CRM Market India CRM Market ‐ India May 2013
Executive Summary
Market
CRM market in India is valued at around INR xx bn in 2012 and is estimated to grow at a CAGR of around xx% between 20‐‐ to 20‐‐ xx stands out as the largest procurer in the CRM market in India xx are the major implemented CRM solutions followed by xx etc
Drivers
Drivers & Challenges
Challenges
– Improved Customer Relationship & Operational p p p Improvement
– Implementation & Operational Cost p p – Lack of Awareness of True Benefits
– Global Competence – Significant Cost Reduction – Technologically Sound Manpower
Trends
Demand for Transparency
Introduction of Social CRM
Emergence of Mobile CRM
Rising Cloud based CRM Adoption
Major Players
Competition
Company A
Company B
Company C
Company D
Company E
Company F
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•Macroeconomic Indicators •Introduction •Market Overview •Types, Modules & Features •CRM Use in SMBs CRM U i SMB •CRM Selection Criteria •Drivers and Challenges •Drivers and Challenges •Key Trends •Scope of CRM in Key Sectors p y •Competitive Landscape •Strategic Recommendations •Appendix CRM MARKET IN INDIA 2013.PPT
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SAMPLE
Economic Indicators (1/3) GDP at Factor Cost: Quarterly INR tn 15 14
13.16 12.39 11.47 10.58
13 12 11
14.12 13.40 12.62 11.66
13.06 12.29 11.52 10.70
13.95 13.24 12.13
10 Q1
Q2 2009‐10
2010‐11
2011‐12
Q3 2012‐13
Q4
Inflation Rate: Monthlyy % 0.91
1.0
0.90
08 0.8 0.6
0.46
0.46
Oct 2012 ‐ Nov 2012
Nov 2012 ‐ Dec 2012
0.45
0.4 0.2 0.0
Dec 2012 ‐ Jan 2013 CRM MARKET IN INDIA 2013.PPT
Jan 2013 ‐ Feb 2013
Feb 2013 ‐ Mar 2013 4
CRM market is witnessing a steady growth with the increasing trend of CRM spending worldwide CRM Market – Overview ‐ Global
Market Size and Growth
• xx
INR bn xx%
1 000 1,000 800
a1
a2
a3
20‐‐
20‐‐e
20‐‐e
a4
a5
a6
600 400 200 0
Global CRM Market ‐ Leading Continents
CRM MARKET IN INDIA 2013.PPT
20‐‐e
20‐‐e
20‐‐e
Global CRM Market ‐ Leading Sectors
5
Major Global CRM Vendors Major Global CRM Vendors ‐ Market Share
19%
14%
17%
13% 11%
16%
6%
24%
40%
2% 3% 7% 2% 4% 4% 3%
Vendor 1
Vendor 6
Vendor 2
2% 2% 2%
Others
3% 4% 3%
Vendor 1
Vendor 7
Vendor 7
Vendor 2
Vendor 8
Vendor 3
Vendor 8
Vendor 3
Vendor 9
Vendor 4
Vendor 9
Vendor 4
Vendor 10
Vendor 5
Vendor 10
Vendor 5
Others
Vendor 6
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In India, on‐premise solutions have higher traction than cloud solutions unlike developed nations such as US, UK Market Overview – India • xx
Market Size & Growth ‐ India INR bn a6
+19.8%
15 10
a1
a2
a3
a5 a4
5 0
20‐‐
20‐‐e
On‐Premise CRM • xx
20‐‐e
20‐‐e
20‐‐e
20‐‐e
On‐Demand CRM
Powerful management tools
Easy to use and fast to deploy
Completely customizable
Managed by business users
Driven By IT
Limited functionality
Difficult to use
Isolated CRM
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CRM adoption by SMBs is facilitated by both private players and… CRM Adoption – SMBs (2/3) • xx
~xx mn
xx mn
Technology ready addressable market addressable market
~xx mn
xx mn
Technology ready addressable market addressable market
xx
xx SMBs in India currently have Web sites xx SMBs have Internet access xx SMBs using personal computers
Addressable Market SMB Segments
xx xx xx xx
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Drivers & Challenges
Drivers
Challenges
Improved Customer Relationship & Operational Improvement
Implementation & Operational Cost
Global Competence
Lack of Awareness of True Benefits
Significant Cost Reduction Technologically Sound Manpower
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Trends ‐ Summary
SAMPLE
Rising Cloud based p CRM Adoption
Demand for Transparency p y
Key Trend s Introduction of Social CRM
Emergence of Mobile CRM
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India is becoming a promising market for mobile CRM owing to… Emergence of Mobile CRM (1/2) • Finding 1 • Finding 2 g
xx
• Sub finding 1 • Sub finding 2 • Sub finding 3
Smartphone ‐ Market Size (Shipment) Mn Units xx%
30
a2
20 10
a3
a4 4
a5
a1
0
20‐‐
20‐‐
20‐‐e
20‐‐e
CRM MARKET IN INDIA 2013.PPT
20‐‐e 11
Cloud Computing is catching up with the on‐premise ICT solutions, … Rising Cloud based CRM Adoption (1/2) • Finding 1 Sub finding 1 Sub finding 2
xx
• Finding 2 • Finding 3 • Finding 4 Sub finding 3
Market Split – 20‐‐ IaaS
Overall Cloud Computing Market ‐ India INR bn
a4%
200
a1%
a3% Cloud Computing
SaaS
52.1%
150
b3
100
a2% PaaS
50
SaaS
PaaS
IaaS
Others
CRM MARKET IN INDIA 2013.PPT
b4
b1
b2
0
20‐‐
20‐‐e
20‐‐e
20‐‐e 12
Major CRM Users ‐ India (1/2) Users
Key Sectors
Sector A
Sector B
Sector C
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Case Study 1 Client Organization
Industry
IT Vendor
xx
xx
Smart CRM
Case: xx
• xx
Benefit
Solution
Requirements
• xx
• xx
Technology Used Technology Used xx CRM MARKET IN INDIA 2013.PPT
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SAMPLE
Porter’s Five Forces Analysis
Impact Medium Threat of New Entrants • xx
Impact Low
Bargaining Power of Suppliers • xx
Impact Hi h High
Competitive Rivalry
Impact High
Bargaining Power of Buyers • xx
• xx
Impact Low to Medium Threat of Substitutes • xx
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Competitive Benchmarking (1/3) Key Ratios of 3 Major Private Companies – Operational Basis (FY 2012) (1/3) Operating Margin
% a1
20
Net Margin a3
b1
b3
0 ‐20 ‐40
a2 Company A
b1 Company B
Company C
• xx
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Public: Foreign Company – Company A (1/4) Company Information Corporate Address
xx
Tel No.
