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CREATIVE NEWTECH LIMITED — Regulatory Filings 2021
Nov 12, 2021
62737_rns_2021-11-12_61e4133e-e89f-4df0-9425-c1aaac1000ff.pdf
Regulatory Filings
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Result Update Presentation Q2 & H1 FY22
Creative Newtech Limited
(Formerly known as Creative Peripherals and Distribution Limited)

This presentation has been prepared by Creative Newtech Limited (the "Company"), formerly known as Creative Peripherals & Distribution Ltd., solely for information purposes and does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment what so ever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.
Certain matters discussed in this Presentation may contain statements regarding the Company's market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company's ability to successfully implement its strategy, the Company's future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company's market preferences and its exposure to market risks, as well as other risks. The Company's actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.






Creative Newtech Limited

Company Overview
Business is an Idea not an Opportunity


Founder & CMD Mr. Ketan Patel Mrs. Purvi Patel
A technologist with a humble background and an experience 30+ of years. With capital not an option, he had to choose a long gestation period for success. He firmly believes that in the technology business, operating leverage is substantial but always back ended.

Co-Founder & Whole
A woman with exceptional foresight, Purvi Patel manages Logistics, HR, Marketing, Operations and Administrative functions to enable smooth functioning of the business.

Mr. Vijay Advani Whole Time Director
Time Director Mr. Advani is a seasoned Professional with 30+ years of experience since 1998 in Product, Sales & Operations. He looks after the complete sales of the organisation and all major B2B relationships with an ease and competence like no other.

Mr. Mohit Anand
Co-Founder & CEO - Secure Connection
As the CEO of Secure Connection, he is responsible for all facets of the business including, Sales, Marketing, Finance & Operations. He is currently building and scaling out Honeywell licensing business in over 29 countries.
Key Management Team


Abhijit Kanvinde Chief Financial Officer
Chartered Accountant with over 25 years of strong and multi-industry experience. Worked in companies like Garnier India, Novartis Consumer Health, Shringar Cinemas, etc. He was the CFO of a listed company for over 8 years, also successfully completed two IPOs in his career.

Upendra Singh National Sales Head
Bachelor of Commerce from Ranchi University, with nearly 30 years experience in Sales & Marketing. His expertise lies in vendor management, sales generation & market penetration. He has been in the IT hardware industry for over 11 years and he drives the national channel & corporate sales.

Amol Patil Group Business Manager
MBA in Marketing with Engineering in Electronics and Telecom, with over 20 years of experience in IT industry. Mr. Patil's prowess lies in identifying latest market opportunities. With his excellent team management and execution skills, he is responsible for profitable management of products portfolio
Creative Newtech Limited


Who we are

Brand Licensing
(like Jubilant food – Dominos Pizza & Page Industries – Jockey Comfort wear)
- ➢ Licensed by Honeywell for contract manufacturing of various consumer & enterprise products.
- ➢ Rights on many product designs/casts, can manufacture and sell Honeywell branded products in many APAC countries, as well as govern product pricing to a large extent.
- ➢ Expanding Honeywell business line, and aiming to get more international brands under the licensing model.
- ➢ Maintaining an asset-light model while expanding the licensed manufacturing business.
FMSG + FMCT + FMEG + EB
- ➢ Specialist for end to end solutions of FMSG for global brands in India.
- ➢ Well-positioned and monopolistically positioned for the fast growing, aspirational young population in a country like India with established network & market reach.
- ➢ Portfolio of 20+ world renowned brands including Cooler Master, Viewsonic, Samsung, Babyliss, Hyperice, Insta 360.
- ➢ Most brands are market leaders in their categories and command niche value in market.
- ➢ Continually enhancing portfolio with high-margin, high growth-potential products.
- ➢ Multi-channel network online, retail and general trade channels.
Ckart
- ➢ Online digital B2B eCommerce platform
- ➢ Hosts all customers and enables them to discover, share and transact in each other's products.
- ➢ Captive market place for subscribed business partners.
- ➢ Value-added features include drop shipment, invoicing, smart price list, seller module, customized marketing collateral and facilitates customers to have their own ecommerce site.
- ➢ Expands the Company's product domain.
- ➢ Boosts customer-base without additional manpower
- ➢ With growing digitization in industry, Ckart paves the way for a future-ready business model.
Creative Newtech Limited

