Key Transaction Details
Purple Wave Infocom Limited has executed a Letter of Intent with Hyundai Motor India Limited (HMIL) for a long-term Hardware (Digital Advertising Kiosk/Standee) and Content Management Service (SaaS) engagement. The arrangement involves Supply, Installation, testing and commissioning of Digital Advertising Display Kiosk (Standee) of the company's brand "SAIPUR" across Hyundai dealership network.
Contract Specifications
- Brand and Model: SAIPUR - Digital Signage Kiosk
- Total Units: 1,500 Digital Display Standees
- Service Model: Hardware supply and Content Management Service as Software as a Service (SaaS)
- Contract Tenure: 60 months (5 years)
- Indicative Total Contract Value: ₹14,93,60,270 (₹14.94 Crore)
Deployment Plan
The proposed deployment of Digital Display Standees is planned in phases across PAN India in Hyundai's authorized workshops:
- Year 1: 600 units
- Year 2: 400 units
- Year 3: 500 units
Aggregating to 1,500 units total over three years.
Financial Terms
- Yearly SaaS Fee: ₹8,50,000 per annum for CMS during Year 1 and Year 2, and ₹16,00,000 per annum during Year 3, Year 4 and Year 5
- Payment Terms: As per agreed terms and conditions with HMIL Dealership
Important Conditions
The deployment schedule is indicative. The engagement will commence after receiving orders from Hyundai authorized workshops across India for two Digital Kiosks per workshop as per agreed terms and conditions. This LOI is non-binding and can be withdrawn anytime without assigning any reason and without incurring any liability on part of HMIL.
Management Commentary
Manoj Kumar Singh, Managing Director of Purple Wave Infocom Limited, stated that this LOI "marks a significant milestone for Purple Wave Infocom Limited and reflects the growing confidence in our digital display and smart advertising solutions." He noted that the engagement "strengthens our order pipeline and enhances revenue visibility while further establishing Purple Wave as a trusted partner for digital display and visual communication solutions."
Company Background
Purple Wave Infocom Limited, incorporated in 2007, is engaged in the business of digital PRO AV (professional audio-video) integration, post-sales support and distribution. The company provides end-to-end customized digital PRO AV and automation solutions including designs, integration, management & on-site support including cloud-based communication and automation solutions.
Risk Factors Disclosed
Actual revenues arising from the arrangement shall depend upon purchase orders issued by the buyer from time to time, market demand and fulfilment of agreed commercial terms. The LOI is non-binding and can be withdrawn anytime without liability on HMIL's part.