when you earn lots of money… you want to spend it
TRANSCRIPT
When you earn lots of money…
you WANT TO SPEND IT.
And when you have more money than you can spend… You INVEST IT.
THE PRESENTATION TODAY
Creative ways of making consumers WANT TO SPEND their hard earned money.
That creates newer, bigger, better INVESTMENT opportunities.
OUR BUSINESS PHILOSOPHY
Effectively align the changing CONSUMPTION needs and impulses of the INDIAN CONSUMER to the growth & profit motivation requirements of our BUSINESS PARTNERS & INVESTORS.
… SO THAT TOGETHER WE BUILD THE CREATIVE ECONOMY
THE CREATIVE ECONOMY
CREATIVE/ INNOVATIVE avenues for CONSUMERS to want to spend their money
BETTER INVESTMENT/ BUSINESS opportunities for our PARTNERS & INVESTORS
CONSUMPTION DEVELOPMENT=
AND CHANGE WILL DRIVE THIS NEW CREATIVE ECONOMY
CHANGE in the way consumers spend their money.
CHANGE in the way, investors have traditionally invested money.
AND MOST IMPORTANTLY CHANGE THE WAY WE DESIGN & MANAGE OUR BUSINESS
CHANGE
Humne tho apna NAAM hi BADAL diya HAI!
not just a new name
but a new way of thinking
because the India of today, will not be the India of tomorrow.
new thinkingnew ideas
NEW IDEAS FOR INDIA TOMORROW
CONSUMPTION IDEAS INVESTMENT IDEAS
WHO?FUTURE RETAIL
Everyone that constitutes consuming India
WHAT?FUTURE BRANDS
Identify, mentor, invest and grow
INDIA centric brands
WHEN?FUTURE LOGISTICS
Plan and implement all our ideas so that they reach every consumer/ every corner of INDIA
WHERE?FUTURE SPACES
Creating property & public retail infrastructure everywhere in India
HOW?FUTURE CAPITAL
Property, Brands, Insurance & most importantly easy access to money for consumers
WHY?FUTURE MEDIA
Out of Home & Point of sale media that will create trends & consumer spending
CONSUMPTION DEVELOPMENT=
Consumption Ideas- IN RETAIL
The Future Group will have a dominant presence in:
EVERY retail format
(Hypermarket, Supermarket, Market City, Department store, Seamless Mall & e-Tailing)
a)
EVERY consuming category.
(Food, Fashion, Home, General Merchandise, Communication, Leisure & Entertainment, Health, Beauty & Wellness)
b)
For EVERY kind of customer
(Men, Women, Youth, Kids, Value, Value Lifestyle, Lifestyle, Bottom of Pyramid)
c)
EVERY where in INDIA
(Urban, Suburban, Semi-Urban, Metro, class I Towns, class II Towns)
d)
EVERY retail formata)
Consumption & Investment ideas for India
CONSUMPTION IDEAS INVESTMENT IDEAS
WHO?FUTURE RETAIL
Everyone that constitutes consuming India
WHAT?FUTURE BRANDS
Identify, mentor, invest and grow
INDIA centric brands
WHEN?FUTURE LOGISTICS
Plan and implement all our ideas so that they reach every consumer/ every corner of INDIA
WHERE?FUTURE SPACES
Creating property & public retail infrastructure everywhere in India
HOW?FUTURE CAPITAL
Property, Brands, Insurance & most importantly any access to money for consumers
WHY?FUTURE MEDIA
Out of Home & Print of sale media that will create trends & consumer spending
CONSUMPTION DEVELOPMENT=
WHO?FUTURE RETAIL
Everyone that constitutes consuming India
Consumption Ideas- IN RETAIL
LINE OF BUSINESS
FASHION
FOOD
HEALTH, BEAUTY & WELLNESS
HOME
COMMUNICATIONS
FINANCIALPRODUCTS
GENERALMERCHANDISE
LEISURE &ENTERTAINMENT
LIFESTYLE
&
VALUE
New position, New Identity, New look, Fresh Merchandise… YOUNG BRAND
20 stores currently, to increase to 42 by 2007 and 80 by 2010
0.5 million sft currently, to increase to 1.1 m sft by 2007 and 2.0 m sft by 2010
Average sales per sft at Rs 7500
Can generate a sales of Rs 1,500 cr by 2010
Expected Gross margin – 45%
Expected EBIDTA – 14 - 16%
Expected Stock turns – 5.5 to 6x
Has become the ‘HEART’ of the city, wherever its launched
OPENING SHORTLY!!!
