firstobject technologies ltd 290911

7/27/2019 Firstobject Technologies Ltd 290911

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Analytical perspective from various Business Models


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Presentation Disclaimer

The information in this presentation is an overview and does not contain all necessary information

necessary for investment decisions. In making investment decisions, investors should rely on their

own examination of Firstobject Technologies Limited.

The information contained in this presentation has been prepared in good faith by Firstobject

Technologies Ltd. However, no representation or warranty, expressed or implied, is made as to theaccuracy, correctness, completeness or adequacy of any statement, estimates, opinions or other

information contained in this presentation.

Certain information in this presentation refers to the intentions of Firstobject Technologies Ltd, but

these are not intended to be forecasts, forward looking statements, or statements about future matters

for the purposes of the Companies Act or any other applicable law. The occurrence of events in thefuture are subject to risks, uncertainties and other factors. Accordingly, Firstobject Technologies Ltd,

its directors, officers, employees and agents do not give any assurance or guarantee that the

occurrence of events referred to in this presentation will occur as contemplated.


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Dr. Vivek Hebbar, Chairman & Director : Dr.Vivek Hebbar is an MBBS and MD in Medicine and

holds AIFH and DHA. He also holds an MBA degree.

Dr. Hebbar, a marked Visionary, not only has a good

reputation but also provides very valuable business

contacts. His valuable experience and insights have

helped strategizing the companys Knowledge basedProcessing Services, Product Offerings and New

Initiatives in e-education.

The Key Executive Team at Firstobject :


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Mr. N. Shiva, Director : Mr. N. Shiva is a man of few words. He is an

Engineer by vocation. He was the founder of the erstwhile ICICI InfotechLimited, which is now known as 3I Infotech Limited.

Mr. N. Shiva has developed various leading software models, which have set a

trend in the industry. He is known in industry circles as a trendsetter. He has vast

business contacts and business development skills apart from being an expertexecutioner. He leads the overseas business strategy for the company under

strategic alliance through Object Xperts Inc, USA.

Mr. P. Ramnath, Director : Mr. Ramnath has Done MBA and has fifteen

years of Experience in Finance and Banking. He has lead many financial closuresfor the expansion activities of businesses ranging from brick and mortar industry

to information technology segment. He is a source of inspiration and provides

guidance for the new business strategies of the Company.


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Mr. Sailesh Pithe, Director: Mr. Sailesh is a Science Graduate with a Masterin Marketing Management, he is a lead anchor and producer of various business

shows on Door Darshan and Electronic Media with his experience and expertise,

he navigates the Investor Relations strategy of the Company.

Mr. Sita Rama Sastry, Director : Mr. Sita Rama Sastry with his impeccable

educational background holds M.Sc, PGDCA, and a Master in Business

Administration. He is a meticulous strategist in business planning and execution,

he provides the guidance for business strategy and execution at Firstobject.


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Mr. Sriram Kumar, Associate Director / Chief Technology Officer:

Mr. Sriram Kumar is a topper in M. Tech from the University of Pondicherry.

He comes with around 18 years of experience in the field of IT/ ITEs working

with software giants like PCS, Infosys and Mahindra Satyam. He has worked

extensively in India and the US. He is the backbone of the technology

initiatives at Firstobject.

Ms. Lakshmi Kameswari, Chief Operating Officer:

Ms. Lakshmi Kameswari is a Topper in M.SC. She holds a Post Graduate

Diploma in Computers and is currently pursuing Ph.D in Management under the

Executive - Research Stream. She previously worked as a Research Associate

with Leading Research Organisations in USA. She charts the day to day

activities of the company with her varied experience and expertise.


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In Summary

Firstobject Technologies Limited is a small-size IT/ ITEs and Software

Company. It has done remarkably well with its array of product suites and

service offerings. The Organic growth of FTL has been tremendous. The

companys research division already is a well known name among the

Institutional whos who. The Research division has a diverse subscription baseof both Retail as well as Institutional clientele.

