Partnering with Brand India For Leadership in Global Financial

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Partnering with Brand IndiaFor Leadership in
Global Financial Commodity Markets
EU-India Relations Vision 2020 Nov 8-9,
Brussels
Miten Mehta Financial Technologies Group
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A brief history of time15 years of Indias
reforms and liberalization
Original Sultans of Reforms The Dream Team

• The next generation of India Inc are the
  children of reforms, not necessarily children of
  businessmen
• ...No force in the world can stop an idea whose
  time has come
• - Prime Minister Mr. Manmohan
  Singh

These are the best of times and the worst of
times. While it is a good time to take credit for
the growth story, more reforms are needed (in
Financial, Energy and Agricultural sector) to
sustain this growth ...Look at the opportunities
we are missing, the growth and wealth we are
denying (to ourselves) -
Finance Minister Mr. P. Chidambaram
In the long run, India will win.. - Dy.
Chairman of Planning Commission Mr. Montek Singh
Ahluwalia
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Brand India Evolution From Cost Arbitrage - To
IP Centric Model
India 1.0 (Pre Liberalization)
Value Prop Cost Labor Arbitrage
Services e.g.- IT / ITES / BPO / KPO
Model Enable other Brands
Target Markets Export led Top of the Pyramid
Economic Benefit 1 of (tech) population - classes
Leaders TCS, Wipro, Infosys
India 2.0 (Post Liberalization)
IP centric Vertical Market Domain
e.g. - Financial Markets Transactions driven services
Be a global Indian Brand
Domestic first (global next) Middle and Bottom of Pyramid
70 of (agri) population - masses
FT, MCX, NSEL, SNX
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Financial Technologies will leverage its
leadership position in global technology
markets to re-define Brand India from a cost
arbitrage value proposition to an Intellectual
Property centric business model Jignesh
Shah Chairman Managing Director Finan
cial Technology Group

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India 2.0 Case Study
MCX Integrating Rural India with Global
Markets
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Saluting Mother EarthSource of All Commodities
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MCX OverviewIntegrating Rural India with Global
Markets

• MCX set-up and live in Nov 2003 (product of
  financial reforms in 2002)
• Regulated by FMC (Forward Market Commission)
• No. 1 Commodity Exchange of India with around 60
  market share
• USD 3.5 B daily average trading volume (3 times
  of BSE) in over 70 commodities
• Operations for 600 cities with over 1500 members
  10,000 Trading stations
• Among top 10 commodity exchanges globally in less
  than three years
• No. 2 in Silver Natural Gas futures trading
  globally
• No. 3 in Gold futures trading globally
• 10 International Strategic Alliances
• CCE, NYMEX, NYBOT, LME (UK), EURONEXT LIFFE
  (Europe), Baltic (Scandinavia), Bursa (Malaysia),
  DMCC (Middle East), TOCOM (Japan), Zengzhou
  (China)
• MCX is an unique and successful example of
  public-private partnership
• SBI, NSE, NABARD, HDFC and several other National
  banks are strategic investors.
• First Indian Exchange to file for public IPO with
  SEBI
• Fidelity invested USD 49 mil at USD 560 mil
  valuation in Feb 2006.

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Commodities OfferingGlobal Leader in 5 out of
top 10 commoditiesTotal 72 Commodities offered
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Global Strategic Alliances 11 out of top 15
Exchanges
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Commodity ExchangesUnlocking Value at Bottom of
Pyramid
From here
To here
Production
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Commodity ExchangesFarm to Retail enabler
From here
To here
Distribution
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Commodity ExchangesEfficient supply chain driver
From here
To here
Logistics
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Commodity ExchangesCatalyst for change
From here
To here
Infrastructure
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The Network EffectCreating New Efficient
Markets Ecosystems
All are E-Networked
Agro practices diseases
Agriculture price arrivals
Crop insurance
Warehousing Quality Certifying information
Agro inputs
Demand, supply, crop forecast news
Weather advisory
Markets, credit facilities
Markets Seasons
Rural employment government schemes
Procurement Information
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India Post Tie-upCommodity Price Information
dissemination
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US-India Award for MCX Leadership
Mr. Jignesh Shah
Sen Hillary Clinton
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India 2.0 Case Study
Financial Technologies Technology Engine powering
MCX, DGCX, NSEL, IBS Forex, SNX other
financial markets
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Financial Technologies GroupLeading Brand India
2.0 in Global Technology Markets

• Listed on BSE and NSE with USD 2.5B group market
  value.
• 8th among list of NASSCOM top 10 Indian public
  software companies
• 1 ranking by Business World among top 500 Indian
  companies in terms of shareholder returns and
  value creation.
• Super Specialization in niche of providing
  Technology Domain knowledge for financial
  markets
• Over 80 market share in Exchange and Brokerage
  Technology Solutions offered as services.
• Exchanges are to FT what Search is to Google
• Platform for disruptive innovation to create new
  markets and ecosystems!
• Create eBays for all non eBay 90 of things!
  
• Scale each venture from 0 to USD 1B in 1000
  days. e.g. MCX DGCX

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Financial Technologies GroupLeading Brand India
2.0 in Global Technology Markets
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• Our goal is to create globally competitive
• financial market infrastructure with
• MCX, NSEL, NBHC, SNX and others that will
• help bridge economic divide by
• integrating rural India with global markets
• Jignesh Shah
• Managing Director and CEO, MCX

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EU India OpportunitiesIn Financial Commodity
Markets

• Joint Ventures to establish and develop Financial
  and Commodity Markets in Africa, Middle East,
  Asia, Central and Eastern Europe
• Markets enable countries unlock value from
  Commodities, Natural Resources and Agriculture
  prudently
• Markets help nations to bridge rural urban
  economic and development divide.
• Markets empower people with information that
  allow people to compete and grow in finance,
  commodities and agriculture mkts.
• Wall street data at cable TV prices to remotest
  region of country
• Markets are platform of mass - change, disruptive
  innovation, disintermediation and more equal
  distribution of wealth
• EU India Opportunities Unlimited

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No force in the world can stop an idea whose time
has come- Victor Hugo
EU - India Partnership
Thank You

• Miten Mehta
• Financial Technology Group
• miten.mehta_at_ftindia.com

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India Post Tie-upCommodity Price Information
dissemination