AI assistant
CREATIVE NEWTECH LIMITED Capital/Financing Update 2021
62737_rns_2021-05-03_500c9e41-633f-4c54-ad10-f41c0463032b.pdf
Capital/Financing Update
Open in viewerOpens in your device viewer
Date: 03rd May 2021
To, The Manager Listing Department National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Bandra (East) Mumbai- 400051
Sub: Updates on business developments and scenario.
Dear Sir,
We are pleased to enclose a copy of press release regarding recent business developments in the Company and market.
Kindly take the same on record.
Thanking you,
Yours Faithfully
For Creative Peripherals and Distribution Limited
Tejas Doshi Company Secretary and Compliance Officer ACS – 30828
Date: 3rd May 2021 Place: Mumbai
Creative Peripherals and Distribution Limited
Business Update Release
Company sustaining through slowdown due to COVID-19 pandemic
Ckart Seller Module launching soon
Expanding warehousing space to accommodate expected incremental growth
Added BPL lights, fans and appliances to existing Reliance agreement
Planning to launch range of Honeywell audio products and new range of air purifiers
Mumbai, 03rd May 2021: 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 some of the latest developments in the Company.
The industry and economy is reeling under the second wave of COVID-19 spreading across the country. The pandemic continues to take a toll on people's lives. Moreover, partial lockdowns in several parts of the country have also adversely impacted logistics and business operations across various sectors, including ours. While the environment remains uncertain, Creative is committed to deliver consistently and come out stronger.
To achieve this, the Company relies on its three-pillar strategy/model:
- Capitalizing our expertise in market entry and penetration for niche global brands
- Enhancing our brand licensing business with Honeywell and other potential brands
- Capture a broader range of supply chain partners and products through our online B2B platform, Ckart
On these fronts, Creative is making significant progress. The Company is soon going to launch a 'seller module' on Ckart. Through this, channel partners will be able to sell their products and brands through the platform, even if the brand is not under Creative. In addition to buying from Creative, partners would be able to sell their entire inventory of brands through the platform, to their own customers. This will facilitate higher sales for the partner, thereby benefiting all players
Creative Peripherals and Distribution Limited
in the supply chain. Thus, Ckart would become a complete B2B marketplace enabling partners to buy as well as sell their products, even if the brand is not directly under Creative. This is expected to attract more customers to join the platform to boost their own sales. Moreover, a partner would now be able to have their own-branded store/site hosted on Ckart, from where their customers can buy their products. This will give more visibility to the partner and facilitate them to have their own online store.
To support these expansion initiatives and to cater to expected demand, the Company has expanded its state-of-the-art warehousing space in Mumbai.
Additionally, Creative has strengthened its agreement with Reliance to include a range of BPL lights, bulbs, fans and small domestic appliances. This not only adds a new prestigious brand to our portfolio, but also widens our product verticals to include home appliances, thereby giving us a larger target market.
Last but not the least, the Company is further expanding its Honeywell portfolio with a range of audio products such as wired and wireless headphones, earbuds, Bluetooth speakers, sound bars etc. We will also be launching a new range of Honeywell air purifiers.
Creative Peripherals and Distribution Limited
Management Comment:
Commenting on these developments, Mr. Ketan Patel, Chairman & Managing Director of Creative Peripherals & Distribution Limited said:
"These are challenging times for our nation, as the second wave of COVID-19 is spreading all over the country and has proven to be worse than the first. The pandemic continues to hamper the personal lives of everyone. Similarly on the business front, almost all industries have been affected by the partial lockdowns across the country. However, we, at Creative, are committed to deliver even in the face of such headwinds.
On a positive note, we have some exciting updates to share with you all.
Our online B2B eCommerce platform Ckart is gaining significant momentum with many new and existing partners joining the platform. We are now planning to launch the seller module of the platform, which will enable partners to sell their entire inventory of products online, even if the brands are not directly under Creative. For the first time, it will allow partners to sell their complete catalogue of products through Ckart in addition to simply buying through us. This will boost their topline, making it a lucrative win-win situation for everyone. Our partners will also be able to have a store/site in their own name hosted on Ckart, giving them more visibility and access to more customers. We expect Ckart to become the B2B marketplace of choice for players across our supply chain. To support this growth in partner network and demand, we have expanded our warehousing space, more than doubling it.
On another note, we have strengthened our tie-up with Reliance to include BPL's range of lights, bulbs, fans and home appliances. BPL is an established household brand name, and is a valued addition to our portfolio. This development also gives us better foothold in the new vertical of home appliances and widens our target market.
Our relationship with Honeywell also continues to grow, as we will soon be launching their range of premium audio products such as headphones, earbuds, Bluetooth speakers and sound bars. We also plan to launch a new model of Honeywell air purifiers and expect demand for these to increase in the future.
I believe the team has demonstrated tremendous resilience and has what it takes to not only sustain through such times, but come out stronger. I would like to thank all our employees and stakeholders for their continued hard work and support in our endeavors, and would wish everyone good health and safety."
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:
| Company: | Investor Relations: |
|---|---|
| Abhijit Kanvinde | Savli Mangle/ Rahul Trivedi |
| Chief Financial Officer | Bridge Investor Relations Pvt. Ltd. |
| Creative Peripherals and Distribution Limited | Email:[email protected]/ |
| E-mail: [email protected] | [email protected] |
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.