RattanIndia Enterprises Limited has informed the Exchange about Investor Presentation
May 29, 2023
BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai – 400 001 Scrip Code- 534597
Bandra (East),
Mumbai-400 051
RTNINDIA
National Stock Exchange of India Limited
Exchange Plaza, Bandra Kurla Complex
Sub: Investors Presentation
Dear Sirs/Madam,
Please find attached herewith a copy of the Investors Presentation.
Please take the same on your records.
Thanking you,
Yours faithfully, For RattanIndia Enterprises Limited
Rajesh Arora Company Secretary
Encl : as above
RattanIndia Enterprises Limited CIN: L74110DL2010PLC210263 Registered Office: 5th Floor, Tower-B, Worldmark 1, Aerocity, New Delhi -110037 Website: www.rattanindia.com, E-mail: rel@rattanindia.com, Phone: 011 46611666
Investor Presentation
May 29, 2023
Disclaimer
This document contains certain forward-looking statements based on current expectations of RattanIndia Enterprises (REL) management. Actual results may vary significantly from the forward- looking statements in this document due to various risks and uncertainties.
These risks and uncertainties include the effect of economic and political conditions in India, and outside India, volatility in interest rates and in securities markets, new regulations and government policies that might impact the business of RattanIndia Enterprises, the general state of the Indian economy and the management’s ability to implement the company’s strategy. RattanIndia Enterprises doesn’t undertake any obligation to update these forward-looking statements.
This document does not constitute an offer or recommendation to buy or sell any securities of RattanIndia Enterprises or any of its subsidiaries or associate companies. This document also doesn’t constitute an offer or recommendation to buy or sell any financial products offered by RattanIndia Enterprises.
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Key Highlights …
• •
Total income of REL in FY23: Rs. 4,138 Cr (Q4FY23: Rs. 1,109 Cr)
Revenue generation in all businesses showing healthy growth
o Cocoblu:
✓ Achieved FY23 revenue of 4079 Cr and PAT of Rs. 47 Cr, Q4 Revenue of Rs. 1056 Cr ✓ Over 2 cr orders fulfilled in Q4 ✓ 880+ active vendors in FY 23 ✓ 30+ lakhs unique items offered ✓ 19,000+ PIN codes serviced which is 99% of total serviceable PINs ✓ Achieved 4.5 star review ratings on Amazon marketplace with a total of 46,975
Ratings
o Neobrands:
✓ House of brands launched (D2C) across multiple fashion categories - casual wear,
athleisure and denims
✓ Own brand stores on Amazon, three brands launched:
Fyltr (smart casual wear), brand store @ www.amazon.in/fyltr
a. b. Pump’d (athleisure), brand store @ www.amazon.in/pumpd c.
Inkd (denim), brand store @ www.amazon.in/inkd
✓ Neobrands has initiated a pilot program of selling apparel, shoes and handbags on
Amazon.com to service US, Canada, Mexico.
