CRM Market India

July 2015

Executive Summary

Market

CRM market in India is valued at ~ INR x bn in 2014 and is estimated to grow at a CAGR of ~ x% over 201419e
In terms of CRM adoption, South Indian cities are showing signs of healthy adoption rates followed by North
Indian cities

Drivers

Drivers and
Challenges

Challenges

Improved Customer Relationship and Operational

Advancement

Implementation Challenges and Operational

Cost

Growth of Online Retailing

Lack of Awareness of True Benefits

Global Competence
Significant Cost Reduction

Trends

Demand for Transparency

Introduction of Social CRM

Emergence of Mobile CRM

Rising Cloud-based CRM Adoption

Major Players

Competition

Company A

Company B

Company C

Company D

Company E

Company F

CRM MARKET IN INDIA 2015.PPT

Macroeconomic Indicators
Introduction
Market Overview
Types, Modules and Features
CRM Use in SMBs
CRM Selection Criteria
Drivers and Challenges
Key Trends
Scope of CRM in Key Sectors
Competitive Landscape
Strategic Recommendations
Appendix
CRM MARKET IN INDIA 2015.PPT

Macroeconomic Indicators (3/3)

SAMPLE

Lending Rate: Annual

x

Trade Balance: Annual

%
Per Annum
INR tn

x1

2011-12
y1

C
x1
B

x3

x4

x2

x2
2012-13

2011-12
2012-13
N.B.:
2012-13 encompasses
figure for Apr2013-14
Nov 2012

y2

2014-15

FDI: Annual
x3
2013-14
y3

INR bn
D

x4

2014-15
y4

y2

y3

y4

2012-13

2013-14

y1

B
Min

Max

Commercial Bank Rates: Key Lending Rates as Prescribed by RBI (All

Commercial Banks including SBI) - Minimum Rate General

A
2010-11

CRM MARKET IN INDIA 2015.PPT

2011-12

CRM Adoption Process

X

SAMPLE

CRM MARKET IN INDIA 2015.PPT

Over the years, CRM has evolved from point solution to 360
degree enterprise-wide initiative in India

SAMPLE

CRM Market Overview - India

INR bn
X

a6
X

a5

Top 2 players
are holding
~a% share in
the CRM
market

a4

a1

a2

a3

x
z

X
0
2014

2015e

2016e

2017e

2018e

2019e

Oracle

Salesforce

Others

XX
XX
XX
XX

CRM MARKET IN INDIA 2015.PPT

CRM Adoption Rate among Organization of all Size

SAMPLE

Organization Type

Service Industry

Product Industry

X-X%

X-X%

X-X%

X-X%

X-X%

X-X%

XX
XX
XX

CRM MARKET IN INDIA 2015.PPT

Increased awareness and interest level of base-level SMBs

in technology clearly indicates India's technological progress

SAMPLE
ICT Spending
Business
Challenge
Breakup

ICT Spending
Business Challenge
bn

X
X

100.0%
Hardware
X

IT Services
Software Licensing and SaaS

0
2014e

X
2014e

2018e

Spending on IT service
(implementation,
support and training)
and Software Licensing
and SaaS: XX%

XX
XX
XX
XX

CRM MARKET IN INDIA 2015.PPT

SMB CRM spending share in the overall SMB software

spending

SAMPLE
IT Software
Business
SpendingChallenge
- SMBs

CRM Market India

Business
Challenge
Segmentation

10

20

30

40

50

60

70

80

90

bn
Y
2014

Y XX

X
Others

Small and Medium Business

CRM spending

Large Business

Note: Base figure = INR X bn

XX
XX
XX
XX

CRM MARKET IN INDIA 2015.PPT

Large presence of SMBs in India proves to be highly

beneficial for CRM vendors
CRM Implementation Benefits
XX
XX

SAMPLE

XX
XX

Some potential benefits of CRM implementation

Benefits

Description

X
X
X

X
X
X
X

CRM MARKET IN INDIA 2015.PPT

10

CRM Selection Criteria (X/X)

IT Manpower

SAMPLE

XX

User Volume
XX
Deciding
Factors

Customizability and Integration with other Solutions

XX

CRM MARKET IN INDIA 2015.PPT

11

Enhancement of customer care operations is catalyzing CRM

adoption

SAMPLE

Improved Customer Relationship and Operational Advancement

Impact

XX
XX
XX
XX
XX

X
X
X
X
X
X
X
X
X
X

CRM MARKET IN INDIA 2015.PPT

12

CRM solutions are used by various highly reputed and

respected companies around the globe

SAMPLE

Global Competence

Impact

XX

Expansion

Achieving Global
Standard

Operational
Efficiency

CRM MARKET IN INDIA 2015.PPT

13

hinder its adoption in India

SAMPLE

Implementation Challenges and Operational Cost (x/x)

Vendor Name

Cost Structure* (Per month/user)

