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By: Neeraj Jain Rajas Rane 10/15/08

Business Design Sept, 2007 1

Objective • •

Selection of Location for Malls Developing Suitable Organisation Structure of mall

Assumption •

Choice of Investor

Methodology • • • • • •

Economic Analysis Retail Scenario Analysis Mall Scenario Analysis Location Selection Defining Organisation processes Organisation Structure

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What is a Mall?

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Investor

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ECONOMIC ANALYSIS

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Economic Analysis • •

Growing at 8% per annum Average real household disposable income Rs. 1,13,744(2005) Picture 4

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ANALYSIS: Indian Retail Scenario

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Analysis: Indian Retail Scenario • • • •

Fastest growing sector Organized retail sector(4%) of total US$ 302 billion retail industry Clothing & fashion Accessory along with food & grocery account for biggest share(59%) Hypermarket format providing maximum return on capital employed (53% in 3 years)

Source: Crisil Infac 10/15/08

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Trends In Retail Sector •

Large Players Setting up shops in Smaller Cities

Player

City

Shopper Stop

U.P-Noida

Globus

Kanpur, Lucknow, Chandigarh, Pune

Provogue

Indore, Agra, Ludhiana, Ghaziabad, Mangalore Secunderabad, Nagpur, Pune, Nasik, etc

Pantaloon

Picture 7

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Source: Crisil Infac

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ANALYSIS: Indian Mall Scenario

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Analysis: Mall scenario In India • •

137 malls at present 300 malls operational by 2010

Upcoming Malls City

Number Of Malls

Metros

101

Picture 4

Mini Metros Bangalore

9

Hyderabad

15

Pune

9

Ahmadabad

5

Sub - Total

38

Tier 2 Cities

81

Total

220

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Source: Crisil Infac

Mall space distribution by 2007 end

13

States

HARYANA

Populat ion (in lakhs)

Projects/ malls coming up

Panipat

2.66

6 malls

Sonipat Kundli

12.7

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Ambala

7.9

SEZ by DLF, Celebration mall

Faridabad

20

10 malls

30

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Recent Trends

Upcoming petro chemical hub Residential Colonies coming up due to metro rail ---------------------------------

Space allocated for 24 malls by state govt.

Punjab Ludhiana

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Retail spending potential estimated to be Rs.5940 crore by 2010

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Mohali

1.2

15 malls

Jalandar

11

4 malls

No mall/ multiplex

12.7

4 malls

Asia’s largest coming up

Jaipur

20.7

12 malls

Upcoming MNC, FMCG, IT & Capital good

Kota

15.6

1 mall

Malls not being organised

Ajmer

5

2 malls

Patiala

Highway to Chandigarh being made, IT companies setting up

petrol

station

complex

RAJASTHAN

Announcement of residential & commercial projects

HIMACHAL PRADESH Baddi 10/15/08

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1 mall

Source: Retailer June-July 2007

Upcoming IT, Pharma, Textile & Auto Co. 15

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Location Selection

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Picture 3

IT- ITES Industry • •

Revenues of US$ 39.6 billion (06-07) Projected revenues of US$ 49-50 bn. (07-08) at a growth rate of 24-27 %

Super Nine Indian IT-ITES Destinations Ahmedabad Bangalore Chennai Hyderabad Kolkata Kochi Mumbai (including Navi Mumbai) Pune

NCR (Delhi, Noida and Gurgaon)

Source: Nasscom

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Sr. no1

Upcoming IT-ITES destinations Secunderabad

2

Mysore

3

Jaipur

4

Ranchi

5

Coimbatore

6

Hosur

7

Goa

8

Trichur

9

Madurai

10

Mangalore

11

Visakhapatnam

12

Bhubaneshwar

Source: Nasscom 10/15/08

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Highest Per capita Expenditure Sr. no

Cities with Highest Per capita Expenditure

1

Chandigarh

2

Thiruvananthapuram

3

Jamshedpur

4

Vadodara

5

Kochi

6

Goa

7

Guwahati

8

Faridabad

9

Bangalore

10

Chennai

Source: Economic Times: August 11, 2006 10/15/08

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Locations selected- Phase 1

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Sr. no. 1

City

2

Secunderabad

3

Mysore

4

Jaipur

5

Thiruvananthapuram

6

Vadodara

7

Kochi

8

Goa

9

Coimbatore

10

Madurai

11

Mangalore

12

Visakhapatnam

13

Bhubaneshwar

Chandigarh

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Other Possible Options

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Sr. no 1.

City

2.

Kota

3.

Sonepat- Kundli

4.

Baddi

5.

Pune

6.

Ahmedabad

Faridabad

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IT-ITES companies in diff. cities Location City Company Chandigarh Thiruvananthapuram Mysore

Goa

Kochi

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Infosys, Wipro, Tech Mahindra, Esys, IBM daksh, Infosys,Alchemist, TCS, Tata etc Elxsi, etc COMAT Infoscribe, ExcelSoft, Infosys, WIPRO, L&T ITL, Technovations In Planning stage

Wipro, TCS

Rajiv Gandhi Chandigarh tech. park, DLF campus TechnoPark(120 co.) Hebbal Electronics City

Rajiv Gandhi IT habitat, IT park at Socorro, IT retreat Mandrem Infopark

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Organisation Processes

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Service • • • • • • • • • •

processes

Parking Area Management Security Multiple Check In & Check Out gates Seating Facility Escalators & lifts Cart system Locker system Feedback & grievances desk Baby care center Facility for disabled

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Experience/ Ambience Processes • • • • • • • • •

Event management Music management Artists management Crowd management House keeping and toilets management Lost and found desk Training of staff Signages management Communication management

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Organisation Structure

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Organisation Structure Mall Manager

Event Tech. s M Head System Mgt. Team, Mktg & Communicatio n team, Event Conceptualizin g& Implementatio n Team 10/15/08

Ops. M Service Manage r Outsourced activities:Like security housekeepi ng Maintenanc e

HR Head Recruitme nt & staff Electrician, Fire Officer, A.C Tech, Lift Repair, Repair & Maintenance team, Disaster mgt. team,

Financ e

Accounta nts

Design & CRM

Liaiso n. M

Maintain legal relationshi ps with tenants CRM executiv es, Iteam 32

Organisation Structure Customer Mktg & System Mgt. Communication Team, team, Event CCTV Operator, Conceptualizing Electrician, & Fire Officer, A.C Implementation Tech, Team Lift Repair, Repair & Maintenance team, Disaster mgt. team , Security, Parking officers Events Tech. Operations Head M Manager

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Mall Manager

CRM exec Recruitment, utive Appraisal, Accountants s, Retention & IRetrenchme tea nt m

HR Head

Financ e

Design & CRM

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Thank you Aim High!

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