o Revolt:
✓ REL acquired 100% stake in Jan 2023 ✓ Revamp of Revolt supply chain and increased factory capacity to 2X ✓ Sharpened focus on customer centricity by improving services & spares ✓ Expanding dealerships pan India and starting exports abroad
✓ Brought sweeping upgrades in technical features in the bike
o NeoSky:
✓ NeoSky received Drone pilot training license. First center to be launched in
Bangalore, batches starting from June’23
✓ Launched four new products: L40 (Cargo drone with a capacity of 40kg), TACT-XL
(Surveillance drone with a 90-minute endurance)
✓ TAS received Production Linked Incentive (PLI) from Government of India’s (GOI),
for the period FY21-22
o Wefin (earlier BankSe):
✓ Insurance sales business kickstarted in REL subsidiary Neotec Insurance Brokers ✓ Partnered with multiple insurance companies in the country ✓ Disbursed 7,300+ loans in FY23 with value of Rs. 300+ Cr ✓ Number of Credit Cards issued in FY23: 3,700+ ✓ More than 1.7 mn visitors on the portal
Consolidated FY23 loss in REL is driven by unrealized notional loss of Rs. 255 Cr (Q4 Rs 106.40 Crore) on investment in RattanIndia Power Limited (RPL)
o Shareholding in RPL is held as an investment in REL’s books o For each reporting period, investment in RPL is valued at the closing market price (price of RPL share as on 31st Mar 2023 was Rs. 2.95 against Rs. 3.95 as on 31st Dec 2022); resulting in an unrealized loss of Rs. 106.40 cr
o Daily fluctuating share price of RPL does not reflect the intrinsic value of REL’s investment
in RPL and hence the loss is notional
•
3
Digital ecosystems will be key drivers in India’s aspirations to be $5 trillion economy
Enablers of India’s digital economy
1.4 billion
759 million
1.1 billion
1 billion
$1.3 trillion
People onboarded on Aadhaar stack
Internet Users
Bank Account Holders
Aspiring Indians
Aadhaar has evolved into a world-class digital service delivery platform
Second largest internet connected population in the world
Led by largest financial inclusion scheme in the world
Large population in income range of Rs. 2.5 – 14 lac per annum
Estimated fintech market opportunity
Compared to the world's developed nations, 40% of the world's total digital transactions happen in India1
REL will capitalize on businesses with cutting edge technologies which have the potential to transform the lives of billion plus Indians
Note: 1. 2.
https://www.ibef.org/industry/banking-presentation https://www.ibef.org/news/india-likely-to-have-900-million-active-internet-users-by-2025-report
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Our philosophy on business
⚫ New Age businesses
⚫ ESG compliant
⚫ Direct to consumer engagement
⚫ Staying away from debt-heavy businesses
⚫ Low capex
⚫ Clean tech focus
⚫ Rapid scalability
⚫ Aiming to be amongst the leaders
REL is a family of strategic growth platforms
5
Our business interests
RattanIndia Enterprises Invested in the future
E-commerce 100% subsidiary
Electric Vehicles 100% shareholding
Drones 100% subsidiary
Fintech 100% subsidiary
1
Matternet2
Residual equity holding - RattanIndia Power 19.81% shareholding
Note: 1. 2.
NeoSky holds 60% stake in TAS Strategic investment approved by Shareholders
6
Our governance
50% of Board is independent
Statutorily audited by Walker Chandiok & Co LLP (GT)
Governance committees headed by Independent Directors
Audit, Nomination and Renumeration, Corporate Social Responsibility (CSR) Stakeholders’ Relationship
Robust regulatory compliance
Guided by qualified and competent Advisory Board
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Advisory Board of eminent professionals
Mr. Arun Duggal
Chairman of ICRA (A Subsidiary of Moody's USA) and ex-Chief Executive Officer of Bank of America – India
)
Mr. Yashish Dahiya
Co-founder and Group CEO of Policybazaar
Mr. Ranu Vohra
Co-founder and Executive Vice Chairman, Avendus Capital
Mr. Jan Preiss
Co-founder and CEO of Oxford Latinitas, UK
Mrs. Anjali Rattan Nashier
Co-founder & Business Chairperson, RattanIndia Enterprises
Mr. Rajiv Rattan
Co-founder & Chairman, RattanIndia Group
Advisory board entrusted with:
⚫ Building investment strategy ⚫ Reviewing investment proposals ⚫ Monitoring performance of investee companies and subsidiaries ⚫ Assisting the management with external relationships
8
Businesses of the future Smarter take on opportunities
9
9
E-commerce
10
Universe of possibilities – REL’s e-commerce platform
Partnering vendors in their growth
Digital co- branding
Seller on Amazon.in
Other online marketplaces
Private Labels
Licensing foreign brands
Capitalizing on full potential of e-commerce universe through multi-faceted foray
11
Partners for success
Partners for success
12
In FY23 we scaled up massively …
For all walks of life
Untangled entertainment
Books never go out of style
Shipped 1.5 cr shoes
Shipped 1.5 cr wireless accessories
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Shipped 2.1 cr books
In FY23 we scaled up massively …
Apparently apparels are always a hit
Work. Work. Work.
