BRAND HOUSE Retails Limited The Fashion Enabler March 2009 The - PowerPoint PPT Presentation

BRAND HOUSE Retails Limited The Fashion Enabler March 2009 The Fashion Enabler

Section 1 : Corporate Overview The Fashion Enabler

The Story so far… Year Activity Rationale 2004 Reid & Taylor Retails Pvt. Ltd. To develop the EBO retail network for established the brand 2006 Rechristened as Brandhouse Scope extended to include retailing of Retails Ltd. other SKNL brands Global Luxury brands (dunhill & A strong retail team & systems puts Escada) choose BHRL as their BHRL in the radar of international exclusive India Franchisee brands entering India 2008 BHRL is demerged by mirroring • Retailing dynamics requires a the SKNL shareholding pattern. special focus • The company is looking at brands For every 5 shares , SKNL other than SKNL shareholders get 1 BHRL share • Unlocking shareholder value 2009 Brandhouse inks JV with Italy’s Offering true Italian fashion at Indian No. 1 fashion brand Prices for Indian youth Brandhouse Retails listed in Post all mandatory clearances from March 2009 SEBI, BSE & NSE The Fashion Enabler

The Shareholding Structure The Fashion Enabler

THE GROUP 75 % 25 % Brandhouse SKNL GIC Retails Ltd. Reid & Taylor (India) Ltd. SKNL SKNL Pvt. Label EBOs Divisions International EBOs Joint Venture Int. Brands SKNL Brands SKNL UK Ltd. SKNL Italy SpA The Fashion Enabler

The Strategy behind Brandhouse • Institutional Sales • Export Sales • Large Format Stores Business SKNL Opportunity for Brandhouse Multibrand/ Trade The 3 rd Party Retailers’ Channels Customer Retailers Margin The Fashion Enabler

Section 2 : The Business Dynamics The Fashion Enabler

Vision & Mission The Retail Gateway of India for Fashion & Lifestyle Provide a Provide a distinct competitive distinct competitive edge edge to our brands by to our brands by creating creating an International Retail Experience an International Retail Experience for addressing the booming for addressing the booming Indian Consumerism Indian Consumerism The Fashion Enabler

The Business Model Brand A Sell @ Produce & Consumer Brand B MRP Sell @WSP MRP –WSP = Margin Brand N The Fashion Enabler

The Customer-Centric B est Model Easi est ( Accessible & Approachable ) The Desired Friendli est Lat est Store ( Courtesy & ( Contemporary & Socially correct ) Service ) Perception Hon est Wid est ( Price guarantee & ( Range & Choice of offering ) Trust ) The Fashion Enabler

BHRL’s Key Strengths 1 Human Resource 2 Systems Driven Approach 3 Integration with SKNL 4 Strong Brand Mix The Fashion Enabler

1 Human Resource A strong, experienced team of retail professionals create the cutting edge in a very competitive scenario The Fashion Enabler

The Functional Division CEO Business Retail Development Operations COO COO Operations Business Development Scouting New Stores Managing Stores Commercial feasibility Analyzing Performance Legal Clearances Buying & Merchandising Architect Coordination Staff Training/Incentive Setting up stores Visual Merchandizing Hiring Staff Advertising/Promotions The Fashion Enabler

The Organogram MD & CEO COO COO Business Development Operations CFO VP Acquisition VP Projects Company VP 1 VP 2 VP (Real Estate) (Store Secretary Buying & GM GM GM GM GM Implementation) & Legal Merchandising Accounts Commercial IT HR Luxury Managers, Executives & Support Staff Regional managers and executives in the 4 regions of India The Fashion Enabler

Thumbnails of our Key People Tarun Joshi 45 years old with over 23 years of experience in marketing, M.D. & CEO communications & Retail. Has worked with leading multinationals Surjit Singh 43 years old with over 20 years of experience in marketing & COO Development Retail. Has worked with Crossroads, ZEE TV & Akbarallys Ashok Dalal 42 years old with over 18 years of experience in Advertising & COO Oviesse Retail. Has worked with Tata Exports, Westside & Pyramid Retails Paritosh Jain 45 years old, with over 20 years of experience in Retail. He has COO Operations worked with Bata, Raymonds & Wills Lifestyle Indraneell Basu 35 years old with over 12 years of experience in Retail. Has V.P. Operations worked with Benetton, Wills Lifestyle & Titan Amit Chopra 34years old with over 14 years of experience in Retail. Has V.P. Operations worked with Wills Lifestyle, Pizza Corner, Nirulas. Sameer Sikka 34 years old with over 10 years of experience in Retail. Has V.P. Real Estate worked with Raymond’s, Shopper’s Stop & Weekender The Fashion Enabler

