MIRA INFORM REPORT
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Report Date : |
6th May 2006 |
IDENTIFICATION DETAILS
|
Name : |
FOOD BAZAAR – PROPRIETOR-
PANTALOON RETAIL INDIA LIMITED |
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Registered Office : |
Knowledge House, Shyam
Nagar, Off Jogeshwari-Vikhroli Link . Road, Jogeshwari (East), Mumbai 400060 |
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Country : |
India
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Financials (as on) : |
30.06.2005 |
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Date of Incorporation : |
12TH
October, 1987 |
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CIN No.: |
U99999MH1987PTC044954 |
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Com. Reg. No.: |
11-44954 |
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TAN No.: (Tax Deduction &
Collection Account No.) |
MUMP16929D
/ CALP06339E |
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PAN No.: (Permanent Account No.) |
AAACP6317L |
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Legal Form : |
It
is a Public Limited Liability Company.
The company's shares are listed on the Stock Exchanges. |
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Line of Business : |
The
company engaged in manufacturing of Trousers of Synthetic Fibers, Shirts of Man-made
Fibers and Woven Fabrics of Synthetic Staple Fibers |
RATING & COMMENTS
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MIRA’s Rating : |
A |
RATING
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STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial &
operational base are regarded healthy. General unfavourable factors will not
cause fatal effect. Satisfactory capability for payment of interest and
principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 8500000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject
is a well established and reputed company in retail chain stores industry.
The company is progressing very well. Trade relations are reported as fair.
Business is active. Payments are always correct and as per commitments. The
company can be considered good for any normal business dealings. |
LOCATIONS
|
Registered Office / Corporate Office : |
Knowledge House, Shyam
Nagar, Off Jogeshwari-Vikhroli Link . Road, Jogeshwari (East), Mumbai 400060 |
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Tel. No.: |
91-22-56442200 |
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Fax No.: |
91-22-56442201 |
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Website : |
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Locations : |
FOOD BAZAAR LOCATIONS 1. Food Bazaar
Mumbai: (Lower Parel) Address: Phoenix Mills Compound,
462, Senapati Bapat Road, Lower Parel, Mumbai-400 013. Phone no. 022 - 56620703 Store Opening Date 13 July 2002 Space : 10,000 sq.ft. 2. Food Bazaar
Mulund: Address: C/O Runwal Arcade, Opp Richardson Factory, LBS
Marg, Near Mulund (West), Phone no. 022-5555 0612 Store Opening Date 19 April
2003 Space : 14,000 sq.ft. 3. Food Bazaar
Vashi: Address: Centre 1, Sector 30A,
Vashi 400 705 Phone no. 022-2781 2616 Store Opening Date 30 Aug
2003 Space : 9000 sq.ft. 4. Food Bazaar
Mumbai (Goregaon): Address: The Hub, Nirlon Compound,
Western Express Highway, Goregaon (E). Mumbai-400 069 Phone no. 022-5649 0151-1 Store Opening Date Aug 2004 Space : 21,260sq.ft. 5. Food Bazaar
Mumbai (Lokhandwala): Address: Infinity, Link Road,
Andheri(West). Phone no. 022 - 2639 3250 Store Opening Date Oct 2004 Space : 20,000 sq.ft 6. Food Bazaar
Mumbai (Malad): Address: Eastern Mall, 3rd Floor,
Daftary Road, Malad(E). Phone no. 022-2881 7700/88 Store Opening Date 23rd Dec
2004 Space : 7,000 sq.ft 7. Food
Bazaar-Kandivili Address :Growel Plaza, Akurli Road,Off Western Express
Highway, Kandivali(E) Mumbai-400101 Phone no.: Store Opening Date :May
14, 2005 Space :10,000 sq.ft. 8. Food
Bazaar-Lake City Mall (Thane) Address Lake City Mall (Thane), Kapurbawdi Junction
,Ghodbunder Road, Thane (W), Mumbai-400080 Phone no. 022-2542 6644 Store Opening Date May 14,
2005 Space 10,000 sq.ft. 9. Food Bazaar
Ahmedabad: (Law Garden) Address: Abhijit III, Netaji Road,
Near Law Garden, Phone no. 079 - 2647004 Store Opening Date 26 Sept
2003 Space : 6,500 sq.ft. 10. Food Bazaar
Ahmedabad : (Rudra Point) Address: Rudra Point, Near Isckon
Temple, Gandhi Nagar-Sarkhej Highway, Ahmedabad. Phone no. 079 - 5530 5300 Store Opening Date 21 Feb