Music on everyone’s mind
Shipped 3.03 cr apparels
Shipped 89 lacs office stationery
Shipped 9.5 lacs musical instruments
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Opportunity of a lifetime
•
•
India currently has the 4th largest retail market in the world. India has the third-highest number of e-retail shoppers (only behind China, the US)
Indian retail market is projected to reach approximately Rs. 160 lakh crore ($2 tn) by 2032 from Rs. 71 lakh crore ($836 bn) in 2021
• Online retail market in India is projected to reach Rs. 28 lakh crore ($350 bn) by 2030 due to rising online shoppers in
the country, growing at a CAGR of 23%
• Number of online shoppers in India are expected to reach ~50 crore in 2030 from 19 crore in 2021
•
India today has 759 million internet users and is expected to touch 900 million users by 2025
Significant growth in the E-retail market in the next 5-years will steer the momentum for Cocoblu
Source: IBEF Invest India Data on India retail industry as per Kearney Research and Bain & Co., published on ibef.org Retail industry in India, investindia.gov.in Live mint 15 How India Shops Online 2022 | Bain & Company https://www.indianretailer.com/article/whats-hot/retail-trends/india-retail-and-e-commerce-trends-2022.a8176
Witnessing healthy scale-up in business
• Achieved FY23 revenue of 4079 Cr and PAT of Rs. 47 Cr, Q4 Revenue of Rs. 1056 Cr
•
EBITDA for FY 23 of Rs 93 Cr
• Has tied up with ~136 Amazon Fulfilment Centers that enables it to deliver across ~100% of the PIN codes in the country
•
•
Served ~19,000 PIN Codes across India
880+ top brands signed up, offering best in class selection to customers
• Achieved 4.5 star review ratings on Amazon Platform
• Robust processes built on best-of-breed tech tools help in managing the details of retail, which in turn drive customer
experience
• Big data and advanced ML algos keep Cocoblu on top of the complexity that comes with total selection of 30+ lakh unique
items
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Partner Brands
and many more……
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Led by expert retail professionals
Mr. Mouli Venkataraman, CEO ⚫ Alumnus of prestigious IIT Madras and
IIM Lucknow
⚫ Previously Category leading retail house
Leader
at
a
⚫ Vast experience in retail companies India, Arvind Lifestyle
like Cloudtail Brands, Nokia and Asian Paints
Housed in 26,000 sq. ft. office space in Bangalore
200+
Team members With 375+ years of experience in retail
With deep expertise in scaling up brands in e-commerce
Top B- Schools/ Firms
Rich execution capabilities
Deeply proficient in technology
Strong team, IT and other infrastructure in place to support growth
18
Mr. Soumik Bhusan, CFO ⚫ Alumnus of prestigious IIM Bangalore and qualified Chartered Accountant from India as well as from England & Wales
organizations
⚫ 18 years of experience having worked at Amazon, Bloomingdales (Al Tayer), Macmillan, Titan, Reliance, Goldman Sachs, and CMIE.
