ASHIKA GROUP OF COMPANIES

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Phebe Jennings
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1 ASHIKA GROUP OF COMPANIES ASHIKA GROUP PROFILE One of the best known names in ladies ethnic wear market. Strong foundation in the business since One of the leading manufacturers and traders in the segment. Suppliers to pan India retail chain stores. World class manufacturing facilities at Dahisar & Surat. Branches spread in key cities like Surat, Kolkata & Varanasi. Aggressive expansion plans in retail & e-commerce sector. GROUP COMPANIES & DIVISIONS Ashika Sarees Ltd. Binod Kumar & Co. Pvt Ltd. Ashika Textile India Pvt. Ltd. Ashika Fashionwear. New Hind Silk House. Ashoka Selection. Saurabh Prints. CHANNELS OF PRODUCT OFFERING Direct Retailing Franchisee Stores Sales & Distribution Wholesale throughout India through excellent network of dealers & retailers Export to countries like United Kingdom, Unites States of America, Sweden, Australia, Mauritius, Malaysia, South Africa, Kuwait and many others. Retailing across the internet worldwide, through more than 20 websites.

2 E-COMMERCE PRESENCE MARKET PRESENCE C.O.C.O & FRANCHISE STORES Belgaum, Rewari, Latur, Jabalpur, Mumbai, Cuttack, Bhubaneshwar, Indore, Junagad, Malegaon, Kishangarh, Shivpuri, Rohtak and many more. ABOUT ASHIKA FASHIONWEAR Innovative retail format, selling ladies ethnic wear and accessories. Product mix consists of sarees, salwar suits, kurtis and accessories like handbags & stoles Strong advertising and sales promotion activities in various mass media like newspapers, radio, mobile advertising, internet marketing and press releases. Trained and experienced salespersons and store managers managing the current stores. Strong 40 year old brand among masses, mainly in Tier II and Tier III cities and towns. Excellent value offering in terms of stock. Human Resource training offered.

3 OPPORTUNITY INDIA The total consumer spend in the country in was Rs billion at current prices, and a large part of this was accounted by the 300 million middle class, the real consumers. Reports indicate that these numbers could swell past 600 million by 2010 considered sufficient to establish India as one of the largest consumer markets of the world. RETAILING IN INDIA Retail sales stands at Rs billion, and is growing by 5 percent annually. Organized retail Rs. 350 billion constitutes about 3.4 percent of retail sales, but is growing at 30 percent each year. Organized retail is projected to cross Rs billion mark by Rs. 200 billion investment in the pipeline. Overwhelming acceptance of modern retail formats. CHANGING CONSUMER LIFESTYLE AND PREFERENCES ENCES Increased brand consciousness Design and quality acquiring significance Increase in number of working women Lifestyle branding Market for niche segments Increased credit friendliness Increased effort to feel and look good Influence of international travel and media has helped in propagating fashion consciousness Willingness to experiment Increased disposable income Easier and uninhibited acceptance of luxury

4 THE APPAREL MARKET SCENARIO Product segment wise, menswear has maximum share of the overall apparel market (36.9 percent) in value terms, followed by women s wear (32.1 percent), kids wear, uniforms and unisex apparel in that order. share of major categories in India's Apparel Market men's shirts 22% 16% 9% men's trousers women's ethnic wear sarees 9% 14% 7% 15% 8% innerwear kids wear uniforms other categories Sarees, with 15 percent of the overall market share in value terms, is the second largest category followed by kids wear and uniforms. WOMENSWEAR There are clear signs of revolutionary changes taking place in this category. Ethnic wear still controls three-fourths of women s apparel market and contrary to initial indications, the craze for designer sarees is being reinforced as a fashion statement, especially for party and other occasions. SAREES There has been excellent value appreciation in this garment category with as high as 46 percent growth in the super premium range where volumes also increased 24 percent, over The low end witnessed 10 percent value appreciation. Growth prospects therefore are higher.

5 SALWAR KAMEEZ-DUPATTA The women s ethnic wear category which mainly comprises salwar kameez, is clearly moving up the value chain with the economy to super premium ranges experiencing high appreciation in value around 18 percent in the economy and mid ranges, and percent in the premium and super premium ranges.

6 ASHIKA FASHIONWEAR FRANCHISE DOCUMENT FOR EXCLUSIVE BRAND OUTLET The company offers franchises to potential applicants based on the following guidelines. These are common to all formats offered for franchise - LOCATION, DESIGN & INTERIORS The store s carpet area has to be a minimum of 450 sq ft., preferably on a high street. The showroom design will be provided by the company, on the basis of which the franchisee will undergo the furniture and civil work expenditure. The net cost of store interiors and furniture will range from /- per sqft, which will cover flooring, ceiling, air conditioning, electrical fittings & wiring, POP work, painting, carpentry. The company officials shall assess the location through a personal visit, on several parameters. STOCK & SECURITY DEPOSIT The company will supply the stock on consignment basis, and will fix the MRP before dispatching the goods to the store. The franchise will get the stock against an interest free security deposit. The company will replenish stock based on sale reports and internal discussions. The franchisee needs to send his senior salesperson once every 15 days / 1 month to the company warehouse for stock selection as per their needs. The company will take back unsold stock, as it may be required at other store locations. Though the company s decision on this depends on the situation at that point of time, and is in congruence with the franchisee. The stock supplied to the franchisee will bear MRP fixed by the company.

