July 2015
Strictly
confidential
Disclaimer
This note is prepared exclusively for the benefit and internal use of [xxxx] and their affiliates in
relation to any proposed transaction in the Indian Media & Entertainment industry. This note does
not carry any right of publication or disclosure to any other party. Neither this note nor any of its
content may be used for any other purpose without prior written consent of Noida Software
Technology Park Limited (NSTPL or Company).
The information in this note reflects prevailing conditions and our view as of this date, all of which
are, accordingly, subject to change. In preparing this note we have relied upon and assumed,
without independent verification, the accuracy and completeness of information obtained from
public sources and the management. Accordingly, neither NSTPL nor any of its employees can be
held liable for any error or misrepresentation in any such information.
Pg 2
Strictly
confidential
Executive Summary
Corporate Overview
Business Segments
Future Strategy and Financial Projections
Pg 3
Strictly
confidential
Incorporated in 1999 and based in New Delhi, Noida Software Technology Private Limited (NSTPL or Company) is:
1
1
2
2
Service
Service ranges:
ranges:
B2B
B2B and
and B2B2C
B2B2C
6
6
3
3
Garner
Garner significant
significant
share
share of
of
broadband
broadband over
over
satellite
satellite
5
5
Create
Create aa lead
lead
product
in
product in every
every
category
category and
and
market
market with
with no
no
alternative
alternative
Ensure
Ensure largest
largest
share
of
share of pie
pie
through
through 3-tier
3-tier
strategy
strategy
Focus
Focus on
on
unpenetrated
unpenetrated
markets
markets
4
4
Become
Become aa key
key
facilitator
facilitator for
for
Digital
India
Digital India
Pg 4
Strictly
confidential
and the only one with infrastructure in place to tap the untapped
India: large MSOs focused mainly on Phase 1&2 markets
Subscriber Base (mn)
Company
Phase 1 & 2
34
Phase 3 &4
105
Phase
1&2
Phase
3&4
Total
Hathway
6.8
5.1
11.9
Siti Cable
3.6
6.8
10.4
IMCL
2.3
6.2
8.5
Den
6.0
7.0
13.0
Digicable
[2.5]
[7.5]
10.0
21.2
22.6
43.8
Others
12.8
82.4
95.2
Grand Total*
34.0
105.0
139.0
Source: FICCI Frames 2015, Company reports. * Total C&S subscribers (includes DTH customers)
Pg 5
Nonexclusive
solution
Consumer
Exclusive
solution
Service
Provider
Bulk Service
Provider
Strictly
confidential
Cable
Broadband
Pg 6
Strictly
confidential
Transaction
Instrument
Equity Shares
Structure
Investment in NSTPL
Use of Proceeds
Process
Pg 7
Strictly
confidential
Executive Summary
Corporate Overview
Business Segments
Future Strategy and Financial Projections
Pg 8
Strictly
confidential
NSTPL: Overview
Overview
Incorporated in 1999 and based in New Delhi, NSTPL is a digital video infrastructure company
Managed services for Broadcasters: operates 3 Teleports, collectively supporting over 50 broadcasters currently
Cable: only license holder of HITS technology in India, the most efficient mode of delivery of digital signals
Broadband: supplies broadband and related products through hybrid satellite and terrestrial networks
Current list of channels includes Neo Sports, Aastha, Sanskar, Sadhna and foreign channels like NHK (national broadcaster of Japan) and
KBS (national broadcaster of Korea)
Teleport
Teleport Operations
Operations
DSNG
DSNG Operations
Operations
Integration
Integration
Services
Services
Digital
Digital Cable
Cable
Distribution
Distribution (HITS)
(HITS)
Pg 9
Broadband
Broadband Services
Services
Strictly
confidential
NSTPL incorporated
2000
2007
2003
Secured
the
first
Teleport License in
India
Secured the first HITS
License in India
Incorporation
Signed a multi-year
and
multitransponder
deal
with Intelsat
Signed
a
JV
agreement to launch
another teleport in
Hyderabad
Regulator
y Events
2009
2011
Company
Offerings
2012
2014
Uplinking
of
50+
channels from both the
teleports
Announced launch of
HITS platform
Key
Partners
Pg 10
Strictly
confidential
Dr. JK Jain
Group Chairman
Education
Media
Digital
Digital Video
Video
Infrastructure
Infrastructure
Media
Media
Incorporated in 1991
Listed company
First 24 hour news channel
in India
Also provides studio and
equipment on rent
Education
Education
Provides
courses
in
Business
Management,
Mass
Communication,
Healthcare Management
and Technology
Offers full time programs at
both the Under Graduate
and Post Graduate levels
~ 950 students
Age: 70
Education: MD, Surgeon
Experience: Founder of Jain Group
and pioneer of satellite TV era in India.