Note: *Data as of August 2013, Other details have been taken from the website; May vary depending on the requirement
SAP does not provide stand alone CRM generally, and it requires a minimum of 15 user subscription
Sugra CRM: Price based on an annual subscription with a minimum of five users

CRM MARKET IN INDIA 2015.PPT

14

Social CRM offers open-ended interaction among

employees and numerous consumers in the social networks

SAMPLE

Introduction of Social CRM

Social
Social
CRM
CRM

Social CRM is
gaining popularity

X
X

Traditional CRM

Social CRM

Traditional
CRM

Participant

Process and Channel

Time of Interaction

X
X

Social CRM

X
X

CRM MARKET IN INDIA 2015.PPT

15

Cloud Computing is catching up with the Software-as-aService (SaaS) CRM solution

Rising Cloud-based CRM Adoption (x/x)

SAMPLE

Many companies are now implementing on demand CRM for better results
Company A
X
X
X
Company B
X
X
X
X
Company C
X
X
X
X

CRM MARKET IN INDIA 2015.PPT

16

Case Study 1

SAMPLE

Client Organization

Industry

IT Vendor

Case: X saves time, increases revenues using SMART CRM Desk CRM

X
X
X
X
X

Benefit

Solution

Requirements

X
X
X
X
X

X
X
X
X
X

Technology Used
XX
CRM MARKET IN INDIA 2015.PPT

17

Porters Five Forces Analysis

SAMPLE
Impact
X

Threat of New Entrants

X

Impact
X

Bargaining Power of Suppliers

X

Impact
X

Competitive Rivalry

Impact
X

Bargaining Power of Buyers

X

Impact
X
Threat of Substitutes
X

CRM MARKET IN INDIA 2015.PPT

18

Competitive Benchmarking (3/3)

SAMPLE

Key Ratios of 3 Major Private Companies Operational Basis (FY 2014) (x/x)
Debtors Turnover Ratio
2012

2013

2014

Asset Turnover Ratio

x2

x
x

x1
x2

x1

x3

x3

x
Oracle

Salesforce

x1

x2

x3

x
x

SAP

Oracle

Salesforce

SAP

XX
XX
XX

CRM MARKET IN INDIA 2015.PPT

19

Public: Foreign Company Company A(1/4)

Company Information
Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation

Ticker Symbol

Stock Exchange

SAMPLE
Offices and Centres India

Head Office

Pune

Products and Services

Category

Products/Services

Key People

Amdocs Products

Name

Designation

X
Note: The list of products and services is not exhaustive

CRM MARKET IN INDIA 2015.PPT

20

Public: Foreign Company Company A(2/4)

SAMPLE

Financial Snapshot
INR bn

Total Income

300
200
100

17.0

156.3

20.7

Key Ratios

Net Profit/Loss
25.8

INR bn

26.1

30
20

172.4

209.6

220.9

10

0
2011

2012

2013

2014

Financial Summary

The company reported total income of INR 220.9 bn in FY

2014, registering an increase of 5% over FY 2012
The company earned an operating margin of 13.89% in FY
2014, a decrease of 0.48 percentage points over FY 2013
The company reported debt to equity ratio of 0.06 in FY 2014,
an increase of 1.26 per cent over FY 2013

Key Financial Performance Indicators

Market Capitalization (INR mn)
Total Enterprise Value (INR mn)
EPS
PE Ratio

y-o-y change
(2014-13)

2014

2013

-0.48

13.89%

14.37%

13.57% 12.70%

-0.48

11.83%

12.31%

12.00% 10.89%

-0.47

13.72%

14.19%

13.54% 12.43%

-0.16

12.43%

12.59%

12.90% 11.47%

-0.06

12.44%

12.50%

12.36% 11.15%

0.65

40.52%

39.87%

45.36% 41.77%

9.56%

9.78%

9.53%

2012

2011

Profitability Ratios
Operating Margin
Net Margin
Profit Before Tax Margin
Return on Equity
Return on Capital Employed
Return on Working Capital
Return on Assets
Return on Fixed Assets

-0.22

8.72%

-3.23

171.53% 174.76% 159.22% 156.49%

0.48

86.09%

85.61%

86.37% 87.28%

-0.02

12.49%

12.51%

13.08% 12.89%

-0.01

0.10%

0.11%

0.10%

0.09%

-4.97%

2.02

2.12

1.92

1.96

-3.92%

1.19

1.23

1.05

1.16

1.26%

0.06

0.06

0.07

0.08

Cost Ratios

The company earned a net profit of INR 26.1 bn in FY 2014, as

compared to net profit of INR 25.8 bn in FY 2013

Indicators

Particulars

Value (23/06/2014)
546029.19
465229.2
2.88
19.64

Operating costs (% of Sales)

Administration costs (% of
Sales)
Interest costs (% of Sales)

Liquidity Ratios
Current Ratio
Cash Ratio

Leverage Ratios
Debt to Equity Ratio
Debt to Capital Ratio
Interest Coverage Ratio

