CREATIVE NEWTECH LIMITED — Regulatory Filings 2020

Aug 4, 2020

Date: 04th August, 2020

To, The Manager Listing Department National Securities Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Bandra (East) Mumbai- 400051

Sub: Launch of Digital Platform

Dear Sir,

We are pleased to enclose a copy of the announcement regarding the launch of the Company's new B2B digital e-commerce platform.

Kindly take the same on record.

Thanking you,

Yours Faithfully

For Creative Peripheral and Distribution Limited

Tejas Doshi Company Secretary & Compliance Officer ACS – 30828

Date: 4th August 2020 Place: Mumbai

Creative Peripherals and Distribution Limited

Commercial Launch of C-Kart – new innovative B2B Digital eCommerce Platform – a first for the Company

C-Kart to host new and existing customers – completely built in-house by expert team of experienced professionals

Platform will enhance not only existing synergies between customers and brands but create new ones, create new opportunities to cross- sell and expand Company's product portfolio, customers, geographies

Will transform Creative to being truly a 'One stop shop' for all customers' niche electronic needs'

Creative Peripherals will be hosting a video conference to showcase C-Kart on 5th August, 2020 – details to be shared soon

Creative Peripherals and Distribution Limited

Mumbai, 04th August 2020: Creative Peripherals and Distribution Limited (NSE: CREATIVE) market specialists for experiential products in IT, Imaging, Lifestyle, and Security domains with a pan-India presence, is pleased to announce the launch of its new innovative B2B digital eCommerce platform, 'C-Kart'.

C-Kart is a new significant opportunity for growth and has the potential to enable the Company to scale to newer heights. This new online platform will not only enhance the scalability and visibility of Creative Peripherals, but also boost profitability and client-outreach. As more and more services become online, there is a paradigm shift towards platform-based service offerings across industries.

An in-house dedicated team of young, motivated, professional, expert and dynamic workforce worked tirelessly to help develop, test and launch this platform swiftly in a very short span of time, despite the recent lockdown. Our team is a good mix of experienced personnel and young fresh talent who is committed to the operations and maintenance of this platform.

There are other online platforms in the market such as IndiaMart (Market Cap – Rs. 8,363.4 cr, P/E – 43.2) and Udaan (Unlisted funded by PE funds - Tencent, Altimeter Capital, Hillhouse Capital, GGV Capital, Footpath Ventures and Citi Ventures). However, Creative Peripherals' platform differentiates from any other offerings in the market, such that it is a unique B2B eCommerce solution capable of hosting a growing customer-base, as well as offer customers the option to have their own online eCommerce portal. The platform has been made using latest technologies with the capability to scale up as the business and online traffic grows, which sets this platform apart from other similar offerings. Unlike a subscription-based model, we will have a higher degree of control on the contents and activity hosted on the platform, giving us better leverage.

Creative Peripherals will be hosting a video conference to launch and showcase C-Kart on 5th August 2020. Details of this video conference will be shared shortly.

About C-Kart

The platform has been developed by Creative's in-house team with the help of some of the best consultants in the industry, and is integrated with the Company's existing ERP system. Therefore, the customer base (along with branch and inventory data) in the ERP is seamlessly synced with the digital platform. Once the system goes live, emailers and SMS messages will be sent to all our 5000+ customers.

Creative Peripherals and Distribution Limited

This is a B2B digital eCommerce platform that enables the Company's existing and new customers to view, interact and transact with other customers on the platform. It essentially provides a onestop-shop for all product and service requirements of Creative Peripherals' customers.

Each customer will receive a unique login ID and password upon registering on the platform. This will enable the customer to view products in the inventory of Creative Peripherals, as well as that of other customers registered on the platform. It will also let the customers showcase their own inventory, and buy and/or sell products amongst each other.

Creative Peripherals' customer-base can be segregated into sub-distributors, channel partners, retailers, LFR and online channels. This platform provides a common 'market place' for all such businesses to view products, interact and transact online. They can place orders and make payments based on their respective credit limits. Another key feature of the platform is that customers can directly search and retrieve details of their past orders, invoices, etc., from the platform, instead of having to request the data from the Company. This feature puts more power into the hands of the Company's customers to manage their transaction details on their own and plan their future purchases.

Key Differentiators

C-Kart is unique in many ways as this is for the first time that any distribution company is offering host of services and facilities to retailers, which helps them do business more efficiently, and would help them to create their own brand in the market.

• 1. Drop Shipment One of the salient features of C-Kart is drop-shipment facility. This allows a customer to place an order with the Company, and have it delivered at their respective customer's address. For instance, a sub-distributor on our platform may order goods (billed to them), but have them shipped directly to their respective retailer, thereby avoiding intermediate freight and storage. This not only cuts down costs for our customers, but also expedites the delivery of goods.
• 1. Multitude of Brands We already have over 20 brands in our portfolio. Customers on our platform can also showcase and transact products that are not under Creative Peripherals' exclusive distribution. For instance, a customer may have some products which are not distributed by Creative Peripherals, in their inventory. Such products would also be visible and transactable through our platform. This would enable customers to sell more of their products via our platform and thereby expand our product range and offerings across sectors, creating high growth opportunities

Creative Peripherals and Distribution Limited

• 1. One-Stop-Shop Our platform would act as an end-to-end one-stop-shop for our customers for all their requirements, right from viewing and trading to invoicing.
• 1. Customer site Each customer can choose to have their own unique white-label site through the platform.