like
⚫ Held various leadership and academic
positions
Partners for success
New Brands, New Beginning
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Neobrands Launches 3 new D2C fashion brands
Athleisure / Active Wear Brand
Casual Clothing Brand
Denim Wear
20
Inkd: Stylish Denim Wear
•
•
•
•
•
A denim- wear brand with a total of ~90 styles
For both Men and Women
A range of denim bottoms with a wide range of fits , denim jackets and shirts
Priced attractively from INR 699 to 999
Available exclusively on Amazon at the brand store amazon.in/inkd
21
Pump’d: Trendy Athleisure
•
•
•
•
•
An active wear brand with a wide range of 150 styles
A range for both men and women with tanks, tees, leggings, capris, Joggers and more
New age fabrics that are both soft and light, with added features like quick drying
Priced between INR 300 to INR 950
Available exclusively on Amazon at the brand store amazon.in/pumpd
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Fyltr: Smart Casual Wear
•
•
•
•
•
A casual brand offering a wide range of options in solid colours
A range of T-shirts, Shirts, Tops, Shorts, Khakis and more for both men and women with more than 220 styles
Colours and fits tailored to Indian consumers’ palette and body types
Attractively priced from INR 499 to 999
Available exclusively on Amazon at the brand store amazon.in/fyltr
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Neobrands: New Brands, New Beginning
24
India’s no. 1 electric motorcycle company
25
Industry dynamics
India’s EV penetration
2-wheelers
4-wheelers
<1%
<1%
2020
32%
5%
2025E
80%
30%
2030E
EV sales in India recorded Y-o-Y 155% growth as of FY2023 to reach 11.7 lakhs units
⚫ Electric two-wheeler sales in India
reached to 7,20,733 units (Y-o-Y 185%) in FY2023.
⚫ Indian EV market, valued at $3 billion in 2022, is expected to grow to $114 billion by 2029, at a CAGR of 67%
India tracking tremendous scale up in electric two-wheeler sales during this decade
Source: Report by Deloitte on Electric Vehicle and Mobility -POV Auto Car Pro Your Story
26
The e-mobility value chain revenue pool is estimated to reach up to $100 billion in FY30
EV revenue pools along e-mobility value chain (2030, $B)
10-13
7-9
7-11
40-51
6-8 1-2 5-6
Total ~$100B
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Battery EV auto
components software and telematics
Other Components (chassis, motors, plastic parts etc…)
% Share
3W: 4
2CV: 2
2W: 33
4W: 41
Auto OEM, sales and service
Charging
Mobility
Battery Swapping
27
Policy tailwinds
⚫ 2023 expected to be a defining year for the Indian electric vehicle industry, with policy shifts and increased investment driving growth
⚫ Faster Adoption and Manufacturing of Electric Vehicles (FAME) programme (provides financial incentives to EV manufacturers and
buyers) and the National Electric Mobility Mission Plan aim to achieve 30% electric mobility by 2030
⚫ In the Union Budget 2023, import duty has been reduced to nil in respect of import of specified capital goods and machinery required for the manufacture of lithium-ion cells for batteries used in electric vehicles. This will help in reducing the cost of batteries in the near future
Continued positive Government support to the industry as well as end users to elevate the EV traction in India
Source: Your Story
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First mover – India’s no. 1 electric motorcycle company
⚫ Multi-model approach
o Achieved 100% localization
o AI enabled data analytics
o Establishing state-by-state distribution
o State of the art manufacturing –being further expanded
o No special charging infra required
o New age/ Digital approach to customer engagement
o Highly responsive customer service
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India’s most advanced AI enabled, nextgen electric motorcycle
More than 12.1 million data points captured and processed on AI engine from more than 230 million+ kms driven on Revolt bikes
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The Revolt advantage
Natural transition from ICE motorcycles
which account for > 60% share of 2Ws
Electric motorcycles are built sturdier for superior riding proposition
Electric motorcycles have long term cost advantages in comparison to ICE 2Ws
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Revving up the performance
14,107
10,480
243
160
FY22
FY23
Growth in Sales Volumes
FY22
FY23
Growth in Total Revenues in Rs. Cr.
