Homeraga is presenting a franchise opportunity for modular kitchens. Key points to address include the market opportunity, which is large and growing rapidly but still nascent. Homeraga will provide extensive training and ongoing support. The initial investment is around 10 lakhs for a display setup. Territories and branding strategy will be agreed upon mutually. Projected returns show payback in under 18 months based on reasonable sales targets and expenses. Homeraga is developing technology to streamline operations and focuses on building trust through an experienced team and strong human relationships.

1. Key points to be addressed in the presentation, there are the points which are important
from the target audience (Franchise) perspective. In the ultrafresh presentation some
points are addressed, however some key points like ROI etc are missing, so we need to
address the remaining points in our presentation
1: The Market Opportunity:
 TechNavio's analysts forecast the Modular Kitchen market in India to grow at a
CAGR of 42.93 percent over the period 2013-2018
 Modular Kitchen market in India is still at a nascent stage but has a tremendous
growth potential
 85 % of this market is currently unorganized and 15% of the market is only organized
 Wooden Furniture industry is 71000 Cr industry today
 Modular Kitchen industry is around 20000 Cr
 Modular kitchen industry is growing at a brisk pace of 40% per annum.
2:Training and Support. Homeraga will provide end to end support in all area, from initial
training, set up, opening support, ongoing support, marketing, technology, design, customer
service and complaints resolution and other.
3: Level of Investment. Other than the space for display inside your showroom, the initial
one time capital would be required for setting up the display, the amount would depend on
the size of display however initially we would start with around 10 lakhs. Franchisee would
be required to hire 1 designer, 1 Salesman, and make arrangement for initial measurement of
the site. No inventory to be carried as we would send custom made material as per design,
will we also send or arrange the installation team
4: Territory: Can be agreed on mutually based on targeted sales and level of investment
5: Branding. We at Homeraga have a vision to build most trusted and customer centric brand
in modular kitchen and associate products. We strive hard to protect the integrity of the brand
and ensure customer delight each and every time and expect the same from our channel
partners. We believe that brand symbolizes how the company is perceived by its customers
and the value they place on our business
6:Company History. Points touching on strong experience, financial stability, technical
capability, strong and able team, ambitious and growth orientation
7: Return On Investment: Projections should be based on realistic and reasonable
expectation.
 In our case intial capex is 10 Lakhs
 Monthly recurring expense or fixed cost, 1 designer, 1 sales man, small office expense
= 60,000 / month
 Say he sells 5 kitchens in a month @ 20% margin (50,000 per kitchen) = 2,50,000 /
month
 Net after excluding fixed expense = 1,90,000 / month
 So payback period is less than 7 months, however we should not over promise and
project initial payback period of 18 months or so, than accelerated returns

2. 8: Technologyand system support - We are inprocessof developingCRMsystem, salessupport
system,ordertrackingandapp basedfinancial reports.Which willmake yourbusinessstreamlined
and wouldenable youto focusyourtime onexpandingthe businessinsteadof gettingboggeddown
on operational issues
9: Proven Business Model: Anybody who takes up franchise looks for getting a proven
business model, so we have to convince that this model works and whatever promises we are
making are realistic
10: Human Relations and the team: - In any business human relationship (atleast in India)
is the key factor, people want to work with people who are trustable, honest and open. Have a
good network and good references, we have to emphasize this point with our experience and
network in building product space. And we have to add few more points to substantiate this