market research report : crm market in india 2013

CRMMarket IndiaCRM 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– Improved Customer Relationship & Operational

Challenges– Implementation & Operational Cost

Drivers & Challenges

p p pImprovement

– Global Competence

– Significant Cost Reduction

– Technologically Sound Manpower

p p

– Lack of Awareness of True Benefits

Trends Demand for Transparency

Emergence of Mobile CRM

Introduction of Social CRM

Rising Cloud based CRM Adoption

Competition

Major Players

Company A Company B Company C

2

Company D Company E Company F

CRM MARKET IN INDIA 2013.PPT

•Macroeconomic Indicators

•Introduction

•Market Overview

•Types, Modules & Features

CRM U i SMB•CRM Use in SMBs

•CRM Selection Criteria

•Drivers and Challenges•Drivers and Challenges

•Key Trends

•Scope of CRM in Key Sectorsp y

•Competitive Landscape

•Strategic Recommendations

3CRM MARKET IN INDIA 2013.PPT

•Appendix

SAMPLE Economic Indicators (1/3)

INR tn

15 13.9514.12

GDP at Factor Cost: Quarterly

14

13

12

11

13.24

12.13

13.4012.62

11.66

13.0612.2911.5210.70

13.1612.39

11.47

10.58

10

Q4Q3Q2Q12012‐132011‐122010‐112009‐10

Inflation Rate: Monthlyy

0.900.91

0 8

1.0

%

0.450.460.46

0.2

0.4

0.6

0.8

4

0.0

Feb 2013 ‐Mar 2013Jan 2013 ‐ Feb 2013Dec 2012 ‐ Jan 2013Nov 2012 ‐ Dec 2012Oct 2012 ‐ Nov 2012


CRM market is witnessing a steady growth with the increasing trend of CRM spending worldwide

•xx

CRM Market – Overview ‐ Global Market Size and Growth

1 000

INR bnxx% a6

a5

200

400

600

800

1,000 a5a4a3a2a1

0

200

20‐‐e20‐‐e20‐‐e20‐‐e20‐‐e20‐‐

Global CRM Market ‐ Leading Continents Global CRM Market ‐ Leading Sectors


Major Global CRM Vendors

Major Global CRM Vendors ‐Market Share

19% 17% 14%

11%

13%

24%2% 3% 7%

16%

40% 2%2% 3%3%4%

6%

11%

2%3%

4%4%7%

OthersVendor 6Vendor 1

2%3%

Vendor 7Vendor 1

Vendor 10

Vendor 9

Vendor 8

Vendor 7

Vendor 5

Vendor 4

Vendor 3

Vendor 2

Others

Vendor 10

Vendor 9

Vendor 8

Vendor 5

Vendor 4

Vendor 3

Vendor 2

6

Vendor 6


In India, on‐premise solutions have higher traction than cloud solutions unlike developed nations such as US, UK

•xx

Market Overview – India Market Size & Growth ‐ India

15

INR bn

+19.8% a6

5

10

15a5

a4a3

a2a1

0

20‐‐e20‐‐e20‐‐e20‐‐e20‐‐e20‐‐

On‐Premise CRM On‐Demand CRM

Powerful management

tools

Easy to use and fast to

deploy• xx

Completely customizable Managed by business users

Driven By IT Limited functionality


Difficult to use Isolated CRM

CRM adoption by SMBs is facilitated by both private players and…

CRM Adoption – SMBs (2/3)• xx

~xx mn xx mn ~xx mn xx mnTechnology ready addressable market

Technology ready addressable marketaddressable market addressable market

xx SMBs in India currently have Web sites

xx SMBs have Internet access

Addressable Market SMB Segments

xx

xx

xx


xx SMBs using personal computers Segments

xx

xx

Drivers & Challenges

Drivers

Improved Customer Relationship & Operational Improvement

Challenges

Implementation & Operational Cost

Global Competence

Significant Cost Reduction

Lack of Awareness of True Benefits

Technologically Sound Manpower


SAMPLE Trends ‐ Summary

Rising Cloud based CRM Adoption

Demand forTransparencyp p y

Key Trend

Introduction ofSocial CRM

Emergence of Mobile CRM

s


India is becoming a promising market for mobile CRM owing to…

Emergence of Mobile CRM (1/2)

• Finding 1

• Finding 2xx

g

• Sub finding 1

• Sub finding 2

• Sub finding 3

30

Mn Unitsxx% a5

4

Smartphone ‐Market Size (Shipment)

10

20

a4a3

a2

a1

11

0

20‐‐e20‐‐e20‐‐e20‐‐20‐‐


Cloud Computing is catching up with the on‐premise ICT solutions, …

Rising Cloud based CRM Adoption (1/2)• Finding 1 Sub finding 1

xx Sub finding 2

• Finding 2

• Finding 3

• Finding 4 Sub finding 3

IaaSa4%

Market Split – 20‐‐

INR bn

Overall Cloud Computing Market ‐ India

CloudComputing

a1%a3%

a2% 50

100

150

200

b1

52.1% b4

b3b2

12

PaaSSaaS SaaS

IaaS Others

PaaS 0

20‐‐e20‐‐e20‐‐e20‐‐


Major CRM Users ‐ India (1/2)