Business Overview
Driving Social Media Transformation through Digital Offerings



11

Key drivers of growth:
- The trend to capture every moment of social life and post live events on social media along with live streaming has led to a multifold growth in personal-use, Internet connected devices.
- Every millennial tends to follow multiple hobbies and practise at least 1 or 2 of them regularly; this has led to a tremendous growth in trekking, wildlife photography/tours, sports, cooking, music etc. and this has made this segment one of the fastest growing segments across globe.
- The consistent increase in sedentary work and increased health and beauty consciousness has led to an exponential increase in demand for home recovery equipment (HYPERICE), home grooming products (BABYLISS) and Gaming accessories (Cooler Master).
- The increasing trend for gaming products has led to an even greater increase in demand for cooling products and, high performance computer components and processing gadgets like virtual reality, live streaming and video streaming, computers, and other gaming devices. Cooler Master's growth is a derivative of growth in gaming devices.

Global Grooming Industry
- The global beauty and personal care market was valued at about \$422.72 bn in 2020 and is forecasted to grow at a CAGR of 4.82% to reach \$558.12 bn by 2026.
- Rise in aging population, per capita income and growing awareness of grooming products especially among urban masses (more so by Internet penetration), are some of the factors driving growth in this sector.
- APAC is the leading market in this industry, followed by North America and Europe.
Global Fitness Equipment
- The Fitness equipment industry has been growing substantially worldwide in recent years. Driven by stress and sedentary lifestyle among the urban masses coupled with rising awareness regarding fitness, as well as easy availability of such products, the demand for massage equipment is rising.
- The Global Fitness Equipment Market size was estimated at USD 10.31 Billion in 2020 and expected to reach USD 10.97 Billion in 2021, at a Compound Annual Growth Rate (CAGR) 6.74% to reach USD 15.25 Billion by 2026.
Global Gaming Industry
-The global gaming sector has been booming over the past few years. Fueled by increasing trends for online/digital gaming, urbanization and faster network infrastructure along with penetration of smartphones, the market is witnessing a rapid addition of gamers.
-As per a report by Accenture, the global gaming industry presently exceeds \$300 bn, especially boosted by the recent lockdowns, which expedited this trend. -The sector has grown by half a billion players in the last 3 years, leading to a total of 2.7 billion people. By 2023 over 400 million new gamers are likely to join. -Online gaming alone is anticipated to grow at a CAGR of 11.9% between 2020-26.
Sources: https://www.businesswire.com/news/home/20210622005830/en/Global-Beauty-and-Personal-Care-Market-Report-2021-2026---ResearchAndMarkets.com https://www.globenewswire.com/en/news-release/2021/08/04/2274353/28124/en/Global-Fitness-Equipment-Market-Research-Report-2020-to-2026-by-Product-Distribution-and-Region.html https://newsroom.accenture.com/news/global-gaming-industry-value-now-exceeds-300-billion-new-accenture-report-finds.htm;
FMSG





FMSG - Imaging

Insta 360 Zeiss



FMSG - Lifestyle



Disney Marvel

End to End Solution provider- Honeywell

Safety and Productivity Solutions

53% of sales outside U.S.
- ~1,300 sites, ~70 countries
- More than 129,000 employees
- Morris Plains, N.J. headquarters
- Fortune 100
- NYSE: HON


Honeywell developed the first autopilot flight controller (1914), first commercial weather radar system (1954), first business jet turbofan engine (1975), and is still the leader in developing revolutionary technology for aerospace today
Honeywell is the leader in gas detection, fire systems, personal protective equipment, building controls, home comfort and security and scanning and mobility


Honeywell began the SmartHouse project to combine heating, cooling, security, lighting, and appliances into one easily controlled system. They continued the trend in 1987 by releasing new security systems, and fire and radon detectors.
Honeywell's technology is used to produce 40% of the world's liquefied natural gas, 60% of the world's gasoline, 70% of the world's polyester, and 90% of the world's biodegradable detergents


