WINTER INTERNSHIP PROGRAM

Project Title

Industry Analysis to cater the clients’ requirements for M&A, PE/VC fund Raising

Prepared by:
Chetna Sood
MBA17H08
Objectives of Presentation

• Introduction to banking sector

• Current trends for banking sector

• About DCB Bank

• Project description

• Work flow

• About various sectors

Banking Sector
Banking sector is the section of the economy devoted to hold the financial assets for others, investing those
financial assets as leverage to create more wealth.

Highlights of Banking Sector

• During FY06–17, deposits grew at a CAGR of 12.03 per cent

• Strong growth in savings amid rising disposable income levels are the major factors influencing deposit growth

• Access to banking system has also improved over the years due to persistent government efforts to promote banking-technology
and promote expansion in unbanked and non-metropolitan regions

• Deposits under Pradhan Mantri Jan Dhan Yojana (PMJDY), have also increased. As on November 9, 2016, US$ 6,971.68 million
were deposited, while 255.1 million accounts were opened
Trends and Prediction for 2018
Expanding Use of Data
Expansion of Digital
and Advanced Analytics
Payments

Exploring
Improving Multichannel Advanced
Delivery Technologies
 About DCB Bank (1/3)
• DCB Bank is a modern emerging new generation private sector bank with
311 branches across 19 states and 3 union territories. It is professionally
managed and governed. DCB Bank has comprehensive range of products
and services, contemporary technology and infrastructure including state
of the art internet and mobile banking.
• It is a scheduled Commercial Bank regulated by the Reserve Bank of
India.
• DCB Bank is promoted by the Aga Khan Fund for Economic Development
(AKFED)

At a Glance Category No. of Branches %

Metro 95 30
Branches 311
Urban 74 24
ATMs 530 Semi Urban 78 25
Rural 64 21
Networks* 35,000+
Total 311 100
*DCB Bank customers are able to access VISA ATMs across the world
About the Bank (2/3)
 Who are there customers?
Self Employed / Small Business
 Trader
 Gold Trader
 Vegetable Trader
 Commission Agent
 Retailer
 Restaurant Owner
 Consultant
 Doctor
 Contractor
 Interior Decorator
 Software Designer
 Salon, Beauty Parlor
 MSME and SME Opportunity
 MSME play a pivotal role in the economic and social
development of the country.
 Number of Working Enterprises – 51 million, Employment – 117
million
 Urban – 45%, Rural – 55%
 Manufacturing – 32%, Service – 68%
 Sole Proprietor – 94%
 51% of Indian workforce is self employed
About the Bank (3/3)
Business Strategy Four pillars of digital agenda

• Core Applications – continuously

upgrade business applications to
Rely mainly on Retail Deposits support digital transformation
Concentrate on Tier 2 to Tier
(term, CASA). Grow NRI deposits.
6 LOCATIONS.
Limit dependency on bulk.

• Mobile / Tab – create customer

convenience by optimum use
Grow Retail Mortgages, MSME, of mobile devices
SME, Commercial Vehicle, Tractor
Finance, Gold Loan, Mid-
Corporate and Agri Loan

• Payments – innovative solutions

Invest heavily on customer
facing and fortline enabling
technologies
that are dynamic, secure and
fast
Partner with select “start-up”
companies on disruptive
technologies • Infrastructure – modernize to
support business growth in a cost
effective and secure manner
Investment Banking
What is investment banking?
Investment banking is a special segment of banking operation that helps individuals or
organisations raise capital and provide financial consultancy services to them.

Roles of Investment Banker

Arranging Finance

Underwriting Deals

Private Placements

The Bottom Line

Mergers and Acquisitions

Project Description
Project Title
Industry Analysis to cater the clients’ requirements for M&A, PE/VC fund raising

Aim
To pitch companies for M&A transaction or PE/VC fund raising

Company Description
Investment banking segment of DCB Bank provides various services to its clients i.e. preparation of project, financial
advisory, financial modeling, M&A transaction deals and PE/VC fund raising.
Tasks  Daily task  Project Preparation
• Data base creation • Client presentation
• Cold calling • Teaser of the companies
• Fixing meeting with promoters • Meeting with the clients and
• Meeting with the clients understanding the business model
Responsibilities
• To collect primary data for the clients of the various opportunities i.e. M&A transactions or PE/VC fund raising
• Identify opportunities for the company
• Secondary data for the companies listed was jot down i.e. companies name, location, sales, profit, corporate
office, promoters name, promoters e-mail id
• The main objective was to fix meeting with the promoters of the company
• Preparation of teaser of the company
• Sector report and a presentation preparation to pitch various companies
Work Flow

