BEBB India Private Limited
Vendor Development Program
Proposal for Kirloskar Brothers Ltd (KBL)
Private & Confidential
About Power2SME
Power2SME- Indias first Buying Club for SMEs launched in 2012
Our Customers- Small and medium enterprises (SMEs)
Our Suppliers- Large manufacturers
We buy from the manufacturer and sell directly to the SME, cutting
out the middle chain of distributors & wholesalers
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Our Vision
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EMPOWER
SMEs TO
ENABLE THE
INDIA
GROWTH
STORY
2
Our Business Model
Private & Confidential
DEMAND
AGGREGATION
POWER2SME SHIPS
GOODS TO SME
PAYMENT MADE
TO POWER2SME
PAYMENT MADE
BY POWER2SME
SMEs
SUPPLIER
4
TRANSFER OF TITLE TO POWER2SME
PRICE NEGOTIATIONS FOR AGGREGATED
DEMAND
Traditional Supply Chain
vs Power2SME
Private & Confidential
Traditional
Power2SME
MANUFACTURER
SMEs
CSA Distributor
Dealer/
Retailer
MANUFACTURER
SMEs
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Mitigating Volatility
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Managing supply chain is increasingly challenging for smaller vendors
Consistent commodity prices increases are impacting the bottom line
Consistency in quality of raw material is difficult if they focus on lower
priced raw material
Exchange rate fluctuation has created significant price disparity for
imported products
Existing credit lines are getting squeezed
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Power2SME Proposal
Private & Confidential
Tier 2 & 3 Vendors
o KBL is today working directly with Tier 1 vendors to help reduce their
procurement costs
o The Corporate Supply Chain directly negotiates on behalf of the Tier 1
vendors with companies like Jindal & Hindalco etc to secure the best price
o But there is no such process in place for the Tier 2 & Tier 3 vendors
o Power2SME would like to work with KBL for procurement of raw materials for
your Tier 2 & 3 vendors
o This will be especially relevant for companies which have turnover ranging
from Rs. 5 to Rs. 50 crores
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Proposal (Cont.)
Private & Confidential
Process
o KBL can identify their vendors who are buying similar grade of steel/polymer
o We will pool the demand of SMEs for the raw materials
o We will buy directly from the manufacturer and sells to the SME directly by
cutting out the middle link of distributors and wholesalers and thereby help
reduce the purchase price.
o We will take complete ownership of the entire order process, including
Taking title of the goods
Ensuring quality of the raw material
Delivery to the factory of the SME
Financing of the raw material purchase
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Imports
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For engineering & commodity polymers, it is extremely difficult for SMEs to import
their requirement directly as that requires commitment to a large quantity
Power2SME can help here by acting as the order aggregator
We will form a consortia of vendors buying similar grade polymers
We will negotiate directly with a large manufacturer abroad for the
combined quantity and get a competitive price
We will enter into individual agreements with each SME for the credit period
that they need to buy the imported raw material
We will import the required polymer in one bulk order
We will then deliver the respective quantities to each member
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Financing
Private & Confidential
Inventory Funding
o We can offer raw material on credit to these vendors
o We have arrangement with NBFCs such as Shriram City & Religare
to structure options for financing purchase of raw materials from us
o We can offer short-term financing (without collateral) for SMEs.