2 Systems Driven Approach Objective, systematic approach that maximizes productivity & efficiencies The Fashion Enabler

Integrated, Systems-Driven Retail footprint Business Development Human Marketing Resource Development Shoppers IT Software Store Finance Operations SAP Logistics & Information Supply Technology Chain Buying & Merchandising The Fashion Enabler

The Holistic Approach to Retailing Consumer Retail Brand Comprehension Comprehension Comprehension Demographics External Environment The Tangibles • Geographic Spread • Location Aspects • Product attributes • Affluence Levels • Commercial Viability • Range & Seasonality • Wallet Monitor • Long-term Outlook • Pricing strategy Psychographics Internal Environment The Intangibles • Usage & Attitudes • Visual Merchandising • Brand Positioning • Needs & Wants • Inventory Management • Brand Identity • Aspirations & Desires • Service & CRM • Brand Values The Fashion Enabler

Operational Strengths – Highlights Area Challenges BHRL’s Strengths � Limited supply � Dedicated team of professionals with constant Real mapping of Indian market. � Very high Rentals Estate � Early information & action enable early entry into new projects at better costs � Collective bargaining (all brands) for better rentals � Quality, Time & Cost � In-house team of architects & related specialists Projects management pan India � Regional tie-ups with contractors � Collective bargaining with vendors Operations � Skilled Manpower � Regular training & career development opportunities programs to attract & retain quality manpower � Quality Standards � Innovative incentive packages for added motivation � Inventory Management � S.O.P. manual implemented through national / regional teams. � SAP (I.S. Retails) under implementation for better systems with special focus on Merchandise Planning. Knowledge � Competitor performance � Data collection by regional teams (monthly) � Industry Information � Subscription to various industry reports Bank � Consumer track � Regular research & surveys The Fashion Enabler

3 Integration with SKNL Group The advantages of being a part of a large group with over six decades of experience in textiles & fashion The Fashion Enabler

The Overall Picture Captive Retail Business Expertise BRANDHOUSE SKNL International Group Brands R E T A I L S Retail Business Support Avenues Outsourcing / Manufacturing The Fashion Enabler

The Other Advantages Marketing Sourcing & Manufacturing SKNL Buying & Merchandising Group Logistics & Supply Chain The Fashion Enabler

4 Strong Brand Mix The advantages of having a strong portfolio of brands with strong equity & a well- established track record The Fashion Enabler

Solid Brands with Strong Brand Equities Brand Profile Reid & Taylor A 165 year old heritage brand from Langholm, Scotland, Reid & Taylor was launched in India in 1999. Today it is a premium suiting and apparel brand with a very high brand equity. As on Mar 08, it has 158 EBOs across the country. Belmonte A unique combination of Fabric & Apparel in the mid-price segment, Belmonte has grown into a well-recognized brand in two years, since launch. As on Mar 2008, Belmonte has 103 EBOs across the country Carmichael House A mid-premium home textiles brand Carmichael House has become the No. 2 brand in the country in less than two years. As on Mar 08, it has 113 EBOs across the country Stephens Brothers A Super-Premium Brand SB is a JV between SKNL and Austin Reed, UK. It offers formal wear for men & women. As on Mar 08 it has 19 EBOs in India dunhill A leading Luxury brand for men, dunhill has 3 boutiques in India. In a nascent Luxury market in India dunhill is already a leading name for men’s apparel & accessories within one year of launch The Fashion Enabler

Section 3 : Performance & Projections The Fashion Enabler

Financial Overview 2007-08 2008-09 2009-10 Audited Audited Projected No. of Stores 398 683 909 Area (Sq.ft.) 4,18,415 666,575 911,100 Revenues (Rs. Cr.) 313.79 552.35 812.72 EBIDTA (Rs. Cr.) 31.22 41.18 78.84 EBIDTA % 9.95% 7.45% 9.7% PBT (Rs. Cr.) 22.63 24.12 33.40 PBT % 7.2% 4.4% 4.1% PAT (Rs. Cr.) 13.31 13.39 22.15 PAT % 4.2% 2.4% 2.70% The Fashion Enabler

Rental matrix – Own Stores Rent/PSF month Metro Tier 1 Tier 2 Reid & Taylor 225 175 125 Carmichael House 175 125 80 Stephens Brothers 300 200 - Belmonte 160 125 90 Luxury 800 - - The Fashion Enabler