Homework before meeting Understanding the company, its

Meeting with Promoter or CFO
corporate business model

Checklist of information Promoter future plans and their

Appraisal of the proposal
required vision

Clearance by risk, legal and Presented to the sanctioning Approved/ deferred/ rejected
compliance forum
Project Description
Sectors worked upon

Amusement Park
Logistic Sector
Sector

Solar Power
IT & ITeS Sector (renewable)
energy Sector
Project Description
Logistic project

Website
Name Year of Inception http://marinetrans.in/
XYZ India Private Limited started its operation in 2004

Services
Broad revenue breakup region wise • FCL
Debt till date • African Countries – 40% • LCL
• Term Loan: 1.5 Crore • European Countries – 35% • 3PL
• Working Capital: 5 Crore • Middle East & Gulf Countries – 15% • project handling
• other countries – 10% • Warehousing
• break bulk handling
• sea-air shipments

Offices
• Mumbai
Global Country Presence
• Hyderabad
• African countries
• Chennai
• European countries
• Ahmedabad
• South America
• Vizag
• Gulf countries
• Tuticorin
• Middle East. • Krishnapatnam
Project Description
Services

Freight it easy to book the shipment, consignment tracking, consolidation, custom clearance and other documentation handling.

Sea-Air Shipment XYZ meticulously goes over all the details of cargo handling depending on the requirement of the project.

Project handling ability to handle any situation under the sun and undying urge to excel is a yardstick in the service industry.

Logistic is the part of supply chain management that plans, implements, and controls the efficient,
effective forward, and reverse flow and storage of goods, services.

Warehousing services are flexible to incorporate the varied destinations of delivery.

Import export is consolidation of commercial, personal cargo and project

cargoes. There is hassle free delivery anywhere in the world.

Cross Trade XYZ offers a geographically elaborate cross-trade cross-

trading and there is flawless Documentation, infallible
transportation and spot-on delivery for shipments.

Transportation handle 1 lakh tons on an average

which includes break bulk movement, Containerized
cargo movement and railway wagon handling.
Project Description
• Implementation of Goods and Service Tax
 Currently, small warehouses are operated for distribution this leads to
inability to achieve scale with pilferage at multiple levels.
 The GST will give way to a large hub (prevalent in developed
countries) with large automated warehouses aided by technology to
achieve economies of scale.
 The hub will enable optimal use of transportation with room for
reverse logistics as well.

• Integrated Supply Chain Service Provider

i) Shift from 80-20 to 65-35
ii) Unorganized Sector & Asset Lean Business Model

 Perpetual costing has shifted from 80% of fuel

consumption to 65% consumption. While, 20% storing
cost to 35% with value added services
 Benefit of the integrated supply chain service provider to
outsourcing partners.

Source: KPMG Analysis

Project Description
• Infrastructure Development
i) Road Development
ii) Dedicated Freight Corridors/DMIC
iii) Inland Waterways Development

 The Government has set a target of constructing 15,000 km of roads

in FY 2017-18 with budgetary allocation of close to USD 14 billion for
the year.
 the Government is committed to developing three additional freight
corridors i.e. (1) East-West Corridor (Kolkata-Mumbai, 2328 kms) (2)
North-South Corridor (Delhi-Chennai, 2,343 kms) and (3) East Coast
Corridor (Kharagpur- Vijayawada, 1,114 kms).
 the Government announced 106 new national waterways through
enactment of the National Waterways Act. This will help realize the
potential of inland waterways

• “TECHNOGISTIC Powered” – Technology Reshaping

Existing Delivery Systems

 Cloud based systems

 The role of robotics has enabled round-the-clock
operations

Source: KPMG Analysis

Project Description
• E-Commerce and Emerging Logistics Channels

 Players like Delivery, Xpressbees, Shadowfax and loadshare

extended there offering from B2C to B2B channel.
 These companies have attracted significant PE capital as
growth trajectory forecasted to rise on the back of growing
market size.

• Green Transition

 Reverse logistics has become an integral part of e-

commerce transactions.
 In developed countries, manufacturing units follow
stringent norms with regards to recycling and disposal
of residual plant waste and which would be prevalent
in India as well.

Source: KPMG Analysis

 Project Description
• 34 mega multi-modal logistics parks

 Logistic parks are initiated by an investment of Rs 2 lakh crore by

government.
 Parks would help private cos reduce warehousing cost.
 Logistics parks will act as freight aggregation and distribution hubs
and enable long haul freight movement.

• Key announcement
Roads and rail:

 The government allocated INR

64,900 crore towards the development of national highways
 The pace of construction of rural roads has increased to 130 km per day from 73
km per day
 Rolling stocks and practices to be customized to transport perishable goods,
especially the agricultural products

Ports

 The government allocated INR 600 crore for the Sagarmala project .
 Further, the government has identified 2,000 km of coastal roads to be developed
to facilitate hinterland connectivity with ports and remote villages and accelerate
the development of Coastal Economic Zones under the Sagarmala project.

