Revenue 43.3 74.1 51.7 19.7 Pharmaceuticals
- 13.9
20.6 19.7 Digital & eCommerce 43.3 60.2 31.1
- Total Expenses
166.4 55.7 24.0 11.6 Raw Material Expenses 24.8 37.9 10.7
- Employee Benefit Expenses
46.7 7.1 6.8 1.5 Other Expenses 94.8 10.7 6.5 10.1 EBITDA
- 123.0
18.4 27.7 8.2 Depreciation 12.0 8.4 11.2 10.2 Exceptional Items
- 268.6
16.5 1.8 4.8 Profit before Tax 133.5
- 6.4
14.8
- 6.9
Tax 6.8
- Profit after Tax
126.7
- 6.4
14.8
- 6.9
Profit & Loss
Digital & eCommerce business Revenue
- Up to FY14 - 3rd party
Platform sales ;
- FY 15 – iStreet Bazaar
Project Revenue started building
eCommerceSimplified
Particulars (Rs. Lacs) Sep-14 Mar-14 Mar-13 Mar-12
Shareholders Funds 644.6 466.4 472.8 98.0 Share Capital 795.0 795.0 795.0 435.0 Reserve & Surplus
- 150.4
- 328.6
- 322.2
- 337.0
Current Liabilities 55.8 49.8 30.4 35.0 Trade Payables 2.6 1.4 0.2 0.0 Other Current Liabilities 53.2 48.4 30.2 35.0 Total 700.4 516.2 503.2 133.0 Assets Non Current Assets 36.3 122.7 93.7 116.0 Fixed Assets 35.4 119.5 90.5 101.6 Non Current Investments 0.7 1.2 1.2 1.2 Long Term Loans & Advances 0.3 2.0 2.0 13.2 Current Assets 664.2 393.5 409.5 17.0 Inventories 1.5 0.0 0.0 0.0 Trade Receivables 0.8 0.2 0.2 0.1 Cash & Bank Balances 0.9 2.5 1.2 8.5 Short Term Loans & Advances 162.5 153.5 398.1 0.5 Other Current Assets 498.5 237.4 10.0 7.9 Total 700.4 516.2 503.2 133.0
Balance Sheet
eCommerceSimplified
Future Outlook
FY 14-15E FY 15- 16E FY 16- 17E
Project Launched Jan-14 Population covered 110 - 150 mn 350 - 400 mn 800 – 1,000 mn Geographical coverage (may change depending upon various parameters) Gujarat, Maharashtra (west), Rajasthan, Madhya Pradesh, Chhattisgarh, Goa Vidarbha Maharashtra, Andhra Pradesh, Karnataka, Kerala, Punjab, Himachal Pradesh Rest of India
- No. of Stores
1,400 – 1,500 3,500 – 4,000 8,000-10,000
- No. of Fulfillment Centre
2 4 ~ 5 9 ~ 10 Expected Matured No. of stores
- 30% of previous
close 50% of previous close Expected Average business per Matured store p.a.
- Rs. 20 lacs
- Rs. 40 lacs
Initiatives Building capacity Mobile commerce Specialized Store C 2 C commerce DIY Stores
eCommerceSimplified
Company : Investor Relations Advisors : iStreet Network Ltd. CIN - L51900MH1986PLC040232
- Mrs. Ruchi Seksaria, Company Secretary
ruchi@istreetnetwork.com www.istreetnetwork.com Strategic Growth Advisors Pvt. Ltd. CIN - U74140MH2010PTC204285
- Mr. Shogun Jain/Mr. Kevin Shah
jshogun@sgapl.net / skevin@sgapl.net www.sgapl.net For further information, please contact