Firstobjects foray into E-education space makes a good bet as the company

diversified into the area of Web-Enabled Interactive Learning Solutions in order

to offer complete educational support solutions to the student fraternity by

taking advantage of the companys existing expertise in technology, content

building and course delivery.


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Widening Reach :

Firstobject Technologies Ltd is now operating from three different

geographical locations as a strategy for implementing a strong

Continuity of Business Offerings. The company now operates from

Hyderabad City, Kakinada and Visakhapatnam. Hyderabad and

Kakinada units are registered under STPI and the Visakhapatnam

unit is registered under VSEZ. The company has increased its

manpower and is gearing up for a wide and varied reach.


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Latest Developments in the Company

Implementation of e-education modules under ICT in Marathi and EnglishMedium in 16 schools in Maharashtra: The Company is executing an order for

implementation of Interactive Classroom Teaching Modules on Turn Key Basis for

16 schools of Walawa Sangli Group of High Schools spread across the State of

Maharashtra with a total student base of about 19600. The courses ranging fromJunior Kg to 12 Standard is being implemented in both Marathi and English

Mediums.

Implementation of e-education for Saraswati Educational Society, Andhra

Pradesh: The company has procured an order from leading educational group in

Andhra Pradesh for implementing e-Education modules from pre-primary to tenth

standard both in English and Telugu mediums of Andhra Pradesh State Board

syllabus. Saraswati Educational Society Runs Schools in the name of Gayatri

Model Schools and it has a good presence across the North Andhra Region..


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AWARDS AND ACCOLADES

Best ITES Company by STPI Kakinada: The

Company has been awarded The Best ITESCompany" from Kakinada region for the year 2010-

11 by STPI (Software Technology Parks of India).

Indian Leadership Award for Industrial

Development : The Company and Dr. Vivek Hebbar,

Chairman of the Company have been awarded the

Indian Leadership Award for Industrial

Development under Small Enterprises Category for

the contributions in e-education as a debutant on a

national basis.

Bharat Vikas Ratan Award : The Company and Dr.

Vivek Hebbar, Chairman of the Company have been

awarded for making available e-learning / education

modules at affordable prices to one and all as a

Debutant in the field of Education.


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Rajiv Gandhi Excellence Award

2010 :

The Rajiv Gandhi Excellence

Award 2010 has been conferred for

the Outstanding ProfessionalLeadership skills exhibited by Mrs.

Lakshmi Kameswari (C.O.O), in

making an SME Company,

Firstobject Technologies Limited, aSustainable Turnaround Company.


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Firstobjects

Business Analysis

Through

Various Business Models


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Business Analysis through Porters Model

Where do we stand?

Please see in the next page.


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1. Threat from New Entrants: Firstobject does not have any threat

from new entrants as the company seeks a cost leadership strategyto achieve the position of lowest cost producer in the industry.

2. Threat from substitutes: Firstobject does not have any threat of

substitute products as the company has a differentiation strategy

which makes the products unique in nature and best quality whichare deliverable to the customer, including customer service.

3. Threat from Suppliers: Firstobject has tie ups with good suppliers

who has credibility in the market and as the company has widereach across the country the company enjoys the bargaining

powers from suppliers situated at various locations of the country.


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4. Threats from the power of Buyers: Firstobject does not have any

threat from the power of buyers because of its low cost advantage.The company offers its products at very economical rate that a

consumer can afford. Apart from retail customers the company is

also tapping various State Governments with whom the company

intends to implement its ICT education model under PPP.5. Rivalry and competition among competitors: Though Firstobject

does not enjoy the benefits of early entrants, the company has

captured good market share when compared to its competitors. The

company does not face much competition from it peer groups asthe company has entire range of products in its fold in e-education,

both in english and vernacular., whereas the peers group is in

limited segments in e-education.


