Easy gold presentation

G o l d T o m o r r o w . A t T o d a y ’ s P r i c e .

Religare Easy Gold


Section I:

Religare: Overview & Footprint in �nancial services

Section II:

Expansion: Seizing new opportunities

Section III:

Why Gold?

Section IV:

Product- Easy Gold

Table of Contents

Section I: a b c d

Religare: Overview & Footprintin financial services



Religare’s presence in the financial services

International

Religare Finvest Ltd.

Lending

India Joint Venture

Aegon Religare

Life Insurance(44% JV with AEGON)

Religare Macquarie Wealth Management

Wealth Mgmt.(50% JV with Macquarie)

Religare Capital Markets Ltd.

EM Led Investment Bank

Religare Securities Ltd.

Brokerage

• Religare Commodities Ltd• Religare Bullion Ltd

Religare Asset Management

Asset Management

Religare Health Insurance

Health Insurance

India Subsidiaries

Section I: a b c d


The Journey so far….

Controlled growth in pan-India network

2,163

2,092

1,853

1,464

979

330 455 503 557 566Cities

No. of Locations

Employee strength* -steady and improving leadership depth

9,446

8,753

8,607

8,487

4,372

Mar 07 Mar 08 Mar 09 Mar 10 Sep 10Cities

(No.)

• Religare today offers a wide array of products and

services including broking, insurance, asset

management, lending solutions, investment banking

and wealth management.

• With close to a 9000 employee base across multiple

geographies, Religare serves over a million clients,

including corporate and institutions, high net worth

families and individuals, and retail investors.

Expanding portfolio

Broking & DepositoryServices

2002

Lending


2006

Life Insurance

Assect Management

Distribution

Lending


2008

Health Insurance

Global Asset Management

Alternate Investments

Investment Banking

Life Insurance

Assect Management

Distribution

Lending


2010

Section I: a b c d


Religare’s footprint in the broking domain

3.9

3.6

3.5

3.4

Q2 FY10 Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11 Q2 FY10 Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11

Steady equity broking market share

Growth in distribution through franchisees

Religare’s Market Share Religare’s Market Share

* Source: NSE, BSE

• Growing market share in broking business

• Powerful Research & Analytics

• Pan India presence

• Dedicated Corporate Desk

• Dedicated Arbitrage Desk

• Nationwide presence in Mandi Locations

1,891

1,852

1,747

1,686

1,591

Q2 FY10 Q3 FY10 Q4 FY10 Q1 FY11 Q2 FY11

1,20

9

1,30

0

1,33

3

1,43

9

1,48

2

Franchaisees

4.9

4.5

4.4

Continue to be among the leading playersin the commodities segment

Own Branches419

413

414

386

382

Section I: a b c d


Expansion:Seizing new opportunities

Section II: a b c


Religare is building a leading emerging market �nancial services group, anchored in India and

underpinned by three secular trends

Our Road Map/Road Ahead

VISION“To be the leading emerging markets financial services group driven by innovation,

delivering superior value for all stakeholders globally”

Opportunity to unlock value in western asset

managers by creating a multi-boutique platform

providing access to alpha and capital in emerging markets

Global Asset Management Platform

Invdian growth story leading to

deepening of financial services and rapid

growth of profit pool

Integrated Indian Financial Services Play

The increasing weight and growing

integration of Emerging Markets

with the global economy

EM led Investment Bank

Section II: a b c


Strategy is to create strong Global presence

USA

BRAZIL

UK

SOUTH AFRICA

DUBAI

INDIAJAPAN

HONG KONG

MALAYSIA

SINGAPOREINDONESIA

SRI LANKA

Section II: a b c


Why Gold?

Section III: a b c

Gold is the safest investment option which guards againstmarket volatility and inflation


Net Retail Investment (in Tonnes)

• “Gold is on track to rise to $1,650 an

ounce over the next 12 months (Nov 2011 ),

and could surpass that level”- analysts at

Goldman Sachs

• UBS has forecast gold price to touch USD

1,550 in 2011

Price trend in India250

200

150

100

50

0

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

200

150

100

50

0

-50 GOLD SENSEX BSE 500 BSE 200 BSE 100 BSE METL BSEMDCAP BSESMCAP

3 Year5 Year

1 Year

Source: WGC, NCDEX, RBI

Section III: a b c

0

5000

10000

15000

20000

25000

Gold Prices

1991-92 1995-96 1997-98 1999-00 2001-02 2003-04 2005-06 2007-08 2009-10 2011-12*


• Gold prices have been rising at a CAGR of 20.75% in India

• The country (India) currently has one of the highest saving

rates in the world; estimated at around 30% of total income,

of which 10% is invested in gold.

• Religare is venturing into Gold to capture this

opportunity which is largely fragmented.

• Extensive research done over major cities in India shows

that there is a need of a product:

• Which locks in the price of Gold.

• In addition to locking the price, gives the facility of part

payment in multiple modes.

• Avoids hassles of storing physical Gold

• When my both kids were born at that time we took

10-tola biscuit. Every year on birthdays we buy 10 gm

gold coin. – Respondent from Mumbai

• Sona such ka shringar hota hai, dukh ka aahar hota

hai.– Respondent from Delhi

• Gold is also a security; it is security for the family for

bad times – Respondent from Ahmedabad

• It is our custom in Muslims that putting min 40 to 50

sovereign to our daughters. If we put, we get 8soverign

of gold in return from bride groom side. – Respondent

from Chennai

What’s so great about Gold?

Financial Reasons Emotional Reasons

Section III: a b c


Product-Easy Gold

Section IV: a b c d e


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

• Monthly

Easy Gold



Product- 1 Year Plan

* Vat and Delivery Charges will be taken separately at the time of delivery


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


Product- 2 Year Plan

* Vat and Delivery Charges will be taken separately at the time of delivery


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%


Charges Applicable

Particulars

Vault charges post scheme maturity/closure

Delay in payment up to 9 days

Delay in payment beyond 9 days

Prepayment Charges

Death

Cheque/ECS bounce charges

Part delivery charges

Delivery Charges

Exit from scheme

Charges Applicable

a. Free for 1st month, b. Rs 200/10g every quarter thereafter.

24%p.a of total installment value due

Termination of contract

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

5% of remaining value of contract

Nominee will be eligible for refund of entire deposit amount after taking into considera-

tion market value of product.

Starts with Rs. 300/bounce and goes upto Rs. 500/- on subsequent bounces

As per the weight of the bar/coin and maximum up to 2% of the product delivered

Rs 50 for contracts up to 20g

Rs 100 for contracts greater than 20g

Within 3 months, forfeiture of entire amount

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.



Thank You

Easy gold presentation

Economy & Finance

Transcript of Easy gold presentation