BCG’s Israeli Connection

Viewing 20 posts - 1 through 20 (of 28 total)
  • Author
    Posts
  • #7022
    Logan
    Registered Boarder

    1>

    In this article I have discussed how BCG benefited from having a subsidiary in Israel (ORIDIAN) and how it helped BCG to become a global player. I’ve also discussed the opportunities that BCG may have in the future and BCG working on those opportunities depends on many factors such as costs and benefits.

    Ybrant (BCG) bought ORIDIAN, Israel (Online Media Solutions, OMS) in 2007 for $13 million (51 crores back then).

    About ORIDIAN

    Details about ORIDIAN mentioned in some websites (before BCG bought ORIDIAN).

    Oridian is an international ad network that targeted the non-US market, selling in 40 countries around the world, succeeded in reaching at least 20% of online users in all the major European countries. Oridian monetizes foreign online traffic in North America, bridging between advertisers and publishers around the world to bring international advertisers to North American publishers. Aiming to provide quality global media to advertisers (this was mentioned in NewsBlaze, Feb 2008).

    Oridian – Online Media Solutions, Ltd. is the privately owned leading global online advertising company that lifts both advertisers and publishers to new heights. With over 9 billion monthly impressions, a massive worldwide inventory and access to tens of millions of users on various continents, Oridian enables advertisers to implement highly effective network-wide branding as well as direct response campaigns, and allows publishers to monetize traffic from all over the world. Oridian is a Top-10 network with access to over 180 million monthly users worldwide, of which 40 million are in North America and 87 million are in Europe. Oridian maintains international headquarters and a development center in Israel, sales offices in North America, Latin America, Argentina, Germany, France and the UK, and representatives in Australia, Scandinavia, Italy and Greece
    (mentioned in prweb, Nov 2007).

    0
    #7023
    Logan
    Registered Boarder
    Topic Author

    2>

    Jacob Nizri, who is the President of Brightcom, was the CEO of ORIDIAN when Ybrant bought ORIDIAN. Mr.Reddy mentioned that the force behind the whole growth of the company was Mr.Jacob Nizri.

    As I mentioned above, ORIDIAN was bought for Rs.51 crores in 2007. Back then it’s revenue was $ 20 million which was around Rs.100 crores.

    Now, in 2019, ORIDIAN made revenues of Rs.980 crores, profit before tax was Rs.245 crores and profit after tax was Rs.189 crores. These figures are simply amazing (ORIDIAN is audited by Ernst & Young, EY)

    Imagine someone had invested 1 crore in a company and every year that person was getting 20 crores as revenue and taking out all the expenses he/she got 4 crores as profit. i.e. he/she was getting revenue 20 times the investment and profit 4 times their investment every year and not just one year.

    No other subsidiary in the group has done as well as ORIDIAN. BCG’s revenue is above Rs.2500 crores and close to Rs.1000 crores comes from ORIDIAN alone. 38% of BCG’s revenue and 42% of the net profit comes from ORIDIAN alone. Other subsidiaries in the group are doing well but ORIDIAN’s contribution is more (all the details are available in the Annual Report).

    In an interview, Mr.Reddy said that, back in 2005 they were very small compared to what they are now. I think most of the credit should go to ORIDIAN and that is why I’m interested in BCG’s Israeli team.

    Mr.Nizri deserves great credit for this and we, shareholders, should applaud Mr.Suresh Reddy for investing in such a great company (I doubt if the naysayers can do this great job, they are only fit for complaining, they see only price and fail to recognize talent and that’s why BCG is trading low).

    1+
    #7024
    Logan
    Registered Boarder
    Topic Author

    3>

    When BCG bought ORIDIAN it was among the top 10 digital marketing companies in whole of Europe and I think it is still among the top 10 there.

    We should remember that BCG also has a great presence in Latin America thanks to ORIDIAN and DreamAD Group. I remember Mr.Reddy mentioning in a conference call that BCG was among top 5 in Latin America.

    North American market is huge and BCG is among top 50 players there.

    When people criticize Mr.Reddy they should see all these before talking. It’s not easy to be a global player.

    When people say AFFLE is better than BCG we should be laughing at them and their ignorance. Mr.Reddy rightly said that AFFLE is not their competitor, AFFLE can’t become a global player right away, it will take many years but BCG is already a global player. People buying AFFLE at 60 PE are missing out on a great opportunity to invest in a global player like BCG which is available at just 1 PE.

    1+
    #7025
    Logan
    Registered Boarder
    Topic Author

    4>

    All these years, there was no interest in digital sector in India but recent investments by many big companies like Facebook, KKR etc in Reliance JIO has brought interest in digital sector in India and many people are noticing BCG’s strengths.

    Mukesh Ambani has rightly said that data is the new oil, and we all should know that internet and especially the digital sector plays a huge role in our day to day activities. As more companies become digital, companies like BCG benefit a lot.