2004 Space : 10,000 sq.ft. 11. Food Bazaar Ahmedabad (Kankaria): Address: Ahmedabad City Mall, New
Cotton Mills Compound, Outside Raipur Gate, Opp. Arya Seva Samaj Hall,
Kankaria Road, Ahmedabad. Phone no. 079- 25470711 Store Opening Date 24th Dec
2004 Space : 14,000 sq.ft. 12. Food Bazaar
Nagpur: Address: Landmark Dhantoli Wadi
Road, Nagpur Phone no. 0712 - 561 2151 Store Opening Date 2 Aug
2003 Space : 5,400 sq.ft. 13. Food Bazaar
Nasik: Address: The Zone, College Road,
Nasik 422 005 Phone no. 0253 - 23182222 Store Opening Date 19 June
2004 Space : 5,000 sq.ft. 14. Pune Central Address 256, Koncord Towers, Boat
Club Road, Sangamwadi Town Planning Scheme, Bund Garden. Pune. Pin 411001 Phone no. 020 - 5609 9000 Store Opening Date 8th
April 2005 Space 15. Food Bazaar
Kolkata: Address: Pantaloon Retail (India) Limited, Phone no. 033-25703651/ 55 Store Opening Date 28 Sept
2002 Space : 5,000 sq.ft. 16. Food Bazaar
Kolkata: (Alipore) Address: 17/1F, Alipore Road, Kolkata 700 027 Phone no. 033-24486231 Store Opening Date 21 Jan
2004 Space : 6,000 sq.ft. 17. Food Bazaar
Kolkata (Camac): Address: 22, Camac Street, Kolkata - 700 016 Phone no. 033-22815072/ 73 Store Opening Date 12 March
2004 Space : 5,000 sq.ft. 18. Food Bazaar
Kolkata(Hi-land Park): Address: The Metropolis, 6 Hiland Park, 1925 Chakgaria Phone no. Store Opening Date 4th Dec
2004 Space : 7,500 sq. ft. 19. Food Bazaar
Bhubaneswar: Address: Forum, 89, Kharavelnagar,
Unit-III, Bhubaneswar-751001, Orissa. Phone no. 0674 - 3217780 Store Opening Date 27 March
2004 Space : 5,000 sq.ft. 20. Food Bazaar
Gurgaon: Address: C/o Sahara India
Commercial Corporation ltd., Sahara mall, Main Mehrauli Gurgaon road,
Gurgaon. Haryana Phone no. 0124 - 5008888 Store Opening Date 1 June 2003 Space : 11,000 sq.ft. 21. Food Bazaar
Gaziabad (EDM) : Address: EDM, Plot No .1
Kaushambi, Gaziabad Phone no. 0120 - 3001300 Store Opening Date 25th Dec
2004 Space : 10,000 sq.ft. 22. Food Bazaar
Durgapur: Address: Durgapur City Centre, Durgapur 713216 Phone no. 95343 - 2543021 Store Opening Date 5 April
2005 Space : 5000 sq.ft. 23. Food Bazaar
Ghaziabad (Shipra Mall): Store Opening Date 14 May
2005 Space : 16,000 sq.ft. 24. Food Bazaar
Bangalore - Koramangalam: Address: Salapuria Towers,#22 ,
Koramangala Industrial Layout, Hosur Road, Bangalore. Phone no. 080 - 25520752 Store Opening Date 30 April
2003 Space : .6,000 sq.ft. 25. Food Bazaar
Bangalore - (Hosur Road): Address: #56/17, Garve Bhavi Palya, Hongsandra, Opp Nandi
Toyota, Hosur Road. Phone no. 080 - 56649250/51/52 Store Opening Date July
2004 Space : 9600 sq.ft. 26. Food Bazaar
Bangalore - (Central) Address: Bangalore Central, 47/48, Residency Road.
Bangalore 560 025 Phone no. 080 - 56930000 Store Opening Date 14th May
2004 27. Food Bazaar
Hyderabad - Abids: Address: Maheshwari Palace Mall, Palace Talkies
Compound,#4-1-833, Abids, Hyderabad. Phone no. 040-24758385 Store Opening Date 21 March
2003 Space : 6,500 sq.ft. 28. Food Bazaar
Hyderabad (Central): Address: G.S.Center Point, Municipal No.6-3-673, 673/1, Phone no. 040-5543 0000 Store Opening Date 5th Nov 2004 29. Food Bazaar Banshankari: Address: 92/9, 80 Feet Road, BSK III StageKathariguppa,
Banshankari Bangalore 560085 Phone no. 080-5514 9000 Store Opening Date June 24,
2005 Space : 94,120 sq ft 30. Food Bazaar Sangli: Address: New Pride MultiplexNear Circuit House, Madhav
Nagar Road Vakharbhag, Sangli 416416, Bangalore 560085 Phone no. 0233-262 4141 Store Opening Date June 29,
2005 Space : 28,000 sq ft 31. Food Bazaar Inderlok: Address: Metro Mall, Inderlok, Delhi Store Opening Date July 1, 2005 Space : 29,700 sq ft 32. Food Bazaar
Ghaziabad: Address: MMX Mall, Opp Katori MallGT Road, Mohan Nagar
Ghaziabad 201 007 Phone no. 0120-537 5300/1 Store Opening Date Oct 25,
2005 Space : 13,500 sq ft 33. Food Bazaar Lucknow: Address: Sahar
Ganj, Shahnajaf Road Hazratganj, Lucknow Store Opening Date Nov
17, 2005 Space : 60,000
sq ft 34. Food Bazaar Bangalore -
Sigma: Address: Sigma MallPlot 15, 16, 17 SRT Road, Cunningham
Road, Bangalore 560 052 Phone no. 080-5523 9338/9 Store Opening Date Jan 21,
2006 Space : 10,000 sq ft 35.
Food Bazaar Bangalore -
Garuda Mall: Address: Garuda Mall, 5th Flr, Ward # 76, Magarath Road
Bangalore 560 052 Store Opening Date March 04 , 2006 Space : 5,000 sq ft 36.
Food Bazaar Indore : Address: Treasure
Island, 11 Tukoganj Main Road, Indore 452001 Phone no. 0731-3011300 Store Opening Date Dec
23, 2005 Space : 50,000 sq ft 37.