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GE 9 Cell Matrix Analysis of Firstobject


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BCG MATRIX MODEL ANALYSIS


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CORPORATE REJUVENATION

This year the company has undergone landmark restructuring exercise,which is an important step to maximize the shareholders wealth, crucial

for the ongoing endeavors to create a vibrant revenue growth model that is

both focused on IT/ITES and E-education.

The company underwent through a corporate restructuring comprisingcapital reduction, consolidation of shares and amalgamated Pre School

products company, which is a backward integration for providing the entire

product line from play school to higher secondary education modules.

Corporate restructuring has strengthened the fundamentals of the companyand also opened a window to a variety of value enhancing investment

opportunities, which can augur well with the ambitious growth plans of the

company.


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Corporate Restructuring Rationale:-

Value unlocking and wealth maximization of Shareholders.

Clean Balance Sheet and Professional Management of operations.

It offers tremendous scope for enhancing the corporate brand image.

The merger / amalgamation will increase scale of operations in the combined

entity owing to Improved synergies and administrative economies. Paves theway for creating a larger entity for unlimited scaling possibilities.


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Shareholding Pattern Post Restructuring

Post Scheme of Arrangement the

shareholding of:

Promoters / PAC stands at 61%.

Individual holding (Public) shall be

37% and

Corporate Bodies (Public) holdings

shall be around 2%.


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COMPANYs ONLINE TUTORIAL OFFERINGS

First-e-School: First ESchool is a web enabled e-classroom.www.firsteschool.com is a paid portal and offers curriculum for State Boards,

CBSE and ICSE. The Company is in the process of franchising the "first-e-

school brand across the country. The Course content is of top quality and

helps simplify the students learn with ease.

First Law School : The Companys portal www.firstlawseries.com is probably

ones of its kind portal meant for the E-Legal education. It helps impart L.L.B

(graduate law course materials) under 5 year stream and also under 3 year

stream to cater to the requirements of graduate law students. The Company hasempanelled many eminent legal educationists for the said purpose. The

company also provides coaching material for LLB entrance examination.


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First Management School: The Companys Management portal

www.firstmanagementseries.com caters exclusively to the Business ManagementStudies. The study material covers all management subjects. The Model test

papers are prepared in such a way that it will help students clear the entrance

examination with flying colours.

First Engineering School: The companys Engineering School Portal

www.firstengineeringschool.com, provides the detailed course materials for

major engineering entrance examinations such as AIEEE, IIT JEE, EAM CET,

MH CET, etc, which is the stepping stone to the career of an engineer.


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Firstcall Research: The Companys portal www.firstcallresearch.com is its KPO

initiatives. Firstobjects research capabilities have carved out a leadership position

by catering to the worlds whos who. This portal provides Institutional quality

Research Reports, covering industry, economy and company specific analysis of

more than 1000 listed companies in India to more than 950 FIIs, FIs and Hedge

Funds world across.

First E-Pandit: The Companys portal www.firstepandit.com is its E-Commerce

initiative. First-e-Pandit shall mainly caters to the needs of Non Resident Indians

(NRIs) and also Indians staying away from their home regions. Under First-e-Pandit,

all the Festivals / Ceremonies in an Indian calendar year are made available online

along with the procedures to perform the same and live performances in all Indianlanguages with customization in respective languages, culture and tradition. The

testing of content for seamless offerings for various occasions is still on and we

expect that it may be revenue accretive only after FY 2012.


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Forward Looking


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Quality education through standardized and innovative teaching

methods

In a sector which is largely unorganised in India, we have adopted

standardized and innovative methods for quality education. Our curriculum

provides a breakdown of the day-to-day activities on a minute-by-minute basis

to be implemented by the teachers. The courses are taught through a

combination of unique content, animations and practical examples. To ensure

quality education, we have empanelled professionals through various field of

education.


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Scalable Business Model

We are confident that our business model is scalable as we have expanded ourpresence to various locations within a very short span of time. The uniformity

adopted by us in development and dissemination making our products unique

and helps in making our business scalable.