Quicker inflection to profitability anchored by rapid acceleration in sales
32
Electrifying India, a city at a time
HQ and Factory Manesar, NCR
⚫ Presence in 28 cities with 32 stores ⚫ New cities in the pipeline
Faridabad
Delhi**
Noida
Jaipur
Lucknow
Patna
Guwahati
Ahmedabad*
Rajkot
Surat
Mumbai Pune
Bhopal
Indore
Hyderabad
Kolkata
Bhubaneshwar
Vizag
Nellore
Hubballi
Mangalore
Bengaluru
Chennai*
Tiruchirappalli
Thrissur Kochi
Coimbatore
Madurai
33
Stores
*Ahmedabad and Chennai have 2 stores **Delhi has 3 stores
Sky-High Opportunity
34
Sunrise industry
⚫ India aims to be a global drone hub by the year 2030
⚫ Indian drone industry is expected to grow from Rs. 2,900 Cr in 2020 to Rs. 81,600 Cr in 2025 and Rs. 295,000 Cr by 2030
⚫ Drone exports are expected to grow from Rs. 4,300 Cr in the year 2025 to Rs. 47,000 Cr by 2030. Exports as a % of the industry is likely to see a massive jump from just 5% in 2025 to ~20% in 2030
⚫ Component indigenization is happening at a rapid pace. By the year 2030, 60% of all the components are likely to be sourced within India
Source: Making India the drone hub of the world. Sep’22 by FICCI and EY
35
Indian Drone industry (Rs. Cr)
Exports (Rs. Cr)
2,95,000
2,900
2020
81,600
2025
2030
47,000
2030
4,300
2025
Key Growth Levers of Drone Industry
Government & Industry
Pushing drone usage across all the key sectors like Survey & Mapping, Surveillance, Inspection, Logistics & Agriculture
Skill Development
India needs around 100,000 drone pilots in the next few years. Pradhan Mantri Kaushal Vikas Yojana 4.0 includes drones (Budget FY23-24)
GDP Multiplier
To boost India's GDP by up to 1.5% while adding at least 500,000 jobs in the coming years*
Policy Tailwinds
Liberalised drone rules, Banning imports of Drones, PLI scheme for manufactures, Drone shakti
Investments
Driving local innovation, building eco-system, Creating a talent pool
Defence
Modernisation of Armed forces driving Drone and Anti- Drone usage. Demand for Surveillance, Cargo drones & more !
Visionary policy to help industry scale-up; players with first mover advantage to benefit the most
Source: WEF
36
NeoSky aims to be a full-line drone player
Consumer drones
Enterprise drones*
Defence drones
Drone Pilot Training
Drone services
Purpose
A Drone in every Indian house.
Enhance productivity & safety.
Serving the nation, saving precious lives.
Upskill the Indian youth
Tech and Data driven, Customised solutions
NeoSky’s vision is to provide full 360-degree drone solutions to customers with Drones as a Product (DAAP - drone hardware), Drone As a Service (DAAS – drone service solutions) and Software as a service (SAAS – drone software)
Source: *Enterprise segment includes Surveillance, Land mapping, Logistics, Agriculture and Infrastructure.
37
NeoSky received Drone Remote Pilot Training Organization (RPTO) license
▪ DGCA approved NeoSky’s RPTO license, the first center is starting in Bangalore
▪ Mission: To upskill the Indian youth. This fits in very well with the REL’s vision of
“Transforming lives of a billion plus aspiring Indians”. RPTO will provide trained & qualified pilots across NeoSky
▪ Strong Infrastructure, People with a special focus on sharing practical experience
▪ NeoSky will offer both Standardized and Customized courses. We will look at Trailor-made
batches focused on Veterans, Agriculture, Mapping etc.
