An ASSIGNMENT ON

PROMART RETALINING PVT. LTD

INSTITUTE OF MANAGEMENT STUDIES KURUKSHETRA UNIVERSITY KURUKSHETRA

SUBMITTED TO DR. RAJAN SHARMA (LECTURER, IMS)

SUBMITTED BY ASHISH SONI 9TH SEMESTER ROLL NO-35

INTRODUCTION OF PROMART RETAILING

Promart is a revolutionary value format lifestyle concept in India. Its target retail is for smaller towns across India who has limited access to fashion. It is a value format retail chain of stores offering discounts schemes from 25%60% all year round. Launched by Provogue India, the chain is taken over by Apple Group of Companies and VEMB Lifestyle Pvt. Ltd where the two groups have come together to buy out the assets and Intellectual property (IP) of the brand. The format provides a platform for brands to offload their stocks at a discount without diluting its brand image. The retail chain provides an opportunity to buy smart with affordability all year round.

ORGANISATIOAL PROFILE
Promart Retail is a one-stop shop for peoples fashion needs providing them the convenience to shop at their door step. With a fully air-conditioned environment and refreshing ambience, this destination caters to those seeking popular brands at a bargain price. Promart has tied up recently with Franchise India for 100 franchisees. Promart has a presence across 14 states and 2 union territories. The states where Promart is prevalent are Rajasthan, Uttar Pradesh, Maharashtra, Gujarat, Andhra Pradesh, Madhya Pradesh, Punjab, Chhattisgarh, Uttarakhand, Haryana, Karnataka, Goa and union territories like Delhi and Silvasa.

FACTS

A fully air-conditioned environment and with a fresh ambience spaced in a 1000 to 5000 sq ft. carpet area

The stores retails to all those looking at national and international brands at discounts

The stores are located at prominent malls, high streets & strategically selected location

The price range products available from Rs. 49/- to Rs. 1899/- and consumers can now enjoy a discount of upto 60% on the products purchased Promart provides a complete range of clothing, footwear, & accessories across all categories (Men, Ladies & Kids).

Our Expansion Plans

Promart opened its first store in Ahmedabad in Nov11 inaugurated by Bollywood diva Kangana Ranaut, followed by 2 stores at Baroda, Rajkot, Vapi, Mumbai, Aurangabad, Anand, Jodhpur, Indore A multi brand retail chain available at national level, targeting 100 owned stores and 50 franchised stores by Dec 2013 Moving forward, Promart plans to expand its operations in Gujarat, Maharashtra, MP, Chhattisgarh, Rajasthan, Punjab, Haryana, UP, Goa, Karnataka, Uttranchal & AP in the coming six months as part of their overall growth strategy. Promart invites Franchisee to partner with them in this value format retail chain of stores

SEED
A multi-brand, multi-location discount chain and value format. National labels will be sold to target the discerning, brand conscious young buyers. Discounts range between 25% to a whopping 60%. Fully air conditioned shopping environment and an international, rejuvenating ambience spaced in a 1000 to 5000 sq. feet carpet area. Located at prominent malls, high streets and strategically selected stores.

Business Overview
Currently, we have successfully placed 80+ fully functional stores along with 9 franchises pan India. We have also signed an agreement with Franchise India Holdings for a 100 store plan by this fiscal and the company is very much geared up to achieve this number within the stipulated timeframe. We aim to deliver a total of 100 stores by end of this CY2013. Our expansion plans have over 13 states marked in it only in Tier II to Tier VI cities. Our aim to enter a certain state, expand in the respective state, create a brand recall value and then move further to other regions across country has worked well for us. As of now, we have a pan India presence in 14 states and 2 union territories. We plan to open 200 stores by May, 2014 by achieving a turnover of Rs. 495 crore this year. Also with our foray into the online domain, we have already built a huge fan base.

