Vakrangee


(phreak) #244

Incidentally I was reading yesterday’s ET and came across this

The part of interest to us is this.

Besides acting on privileged information, a promoter or acquirer can use layered companies to push up price in order to make it unattractive for shareholders to tender stocks in an open offer; or, it can be done to rig up price before placing shares to investors at a high valuation,”

So it is possible for a promoter to do this and seems to be happening commonly as per SEBI.


(spvk1) #245

Any relation with investment of LIC in vakrangee?

Disc. Not invested
Courtesy The Sunday Guardian and Alpha Ideas.


#246

List of deployed white label atms Vakrangee has as per RBI can be seen here


(phreak) #247

This is from their FY15 AR about White-label ATMs.

and this is from their website

47%20PM

So going by these two (Scheme-B in in first screenshot from AR), they were required to setup 15000 ATM from Jan 2014 to Jan 2017 at the rate of 5000 ATMs per year. They should have had 15000 White-label ATMs at this point but the RBI data points to only 601.


#248

209 atms are in Metropolitan and Urban areas as per RBI data as on 31.12.17
Vakrangee’s corporate presentation shows 11,808 kendras in urban areas as on 31.12.17
209 atms would mean 1.76% coverage. There’s no details on how semi urban kendras are treated.

Why are atms in urban kendra important? Because of the implicit assumption in workings show in below slides from franchise opportunity and minimum sales target for franchise
[http://vakrangee.in/data/advertisement/Presentation%20for%20Franchisee%20Opportunity.pdf
[http://vakrangee.in/data/advertisement/Minimum%20Gross%20Sales%20Target%20for%20a%20Franchisee%20Outlet.pdf]


(MeetSugat) #249

So what was decided in that meet ? Did buyback happened ?


(MeetSugat) #250

How many companies in that list ?


(Growth_without Debt) #251

PRESS RELEASE - 'VAKRANGEE AND ONE VASCO ALLIANCE GROWS STRONGER’

If the Vakrangee Business is real, I think there is no shortage of Businesses who want to roll out their services at Vakrangee Kendras (VKs). Huge network of VKs is real moat and compounder for earning for company and for investors !


(Growth_without Debt) #252

(Growth_without Debt) #253

(sta) #254

I think one should read the book bulls bears and and other beasts. It’s very interesting how promoters and hni can easily manipulate the stock price. It’s in Indian context


(Anupam) #255

Amazing - upper circuits each day, day after day. While we are trying to identify validity of Kendra’s , definitely few smart guys are minting money. Honestly, kind of catching a fish with bare hands kind of stuff. New experience for me at least. :flushed:


(peeksden) #256

I have experience in industry where Vakrangee operate. It is very surprising for me the revenues and profits in Vakrangee books. I have actually seen several companies private and some public doing similar projects struggle to survive and none to ever made profit.

As pointed by some members, inability to find Vakrangee centers as easy as some other similar franchise networks is cause of concern and need detailed analysis.

If you search google for “vakrangee complaint” you can find many consumer complaints specially looks like from people who like to become franchise… you can get zest of what’s happening on ground.


(grohal) #257

BLS International has failed to run similar centers in collaboration with Punjab govt. Project is getting cancelled as we speak. Aksh Optifibre is running almost 10000 similar BC and govt services centers in Rajasthan. They contribute almost nothing to top and bottom line of the company. Aks Optiibre trades at 600 corore Mcap, mostly for its Optical fibre business. Vs Vakrangee with still 25000 corore mcap. I see a big fraud in this Vakrangee story!!


(rvetri) #258

Can someone list down the services - both govt and private cos services
which the said entities provide - vakrangee, bls and aksh before we decide
somebody is fraud… Doing that step is logical in my view… Otherwise
it is like comparing somebody selling peanuts as a franchise vs domino’s
pizza… And then claiming domino’s pizza is a fraud…

And by the way - cover the business models and cover the names of the
principal cos too…


(peeksden) #259

I have done some more analysis. Earlier few members pointed out issues in Vakrangee Kendra address, also some relations with CSC.

CSC egov services limited is a public sector government owned company that operate franchise of common services center (CSC). It was setup as special purpose vehicle to setup its own centers all over India (but it later adopted franchise model) to provide digital services.

Initially aadhaar enrollment started with private enrollment agencies with temporary centers that also included Vakrangee but in 2015 to 2017 govt almost dumped private enrollment agencies and diverted all business to state governments(themselves or in association with csc) and CSC. Most private agencies stopped aadhaar enrollment business or operated via some banks. CSC was forced to do rapid expansion and it did by further doing tie up with private companies, and even vakrangee was able get some contracts specially in Rajasthan and few others.

CSC itself operate the model of franchise called csc vle (village level entrepreneur) that look exactly like vakrangee. Ideally CSC is competitor of Vakrangee.