Food Bazaar Pune: Address: Fun n
Shop Building, Fatima Nagar, Solapur Road, Pune Phone no. 020-5642
0500 Store Opening Date Dec
17, 2005 Space : 36,000 sq ft 38. Food Bazaar Wazirpur, Delhi : Address: Netaji
Subhash Place, Metro Station, Ansal MGF Metro Plaza Wazirpur 110034 Phone no. 011
-3952 8244 Store Opening
Date July 22, 2005 Space : 35,000 sq ft 39. Food Bazaar Vizag: Address: GV
Manor, Beside Sangam Sharat Theatre, Station Road Dwarkanagar, Vishakapatnam 533016 Store
Opening Date October 5, 2005 Space : 47,000 sq ft 40.
Food Bazaar Vizag: Address: Double
Road, BMTC Bus Stand Store
Opening Date Apr 7, 2006 Space : 42,000 sq ft 41. Food Bazaar Citi Gold Multiplex, Ahmedabad Address: Citi
Gold Multiplex, Bapu Nagar, Ahmedabad Store Opening
Date Apr 14, 2006 42. Food Bazaar Bharat Mall , Manglore Address: :
Bharath Mall, Kodialbail Village Bejai, Mangalore Store
Opening Date Apr 22, 2006 Space : 6,968 sq ft |
DIRECTORS
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Name : |
Mr. Kishore Biyani |
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Designation : |
Managing Director |
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Date of Birth/Age : |
45
years |
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Qualification : |
B.Com, PGD in marketing |
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Experience : |
25
Years |
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Date of Appointment : |
01/06/1991 |
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Name : |
Mr.Gopikishan Biyani |
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Designation : |
Wholetime Director |
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Date of Birth/Age : |
60
Years |
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Qualification : |
B.
Com |
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Experience : |
29
Years |
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Date of Appointment : |
01/06/1991 |
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Name : |
Mr. Shailesh Harfbhakti |
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Designation : |
Director |
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Name : |
Mr. S. Doreswamy |
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Designation : |
Director |
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Name : |
Dr. Darlie Koshy |
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Designation : |
Director |
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Name : |
Mr. Anil Harish |
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Designation : |
Director |
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Name : |
Ms. Anju Poddar |
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Designation : |
Director |
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Name : |
Ms. Bala Deshpande |
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Designation : |
Nominee Director |
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Name : |
Mr. Shiraj Dej |
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Designation : |
Company
secretary |
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Name : |
Mr. Rakesh Biyani |
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Designation : |
Wholetime Director |
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Date of Birth/Age : |
33
Years |
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Qualification : |
B.
Com |
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Experience : |
11
Years |
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Date of Appointment : |
01/04/1997 |
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Name : |
Mr. Ved Prakash Arya |
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Designation : |
Director - Operations
& Chief Operating Officer |
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Date of Birth/Age : |
35
Years |
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Qualification : |
BE,
MBA |
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Experience : |
10
Years |
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Date of Appointment : |
29/03/2004 |
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Name : |
Mr.
Chinar S. Deshpande |
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Designation : |
Chief
Information Technology |
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Date of Birth/Age : |
36
Years |
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Qualification : |
BE,
MBA, MS |
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Experience : |
12
Years |
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Date of Appointment : |
17/05/2004 |
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Last Employment: |
Dodsal
Pvt Ltd. |
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Name : |
Mr.
Krishnakant Rathi |
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Designation : |
Head
Risk Management and Finance |
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Date of Birth/Age : |
43
Years |
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Qualification : |
ACA,
ACS |
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Experience : |
20
Years |
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Date of Appointment : |
17/01/2005 |
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Last Employment: |
H
and R Johnson India Limited |
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MAJOR SHAREHOLDERS
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Names of Shareholders |
No. of Shares |
Percentage of Holding |
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Promoters & their
Relatives |
9471619 |
43.06 % |
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Mutual Funds |
587628 |
0.14 % |
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Banks, Financial
Institutions |
30647 |
0.14 % |
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Foreign Institutional
Investors |
6478260 |
29.45 % |
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Non Resident Indians &
OCBs |
130433 |
0.59 % |
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Indian Companies |
1686985 |
7.67 % |
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Indian Public |
3578245 |
16.27 % |
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Clearing Members |
33919 |
0.15 % |
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Total |
21997736 |
100.00 % |
BUSINESS DETAILS
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Line of Business : |
The
company engaged in manufacturing of Trousers of Synthetic Fibers, Shirts of Man-made
Fibers and Woven Fabrics of Synthetic Staple Fibers |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
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Apparels |
Nos. in Millions |
NA |
300 Stitching
Machines |
2.865 |
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GENERAL INFORMATION
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No. of Employees : |
