Religare Easy Gold G o l d To m o r r o w . A t To d a y ’s P r i c e .
Table of ContentsSection I:Religare: Overview & Footprint in nancial servicesSection II:Expansion: Seizing new opportunitiesSection III:Why Gold?Section IV:Product- Easy Gold G o l d To m o r r o w . A t To d a y ’s P r i c e .
Religare: Overview & Footprint in ﬁnancial servicesSection I: a b c d G o l d To m o r r o w . A t To d a y ’s P r i c e .
Religare’s presence in the ﬁnancial services India Subsidiaries Religare Finvest Ltd. Religare Securities Ltd. Religare Asset Management Religare Health Insurance Lending Brokerage Asset Management Health Insurance • Religare Commodities Ltd • Religare Bullion Ltd India Joint Venture International Aegon Religare Religare Macquarie Wealth Religare Capital Markets Ltd. Management Life Insurance Wealth Mgmt. EM Led Investment Bank (44% JV with AEGON) (50% JV with Macquarie)Section I: a b c d G o l d To m o r r o w . A t To d a y ’s P r i c e .
The Journey so far…. Controlled growth in pan-India network Employee strength* - steady and improving leadership depth 2,163 No. of Locations 9,446 (No.) 2,092 8,753 1,853 8,607 1,464 8,487 979 4,372 Cities 330 455 503 557 566 Cities Mar 07 Mar 08 Mar 09 Mar 10 Sep 10 Health Insurance • Religare today offers a wide array of products and Expanding portfolio Global Asset Management Alternate Investments services including broking, insurance, asset Investment Banking management, lending solutions, investment banking Life Insurance Life Insurance and wealth management. Assect Management Assect Management Distribution Distribution • With close to a 9000 employee base across multiple Lending Lending Lending geographies, Religare serves over a million clients, Broking & Depository Broking & Depository Broking & Depository Broking & Depository Services Services Services Services including corporate and institutions, high net worth families and individuals, and retail investors. 2002 2006 2008 2010Section I: a b c d G o l d To m o r r o w . A t To d a y ’s P r i c e .
Religare’s footprint in the broking domain Steady equity broking market share Continue to be among the leading players in the commodities segment Religare’s Market Share Religare’s Market Share 3.9 4.9 3.6 4.5 3.5 4.4 3.4 * Source: NSE, BSE Q2 FY10 Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Q2 FY10 Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Growth in distribution through franchisees1,891 Own Branches • Growing market share in broking business Franchaisees 4191,852 • Powerful Research & Analytics 4131,747 414 • Pan India presence1,686 386 • Dedicated Corporate Desk1,591 382 • Dedicated Arbitrage Desk 1,209 1,300 1,333 1,439 1,482 • Nationwide presence in Mandi Locations Q2 FY10 Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11Section I: a b c d G o l d To m o r r o w . A t To d a y ’s P r i c e .
Expansion: Seizing new opportunitiesSection II: a b c G o l d To m o r r o w . A t To d a y ’s P r i c e .
Our Road Map/Road Ahead Religare is building a leading emerging market nancial services group, anchored in India and underpinned by three secular trends VISION “To be the leading emerging markets ﬁnancial services group driven by innovation, delivering superior value for all stakeholders globally” Invdian growth story leading to The increasing weight and growing Opportunity to unlock value in western asset deepening of ﬁnancial services and rapid integration of Emerging Markets managers by creating a multi-boutique platform growth of proﬁt pool with the global economy providing access to alpha and capital in emerging markets Integrated Indian Financial Services Play EM led Investment Bank Global Asset Management PlatformSection II: a b c G o l d To m o r r o w . A t To d a y ’s P r i c e .
Strategy is to create strong Global presence UK USA JAPAN INDIA DUBAI HONG KONG SRI LANKA MALAYSIA BRAZIL SINGAPORE INDONESIA SOUTH AFRICASection II: a b c G o l d To m o r r o w . A t To d a y ’s P r i c e .
Why Gold?Section III: a b c G o l d To m o r r o w . A t To d a y ’s P r i c e .
Gold is the safest investment option which guards against market volatility and inﬂation Net Retail Investment (in Tonnes) 250 Price trend in India 1 Year 3 Year 5 Year 200 200 150 150 100 100 50 50 0 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 -50 GOLD SENSEX BSE 500 BSE 200 BSE 100 BSE METL BSEMDCAP BSESMCAP2500020000 • “Gold is on track to rise to $1,650 an ounce over the next 12 months (Nov 2011 ),15000 and could surpass that level”- analysts at Goldman Sachs10000 Gold Prices 5000 • UBS has forecast gold price to touch USD 1,550 in 2011 0 1991-92 1995-96 1997-98 1999-00 2001-02 2003-04 2005-06 2007-08 2009-10 2011-12* Source: WGC, NCDEX, RBISection III: a b c G o l d To m o r r o w . A t To d a y ’s P r i c e .
