FASHIOINING POSSIBILITIES. Telematics Industry : Challenges & Opportunities

Transcription

1 FASHIOINING POSSIBILITIES Telematics Industry : Challenges & Opportunities

2 Arya Omnitalk (AO) is the market leader in onboard GPS/Telematics systems in India Leader in on-board GPS market in India with >20% share* End-to-end solution including hardware, integration and support Proven solutions for several industries Oil & Gas, Staff Transportation and many others Bespoke Analytics and System Integration capabilities Clear profitable trackrecord Featured in Gartner s list of global telematics players * Internal estimates 2

3 Arya Omnitalk Solutions Portfolio Employee & Student Transportation Trucking & Logistics Oil & Chemical Transportation Taxi Dispatch Vehicle Classification & Tolling Solution End to End Solutions from Arya Omnitalk Coal Mine & Cold Chain Solution Video Surveillance Public Safety Solution Field Force Management Passenger Information System 3

4 Arya Omnitalk solution is a proven platform based on standards & meets multiple compliance requirements Hardware reliability: Average downtime lower than 2% Scalability: Control on embedded core for rapid firmware customization & third party interface compliance Credible 3 rd Party approvals: IP 67,EMI & EMC, Wireless safety for automotive use, MIL 810 for shock, dust & vibration 3 tier web platform architecture, global IT security compliant: KPMG IT security audit 2017 Proven interface with multiple platforms & technologies: SAP, Oracle, RFID, CCTV surveillance, Biometrics, Weighbridge,Exit boom barriers Unique analytical reports: Driver behavior,accident reconstruction, routing & route optimization, customized dashboards; real time Service uptime statistics, consolidated reports Server load optimization with BCP & DR: Assured plan for Business Continuity and Disaster Recovery Wide range of Industry vertical solutions 4

5 The Indian Telematics market ~ K units, growing at ~25% per annum and poised to accelerate Market size of ~250k units Growth drivers Employee Transportation 45,000 Low Route optimization (cost, occupancy, security), automating billing based, MIS Oil & Gas 45,000 Medium Monitoring vehicle & driver performance, reduce fuel pilferage, route deviations etc. Logistics 110,000 25% + Logistics modernization & GST Rental option to step-up growth Others 60, % + Public Transportation, Passenger Information Systems, Public Safety, Cold Chain, School Bus. 5

6 Significant upside given low penetration even in the established market segments Established segments: Trucks/ Tankers Emerging/ nascent segments Telematics solutions CAGR: 5.8% 4,035,968 Cold Storage; Warehouse; Mining, Hotel, Hospitals, Garbage collectors Truck population 3,038,142 CAGR: 25.6% PIS for Public Transport systems Asset tracking; e.g. Rental equipment, high value shipments, reusable assets such as pallets, Earth moving equipment Telematics installed 145, m parc, with ~300 k new trucks/year Penetration of ~5% (~30% in the US) 468, E Modern logistics & Government mandate driving growth Source: SIAM, Internal estimates Small fleets ~1.8 m trucks (70% of total) belong to small fleet owners which pay ~10% commission to agents for getting business Market-place enabled by Arya Omnitalk Telematics can be a disruptive value creating play 6

7 Telematics Industry : Other Upsides Government mandate from 2018 for all commercial Vehicles to be Telematics enabled Vehicle modernization & value offered to professional fleet owners may drive CAN bus as a de facto standard for Automotive OEMs for real time vehicle / engine diagnostics plus other key parameters. Vehicle Manufacturers getting interested in the value proposition offered by Telematics for both differentiation and in driving logistics efficiency for customers. Though traction is still low, it is bound to increase. With expanding 3G/4G coverage, integrating video with applications may open new markets for Telematics. GST likely to disaggregate logistics (while encouraging organised fleet operators),number of warehouses may reduce, resulting in trips becoming longer, in the process driving logistics companies to adopt Telematics faster, thus driving higher penetration. Insurance Telematics is likely to make a beginning in India soon, on the back of increasing deregulation and increasing insurance premiums. Smart City projects bringing a game changing role for Telematics in several verticals, offering opportunities of a magnitude never witnessed before by the Telematics Industry 7

8 Telematics Industry : Roadblocks Industry is still largely fragmented with intense competition due to lack of entry barriers, with no standardisation of specifications or deliverables. Availability of throw-away price devices, tempting small players to enter the Telematics industry without a proper assessment of the service challenges & costs of operation, leading to fly by night business operations, shaking up customer confidence. Steeply declining prices,shrinking margins and increasing costs of operation (since the industry is manpower intensive) for many players it s like having to run faster while discovering you are only running on a treadmill. Growing wish list of functionality expected by customers, without readiness to pay for such customization is stretching sales / payment cycles. Opex based business model is fast becoming a market norm, requiring higher investments in capital with all its attendant risks and costs. Insurance Telematics may need standardization of specifications and conformance to a threshold standard (a regulatory body?). 8

9 Telematics for Smart Cities Intelligent Transportation Solution Solution for Solid Waste Management Dispatch solution for Police and Hospitals Surveillance 9

10 Intelligent Transportation Solution Bus mount equipment In Bus Computer including GPS Driver Console In bus LED Display with Announcement system CCTV Cameras E Ticketing machines Bus stop equipment LED display board for PIS and advertisement Cameras Control Room Applications Inventory and scheduling solution Tracking and PIS solution Video management Route planning and Driving pattern monitoring Advertising management module 10

11 Intelligent Transportation Solution Broadban d Broadba nd Broadba nd Broadba nd GPRS/ 3G / SMS 11

12 Solid Waste Management Vehicle mount equipment GPS device RFID tag Camera for image capture Field equipment Long range RFID readers Attendance system Metal tags for bins Weigh bridge solution Camera Control Room Applications Bin management utility Tracking and scheduling utility Exception management utility 12

13 Public Safety Dispatch Solution Vehicle mount equipment GPS device Tablet / Smart phone Control Room equipment EPABX / Telephony solution Call taking utilities Decision making utility Map based route optimizing tool Vehicle Dispatch utilities CRM utility 13

14 Surveillance Field Mount equipment CCTV Camera Connectivity solution Control Room equipment Video management tool Video analytics utility Storage and retrieval utilities 14

15 Telematics Industry :The way forward Innovation in technology and business models shall be key to build a winning position. Differentiation in offerings will become increasingly important to succeed. Reliability of products and solution uptime will be essential to succeed. Make in India likely to become the best option. Scalability of the solution offered shall be an important success requirement. Data analytics likely to become a must have feature. Gap analysis on RFP for pragmatic operational and technical requirements while bidding shall become a key to sustainability. This industry is not for the weak hearted will become increasingly working capital intensive,requiring large outlays of capital for Projects, besides System integration expertise. Government /PSUs need to keep realistic prequalification criteria to ensure widespread participation and optimal cost of purchase 15

16 Thank You!

17 Product Mix for Smart City 17