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DATA CENTERS:BUSINESS DYNAMICS

 Agenda
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• IDC Market – Demand Side

• IDC Market – Supply Side

• Skill Sets Required

• About Pioneer Group

• Business Plan
Skills Required
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• Understanding of IT needs of customers
• IT Expertise
– Maintenance and Upgradation of hardware,
database and operating system.
• Experience in IT Service Delivery
– Customer Care and Service Tickets
management
– Reporting & Monitoring
• Expertise in Networking
– Bandwidth consolidation
– Network equipment & IP address
management
– Troubleshooting and maintenance
Skills Required
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• Internet Security
• Infrastructure Management
– Design, Procurement, Installation and
Maintenance of
• Mechanical and Electrical equipments
• Fire fighting
• Physical security and Control
Systems
Suitability of Pioneer Group
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• Relevant experience
– Pioneer Online – Networking and Bandwidth
– Pioneer eLabs – IT Consulting and Systems
Integration
– Iconic Designs – Infrastructure
• Availability of team with relevant skills
• 2 years of study and trials
• Proven record of attracting and retaining blue
chip clients
– AT&T: First customer, now asking for more
space in Hyderabad and other cities
– $2 million order from Alghanim group for data
center space, office space and end-to-end
services
– Perfect record of 100% uptime over 1.5 years
 103% CAG in Group Enterprise Value
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1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
Pioneer Online
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• Started in 1998
• Amongst the first few private ISPs in the country
• 10 years of experience in consolidating and
selling bandwidth
• Serves more than 400 bandwidth buyers with
different SLAs (Service Level Agreements)
• Team of 60+
• Registrar of “.in” domain names
• Set up ISPs on end-to-end basis for 15 other
ISPs
• Sold technology and services to other Telcos
and ISPs like MTNL, BSNL, and Tata
Teleservices
Pioneer e- labs
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• Started in 2000
• 125-strong team
• Provides IT consulting services to large Indian organisations
– For instance, Pioneer eLabs designed and executed the network connecting
more than 1750 Police Stations for AP Police and has been maintaining it for
the last 5 years.
• Served more then 25 of the top 100 organisations in the country
• Turnover of $ 12 million, with strong growth going forward
• Expertise in networking, hardware, peripherals, software, system integration,
solution architecture and IT consulting
• Competed and won against companies like TCS, Sify and Wipro
• More than 95% of the team is technical team with a wide range of certifications and
skills
• Won a number of awards, including one of the e-governance projects being
showcased in its Centre of Excellence by the Ministry of IT, Govt. of India.
 Some Customers of Pioneer eLabs
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• ONGC • Heritage Foods
• GMR Group • Osmania University
• BHEL • Jawaharlal Nehru Technological
• BSNL University
• NTPC • Acharya N G Ranga Agricultural
• GVK Group University
• AP Police • Hyderabad Central University
• Govt. of Punjab • Sardar Vallabhai Patel National
• Rail Wheel Factory Police Academy
• South Central Railways • AP State Council of Higher
• Aeronautical Defence Education
Establishment, Bangalore
Iconic Designs
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• Property Development Company
• Expertise in development
• Team includes architects and engineers
with experience in different parts of the
world
• 40% - 50% investment in Office Space is
on equipment like Power Supply,
Generator Sets, Air Conditioning, Fire
Fighting and Security Systems – all of
which are critical for Data Centers
• Proven track record of delivering high
efficiencies in MEP
Ctrl S Datacenters Limited
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• 2 years in incubation
• Significant investment in terms of management time, proving the
operational capability of team, capital and marketing
• Participated in three events and generated more than 25 qualified
leads
• Has recruited an experienced team of 25+ with offers issued to
another 10+ candidates
• Has more than 10 customers
– AT&T, Alghanim, Metaminds, NowPos, Pacific Internet, Hartix Rubber,
Indian Immunologicals, Manabadi, Biscuitbusiness.com, Java Softech,
CareerRace
• Zero downtime in 1.5 years of operation
• In short, business has been primed and can move much faster
going forward
 Case Study*: AT&T
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• Customer is a global Telco major
• Setting up nodes in India to service global customers
• Stringent specifications and audit procedure
• Prefers a carrier neutral location
• Went with VSNL in other cities and Ctrl S in
Hyderabad
• Implemented in record time of two months
• Started with 500 sft, took an option on 500 sft more
• Now asked us to share the roadmap for roll out to
other cities so that they might move in to our facilities