xx
Fax No.
xx
Website
xx
Year of Incorporation
xx
Ticker Symbol
xx
Stock Exchange
xx
Offices and Centres – India
Head Office
Pune
Products and Services Category
Products/Services
xx
xx
Key People Name
Designation
Note: The list of products and services is not exhaustive CRM MARKET IN INDIA 2013.PPT
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Public: Foreign Company – Company A (2/4) Financial Snapshot i i lS h Total Income
INR mn 200,000 150 000 150,000
138,612.8
134,680.1
K Key Ratios i Net Profit/Loss INR mn 156,250.3
172,405.7
30000 20000
100,000 50,000
10000
0
0
20‐‐
20‐‐
20‐‐
20‐‐
Financial Summary
• The company reported total income of INR 172,405.7 mn in FY 2012, registering an increase of 10.3% over FY 2011 • The company earned an operating margin of 13.6% in FY 2012, an increase of 0.87 percentage points over FY 2011 • The company reported debt to equity ratio of 0.07 in FY 2012, a decrease of 20.3 per cent over FY 2011 a decrease of 20.3 per cent over FY 2011
Key Financial Performance Indicators Market Capitalization (INR mn) Total Enterprise Value (INR mn) EPS (INR) ‐ 20/05/2013 PE Ratio (Absolute) ‐ 20/05/2013
y‐o‐y change 2012 (2012‐11)
2011
2010
2009
Profitability Ratios Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed Return on Working Capital Return on Assets Return on Fixed Assets
0.87
13.57%
12.70%
13.72%
13.47%
1.11
12.00%
10.89%
11.49%
11.32%
1.11
13.54%
12.43%
12.88%
12.71%
1.44
12.90%
11.47%
10.65%
10.15%
1.21
12.36%
11.15%
10.81%
10.44%
3.59
45.36%
41.77%
33.43%
30.76%
0.80
9.53%
8.72%
8.51%
8.97%
2.73
159.22%
156.49% 158.91% 138.78%
‐0.90
86.37%
87.28%
86.25%
86.44%
0.19
13.08%
12.89%
12.52%
12.03%
0.01
0.10% %
0.09% %
0.11% %
0.27% %
‐2.14%
1.92
1.96
2.20
3.07
‐9.57%
1.05
1.16
1.40
1.92
‐20.32%
0.07
0.08
0.06
0.00
‐19.05%
0.06
0.08
0.06
0.00
‐0.68%
139.39
140.34
130.94
49.34
‐4.99%
11.68
12.30
11.55
10.24
1.99%
0.70
0.69
0.62
0.66
Cost Ratios
• The company earned a net profit of INR 20,687.9 mn in FY 2012, as compared to net profit of INR 17,012.6 mn in FY 2011
Indicators
Particulars
Value (16/05/2013) xx xx xx xx
Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales) Interest costs (% of Sales)
Liquidity Ratios Current Ratio Cash Ratio
Leverage Ratios Debt to Equity Ratio Debt to Capital Ratio b i l i Interest Coverage Ratio
Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover
Note: Financials of the parent company (Amdocs Ltd. NYSE:DOX) has been provided CRM MARKET IN INDIA 2013.PPT
‐0.91%
1.59
1.61
1.33
1.53
1.40%
3.33
3.28
2.43
2.27
3.46%
1.00
0.97
0.87
0.89
Improved
Decline
18
SAMPLE
Public: Foreign Company – Company A (3/4) Key Business Segments
Key Geographic Segments
Segment A 100% 50%
Segment A
Segment C
Segment B
Segment D
100%
100%
Segment A has been the only revenue generating segment for Amdocs during 2009‐12
a4%
0%
0%
a3% a1% 20‐‐
20‐‐
a2%
b1% 20‐‐
d3%
c3%
b3%
50%
b2%
c1% 20‐‐
c2%
d1%
d2%
20‐‐
Business Highlights Description
News
Overview
• xx
Launch
• xx
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Private: Foreign Company – Company A – SWOT Analysis (4/4)
• xx
• xx
S
W
O
T
• xx
• xx
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Major Private Companies ‐ Summary Net Profit/Loss 3,500
Size of the Bubble represents Total Assets in INR mn
3,000
t1 2,500 2,000 1,500 1,000
t2 500
t3 0
t4
t5
‐500 0
5,000
10,000
15,000
20,000
Total income Company A Company A
Company C Company C
Company B
Company D
Company E Company E Note: All figures are in INR mn and are based on the latest financials available CRM MARKET IN INDIA 2013.PPT
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Strategic Recommendations (1/2) Strategy
Adoption Area
xx
• xx
xx
• xx
Regional Regional Growth xxGrowth
• xx
• xx
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