• In the future, warehousing and logistics are likely to find good a foothold in emerging urban and semi-urban centers.
• Developers and several foreign private equity players are now foraying into warehouse developments across Indian cities, coming up with large-scale, high-
tech warehousing/logistics spaces with state-of-the-art facilities.
Project Description
Company Investor Date Type Deal Value
Delhivery Carlyle Mar-17 PE USD 100 mn
Sohanlal Commodity Incofin, ResponsAbility
MAR-17 PE Takeout USD 20 mn
Management Investments
Blackbuck SandCapital, IFC Feb-17 PE USD 30 mn
Sri Kailash Logistics Everstone Capital Jan-17 PE USD 30 mn
Letstransport GMO Jan-17 Strategic USD 4 mn
Stellar Value Chain Solutions
Kelvin Cold Chain Jan-17 Strategic Undisclosed (majority stake)
Pvt Ltd
Rivigo Warburg Pincus Nov-16 PE USD 75 mn
Browntape Technologies Pvt.
Gati Ltd Nov-16 Strategic USD 3 mn
Ltd,
TVS Logistics CDPQ Oct-16 PE takeout USD 155 mn
FR8 Omnivore Partners Oct-16 PE USD 10 mn
ETA Engineering Pvt Ltd Vikram Logistics Aug-16 Strategic USD 21 mn
SAIF Partners, IDG Ventures,
Xpressbees Vertex Ventures and Valiant Feb-16 PE USD 12.5 mn
Capital
Shadowfax Eight Roads Ventures Dec-16 PE USD 10 mn
loadshare Matrix partners India May- 17 VC Undisclosed
Project Description
Project Description
Company Location Sales PAT Office Contact Promoter Promoter’s Credit rating

e-mail id

Seabird Marine Services Mumbai 1,603.14 727.90 022-543789 SURYAKANT MULJI PAREKH, ketan@seabirdcsf.com A+ CARE RATING
Private Limited NARESH KHATAU PAREKH,
BHAGWANDAS MULJI PAREKH

Seaways Shipping and Mumbai 4053.15 167.43 022-764532 PARVATANENI VENKATA KRISHNA sarat@seawaysindia.com A CARE RATING
Logistics Limited MOHAN ( MD )
sarat kumar ( director& finance
head)

DelEx Cargo India Private Delhi 4821.50 120.40 011-3458938 KAMAKSHAMMA NAIDU ktsmurti@delex.com A+ CARE RATING
Limited VIJAY DAULATRAO SHINDE 502 - extension no.
Mr. N. Amrutesh Reddy

AS Transport Private Chennai 2,130.00 29.00 022-23740682 / Iqbal Rahman Iqual.raman@aslogistic.com BB Care Rating
Limited 23733796 Mrs.Margaret Rahman
Project Description
IT & IteS Sector
Products
Name Key customers • GST filling
ABC Labs Private Limited Individuals, Corporates • Dashboard
• Cloud solution
• Business
• Secure
• Multi user
• support

Year of Incorporation
Incorporated on 20 February 2017 Business segment No. Of Employees
IT and ITes sector 30 Employees

Website
Headquarter
www.abc.com Hyderabad
Project Description
Dashboard
Reports and statistics generation for easy tracking of your cash flow

GST Filing
Completely compliant will all the GST filing needs and guidelines issued by the government.

Cloud Solutions
Remain notified about all your inventory, cash flow and payments.

Support
Company is always be one mail away.

Secure
All your personal and business information will always be safe with us

Business
Maintain client data effectively and record payments and
their GSTIN seamlessly
Project Description ( Future of IT & ITeS sector)
Enterprises driving the Digital Agenda Digital Economy as a Digital Economy as a growth enabler
growth enabler
Mobile banking transactions’ volume: Increase by
40X in last 3 years
• 2/3rd of private banks & ~20-30% of public banks to adopt digital
technologies in 2-5 years
eComm: $33 bn (FY2017);
YoY growth of 19%
• As per Gartner’s 2016 CIO Survey, 20% of Indian firms opting for CDO
roles c ompared to 9% globally
Digital transactions:
USD ~9 billion nos. (FY2017)
CAGR 50% (FY2014-17)

Progressive Policies Growing Internet Economy key to success

100 nos. by 2020
INR 2 billion/city/year 432 mn Internet subscribers
2nd largest after China
Vision to be a trillion Dollar Digital
economy by 2022 (Government data) 300+ mn smartphone users
800+ mn by 2020
4,750+ nos.
~USD 4 bn funding Growing Internet >6 bn Google Play downloads ,
(2016) India surpassed the US