3 stores currently, to increase to 9 by 2007 and 22 by 2010
0.5 million sft currently, to increase to 1.35 m sft by 2007 and 3.5 m sft by 2010
Average sales per sft at Rs 7500
Can generate a sales of Rs 2,300 cr by 2010
Expected Gross margin – 28%
Expected EBIDTA – 12 - 15%
Expected Stock turns – 8-10 x
On the 26th of January India celebrates Republic Day… and the ‘SABSE SASTA DIN’
A Hypermarket, Destination store a supermarket, a neighborhood mall a high street and the BAZAAR all rolled into one.
Change Image
27 stores currently, to increase to 75 by 2007 and 225 by 2010
1.25 million sft currently, to increase to 3.30 m sft by 2007 and 9.0 m sft by 2010
Average sales per sft at Rs 8,500
Can generate a sales of Rs 7,650 cr by 2010
Expected Gross margin – 24%
Expected EBIDTA – 7 - 9%
Expected Stock turns – 7 x
Fast moving fashion, for the masses
4 stores currently, to increase to 15 by 2007 and 80 by 2010
0.08 million sft currently, to increase to 0.15 m sft by 2007 and 1.0 m sft by 2010
Average sales per sft at Rs 8,000
Can generate a sales of Rs 770 cr by 2010
Expected Gross margin – 41%
Expected EBIDTA – 12%
Expected Stock turns – 6 x
- BEST BRANDS + BEST BARGAINS
- Discounted shopping. Discounted brands ENHANCED SHOPPING EXPERIENCE
- Discounted shopping. Discounted brands ENHANCED SHOPPING EXPERIENCE
3 by 2007 and 20 by 2010
0.25 m sft by 2007 and 1.o m sft by 2010
Average sales per sft at Rs 13,000
Can generate a sales of Rs 1300 cr by 2010
Expected Gross margin – 28%
Expected EBIDTA – 8%
Expected Stock turns – 10 x
India’s destination for fresh food & fresh ideas.
43 stores currently, to increase to 110 by 2007 and 250 by 2010
0.38 million sft currently, to increase to 1.2 m sft by 2007 and 2.50 m sft by 2010
Average sales per sft at Rs 14,000
Can generate a sales of Rs 3,250 cr by 2010
Expected Gross margin – 15%
Expected EBIDTA – 6%
Expected Stock turns – 25 x
JOINT VENTURES
A shopping basket of the world’s best Retail Formats/ Brands
PLANET RETAIL – 49%
58 stores currently, to increase to 128 by 2007 and 400 by 2010
0.13 million sft currently, to increase to 0.39 m sft by 2007 and 1.2 m sft by 2010
Average sales per sft at Rs 10,500
Can generate a sales of Rs 1,250 cr by 2010
Expected Gross margin – 40%
Expected EBIDTA – 7%
Expected Stock turns – 2 x
– – 50%50%
The brand to progress from what children wear to where children shop
10 stores currently, to increase to 83 by 2007 and 180 by 2010
Average sales per sft at Rs 6,700
Can generate a sales of Rs 120 cr by 2010
Expected Gross margin – 53%
Expected EBIDTA – 9%
Expected Stock turns – 3 x
– – 51%51%
Creating trends, fashion and the desire to posess multiple footwear – for multiple occasions
1 store currently, to increase to 15 by 2007 and 60 by 2010
Average sales per sft at Rs 7,500
Can generate a sales of Rs 480 cr by 2010
Expected Gross margin – 35%
Expected EBIDTA – 6 - 8%
Expected Stock turns – 5 x
Plus size store…
Plus size returns
10 stores currently, to increase to 50 by 2007 and 125 by 2010
0.01 million sft currently, to increase to 0.04 m sft by 2007 and 0.10 m sft by 2010
Average sales per sft at Rs 10,000
Can generate a sales of Rs 100 cr by 2010
Expected Gross margin – 60%
Expected EBIDTA – 17%
Expected Stock turns – 5 x
