1.EbooksMarketinIndiaDecember 2012

2. ExecutiveSummary Ebookhasbeenaknownphenomenonintheglobalplatformforquitesomeyearsandisposting ahealthygrowthMarket EbooksmarketinIndiaisstillinitsnascentstagebutisslatedtoseegoodgrowthinthecoming 12years Ebookscanbecategorizedintox1,x2andx3 DriversChallengesDrivers& Growthineducation Increaseininternetusers DemographicalalterationsLE Negativeconsumerperspectiverelatedtocybersecurity&piracyP Highpricesofebookreaders Challenges Increaseofinternetenabledcomputing Majorityfocusonacademictext Mdevicesbooks SA Improvisedcontent Publisherssavecostsinthisformat Lackoftouchandfeelelement ApplicationapprovalfromApple Technologicaladdons Retailchainofferingebookreading Digitalrightsmanagement Trendsapplication Sportscategoryemergesasathrivingoption Drivetoconvertbooksintodigitalformats ForeigngiantsettingstoresinIndiaMajorPlayersCompetitionCompany1 Company2Company3 Company4 Company5Company6 EBOOKSMARKETININDIA2012.PPT2 3. IntroductionMarketOverviewBenefitsMarketHighlightsFormats&SoftwareDrivers&ChallengesGovernmentRegulationsTrendsMajorPlayersStrategicRecommendationAppendix EBOOKSMARKETININDIA2012.PPT 3 4. Thoughnascent,themarketisslatedtousherinapositivechangeinthecoming12yearsSAMPLEEbooks IndianMarketOverviewEbooks MarketSize&Growth TheIndianmarketforebookbuyersformsthesecondlargest ebooksmarketintheworldUnitsNob1%a6 Indiaisconsideredtobehavingahugepotentialowingtoaa5 burgeoningmiddleclassthatspeaksEnglishaidedwithan a4 increasingdisposableincome a3 Additionally,asIndianepublishersareproducingcontentfor a2 a1 Indianconsumers,globalepublishershavestarted outsourcingtheirepublishingservicestoIndianfirms Advantagesassociatedwithebooksintheformofeasy0 portability,multiplestorage,linkedinbrowserdevicesalong withaddedfeatureslikemagnifyingcapabilityhavebeen 20112012e 2013e 2014e 2015e2016e responsibleforitsrapidadoptionamongstyouthfraternity Note:ThismarketsizereferstothetextebookmarketEbooks GeographicSegmentation(2011)Ebooks MarketSegmentation(2011) b2b4 Segment1Segment3 Segment2Segment4Segment5b3b6 b5EBOOKSMARKETININDIA2012.PPT 4 5. PrintBookv/s Ebook SAMPLE RetailPriceper Royalty Paidtoretailer paymenttoOthers book authorPrintBook t1t2 t3t4 t9 Ebookt5t6 t7t8 t10 Undertheagencypricingmodel,retailersactasagentsandtake t11whileleavetheremainingt12tothepublisher Thecomparativeanalysisshowsthateventhoughretailpriceofebookscostlesserthantheirprintedcounterparts,thepaymentsmadetodifferentheadsarealsoless whichmakestheendrevenuesgeneratedbythepublisherismorethanthephysicalbooksNote:xxxxxxxxxx EBOOKSMARKETININDIA2012.PPT 5 6. Ebook GlobalSnapshots(1/2)TotalTrade RevenuesAdultBookTrade RevenuesEINRbnq1INRbn q2 p2 p4L p1 p3 MP02011YTD2012 SA 0 2011YTD2012 ChildrenBookTrade RevenuesReligiousBookTrade RevenuesINRbnINRbn q4p8q3 p6 p7 p50 02011YTD2012 2011YTD2012EBOOKSMARKETININDIA2012.PPT6 7. DigitalRevenues GlobalSnapshots(2/2) asapartofthetotalbookpublishingrevenuesearnedbymajorsPublisher yz EarningsPeriod y1 LE z1MPBookPublishing Revenuesy2SA z2Digitalas%ageof y3 y4 totalbooksalesEBOOKSMARKETININDIA2012.PPT 7 8. Drivers&Challenges SummaryDriversChallengesGrowthineducationNegativeconsumerperspective relatedtocybersecurity&piracyIncreaseininternetusers HighpricesofebookreadersDemographicalalterationsMajorityfocusonacademictextbooksIncreaseofinternetenabledcomputingdevicesLackoftouchandfeelelementImprovisedcontentPublisherssavecostsinthisformat