\$11.5 Billion \$5.2 Billion \$9.4 Billion \$6.5 Billion
Building Technologies

Performance Materials and Technologies


- Honeywell is a global leader across business verticals and geographies.
- Honeywell has a very successful and robust trademark licensing business that generates US\$ 350 Million annually.
- Our exclusive trademark license from Honeywell covers 29 countries spanning South East Asia, South Asia and Middle East Asia (set to expand to more countries in Africa within next 90 days).
- We currently offer a vast suite of products spanning consumer to enterprise segments from enhancement products for laptops, smartphones & TVs, to Audio products to Air Purifiers to enterprise class infrastructure through our Structured cabling systems offerings.
- The entire product life cycle from industrial design (IP ownership) and concept to obsolescence is owned and managed by us.
- We have adopted Fabless manufacturing across 24 facilities PAN Asia for Honeywell product line. All these factories are approved and audited through Honeywell stringent audit and compliance requirements.

- The global Audio Equipment market is expected to grow from \$24.59 billion in 2020 to \$28.54 billion in 2021 at a compounded annual growth rate (CAGR) of 16.1%. The growth is expected mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges.
- The global Air Purifier market size was valued at USD 10.67 billion in 2020 and is expected to expand at a compounded annual growth rate (CAGR) of 10.0% from 2021 to 2028. The market is expected to be driven by rising airborne diseases and increasing pollution levels in urban areas. Moreover, growing health consciousness, improving standards of living, and rising disposable income are expected to fuel the market growth. One of the estimate is that the global air purifier market size is expected to reach USD 22.80 billion by 2028 and is expected to expand at a CAGR of 10.0% from 2021 to 2028.
Data Source:
https://www.grandviewresearch.com/industry-analysis/air-purifier-market
Honeywell - Exclusive rights to sell across 29 countries


Honeywell - Tough Entry Barrier & Hyper Growth ahead

- The biggest entry barrier to breakthrough in Honeywell is the long-drawn compliance process and product approval including certifications.
- The process of getting approval for each product is time consuming and expensive.
- We have spent last 4-5 years in getting the approvals for the products and now we are ready to launch several new products in coming months.

Honeywell – Air Purifier


FMSG: Honeywell - Audio


FMSG: Honeywell – Wireless Earbuds






FMSG: Honeywell






Ckart is Creative's own online digital B2B eCommerce platform
Salient Features Key Benefits

- Ckart hosts all existing and new customers and is integrated with the company's ERP system.
- Platform enables customers to discover, share and transact their products amongst each other.
- Value added services include drop-shipment, invoicing capabilities and a seller module.
- Customers can also choose to have their own micro-site hosted.
- Developed in-house by our dynamic and dedicated team.
-
Swift navigation and flow, and offers userfriendly experience.
-
Ckart is a holistic platform for all customers' requirements.
- It will grow customer-base without additional manpower or cost.
- Platform will increase ease of doing business and enhance our customer experience
- Expected to expand product domain and enhance working capital cycle.
Alliances – Exclusive tie up with BPL, Disney Marvel & Kelvinator

- We have entered into an exclusive tie up with RIL to sell FMEG (BPL & Kelvinator) and FMSG (Disney Marvel).
- Under the contract we can sell & market above products PAN India except for Reliance retail stores, Amazon & Flipkart.
- RIL will deploy its manpower to create the channel CNL will be master seller and will manage the whole supply chain.

- The global ceiling fan market size reached a value of almost USD 9.3 billion in the year 2020. The ceiling fan industry is further expected to grow at a CAGR of 3% between 2021 and 2026 and to reach a value of almost USD 11.1 billion by 2026. India is a tropical country, making fans a necessity. Thus, the fan industry in India is well-established and has shown a significant growth over the years, The Indian fan market is estimated to grow at a CAGR of 11.5%.
- According to estimates, the Indian Lighting Industry witnessed a growth in the total consumption of lighting fixtures from USD 2,886 million in 2018 to USD 3,146 million in 2019 (from 19.7 to 22.1 million Crores). The Indian LED Lighting Market is projected to grow at a CAGR of 7.1% during 2019-2023.
Source:https://www.businesswire.com/news/home/20190726005144/en/Analysis-of-the-Indian-Fans-Market---Forecast-to-FY2026---ResearchAndMarkets.com https://www.globenewswire.com/news-release/2020/11/17/2128172/0/en/The-Lighting-Fixtures-Market-in-India-2014-2019-2020-2023-LED-Lighting-Market-Projected-to-Grow-at-a-CAGR-of-7-1.html

