In the past 12 years, Mr. Modi has been actively looking into the operations of the Company and has made every effort for the overall growth of the Company. Mr. Modi has capitalised the profits of the Company thereby gradually increasing the size of the Company.
Jupiter Infomedia was incorporated in the year 2005 with a capital base of Rs one lakh and a small team at Mumbai. The company gradually expanded with the efforts of Mr. Umesh Modi who apart from being the Chairman and Managing Director is the promoter of the company. In the year 2007, the Company also set up a content development centre in Kolkata.
The Company also came up with an IPO in August 2012 of Rs. 408 Lakh at a price of Rs. 20 per share and got listed on the SME (Small and Medium Enterprises) Platform of Bombay Stock Exchange. The Company increased its Share Capital by making a Bonus Issue in the ratio of 1:1 in the year 2014. This can evident the fact of capitalisation of the profits of the Company. The Company in the next year i.e. 2015 migrated to the Main Board of the Bombay Stock Exchange.
Replying to IIFL, Umesh Modi said, “Jupiter Infomedia has successfully developed verticals/portals with great content and user base.”
Could you please highlight your company's growth strategy?
As part of our broader growth strategy, we would like to focus on the development of various verticals with strong content and user base. Till now, these developments have been from the internal accruals and the entire cost has been written off. During this value creation stage, our aim is to grow our bottom line (after writing off the development cost) at an exponential rate through our treasury management and growth in our 100% subsidiary company which is into investment banking business.
Give us an idea about company’s plan for the NBFC subsidiary?
Jineshvar Securities P. Ltd. (JSL) is a 100% subsidiary of Jupiter Infomedia Ltd. JSL is an NBFC registered with Reserve Bank of India as an Investment Banking Company. JSL has made investments into few high growth potential listed companies. The company intends to derive superior returns on its investment and intends to be a leading investment company.
What are Jupiter Infomedia’s organic and inorganic plans?
Having a successful portal development experience, the company plans to develop more verticals/ portals. Presently, in India, there are tremendous opportunities for many interesting concepts on the internet. JIM has already identified a couple of high potential ideas and plans to develop e-commerce platform for the same.
Can you please give us a broader picture of company’s business model?
Jupiter Infomedia has successfully developed verticals/portals with great content and user base. These portals include:
JimTrade.com, India’s largest online business directory, has 5,00,000 plus manufacturers’ product profiles. It has a subscriber base of 10,00,000 plus for its e-newsletter on various product categories.
IndiaNetzone.com, an encyclopaedia on India, has 40,000 plus researched articles on India. This content has been researched and developed by the editorial team of Jupiter Infomedia Ltd. IndiaNetzone has a subscriber base of nearly 1 lakh for its e-newsletter.
Development of portals has major three cost components – content, user base development and cost for software/programming. During the above developments, the company has generated enough profits and almost all the costs have been written off, thus, creating an excellent valuable asset at virtually zero cost in the balance sheet.
What is the company’s marketing strategies to build brands?
All these years, company has spent on many efforts for branding and marketing. Some of them are as under:
Participation in 500+ Trade Shows till date
Every year JIM participates in around 40 trade shows where it creates awareness among the B2B buyers and educates about the benefits of JimTrade.com for product sourcing. Lakhs of B2B buyers are been registered for e-newsletter services of JimTrade.com.
JIM has a subscriber base of 10 lacs+ for its e-newsletter. Every month, subscribers are sent an e-newsletter with interesting new content developed during the month. Thus, lacs of people are regularly informed by JIM and thus, creating strong branding among user groups.
Search Engine Optimisation and Social Media Optimisation
Lakhs of JIM’s web pages are ranked in the first page of search results in Google & other search engines. These top ranking drives the traffic as well as continuously reminds the net surfers of our verticals. Apart from this, through social media optimisation, a strong network is created among the users.
Please give us an overview of the growth in the internet industry, amid threats like ransomware?
In India, we are at an inflection point for internet and mobile usage. India is the world’s second-largest Internet user base overtaking the US. China has the largest Internet user base, with over 600 million users. The rapid pace of penetration is an interesting story, it took 10 years for India to get to the first 10 million users and another decade to hit the first 100 million. The next 100 million has been added in four years, between 2010 and 2014. The next 100 was added in 2015 alone, and one expects this pace of penetration to continue for a few more years. However, while the initial phase of growth relied almost completely on English as the language medium, the next phase will require more localised content, in regional languages.
A major transformation in internet usage in India and one that has brought about the rapid penetration was the move away from static connection platforms to mobile ones using hand-held devices. The consumers engaged more through data for connectivity and minimised their money spent on voice. With Internet giants like Google and Facebook, as well as local players like Reliance launching different initiatives to bring the next billion online, the market scope can become significantly larger.
With the growth in the internet industry, there will always be a threat of various viruses, malware and spyware. However, there are many big antivirus companies who immediately find anti-virus updates to neutralise these threats.
Disclaimer: The contents herein is specifically prepared by ‘Dalal Street Investment Journal’, and is for your information & personal consumption only. India Infoline Limited or Dalal Street Investment Journal do not guarantee the accuracy, correctness, completeness or reliability of information contained herein and shall not be held responsible.
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