* Case Study meant only for sharing with employees of Ctrl S; name of customer and / or other facts
may not be revealed to others
Case Study*: Alghanim
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• Customer is an MNC conglomerate based in Middle East
• 3 Factories in India including Kirby (pre-fab buildings)
• Implementing SAP
• Sought a Data Center and office space for SAP
implementation team
• HP + Reliance and Ctrl S + Dell survived till the final round
• Strong HP account
• Customer like Ctrl S facilities and asked HP to partner with
Ctrl S
• USD 2 million order placed on Ctrl S
• Scope includes Data Center space, Office Space, Managed
Services, System Integration
• First deliverables made in 2 weeks and completed full
implementation in 5 weeks

* Case Study meant only for sharing with employees of Ctrl S; name of customer and / or other facts
may not be revealed to others
Case Study*: Metaminds
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• Software company with strong domain expertise in
the travel vertical
• Has four software products all on web-based
architecture
• Needed to host the products to give it to clients on
trial
• Placed the order with Reliance, implementation
delayed
• Moved to Ctrl S once the facilities were shown
• More space would be required as customers are
added

* Case Study meant only for sharing with employees of Ctrl S; name of customer and / or other facts
may not be revealed to others
Case Study*: NowPos
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• R&D led voice technology company
– In Frost & Sullivan’s Top 20 Broadband Innovations in Aisa
Pacific
– Red Herrings Top 8 Indian Start Ups
• Management team with extensive experience in US silicon
valley
• Exposed to the best facilities in the world
• Initially hosted in VSNL, Mumbai
• Placed second order on Ctrl S, to be on the safe side
• After 6 months with Ctrl S, moved the original equipment
from VSNL to Ctrl S
• Key to the shifting was the better managed services
offered by Ctrl S and the redundant bandwidth offered by
Ctrl S

* Case Study meant only for sharing with employees of Ctrl S; name of customer and / or other facts
may not be revealed to others
Business Opportunity
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• $ 2 billion market in India by 2010
• Strong growth rates
• No infrastructure provider
• Disaster Recovery / Business
Continuity seats supply is very limited
• Leases are for the long term (10
years)
• Iconic has the experience of IT and
infrastructure, which is ideally suited
Business Opportunity
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• Set up top class Data Centers in three phases
• Phase 1 – 225,000 sft
– Hyderabad: 25,000 sft
– Mumbai, Blr, Chennai, Del: 50,000 sft each
– Buy 1 acre land in two locations
– Lease building in the other cities and Hyderabad
• Phase 2 – 125,000 sft
– Pune, Kolkata, Ahmedabad, Kochi, Chandigarh:
25,000 each
– Buy 0.5 acres of land in these Phase 2 cities
• Phase 3 – 50,000 sft
– 5,000 sft each in 10 cities like Jaipur, Bhopal & Vizag
Business Plan
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• Customer mix
– 60% wholesale customers
• Lease whitespace with Power, DG sets, UPS,
PAC, Fire fighting etc. but not racks and cabling at
Rs. 800 per sft per month to
• Other Data Centers
• System Integrators (HP, IBM, HCL etc.)
• IT Companies (Wipro, Infosys etc.) offering
Remote Infrastructure Management Services
• Telcos
• 40% Retail customers
– Racks + Bandwidth + Services
Business Plan
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• Sales per year of about 60,000 sft
• Expected EBIDTA – 35% in retail sales
• Total Investment required: Rs. 1,424 crore over six years for
400,000 sft of raised floor space
– Existing business has EBIDTA of Rs. 3 crore per year
– Rs. 100 crore equity needed
– Promoters would bring in Rs. 30 crore
– Investor, Rs. 70 crore
– Term Loan of Rs. 260 crore initially
– Replace with a Rental Securitisation loan after 2.5 yrs
– Second tranche of equity, Rs. 130 cr
– Third tranche, Rs. 105 cr
Summary of Financials
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• Investment Required: Rs. 1,424 crore
– Equity: Rs. 305 crore in addition to existing
business
– Debt: Rs. 559 crore
– Internal Accruals: Rs. 560 crore
• Sales expected to increase from Rs. 116
crore in Year 2 to Rs. 960 crore in Year 6
• Book profits expected from Year 3
• Positive operational cash flow from Year 2
Conclusion
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• Business Opportunity to invest about $

17.5 million in the next 6 months
• Highly specialised niche
• Strong and buoyant market ~ USD 800
million growing at 24%
• All trends point out to a higher than
expected growth in the market
• Pioneer group ideally suited to thrive in
the market
Thank You
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