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

Individual Home Owner

• 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

Builders segment

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

People with NW < 10cr, cant relate to HA, other priorities fight over the same

budget (Kitchen modules/bathroom fittings/consumer durables).

Home Automation is considered affordable by Individuals with Net

Worth more than 10 crore

* 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?

Today-DREAM Future-VALUE

Perceived as…

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

No one bothers of adding value to existing building!! Hence, retro-fit HA has not got its real value till date

Timelines or Event is required to push customer (Indian mentality). If there is no hurry, then Chalta hai attitude prevails

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

Phase 1 2015 to 2018

Phase 2 2018to 2021

Phase 3 -Commodity

2021 onwards

Dream

Value Dream

Value Dream

Value

Phase 1

• Offerings don’t cater to mass market

• Products with good specs and finish are expensive

• Low priced products have shabby look and build

Phase 2

• 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

Phase 3

• 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

Estimated Market Size- 300$ Million

Estimated Market Size- 800-1.1$ Billion

Estimated Market Size- 3.2$ Billion

Internet of Things to become mainstream

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

Thasmai Process

Management Team

Solution Development

team

Big Bang Visibility

Team

Pan India Expansion Team

•Sales

•Operations

•Service

Centre For Excellence team (COE)

Solution Development team

• 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

Bangalore – 3 Branches

Hyderabad – 2 Branches

Chennai – 2 Branches

Vizag – 1 Branches

Chandigarh– 1 Branches

NCR – 3 Branches

Kochi– 1 Branches

Coimbatore – 1 Branches

Pune– 1 Branches

Mumbai– 3 Branches

Ahmedabad– 1 Branches

Baroda– 1 Branches Nagpur – 1 Branches

23 Branches across 14 cities, to be expanded over 2 years

2015-16

2016-17

2017

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

1 city, 3 branches

Sales target-10 Cr annually with pending OB of 5 Crores

Bangalore’s biggest dealer for Philips, JBL

2018-19

Over 20 branches across India

Accumulated Orders of over 100 Crores, net profits of close to 8 Crores

India’s Biggest dealer for how many brands (?!)

Own solution tailored for Indian Marketplace Prime Acquisition target for any new players entering the market

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

Returns of 6-7 X (600-700%) on your investment in just 4-5 years

THASMAI AUTOMATION PVT LTD