CRM Market – India July 2015
Executive Summary
Market
CRM market in India is valued at ~ INR x bn in 2014 and is estimated to grow at a CAGR of ~ x% over 201419e In terms of CRM adoption, South Indian cities are showing signs of healthy adoption rates followed by North Indian cities
Drivers
Drivers and Challenges
Challenges
– Improved Customer Relationship and Operational Advancement
– Implementation Challenges and Operational Cost
– Growth of Online Retailing
– Lack of Awareness of True Benefits
– Global Competence – Significant Cost Reduction
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
CRM MARKET IN INDIA 2015.PPT
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•Macroeconomic Indicators •Introduction •Market Overview •Types, Modules and Features •CRM Use in SMBs •CRM Selection Criteria •Drivers and Challenges •Key Trends •Scope of CRM in Key Sectors •Competitive Landscape •Strategic Recommendations •Appendix CRM MARKET IN INDIA 2015.PPT
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Macroeconomic Indicators (3/3)
SAMPLE
Lending Rate: Annual x
x
x
x
x
Trade Balance: Annual
x
x
x
x
x
x
x
% Per Annum INR tn
x1
D
2011-12 y1
C x1 B
x3
x4
x2
A
x2 2012-13
2011-12 2012-13 N.B.: 2012-13 encompasses figure for Apr2013-14 – Nov 2012
y2
2014-15
FDI: Annual x3 2013-14 y3
INR bn D
x4
C
2014-15 y4
y2
y3
y4
2012-13
2013-14
y1
B Min
Max
Commercial Bank Rates: Key Lending Rates as Prescribed by RBI (All Commercial Banks including SBI) - Minimum Rate General
A 2010-11
CRM MARKET IN INDIA 2015.PPT
2011-12
4
CRM Adoption Process X
SAMPLE
•X
X
•X
X
•X
•X
X
X
•X
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Over the years, CRM has evolved from point solution to 360 degree enterprise-wide initiative in India
SAMPLE
CRM Market Overview - India
INR bn X
y
a6 X
X
a5
Top 2 players are holding ~a% share in the CRM market
a4
X
a1
X
a2
a3
x z
X 0 2014
• • • •
2015e
2016e
2017e
2018e
2019e
Oracle
Salesforce
Others
XX XX XX XX
CRM MARKET IN INDIA 2015.PPT
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CRM Adoption Rate among Organization of all Size
SAMPLE
Organization Type
Service Industry
Product Industry
X
X-X%
X-X%
X
X-X%
X-X%
X
X-X%
X-X%
• XX • XX • XX
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Increased awareness and interest level of base-level SMBs in technology clearly indicates India's technological progress
SAMPLE ICT Spending Business Challenge Breakup
ICT Spending Business Challenge bn
Y
X X
X
X
X
X
X
X
100.0% Hardware X
IT Services Software Licensing and SaaS
X
X
X
X
X
X
X
X
X
X
X
X
0
0 2014e
• • • •
X
X
X 2014e
2018e
Spending on IT service (implementation, support and training) and Software Licensing and SaaS: XX%
XX XX XX XX
CRM MARKET IN INDIA 2015.PPT
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SMB CRM spending share in the overall SMB software spending
SAMPLE IT Software Business SpendingChallenge - SMBs
CRM Market India Business Challenge Segmentation
0
10
20
30
40
50
60
70
80
90
bn Y 2014
X
Y XX
X Others
Small and Medium Business
CRM spending
Large Business
Note: Base figure = INR X bn
• • • •
XX XX XX XX
CRM MARKET IN INDIA 2015.PPT
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Large presence of SMBs in India proves to be highly beneficial for CRM vendors CRM Implementation Benefits • XX XX
SAMPLE
• XX XX
Some potential benefits of CRM implementation Benefits
Description
X X X
X X X X
X
CRM MARKET IN INDIA 2015.PPT
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CRM Selection Criteria (X/X) IT Manpower
SAMPLE
• XX
User Volume • XX Deciding Factors
Customizability and Integration with other Solutions
• XX
CRM MARKET IN INDIA 2015.PPT
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Enhancement of customer care operations is catalyzing CRM adoption
SAMPLE
Improved Customer Relationship and Operational Advancement
Impact
• XX • XX • XX • XX • XX
X •X •X •X •X X •X •X •X •X
CRM MARKET IN INDIA 2015.PPT
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CRM solutions are used by various highly reputed and respected companies around the globe
