Partnering with Brand India For Leadership in Global Financial & Commodity Markets Miten Mehta Financial Technologies Group EU-India Relations – Vision.

Partnering with Brand India

For Leadership in Global Financial & Commodity Markets

Miten MehtaFinancial Technologies Group

EU-India Relations – Vision 2020 Nov 8-9, Brussels

A brief history of time15 years of India’s reforms and liberalization

‘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

Original Sultans of Reforms – The Dream Team

‘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

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

‘Brand India’ Evolution From Cost Arbitrage - To IP Centric Model

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

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 DirectorFinancial Technology Group

MCXIntegrating Rural India with Global Markets

India 2.0 Case Study

Saluting Mother EarthSource of All Commodities

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.

Commodities OfferingGlobal Leader in 5 out of top 10 commodities

Total 72 Commodities offered

Global Strategic Alliances 11 out of top 15 Exchanges

Production

Commodity ExchangesUnlocking Value at Bottom of Pyramid

From here To here

Distribution

Commodity ExchangesFarm to Retail enabler

From here To here

Logistics

From here To here

Commodity ExchangesEfficient supply chain driver

Infrastructure

Commodity ExchangesCatalyst for change

From here To here

Markets, credit facilities

Agriculture price & arrivals

Markets & Seasons

Demand, supply, crop forecast & news

Rural employment & government schemes

All are E-Networked

Agro inputs

Crop insurance

Agro practices & diseases

Weather advisory

Procurement Information

Warehousing & Quality Certifying information

The Network Effect…Creating New Efficient Markets & Ecosystems

India Post Tie-upCommodity Price Information dissemination

US-India Award for MCX Leadership

Mr. Jignesh ShahSen Hillary Clinton

Financial TechnologiesTechnology Engine powering MCX, DGCX, NSEL,

IBS Forex, SNX & other financial markets

India 2.0 Case Study

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 eBay’s for all ‘non eBay’ – 90% of things! Scale each venture from 0 to USD $1B in 1000 days. e.g. MCX &

DGCX

Financial Technologies GroupLeading ‘Brand India 2.0’ in Global Technology Markets

MCX IBS Forex

ATOM ATOM TechnologiesTechnologiesIT services for

transactions on wireless devices

NBHC

64.3% 40% 99%e

55%

100%

10%

76%

40%

100% 100%

‘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

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

No force in the world can stop an idea whose time has come

- Victor Hugo

Miten Mehta Financial Technology Group

[email protected]

Thank You

EU - India Partnership

India Post Tie-upCommodity Price Information dissemination