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Bankers : |
Ø
Bank of India Ø
UTI Bank Limited Ø
Syndicate Bank Ø
Oriental Bank of Commerce Ø
Andhra Bank Ø
UCO Bank |
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Facilities : |
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Banking Relations : |
Good
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Auditors : |
NGS
and Company Chartered
Accountants |
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Advocates and
Solicitors: |
Haresh
Jagtiani & Associates |
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Associates : |
1. Pantaloon Industries
Limited 2. Indus League Clothing
Limited 3. KB Mall Management
Company Limited 4. PFH Entertainment
Limited; 5. Mark Middle East,
L.L.C., Dubai! (For part of the year) 6. Manz Retail Private
Limited; 7. Idiom Design &
Consulting Limited 8. Nishta Mall Management
Company Private Limited 9. Niyaman Mall Management
Company Private Limited 10. Acute Realty Private
Limited 11. Dhruv Synthetics
Private Limited 12. Anchor Malls Private
Limited 13. Varnish Trading
Private Limited 14. Bansi Silk Mills |
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Subsidiaries: |
1. Home Solutions Retail
(India) Limited 2. Pantaloon Food Product
(India) Limited 3. Pan India Restaurants
Limited 4. PFH Investment Advisory
Company Limited 5. Pantaloon Retail
Technogies Limited. (For part of the year) |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
25000000 |
Equity Shares |
Rs. 10/-each. |
Rs. 250.000 Millions |
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Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
21997736 |
Equity Shares |
Rs. 10/-each. |
Rs. 219.977 Millions |
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FINANCIAL
DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
30.06.2005 |
30.06.2004 |
30.06.2003 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
219.977 |
191.374 |
181.800 |
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2] Share Application Money |
30.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1965.275 |
757.529 |
495.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH
|
2215.252 |
948.903 |
676.800 |
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LOAN FUNDS |
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1] Secured Loans |
2561.700 |
2147.606 |
1413.200 |
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2] 10%Unsecured Fully
Convertible Debenture |
0.000 |
213.547 |
0.000 |
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3] Unsecured Loans |
300.379 |
0.082 |
42.300 |
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TOTAL
BORROWING
|
2862.079 |
2361.235 |
1455.500 |
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DEFERRED TAX LIABILITIES |
130.436 |
60.301 |
29.200 |
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TOTAL
|
5207.767 |
3370.439 |
2161.500 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
2137.417 |
1603.879 |
1073.100 |
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Capital work-in-progress
|
157.916 |
144.414 |
33.200 |
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INVESTMENT
|
319.155 |
52.623 |
52.600 |
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DEFERREX TAX ASSETS
|
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CURRENT ASSETS, LOANS & ADVANCES
|
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Inventories
|
2759.256
|
1575.974 |
1143.800 |
|
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Sundry Debtors
|
123.066
|
175.842 |
223.200 |
|
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Cash & Bank Balances
|
215.004
|
138.476 |
80.700 |
|
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Other Current Assets
|
4.608
|
0.000 |
0.000 |
|
|
Loans & Advances
|
936.800
|
409.543 |
214.300 |
Total Current Assets
|
4038.734
|
2299.835 |
1662.000 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
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|
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Current Liabilities
|
1264.744
|
664.822 |
620.700 |
|
|
Provisions
|
183.471
|
69.491 |
44.000 |
Total Current Liabilities
|
1448.215
|
734.313 |
664.700 |
|
Net Current
Assets
|
2590.519
|
1565.522 |
997.300 |
|
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MISCELLANEOUS EXPENSES
|
2.760 |
4.001 |
5.300 |
|
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|
|
|
|
TOTAL
|
5207.767 |
3370.439 |
2161.500 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
30.06.2005 |
30.06.2004 |
30.06.2003 |
Sales Turnover [including other income]
|
10882.875 |
6596.395 |
4453.200 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
531.208 |
244.119 |
141.700 |
Provision for Taxation
|
145.697 |
46.333 |
27.600 |
Profit/(Loss) After Tax
|
385.511 |
197.786 |
114.100 |
|
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|
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Export Value
|
260.440 |
115.322 |
NA |
|
|
|
|
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Import Value
|
184.448 |
131.946 |
NA |
|
|
|
|
|
Total Expenditure
|
10351.668 |
6352.276 |
4074.300 |
KEY RATIOS
|
PARTICULARS |
|
30.06.2005 |
30.06.2004 |
30.06.2003 |
PAT / Total Income
|
(%)
|
3.54
|
3.00 |
2.56 |
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|
Net Profit Margin
(PBT/Sales) |
(%) |
4.88
|
3.70 |
3.18 |
|
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|
Return on Total Assets
(PBT/Total Assets} |
(%) |
8.60
|
6.25 |
5.18 |
|
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|
Return on Investment (ROI)
(PBT/Networth) |
|
0.24
|
0.26 |
0.21 |
|
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|
Debt Equity Ratio
(Total Liability/Networth) |
|
1.95
|
3.26 |
3.13 |
|
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|
|
Current Ratio
(Current Asset/Current
Liability) |
|
2.79
|
3.13 |
2.50 |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets
Ø
Land
Ø
Leasehold Land
Ø
Building
Ø
Plant & Machinery
Ø
Office Equipments
Ø
Computer Owned
Ø
Computer Leased
Ø
Furniture & Fittings
Ø
Electrical Instal.
Ø
Vehicles
Ø
Air Conditioner
Ø
Generator
Ø
Delivery Van
The Company is not required to obtain License under
Industries (Development and Regulation) Act, and therefore licensed capacity is
not applicable.
The Company having dealt in a large number of products
in several locations, the information required in terms of Schedule VI of the
Companies Act in respect of value of the products sold has been drawn up in
respect of major items namely Apparels and Household Items. The other items
have been grouped together as sales value in respect of each product is not
practical to ascertain.
Food Bazaar’s core concept is to create a blend of a typical Indian Bazaar and
International supermarket atmosphere with the objective of giving the customer
all the advantages of Quality, Range and Price associated with large
format stores and also the comfort to See, Touch and Feel the products.
