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Investment Opportunity Internet Vesion

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  • 1. Investment Opportunity Retail Chain Background and Company Overview For more information, please contact: Aartee Roy, Vice President, KINDUZ Business Consulting Pvt. Ltd., Mobile: +91-9246185184 / 09246185184, Email: aartee.roy@kinduz.com
  • 2. Industry Overview • At current size of USD 13.1 billion organized retail penetration is 4% • Retail consumption is expected to grow to USD 430 billion by 2010 and USD 650 billion by 2015, and the share of organized retail is expected to be 20% • Organized retail has witnessed a CAGR of 35% over the past 5 years accounting for 1.5% of the GDP • Retail sector is expected to grow at a CAGR of 50% , to be worth USD 90 billion by 2010o • Specialty stores and cash-and carry format are estimated to get a share of 22% and 16% respectively in the overall pie • Bigger cities are likely to corner 62% of the total investment expected to be made in urban retail Growth Drivers India is at a similar inflection point as the US in 60’s-70 and China in early 90’s with favorable demographics, willingness to spend etc. Following were the key drivers of growth in consumption in US & Chinese markets: • Increase in population pool in the 20-45 age brackets. • Rapid economic growth leading to increased per capita income. • Increased urbanization and movement of employment hubs towards cities and large towns. • Supply of quality real estate space. • Increased use of plastic money thereby augmenting product demand. Proposition Opportunity to invest in established and growing Retail sector currently pegged at USD 13 billion Sector Expertise • Among the top 5 organized value retailers in the country. • Commenced operations in August 2005 and already ramped up operations to 70 outlets spread over 0.5 Million sft. of retail space • Strong bargaining power with vendors at existing scale of operations. For more information, please contact: Aartee Roy, Vice President, KINDUZ Business Consulting Pvt. Ltd., Mobile: +91-9246185184 / 09246185184, Email: aartee.roy@kinduz.com
  • 3. • Hugely experienced management, with proven capabilities in establishing retail operations, ground up and scaling operations to achieve critical size and efficiencies. Promoters • Principal promoter of the company, a post graduate in commerce having over 20 years of experience in organized retailing. Has received “Retailer of the year” award in the year 2005 & is credited with pioneering and popularizing the “Supermarket” concept in India. • The CEO of the company, an engineering and MBA graduate has over 8 years of experience in organized retailing. Background and Company Overview • One of top 5 organized value retailers in the country. • Operating With 70 outlets spread over 0.5 Million sft of retail space • Professionally managed • Employee strength of more than 2000 personnel • More than 80% of projected revenues from Tier 2 cities and non major metros. Business Segments and Activities • Primary target customers – Middle class households with a disposable income ranging from Rs. 10,000 upwards per month for Supermarkets and from Rs. 25,000 upwards per month for Hypermarkets • Operates four formats viz. Super Center, Hypermarket, Supermarket and Cash & Carry Categories of merchandise offered includes • Kirana - daily grocery needs, including fresh fruits and vegetables. Broadly include all daily kitchen needs of an average household • FMCG – Personal care and daily FMCG needs • Consumer Durables and general merchandise – branded consumer durables such as TVs, refrigerators, washing machines and non branded/private label small household appliances • Apparels - all categories of apparels and accessories for men, women and children For more information, please contact: Aartee Roy, Vice President, KINDUZ Business Consulting Pvt. Ltd., Mobile: +91-9246185184 / 09246185184, Email: aartee.roy@kinduz.com
  • 4. • Food Court - The Company operates a food court at all the Hypermarkets and select Supermarkets under its own brand. The size and variety of offering under this category depends on the location and ranges from small chat stalls to full fledged restaurants. Current Operations. oft No. of Stores Square Feet Supermarket 55 115,817 Cash & Carry 1 60,000 Hypermarket 13 231,885 Super Center 1 100,000 Total 70 507,702 Infrastructure • 0.5 Million sq ft. of operational retail space • 70 outlets spread across 25 locations • Total capital expenditure incurred till date Rs. 1 Billion of which Equity of Rs 460 Million funded entirely by promoters • Achieved sales turnover of Rs. 678 million in FY07 • Achieved sales turnover of Rs. 1132 million in FY08 • Achieved sales turnover of Rs. 915 million in HY-I of FY09 Support Systems Experienced category managers for procurement and merchandise management Warehouse operations for marking, sorting, cleaning and packing as applicable to categories Control systems for accounting and monitoring of daily sale proceeds Location Selection A separate project management team, looking for the following while scouting a potential location • Proximity to residential complexes/ apartments, gated communities and townships • Extent of commercial/ shopping establishments • Average income levels of addressable population • Extent of competition For more information, please contact: Aartee Roy, Vice President, KINDUZ Business Consulting Pvt. Ltd., Mobile: +91-9246185184 / 09246185184, Email: aartee.roy@kinduz.com
  • 5. Overall Business Plan and Capital Requirement • To rollout 2.1 Million sft. of retail space over a period of two years o Spread across 6 states and o Covering a total of 330 outlets • Targeting a 65:35 mix between Hypermarkets and Supermarkets based on the area of retail space to be covered • Plans to rollout new outlets over the next 2 years Need for Capital Looking to raise private equity / investment to leverage current setup and meet requirements for planned expansion Transaction Overview • Play on India’s high growth organized retail space. • Hugely experienced management, with proven capabilities in, establishing retail operations, ground up and scaling operations to achieve critical size and efficiencies. Among the leading value retailers in the country • Current size and scale achieved even with existing capital constraints. Proven ability to acquire quality retail space at optimal costs For more information, please contact: Aartee Roy, Vice President, KINDUZ Business Consulting Pvt. Ltd., Mobile: +91-9246185184 / 09246185184, Email: aartee.roy@kinduz.com
  • 6. Profit and Loss Statement For more information, please contact: Aartee Roy, Vice President, KINDUZ Business Consulting Pvt. Ltd., Mobile: +91-9246185184 / 09246185184, Email: aartee.roy@kinduz.com
  • 7. Balance Sheet For more information, please contact: Aartee Roy, Vice President, KINDUZ Business Consulting Pvt. Ltd., Mobile: +91-9246185184 / 09246185184, Email: aartee.roy@kinduz.com

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