Small description of our Franchising model, the large gap we see in the Consumer electronics market in India, and our plans to address the same. This document is primarily aimed at the investing public.

1. Part I
Journey from Single Store to 12
store Multi state operationand
building the Franchise Model
Thasmai Automation
• Background
• Franchise Model
• Expansion Plan
• Investments Needed

2. History- Background & Early Mistakes/Learning
Ѻ THASMAI- one of the Earliest Automation/AV/Security System Integration companies
,team of Engineers + MBAs from Manipal group institutions, first time entrepreneurs with
no seed money or industry mentors
• Karigirish Murthy, TAPMI, Over 13 years of sales and leadership experience in companies like
Honeywell, Crompton Greaves, WCC and founded Thasmai. Currently CEO
• Vijay Chengappa, TAPMI, 11 years of finance, project management experience in companies like
NovoNordisk, Infosys, Philips and Thasmai. Currently Director.
• Have pivoted from Corporate to residential, security to Automation/AV while building a 12
branch 50 member company
• High cost of Capital for several years (hand loans, money borrowed from friends circles)
• Intensive marketing campaigns over several years to build brand and attract influencers
• Top of the line pay structure to attract best talent from the market (getting people from Tier
2 colleges, who’d otherwise be going in IT)
• Prime real estate and overheads in Bangalore & other cities for 6+ years

3. History- Movement into Asset Light Franchise Model
Ѻ Over 12 physicalbranches in 3 southernstates, with plan to ramp up to 22 by mid 2019. Portfolio
of over 1000 projects executed across 3 states. Have worked with most top architects/Builders
across Karnataka/TN
Ѻ Brand name built and continually invested in
• Promotions in trade shows such as Acetech/ConstructionExpos/What Hi-Fi
• Top position for Home Automation & Theater related keywords online & huge Social media engagement
• Natural Step up into product launch once retail presence and Pan Indian Integration model is refined
Ѻ Movement into Asset Light Franchise Model
• Total costs of Branches borne by Franchisees, so no capex for brick and mortar.
• Deleveraging Expenses- Mitigating the risk of Fixed Assets and Monthly Overheads
• Only central service delivery models to be set &perfected
• Selection of Franchisees who meet earlier criteria, Immediate Traction can be gained. Leadgen is
assured, only order conversion & Execution to be focused on.

4. .
Franchise Model & Criteria to Appoint Franchisees
• Training and Deployment of Sales Engineers
• Technical and sales support to close bigger orders
• Ownership of the order (design/quotation/execution/service)
• Tie up with brands and supply chain management
• Timely Execution and Service. Centralized Marketing efforts to build brand Thasmai
Thasmai
• Invest on retail store, Demo Items and Interiors
• Build a marketing model to ensure customer traffic
• Completing the sales cycle for routine orders
• Responsible for monthly store and sales overhead
• Profit sharing from Thasmai for every order closed as per initial terms
Franchisee
Criteria to appoint Thasmai Franchises
Local Entity/
Business House
Should be into non technical trading business for products in Infrastructure
field (Ceramics/Sanitaryware/Cement/Paints)
Existing business (minimum 5 yrs old) and should own a showroom
Should agree to run Thasmai Franchise in his existing showroom, or an
extension to the original space

5. .
Thasmai Circle of Competence & Vision
OurCoreCompetence
Training Modules
Quality Execution process
and standardization
Tech Enabled Processes and
Systems
Quality service
Marketing efforts to build
“Brand Thasmai”
Network of
Franchises
(50+ across
India)
Assets
owned by
Third
parties (No
overheads)
Pan India
Presence
with
multiple
product
lines & over
100 brands