Its very clearly visible that large number (25% or so) of centers that vakrangee setup for CSC under contract are claimed as Vakrangee Kendra’s , I could clearly see that huge number of centers in Rajasthan and maharashtra are also on csc website. I think just because Vakrangee acted as agent for CSC doesnot make them vakrangee kendras. If you approach these centers they will say they are csc vle but will also say they are under vakrangee (as agent of csc). It seems vakrangee also operated many centers in association with banks … as they were also in banking correspondent business for many banks.

Village entrepreneurs opened these centers trusting CSC as a large govt organization and paid to CSC. But there are large number of complaints online that bribes were taken to open such centers.

Surprisingly in 2017 Govt. decided to discontinue CSC centers for aadhaar as they found that these centers still remain private just that csc has come in between . This also completely discontinued vakrangee centers and all centers went into stress. Now govt is moving all centers into department of posts and to banks own premises. It seems come csc and vakrangee centers are struggling to move to banks.

This actually means Atleast 25% of Vakrangee Kendra’s May be non functional since last 1 year in their primary services related to aadhaar. In all cases vakrangee will never be a direct or indirect agency for aadhaar enrollment or updates. It may just struggle to keep some centers with banks but I think aadhaar may even disallow that as it highly concerned on security.


(peeksden) #260

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


(Sathish K N) #261

@peeksden ,
You are true on two counts - Vakrangee themselves are not claiming much revenue (or growth) from Aadhaar or WLA.
Not fully true on the other two - BC and eCommerce.
As per the investor conference, BC, Financial Services (Insurance?) and eCommerce are the contributors to revenue and growth drivers. The link on FINO you sent is from 2012 - the BC model must have changed a lot from that time - particularly given the new Jan Dhan Yojana (JDY) accounts that are being operated. Similarly, Insurance seems to give them higher commission.
Similarly, eCommerce is a driver given that Vakrangee is indicating that there are over 30 partners lined up for distributing products through VKs.
If we need to ascertain or disprove the revenue, the proof should be current BC revenue, Insurance product revenue or eCommerce revenue numbers.
No point is disproving Aadhaar numbers where the company itself is not claiming revenue is from Aadhaar.

Can anybody share insight on how much a VK can expect to do business on BC, Insurance and eCommerce?


(peeksden) #262

I think we should focus first on where has 13500 cr of revenue & 3400 cr of profits has come from in last 5 yrs. If this is justified then we can trust their current claims & future projections. Average of 2700 cr per year.

Banking correspondent business:

Vakrangee had contracts in Rajasthan(delhi) & Maharashtra (urban areas are not considered) at 0.37% & 0.48% respectively. While FINO had in much larger number of states.

Now check the FINO financials avaialble at
http://www.abhisheksecurities.com/pdf/fino_paytech_2016-17.pdf
http://www.abhisheksecurities.com/pdf/fino_finan_2015-16.pdf

FINO did on average 170 crore per year of sales and almost NIL profits.
I think Vakrangee could not have done more then 100 crore per year from BC business and on average 30 per year crore from aadhaar would still lead to just 130 cr. per year.

I think major part of sales could be sale of equipment (claimed as non-refundable deposit) to franchise. In case of BC business it only involve 25000 worth of device or 50000 worth of computer with accessories. and in case of aadhaar enrollment it involve goods worth 1.5lakh or so … In there new model launched 2017 its 50k for rural and 2.5lakh for urban…
As per old figures its may be average of 75k per vakrangee kendra would also make 330 crore in last 5 yrs to 44000 centers.

ecommerce, atm business is setup recently and doesnot have any significant contribution in last 5 yrs.


(rvetri) #263

What is Vakrangees revenue model. The revenue is not from retail people. Their revenues are from their principals…namely the Govt, reputed Pvt and PSU banks, Reputed Pvt and PSU insurance cos and several other reputed names in eCommerce and logistics.
they need to deposit all the money received from retail people to their principals. And they collect a fee from their principals and that is their revenue. Will all the cos i have mentioned above pay them by cheque or by cash. Obviously, they will pay by cheque only. If their revenues are from a few tens of reputed big public and private cos, and by cheque only - will it be that difficult for their auditors to find out whether their revenues are genuine or not.
People who argue that all their revenues are fraud…It is like saying that to earn about Rs 4000 crore as revenues, they deposited Rs 40000 crores per year to their principals…And collected rs 4000 cr per year as income/fees by cheque. And also paid rs 1000 cr till date as Income tax.
Can someone pls explain which fraud will deposit Rs 40000 cr per year of fake money to their principals to collect Rs 4000 cr as revenues. Because all the frauds know that every five yrs the govt itself comes with a black to white scheme where people with black money can legally convert their black into white by paying 50% Income tax on them. Will a fraud deposit Rs 100 to the govt and get Rs 50 as legal money or will a fraud deposit Rs 100 to their principals and get Rs 10 as legal money.

I will be grateful if people who keep writing the fraud theory without any supporting evidence can answer my simple question…