India Bulls

OBJECTIVES    1. To know the strength, weakness, Opportunity and Threat to Indiabulls.   2. To study the financial services provided by Indiabulls.

INTRODUCTION OF COMPANY The Company was promoted by three engineers from IIT Delhi, resp. Sameer Gehlaut, Rajiv Ranjan and Saurabh Mittal. Attracted more than Rs.700 million as investments from venture capital, private equity and institutional investors such as LNM India Internet Ventures Ltd., Transatlantic Corporation Ltd., Farallon Capital Partners, R R Capital Partners and Infinity Technology Trustee Pvt. Ltd. This idea was to target the huge

• Indiabulls Financial Services Limited was established in the year 2000. The company started its operation with a team of 15 in a single office. The company has become the distributor of various financial products and operates from its 640 well established branches in different cities to serve a client base of around 4,500,000. The base of online clients has expanded from just 21680 in March 2004 to 100000 clients as of March 2005, today has around 450000 as of 2008. • This provides an excellent base for crossselling third party products like mutual

Some of the unique feature are: •Trading via branch network, telephones and Internet account. •Customized products for lending against shares. •Integrated Trading and Depositary Account. •Technology transforming desktop into NEAT like terminal for Internet trading. •One Screen for both Cash and Derivatives Trading. •Facility to Buy Today & Sell Tomorrow itself . •Equity Research Department, which studies the market and provides information. •Up-to-date news, data and analysis via Indiabulls.com •Customized Insurance services. Some important products and services offered by Indiabulls are: 1. Equities & Derivatives 2. Indiabulls Equity Analysis 3. Depository Services 4. Insurance

RESEARCH METHODOLOGY • Research Design: Descriptive   Sources of data:   • Secondary data: • Official website • Red herring prospectus • Internal newsletter • External newsletter • • • •

Primary data: Interview with company professional (top management) Mr. Gaurav Kulshreshtha (Manager). Brajesh Sharma.

SWOT ANALYSIS OF INDIABULLS WHAT IS SWOT ANALYSIS? S for strengths, W for weakness, O for opportunities and T for threats.

Strengths of Indiabulls – What makes Indiabulls better than it’s competitors? • • • • • • • • • • •

Online trading platform. Diverse Branch Network provides ample opportunities to penetrate deep into the existing & untapped market.   Indiabulls offers its clients a pool of financial services and products: No annual maintenance charges. No custodial charge. It does not keep any condition as to collect minimum amount of brokerage from its clients Most competitive BROKERAGE and DP charges (on delivery 0.5% and on intraday 0.1%) Equity analysis report to support the investment decision of its clients Trading via branch network, telephones and internet account i.e. both online and offline Induction of new employees through an extensive computer based training module. Real time online transfer fund and exposure updating facility with HDFC, CITIBANK, ICICI.

Weakness of Indiabulls: • It should have its own mutual funds as Indiabulls is providing advises in mutual fund. • It should provide tips via SMS. • There should be a separate set of staff working in fields and trading on behalf of their clients:   • Position to answer the questions of their clients relating to the current market position as they are on fields. • Commodities are not traded online. • It does not provide with the indices of major world markets, ADR prices of Indian scripts. • Unlike some of its competitors like ICICI and Kotak, Indiabulls does not provide a complete catalogue of financial services (e.g. Banking facility). • Due to the continuous need to meet the targets, some of the Relationship managers crack under pressure and thus leave the organization.

OPPURTUNITIES TO INDIABULLS: • Financial services like banking • Market expansion i.e. opening branches at untapped areas • Indiabulls is registered with Luxembourg stock exchange and so can target other stock exchanges. • ATM facility should be provided for easy withdrawals. • The Capital market in the last few years has turned out to be one of the favorable avenues for the retail investors • Scope of online trading on BSE. • Indiabulls has tied up with other third party companies to sell their products. Due to the high client base of Indiabulls, there exists

THREATS TO INDIABULLS: • Companies like Share khan, ICICI Direct, Kotak, and Private Brokers are major threats to Indiabulls. • Banks with demat facility jockeying for position. • Local brokers capable of charging lower brokerage. • Industry competitors vying for the same target segment. • Changes in SEBI guidelines & other tax implications. • Government Regulations.

LIMITATION •   •

Most of people don’t know about the Share Market. Mostly people believe in saving a\c, fixed deposits etc. they don’t want bear any risk. They want safety and security of their money.

   • Lack of data because of the Company certain constraint of data sharing.   • Lack of co-operation from the employees of the Company because of their busy schedule.   • To understand the concept of Share Market is a very tough job.   • Time constraint play important role. No body is having so much time to spend on people.  

Conclusion The meteoric rise of the company in the past four years is really a source of inspiration for all of us. We having done our summer internship at Indiabulls is really is a source of immense pleasure for all of us that we are a part of such an immensely successful organization. For us things that stands out is that three students after passing out from one of the premier engineering institutes of the country resist the temptation of a lucrative job and choose to venture into a business in which they did not have any prior experience and exposure. The most amazing thing is that the company is doing very well and it has been profitable since it started operations. This teaches all of us that the lack of experience and lack of resources is a small hurdle that can be overcome if one has a valid business model and is willing to take risks. If the three promoters had taken the risk the organization Indiabulls would not have been into existence. Another great learning is of teamwork and how well Indiabulls has used the concept not only to evolve but also succeed. It innovative idea of introducing a concept