Telematics Industry : Challenges & Opportunities

FASHIOINING POSSIBILITIES

2fashioning POSSIBILITIES

Arya Omnitalk (AO) is the market leader in onboard GPS/Telematics systems in India

* Internal estimates

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

Featured in Gartner’s list of global telematics players

Clear profitable track-record

3fashioning POSSIBILITIES

Arya Omnitalk Solutions Portfolio

Employee & Student

Transportation

Trucking &

Logistics

Oil & ChemicalTransportation

Coal Mine & Cold Chain

Solution

Taxi Dispatch

Public Safety Solution

Field Force Management

Passenger Information

System

Video Surveillance

Vehicle Classification & Tolling Solution

End to EndSolutions fromArya Omnitalk

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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 3rd 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

5fashioning POSSIBILITIES

The Indian Telematics market ~250-300K units, growing at ~25% per annum and poised to accelerate

60,000Others

Employee Transportation

Logistics

Oil & Gas 45,000

45,000

110,000

Low

Medium

25% +

200 % +

• Route optimization (cost, occupancy, security), automating billing based , MIS

• Monitoring vehicle & driver performance, reduce fuel pilferage, route deviations etc.

• Logistics modernization & GST• Rental option to step-up growth

• Public Transportation, Passenger Information Systems, Public Safety, Cold Chain, School Bus.

Market size of ~250k units Growth drivers

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Significant upside given low penetration even in the established market segments

• 3 m parc, with ~300 k new trucks/year

• Penetration of ~5% (~30% in the US)

• Modern logistics & Government mandate driving growth

4,035,968

2021E

Truck population

468,584

2016

3,038,142

145,000Telematics installed

CAGR: 5.8%

CAGR: 25.6%

Source: SIAM, Internal estimates

Established segments: Trucks/ Tankers Emerging/ nascent segments

• Telematics solutions

– Cold Storage; Warehouse; Mining, Hotel, Hospitals, Garbage collectors

– PIS for Public Transport systems

– Asset tracking; e.g. Rental equipment, high value shipments, re-usable assets such as pallets , Earth moving equipment

• 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

7fashioning POSSIBILITIES

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

8fashioning POSSIBILITIES

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 ?) .

9fashioning POSSIBILITIES

Telematics for Smart Cities

Intelligent Transportation Solution

Solution for Solid Waste Management

Dispatch solution for Police and Hospitals

Surveillance

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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

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Broadban

d

Broadba

nd

Broadba

nd

GPRS/ 3G

/ SMS

Broadba

nd

Intelligent Transportation Solution

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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

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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

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Surveillance Field Mount equipment▪ CCTV Camera▪ Connectivity solution

Control Room equipment▪ Video management tool▪ Video analytics utility▪ Storage and retrieval utilities

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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

Thank You!

17fashioning POSSIBILITIES

Product Mix for Smart City