Business Model of Vakrangee:
- Digital common Service providing to the rural and semi urban area .
- Incorporated in 1990, During 1990-2005 work on gov.project such as election commission and MCA.
- 2005-007- Work on many state gov.project such as Haryana, UP and Rajasthan.
- 2010-2011- Work on Passport seva kendra and Aadhar Enrollment.
- Also lunch Common service centre ,Phase-1
-Now these are all services provided by the company at one shop , called NEXZEN VAKRANGEE KENDRA.
– No Any company providing all service at one place.
- Due to digitalization in India , we have more scope in future to grow in India basically in rural areas.
- In India, over 1.2 billion of the total population lives in the rural regions.
- Through our Next Gen Kendras, we aim to connect to the rural population of India and bring them under the scope of financial, social and digital inclusion. Today, our Next Gen Vakrangee Kendras are the centre point of consumption in a rural economy.
- Now total no of full operational Kendra 10000.
- As per concall 13000 is under process and they will be operational within 3 months.
- They have a target to open 25000 kendra upto 2020. Next 2-3 year it will be 45000 kendra.
- They are giving one Kendra in each panchayat in rural areas.
- 3- Types of Model, Gold, silver and bronze as per your space and financial condition.
- They are giving a full Kendra design manual to every franchise and it will be the same for all India.
- Exclusive store model with same service level and same Customer experience
- Standardized layout & design by L&H (Lewis & Hickey).
- Uniform and Consistent Branding for Higher brand recall and visibility.
- Centralized CCTV system
- Better Security at the store
- Full compliance with RBI guidelines to maintain more than 90 days video recording back up.
- Store inspected by a third party and he makes sure everything matches with design layout. Then they will give approval.
- If anything changes again needs to be corrected by franchise, after this they will approve. Such as color of paint, light switches ,no matter small or big ,they want as per layout which mentions everything.
- Each sore takes 6-9 months for operation.
- After operation again the 3-rd party will visit each and every store to check how many services are activated and everything is going smoothly or not.
- They are not charging Franchise costs ,only for equipment charges you have to bear.
- They are giving ATM in every store by the company itself to generate more revenue.
- They have block level executive, and district level executive where stores are in operation.
- They have a separate relationship manager for each service for smooth support to the franchise store.
- Also they have state level support centers for many services.
- Vakrangee has around 2000 employees.
- I recently talked to employees about getting a salary on time now and before also.
- I ask about expansion – we are working for expansion in each district. He said in my district before there were 3 stores but now 18 are working and some are in process.
- In 2018 , There was a charge of manipulation on no. of store and profit margin.Also some fund used for Gold trading. As per TV Report.
- Auditor resignation gives more negative to the company.
- After this SEBI and MCA ,Form enquiry and they found nothing wrong.
- In between share prices fall 500 To 50 RS/share. Means 90% down and still under poor performance.
- The company hired New CEO, Mr. Khanna in JAN-2019.P He has 27year of experience in Blue Dart.
- Management decided to use this period for massive expansion, because there was no cash issues. Debt free company.
- In 2018-2019- 3500 Stores converted in Nexzen Kendra.
- They plan to change 25000 Kendra in 2020.
- Presently 10000 stores running and 13000 under process.
- Mr Anil Khanna has joined Vakrangee as Managing Director & Group CEO w.e.f. 28th January 2019. Prior to Vakrangee he has been in the position of Managing Director of Blue Dart Express Limited since 21st February 2007.
- He has 40 years of experience in various industries and has been with Blue Dart since 1992.
- Under his leadership and guidance, Blue Dart was able to broaden its strategic focus from being an air express company to a full-fledged logistics organisation, offering a wide range of products and services, as well as Industry specific solutions in air and ground express segments.
- He was also responsible for developing business potential, driving strong revenue growths and enhancing service quality.
- He has proven his capabilities in leading his team to achieve exceptional business results.
- He is a graduate from St Stephen’s College, Delhi and holds an MBA degree in Marketing and Finance from UBS, Chandigarh.
To Gain Trust:
- Management hires third party inspection of their store and they are verifying each and every store physically.
- Quality Analysis of Next Gen Vakrangee Kendra by Grant Thornton (GT).
- They are giving a report on the no of stores operating as per new nexzen Kendra and services activation.
- They also install cameras to see the visibility of store function and 90 days recording need to submit to the third party.
- Also they have screens for customers to see what operators are doing for his service. Any customer can see what is going one for any services.
- Now they launch Mobile ATM service in Mumbai during Corona Pandemic.
Income from Store:
Nextzen Outlet Commission Sharing ratio: Ranging from 65:35 to 80:20 based on Service Type
- Income from ATM:
- We can use any cards and credit cards.
- For each financial transaction company will charge to the concern bank 15 RS.
- 10 RS for Franchise and 5 RS taken by company.
- For Non-Transaction, Balance, pin changing, Mobile no. Updates them, Charge 5 RS.
- 3 Rs for Franchise and 2 for company.
- This WLA ATM is selfloaded. Means you can load the cash himself. No need to depend on bank service.
- Whatever you get cash money from other services, franchisees will load to the ATM.
- Widraw money from the ATM ,You will get in your account within 24 hrs.
- You can rotate this money for an ATM and no of Transaction can be increased.
- CSR activity and they spend 2 % of average profit for the last consecutive 3 years.
Benefits to Company:
- Company Providing the insurance for ATM Maintenance, Cash carrying from the bank.
- Insurance charge is 2500 RS monthly from Every Store apart from transaction charges.
- Income From E-Commerce:
- This is the most profit generation for the company.
- When any sales announcement from AMAZON, vakrangee marketing people act and promote to the store with good reward.
- Many stores generate income up to 1 lakh through E-Commerce.
- Banking Services: Franchisees are getting commission up to 60000 thousand monthly.
- Account opening charges 16-18 Rs Per account for all banks.
- Domestic Transfer: Charging 1% of transaction value and company is taking 30% of service.
- TeleMedicine: V-Health
- BPPS- Services-
- Mobile & DTH Recharge.
- Courier Services-
- Mutual Funds.
- Look to the Equity in Balance sheets :
|Share Capital +||21||21||21||22||24||25||50||50||50||53||53||106||106|
- Issues bonus 1:1 in 21/12/2017
- Stocks split 10 to 1 – 2012
- Bonus – 1:1 , 2012
- Taken Pledge in 2011.
2-Look to the Assets:
|Other Assets +||63||73||223||414||563||943||1,238||1,753||1,959||2,246||2,871||2,558||2,629|
- Assets increases in linear
- Profit increases upto 2018, after 2019 and 2020 drastically decreases.
4-Check the dividend: They are giving a dividend 15-32 % .
|Dividend Payout %||9%||49%||14%||10%||7%||10%||7%||4%||17%||20%||4%||105%||–|
- Less dividend giving.
- Remaining amount will go for reserve.
5-Check the reserve:
- Now reserves have increased 10 times in 12 years.
- This money is used for Growth of the company.
6-Check the Loans:
- Zero loans in the last 3 years.
7-Check the Cash:
- Sufficient cash to operate the business.
- Debt free
- Cash has increased more in the last 4 years.
8-Checked the Sales Growth:
- Good sales growth upto 30 times
- Last one year it was reduced by 61%. Due to Expansion of business.
9-Check the OPM %:
- Margins are good up to 2018.
- In 2019 almost zero.
The above Research for the purpose of support only . On the basis of this you can do your research before Investing. I am doing research only for Halal Company.
All the best for your Halal Investing Journey.