Key Sectors Users

Sector A

Sector B

Sector C


Case Study 1

Client Organization IT Vendor

xx Smart CRM

Industry

xx

Case: xx

SolutionRequirements Benefit

• xx • xx• xx

Technology Used

14

Technology Used

xx


SAMPLE Porter’s Five Forces Analysis

Threat of New Entrants• xx

ImpactMedium

ImpactHighImpact

Hi h

ImpactLow

Competitive Rivalry• xx

Bargaining Power of Buyers• xx

High

Bargaining Power of Suppliers• xx

Impact

Threat of Substitutes• xx

Low to Medium


Competitive Benchmarking (1/3)

Key Ratios of 3 Major Private Companies – Operational Basis (FY 2012) (1/3)

20 a1

% Net MarginOperating Margin

‐20

0

20 b1a1b3a3

‐40

Company CCompany B

b1a2

Company A

• xx


Public: Foreign Company – Company A (1/4)

Company Information Offices and Centres – India

Corporate Address xx

Tel No. xx

Fax No. xx

Website xx

Year of Incorporation xx

Products and Services

Ticker Symbol xx

Stock Exchange xxHead OfficePune

Key People

Name Designation

Category Products/Services

xx xx

Name Designation

17

Note: The list of products and services is not exhaustive


i i l S h K i

Public: Foreign Company – Company A (2/4)

Financial Snapshot Key Ratios

Particulars y‐o‐y change (2012‐11)

2012 2011 2010 2009

Profitability RatiosOperating Margin 0.87 13.57% 12.70% 13.72% 13.47%

Net Profit/LossTotal Income

172,405.7156,250.3134,680.1138,612.8150 000

200,000 30000

INR mnINR mn

Net Margin 1.11 12.00% 10.89% 11.49% 11.32%

Profit Before Tax Margin 1.11 13.54% 12.43% 12.88% 12.71%

Return on Equity 1.44 12.90% 11.47% 10.65% 10.15%

Return on Capital Employed 1.21 12.36% 11.15% 10.81% 10.44%

Return on Working Capital 3.59 45.36% 41.77% 33.43% 30.76%

Return on Assets 0.80 9.53% 8.72% 8.51% 8.97%

134,680.1

0

50,000

100,000

150,000

0

10000

20000

20‐‐20‐‐20‐‐20‐‐Financial Summary

• 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

• The company reported total income of INR 172,405.7 mn in FY

Return on Fixed Assets 2.73 159.22% 156.49% 158.91% 138.78%

Cost RatiosOperating costs (% of Sales) ‐0.90 86.37% 87.28% 86.25% 86.44%

Administration costs (% of Sales)

0.19 13.08% 12.89% 12.52% 12.03%

Interest costs (% of Sales) 0.01 0.10% 0.09% 0.11% 0.27%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

Interest costs (% of Sales) % % % %

Liquidity RatiosCurrent Ratio ‐2.14% 1.92 1.96 2.20 3.07

Cash Ratio ‐9.57% 1.05 1.16 1.40 1.92

Leverage RatiosDebt to Equity Ratio ‐20.32% 0.07 0.08 0.06 0.00

b i l ia decrease of 20.3 per cent over FY 2011

Key Financial Performance Indicators

Indicators Value (16/05/2013)Market Capitalization (INR mn) xxTotal Enterprise Value (INR mn) xx

Debt to Capital Ratio ‐19.05% 0.06 0.08 0.06 0.00

Interest Coverage Ratio ‐0.68% 139.39 140.34 130.94 49.34

Efficiency RatiosFixed Asset Turnover ‐4.99% 11.68 12.30 11.55 10.24

Asset Turnover 1.99% 0.70 0.69 0.62 0.66

Current Asset Turnover ‐0.91% 1.59 1.61 1.33 1.53

18

EPS (INR) ‐ 20/05/2013 xxPE Ratio (Absolute) ‐ 20/05/2013 xx

Working Capital Turnover 1.40% 3.33 3.28 2.43 2.27

Capital Employed Turnover 3.46% 1.00 0.97 0.87 0.89

Improved DeclineNote: Financials of the parent company (Amdocs Ltd. NYSE:DOX) has been provided


SAMPLE Public: Foreign Company – Company A (3/4)

Key Business Segments Key Geographic Segments

100%

Segment A

100%

Segment C

Segment B

Segment A

Segment D

0%

50%

100%

100%

0%

50%

100%

a1%b2%a2%

b3%

a3%

a4%

d1%c2%

c3%

d2%b1%

d3%

c1%

Segment A has been the only revenue generating

segment for Amdocs during 2009‐12

Business Highlights

0%

20‐‐

0%

20‐‐ 20‐‐20‐‐ 20‐‐

Description News

Overview • xx

Launch • xx


Private: Foreign Company – Company A – SWOT Analysis (4/4)

• xx • xx

WS

TO

• xx• xx


Major Private Companies ‐ Summary

3,000

3,500

Net Profit/Loss

Size of the Bubble represents Total Assets in INR mn

2,000

2,500

t1

1,000

1,500

t2

0

500

t3

t5t4

‐500

0 5,000 10,000 15,000 20,000

Total income

Company ECompany CCompany A

21

Note: All figures are in INR mn and are based on the latest financials available


Company E

Company D

Company C

Company B

Company A

Strategic Recommendations (1/2)

Strategy Adoption Area

• xxxx • xx

xx • xx

Regional GrowthxxRegional Growthxx • xx

22

• xx


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market research report : crm market in india 2013

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