Chairman's Message & Key Developments
Management Comment


Commenting on the Company performance, Mr. Ketan Patel, Chairman & Managing Director of Creative Newtech said:
"The second quarter of this financial year witnessed significant recovery from the lockdown in the first quarter. Infact, after June being one of our highest ever monthly sales, we registered strong sales July onwards as well. In the quarter ended September 2021, we reported a 110.76% YoY growth in revenue at Rs. 241.21 cr, with EBITDA and net profit growing 111.16% and 181.46% YoY to Rs. 8.67 cr and Rs. 5.80 cr, respectively. While this is mainly since the second quarter of last year was severely impacted by the nationwide lockdown, growth was also supported by strong demand for brands like Samsung, Cooler Master and Honeywell.
Going into the third quarter, markets are opening up substantially and demand has been picking momentum. We continue to refresh our brand portfolio with new and high-potential products. One of the recent additions in our portfolio is Hyperice Inc., a US-based specialist in muscle recovery and massage products. These associations are in line with our strategy to continually update and diversify our product portfolio to keep it relevant to the ongoing times and trends. Synergies from our Honeywell portfolio are also beginning to show and we foresee and strong upswing in this in the coming quarters. These developments, coupled with our progress in Ckart, gives an optimistic view for the next quarter. While the consumer sentiment is still cautious as there is speculation of a third wave of the pandemic, the overall market scenario is improving. The Company is well positioned to cater to the domestic as well as international markets while keeping a lean and efficient business model, thereby ensuring long-term, sustainable growth for all stakeholders. I would like to thank the entire team for their dedication and for coming together during such uncertain times."

➢ Fund Raise Activity: In July 2021, Creative undertook a preferential allotment of equity shares and warrants to raise Rs. 11 cr to fund future growth plans. Company issued 4,00,000 equity shares and 6,00,000 fully convertible warrants at Rs. 110 each. The shares and warrants were allotted to Abhinav Capital Services Ltd and Shree Sumna Trade LLP.
➢ Recent Brand Agreements:
- Signed agreement with Hyperice Inc. to distribute massage & muscle recovery products
- Tied up with Colorful Technology to distribute SSDs
- Signed distribution agreement with MSi to supply mini-PCs and desktop range
- Signed agreement with Edelkrone to distribute range of videography and photography accessories
- Signed agreement with ZEISS to distribute range of nature observation products like binoculars & monoculars
- ➢ Tied up with Reliance Retail to distribute range of Disney and Marvel branded products in home appliances and audio product segments. Recently added bulbs, lights, fans and home appliances from BPL to this portfolio
- ➢ Honeywell:
- Signed licensing agreement for Honeywell air purifiers across 10 countries worldwide
- Expanded Honeywell distribution agreement to include 29 countries across APAC & Middle East
- Added range audio products to Honeywell product portfolio
- ➢ Company temporarily shut operations as per Government directives, due to outbreak of Covid-19 pandemic during March-April 2020. Partial operations resumed from April 2020 after due approvals from authorities
Creative Newtech Limited

Financial Highlights
Key Quarterly Financial Highlights – Standalone & Consolidated