• Multiple initiatives such as demonetization, Goods and Services Tax and adoption of Aadhaar for various government services and schemes have boosted the Digitalization in
India.
• IT services continue to exhibit strong growth by approximately 15.1% in 2018.
Project Description (Porters’ five force model for IT & ITeS Sector)

Threat of Substitutes Bargaining Power of Buyers

• Medium – Threat is medium as new • High – Bargaining power is high

centers, such as Philippines and China, as many IT firms fight for a
are fast gaining ground among similar project.
investors due to their low cost • Firms are mostly dependent on
advantages Competitive Rivalry same geography, which
increases customer power

• High – Intense competitive rivalry

exists due to low switching costs
• Most of the bigger Indian firms offer
same services and there is little
product differentiation Threat of New Entrants
Bargaining Power of Suppliers High
• Easy entry as the capital
• Low– Bargaining power of suppliers is required is low.
less as most of their businesses come • Large players, however,
from the same geographies. tougher prospects of small
• Price taker rather than price maker and medium players to win
large deals.
Project Description
Company Industry Investors Amount (USD mn)

One97 Communications IT & ITeS SoftBank Corp 1,400

Tata Technologies IT & ITeS Warburg Pincus 360

Aegis BPO IT & ITeS Capital Square Partners 275

Swiggy.com IT & ITeS SAIF, Norwest, Accel India, Harmony 80

Partners, Bessemer, Naspers
Mphasis Ltd. IT & ITeS Blackstone Advisors India 825

Paytym Mobile wallet SAIF, Alibaba, MediaTek 300

Billdesk Online services ( bills payment) General Atlantic, Temasek 171

IT & ITeS companies attracted $4.45 billion in Private Equity investments (30% of the overall investments) across 359 transactions.
IT & ITeS companies accounted for the highest share of private equity investment in India 2016.
Project Description (Amusement Parks Sector)
Opportunities For Amusement Parks In India

• Currently for a population of 1.15 billion in the country, there are only 120 amusement parks and 45 Family Entertainment Centers.
This indicates that the growth potential of Indian amusement and theme park industry is substantial.

• Transport corridors like expressways and the Metro line are bringing an increasing number of people closer to entertainment hubs.

• The Indian gaming market is on the path of maturity, income levels are rising and people want to have a fun life.
 Globally, domestic and international tourists comprise more than 50% of the total footfall at popular amusement parks

• The foreign companies reportedly interested in the Indian amusement parks market include Universal Studios, Time Warner and
Disney.
 The Indian small and big players in the Amusement Industry are looking at the tremendous growth potential of this industry in the
next 5 years

 The amusement and theme park industry is deemed to be worth Rs.10000 crores in India by 2020

Sources: http://insightalpha.com
Project Description
Location

WATER PARK DISTANCE FROM THANE RAILWAY STATION

 Generally, people of India prefer to travel to long distance away
Water Kingdom 43.8 km
from the hassle and bustle of the cities. Most of the world parks/
Essel World 43.7 km

amusement parks are located outskirts of the main city. The

Adlabs Aquamagica 68.8 km

Great Escape Water Park 43.9 km major reason is total area to set up these parks are huge and you

Nishiland Water Park 56.8 km can’t find place within city limit.
Shangrila Resorts and Water Park 27.4 km
• There are numerous waterparks located in and around Mumbai
Suraj Water Park 7.8 km
and there is a cut throat competition in this industry. So to
Tikuji-ni-wadi 8.3 km

Ammu Water Park and Resort 37 km

analysis the distance of some of the waterparks in the radius of 80

Anand Sagar Water Resort 30 km -90 kms from Thane railway station which is one of the major

Royal Garden Water Resort 24 km stations in Mumbai

Project Description
Target Industrial Area In The Location
REGIONAL AREA NO. OF INDUSTRIAL AREAS APPROXIMATE INDUSTRIES (
all type of industries)
• 5500 companies employ around 50 people that would come
THANE 1 6 2,600
out to be 275000 employees in the respective areas. Keeping
THANE 2 6 1,300 this in view even if 5% of the total market i.e. 13750 will be
attracted by the refreshing environment of the amusement
NASHIK 16 1,600 park, to burst out their stresses at work.
Grand total 28 5,500

TARGET MARKET
PARAMETERS VASIND PALGHAR THANE

Total Population 100,000 68,930 1,886,941

Population under 8 years (%) 16 14 10
Average literacy rate (%) 74% 77.52% 91.36%
Public Schools 15 20 98
Private Schools 5 20 200
Waterparks 4 3 9
Hotels 16 37 632
Companies 10 500 4000
Project Description
Positioning
Learnings

 Homework is must before meeting the promoter

 Being confident
 learn that one should have that tactics and skills to covert a call in a value
adding proposition
 plan and execute to convert leads in conversion