Target
Its just been almost two years since the takeover of Promart from Provogue in 2011. We started off with one store in 2011 and currently boast of 80+ stores in just a span of a year and half. By 2014, we want Promart to have at least 200 stores. We currently hold staff strength of a 100 but we are looking at closing it to 600 by end of 2014.

Investment plans
Post initial investments of ~Rs75 crore, we will be pumping in around Rs. 100 crore in 2014 for expanding operations. The inflow of finances will take place through mainly internal company accruals. Promart was a integral part of Provogue group which was taken over by us in 2011... from 1 store takeover in Nov 2011 to 70 + (Operational & WIP) Stores we are the one of the leaders in Value Fashion Retail.. we have been awarded the 13th Edition "Most Admired Value Fashion Retailer of 2012 by IFA". Promart is available across 12 States & 2 Union Territories

Sales and turnover target

Promart is looking at a net margin of 6-7% and a Rs. 495 crore turnover next year.

VISION
Most preferred fashion destination across all 1 lac+ population towns in India.

MISSION
Celebrate brands at surprising prices 365 days in clothing, footwear and accessories in all towns.

PROMOTERS

Ashish Garg, Managing Director Money Man, Mind behind Promart. 36 year old dynamic, young entrepreneur. Also, actively involved in the business of Apple Group of Companies. Propels the growth of Promart with his astute eye over financial management as well as the immense experience of successfully running various businesses such as steel, coal mining, textiles, insurance and infrastructure.

Punit Agarwal Director & Chief Executive Officer Captain of Logistics & Inventory. In a mere Ten years, Punit Agarwals visionary foresight and the sheer will to achieve has led him to conquer the many milestones in his early 30s. Also, New Markets Identifier. Moving away from his family business, he founded VEMB Lifestyle Pvt. Ltd. as an independent business entity, which is now a diversified group engaged in various opportunities in lifestyle. Heart behind Promart. Leads by example.

Retail landscape
INDIAN RETAIL INDUSTRY Organized Retail 3000K CRORES Footwear, Clothing, Accessories

239K Cr 8%

89K Cr 37%

According to Consultants McKinsey & Co. research shows that almost 40% of branded goods are sold at a discounted rate (below MRP). Rs. 11,880 cores pegged as market potential in this segment as on 2006 and only growing. Indian retail industry is 5th largest in the world.

KEY RETAILS GROWTH DRIVERS

Favourable demographics

POSITIVE OF FDI IN RETAIL

Organized retail will get a significant hike. Shopping will be a year round activity. Indian consumer will be pampered with the choicest brands. Educated consumer (on styles, fits, price, brands) is a more demanding consumer. Customer service will improve and customer will expect a superior retail experience.

THE INDIAN CONSUMERS

Large and growing middle class Median age of the Indian Consumer is 24 Easy availability of cheap credit Aspirational Lifestyle Brand Conscious Wants great value for money (premium brands for less) Wants a quality shopping experience High exposure to advertisements offers, styles, brands etc Celebrates success at all moments/occasions etc

SWOT ANALSIS

STRENGTH 365 days discount National brands and international labels Mass customer base Minimum 25% discount In-house label to fill in missing gaps and trends

WEAKNESS
Competition from local brands Tailor made clothing

OPPURTUNITIES
Approach brands to sell last seasons stock More outlets per city Tap increased disposable incomes Growing demands for branded items FDI opportunity 1 lac+ population towns

THREATS
Increase in government taxes Brand factory outlets Other large format stores

REGIONAL TEAM ADVANTAGE

Facilitate buying of brands that have a good market share in that zone. Better media rates Smoother execution of schemes or offers Better understanding of the zone Decentralize decision making Better communication to customers

Franchise Invited
No deposit Margin up to 40% 1 print ad during launch Stock Correction 10% of purchase Price de-regulation facility Franchisee fee Rs 51000/- only Investment on interiors 700-1000 sq.ft. Marketing support Fixture sourcing/Installation support

BIBLIOGRAPHY
WWW.promart.in www.promartretailing .com www.indiaretaling.com www.retailopedia.com www.wikipedia.com