Aadhaar enrollment, updates and plastic card.(claimed as primary revenue source in franchise opportunity)
Aadhaar enrollment paid just Rs.35 or so per enrollement but most agencies realised not more then Rs.25 due to errors, margins by banks/csc and panelties.
This means not more then 125 crore in revenues and I can say confidently that total franchise and vakrangee investments would be much higher then this. And profits are nil. Even if you add updates it would be just 20 crore or so more till 2017.
Aadhaar plastic card. You can search online and find that there is no concept of plastic aadhaar card or smart card. It was a fraud (to citizens) propagated by many private agencies and aadhaar has made several press release against it. It was this type of issues that aadhaar decided to stop private centers. It would have not added more then 25 crore in revenues.
New Franchise fee: the franchise opportunity presentation say total equipment of 7 lakh is given rs.2.5 lakh. … all this equipment actually really cost nearly 2lakh and this means there is negligable royalty or franchise fee in it considering furnishing and marketing material. Also they are giving ATM In their custody. This also means even in past they have not earned any considerable royalties.
Where are the thousands of crores of revenues and profits of vakrangee coming from. No franchise can survive on aadhaar revenue.
Banking correspondent business.
This is the second most important business revenue claimed in franchise opportunity.
Again in UPA time to expand banking to rural India govt forced psu banks to appoint private banking correspondent agents in each village. Read this article to see how profitable this business was
Vakrangee took contracts at 0.48% margins while several companies at 2% could not survive.
I am sure by looking at condition of psu banks. There is no need for any explanation how efficient their rural operations are expected to be. Most agencies could not recover even 50% of their invoices.
New ATM business… I have not done much analysis but as per some news I read most other white label ATMs businesses have already accepted that its flopped. After demonitization this business has completely collapsed.
Ecommerce and insurance etc. all is very new introduced business and I can tell you not much revenues generated in last 1-2 yrs. 90% of centers are yet to start them.
Can someone please explain me how and from where the thousands of crore of revenues and profits have come from