'FOOD BAZAAR' a division of Pantaloon Retail India Ltd is a chain of
large supermarkets with a difference. It was flagged off in April'02.With
store sizes ranging from 8,000 sq ft to 15,000 sq. ft. in Mumbai (two stores),
Kolkata, Bangalore & Hyderabad, it is opening more stores at Gurgaon
(Delhi), New Bombay & Nagpur. It currently caters to over 1.2 million
customers every day across 4 outlets in India and is soon set to expand and
double this figure across 8 outlets all over the country by June 2003.
Food Bazaar offers the Indian consumer the best of Western and Indian values.
The western values of convenience, cleanliness and hygiene are offered through
pre packed commodities and the Indian values of "See- Touch- Feel"
are offered through the “Mandi” atmosphere created by displaying staples out in
the open, all at very economical and affordable prices without any compromise
on quality. This satisfies the Indian consumer and comforts her before making
her final buying decision. At other super markets, the consumer is deprived of
this factor.
Truly the Indian consumer now agrees with Food Bazaar: "Ab Ghar Chalaana
kitna Aasaan”. This positioning platform of Food Bazaar is evident from the
higher discounts and the wholesale price-points which is below MRP.
Hot Shops
Farm Fresh
Chill Station
Golden Harvest
Chef Zone
Hungry Kya!
Head - 2 - Toe
POWER
SAVER
The
all powerful new concept based on the principle of the more you buy the more
you save. Already almost all products sell below their respective MRPs. And
when the customer buys additional quantities,bigger discounts are offered –
saving even more for the customer. So Food Bazaar is the happening new place
for consumers to “shop more N save more.”
Advantages
of Food Bazaar
Excellent
Quality:
Food
Bazaar offers the Indian consumer excellent quality in all its merchandize – be
it commodities like rice, wheat, etc. brands – the best of Indian and a few
foreign labels too, vegetables – fresh, clean and crisp – both regular as well
as exotic.
Down
to Earth Prices:
In
keeping with the concept of Big Bazaar (where our Food Bazaars are currently
located) the prices of all items are very very competitive and affordable. So
not only are consumers getting the best quality – they are saving substantially
when they shop at Food Bazaar.
Unmatched
Shopping Experience:
The
entire shopping experience is a very pleasant experience for the customer –
with air conditioning, soothing music, lighting all contributing to the
excellent service levels that complement the wide and excellent range of
products being offered at Food Bazaar.
Excellent
Service:
The
service to customers at Food Bazaar is quiet, efficient, and helpful in a
pleasing way. No pushy sales people. Only simple smiling sales people ever
ready to help the customer with a thoughtful comment or direction when asked.
EXPANSION PLANS
The
company has drawn up an aggressive expansion plan for the future. Total retail
space
at the end of 2004-05 stood at over 1.9 million square feet with around 1
million
square
feet being added in the year under review. The company will further step up the
pace
of expansion and based on the space currently signed, expects 3.5 million
square
feet
to be operational by June 2006 and 7 million square feet by June 2007
LINE OF BUSINESS –
Fashion Comprising
cose to 50 per cent of the total revenues of the company, fashion continues to
be the strength of Pantaloon. The antecedents of the company lie in garment
manufacturing and it is the ability to understand the fashion business backed
by years of experience that has been a key differentiator for Pantaloon. This
knowledge has enabled the company to come up with a robust private label
programme. Private labels have a crucial
roe
to play for any retailer and especially so for a fashion chain. Having its own
labels allows the company more control and flexibility in determining style,
fashion, fabric and inventory. And ultimately, private labels help in achieving
better margins. Pantaloon has over the years been able to create, develop and
sustain a large number of its own labels, targeting men, women, kids and
infants at different price points. These have created a strong equity for the
company and Pantaloon stores today are known for differentiated products but
with a value-formoney proposition. The company reaches out to customers in the
lifestyle segment, through Pantaloons and Central and in the value segment
through Big Bazaar and Fashion Station.
Category
Performance
The
various launches under different categories in Pantaloons stores have been
described below.
MEN'S
The
category witnessed the addition of ethnic and party wear to a strong existing
western
wear
collection. The company was able to capitalize on the trend of differentiated
dressing
for diverse occasions. The category witnessed the following initiatives:
Men's
Formats
JOHN
MILLER
By
periodically introducing technically superior products at competitive price
points,
the
John Miller label as an executive attire brand was strengthened further this
year.
LOMBARD
Lombard
is usually associated with cassic English formalwear with special focus given
to
fine tailoring. The collection under this label has been upgraded resulting in
a
sharper
brand identity. Lombard's summer range emphasized 100% linen shirts and a
new
tailored fit was introduced for customers desiring a slimmer look. The brand
was
extended
to ties, watches and sunglasses. Men's Casuals, party
& ethnic wear
BARE
DENIM
Bare
Denim; one of the most successful private brands was repositioned to target the
fashion
conscious 18-35 year age segment. The selection now includes fashion forward
denims
with contemporary fits
In
order to meet the fast growing demand for party and evening wear, Pantaloons
introduced
club and lounge wear through the 'F' brand. Products include shirts, t-Shirts
and
trousers and cater to the party going 16 to 30 year age segment.
Akkriti
Men's ethnic wear is undergoing a renaissance helped by the exposure
through
films
and television soaps. To meet this demand Pantaloons extended its popular
women's
ethnic wear brand akkriti to include men's wear as well. Men's Knits
AJILE
Ajile
was re-launched with the objective of making it a trendy sports wear label for
both
men
and women.