SAMPLE
Global Competence
Impact
• XX
Expansion
•X
Achieving Global Standard
•X
Operational Efficiency
•X
CRM MARKET IN INDIA 2015.PPT
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…hinder its adoption in India
SAMPLE
Implementation Challenges and Operational Cost (x/x) Vendor Name
Cost Structure* (Per month/user)
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Note: *Data as of August 2013, Other details have been taken from the website; May vary depending on the requirement SAP does not provide stand alone CRM generally, and it requires a minimum of 15 user subscription Sugra CRM: Price based on an annual subscription with a minimum of five users
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Social CRM offers open-ended interaction among employees and numerous consumers in the social networks
SAMPLE
Introduction of Social CRM Social Social CRM CRM
Social CRM is gaining popularity
•X •X
•X
Traditional CRM
Social CRM
Traditional CRM
X
X
X
Participant
Process and Channel
Time of Interaction
X
X
X
•X •X
Social CRM
•X •X
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Cloud Computing is catching up with the Software-as-aService (SaaS) CRM solution Rising Cloud-based CRM Adoption (x/x)
SAMPLE
Many companies are now implementing on demand CRM for better results Company A •X •X •X Company B •X •X •X •X Company C •X •X •X •X
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Case Study 1
SAMPLE
Client Organization
Industry
IT Vendor
X
X
X
Case: X saves time, increases revenues using SMART CRM Desk CRM
• • • • •
X X X X X
Benefit
Solution
Requirements
• • • • •
X X X X X
• • • • •
X X X X X
Technology Used XX CRM MARKET IN INDIA 2015.PPT
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Porter’s Five Forces Analysis
SAMPLE Impact X
Threat of New Entrants •X
Impact X
Bargaining Power of Suppliers •X
Impact X
Competitive Rivalry
Impact X
Bargaining Power of Buyers •X
•X
Impact X Threat of Substitutes •X
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Competitive Benchmarking (3/3)
SAMPLE
Key Ratios of 3 Major Private Companies – Operational Basis (FY 2014) (x/x) Debtors Turnover Ratio 2012
2013
x
2014
Asset Turnover Ratio
x2
x
x
x
x
x x
x
x1 x2
x1
x3
x3
x Oracle
Salesforce
x1
x2
x3
x
x x
x
SAP
Oracle
Salesforce
SAP
• XX • XX • XX
CRM MARKET IN INDIA 2015.PPT
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Public: Foreign Company – Company A(1/4) Company Information Corporate Address
X
Tel No.
X
Fax No.
X
Website
X
Year of Incorporation
X
Ticker Symbol
X
Stock Exchange
X
SAMPLE Offices and Centres – India
Head Office
Pune
Products and Services Category
Products/Services
Key People
Amdocs Products
X
Name
Designation
X
X
X
X
X
X
X
X Note: The list of products and services is not exhaustive
CRM MARKET IN INDIA 2015.PPT
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Public: Foreign Company – Company A(2/4)
SAMPLE
Financial Snapshot INR bn
Total Income
300 200 100
17.0
156.3
20.7
Key Ratios
Net Profit/Loss 25.8
INR bn
26.1
30 20
172.4
209.6
220.9
10
0
0 2011
2012
2013
2014
Financial Summary
• The company reported total income of INR 220.9 bn in FY 2014, registering an increase of 5% over FY 2012 • The company earned an operating margin of 13.89% in FY 2014, a decrease of 0.48 percentage points over FY 2013 • The company reported debt to equity ratio of 0.06 in FY 2014, an increase of 1.26 per cent over FY 2013
Key Financial Performance Indicators Market Capitalization (INR mn) Total Enterprise Value (INR mn) EPS PE Ratio
y-o-y change (2014-13)
2014
2013
-0.48
13.89%
14.37%
13.57% 12.70%
-0.48
11.83%
12.31%
12.00% 10.89%
-0.47
13.72%
14.19%
13.54% 12.43%
-0.16
12.43%
12.59%
12.90% 11.47%
-0.06
12.44%
12.50%
12.36% 11.15%
0.65
40.52%
39.87%
45.36% 41.77%
9.56%
9.78%
9.53%
2012
2011
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
-0.22
8.72%
-3.23
171.53% 174.76% 159.22% 156.49%
0.48
86.09%
85.61%
86.37% 87.28%
-0.02
12.49%
12.51%
13.08% 12.89%
-0.01
0.10%
0.11%
0.10%
0.09%
-4.97%
2.02
2.12
1.92
1.96
-3.92%
1.19
1.23
1.05
1.16
1.26%
0.06
0.06
0.07
0.08