Hosting such an e-platform would also give us more bargaining leverage with other participants in the value chain. C-Kart is a future-ready solution that will help the Company scale new heights as we grow in terms of brands, customers, revenue and profitability.

Management Comment:

Commenting on this development, Mr. Ketan Patel, Chairman & Managing Director of Creative Peripherals & Distribution Ltd. said:

"We are extremely proud to announce the launch of our new & innovative B2B digital eCommerce platform – C-Kart!

C-Kart is a bold leap forward for Creative Peripherals, in this dynamic, ever-changing industry. It will not only bring all our customers under a common roof, but also provide a fertile ground for increased business opportunities. Our 5,000+ customers would now be able to showcase their products, view other products, and transact easily with the Company as well as amongst each other. Many other unique features make our B2B platform stand apart from other similar platforms in the market.

In keeping up with the changing trends in the distribution industry, we expect this online platform to provide a significant boost to our visibility as well as profitability in the future. We have a strong and dedicated team in place for this undertaking, which has managed to deliver on such time scales despite the recent lockdown. The platform is expected to significantly boost our customer-base with minimal need for increase in manpower, thereby improving profitability.

We already have a bouquet of over 20 brands. With more and more global brands wishing to come to India, seeing the high-growth potential of this market, we stand at a good vantage point to be the go-to specialist for new brands. The platform would make us more attractive for prospective new brands wishing to enter the market.

We, at Creative Peripherals, see this as a substantial growth opportunity, beneficial for all participants. The development marks a milestone in our growth story; we are excited to see it fructify in the future and help us achieve newer heights. I would like to thank all our employees and stakeholders for their continued support in our growth."

Creative Peripherals and Distribution Limited

Company Overview

Established in 1992, Creative Peripherals and Distribution Limited is a well-established company in India's Information and Communication Technology distribution market. Through a robust network of partners and distribution channels, the Company has made a strong foothold in the IT distribution market in the country. The Company has an omni-channel network across all three channels of online, offline and retail trade.

Creative Peripherals specializes in market entry and penetration for global brands. The Company offers demographic intelligence, and enables the formulation and execution of marketing strategies for its clients. In addition to such services, Creative continues to focus on timely delivery, diversification of its product portfolio, sustained long-term relationships with its channel partners, and extending value-added services over and above distribution.

These efforts have enabled the Company to win long running contracts as well as garner accolades in the Industry as amongst the best distributors in India by leading brands. Creative Peripherals is associated with over 20 renowned brands globally. These brands encompass a wide range of applications and help the Company to cater to a broad array of customers, both in the consumer and industrial businesses. Moreover, the Company is well-positioned to leverage the changing trends in the technology industry and be a part of the paradigm shift towards digitization in India.

Creative Peripherals has a unique value-added business model. They provide end-to-end solutions, from market research and competition analysis for brands, to import, distribution, sales and servicing for the brand. Additionally, the Company suggests and executes marketing strategies and recommends viability in specific regions across India for their clients. This is enabled by specialized skill sets, local insights and experience, along with relevant market intelligence. Creative Peripherals also prepares strategic plans for market entry for foreign brands and their target category.

Furthermore, the Company conducts pre-sales and marketing activities for the success of the brand as well as to enable the channel partners to leverage their expertise and bottom line. Creative Peripherals works closely with partners across channels including Large Format Retail (LFR), e-commerce and specialized retailers. The Company is one of the few large distributors who conduct specialized training modules, events and promotional activities at the ground level with channel partners. They also conduct workshops and demos for resellers. This is possible due to the dedication and experience of the corporate and sales teams which constantly track latest market developments to build a closer market connect.

Creative Peripherals and Distribution Limited

The Company's wide reach and superior logistics capabilities helps it provide end-to-end services including warranty and post-warranty, high-level repair services, and response centres, among others. Such expertise and superior quality of service has led to increased confidence of brands, many of which have chosen Creative Peripherals as exclusive partners and have been with the Company since over five years. The Company focuses on higher operational efficiencies and adding higher-margin and value-added products to its existing product portfolio and such brand associations are a concrete step in that direction.

For more details please visit: www.ecreativeindia.com

For further information please contact:

CompanyContact:	Investor Relations:
Abhijit Kanvinde	Bridge Investor Relations Pvt. Ltd.
Chief Financial Officer	Rahul Trivedi / Anviksha Konnure
Creative Peripherals and Distribution Limited	E-mail:rahul@bridge-ir.com/
E-mail: abhijit@ecreativeindia.com	anviksha@bridge-ir.com

Note: Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward-looking statements. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other risk factors, viewers are cautioned not to place undue reliance on these forward-looking statements. The Company will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forwardlooking statements to reflect subsequent events or circumstances.

Creative Peripherals and Distribution Limited