The romance of flying… the exhilaration of flying… AND FASHION ACCESSORIES FOR A GENERATION THAT HAS JUST DISCOVERED AIR TRAVEL
10 stores currently, to increase to 50 by 2007 and 125 by 2010
0.01 million sft currently, to increase to 0.04 m sft by 2007 and 0.10 m sft by 2010
Average sales per sft at Rs 10,000
Can generate a sales of Rs 100 cr by 2010
Expected Gross margin – 32%
Expected EBIDTA – 12%
Expected Stock turns – 5 x
Democracy in books, music, stationery and gifts
3 stores currently, to increase to 29 by 2007 and 169 by 2010
0.01 million sft currently, to increase to 0.07 m sft by 2007 and 0.40 m sft by 2010
Average sales per sft at Rs 23,000
Can generate a sales of Rs 880 cr by 2010
Expected Gross margin – 32%
Expected EBIDTA – 12%
Expected Stock turns – 6 x
Consumption Ideas-In homes
Home Solutions Retail (I) ltd. – 100% subsidiary)
Build, Furnish, Equip & Decorate your dream home
Making shopping for the latest in consumer Electronics & Home Appliances an unforgettable EXPEREINCE
3 stores currently, to increase to 20 by 2007 and 86 by 2010
0.06 m sft now to 0.20 m sft by 2007 and 0.86 m sft by 2010
Average sales per sft at Rs 18,000
Can generate a sales of Rs 1,550 cr by 2010
Expected Gross margin – 12%
Expected EBIDTA – 4%
Expected Stock turns – 15 x
Making hi-end Electronics affordable and within easy reach of every consumer
25 stores currently, to increase to 66 by 2007 and 130 by 2010
0.06 million sft currently, to increase to 0.20 by 2007 and .75 m sft by 2010
Average sales per sft at Rs 24,000
Can generate a sales of Rs 470 cr by 2010
Expected Gross margin – 10%
Expected EBIDTA – 4%
Expected Stock turns – 20 x
Ideas for transforming affluent houses into modern homes.
2 stores currently, to increase to 12 by 2007 and 50 by 2010
0.02 million sft currently, to increase to 0.15 by 2007 and 0.65 by 2010
Average sales per sft at Rs 6,000
Can generate a sales of Rs 390 cr by 2010
Expected Gross margin – 45%
Expected EBIDTA – 15%
Expected Stock turns – 5 x
Making modern furniture enter traditional INDIAN HOMES
25 stores currently, to increase to 62 by 2007 and [] by 2010
0.10 million sft currently, to increase to 0.28 by 2007 and [] by 2010
Average sales per sft at Rs 6,000
Can generate a sales of Rs 150 cr by 2010
Expected Gross margin – 35%
Expected EBIDTA – 12%
Expected Stock turns – 8 x
sajao, sanvaro, sapnon ka gar banoa
Very large format one-stop stores – 100-150k thousand sft.
Furniture – Like Collection I
Consumer Durables & Electronics – E-zone
Home Improvement Plumbing (Sanitaryware, Tiles, Faucets, Sinks, PVC Pipes)Electrical (Switches, Wires, Lights, Lamps, MCBs)PaintsHardware (Glass, Plywood, Door Hardware, Hand & Power Tools)Masonry (Cement, Steel, Utilities)
5 stores by 2007 and 35 by 2010
0.6 million sft by 2007 and 2.7 by 2010
Average sales per sft at Rs 12,000
Can generate a sales of Rs 3,200 cr by 2010
Expected Gross margin – 26%
Expected EBIDTA – 6 - 8%
Expected Stock turns – 6 x
HOMEKorean quality products at Chinese prices
Japanese quality products at Korean prices
HOME
PRIVATE LABELS
LOCALDry Irons Water HeatersMixersJMGImmersion heatersStabilisersInvertersGas stovesAir coolersRefrigeratorsWashing MachinesColour TV(CRT)
IMPORTSHome theatres
DVD players
AC’s
Microwave and OTG
