Project Gabriel

Document Sample
Project Gabriel Powered By Docstoc
					Discussion: Business Strategy

Project Gabriel
Key Success Factors
1. Personalized service

2. Efficient back-office processing

3. Active CRM

4. Strong MIS

5. Credible research team
Competition Analysis
1. Increased competition from existing

   and new players

2. Brokerage War

    Not sustainable for new players

    Volume - Price inelasticity

     (Volume function of Capital & Risk Appetite)


3. Past experience of Price Wars
Competition Analysis
4. Lower operating costs (Angel advantage)
          Servicing Bottom of the Pyramid

          High OPM% v/s Competition

                                                                    60%
                                                                    50%
                                                                    40%
                                                                    30%
                                                                    20%
                                                                    10%
                                                                    0%
                                              Angel    Indiabulls
                         Geojit    Emkay
 India        Motilal                        FY'08 E     FY'06
                         FY'07     FY'07
Infoline    FY'07 (9m)
 FY'07
                                      OPM %
Competition Analysis
4. Lower operating costs (Angel advantage)
      Servicing Bottom of the Pyramid

      High OPM% v/s Competition

5. Competitive pricing model replication
Business during Sensex
downturn
1.   Strong economy

2.   Correction, if any, would be short term

3.   Memoirs of 2001

4.   Angel’s gameplan

      Fee based income from large AUMs

      Lesser impact due to increased
       penetration, large client base

      New Client acquisition : ~ 10,000 per
       month
Key Tenets Of Angel’s Strategy

1. Continued focus on retail customers

2. Extensive branch expansion
    Over 180 new planned branch opening by H1 FY10

3. Diversification of financial product offerings
    Margin funding, wealth management, distribution of
     investment and loan products

4. Consolidation
 Key Tenets Of Angel’s Strategy
                                 Continued focus on retail customers (1/2)
             Number of Households                                                   Aggregate Disposable Income
                                     Millions                                                                         Rs Tn
         0                   50                   100                150            0                 10              20           30            40


             1.2                                                                        2.0
             2.4                                                                        1.6
 2005E             10.9                                                     2005E         3.1
                                                  91.3                                                     11.4
                                                     101.1                                      5.4

             3.3                                                                                 6.3
              5.5                                                                         3.8
 2015F                             55.1                                     2015F                                15.2
                                                        106                                                     14.6
                                          74.1                                            3.8

               9.5                                                                                                          21.7
                          33.1                                                                                             20.9
 2025F                                            94.9                      2025F                                                       30.6
                                                  93.1                                                         13.7
                                  49.9                                                   2.6


  Globals (>1,000)          Strivers (500-1000)         Seekers (200-250)    Globals (>1,000)              Strivers (500-1000)     Seekers (200-250)
  Aspirers (90-200)         Deprived (<90)                                   Aspirers (90-200)             Deprived (<90)



Source: McKinsey Global Institute                                           Source: McKinsey Global Institute
Notes                                                                       Notes
Household categorization data denotes annual household                      Household categorization data denotes annual household
income (Rs Thousand in 2000 terms)                                          income (Rs Thousand in 2000 terms)
 Key Tenets Of Angel’s Strategy
                                 Continued focus on retail customers (2/2)
                                 Retail/ Institutional split across countries (2005)

   AuM,2005
                 49.1     22.3   5.3    3.2     2.2      2.2       1.9            1.4      1.4     1.3           1.3           0.17            0.5
(USD trillion)
                                                                     7
                                                                                           25      32
                                                         39                                                                                     40
                 54       51                                                      54
                                 66             68                                                                              60
                                        79
                                                                                                                 88
                                                                   93
                                                                                           75      68
                                                         61                                                                                     60
                 46       49                                                      46
                                 34             32                                                                              40
                                        21
                                                                                                                 12
                 Global




                                                                   Luxembourg




                                                                                                   Switzerland
                                        Japan




                                                         Germany




                                                                                  Canada


                                                                                           Italy
                          US


                                 UK




                                                                                                                 Netherlands
                                                France




                                                                                                                                India (2005)


                                                                                                                                                India(2015)
                                                          Retail %              Institutional %
         Source: Central banks; national accounts; national insurance and asset management associations; BCG analysis.
Key Tenets Of Angel’s Strategy

   1. Continued focus on retail customers

   2. Extensive branch expansion
       Over 180 new planned branch opening by H1 FY10

   3. Diversification of financial product offerings
       Margin funding, wealth management, distribution of
        investment and loan products

   4. Consolidation
Key Tenets Of Angel’s Strategy
                           Extensive branch expansion
                           Angel – Own Branches expansion

      250                                                           234



      200
                                                           170
                                                                     123

      150

                                                             82


      100
                                    74
                                                                      78
                      48
                                     31                      58
       50
                      18
                                     22
                      12                                     18       21
                       6              9
                      12             12                      12       12
       -
                  Mar-07           Mar-08                  Mar-09   Mar-10
    Source: Company
                                    RO      Big   Medium    Small
Key Tenets Of Angel’s Strategy

 1. Continued focus on retail customers

 2. Extensive branch expansion
     Over 180 new planned branch opening by H1 FY10

 3. Diversification of financial product offerings
     Margin funding, wealth management, distribution of
      investment and loan products

 4. Consolidation
   Key Tenets Of Angel’s Strategy
                     Diversification of financial product offerings                                                                CAGR
            Case study: US Consumer financial asset mix, (1982-2002)                                              Cash, Deposits    7%
                                                                                                                  & Others
USD trillion               7.6            11.8            17.2               27.5            29.9
                                                                                                                  Equity            8%
               100

                90                                                                                                Insurance         7%

                80                                                            39                                  Pension           10 %
                                                                                               44
                                                               51
                70                          60                                                                    Mutual Funds      15 %
                            67
                60

                50                                                            23
        %




                                                                                               14
                                                               17                              3
                                                                                                          In 2004, Indian households
                40
                                            12
                                                                              3                           had c. 83% of their
                30                                             3
                            11               3                                                 27         financial assets invested in
                            3                                                 27
                20
                                            21
                                                               24                                         Savings and Mutual Fund
                10          17                                                                            products
                                                                              9                12
                             3               5                 6
                 0
                           1982            1987            1992              1997            2002
                     Mutual Funds     Pension      Insurance        Equity    Cash, Deposits and Others


                       Source: ICI, US Consumer Survey Report, Federal Reserve Bulletin, BCG Analysis
Key Tenets Of Angel’s Strategy

 1. Continued focus on retail customers

 2. Extensive branch expansion
     Over 180 new planned branch opening by H1 FY10

 3. Diversification of financial product offerings
     Margin funding, wealth management, distribution of
      investment and loan products

 4. Consolidation
  Key Tenets Of Angel’s Strategy
                                                             Consolidation
                                     Total number of terminals in a broking houses

Study covered          120
c. 200 equity
broking                100
houses in
India
                         80


                         60


                         40


                         20


                          0
                                 15-20       21-25        26-30      31-35        36-40     41-45   46-50

                                                     Number of broking houses        Cummulative

                Source: “India’s Leading Equity Broking Houses 2007”, Dun & Bradstreet
Q& A
Next Step

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:1
posted:10/8/2012
language:English
pages:16