6. .
Potential Revenue Forecasts
Each Branch
(averaged) will
hit 1.5CR order
bookings
Average gross
Margin (including
Installation) of
30%.
15% split with
Franchisee
owners
Central
overheads of 3 to
3.5CR (Including
compliances
GST/TDS)
Revenues- 45 Crores from 30 branches
+ 5 Crores from special orders
7.5 CR gross margin on items excluding
Franchisee Commissions
Potential Net profits of 4-4.5CR per annum
2018 2019 2020 2021
Total Revenue 1,400 2,280 4,980 8,160
Material Costs & Franchisee Fees 1,092 1,894 4,156 6,868
Gross Margins 308 386 824 1,292
Overheads 120 130 281 422
EBITDA 188 256 543 870
Loan/Interest Repayments 25 25 150 60
EBT 163 231 393 810
Corporate Tax 49 69 118 243
Net Profit 114 162 275 567
2018/19- Consolidation of Existing Branches & ReEntry into BMS
segment
₻ 14-15branches already setup in progress to be completed by end 2018 or early
2019
₻ Conservative Order Booking (OB) estimates in Tier 1 cities (marked in Bold) taken
as 15L per month for the first year and 25L from Year 2 Onwards
₻ Conservative Order Booking (OB) estimates in Tier 2 cities taken as 10L per month
for the first year and 15L from Year 2 Onwards
2019/20- Entry into 8 new branches and BMS in all states
₻ Branches #20-32 branches to be set up
₻ BMS Segment gradual presence in other states as well
2021 onwards- Entry into 8 new branches and BMS in all states
₻ Branches #32+ to be set up
₻ BMS Segment gradual presence in other states as well

7. .
Investment Scenarios
• 8 cities, 12 branches
• Sales target-10 Cr annually with
pending OB of 18 Crores
• South India’s biggest dealer for
Harman, Crabtree, Denon etc
• Over 50 branches across India
• Accumulated Ordersof over 100
Crores,net profits of close to 8 Crores
• India’s Biggest dealer for many brands
• Own solution tailored for Indian
Marketplace
• Prime Acquisition target for any new
playersentering the market
2018-19 2021-22
 Sales & Distribution
Channels built for Pan-
India
 Huge customer and
Architects base
 Brand equity
 Working system with all
processesset
 Valuations of at least
120-190 Cr in Market
Up to 30% Di;utionAll Equity
• Equity offering at 10 CR valuation, 50L at 5%, 1CR for 10% and 2CR – 20%
Own a Piece of the Business + Fixed returnsEquity + Debt
• 1CR with 5% ownership, EMI mode of repayment in 4 years
• 1.8 CR with 10% ownership, EMI mode of repayment in 5 years

8. PART II
The Bigger Picture
Single Pan-India Integration for
Small Ticket projects
Consumer Projects
• Landscape
• Problem
• Current scenario
• Potential
• Why us?
• More details...

9. Opportunity Identified
Do you want to create a new Genre (CONSUMER PROJECTS)
Consumer
Durables
Interiors &
Fabric
Consumer
Projects
Characteristics & Players
• Big ticket, Higher involvement. Customer needs Look-Touch-Feel (DEMO)
• Pre-installation planning needed, Execution time of 1-2 days (integration/
programming/prefixing), Needs specialized after sales service.
• Custom specifications; >1 Visit(s) and Coordination needed
• Training for Personnel needs to be more technical
?
• Ticket Size- < 1.5L and single unit purchases
• Simple Installation (less than 1-2 Hrs)
• Not Much technical know-how needed,
• Well defined AMC and warranty/replacement model
• Ticket Size- Large & Varied, usually >2L
• Raw Material Supplies & being sold as a Brand
• Non-technical and design based
• Satiated market with fragmented & Organized Players

10. Integrationin small ticketprojects (B2C)
Outsourced to local contractor/electrician/Mason
Outsourced to Large regional
players and City players
References, Through PMCs &
Advisory firms
Contracting in Mid-Sized projects
Outsourced to regional EPC players
Well Defined, Professional,
Contractual
Outsourced to large EPC
players such as L&T, NCC
and GMR
Closed Club: Massive Entry
Barriers & stringent vetting
Projects Landscape in India
Contracting in Large & Mid-Large Sized projects
Outsourced to largeEPC players such as L&T,NCC and GMRLarge projects
range from 50 CR
to over 300 CR,
mostly Institutional,
Corporate and Govt projects
• Base of the pyramid, with over a million Millionaire
households
• 9000+ Luxury villa/Apartments in each large city (Bangalore)
• World’s 3’rd largest economy, mostly Consumer driven and off
the mainstream (just 3% of IT payees, and 13L registered
businesses)
• Tier 2 cities amplify the trend further with huge number of
agricultural HNIs, small business owners
Mid Range projects, mostly center
around companies and institutional
orders. Order sizes can be from 1CR
to 20 CR. Some MInor government orders
also come in this range
Massive Opportunity for a Single player to bring
in scale, Processes and Uniformity!