Laboratory
38
Flying zone
New drone launch (1/2) : Cargo drone capability doubles, moves up from 20kg to 40kg
▪ Launched L-40 with a payload capacity of up to 40kg
▪ L-Series now has three products and four variant, doubled our capacity from 20kg to 40kg in this quarter. Medium altitude (L- 40, L-20 and L-15) and High altitude (L-15)
▪ Targeted industries: Defence, eCommerce, Healthcare &
Paramilitary
L-40
39
New drone launches (2/2) : TACT-XL takes endurance to 90 minutes
•
TACT-XL takes endurance to new heights. Best-in-class 90 + minutes flying time, a landmark in the ‘Rotary craft’ category
• A big enhancement from the current product of TALV-TACT
•
Targeted industries: Defence, Paramilitary, Police & Security establishment
TACT-XL
40
DOPO completed Stage-I type-certification
▪ DOPO completed Stage-I of the ‘type certification’, Final
certification process is on-going
▪ DOPO, best-in-class within the rotorcraft category
▪ Targeted industries: Mapping, Inspection, Mining & Precision
agriculture
41
Existing Product portfolio (1/2): Surveillance
TACT
TACT
Surveillance, Disaster management. Endurance of up to 60 minutes. Live transmission is 15 kilometres. Cruise speed of 24 meters / second. Customisable payloads (Camera, Sensors) up to 2kg
Affordable surveillance. 4K Camera with 25 fps & 6X Zoom. Endurance of up to 35 minutes. Communication range of 5+ kilometers. On-board AI features. High precession GPS
42
Existing Product Portfolio (2/2): Cargo drone & Anti-Drone
L20 & L15
Defender
Cargo delivery. Payload of up to 20 kgs. Endurance up to 45 minutes. Max launch altitude 5500meters above MSL. Live transmission of 15 kilometres. Autonomous-mode option. In-built fail- safe features. Pre-flight checks.
Defence. Anti-drone with a soft-kill approach. Lock- Track-Neutralise rogue drones. Endurance of up to 45 minutes. Communication range of 20 kilometers. IP45 resistance. Max speed 26 meters / second. Operating temperature -5*C to +55*C
43
Product demonstration
Demonstration of our drones to Defence, Police, Commercial, Agri and other clients
44
TAS received PLI from Government of India
⚫ Throttle Aerospace Systems (TAS) is one of select few companies that has qualified for Government of India (GOI) Production
Linked Incentive (PLI) scheme in July’2022, for the period of three-year period starting FY21-22
⚫ GOI released FY21-22 PLI incentives to the drone companies in March’23 and TAS is one of the select few who received this
incentive
⚫ GOI has earmarked Rs. 120 Cr for Drone PLI for drone and component manufacturers , over a period of 3 years. These numbers
are likely to go up significantly
⚫ A 20% incentive is given on the Value-addition done by the drone manufactures
⚫ This is a great initiative to support & drive ‘Make in India’ innovation, R&D and manufacturing
45
Dream Team of Infinite possibilities
Mr. Sarath Chandra Gudlavalleti,
Peeyush Kumar, Business Head,
CEO
CONSUMER DRONES
⚫
⚫
⚫
Alumnus of prestigious XLRI, Jamshedpur
Previously senior leadership positions in Quikr
Vast experience in technology and retail companies like Microsoft, Nokia and Coco-Cola
in
⚫
⚫
Industry positions in International & Indian market
veteran with 27 + years experience at leadership
Part of IIT-Kanpur & IIM-C. Has deep knowledge in imaging, consumer electronics , telecom & drones
⚫ Worked with Sony, Samsung, Panasonic, Sony Ericsson, Pixella
& Philips
Niraj Kr Sahay, Chief Innovation Officer, Consumer Drones
⚫
⚫
Industry veteran with 25 + years experience in Technology, design & innovation, IIT-Kharagpur & IIM-B
Deep knowledge in defence automotive aerospace & UTM
⚫ Worked with
Infosys, Wipro, DRDO,
and Avianco
46
Dream Team of Infinite possibilities
Nagendran Kandasamy, Chief Executive Officer, TAS
⚫
⚫
Aeronautical expert with international and Indian market experience of 15 yrs
Deep knowledge in aircraft structure and UAV. Alumni of Hindustan college of Engineering
⚫ Worked with HAL, Boeing, Cades, Zodiac Aerospace and projects like LCA Tejas, Boeing 787, & A320
Shashi Kr R, Chief Technical Officer, TAS
Wing Commander Somasundaram (RETD)
⚫
16+
An IOT, Web application and computer vision in years of champion. development of web application, embedded systems, IOT device software and database management
experience
⚫
•Worked with Oracle and ANZ Grindlays
47
⚫
⚫
IAI,
trained at
Indian Airforce (IAF) veteran for 30 + years . Israel on Drones. Got Established state-of-art maintenance facility for drones at IAF. Was part of the team which was tasked to do RCA on security lapses at an IAF base.