    Many people will try to start a digital marketing company looking at the recent developments but they won’t have the technology or the talent that BCG has. BCG can easily scale up their business here but new companies cannot compete with big players like BCG. Others won’t be able to offer all the services BCG offers, clients going with BCG can get Digital Marketing, Software Development, AI and ML.

    Many people are talking about the benefits of digital sector now (in 2020) but we should remember that Mr.Suresh Reddy saw this 20 years back when he started USAGreetings.com.

    1+
    #7026
    Logan
    Registered Boarder
    Topic Author

    5>

    We are discussing only past and present, what about the future?

    We should know that Israel is no.1 in Artificial Intelligence. The country had faced scarcity of drinking water and also for agriculture for many years. Israelis did not look for help outside to solve their water problem, instead they started using technology to solve complex real life problems. Implementing AI, Israel could use their water resources efficiently. This not only solved water shortage issue, they now have surplus water.

    Israel recycles 90% of its waste water. Spain which is the second country that recycles more, recycles just 20%. Israel could do this because of AI. Israel has helped many underdeveloped countries in Africa that had water problems.

    Israel is a very advanced country when it comes to technology and all the major tech companies in the world have invested hundreds of billions there.

    The country is no.1 in CyberSecurity, 20% of the private investments in CyberSecurity is made in Israel. All the companies that have an Autonomous Vehicle (AV) division have invested billions of dollars in Israel.

    Recently the admin had shared an article on how AI can help scientists’ and doctors’ research on the novel coronavirus. Healthcare industry needs the help of AI to know more about the novel coronavirus.

    Now, because of COVID-19 pandemic, all the research is mainly focused on that and because of technology the drug companies are making a vaccine in such a short time (all these years it took many years to develop a vaccine, at least 4-5 years).

    We should know that AI can be implemented in the research of other diseases like cancer, HIV AIDS, malaria and other deadly diseases. In the not so distant future, some of the deadly diseases will be eradicated or we’ll have better treatments than it is available now. There’s already vast research going on cancer treatment and AI has helped a lot in that research.

    0
    #7027
    Logan
    Registered Boarder
    Topic Author

    6>

    AI has great applications in many of the industries like Healthcare, Agriculture, Banking, Finance, CyberSecurity, Military, Space Exploration, Autonomous Vehicles, Gaming, Nuclear Energy etc.

    Our planet has more than 700 crore population and that is expected to increase over time. Feeding so many people is not an easy job and as we know because of global warming the climate is changing and there are frequent droughts, cyclones, hurricanes and other natural calamities.

    There are many challenges in agriculture which cannot be solved so easily. AI can help agriculture in many ways. With the help of AI we can know whether a single drop of water has reached the plant or not. Israel has done it, they monitor the agricultural fields using AI. There will be better yields because of AI, which in turn saves water.

    Israel has done many of the above and it was the first to do it.

    India has water scarcity in many regions and we can use AI in agriculture to save water, get better yields and recycle waste water like Israel does. We can be water surplus in the near future if we start using AI in agriculture. Farmers will benefit a lot with this.

    (There are lots of information on AI implementation in Israel, which can be shared. However, I am concluding with above information, as I might have to start many threads for this one topic).

    1+
    #7028
    Logan
    Registered Boarder
    Topic Author

    7>

    If BCG starts doing more projects on AI and ML, the revenue will grow more. I have mentioned only about AI in Healthcare and Agriculture but as I’ve also mentioned above, AI has many applications in other fields and BCG can take advantage of that because of their Israeli connection. India has great relationship with Israel and BCG can leverage that.

    Of course everything depends on costs and benefits. BCG may or may not scale up their AI and ML business depending on the situation but if everything works out well and if they do start AI and ML then they’ll have a great future.

    (I think BCG can benefit a lot from having a large team in Israel because they’ll have better access to some of the technologies which others may not have. All these are my views and they may not be accurate, also I’m not an expert on AI and ML and whatever I have discussed here, it’s mainly through the business perspective).

    0
    #7253
    Investor_2022
    Registered Boarder

    I think I am posting this in an appropriate subject.
    Edgecase.ie is a subsidiary of BCG group (via Lil projects I guess).
    This is a specific foreign subsidiary (head office in USA) for BCG’s AI and ML business.
    They (edgecase) are participating in one event/virtual show today.
    This show is organised by 365x Sarona partners (Israel based company).
    In this event’s website, Edgecase’s description is mentioned as below.

    https://demo.365x.io/

    Product
    Edgecase.ai has created MedCase Health, our health care platform that provides skilled clinicians on demand to provide data annotation and labeling services in a HIPAA compliant platform to enterprises and startups alike. With the MedCase Health solution, companies are provided skilled clinicians / physicians from the US and the rest of the world to provide the data annotation to train the AI algorithm, conducted within a HIPAA compliant SAAS solution

    Description
    Edgecase.ai has developed a platform and network for large scale A.I. annotation. With Medcase Health, Edgecase.ai has released a healthcare specific solution to the market, at scale data annotation by medical professionals in a HIPAA compliant platform. Edgecase.ai has developed a platform and network for large scale A.I. annotation and with Medcase Health we allow medical professionals to scale data annotation.