o Unlike other business loans that are for a minimum period of 2
years, we offer structured credit products for 60-90 days period
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Products
Private & Confidential
We can provide the following products
o Steel products such as
Cold Rolled Coils, Plates & Sheets (Mild Steel, Stainless Steel, Alloy Steel)
Hot Rolled Coils, Plates & Sheets (Mild Steel, Stainless Steel, Alloy Steel)
Structural Angle, Beam, Channel, Hex and Rounds (Mild Steel, Stainless Steel,
Alloy Steel)
Wire Rods (Mild Steel, Stainless Steel, Alloy Steel)
Galvanized Steel Coils, Plates & Sheets
o Commodity Polymers such as
PVC (Poly Vinyl Chloride)
LDPE (Low Density Poly Ethylene)
LLDPE (Linear Low Density Poly Ethylene)
HDPE (High Density Poly Ethylene)
PP (Poly Propylene)
At present we dont deal in DD and EDD steel
We can also explore aluminum and copper if there is sufficient demand from vendors
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Products (Continued)
Private & Confidential
o Chemical Additives such as
Chlorinated Polyethylene (CPE)
Chlorinated Paraffin Wax (CPW)
Epoxidised Soya Bean Oil (ESBO)
Poly Ethylene Wax (PE WAX)
Stearic Acid
Titanium DiOxide
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Value Proposition for vendors
Private & Confidential
ONE STOP SHOP
Wide range of products
Pan-India Supplier base
FINANCING
Credit financing through financial institutions
VALUE ADD SERVICES
Insurance
Domain name & website
FICCI CoSME membership
ONLINE PORTAL
24X7 Availability
Online reporting & tracking
ZERO FEES
No service charges or
membership fees
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COMPETITIVE PRICING
for raw materials
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Our Benchmarks
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Quarterly GMV grown 67x in 6 quarters
FY 2013
FY2014
Diversified products base
R
e
b
a
s
e
d
t
o
1
FY2014
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Our Benchmarks (cont.)
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Registered base of 15,000+ users
Average Repeat Transactions rate of 65.0%
Consistent Growth In Transactions
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Geographical Spread
Excise Duty registration and
warehouses present in
Rajasthan
UP
HP
Uttrakhand
Haryana
Our
upcoming
Offices
Offices in
Gurgaon (H.Q)
Mumbai
Pune
Ahmedabad
Chennai
Uttaranchal
Himachal Pradesh
Uttar Pradesh Rajasthan
CORPORATE
OFFICE
(Gurgaon)
Punjab
Andhra Pradesh
Tamil Nadu
West Bengal
Karnataka
Gujarat
Maharashtra
Supplier & Product base
Private & Confidential
CONSTRUCTION
AUTOMOTIVES &
MACHINERY
PLASTICS & PRINTING
INDUSTRIAL &
CHEMICALS
PRODUCTS
Steel (Mild,
Stainless, Alloy)
Anticorrosive
Paints
PRODUCTS
Commodity
Polymers
&
Engineering
Polymers
PRODUCTS
Titanium DiOxide,
Calcium
Stearate
Stearic Acid,
Paraffin Wax
PRODUCTS
TMT Bars, Paints,
Cement
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Investors
Private & Confidential
We have raised nearly US$10 million funding from
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Private & Confidential
Management Team
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Responsible for business
development, strategy
formulation and implementation
Is the Director & Founder-CEO of
Denave, Indias largest
technology sales enabling
services company
Built Denave into an INR 1 bn
company from ground up
without external funding
24 years of experience in sales &
marketing, with 13 years as an
entrepreneur
Prior to Denave, he has worked
at senior positions in firms such as
Oracle, Microsoft and Tata Unisys
R. Narayan
CEO & Founder
Power2SMEs
aim is to help
unlock the
potential of
SMEs, whose
progress is so
critical to the
India growth
story
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Private & Confidential Private & Confidential
Responsible for supplier
development
More than 12 years of
experience in sales &
distribution
Was Director at C.P Systems
Pvt. Ltd.
Started as an Entrepreneur
(Partner, Synergy Worldwide)
Was handling Sales and
Distribution for FMCG majors
like Rasna International, Parle
Agro, Karam Chand
Appliances Pvt. Ltd (brand
Allout)
Responsible for business
development
Over 15 years of
experience in sales,
strategy and corporate
development across
mobile, eCommerce,
media & enterprise
businesses
Was heading sales &
marketing for Apalya,
Indias leading mobile TV
provider
Has also worked with eBay
India, Quest International
and BPL
Deepak Gupta
VP Business Development
Sumit Bhatia
VP Supply Chain
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Management Team
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in News
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Mainlines, Financials
& Magazines
Manufacturing Today
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Private & Confidential 19
(Hindi)
Regionals
(Hindi)
(Hindi)
Thank You