Launched a drone start-up which created Perimeter intrusion detection solution, Agri drones and a Tethering drone.
Dream Team of Infinite possibilities
Setting up development & manufacturing of indigenous drones
world class R&D centre for design,
Setting up, Sales, Marketing and Distribution capabilities
Combined experience of leadership team is more than 100 years with background from Product Design, Aeronautics, Embedded Systems, AI & ML, Computer Vision, Marketing & SaaS, P&L, Entrepreneurship
Several recruitments underway to grow the dream team. Current strength of 70+ strong team members from reputed institutes
48
India’s premier, all-digital, one-stop financial solution provider
49
Vibrant retail credit industry
Market size: INR 174 Lakh Crore1
(Lending market in India in Mar 2022)
Growth of: 11.1%* 2021-22
RETAIL MARKET SEGMENTS
Home Loans Agri Loans Personal Loans Business Loans Auto Loan Gold Loan Credit Cards Two-wheeler Loans Consumer Durable Loans Others Total
%
30% 9% 9% 7% 6% 5% 2% 1% 0.4% 30% 100%
INR in Lakh Cr. 25 8 8 6 5 5 2 1 0.3 25 85
Retail lending in FY22 stood at Rs. 85 Lakh Cr., representing 48.9% of the overall market size of INR 174 Lakh Cr
Source: TransUnion CIBIL- Google Data 2020-2018 1 CRIF Highmark 2 TransUnion CIBIL 2022
50
Credit Demand Growth: 40%2 2021-22
Increasing frequency of consumers checking their credit scores
3x
2x
Growth in number of consumers checking their credit scores in 2020 vs 2018
Growth in number of times a consumer checks their credit scores in 2020 vs 2018
Digital penetration in India
1.40bn
845 mn
236 mn
Population of India
Population of India on Digital
Population of India on Digital 25-54 yr.
78.5Mn 78.5 mn
Population of India on Digital 25-54 yr. who have explored Digital Retail Lending Products online
India uniquely poised to realize democratization in Financial Services
Source: Statista& DV360
51
Opportunity is ripe for digital first models
2W loans (in INR Cr.)
23%
49,688
40,306
Personal Loan (in INR Cr.)
Credit Card Issuances (in Lakhs)
5,24,224
243%
2,15,602
47%
160
109
FY18
FY22
FY18
FY22
FY18
FY22
Home loans (in INR Cr.)
34%
7,35,842
5,48,899
Business loans (in INR Cr.)
