Fabindia in Sri Lanka

Partner Profile The partners are Softlogic a 25 year old conglomerate with a turnover of 330million USD spanning healthcare, retail, financial services, real estate and automobiles. Their retail arm runs under the name ODEL and presently manages – 380000sft, 60 brands, 110million USD of apparel retail. 70 people buying team and 540 frontline staff. They have anchor tenant positions in all upcoming malls.

Opportunity Potential Goa Size:3702sq.km Population:3 million Per Capita:$4700 Tourist inflow:5 million+ 2016-17 Fabindia stores : 7 Total turnover: INR 210million LKR 525million Total carpet area:21000sft SPF/month:INR833/sft, LKR2082/sft Sri Lanka Size:65000 sq.km Population:21 million Per Capita:$4000 Tourist inflow:2million + Projected – 1st year Store count: 3 in Colombo Total carpet area: 5000sft SPF/month: LKR4000/sft Total Annual Revenue: LKR240million Kandy & Galle can be explored later

Jawatte Road & AC2 intersection 3000 108 BUSINESS PROJECTION Carpet Area Return/sq.ft/month LKR /year (million) Jawatte Road & AC2 intersection 3000 108 Odel Promenade 1000 5000 60 Colombo City Center/Shangri La TOTAL 12 MONTHS   228 CAPEX LKR million Fitout @ INR4000/sft 50 Stock @ 3 months 22 Signup fee @ 40000 USD 6 Total CAPEX 78 ROI @ 50% GP & 20% EBITDA 58%

Terms One time signup fee of USD20000/- , payable at the time of execution of the agreement Franchise fee – 5% of net sales will be applicable from 13th month of operation Term of agreement – 5 years from the date of execution Locations in first 12months of operation  – 3 in Colombo Year on year growth to be targeted at 15% and new stores to be considered once SPF targets are met Minimum four staff to manage 1000sft store and minimum 1 staff/500sft for larger stores Stock is shipped FOB Delhi – 100% payment to be received before handover to shipping agents. Damages/Shortages if any need to be confirmed within 72 hrs of receiving the stock Minimum 3 months of stock cover to be maintained basis sales targets. Detailed category mix and planogram for each location to be agreed with Fabindia. Stock analysis will be undertaken by Fabindia team and reorders will be proposed beginning of every month. VM guidelines will be shared by Fabindia on a monthly basis Stock will be priced to ensure 50% opening GP. Pricing margins will not be applicable on per piece basis but will apply on a shipment basis. Hence every consignment shipped will be priced to deliver 50% GP. Barcodes will be placed from India with the LKR price. Any discounting planned will need to be agreed with Fabindia team IT systems being used need to be assessed by our IT team to ensure required reports can be generated All marketing collateral to be used needs to be approved by our communications team Launch Timeline – 1st September in order to catch the Diwali sales

Category Mix Flagship Contr. Premium Ethnic Long Kurtas 6% Churidars Saris 5% Fusion Tunics 56% 75% Tops Skirts Pallazos Dresses Stoles Accessories Totes 10% 15% Clutches Sling Bags Jewellery Jutties Mens Busshirts 2% Kids Girls dresses Girls lehnga cholis Home Bedcovers Cushion covers Quilts Giftware Gift boxes 0.50% Table Linen Floor Covering Personal Care 3% Organic Food Category Mix

Odel

Odel Promenade

Odel Promenade

Independence Arcade Tommy Hillfiger Charles & Keith Fossil Hugo Boss Burger King

Airport - departures

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