| Standalone | Consolidated | |||||
|---|---|---|---|---|---|---|
| Rs. Cr | Q2 FY22 | Q2 FY21 | YoY% | Q2 FY22 | Q2 FY21 | YoY% |
| Revenue from Operations | 237.57 | 112.30 | 238.56 | 113.79 | ||
| Other Income | 2.65 | 0.66 | 2.65 | 0.66 | ||
| Total Income | 240.22 | 112.96 | 112.66% | 241.21 | 114.45 | 110.76% |
| Raw material | 225.01 | 102.83 | 222.37 | 102.75 | ||
| Employee Cost | 2.62 | 1.77 | 2.62 | 1.77 | ||
| Operating Expenses | 5.87 | 3.89 | 7.56 | 5.82 | ||
| Total Expenditure | 233.50 | 108.49 | 232.54 | 110.34 | ||
| EBITDA | 6.72 | 4.48 | 50.07% | 8.67 | 4.11 | 111.16% |
| EBITDA Margin (%) | 2.80% | 3.96% | (116 bps) | 3.59% | 3.59% | 0 bps |
| Interest | 1.19 | 0.97 | 1.21 | 0.97 | ||
| Depreciation | 0.35 | 0.27 | 0.35 | 0.27 | ||
| Exceptional Items | 0.00 | 0.00 | ||||
| Profit Before Tax | 5.17 | 3.24 | 7.11 | 2.86 | ||
| Tax | 1.27 | 0.80 | 1.27 | 0.80 | ||
| PAT | 3.90 | 2.44 | 60.15% | 5.84 | 2.06 | 183.51% |
| Other Comprehensive Income |
(0.04) | 0.00 | (0.04) | 0.00 | ||
| Net Profit | 3.86 | 2.44 | 58.42% | 5.80 | 2.06 | 181.46% |
| Net Profit Margin (%) | 1.61% | 2.16% | (55 bps) | 2.40% | 1.80% | 60 bps |
| Basic EPS in Rs. |
3.29 | 2.08 | 58.17% | 4.24 | 1.77 | 139.55% |
• July 2021 has been one of the highest monthly sales
- Continued recovery from COVID lockdown supported by demand for brands like Samsung, Cooler Master & Honeywell
- Change in product mix & higher employee expenses impacted margin growth
Half Yearly Financial Highlights – Standalone & Consolidated

| Standalone | Consolidated | |||||
|---|---|---|---|---|---|---|
| Rs. Cr | H1 FY22 | H1 FY21 | YoY% | H1 FY22 | H1 FY21 | YoY% |
| Revenue from Operations | 369.33 | 175.60 | 372.45 | 178.24 | ||
| Other Income | 4.64 | 0.74 | 4.64 | 0.74 | ||
| Total Income | 373.97 | 176.34 | 112.08% | 377.09 | 178.98 | 110.69% |
| Raw material | 344.70 | 159.52 | 344.19 | 160.45 | ||
| Employee Cost | 5.55 | 3.40 | 5.55 | 3.40 | ||
| Operating Expenses | 11.11 | 7.10 | 14.57 | 9.13 | ||
| Total Expenditure | 361.36 | 170.03 | 364.31 | 172.98 | ||
| EBITDA | 12.61 | 6.31 | 99.83% | 12.78 | 6.00 | 112.98% |
| EBITDA Margin (%) | 3.37% | 3.58% | (21 bps) | 3.39% | 3.35% | 4 bps |
| Interest | 2.52 | 1.89 | 2.55 | 1.90 | ||
| Depreciation | 0.65 | 0.47 | 0.65 | 0.47 | ||
| Exceptional Items | 0.18 | 0.18 | 0.00 | |||
| Profit Before Tax | 9.26 | 3.95 | 9.41 | 3.63 | ||
| Tax | 2.34 | 1.00 | 2.34 | 1.00 | ||
| PAT | 6.92 | 2.96 | 134.18% | 7.07 | 2.64 | 168.22% |
| Other Comprehensive Income |
(0.04) | 0.00 | (0.04) | 0.00 | ||
| Net Profit | 6.88 | 2.96 | 132.75% | 7.03 | 2.64 | 166.62% |
| Net Profit Margin (%) | 1.84% | 1.68% | 16 bps | 1.86% | 1.47% | 39 bps |
| Basic EPS in Rs. |
5.87 | 2.52 | 132.94% | 5.66 | 2.21 | 156.11% |
• Strong recovery from COVID lockdown supported by demand for brands like Samsung, Cooler Master & Honeywell
• Higher revenues and synergy from subsidiary helped maintain margins despite higher operational expenses