Steam irons, Toasters and Heaters
Citrus juicers
Portable DVD players
LCD/PLASMA TV/ Flat TV’s
Laptops
Digital Cameras
High end Home theatre
Consumption Ideas-in health, beauty & wellness
Look Beautiful, Stay Fit. Feel Healthy
The Holistic Pharmacy
The Beauty Spot of India
Because men are from Bollywood and Women are from Prime time Television
66 stores by 2007 and 480 by 2010
0.22 million sft by 2007 and 2.13 m sft by 2010
Can generate a sales of Rs 1,725 cr by 2010
Expected Gross margin – 30%
Expected EBIDTA – 11%
Consumption Ideas-in communications
(Converge m Retail (I) Ltd. – 100% subsidiary)
Mobile phones and communication products as a:
a) Lifestyle
b) Commodity/ Necessity
c) Fashion Accessory
A commodity and necessity for every Indian
Fashion accessories for the young & experimental
Lifestyle
The downloads device for a generationdiscovering the wonders of mobilecommunication
200 stores by 2007 and 1125 by 2010
0.04 million sft by 2007 and 0.28 by 2010
Can generate a sales of Rs 5,535 cr by 2010
Expected Gross margin – 10%
Expected EBIDTA – 4%
Consumption Ideas-in leisure & entertainment
(16% galaxy entertainment
100% pan india restaurants)
Families & Friends who play together stay together
India’s answer to Mc Donald’s
… Because India loves eating on the streets
The young are just discovering Formula I and the magical feet Brazilians have
SPORTS BAR
155 stores by 2007 and 450 by 2010
0.13 million sft by 2007 and 0.45 m sft by 2010
Can generate a sales of Rs 400 cr by 2010
Expected Gross margin – 60%
Expected EBIDTA – 20%
e - tailing
Like it’s never been done
before
e-tailing like its never done before, e-tail designed for India
Sabse sasta
Sabse simple
Sabse convenient
Sabse different
What is
Identity & Proposition
Sabse sastaSabse Sasta din, Har din!. (Unheard of deals everyday! Reference 26th Jan, everyday)
Identity & Proposition
Sabse convenientSimple & intuitive web store design keeping in mind the entire shopping population.
Replicating Indian offline shopping habits into our Shopping cart flow to make it as intuitive for the user.
3 step simple buying process.
Multiple modes of payment.
Emotionally connect with our customers (Human element)
Can generate a sales of Rs 1600 cr by 2010
Expected Gross margin – 20%
Expected EBIDTA – 12%
CONSUMPTION IDEAS INVESTMENT IDEAS
WHO?FUTURE RETAIL
Everyone that constitutes consuming India
WHAT?FUTURE BRANDS
Identify, mentor, invest and grow
INDIA centric brands
WHEN?FUTURE LOGISTICS
Plan and implement all our ideas so that they reach every consumer/ every corner of INDIA
WHERE?FUTURE SPACES
Creating property & public retail infrastructure everywhere in India
HOW?FUTURE CAPITAL
Property, Brands, Insurance & most importantly easy access to money for consumers
WHY?FUTURE MEDIA
Out of Home & Point of sale media that will create trends & consumer spending
CONSUMPTION DEVELOPMENT=
Consumption Ideas-in brands
FOODFresh & Pure
Fresh, Pure & surprising prices – competes with market leaders in every category
TASTY TREAT
More Taste, More Treat, Same Price. Extra Product at the same price point
URBAN YOGA
Yoga Gear for Indians who have discovered their culture
Traditional jewelry for every emotion
SOME MORE FASHION BRANDS
If movies get ratings, music gets rated, why not fashion?