What’s so great about Gold? Financial Reasons Emotional Reasons • Gold prices have been rising at a CAGR of 20.75% in India • When my both kids were born at that time we took • The country (India) currently has one of the highest saving 10-tola biscuit. Every year on birthdays we buy 10 gm rates in the world; estimated at around 30% of total income, gold coin. – Respondent from Mumbai of which 10% is invested in gold. • Sona such ka shringar hota hai, dukh ka aahar hota • Religare is venturing into Gold to capture this hai.– Respondent from Delhi opportunity which is largely fragmented. • Gold is also a security; it is security for the family for • Extensive research done over major cities in India shows bad times – Respondent from Ahmedabad that there is a need of a product: • It is our custom in Muslims that putting min 40 to 50 • Which locks in the price of Gold. sovereign to our daughters. If we put, we get 8soverign • In addition to locking the price, gives the facility of part of gold in return from bride groom side. – Respondent payment in multiple modes. from Chennai • Avoids hassles of storing physical GoldSection III: a b c G o l d To m o r r o w . A t To d a y ’s P r i c e .
Product- Easy GoldSection IV: a b c d e G o l d To m o r r o w . A t To d a y ’s P r i c e .
Easy Gold Concept • Purchase of physical Gold in monthly installments for delivery after 1 or 2 years • The rate of gold is ﬁxed at the time of entering into the contract with Religare • The customer pays 15%+ of the Religare’s gold price as upfront, rest in equal installments Flexibility offered • Storage of Gold after maturity of plan: • Free for 30 days after maturity of the scheme • Warehouse charges minimum Rs 200 for 10g up to 3 months and multiples thereof Payment options • MonthlySection IV: a b c d e G o l d To m o r r o w . A t To d a y ’s P r i c e .
Product- 1 Year Plan 10g and Multiples 10g and Multiples 50g and Multiples 100g and Multiples Term of plan 12 months 12 months 12 months 12 months Minimum quantity of sale 10g and multiples of 10g 10g and multiples of 10g 50g and multiples of 50g 100g and multiples of 100g Quantity of Gold 10g 20g 50g 100g Value of Gold 32,066 64,132 157,610 315,220 Delivery charges (last installment) 50 50 100 100 VAT (last installment) 321 642 1577 3153 Total Amount 32,437 64,824 159,287 318,473 Upfront Margin Amount* 4,500 9,000 22,500 45,000 1st Installment Amount 2,875 5,750 13,750 27,501 2nd to 10th Installment Amount 2,469 4,938 12,136 24,272 Last Installment Amount 2,470 4,940 12,136 24,271 Delivery (grams) 10g 20g 50g 100g * Vat and Delivery Charges will be taken separately at the time of deliverySection IV: a b c d e G o l d To m o r r o w . A t To d a y ’s P r i c e .
Product- 2 Year Plan 10g and Multiples 50g and Multiples 100g and Multiples Term of plan 24 Months 24 Months 24 Months Minimum quantity of sale 20g and multiples of 10g 50g and multiples of 50g 100g and multiples of 100g Quantity of Gold 20g 50g 100g Value of Gold 69,022 169,840 339,680 Delivery charges (last installment) 50 100 100 VAT (last installment) 691 1,699 3,397 Total Amount 69,763 171,639 343,177 Upfront Margin Amount 9,500 24,000 48,500 1st Installment Amount 3,614 8,270 16,039 2nd to 22nd Installment Amount 2,541 6,253 12,506 Last Installment Amount 2,547 6,257 12,515 Delivery at the end of 1 Yr (%): (Optional) * 40% 40% 40% Delivery at the end of 2 Yr (%) 60% 60% 60% * Vat and Delivery Charges will be taken separately at the time of deliverySection IV: a b c d e G o l d To m o r r o w . A t To d a y ’s P r i c e .
Charges Applicable Particulars Charges Applicable Vault charges post scheme maturity/closure a. Free for 1st month, b. Rs 200/10g every quarter thereafter. Delay in payment up to 9 days 24%p.a of total installment value due Termination of contract Delay in payment beyond 9 days 5% penalty charges on remaining value Difference between the sale price and the price of the Company on the day of termination. The day of the termination Prepayment Charges 5% of remaining value of contract Death Nominee will be eligible for refund of entire deposit amount after taking into considera- tion market value of product. Cheque/ECS bounce charges Starts with Rs. 300/bounce and goes upto Rs. 500/- on subsequent bounces Part delivery charges As per the weight of the bar/coin and maximum up to 2% of the product delivered Rs 50 for contracts up to 20g Delivery Charges Rs 100 for contracts greater than 20g Within 3 months, forfeiture of entire amount Exit from scheme Beyond 3 months: a. penalty of 5% on committed rate will be levied and �b. the difference between that day’s ashed rate and the committed rate will be collected in case the committed rate is higher. No refund will be given in case the committed rate is lower.Section IV: a b c d e G o l d To m o r r o w . A t To d a y ’s P r i c e .
Thank You G o l d To m o r r o w . A t To d a y ’s P r i c e .