11. Consumer Projects – Market Overview in India
Home
Automation
Estimated 30,000CR
market in India by
2020
Sunrise sector with
handful of serious
integrators in market
Home Theater &
AV
8000 CR market for
dedicated HTs, and
4500 CR market for
Multipurpose room
solutions
Fragmented market,
over 30 worldwide hi-
fi brands operational
Home Security
18,000 CR market in
India by 2020.
Prices freely available
& all local vendors
technical equipped to
serve
Tertiary Services
(Central
Vacuuming/AC/Lifts/
Motors)
Passenger Elevators-
500CR
HVAC market- 12,000
CR
Several Unexplored
industries (Central
Vacuuming/Gate
Automation/Wireles
s Charging)
Visible market of 75,000 CR (15$ Bn) with another potential 20,000 CR ($4 Bn) unexplored

12. Current Ecosystem – Small project System Integrators
Highly fragmented Market with several Drawbacks
ӧ Lack of Systems & Processes (Also not Technology enabled)
ӧ Unorganized& Poor communication with customers
ӧ Smaller teams who can’t scale quality (Single Person Shows/Family shops)
ӧ Unreliable and often not open to feedback
ӧ No options of AMC or systematic service
ӧ Lack of uniform pricing for services
ӧ No forum to validate quality of work
ӧSafety issues as much of the work is One-time only
Services in Scope - Check Appendix I
Electrical/Electronics(Home Security/Automation/AudioVideo/Central
Vacuuming)/Elevators/AlternatePower/CentralizedAC)
GeographicalScope- Especiallyfocussing on the BurgeoningTier 2 Market &
LeveragingSmart Cities Initiativeby GOI

13. Possible benefits for a Single Pan-India STC
Handling small ticket-bigger volumes needs a totally different
model, which hasn’t been developed yet.
---------------------------------------------------
Ѻ Cross movement to all related areas without much capital investment
(appendix I)
• UPS/Automation/Central Vacuuming/Security/AudioVideo
Ѻ AMC Goldmine (appendix II)
Ѻ First Mover Advantage- Tier 2 cities are hugely underserved.
Ѻ India is a hardcore ‘Anti DIY’ Market (appendix III)
Ѻ Bulk Small orders (Gated communities/LargeVilla projects etc)

14. Where will investments be needed? (Further explained in Appendix IV)
₹ Building Quality+ Service team
• Uniform Quality & Service delivery Model
• Training Centre of excellence for employees
₹ C-SAT framework and implementation (using Tools/Apps)
• Ensuring consistently high CSAT with framework/monitoring for delivery
₹ Building common web interface/App to link to Physical locations
• Leadgen CRM
• ERP procurement & finance
₹ Marketing efforts (Events & Promotions)
• Shows like Acetech, What Hi-Fi. Local media promotions, and customer loyalty programss
Overall Investment of INR 10-14 Cr ($1.4-2M) Potential Revenues in 3 years – Rs 300-
400 CR across 50 branches with ~8-10%
PAT

15. Investment Proposal for Phase II
95000
30000
12000 120013200
TAM (in INR CR)
India Market Size South India
Big 4 (BLR/HYD/CHN/KOC) Target 10% Market Share
Approaching PE/VC firms with a firm
eye on rapid expansion
Investmentof $500k @ 10% Equity
Holding
Potential revenues of Rs 1200 CR in 3-
4 years, with 8-12% PAT
Potential 10-12X Exit by 2021
Seat on the Board,to drive strategic
direction of the company

16. APPENDICES
I. Potential Product Segments
II. AMC Goldmine
III. Anti DIY Culture in India
IV. Investmentsneeded
I. Quality + Service Delivery Model
II. Marketing efforts
III. Perfecting Delivery + CSAT