Other Affiliations: Former member of
Parliament (Rajya Sabha)
Pg 11
Healthcare
Healthcare
Incorporated in 1991
Currently
provides
healthcare services to the
low and middle income
group located in the far
flung inaccessible rural
parts of India
Company also conducts
IEC*
activities
for
preventive health efforts of
the Government
Strictly
confidential
Managing Director
(Ankur Jain)
Executive Director
(Sadhana Bharadwaj)
Network
Operations
Satellite
HITS
Product
Development
Tech Lab
Teleport
Cable
(Rakesh Gupta)
Broadband
Business
Development
Broadband
(Ravi Ailawadhi)
Marketing
Communication
Billing
Finance
(Sunil Malhotra)
Fund Raising
(Ranbir Das/Gagneet
Ahuja)
Secretarial and
Compliance
(Satyendu Patnaik)
QOS
Customer Service
Customer
Care
Logistics
IT
(Amitabh Mishra)
Accounts &
Taxation
(Ajit Sinha)
Business Planning
(Vivek Garg)
Pg 12
Strictly
confidential
Ankur Jain
Managing Director
Bharti Jain
Whole-time
Director
M.D Asthana
Whole-time
Director
Age: 42 years
Education: MS in Communication from Johns
Hopkins University, Baltimore, USA.
Experience: Worked with the group in various
professional capacities for the past 16 years and
areas of expertise include media and telecom
Responsibility: Leads group's overall strategic
expansion. Oversees financial management,
business development and legal affairs
Age: 42 years
Education: MBA in Marketing
Experience: Management professional with 16+
years of experience in marketing and company
administration
Responsibility: Works closely with the
government and is part of start-up projects
within the group
Age: 73 years
Experience: Retired IAS officer. He has served
in the Agriculture, Rural Development and Food
Departments in various capacities and retired as
Principal Advisor to Planning Commission in
December 2000
Age: 72 years
R N Agarwal
Independent
Director
Vishnu Bhagwan
Independent
Director
Age: 74 years
Experience: Retired Civil Servant (IAS) and has
worked in various positions in the State
Government as well as in Central Government
and retired as Chief Secretary of Government of
Haryana in December 2000
Age: 72 years
Experience: Retired Civil Servant (IAS) and has
worked in various positions in the State
Governments as well as in Central Government
and retired as Secretary of Government of
Haryana in December 2001
Anil Kumar
Independent
Director
Pg 13
Strictly
confidential
Sadhna Bharadwaj
Executive Director
MBA
More than 23 years experience with a
national TV platform, KPO platform and a
Rural marketing business
In charge of the go to market strategy and
implementation
Rakesh Gupta
Head- Jain Hits
Business
Sunil Malhotra
Executive DirectorFinance
Devinder Singh
Head- Regulatory
Ravi Ailawadhi
CEO & Head- Broadband
Business
Ajit Sinha
CFO
CA
More than 33 years experience in PSUs
In charge of the overall finance, planning and
fulfilment functions of the group
BE (Telecom Engineering)
More than 35 years experience
Department of Telecommunications
Reliance communications
with
and
ICWA & CS
More than 24 years experience in senior
management
positions
with
various
companies
Vivek Garg
VP Business Planning
Pg 14
Ranbir Das
VP Finance
MBA
More than 15 years experience in Broadcast,
Satellite and Cable TV industry
Has architected the HITS opportunity from
beginning and is responsible for its
operational implementation
MBA (Finance)
More than 7 years of experience in Finance &
MIS
Strictly
confidential
Greater Noida
Compression Room
Monitoring Room
HPA Room
Channel Antennas
The
teleport
division
has
downlinking antennas (6 in
number) and 1 up linking antenna
Pg 15
Strictly
confidential
Executive Summary
Corporate Overview
Business Segments
o Managed Services for Broadcasters
