Company Introduction
Presentation structure
Our business description
Underlying mega opportunity
Our evolution
Financials
Our growth strategy
We are well positioned
Our motto
Our business description
The money you earn
Savings
Earnings
Expenditure
The money you invest
Bank Deposits
Financial Non Bank Mutual Funds
Instruments Instruments
Life Insurance
Money Equities
you invest
Bullion Bonds & Small Savings
Company Deposits
Commodities
Non-financial
Instruments
Real Estate
Art
Our Business Model
From advice to execution in financial services
Portfolio of offerings
Loan Products Insurance
Information Execution
Commodities Mutual
& &
Funds
Advice Service
Fixed
Equities
Income
products
Corporate structure
Wholly owned subsidiaries
India Infoline Limited
Content related services – Equity research & online media
India Infoline India [Link] India Infoline India Infoline India Infoline
Securities Private Distribution Insurance Commodities Investment
Limited Company Limited Services Limited Private Limited Services Private
• Member BSE, NSE Mobilization of • Member MCX, Limited
• Margin funding &
• Corporate agent
• Equities & personal investment for ICICI Prudential NCDEX Financing
Derivative Broking products like • Commodities • Got NBFC license
Life Insurance
• Depository • Mutual funds Broking
Services • RBI Bonds Company Limited
Membership of Dubai
• Portfolio • Fixed Deposits etc. Gold & Commodities
Management Exchange
Services
Underlying mega
opportunity
Positive macro- economic environment
Sustainable Economic Growth High GDP Growth Rate(1)
10 10 year Real GDP CAGR % Composition of GDP - 2004
One of the fastest growing economies 9 Agriculture
8 Services
Faster GDP growth driven primarily 7
6 Industry
Services sector growing much faster 5
4
Fourth largest economy in the world on 3
PPP(2) 2
1
India outsourcing story gathering 0
Taiwan
Malay
India
Korea
China
Phil
Sing
Thai
HK
Indo
momentum – IT services, financial
Source: CLSA Asia-Pacific Markets
services, healthcare & manufacturing Favourable Shift in Demographics(2)
Infrastructure investment- private push (% Households)
7%
Recent upgrades in sovereign credit High 3.4 5.6 9.0
ratings driven by strong improvement in
10.8 13.8 17.5
external sector and gradual fiscal deficit Upper middle
correction Middle 39.8 37.6 47.9
Largest number of young working class
augurs well for investment services Low 41 31 25
industry 2002 2006E 2010E
Opportunities for ‘Investment Advisory’
services
Household sector contributes ~94% of Falling interest rates
the total domestic savings 25 Prime Lending
Rate
Equities contribute less than 2% of the 20
total savings – set to grow from here
Interest rates have been falling 15
Changing investment habits- From 10
‘lazy’ to ‘advised’
5
0
1991 1993 1995 1997 1999 2001 2003 2005
Median Age of population India has high and growing savings rate
45 35
(Years)
30
40
25
35
20
30 15
10
25
5
20 0
India USA China Russia UK 2000 2001 2002 2003 2004 2005
2000 2025
Industry structure is changing
The Existing structure The Emerging industry order
nt e d, Large national players
me
Frag players
ll
sma
tio n Advice and service
e cu
Ex driven
s
focu
c
s pecifi
du ct One stop
Pro
s investment shops
shop
Broking industry is consolidating
Increasing share of top 25 brokers*
Market share(%) of top brokers on NSE
40 Market share(%) of top brokers on NSE
35
30
Next 15
25
20
Next 5
15
10
Top 5
5
2002 2003 2004 Now
Our evolution
Promoters
Experienced promoters with excellent academic & professional
credentials
Mr. Nirmal Jain- MBA from IIM Ahmedabad
CA ( All India Rank 2)
Cost Accountant
R. Venkataraman- MBA from IIM Bangalore
[Link] (Electronics) from IIT Kharagpur
High quality Private Equity Investors including Intel, ICICI, TDA
Capital, Reeshanar, DSP Merrill Lynch capital & Times Group.