She is Beautiful, she is confident, she is sexy, she is casual, she is wonderful…JEALOUS? She is 21
Gold is OLD. Style expressions in silver
GENERAL MERCHANDISE
Work is underway for creating brands that will take on market leaders in categories ranging from mattresses to cook wear & plastics
CONSUMPTION IDEAS INVESTMENT IDEAS
WHO?FUTURE RETAIL
Everyone that constitutes consuming India
WHAT?FUTURE BRANDS
Identify, mentor, invest and grow
INDIA centric brands
WHERE?FUTURE SPACES
Creating property & public retail infrastructure everywhere in India
HOW?FUTURE CAPITAL
Property, Brands, Insurance & most importantly easy access to money for consumers
WHY?FUTURE MEDIA
Out of Home & Point of sale media that will create trends & consumer spending
CONSUMPTION DEVELOPMENT=
WHEN?FUTURE LOGISTICS
Plan and implement all our ideas so that they reach every consumer/ every corner of INDIA
WHEN?FUTURE LOGISTICS
Plan and implement all our ideas so that they reach every consumer/ every corner of INDIA
Future LogisticsManaging the changed consumption and investment environment 100% subsidiary
FLSL is positioning itself to offer cost effective solutions to different Line of Office (LOB), JVs, Acquired Companies & Selective Vendors covering in the following areas:• Integrated, end-to-end Supply Chain solutions• Warehousing and Distribution• Multi Modal Transportation• International Freight Forwarding (Air & Sea)• Container Freight Station • Value Added Services (VAS)• 4PL / Consulting
To achieve a revenue of Rs. 50 crs.by 2007 and reach to Rs. 500 crs.by 2010.
To establish infrastructure facility consisting of 2.0 million sq.ft.by 2007.
LOGISTICS
Investment Ideas
Future Spaceproperty
CONSUMPTION IDEAS INVESTMENT IDEAS
WHO?FUTURE RETAIL
Everyone that constitutes consuming India
WHAT?FUTURE BRANDS
Identify, mentor, invest and grow
INDIA centric brands
WHEN?FUTURE LOGISTICS
Plan and implement all our ideas so that they reach every consumer/ every corner of INDIA
HOW?FUTURE CAPITAL
Property, Brands, Insurance & most importantly easy access to money for consumers
WHY?FUTURE MEDIA
Out of Home &Point of sale media that will create trends & consumer spending
CONSUMPTION DEVELOPMENT=
WHERE?FUTURE SPACES
Creating property & public retail infrastructure everywhere in India
WHERE?FUTURE SPACES
Creating property & public retail infrastructure everywhere in India
PROPERTY
Signed more than 10 million sft at rents on average of Rs 45 per sft per month
3.6 mn sft 100% leased properties signed40% to be used by Pantaloon formats; 60% to be leased outRental income to PantaloonExpected rent arbitrage on 2.2 million sftExpected rental income at Rs 20 differential rent – Rs 50 cr
Khsitij and Horizon, the funds managed by the company developing 40 million sft
CONSUMPTION IDEAS INVESTMENT IDEAS
WHO?FUTURE RETAIL
Everyone that constitutes consuming India
WHAT?FUTURE BRANDS
Identify, mentor, invest and grow
INDIA centric brands
WHEN?FUTURE LOGISTICS
Plan and implement all our ideas so that they reach every consumer/ every corner of INDIA
WHERE?FUTURE SPACES
Creating property & public retail infrastructure everywhere in India
WHY?FUTURE MEDIA
Out of Home & Point of sale media that will create trends & consumer spending
CONSUMPTION DEVELOPMENT=
HOW?FUTURE CAPITAL
Property, Brands, Insurance & most importantly easy access to money for consumers
HOW?FUTURE CAPITAL
Property, Brands, Insurance & most importantly easy access to money for consumers
Future Capital
The new Money Market
(74% subsidiary)
FUTURE SPACE THROUGH KSHITIJ AND HORIZON
RETAIL REAL ESTATE FUND
Kshitij Venture Capital Fund ($ 80 Million)
Horizon International Fund($ 350 Mln)
Committed 100%Developing 4.5 mn sft2.5/20 structure
Committed 50%Developing 85 acres and 2.0 mn sft2/20 structure
98% 100%
MALL MANAGEMENT
CapitalLand and Pantaloon to set up India’s first professional Mall Management Company with over 30 million square feet of Malls under Management.
Centre Management
Leasing
Security
Facilities Management
Housekeeping
Centre Operations
Liaison
Account ReceivablesIncluding Rent CollectionTenant Relations
Marketing & Sponsorships
Public Relations
INDIVISION – 70% AMC
FundIndivision India Partners is a Private Equity Fund managed by Indivision Capital Management, set up as a JV with the Pantaloon Group (India’s largest retailer) and leading professionals from finance & corporate world
The Concept
Targeted size of $400 million
Team comprising of Atul Kapur ex Goldman Sacs, Sanjiv Gupta, ex CEO Coke India and others in place
2% AMC, 20% carry
(C)
DISTRIBUTION
(D)
SUPERIOR RETURNS
(A)
CAPITAL
(B)
MENTORING+ + =
INCOME from AMC
Total Assets Under Management - $1.5 - $2 billion
Sustainable annuity income over approx $1 bn with 7-10 year lock up
Expected income to Pantaloon Retail - $7 million p.a.