o Cable Services
o Broadband Services
Pg 16
Strictly
confidential
In INR mn
39250
%
19
R:
G
CA
16630
CY 12
CY 17E
Content
Storage
Segment
Classification
Content
enrichment*
Playout
Existing Outsourcing
segments
Playout Outsourcing**
Outsourcing
Penetration#
Satellite
12%
88%
Alternate
New
Functions/Needs
Satellite Broadcast
Outsourcing
39%
61%
In-house
Outsource
d
Note:*- Only technology enabled solutions for content enrichment are included not the actual service provision/ manpower; ** - of non news channels,; # - by Volume
Source: Industry
Pg 17
Strictly
confidential
In INR mn
100%
14263
15000
%
20
R:
G
CA
10000
75%
50%
5709
5000
25%
0%
CY 12
Potential Market
CY 17E
Satellite broadcasting services: 61% of the work still done in-house, significant potential to
grow going forward:
o Shift from up linking overseas to India
o Growth of HD channels
HD services require more higher bandwidth than SD
In INR mn
:
GR
CA
23
7044
4068
2530
1200
2976
1330
Column1
CY 12
Cloud Based Services
CY 17E
Digital Streaming
Cloud Distribution
Cloud based distribution enables distribution to countries across the globe, while reducing
the cost of delivery and scale
India has one of the largest diaspora across the globe (~30 mn); serving this large
population with broadcasting content from India provides an interesting opportunity
Digital Streaming
With the rise of multi channel delivery, broadcasters increasingly need to transmit data to
multiple content & delivery partners
This service would also be bundled with custom playout for each mode of delivery as well
as transcoding services for e efficient delivery
Note:*- Penetration of Outsourcing is calculated as number of channels utilising outsourced playout solutions in India by total number of active channels broadcast in India; ** - Basis Industry Discussions
Source: Industry
Pg 18
Strictly
confidential
Column1
Digit al Cable
Analog
Registered TV Channels
831
828
800
793
With digitization improvements in delivery such as HD, 3D become feasible and a focus area
for broadcasters
o HD is a key trend among Indian broadcasters with over 35 HD channels currently
o HD channels also expand the market as SD & HD channels are expected to co-exist in
medium term
o Introduction of new formats such as UltraHD and 3D are expected to be further add to
the growth
1000
821
826
649
600
524
50
400
HD Channels
40
30
200
20
10
0
0
FY09
FY10
FY11
FY12
FY13
FY14 Dec-14
3
2010
22
2011
Pg 19
31
33
34
2012
2013
2014
Strictly
confidential
TV Channel
Uplinks
Downlink of
International
International
Channel
Digital
Satellite News
Gathering
(DSNG)
Turnaround
services
Playout
Facility
International
Fiber
Connectivit
y
Integration of
Teleport,
DSNG and
Studio
Studio
News /
Contribution
Contribution
Feeds
Telecast
and
Transmission
services
to
international broadcasters , news agents,
editors from India to any part of world (currently
operational in Delhi only)
News
away
with
Consultancy
for
for operations
operations
and Set-Up
Studio and
Production
Production
Services
Pg 20
Strictly
confidential
Satellite
PLAYOUT
SERVICES
BASEBAND &
UPLINK
SERVICES
Headend
Consumer
IRD at LCO
Premises
NSTPL Infra
3rd Party Infra
LCO/MSO downlinks the signal at their premises (through IRD - Integrated receiver/decoder )
Pg 21
Strictly
confidential
Pg 22
Strictly
confidential
Number of Channels*
60
50
46
54
40
Key terms
20
Revenue
Uplinking revenue per SD channel: INR 0.4 mn per month
0
FY 13
FY 14
FY 15
Costs
Transponder Charges for ISRO: INR 4.5 mn per month
Transponder Charges for Intelsat : USD 40,500 per month for
9 Mhz
301
300
290
280
270
278
271
260
250
FY13
FY14
FY15
Pg 23
Strictly
confidential
Thank you
Pg 24
Strictly
confidential