LADIES
The
category was dominated by the demand for western formal wear for both work and
leisure.
The company has two strong brands in this space, Honey - for young women
and
Annabelle - for mature women. Ethnic wear found favour for the corporate look
as
well
as for evening and leisurewear. Mix-nmatch was also a popular trend. The rising
awareness
for fitness resulted in a strong demand for sports wear and the existing
sports
private label Ajile was successfully extended to cover women. The other
milestones for this category in
2004-05
were:
akkriti
Indo
Western fusion wear is a growing category and with akkriti we have invested in
a
whole new product range. Two innovations carried out in this category were
Ghagroo
and
QAMIZ. Ghagroo is a long skirt inspired from rustic Indian folk, introduced by
the company, Ghagroo has now become a new genre in women's clothing in the
country. The everyday humble kameez (women's traditional shirt) was also given
a fusion twist, with longer
and
slimmer silhouettes and was christened as QAMIZ. MIX-N-MATCH
The
trend in Indian wear has moved fromensembles to buying separates over the last
few
years. There is a large potential for a brand in this category, and the reason
behind
the
launch of mix-n-match. This offering allows women to'create their own looks, by
offering
them
a Vast array of choices in salwars, dupattas and kurtas as separates.
TRISHAA
TRISHAA
was introduced, for women who prefer to get their salwar kameez stitched
according
to their own personal tastes, rather than purchase it off the rack.
LADIES WESTERN
ANNABELLE
The
existing women's western wear brand for working women, extended its offering
to
provide leisurewear (Annabelle Leisure) and evening wear (Annabelle Eve) for
social
occasions.These
offerings now fulfill the needs of young working women looking for stylish,
wellcrafted western clothing for all occasions.
HONEY
The
scope of the western wear brand for young girls was increased to include party
wear
and inner wear.
CHILDREN
A
new private brand was launched in infant wear called Chalk, the brand targets
the age
segment
3-10 and is positioned as a brand for fun loving and energetic kids. Bare 7214
was
launched for the age segment 7- 14 and is for young, urban fashionable kids.
Both the
labels
cater to girls and boys. Lines in party and ethnic wear were also introduced.
STRATEGIC
DIRECTION
The
company's objective is to position Pantaloons as the preferred fashion destination
for the age segment -15 to 35. To achieve this goal, Pantaloons will churn out
fresh fashion at regular intervals and will move on from the traditional four
seasons to seven seasons. This will ensure that stores display fresh
merchandise every 45 to 60 days. The company expects to everage its
strength
in private labels to implement the above plan; this is also expected to result
in
higher
stock turns at the same time reducing markdowns and inventory. The exercise
will
be an integrated one-backed by the appropriate accessories and marketing drive.
A
strong in-house design team has facilitated the regular launch of new labels
and re-vamp
of
existing labels, this is expected to gather steam in the future as the
company moves on
to
being a fashion centric private label driven chain. In the coming years,
regular dollops
of
fresh fashion keeping in mind the Indian perspective with the right mix of
accessories
focused
at the high spending and fast growing numbers of youth is expected to
drive
revenues. International fashion and sportswear are emerging as strong product
categories. As Indians travel the world over with increasing frequency, their
buying habits are being influenced by the latest trends in the west. There is a
small but growing segment of
customers,
which is keen to patronize international lifestyle brands. The company has
entered into a strategic joint venture agreement with speciality retailer
Planet Sports Private Ltd. to cater to this demand. A leading sports and
-fashion retailer with significant presence in South East Asia, Planet Sports
is the sole franchisee for the prestigious UK based retail chain - Marks &
Spencer in India. The company also has the exclusive distribution/licensing
rights for some of the world's best-known sports brands like Wilson, Puma,
Speedo and Converse. Planet Sports currently has 6 Marks & Spencer stores
and 25 Planet Sports stores in India. It also has
the
franchisee rights for well-known lifestyle stores like Guess, Gap, Next,
Debenhams etc. Pantaloon has acquired 49 per cent stake in Planet Sports and
expects to set up multiple stores under each of the above brands in select
cities. The second offering from Pantaloon in the lifestyle segment, Central is
a showcase, seam ess mall, - the first of its kind in India.
The
mall is designed in a manner that does away with in-between walls and shops
offering customers an unobstructed and a pure shopping experience. The revenue
model is based
on
the concept of space utilization; brands pay certain fixed charges based on the
retail
space occupied. Additionally, they also pay a certain percentage of monthly
sales.
These
parameters ensure a de-risked model with the downside being protected - at the
same
time ensuring that the company gains from any upside. Central has been positioned
as a destination where one can shop, eat and celebrate. On offer are some of
the best known national and international fashion brands, food courts, fkie
dining options, book & music stores, lifestyle accessories, well-stocked
food & grocery store and more. Location plays a key role and Central is
situated at the heart of the city. Prime positioning and an array of different
facilities
are expected to cater to a large portion of the customer's shopping basket.