As a part of our educational services to K-12 schools, we have introducednovel teaching aids supported by technology to improve the quality of

education. We have introduced interactive whiteboards which induces adoption

of technology at a very early age in the students and the same technology is

used across the K-12 schools. Also our techniques include making students anactive participant in the learning of a subject by seeking their active

participation. The audio video curriculum aids enhance students retention

capabilities and ease understanding of concepts.


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STRATEGY

Our goal is to maintain a leadership position in providing

educational services to K-12 schools and beyond in India.

Enter new geographical markets and further deepen our presence

in existing markets

We are ready to enter into contracts with several K-12 school

Managements for providing educational services to K-12 schools.


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Strategic Acquisitions and Partnerships

As a strategy, we are operating through franchisees model. In order to

expand our business and presence in the market in pre-schools, we evaluated

opportunities and ready to run the pre-schools under our brand name.

Providing quality educationWe believe that our standardized method of teaching sets us apart from our

competition. We believe that quality of our education content will continue

to be an important factor driving the success of our products. We will

enhance six sigma model to improve the quality of the content for our entire

range of products.


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Increasing penetration level in pre-school industry

The pre-school industry currently has 1015% of the urban population in the

24 years age bracket enrolled in pre-schools in the country. However, with

greater thrust on education and increasing awareness about the necessity of

quality pre-school education, the penetration level is set to rise, thus resultingin growth of the pre-school and Schooling Industry in general.


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Growth Drivers in the Education Sector

Government initiatives to improve literacy rate

In order to improve the literacy rate in India, plans like SSA, MDM have been

introduced by the Central Government. The increased focus on education has

resulted in the K-12 enrolments in public institutions to grow steadily.

Massive allocation of Funds for Education sector in Union Budget

2011-12:

The UPA Government has given more emphasis on Education Sector and has

allocated funds to the tune of Rs. 52,000 crores in the Union Budget 2011-12.


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Government Looking out for PPP Model:

The State Governments are looking forward to enhance spread of education to

the nook and corner of each State. To achieve this goals State Government is

implementing Public Private Participation model. There are very few player in

Industry who has entire package of products under one roof and Firstobject is

one of the player amongst them having quality products with unbeatable rates

compared to its peers. Heavy spending on Education:

In India spending on higher education currently stands at 46,200 crore. The

growth for this segment is projected at 12.8% and is expected to touch nearly

1,50,000 crore in the coming decade. Right from kindergarten to postgraduation, there is an influx of players who are looking to create a niche

through various marketing and branding initiatives. Firstobject is one player

amongst other having entire range of educational products.


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Changes in the Indian economy

Structural changes in the Indian economy such as urbanization and risingdisposable income coupled with increasing emphasis on education by parents is

expected to accelerate the household expenditure on education. The transition

of households from lower Income to higher income bracket will provide an

impetus to spend on education by private households.

Increased private sector investment

The presence of private players in the K-12 sector has been increasing due to

the need for quality education and better infrastructure, which are found

lacking in several government-owned institutions. The share of privateinstitutions in the K 12 segment will gradually rise to 26% in 2014-15 from

19% and 23% in 2004-05 and 2009-10, respectively.


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Revenue Boosters:

In our view, Revenue Boosters are high order inflows or substantialincrease in business volumes in the wake of company getting government

orders and heavy subscriptions to its education portals.

Key Risks :

We believe, key policy changes in the policy decision with regard to the

outsourcing of works from the USA or European countries, sudden changes

in Educational syllabi, etc.. can affect effect the revenue of the company,

but company had well diversified in its business verticals that even during

recession period company has shown steady growth.

I


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Firstobject India Technologies Ltd

1st Floor, Swayamkrishi, Smiline Building,

No: 8-3-952/10/2 & 2/1,

Srinagar Colony, Hyderabad-500 073

Tel: 040 - 20000235/20000233

Website: www.firstobjectindia.comEmail: [email protected]

I t


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firstobject technologies ltd 290911

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