Market entry proposal for Fabindia In bay Area, California

Why Bay Area? Highest Asian/Indian concentration in the United States Density of professionals with great brand awareness of Fabindia

Why Bay Area? High disposable incomes Environmentally aware and socially responsible catchment

Asian distribution

Plan- 555 5 years, 5 stores, 5 million

5 Stores We feel just the Bay Area has the potential to justify 5 stores over the next 5 years. This would be achieved by catering not only to the Asians (low hanging fruit) but by also bringing in a niche relevant home offer for the white community. JC Penny has 9 stores and Pottery Barn has 8 stores, as of now 1 Pacific Commons Planned, launch store size 2500-3000sft. 1st preference Fremont – Pacific Commons Mall

Average Sales per sft ft - $27/month 5 million Acquire 10000- 15000sft in 5 years which generates upwards of $27/sft Average Sales per sft ft - $27/month

Current Market Scenario With most retailers struggling, there is high turnaround in the realty market and stores are available in desired locations. We feel Fabindia can bring in the required freshness, relevance and color in this ageing retail market

Proposed Location We are in talks with most retail realtors in bay area but our 1st preference is pacific commons in fremont

Catchment Demographics

Marketing, finance, Admin % to sale   1st year Monthly Year 1 Year 2 Year 3 Year 4 Year 5 Remarks Store count 1 2 3 4 5 Carpet Area 2500 5000 7500 10000 12500 Rent & NNN/sft $6 $72 $84 5% escalation every year Footfall/day 60 125 187 249 312 No of bills/day 30 62 94 156 Average Bill Value $70 $73.50 $77 $81 $85 Target Sales/sft. $25 $28 $29 $30 $32 Sales $62,500 $750,000 $1,650,000 $2,598,750 $3,638,250 $4,775,203 10% escalation in like for like sales Post freight GP% 65% 2.5 times of India price, same as online Gross Profit on LP $40,625 $487,500 $1,072,500 $1,689,188 $2,364,863 $3,103,882 Net profit % 11% 16% 17% Rent % to sale 24% 23% Personnel % to sale 19% 18% Marketing, finance, Admin % to sale 9% 6% 7% Investment 200000 230000 253000 278300 306130 336743 10% escalation in new store expense ROI 42% 37% 54% 57% 55%

Who we are Core team consists of people with varied experiences and expertise,  spanning telecom, bio tech and fast food franchise.   Members have been living in bay area for over 2 decades and are very active in the local community. All are United States citizens Ranmeet, a graduate of fine arts, successfully ran a fast food franchise for over a decade in a prime bay area location.  She hails from a business family and her key strength is operational efficiency.  She implemented workflows which allowed lunches to be delivered (1000+ student lunches in a matter of 3 hours) for an entire school district.  She managed a 15+ team of full and part time employees.  A go getter, she never hesitates to roll up her sleeves and get in the trenches as situation demands.   More recently she has been promoting road shows with designer Leena-Ashima across major cities in continental United States.  Her work with Leena-Ashima had a direct impact in increasing revenues 300%.  Ravi, a 25 year veteran of supply chain operations, is part of the senior management in a bio tech conglomerate with key responsibilities that include managing NPI (new product introductions), setting up supply chain from grounds up, supplier evaluations and qualifications, ensuring service requirements and managing customer escalations.   Ravi’s education is Masters in Chemistry along with various certifications in supply chain management.  Arun, is part of the senior management in a world leading telecom organization overseeing next generation of network orchestration.  He is a coach for Team Asha, a non-profit organization which trains individuals for marathons while raising money for under privileged children in India.

Why us? Lifelong loyal customers - live and breathe Fabindia! 555 plan….bold vision to have 5 stores in 5 years with 5 million in annual revenues. Over 2 decades of bay area residency Strong financial standing and credit worthiness Active members of Indian community.  Huge network!

Asks As is evident from the P&L projections, post tax returns will be just about market returns on other instruments. We therefore seek support in the below terms: Waiver of Licensee fee No additional share from revenue Discount from Fabindia MRP of 30% rather than 20% Exclusivity for Bay Area – as long as we stay on track with the projected plan First Right of Refusal for any other location in California Fabindia.com to support in generating visibility and diverting traffic/orders to US stores Mandate from Fabindia that we can scout locations for the store – something the realtors are asking for

Thank You