Pantaloon had launched the first Central in May 2004 in Bangalore; the
performance of the mall during the previous year indicated that Central has
made a strong impression on the citizens of the city. An active promotion
schedule ensured that the store became a much sought after and visited shopping
destination. At 216,000 square feet,
Hyderabad Central is the largest store belonging to the company. Six floors
house some of the best national and global brands in fashion, toys, books,
music, sports and lifestyle accessories. An entertainment zone, food court,
restaurants, music & book stores make Hyderabad Central an
irresistible destination. The store also inc udes a Food Bazaar. Pune Central
is located in the up market Bund
Garden
area, in one of the most rapidly expanding cities in India. The store occupies
over
135,000 square feet of space. In addition to strong fashion and accessories
collection, the store a so has a Food Bazaar, multi cuisine restaurants, food
court and a music store.
Life
is all about good taste and at Food Bazaar our aim is to ensure just that. For
us
food
is not just a product - its much more, its something specia . We source
responsibly,
adhering
to the highest quality standards and ensure that the freshest produce is
available
at
the most affordable rates. Our endeavor is to make life simple and more
convenient for
our
customers.
FOOD BAZAAR
Pantaloon's
food and grocery format, Food Bazaar was set up in 2002-03. Since the
launch
of the first Food Bazaar, the chain has grown to 33 stores. A large number of
these
stores are located within Big Bazaars, but given their ability to bring in
customers;
Food
Bazaars are also a part of Pantaloons, Centrals and also separate in a stand
alone
capacity.
A Food Bazaar stocks an average of 7000 stock keeping units (SKU's),
predominantly daily consumption items ranging from basic staples to detergents,
from soaps
to
biscuits. The SKU's are divided into the broad categories - staples, fresh
produce
and
branded foods, home & personal care products. Staples include groceries
like rice,
wheat,
dal, spices and oils. Fresh produce comprise of fruits and vegetables, which
are
sold loose through the concessionaire arrangement. Branded foods are the
dominant
category in Food Bazaar and include products from FMCG companies in
India.
With low prices, a wide selection of products and guaranteed freshness, Food
Bazaar
has proved to be a big draw with customers.
REVIEW OF 2004-05
Food
Bazaar made the transition from just being a grocery store to creating an
emotional
connect
with customers by significantly upgrading the shopping experience. This was
principally
due to the introduction of value added services that brought about delight as
well
as convenience to the daily shopping habits of customers. These initiatives
include:
>
Live chakki, which allows customers to buy fresh wheat and have it
ground in front of
their
eyes
>
Live bakery
>
Fresh Juice counter
>
Live dairy, this provides customers with fresh milk and milk products
>
Live kitchen, customers have the option of buying vegetables, getting them chopped,
cooked
fully or partly. Soups, salads and sandwiches are also available
>
Loose tea and coffee sourced from some of the best national gardens as well as
internationally
>
Home made pickles in loose form Launched selectively in a few stores, the above
initiatives have proven to be extremely successful and will now be an integral
part of all future Food Bazaars.
|
LOCATION |
DATE |
SIZE
(SQ. FT.) |
|
Goregaon,
Mumbai |
August
2004 |
21,000 |
|
Hi
Land Park, Kolkata |
November
2004 |
500 |
|
Kankaria,
Ahmedabad |
December
2004 |
14,000 |
|
East
Delhi Mall, Ghaziabad |
December
2004 |
10,000 |
|
Durgapur |
March
2005 |
5,000 |
|
Kandivli,
Mumbai |
May
2005 |
10,000 |
|
Thane,
Mumbai |
May
2005 |
10,000 |
|
Banashankari,
Bangalore |
June
2005 |
15,000 |
|
Sangli,
Maharashtra |
June
2005 |
6,500 |
|
Inderlok,
New Delhi |
July
2005 |
10,000 |
|
Wazirpur,
New Delhi |
July
2005 |
10,000 |
|
Vizag |
October
2005 |
10,000 |
Private
labels are an intrinsic part of Food Bazaar offering customers better value and
more
options, they also generate higher revenues for the company. Rolled out in
December 2002; the category has been able to develop a cross section of
products, which have successfully competed with some of the best local and
national brands.
|
Label |
Product |
Month
of Launch |
|
Cleanmate |
Utensil
Cleaner Concentrate |
August
2004 |
|
Cleanmate |
Glass
Cleaner |
August
2004 |
|
Cleanmate |
Dishwash
Bar |
September
2004 |
|
Premium
Harvest |
Basmati
Rice |
September
2004 |
|
Tasty
Treat |
Pickles |
October
2004 |
|
Cleanmate |
Toilet
Cleaner |
November
2004 |
|
Cleanmate |
Paper
Disposable |
November
2004 |
|
Cleanmate |
Household
Cleaner |
December
2004 |
|
Tasty
Treat |
Pa
pad |
January
2005 |
|
Tasty
Treat |
Traditional
Snacks |
February
2005 |
|
Cleanmate |
Green
Phenyl |
April
2005 |
|
Tasty
Treat |
Instant
noodles |
June
2005 |
Launching
in-house products is one thing, but ensuring that the products find
acceptability
and
continue to be viable is a lot more challenging. The category has developed the
systems; the know-how and the skills required to scale up and take a larger
share of the segment. Some of the products launched in the earlier years have
attained more than 15 per cent share of the respective categories, these
include; dais & pulses, ready mix masalas, tea, salt, glass cleaner,
hand wash, basmati rice etc. Private labels will continue to be in the news.
The category expects to double the existing revenues by launching new products
under foods, home and kitchen segments and as earlier launches stabilize and
attain a greater market share.