Incentive fee income (20% carry) could be substantial – target IRR 30%
Already a 50% JV with CapitalLand in the pipeline for REIT
Second Kshitij to be launched soon
Making money available, affordable and accessible
CONSUMER CREDIT
Future GeneraliInsuring the future(58% subsidiary)
INSURANCE
Pantaloon Retail, for the first time enters ‘services’
Insuring the youth of India, who currently prefer shopping at Malls to kirana
New model – Mallassurance - looks to leverage the high footfalls in its delivery formats and malls – insurance for the masses
Strong Partner – Assicurazioni Generali – a Fortune 22 company; 3rd largest European Insurance Co; has successfully partnered retailer in Phillipines; also the largest international insurer in ChinaPlan to go to 98 cities in 5 years
CONSUMPTION IDEAS INVESTMENT IDEAS
WHO?FUTURE RETAIL
Everyone that constitutes consuming India
WHAT?FUTURE BRANDS
Identify, mentor, invest and grow
INDIA centric brands
WHEN?FUTURE LOGISTICS
Plan and implement all our ideas so that they reach every consumer/ every corner of INDIA
WHERE?FUTURE SPACES
Creating property & public retail infrastructure everywhere in India
HOW?FUTURE CAPITAL
Property, Brands, Insurance & most importantly easy
access to money for consumers
CONSUMPTION DEVELOPMENT=
WHY?FUTURE MEDIA
Out of Home & Point of sale media that will create trends & consumer spending
WHY?FUTURE MEDIAOut of Home & Point of sale media that will create trends & consumer spending
Future MediaCreating New Media and new investment opportunities
MALL MEDIA OPPORTUNITY
Mall Media (Malls, Megastores, Modern Trade) as a destination where brands can activate/ advertise.brands finding retail visibility solutions out of scope for this partnership
Pantaloon targetting access to 40% of supply.Ambient media/ Static branding“Content” integration (eg Pantaloon shirts best washed with Surf Excel label)TV/ Radio/ Digital
Opportunity in monetizing the Mall Media Marketing environment via
CONSUMPTION IDEAS INVESTMENT IDEAS
WHO?FUTURE RETAIL
Everyone that constitutes consuming India
WHAT?FUTURE BRANDS
Identify, mentor, invest and grow
INDIA centric brands
WHEN?FUTURE LOGISTICS
Plan and implement all our ideas so that they reach every consumer/ every corner of INDIA
WHERE?FUTURE SPACES
Creating property & public retail infrastructure everywhere in India
HOW?FUTURE CAPITAL
Property, Brands, Insurance & most importantly easy access to money for consumers
WHY?FUTURE MEDIA
Out of Home & Point of sale media that will create trends & consumer spending
CONSUMPTION DEVELOPMENT=
THE BIG PICTURE
Total retail space under the Group to be in excess of 30 million square feet
If executed well and within time there is a possibility of reaching a runrate of Rs 2500 cr in June 2010
… BECAUSE TOGETHER WE WILL BUILD THE CREATIVE ECONOMY
CREATIVE/ INNOVATIVE avenues for CONSUMERS to want to spend their money
BETTER INVESTMENT/ BUSINESS opportunities for our PARTNERS & INVESTORS
CONSUMPTION DEVELOPMENT=
Through ideas that induce consumption
And ideas that ‘ATTRACT’ investment
a young, progressive team, willing to learn, unlearn, re-learn. Able to re orient, rewrite rules, retain values and help define
THE FUTURE FORCE
INDIA TOMORROW.
IS ON YOUR SIDE
Thank You
Disclaimer
Certain statements in this presentation concerning our future growth prospects are forward looking statements, which involve uncertainties that could cause actual results to differ materially from those mentioned in such statements.
Future Group, may from time to time, make additional written and oral forward looking statements. The company does not undertake to update any such statements that may be made from time to time on behalf of the company.