Key milestones
Incorporated on October 18, 1995 as Probity Research & Expanding Pan India footprint
180 +
Services
Launched Internet portal [Link] in May 1999
Commenced distribution of personal financial products like
Mutual Funds and RBI Bonds in April 2000
Launched online trading in shares and securities branded as
[Link] in July 2000
Started life insurance agency business in
December 2000 as a Corporate Agent
Became a depository participant of NSDL in September 2001
Launched stock messaging service in May 2003
Acquired commodities broking license in March 2004
Launched portfolio management services in August 2004
Listed on NSE and BSE on May 17, 2005
Acquired 75% stake holding in Moneytree Consultancy
services in October 2005
Acquired 100% equity of Marchmont Capital Advisors Pvt Ltd
in December 2005
Organization structure
Board of Directors
Managing Director
Nirmal Jain
Executive Director
R. Venkataraman
Channels Products Research Support
Branches Mutual Funds Content Services Finance
Direct Sales Insurance News desk/ websites Technology
Corporate & Institutional 5paisa Market/ Institutional Marketing
FAN & Venue Commodities Audit
PMS Corporate Planning
Online Media/ SMS HR & Training
Customer Service
Compliance
Strong financials
Topline growth Profitability growth
2500 Rs Mn
800 Rs Mn
PBT
700
2000
600 Tax
0%
1500 500 : 21
14 6% GR
GR: 400 CA
CA
1000
300 PBT
PAT
Tax
200
500
100 PBT PAT
PAT
0 0
2004 2005 2006 Mar-04 Mar-05 Mar-06
-100
Business composition EBIDTA & Margins
1000 EBIDTA (Rs Mn) EBIDTA margins 45
900 40
Other Income 800 35
Financing & Investing 700
30
600
Online Media & 25
Content 500
20
400
15
Mutual 300
Funds 200 10
Equities
100 5
Life
Insurance 0 0
Mar-04 Mar-05 Mar-06
Commodities
Our Strategy
Focus on people & processes and not only
performance
People
Driven by owner mindset
Processes to make
Research & Technology second to none
People
Owner mindset is the only test used for
Recruitment,Rewarding as well as Retrenchment
It comes right from the top
Chairman video clip
Processes
Processes focus on making our core competencies
better everyday
It again comes from the top
Director video clip
We are well positioned
Our core competencies
Superior original research
Cutting edge technology
Customer-centric values
Superior original research
Well organized database and well honed skill base
Demonstrated ability to spot trends, winners
ahead of market
Well net worked in Indian Corporate world
Over 200 CEO interviews in a year
Over 300 company/ plant visits
Cutting edge technology
Trader Terminal
A revolutionary way to trade online
Incredible speed of order execution
Streaming quotes
Real time intra day charts
Highly advanced data compression and
management
Trader friendly unique features
Cutting edge technology
Unique delivery model
Multiple access points
Online Offline Over the phone At your doorstep
Middle-office
Risk Management System
Back-office
Funds and Securities accounting and management
Seamless integration using Technology
Customer centric values
Value Addition- Tangible
Product Servicing
Planning Access
Product Integration Information and
& and
Breadth & Integration Account
Advice Delivery
Execution Management
Advice tailored Selection of Ability to Information Channels Customer
to individual products build on and access service and
profiles and brands individual companies, devices account
e.g risk, goals, offered portfolio at markets, supported maintenance
needs, past one place securities,
behavior
Customer centric values
Value Addition- Intangible
Prestige Discretion Security Access To
Globalness
and and and Private Networks,
Recognition Privacy Trust Exclusivity
Satisfaction Maintaining Reassurance Access to Worldwide
from being privacy of that interests special Web based
treated information are protected Opportunities support
with care and usage and
networks
We expanded our product offering to complete the value chain from
awareness to information to decision to action
Our motto
Motto 1 Citius
Faster
Retail is booming
We see a rapid consolidation in the industry
Either grow rapidly or be edged out
Business is constrained not by availability
of customers but by availability of people
and systems
Motto 2 Altius
Higher
Speed by itself will not fetch success
To get into new orbit of growth we have to
fly much higher
We have to raise the bar in every aspect of
our business
Urge to excel and eye on quality alone will
allow sustainable growth
Motto 3 Fortius
Stronger
To fly high and fast, we have to be stronger
We have to face the challenges of
Competition that can be nasty
Environment that can be unpredictable
Regulator that can be very demanding
Profitability alone builds muscles
Robust systems and solid people hold the key
Video Clip
Citius,Altius,Fortius
Welcome to India Infoline!!!