Cost Ratios
• The company earned a net profit of INR 26.1 bn in FY 2014, as compared to net profit of INR 25.8 bn in FY 2013
Indicators
Particulars
Value (23/06/2014) 546029.19 465229.2 2.88 19.64
Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales)
Liquidity Ratios Current Ratio Cash Ratio
Leverage Ratios Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio
1.18%
0.06
0.06
0.06
0.08
5.13%
142.33
135.38
139.39
140.34
1.57%
12.33
12.14
11.68
12.30
1.18%
0.69
0.68
0.70
0.69
0.27%
1.47
1.47
1.59
1.61
5.17%
2.91
2.77
3.33
3.28
2.64%
0.99
0.96
1.00
0.97
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 2015.PPT
Improved
Decline
21
Public: Foreign Company – Company A(3/4)
SAMPLE
Key Business Segments
Key Geographic Segments
Providing Integrated Products and Services 100%
North America
Europe
Rest of the World
220,625 100%
X
50%
50% 0%
0%
14% 2011
2014
70%
73% 13%
17%
2012
72% 14%
16% 2013
73% 12%
15%
13%
2014
Business Highlights Description
News
Overview
X
Launch
X
Acquisition
X CRM MARKET IN INDIA 2015.PPT
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Private: Foreign Company – Company A – SWOT Analysis (4/4)
SAMPLE
•X
•X
S
W
O
T
•X
•X
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Private: Foreign Company – Company B(1/5) Company Information
Corporate Address
SAMPLE Offices and Centres – India
X Delhi
Tel No.
X
Fax No.
X
Website
X
Year of Incorporation
X Head Office
Products and Services Category
Products/Services
Key People X
X
Name
Designation
X
X
X
X
Note: The list of products and services is not exhaustive
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Private: Foreign Company – Company B(2/5)
SAMPLE
Shareholders of the Company Name
Ownership Structure
No. of Shares held
X
X
X
X
X
X
Foreign Holdings
100%
Note: Shareholding pattern as on AGM dated 29th Sep 2014
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Private: Foreign Company – Company B(3/5)
SAMPLE
Financial Snapshot Total Income
Key Ratios
INR mn
8,000 6,000 4,000
Particulars
Net Profit/Loss INR mn 681.1
590.1
800 600
6,751.1
7,925.4
2,000
400 200
0
0 2013
2014
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
Liquidity Ratios
• The company reported total income of 7,925.4 mn in FY 2014, registering an increase of 17% over FY 2013
Leverage Ratios
• The company reported a current ratio of 0.84% in FY 2014 registering a decrease of 27.48% over FY 2013
2013
2012
2011
-0.92
12.26%
13.18%
N.A.
N.A.
-0.15
8.59%
8.74%
N.A.
N.A.
-0.92
12.26%
13.18%
N.A.
N.A.
-0.97
17.82%
18.78%
N.A.
N.A.
-2.90
25.42%
28.33%
N.A.
N.A.
-375.32% 426.16%
-801.48
N.A.
N.A.
-2.11
15.24%
17.35%
N.A.
N.A.
-9.05
23.66%
32.71%
N.A.
N.A.
0.92
87.74%
86.82%
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
-27.48%
0.84
1.16
2.07
N.A.
-47.10%
0.23
0.43
0.55
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
-22.24%
1.93
2.48
N.A.
N.A.
-5.59%
1.24
1.32
N.A.
N.A.
30.49%
5.80
4.44
N.A.
N.A.
-194.66%
-30.60
32.33
N.A.
N.A.
-3.52%
2.07
2.15
N.A.
N.A.
Cost Ratios
• The company earned a net profit of INR 681.1 mn in FY 2014 as compared to net profit of INR 590.1 mn in FY 2013
• The company earned an operating margin of 12.26% in FY 2014 a decrease of 0.92 percentage points over FY 2013
2014
Profitability Ratios
Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales)
Financial Summary
y-o-y change (2014-13)
Current Ratio Cash Ratio Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio
N.A.
Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover
Improved
CRM MARKET IN INDIA 2015.PPT
Decline
26
Private: Foreign Company – Company B(4/5)
SAMPLE
Business Highlights Description
News
Overview
X
Featured Adobe Products for CRM
X
Launch
X
Strategic Partnership
X
Acquisition
X
CRM MARKET IN INDIA 2015.PPT
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Private: Foreign Company – Company B – SWOT Analysis (5/5)
SAMPLE
•X
•X
S
W
O
T
•X
•X
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Strategic Recommendations (x/x)
SAMPLE
Strategy
Adoption Area
X
•X
X
•X
RegionalX Growth
•X
•X
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