1,73,104
10%
1,57,000
FY18
FY22
FY21
FY22
Continued traction in traditional segments of lending to underline growth for Wefin
Source: CRIF Highmark–How India lends 2022 report
52
Opportunity is ripe for digital first models
Consumer credit to grow at approximately 13% CAGR, partially contributed by growth in Fintech
NBFCs* & Fintechs^ to play role in increasing share of formal credit across MSME segments
Consumer credit - split by lender type ($B)
MSME credit - split by lender type ($B)
Consumer credit growth by lender type CAGR 21-26E
Fintech Players
~50-60%
Traditional NBFCs*
~15-20%
Banks
~11-14%
$460B-$490B 2%
$550B-$580B 1% 9%
20%
363.4
FY19
90%
FY21
$1,050B-$1,100B 6% 10%
84%
FY26E
$200B-$250B 2% 20% 158
FY19
$300B-$350B 3%
25%
73%
FY21
$750B-$800B
10%
32%
58%
FY26E
MSME credit growth by lender type CAGR 21-26E
Fintech Players
~50-60%
Traditional NBFCs*
~20-25%
Banks
~10-12%
*Non-Banking Financial company ^Fintech NBFC lenders such as Lendingkart
Sources: India Fintech Report 2022, Bain & Co
53
Wefin - One stop solution for every financial need
Marketplace for anything one needs from a financial institution • Access via App/ Website • • • •
Real-time Personalized Offers Real time approval and disbursal Free Credit Score Check Check real time banking transactions with 13 top banks through Account Aggregator network Banks, NBFCs and FinTech’s Existing lending relationships – 30+
• •
Current products available: • Personal Loans • Two-wheeler loans • Credit Cards • Bill discounting • Account Aggregator • Free Credit Score Check • Housing Loans/Loan Against Property
Next phase of products: • Business Loans
Wefin will identify up-selling and cross selling opportunities for a wide customer base and create financial ecosystem opportunities with enhanced customer experience
54
Actualizing the opportunity
⚫ 30+ relationships with banks, NBFCs and Fintech integrated with Wefin
⚫ Wefin provides two-wheeler loans for 34 OEMs having 1,444 models
⚫ Number of Loans Disbursed in FY23: 7,300+
⚫ Number of Credit Cards Issued in FY23: 3,700+
⚫ Loan Disbursal Value in FY23: Rs. 300+ Crore
⚫ Number of Visitors till date 1.7 mn
⚫ Registered Customers till date 354k
⚫ Number of credit score checks till date 186k
⚫ Integrated with Account Aggregator Network … Real time banking transactions with
13 banks already live
⚫ Wefin’s Ad was released on 14 Feb, 2022 … 5.08 lakhs+ numbers of views (LINK)
⚫ Business is well supported by 80+ employees with 500+ years of experience in reputed Banks, NBFCs, FinTech's including HDFC, IDFC, Yes Bank, Bajaj Finance, SBI Cards, Incred, RBL Bank, Cars 24
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Strengths of Wefin’s business model
• No Capital at risk
• Progress at the speed of a click
• Built for sustained scale up
• Web aggregation at core
Wefin Vs. Traditional Approach
Wefin’s approach
Traditional approach
Paperless authentication and on-boarding
Multi-tier burdensome paperwork
Instant approval status
Prolonged, opaque, outdated processes
Live comparison across suitable options
Preferred partner typically gets pushed
Tailor made products with accent on convenience
One-size fits all approach. No scope for personalized innovation
Wefin to redefine the banking experience with limited touchpoints and zero physical presence
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Partners for success
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and many more……
Residual equity in historical business
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Best-in-class operations
Fully functional, Amravati asset running profitably
Robust operational metrics
Current position in MOD stack ensures high PLF
Assured raw material linkages offer insurance against fluctuations
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Strong Performance
•
The Company continues to demonstrate strong financial performance and for FY 23 has posted:
▪ ▪ ▪ Standalone
Total income of Rs 3581 Cr PBT of Rs 353 Cr EBITDA of Rs 1108 Cr
Q3 FY23
9M FY23
In FY 23 , Amravati plant achieved following record milestones since commissioning in March 2015:
• EBITDA (Rs. Cr)
PAT (Rs. Cr)
293
796 ▪ Highest ever PLF of 77% 222 ▪
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Received and unloaded highest ever coal rakes ( 1487 nos. i.e. daily average of 4.1 rakes)
•
•
•
Company continues to timely service its debt obligations, having paid Rs. 3116 Cr (principal and interest) since Jan 2020, including Rs. 733 Cr as prepayment The outstanding secured external term debt stands reduced at Rs 1213 Cr (including accrued interest) against standalone Networth of Rs 5608 Cr as on 31 March 2023 Company is in the process of re-financing its secured debt with one of the leading domestic private sector bank. Transaction is expected to close in Q1 FY 24.
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Investor connect
Investor-relations@rattanindia.com
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Thank You