Telecom Resellers Company Investment Opportunity in Jakarta, Indonesia

- Our company is the official partner, distributor and reseller of XL Axiata telecom products in Indonesia.

- There are 20 other official partners of XL Axiata. However, our company is the largest in terms of outreach and recognition in the Indonesian market. The life of the contract is 3 years and is renewed near expiration.

- XL Axiata is one of the largest telecom service providers, network carriers and equipment manufacturer in Indonesia.

- Our company purchases telecom products from them in bulk at highly subsidised price and then store it at our warehouses.

- These products are sold to over 30,000 retailers across Indonesia who sell them directly to consumers. These retailers are typically independent shop-owners selling mobile phones and telecom products. Our company does not sell products directly to consumers. XL Axiata does not sell products directly to retailers. Hence, they can only purchase them from official partners.

- Each product is sold to retailers after adding a fixed margin to the price we paid for buying the products from XL Axiata. The margin percentage varies between 5 to 10 percent and depends on one product to another.

- Goods are supplied to retailers as per the purchase orders they place with us. Every month we fulfil over 35,000 purchase orders of varied sizes. Logistics support is outsourced.

- We also provide additional tech support to XL Axiata by running company-operated call centres. Currently, there are over 50 such centres across Indonesia that are operated by our company. If the consumer faces a technological glitch or any issue whilst using the products, they can directly reach out to us by dialling the contact number of our support centre that is nearest to their location. Post understanding the problem, the issues are transferred to the technical team of XL Axiata who fixes them from the back-end.

- The products are branded under the name of XL Axiata itself. However, a brochure with our company's name along with the numbers of our call centres is mentioned on a small brochure. The brochure is provided by the retailer to every consumer who purchases the product.

- 85 percent of the total revenue is generated by selling products to retailers and the remaining 15 percent is generated by receiving a monthly fee from XL Axiata to provide them with additional tech support through our call centres. These are the only sources of revenue for our company.

We supply the following telecom products:

- Sim-cards.

- Scratch cards for prepaid mobile packages.

- Scratch cards for multiple 3G and 4G data packages.

- Wi-fi routers and scratch cards for multiple internet connection packages.

- Television set-top box connection packages.

Physical assets include:

- Inventory of products such as: sim cards, wi-fi routers, scratch cards for data packages, cables, set-top boxes, etc.

- Furniture, laptops, printers, telephones, and interior fittings in company-operated offices.

- Company owned vehicles.

- The business runs operations from 72 different rented facilities across Indonesia.

- The facilities are evenly split between warehouses, tech support offices and corporate offices.

- Each facility has an extremely nominal rent and has an average size between 500 to 1,000 sq. ft.

- The corporate headquarters is located in Jakarta, Indonesia.