EBOOKSMARKETININDIA2012.PPT8 9. EbookswillpenetrateproportionatelywiththeriseininternetpenetrationanditsusersIncreaseininternetusers Impact TheeverincreasingfigureofinternetusersinIndiaisconsideredtobeoneofthekeydriversforthismarket LE Internetistheprimarymeansofaccessingebookswhichissuretoderiveitsgrowthasthe Ppenetrationofthesamedeepens Asinternetpenetratesdeeperintodifferentstrataofthesociety,accessibilitytoebooksincreasesprofoundly AM ThisisspecifictoebooksthatarenotrestrictedtoanydeviceorsoftwareandcanbeaccessedSonlythroughanyapplicationorhardwaresupportingDRMcontentTotalInternetSubscribers IndiaNumberofBroadbandSubscribers India mnmne6 d10e7d8d4 d6 d9e5 d2d7d5e4d3 e3d1 e1 e2 0 02011 2012e2013e 2014e 2015e 2010 2011 2012e2013e 2014e 2015eRuralSubscribers UrbanSubscribersEBOOKSMARKETININDIA2012.PPT 9 10. ImpactofFDIcaponetailingfirms CategoryExample SAMPLE Impactf1 f2f3f4 f5f6f7 f8f9 f11 f12f10f13f14 f15EBOOKSMARKETININDIA2012.PPT 10 11. Trends SummaryApplicationapprovalfromAppleRetailchainofferingebookreadingapplicationDrivetoconvertbooksintodigitalformats` KeyTrends ForeigngiantsettingstoresinIndiaTechnologicaladdonsDigitalrightsmanagementSportscategoryemergesasathrivingoption EBOOKSMARKETININDIA2012.PPT 11 12. ApprovalfrommajorsopengatesfordevicemanufacturerstofeatureebooksontheirdevicesApplicationapprovalfromAppleSAMPLE ArecentdevelopmentinthissectoristhatofebookreaderconcernSonygettingAppleapprovalforaniOSReaderapplication ThismeansthatSonyReadercustomerscanreadtheirSonyebooksonaniPhone,iPad,iPodTouch ThoughSonyremainedabsentformtheappcirclecomparedtoKindleapp,Barnes&NobleNookapp,butitsrecentinclusionintheAppleAppStorebringscheertoitsreadersFeatures xxx SonyhaslaunchedReaderforyouriPhone, xxxiPadandiPod T TheSonyReaderiOSappispoweredbyxxx R EBluefire Readerwhichhasitsownappinthe NAppStorexxx D Thiswillenabletheconsumerstoevenread xxxbookontheiriPhones xxxEBOOKSMARKETININDIA2012.PPT 12 13. Private:ForeignCompany Company 1(1/3)CompanyInformationSAMPLEOfficesandCentres India NewDelhiCorporateAddressTelNo.WebsiteYearofIncorporationHeadOfficeProductsandServicesCategoryProducts/ServicesPublishingPrint&Digital KeyPeopleName DesignationNote:ThelistofproductsandservicesisnotexhaustiveEBOOKSMARKETININDIA2012.PPT13 14. Private:ForeignCompany Company 1(2/3)FinancialSnapshotKeyRatiosSAMPLEyoy change TotalIncomeNetProfit/LossParticulars2011 2010 20092008(201110) INRmnINRmn ProfitabilityRatios u v OperatingMargin N.A. N.A. N.A.7.25% 6.25% NetMargin N.A. N.A. N.A.6.81% 7.82% ProfitBeforeTaxMargin N.A. N.A. N.A.8.14% 4.43% ReturnonEquity 8.63 25.25% 33.88% 19.27% 28.40% ReturnonCapitalEmployed N.A. N.A. N.A.23.78%556.91% ReturnonWorkingCapital9.57 31.68% 41.25% 22.28% 30.59% ReturnonAssets 8.63 25.25% 33.88% 19.27% 28.40% 0 ReturnonFixedAssets278.38461.59% 739.97% 293.86% 397.26%CostRatios2008 2009 20102011 Operatingcosts(%ofSales) N.A. N.A. N.A.92.68% 106.37% Administrationcosts(%ofN.A. N.A. N.A.N.A. N.A. Sales)FinancialSummary Interestcosts(%ofSales)N.A. N.A. N.A.N.A. N.A. ThecompanyincurredanetprofitofINR mn inFY2011,as LiquidityRatioscomparedtonetprofitofINR mn inFY2010CurrentRatio 4.99% 2.11 2.011.46 1.89 CashRatio60.38%0.41 0.260.30 0.38 ThecompanydidnotearnanyoperatingmargininFY2011LeverageRatios ThecompanydidnotearnanydebttoequityratioinFY2011 DebttoEquityRatio N.A. N.A. N.A.N.A. N.A. DebttoCapitalRatioN.A. N.A. N.A.N.A. N.A. InterestCoverageRatioN.A. N.A. N.A.N.A. N.A.EfficiencyRatios