1.18%

0.06

0.06

0.06

0.08

5.13%

142.33

135.38

139.39

140.34

1.57%

12.33

12.14

11.68

12.30

1.18%

0.69

0.68

0.70

0.69

0.27%

1.47

1.47

1.59

1.61

5.17%

2.91

2.77

3.33

3.28

2.64%

0.99

0.96

1.00

0.97

Efficiency Ratios
Fixed Asset Turnover
Asset Turnover
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover

Note: Financials of the parent company (Amdocs Ltd. NYSE:DOX) has been provided
CRM MARKET IN INDIA 2015.PPT

Improved

Decline

21

Public: Foreign Company Company A(3/4)

SAMPLE

Key Business Segments

Key Geographic Segments

Providing Integrated Products and Services

100%

North America

Europe

Rest of the World

220,625
100%

50%

50%
0%

0%

14%
2011

2014

70%

73%
13%

17%

2012

72%
14%

16%
2013

73%
12%

15%

13%

2014

Business Highlights
Description

News

Overview

Launch

Acquisition

X
CRM MARKET IN INDIA 2015.PPT

22

Private: Foreign Company Company A SWOT Analysis

(4/4)

SAMPLE

CRM MARKET IN INDIA 2015.PPT

23

Private: Foreign Company Company B(1/5)

Company Information

Corporate Address

SAMPLE
Offices and Centres India

X
Delhi

Tel No.

Fax No.

Website

Year of Incorporation

X
Head Office

Products and Services

Category

Products/Services

Key People
X

Name

Designation

Note: The list of products and services is not exhaustive

CRM MARKET IN INDIA 2015.PPT

24

Private: Foreign Company Company B(2/5)

SAMPLE

Shareholders of the Company

Name

Ownership Structure

No. of Shares held

Foreign Holdings

100%

Note: Shareholding pattern as on AGM dated 29th Sep 2014

CRM MARKET IN INDIA 2015.PPT

25

Private: Foreign Company Company B(3/5)

SAMPLE

Financial Snapshot
Total Income

Key Ratios

INR mn

8,000
6,000
4,000

Particulars

Net Profit/Loss
INR mn
681.1

590.1

800
600

6,751.1

7,925.4

2,000

400
200

0
2013

2014

Operating Margin
Net Margin
Profit Before Tax Margin
Return on Equity
Return on Capital Employed
Return on Working Capital
Return on Assets
Return on Fixed Assets

Liquidity Ratios

The company reported total income of 7,925.4 mn in FY 2014,

registering an increase of 17% over FY 2013

Leverage Ratios

The company reported a current ratio of 0.84% in FY 2014

registering a decrease of 27.48% over FY 2013

2013

2012

2011

-0.92

12.26%

13.18%

N.A.

N.A.

-0.15

8.59%

8.74%

N.A.

N.A.

-0.92

12.26%

13.18%

N.A.

N.A.

-0.97

17.82%

18.78%

N.A.

N.A.

-2.90

25.42%

28.33%

N.A.

N.A.

-375.32% 426.16%

-801.48

N.A.

N.A.

-2.11

15.24%

17.35%

N.A.

N.A.

-9.05

23.66%

32.71%

N.A.

N.A.

0.92

87.74%

86.82%

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

-27.48%

0.84

1.16

2.07

N.A.

-47.10%

0.23

0.43

0.55

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

-22.24%

1.93

2.48

N.A.

N.A.

-5.59%

1.24

1.32

N.A.

N.A.

30.49%

5.80

4.44

N.A.

N.A.

-194.66%

-30.60

32.33

N.A.

N.A.

-3.52%

2.07

2.15

N.A.

N.A.

Cost Ratios

The company earned a net profit of INR 681.1 mn in FY 2014

as compared to net profit of INR 590.1 mn in FY 2013

The company earned an operating margin of 12.26% in FY

2014 a decrease of 0.92 percentage points over FY 2013

2014

Profitability Ratios

Operating costs (% of Sales)

Administration costs (% of
Sales)
Interest costs (% of Sales)

Financial Summary

y-o-y change
(2014-13)

Current Ratio
Cash Ratio
Debt to Equity Ratio
Debt to Capital Ratio
Interest Coverage Ratio

N.A.

Efficiency Ratios
Fixed Asset Turnover
Asset Turnover
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover

Improved

CRM MARKET IN INDIA 2015.PPT

Decline

26

Private: Foreign Company Company B(4/5)

SAMPLE

Business Highlights
Description

News

Overview

Featured Adobe Products

for CRM

Launch

Strategic Partnership

Acquisition

CRM MARKET IN INDIA 2015.PPT

27

Private: Foreign Company Company B SWOT Analysis

(5/5)

SAMPLE

CRM MARKET IN INDIA 2015.PPT

28

Strategic Recommendations (x/x)

SAMPLE

Strategy

Adoption Area

RegionalX Growth

CRM MARKET IN INDIA 2015.PPT

29

Thank you for the attention

CRM Market India report is part of Netscribes Technology Series.
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