| Rs. Cr | FY21 | FY20 | YoY% | FY21 (Consol.) |
|---|---|---|---|---|
| Income from Operations | 509.30 | 451.17 | 520.15 | |
| Other Operating Income | 6.17 | 1.31 | 6.17 | |
| Total Income from Operations | 515.47 | 452.48 | 13.92% | 526.32 |
| Raw material | 467.52 | 401.61 | 475.01 | |
| Employee Cost | 8.60 | 8.99 | 8.60 | |
| Operating Cost | 19.30 | 23.83 | 23.98 | |
| Total Expenditure | 495.42 | 434.43 | 507.59 | |
| EBITDA | 20.06 | 18.06 | 11.08% | 18.73 |
| EBITDA Margin% | 3.89% | 3.99% | (10 bps) | 3.56% |
| Interest | 4.65 | 4.76 | 4.69 | |
| Depreciation | 1.02 | 0.86 | 1.02 | |
| Profit Before Tax | 14.39 | 12.43 | 13.02 | |
| Tax | 3.64 | 3.39 | 3.64 | |
| PAT | 10.75 | 9.04 | 18.86% | 9.38 |
| Other Comprehensive Income | 0.03 | (0.02) | 0.03 | |
| Net Profit | 10.78 | 9.03 | 19.41% | 9.41 |
| Net Profit Margin (%) | 2.09% | 2.00% | 9 bps | 1.79% |
| Basic EPS in Rs. |
9.29 | 7.78 | 19.41% | 8.26 |

| Rs. Cr | As on 30th Sept 2021 |
As on 31st March 2021 |
|---|---|---|
| Equity | 75.88 | 61.68 |
| Equity Share capital | 12.00 | 11.60 |
| Other Equity | 60.75 | 47.04 |
| Minority Interest | 3.13 | 3.04 |
| Share Application Money Pending Allotment |
0.00 | 0.00 |
| Non-current liabilities | 4.31 | 4.22 |
| Long term borrowings | 3.38 | 3.43 |
| Other Long term liabilities | 0.00 | 0.00 |
| Other Long term provisions | 0.93 | 0.79 |
| Current liabilities | 123.49 | 125.87 |
| Short Term Borrowings | 36.11 | 39.50 |
| Trade Payables | 42.23 | 38.32 |
| Other Financial liabilities | 32.13 | 29.56 |
| Other Current liabilities | 10.88 | 16.98 |
| Short-term provisions | 0.14 | 0.14 |
| Current Tax liabilities (Net) | 2.01 | 1.36 |
| Total Equities & Liabilities | 203.69 | 191.78 |
| Rs. Cr | As on 30th Sept 2021 |
As on 31st March 2021 |
|---|---|---|
| Non-current assets | 10.31 | 10.16 |
| Property, Plant and Equipment | 9.97 | 9.85 |
| Intangible Assets | 0.21 | 0.22 |
| Non-current Investments | 0.00 | 0.00 |
| Net Deferred Tax Asset | 0.13 | 0.09 |
| Long-term loans & advances | 0.00 | 0.00 |
| Other non-current assets | 0.00 | 0.00 |
| Current assets | 193.37 | 181.61 |
| Inventories | 50.37 | 59.79 |
| Trade receivables | 66.11 | 55.95 |
| Cash & Cash equivalents | 2.69 | 2.25 |
| Bank Balances other than above | 4.02 | 3.99 |
| Other Financial assets | 0.04 | 0.04 |
| Other Current Assets | 70.15 | 59.59 |
| Total Assets | 203.69 | 191.78 |
Consolidated Key Return Ratios


Business in Charts





Revenue in charts – Shift to High growth business



Q1 FY22
H1 FY22

Annual Consolidated Financial Highlights


EBITDA (Rs. Cr)

PAT (Rs. Cr)


Creative Newtech Limited


Future-ready business growth

Brand Licensing in New markets
Bringing cutting-edge Technologies through highmargin brands
Digitizing business for optimal profitability
Brand Licensing & Geographical Expansion
02 Diversifying product portfolio across new high-02
potential verticals
03 Ckart to boost profitability & working capital
- 01 Growing brand licensing line of business with long-standing association with Honeywell with extensive product portfolio
- Expanding geographically in new countries across Middle East & APAC with required approvals & certifications in place
- Bringing diverse product ranges across various consumer verticals such as gaming & lifestyle, to stay ahead of trends
- Focus on fast moving high-margin brands such as Cooler Master, Hyperice etc.
- Utilize & expand omni-channel network to capitalize on maximum reach across India
- Tie-up with Reliance to offer home appliances across India from brands such as BPL
- Online B2B eCommerce platform to help expand customer-base substantially without additional manpower
- Seller module making the platform a virtually open marketplace for all supply chain partners
- With addition of new channel partners on the platform, working capital cycle to improve