    If anyone is intereested then you can register on the below.
    https://www.eventbrite.com/e/365x-virtual-showcase-tickets-109528849738

    In short, I think edgecase (BCG) is trying to scale up AI business in health industry.

    0
    #7254
    Investor_2022
    Registered Boarder

    The below post was found on LinkedIn by one of the edgecase’s employees.

    Behind the Edgecase platform, a team of professionals in various fields are determined to bring you the best solutions for your A.I. systems.
    Edgecase.ai has a staff of 12 people managing R&D, more than 10 dedicated to operations and support, and approximately 150 full time data annotators who are available in areas such as healthcare, agriculture, retail, industry 4.0, and more.
    Additionally, Edgecase has around 1,000 employees working part time to ensure the good performance of our tools. Providing accessible, fast, and accurate data is our goal, and more than 30 clients have approved our results.

    This guy is a product manager in Argentina. So, I guess edgecase has a office in Argentina too.

    0
    #7255
    pranil
    Registered Boarder

    Thanks Investor,

    Are you sure Edgecase is BCG subsidiary? I guess it’s not.

    1+
    #7260
    Logan
    Registered Boarder
    Topic Author

    Thank you @Investor_2022 for sharing this information with us.


    @pranil
    , I think ingress ventures owns edgecase and ESPOT TV. CEO of ingress ventures is Brad Cohen who is also the chief strategy officer of BCG.

    There’s no proper details on ingress ventures website. The website just has links to BCG,edgecase and ESPOT TV websites.

    My guess is that Jacob Nizri looks after digital marketing unit of BCG and Brad Cohen looks at other opportunities. If we look at Lycos LIFE, most of promotions were done by Suresh Reddy and Brad Cohen. So maybe Brad Cohen is looking after BCG’s AI and ML unit.

    We should ask the CEO about this in the conference call for more details.

    0
    #7263
    pranil
    Registered Boarder

    Dear Saul, Brad Cohen is co-promotor of Edgecase so it being 100% subsidiary is ruled out. Yes there is chance that BCG own some share. Better to get it clarified from Mr Reddy

    1+
    #7259
    Rajesh Patel
    Registered Boarder
    #7261
    Rajesh Patel
    Registered Boarder

    @ pranil please refer below screenshot for your answer regarding investment of more than 1300 cr screen shot of SKR ans in last concall

    0
    #7266
    jmathew
    Registered Boarder

    As per https://www.edgecase.ai/ site, lycose is a partner or client of edgecase.ai. ( end of the page.)

    0
    #7267
    Rajesh Patel
    Registered Boarder

    we-endeavour and ingress ventures both these two company may be part of esop and brightcom group holding sizable chunk… thats real posibility.. vixy.tv aquired by boldwin and now boldwin removed privacy policy that they online media solutions dba boldwin,
    more over all website registration now keeping secret, no owner specified ingress. ventures, tryan. in, woo.media aka vixy. tv

    0
    #7268
    Rajesh Patel
    Registered Boarder

    please think about whereis lycos tv and lycos shopping now.. they are espot tv and hyped….posibility…

    0
    #7269
    Logan
    Registered Boarder
    Topic Author

    @pranil, I think ingress ventures is like we-endeavour group. Since Brad Cohen doesn’t own shares in BCG, the management may have let him to start a company that won’t compete with BCG.

    And maybe BCG has invested in that and it may not be 100% owned by BCG.

    @Rajesh Patel, thank you for sharing that, I remember Mr Reddy taking about that in the conference call.

    The company has improved it’s operating cash flow over the years but the problem is with free cash flow. So when they get the LOC, they may improve that also.

    Regarding dividends, all these years even though the software division made profits, all that money was spent on paying off the loans, so now with the loans completely paid off using money from PO, the company may start paying dividends regularly.

    At first, they may start giving small amounts but after settling Daum case and when they generate more free cash using the LOC, they may start giving more.

    0
    #7270
    Rajesh Patel
    Registered Boarder

    there are a nos. of employees are common for edgecase and brightcom in india. linkedin shows more than 25 ai specialist in BCG hydrabad office.

    0
    #7271
    pranil
    Registered Boarder

    Thanks Rajesh.
    I am not fully clear. From Balance sheet it seems bulk of money is spend on buying media space.
    But in any case avg investment time of 1340 cr is 2.5 years.. concern is that it has not yielded any result so far. That’s why it will be interesting to know from Mr Reddy.

    0
Viewing 20 posts - 1 through 20 (of 28 total)
  • You must be logged in to reply to this topic.