17. Ѻ Security & Access: Commercial CCTVs, Boom Barriers, premises access
control, video surveillance, Fire, heat, water, and/or entry alarms, Remote status
alerts and management, Attendance systems,
Ѻ Telephony & Networking: EPABX, Networking, Audio & Video Conferencing,
VOIP
Ѻ BMS: Energy management of HVAC systems (heating, ventilation and air
conditioning), control lighting, and power-on and -off and designated equipment
Ѻ Commercial A/V: Speaker systems, Projectors, AV for Auditoriums, offices and
other commercial
I. Potential Segments to Cross Sell

18. Ѻ Most Homeowners prefer peace of mind, regarding safety of expensive
appliances/electronics and wouldn’t mind spending 1-2% annually on AMC plans
Ѻ Outside product warranty, no OEM or product company offers any safety net for
appliances post warranty period
Ѻ Frequent power outages, spikes in voltage make Indian homes unsafe for High
end precision devices
Ѻ With Minimal annual fees, AMC is a huge profit stream if done on a Pan India
scale
II. AMC Goldmine

19. Ѻ Unlike developed markets like the US and Western Europe (Do-It-Yourself), the
Indian market, with its abundance of cheap blue collar labour and erstwhile
stigma associated with manual tasks, will continue will rely heavily on
Middlemen/Integrators/Agencies for Construction/Interiors/Commissioning
activities in the home.
Ѻ Rising disposable incomes (especially in Urban India) along with fast paced
lifestyles ensure People prefer outsourcing installation and maintenance tasks
to a specialized third party.
III. Anti- DIY Culture

20. I. Training COE
Ѻ 6 Hub Based COEs across India (50L each)- 3CR
Ѻ Setting up Training Team & Modules (90 L Yearly)-90L
IV. Investments Needed
Goals/Deliverables
 Full Fledged practical demo setups
with Items and test scenarios,
enabling virtual job simulation and
testing
 Fully trained team involved in
developing latest pedagogy and
content
 Training COEs to be established in 6
hubs across the country, staffed by
specialized team

21. II. Service DeliveryModel & Quality
Ѻ Centralized tracking & Monitoring system (75L Onetime)
₼ Monitoring Team (25L Yearly) – 25L
Ѻ Quality + Audit Team (50L yearly)- 50L
IV. Investments Needed
Goals/Deliverables
 Creating uniform service delivery
model and central tracking of all
projects on single platform
 SOPs and Workflows for all
customer interactions through
project lifecycle
 Create execution framework and
governance model to manage
efficient staffing/training/execution
of operations personnel

22. III. CSAT & Post Sales service
Ѻ Centralized After sales & AMC tracking system (75L)
Ѻ Service Back Up items for Immediate replacements-
20L stocks per hub- 60L
-------------------------------------------------
Ѻ Customer Loyalty programmes and events (40L
Annually)- 40L
Ѻ Referral Bonuses (25L)- 25L
IV. Investments Needed
Goals/Deliverables
 Establishingrobust referraland
customer loyalty by (in additionto
excellent service) institutingreferral
bonuses, networkingamongexisting
base
 Build AMC model which ensures 100%
follow up of all customers for yearly
payment schemes
 Ensure adherence to TAT by havingkey
SKU backups and ensuring immediate
replacementof items till servicingis
completed

23. II. Marketing Efforts
Ѻ Print Media/Radio Marketing(10-15L)- Per City- 2CR
Ѻ Google/Social Media FB, Insta, Twitter engagement
(25L)
---------------------------------------
Ѻ What Hi-Fi (20-35L)- Titular sponsorship+ Event
marketing costs per City – 50L
Ѻ Acetech (40-50L)- Main Hall + Event costs per City
- 1 CR
IV. Investments Needed
Goals/Deliverables
 Establishingmarketpresence by
participatingin various shows and
events, both Indian and internationally
 Create top of mindbrand recallfor the
new brandfor all Integrationrelated
services in end customer minds
 Engageindustry influencers directly
(architects/electricians/contractors)
on partnership or commissionsmodel

24. Interested in this journey?
Contact us..
www.thasmai.net
https://www.facebook.com/ThasmaiBlr
https://www.quora.com/profile/Thasmai-
Automation-Pvt-Ltd-1
Primary Contacts:
Karigirish: 9972418578,
karigirish@thasmai.com
Vijay: 9880368001, vijay@thasmai.com
sales@thasmai.com
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