Annexure
Secure Connection - Honeywell


Journey so far

| ▪ Started as trading concern with 2 employees ▪ Epson Dot-matrix Printer aggregator 1990s |
▪ 2012 - Foray into Imaging business by signing Olympus ▪ 2013 - Exclusive Photo Distribution from Vitec Group of Italy for Manfrotto ▪ 2013 - Exclusive distribution for 5 new global IT vendors ▪ 2015 - Reliance Digital 'Best Fulfillment Partner' ▪ 2015 - Exclusive distribution for 8 new global brands including ViewSonic & Samsung 2000-10 2012-15 |
▪ Listed on NSE – SME stock exchange ▪ Forayed into gaming products under lifestyle segment ▪ Agreement with TPV Technology India for Philips Digital Signage ▪ Expanded Honeywell licensing agreement to Middle East & added new products ▪ Entered Retail Security segment through Exclusive Agreement with InVue 2016 2017-18 |
▪ Launched B-Safe – own brand of medical products ▪ Launched Ckart – digital B2B platform for customers ▪ Expanded Honeywell mandate to 29 countries ▪ Tie-up with ZEISS to distribute binoculars & monoculars ▪ Licensing agreement with Honeywell for air purifiers ▪ Agreement with Edelkrone for videography accessories ▪ Tie-up with Reliance Retail for home appliance products ▪ Distribution agreement with MSi for mini-computers, and with Colorful Tech for SSDs ▪ Signed distribution agreement with Hyperice Inc. ▪ Renamed to Creative Newtech Ltd ▪ Added new products launched by Hyperice – who also has selected Virat Kohli at their brand ambassador in India 2018-19 2020-21 |
|---|---|---|---|
| ▪ Maharashtra & Gujarat ▪ & Distribution Pvt. Ltd. ▪ and Ahmedabad ▪ Epson Business Partner ▪ |
▪ Microsoft sub-distribution in business ▪ Exclusive license for Changed name to Creative Peripherals Honeywell ▪ Opened branches in Pune, Bangalore GoPro Foray into Lifestyle business |
▪ Forayed into retail security INDICOOL brands in India ▪ ▪ and Vidarbha Won distribution license for ▪ Migrated to NSE Main Board ▪ BaByliss ▪ |
Agreement with Future Tech Electronics - LED TV's for DAEWOO, MEPL & Expanded gaming product vertical via agreement with Thermaltake Exclusive agreement with 'iBall' for all their products in Madhya Pradesh Expanded IT, Gaming & Lifestyle segments with PNY, Cooler Master & Distribution agreement with Panasonic for audio products 45 |
▪ Expanded agreement with Honeywell for Passive Cabling
Case Study: Brand Licensing – Honeywell End to end services from factory to consumer

Honeywell : Fortune 100 multinational conglomerate offers various commercial and consumer products, engineering services and aerospace systems. Active across aerospace, automation & control systems and performance materials & technologies.
Our Involvement: Started association in September 2016 to capitalize opportunities seen in Indian market. Creative has been crucial support and channel for Honeywell to expand their product distribution in India, and now across other Asian & Middle East markets, and recreate "Power of Connect" among consumers

Case Study: Cooler Master Market entry, Customer engagement, Excellent Service

Cooler Master: One of leading global brands offering high-performance oriented PC components, used in Gaming PCs, Graphics workstations & Crypto-mining
Our Involvement: Started association in 2019 to enter Indian market as national distributor. Creative has helped Cooler Master with its pan-India network to make its products available to consumers through all channels
Marketing Strategy
- Market research & expertise to formulate customized, ideal marketing strategy
- Focus on building and maintaining brand reputation as a leader in Indian market
- Target its core TG Gamers and Enthusiasts
- Use social media to amplify word of mouth

Exclusive Distribution
- Leverage strong nation-wide network
- Exclusive distribution rights across India
On-Field Activities

- Brand awareness & promotion
- Trained more than 700 partners
- Content creation and Influencers
- Pre-sales activities
- PC Modder's
Scalability
- Witnessed growing sales in India: Share of revenue grew by 25%
- India offers high growth potential as its still in nascent stage, compared with mature markets worldwide



Geographical Presence


Domestic
- Pan India presence
- 20 branches across India
- Over 300-strong highly skilled workforce across India – mix of young and experienced talent
International
- Strong distribution tie-up in Middle East
- Expanding network across SAARC & Southeast Asia countries

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