FixedAssetTurnover N.A. N.A. N.A.42.74 49.85 AssetTurnover N.A. N.A. N.A.2.80 3.56 CurrentAssetTurnover N.A. N.A. N.A.1.03 1.81 WorkingCapitalTurnover N.A. N.A. N.A.3.24 3.84 CapitalEmployedTurnoverN.A. N.A. N.A.2.80 3.56 Improved Decline EBOOKSMARKETININDIA2012.PPT 14 15. Private:ForeignCompany Company 1(3/3)BusinessHighlightsDescriptionNews Isknownastheprovideroflearningsolutionstohighereducation,professional,library PLEreferenceandschoolmarketsintheIndiansubcontinentSAMOverview Thecompanyhas employeesandhasoperationsinmorethan countriesacrosstheglobe Z1isasuiteofdigitalproductsandservicesthatservestoenhancestudentengagement, improveslearningoutcomesandhelpsacademicinstitutionsnavigatethechanging educationlandscape Z2,z3andz4arethreecomponentsofz5thatincludefeatureslikeinteractiveetextbooks,Ebooks multimediaresourcesandotheronlinecoursesolutions Itsz6isanebookplatformthatprovidesaccesstothousandsofauthoritative reference worksfromGaleandmorethan70publishingpartners,researchers Galeisaleadingglobalproviderofdigitalandprintproductsolutionsthatsupporteducationandresearchinpublic,academicandK12librariesEBOOKSMARKETININDIA2012.PPT 15 16. Player2Device1CorporateInformationBusinessHighlightsHeadquarters u1worksoncomplextechnologychallengesanditdirectlydrivesitsbusinessonu2 LE Itprimarilybuildssoftwareandapplicationsthatsupportu3FoundedMPwebsitesacrosstheworldalongwithcoredevelopmentinthe SAdomainofpayments,transportation,searchanddigitalPresenceinproductsIndia HaslaunchedanewKindlestoreforIndianconsumersKeyPeoplewhereinu4istheexclusiveselleroftheu5ereader Itwillofferu6bookpurchasesinrupeesProductSpecifications NamePrice(INR) Connectivity Dimensions WebDisplayBatteryLife, OndeviceStorageWirelessOffEBOOKSMARKETININDIA2012.PPT16 17. ForeignTabletPCPlayers(1/5)CompanySnapshot:Device2CorporateInformation BusinessHighlightsHeadquarter Thefirstu7TabletPClaunchedinIndiawasu8 IthousesNvidia Tegra 2processorwhichishighlyregardedinrecentLEEmployeeAMP timesforitsmultimediacapabilityStrength u9hasincludedextrafeaturesonitstabincludinganereaderContactInformationRevenueS applicationforviewingebooksinKindleoranyotherAndroid ereaderappTabletOffering ProcessorNetworkUSB ProductOSDisplayWiFi GPS&RAM (3G)PortNote:Thelistisnotexhaustive EBOOKSMARKETININDIA2012.PPT 17 18. SmartphonePriceandSpecifications(1/3)Brand Apple HTC LAVA LGModelPrice(INR)OperatingSystem SAMPLEProcessor RAM 3G WiFi GPS EBOOKSMARKETININDIA2012.PPT 18 19. ThankyoufortheattentionTheEbooksMarket India2012reportisapartofNetscribes,Inc.sInformationTechnologyIndustrySeries.Formoredetailedinformationorcustomizedresearchrequirementspleasecontact:Phone: +913340646214EMail:sales@netscribes.comFollowuson:AboutNetscribes,Inc.Netscribes,Inc.isaknowledgeconsultingandsolutionsfirmwithclienteleacrosstheglobe.Thecompanysexpertisespansareasofinvestment&businessresearch,business&corporateintelligence,contentmanagementservices,andknowledgesoftwareservices.Atitscoreliesatruevaluepropositionthatdrawsuponavastknowledgebase.NetscribesInc.isaonestopshopdesignedtofulfilclientsprofitabilityandgrowthobjectives.Disclaimer:Thisreportispublishedforgeneralinformationonly.Althoughhighstandardshavebeenusedinthepreparation,Netscribes isnotresponsibleforanylossordamagearisingfromuseofthisdocument.ThisdocumentisthesolepropertyofNetscribesandpriorpermissionisrequiredforguidelinesonreproduction.EBOOKSMARKETININDIA2012.PPT 19