7 MINIMUM GUARANTEE & OPERATIONS The agreement between both parties will be on a 3yrs+3yrs basis, on mutual agreement, with a lock-in period of 1 year. The franchise will deposit sales proceeds on a daily basis to the company bank account. The company will provide a Minimum Guarantee to the franchisee, based upon the store carpet area. Franchisee gets MG or commission, whichever is higher. The company will bear insurance expenditure only on the stock. The insurance expenditure of the store will be borne by the franchisee. Tailoring facility for the customers will be provided by the franchisee. The company will offer 31% as franchisee margin. In times of discount sale or such schemes, the discount offered will be shared by both sides equally. ADVERTISING & PROMOTION The company shall undertake marketing, sales promotions and advertising activities from time to time. The franchisee is entitled to spend 1% of the sales turnover on sales promotion locally, at his end. The company will provide the design for the main signage for the store, the cost of which will be borne by the company. The company will provide plastic packing material and shopping bags to the franchisee, depending on the sale. The franchisee will have to bear 50% cost of the same. (*) Discounts offered by the franchisee in non-scheme cases are to be borne by him. STAFF & SOFTWARE/HARDWARE The Point Of Sale software license cost will be borne by the company, but the hardware will be provided by and the cost borne by the franchisee. The hardware will be as per the configuration provided by the software developer. Franchisee will appoint expert salesperson and store manager. The company will provide full training and support to the store owner and his employees.

8 (*) For eg: We have 3 sizes of shopping bags: Small size: Meant for blouse pieces Rs. 1 Medium size: Meant for 1-2 items Rs. 2 Large size: Meant for more than 3 items Rs. 3 The above mentioned cost is 50% of the actual cost i.e. Rs.2, Rs. 4 and Rs. 6 respectively. Boxes for gift packing can be made available if requested. The same will come at a cost of Rs. 7 per box, the actual cost for which is Rs. 14 Jute bags, bearing Ashika Fashionwear logo can be made available if requested. The same will come at a cost of Rs. 10 per bag, the actual cost for which is Rs. 20

9 FRANCHISE APPLICANT ASSESSMENT FORM To help us evaluate your proposal in a fair manner, it is requested that you furnish all these details. The information provided by you will be kept strictly confidential. Name: Address: Age: Marital status: Phone: Office: Residential: Mobile: Educational Qualification: Graduate: Post graduate: (please specify the stream of education; eg Bcom, HSC etc) Current Business/Occupation: Previous work experience (in years): If you have worked as an employee, please let us know the following: NAME OF EMPLOYER DURATION REASON FOR LEAVING Have you taken a franchise before? If yes, which brand and industry?

10 Are you handling any franchise at present? If yes, which brand and industry? Do you have existing ground floor retail space to conduct business? If yes, specify the shop address and carpet area in sq.ft. Will the franchise be owned and operated by yourself or a group or another person appointed by you? Preliminary Financial Disclosure What is your source of investment for this business? Owned Financed / Loan For whom do you want to start this business? How long will you take to start the business? 1 month 3 months 6 months Investment ent capacity in our franchise model

11 An estimate calculation of yearly profit sq.ft. SALES per day on average * 365 days (working days are 365) franchisee 31% on MRP sales less: fixed 13% Net return initial investment required return on investment is 83% MONTHLY EXPENDITURE TOTAL SALES * 30 days Rent Electicity 7000 staff ( 1 cashier/store manager, 2 Sr. salesmen, 1 Jr. salesmen, 1 helpers) tele phone 1000 Miscellaneous 3000 approx 13% INVESTMENT REQUIRED Security Deposit Computer hardware with peripherals Shop Interiors (1000 per sq.ft.) TOTAL MINIMUM GUARANTEE The company provides a Minimum Guarantee of 50000/- monthly The company requires a minimum sale of 10000/- per day or /- per month

12 An estimate calculation of yearly profit sq.ft. SALES per day on average * 365 days (working days are 365) franchisee 31% on MRP sales less: fixed 14% net return initial investment required return on investment is 80% MONTHLY EXPENDITURE TOTAL SALES * 30 days Rent Electicity staff ( 1 cashier/store manager, 2 Sr. salesmen, 3 Jr. salesmen, 2 helpers) tele phone 1000 Miscellaneous 4000 approx 14% of sales INVESTMENT REQUIRED Security Deposit Computer hardware with peripherals Shop Interiors (900 per sq.ft.) MINIMUM GUARANTEE The company provides a Minimum Guarantee of 75000/- monthly The company requires a minimum sale of 15000/- per day or /- per month

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