THASMAI AUTOMATION PVT LTD
Agenda • Current Scenario in Market • What works and why? • What is Home automation perceived as, what matters? • How Home Automation market is expected to grow in India • Thasmai Automation’s Approach • Phases & Timelines • Pan-India Growth • Financials
Current Home Automation Market • Average ticket size of 3- 8 lakhs • Brand sensitive, lesser focus on price • High margin segment, but needs individual focus from sales to service
• High end projects with each unit having HA ticket size of 1.2 - 3 lakhs • Low margin, high volumes • Encourage lower priced, local Indian players with good features
Individual Home Owner
Builders segment
Home Automation is considered affordable by Individuals with Net Worth more than 10 crore
People with NW < 10cr, cant relate to HA, other priorities fight over the same budget (Kitchen modules/bathroom fittings/consumer durables).
Currently, there are 1,82,000 millionaire households in India. This number is set to grow to 2,94,000 in next 4-5 years
* Why has Retrofit still not been successful VIS- VIS wired? * Why has affordable not be successful Vis – Vis (Branded/ Costly solution)?
What do people feel about Home Automation?
Perceived as…
Today-DREAM
Future-VALUE
In present scenario, What matters and what doesn’t? What Doesn’t work • Technical features • Value price point
What Works • Finish, Look and feel • Brand Image
Trends in the market today
Lot of Indian start ups are making solutions that are retrofit and have real values at affordable price. Being technology startups, Lot of importance to features, but unimpressive look and feel. Shabby look and feel, unknown/new brand with affordable price point is considered as low quality product. Good solution and reasonable price is still not able to make impact in market. Builders is the only segment that encourages them. Lot of startup are getting into Builder trap (Low margin, Higher risk,)
Why has retrofit not been successful in India yet? • Building a dream home is THE ONLY dream when construction is ongoing/till it is complete • Want all fancy and best things in, at whatever cost. • Owner’s pride/neighbors envy during house warming ceremony or first few days/weeks of occupation or when people visit. Before/During Construction
• After a year, Dream home is no more a dream, whatever component is running, let it go on!!! • No further investment on luxury items unless it is a necessity. (swimming pool, Home theatre) • Headache of high maintenance • People wont spend on luxury of dream for the existing house…. • …. After 5 years, HNI starts dreaming about another dream home After 1-2 years of Living
Timelines or Event is required to push customer (Indian mentality). If there is no hurry, then Chalta hai attitude prevails
No one bothers of adding value to existing building!! Hence, retro-fit HA has not got its real value till date
Summary of HA market in India Home automation is perceived as Luxury and dream… Not a value product yet
Still huge potential in luxury segment to be captured.
Luxury segment yields good profit margins.
Retrofit has not been successful till date. Retrofit will not be successful till Home Automation will be perceived as a Price Value product and not a Luxury
How is HA market expected to grow in India Estimated Market Size- 800-1.1$ Billion Dream
Value
Estimated Market Size- 300$ Million
Estimated Market Size- 3.2$ Billion
Value Dream
Phase 3 Commodity Phase 2 2018to 2021
Value
Dream
2021 onwards
Internet of Things to become mainstream
Phase 1 2015 to 2018
Phase 1
Phase 2
Phase 3
• Offerings don’t cater to mass market • Products with good specs and finish are expensive • Low priced products have shabby look and build
• Big companies like Philips, Siemens will bring out fairly mass market automation products and more people will be able to afford the products • Some players will have niche in high end automation and focus on premium market
• As Automation and IOT becomes commoditized, all major players will have a presence here leading to competition in prices and lower margins • Many (most) houses will incorporate some aspect of Automation in the home
Thasmai Approach to tomorrow’s Automation Boom Phase 1 – Continue to focus on Niche segment . Experience zones across India. Make good profit in Niche Segment Transition to Phase 2: Parallel start working on own solution which will be good mix of Look and feel and has good value to offer.
Phase 2- Leverage on Pan India presence and launch our own good solution. Reach out existing customers with our own brand.
Phase 3- Add more value to the solution as per requirement in that time/age and create big bang visibility in Pan-India market.
Thasmai’ s Growth Model Solution Development team
Big Bang Visibility Team Thasmai Process Management Team
Solution Development team
Centre For Excellence team (COE) Pan India Expansion Team •Sales •Operations •Service
• Will focus on stitching the best solutions from world wide products/services in Automation • Focus on which brands to promote, keep track of global competition
Centre For Excellence team (COE) • Build a strong operations delivery structure • Develop In-house expertise in training, marketing and human resources
Pan India Expansion Team • Focus on sales, operations and service for all new branches opened by Thasmai • Will be responsible for scouting new cities/areas for business development
Branch Expansion Plan across India 23 Branches across 14 cities, to be expanded over 2 years Chandigarh– 1 Branches 2015-16 2016-17
NCR – 3 Branches
2017
Ahmedabad– 1 Branches
Baroda– 1 Branches
Mumbai– 3 Branches Pune– 1 Branches
Bangalore – 3 Branches
Coimbatore – 1 Branches
Kochi– 1 Branches
Nagpur – 1 Branches
Vizag – 1 Branches Hyderabad – 2 Branches Chennai – 2 Branches
Why should you invest with Thasmai? Good partnership with renowned Brands like Philips, JBL, Honeywell, Alba (some of which are exclusive)
ERP. (CRM, Purchase, Operations, Service and Invoicing)
Technical/Soft skill training modules
HR/Organizational policies in place.
3 successful branches in Bangalore
Marketing kit ( Brochures, Corporate video, Demo kit, Personalizer)
Most importantly, A team which has proved itself and are hungry for more challenges!
Returns you can expect with your funding 2015
2018-19
1 city, 3 branches
Over 20 branches across India
Sales target-10 Cr annually with pending OB of 5 Crores
Accumulated Orders of over 100 Crores, net profits of close to 8 Crores
Bangalore’s biggest dealer for Philips, JBL
India’s Biggest dealer for how many brands (?!) Own solution tailored for Indian Marketplace Prime Acquisition target for any new players entering the market Returns of 6-7 X (600-700%) on your investment in just 4-5 years
Sales & Distribution Channels built for Pan-India Huge customer and Architects base Brand equity Working system with all processes set Valuations of at least 70-90 Cr in Market
THASMAI AUTOMATION PVT LTD
