GROWTH IN CONSUMER CONSUMPTION Consumption will grow 4x over 2005 – Urban India will account for more than two-thirds of this growth as urban household income will grow 3.3x over the same period. Aggregate annual consumption (Bln, Indian rupees, 2000) Source: MGI India Consumer Demand Model, v1.0

2.9% 6.1% GROWTH IN CONSUMER CONSUMPTION Consumption will grow 4x over 2005 – Urban India will account for more than two-thirds of this growth as urban household income will grow 3.3x over the same period. Aggregate consumption per Urban Household (Indian rupees, 2000) Source: MGI India Consumer Demand Model, v1.0

Bangalore Hyderabad, Mumbai Kolkata Delhi Chennai Ahmadabad Pune Surat Kanpur Nagpur Lucknow Jaipur Kochi Vadodara Indore Tiruchirapalli Amritsar Faridabad Aurangabad Allahabad Gwalior Jodhpur Raipur Bhubaneswar Rohtak Rurkela Udaipur Anand Faizabad Hassan Shimla Roorkee Shillong * Population for each city estimated using the average urban household size Source: The Great Indian Middle Class, NCAER; MGI India Consumer Demand Model (v1.0); MGI analysis Ludhiana Madurai Bhopal Patna Nasik, Agra Varanasi Rajkot 8 cities Population > 4 million Tier 1 Major cities 26 cities Population > 1 million Tier 2 Mainstream cities 33 cities Population > 500,000 Tier 3 Climbers 33 cities 5,094 towns Tier 4 Large towns URBAN CLASSIFICATION AND FOCUS OF ORGANIZED RETAIL Urban areas are classified into four types depending on population. Traditionally, organized retail chains focus on tier 1, 2 and tier 3 (limited). There is a clear gap when it comes to Tier 4 cities.

Note: Disposable Income estimated using income distribution of households from NCAER and model estimates of average household income; Figures are rounded to the nearest integer and may not add up to 100% Source: The Great Indian Middle Class, NCAER; MGI India Consumer Demand Model, v1.0; MGI analysis 40% of total disposable income is generated in Tier 4 cities Total Households (million, (share)) Average income per household (1000, Indian Rupees) Total disposable income (Bin, Indian Rupees (share)) POTENTIAL IN TIER 4 CITIES

This leaves a huge unmet demand in serving the needs of affluent customers in smaller towns. SUMMARY OF OPPORTUNITY  Existing ‘mom-and-pop’ stores are not able to meet the demands of affluent customers in towns.  Organized retail chains are yet to penetrate these towns.  Ecommerce is not yet a viable channel given that customers are not tech savvy, psychological barriers and limited infrastructure.

The key focus of FabMart by MRPL is to address the needs of affluent customers in Tier 3 and 4 cities. FABMART – TARGET SEGMENT Focus of FabMart by MRPL Deprived Aspirers Seekers Strivers Globals Tier 1Tier 2Tier 3Tier 4 Product availability – A wide range of products and services should be available. Convenience – The process of shopping should be convenient and fun. Confidence – Customer should trust the seller and the brand. Operational control – A high quality of customer experience needs to be ensured with a tightly managed service delivery model. Lean & scalable model – Since volumes will be low in any given town, the model should be lean but highly scalable Key success factors to serve affluent customers in towns FabMart by MRPL by MRPL Organized retail

COMPETITIVE ANALYSIS The typical mom-and-pop store serving customers in the town Large format retail stores that are occasionally seen in some tier 3/4 towns E-commerce chains such as Flipkart, Myntra etc. Customers going to the nearest city to buy goods that are not normally available Comments Value proposition to the customer Comparative Threat Pros: Convenience Trust Instant gratification Cons: Limited variety May not be the best deals Pros: Variety and good deals Cons: Various links in the value chain (from a small town point of view) are not yet mature i.e. Technology, Logistics, Payments etc., Trust deficit Familiarity with online shopping required No touch-and-feel experience Pros: All the benefits of a typical LFR store Cons: Involves prior planning and travel Returns are not possible if the city is located at a distance Low-Medium LowLow-MediumHigh Pros: Convenience Trust Instant gratification Variety and deals Cons: Is not present in most of the target towns Mom & Pop storesLarge format retail E-commerce Shopping from adjacent cities In the target towns

ABOUT FABMART BY MRPL FabMart by MRPL aims to simplify shopping for customers in smaller towns in India while offering them an unmatched online shopping experience. We are the only company in India that is exclusively focused on catering to customers in small towns by bringing in a wide range of products offered by a multitude of brands. We want to combine our industry expertise, technology know how to offer our customer in towns two things: Fastest and best e-commerce experience, and Timely delivery in the towns. The Team Alphonse Reddy Founder & CEO, 12 years industry experience spanning sales, marketing, strategy and finance. BE (BITS, Pilani) and MBA (INSEAD Business School) Investors/Advisory Team Hemu Javeri Executive Director, Forum Synergies, a $150m PE fund. Previously CEO of Madura Garments, Nike and Home Solutions. Anand Morzaria CEO of Pennywise Solutions. MSc Finance (BITS, Pilani) Ashish Agarwal Investment Director, Navis Capital, a $3b PE fund. MBA (INSEAD Business School)