STRATEGIC
DIRECTION
The
past year witnessed the acceptability of modern food and grocery concept in
small
towns
and cities in India. The company had set up Food Bazaars in cities like Nagpur,
Nashik
and Bhubaneshwar during 2003- 04, the results from these stores have been
positive and subsequently stores were set up during 2004-05 in Sangli and
Durgapur. In the coming year, the company expects to consolidate its presence
in major metro cites like Kolkata, Hyderabad, Mumbai, Pune, Bangalore, Ahmedabad, Gurgaon etc where it
already has a sizeable chunk of the food & grocery market. Additionally,
Pantaloon will continue to increase its presence in other non-metro cities in
its quest to be the only national food and grocery chain. Food Bazaar has drawn
up an aggressive expansion plan. While it will continue to be
present
in all Big Bazaars and Centrals as in the past, a result of the strong brand
recall and high popularity across income segments will see a proliferation of
Food Bazaars in cities where the store already exists. This fast expansion pace
coupled with aggressivegrowth plans have enabled the company to enter into
long-term multi dimensional terms of trade with FMCG majors leading to
improvement in category margins and other initiatives like partnerships with
leading brands to understand shopper behavior and vendor managed inventories,
practices
prevalent
in the west. The company expects benefits from these measures to arise in the
coming
years. The company remains committed to meeting the twin principles upon which
Food Bazaar has been based; freshness and price. Pantaloon Food Products
(India) Ltd. a
subsidiary
has been set up to facilitate just this. The prime objective behind the
creation
of
this company is to build a food supply chain and use national scale to reduce
the intermediate links between the producing centers and the consumers
resulting in fresher
products
at lower costs. In the coming year the company will be tying up with fruit and
vegetable
collection centers across the country, this is expected to grow in scale with
time and have a positive impact on the quality of produce as well as the
prices.
SUPPLYCHAIN MANAGEMENT
The
company's s'upply chain cell ensures the smooth and safe passage of merchandise
to
various stores. This cell is also responsible for assuring quality, vendor
management,
transportation
and managing factory outlets. Pantaloon's retail formats require a supply
chain
that is flexible enough to meet their diverse requirements, e.g. in case of
fashion
the
time to market is paramount, while in general merchandise, the cost to market
is
crucial.
Keeping these varied requirements in mind, the company set up its own supply
chain
and logistics model and this model has evolved with time and circumstances.
SUPPLY CHAIN AT
WORK IN PANTALOON
The
company's supply chain design revoves around a central warehouse and city
warehouses. The central warehouse is located at Tarapur, a suburb of Mumbai,
there are 13 regional warehouses located at different cities across the
country. The company follows different mechanisms for different products under
various formats. In case of fashion in lifestyle retailing, the entire stock is
delivered to the central warehouse. The merchandise is then allocated to
different stores by the respective category teams. For first time merchandise,
the allocation is done based on studies carried out by category, which include
multiple parameters, the store's racking capacity is also considered. For
existing merchandise, replenishment orders
are
generated by the Auto Replenishment System, which takes into account the sales
of the product in the store, the stock levels amongst other factors to forecast
replenishment requirements. In addition to central buying, there is also
restricted local buying. A unique aspect of the Pantaloons supply chain is the
factory outlet. It is the last link in the supply chain model and helps remove
unsold merchandise from the stores. Factory outlets ensure that merchandise
moves only in one direction, it is also a profitable way of divesting unsold
stock. In Big Bazaar, the merchandise is delivered directly from the
manufacturer/vendor to
different
city warehouses. When the store requires any merchandise, it calls for the
same. The goods can also be distributed amongst the stores based on the
allocation done by the category manager. In Food Bazaar, most of the products
are sourced locally by each store. Perishable
products
are sourced directly from the APMC. Non-perishables are supplied directly by
the suppliers. Food Bazaar uses the supply chain infrastructure (warehousing
& transportation)
only
for replenishment of its Private Label products from suppliers located in
different
parts
of India. The company outsources inter city transport of goods to third
parties. The intra city movement of goods from the warehouse to the stores is
handled by the company's own
fleet
of vehicles. B2B connectivity was established during the year with the top
vendors; with this the company will be able to work with vendors as a single
entity eliminating duplication.
In
addition to introducing more clarity and transparency with regard to vendor
relationship, it has also increased the efficiency of the procurement process
and brought down the procurement cost. The company was able to create a costing
cell within the organization; the purpose of this cell is to arrive at the
correct cost and mark up structure for different suppliers with the objective
of ensuring savings for the consumers and fair prices for suppliers. The
cell
is equipped with specialists from each business line.
STRATEGIC
DIRECTION
The
company is in the midst of upgrading the IT set up with the first step being a
strategic
relationship
with SAP, the world's leading business software solutions provider. The company
expects to implement my SAP Business Suite, SAP Advanced Planning Tool for
Merchandise Planning and SAP Apparel and Footwear Solutions. Currently, rnySAP
Business Suite is considered to be one of the premier business solutions
providing functionality, integration, scalability and collaboration. Pantaloon
is in the process of installing CCTV's at stores, using the VPN, live feeds
from the CCTV's will be relayed to the HO and the zones for interactive
sessions between the category and the store. This will compliment the video
conferencing facility that afready exists between the stores and the HO. To
enable quicker decision-making
and
reduce the ag time, different needs of different users are being addressed
through the creation of a personalized 'dash-board'. Individua users will be
able to receive alerts based on their
profiles and categories on various aspects related to stock, sales etc. Graphs
pertaining to key performance areas will be generated enabling better control
and informed decision-making.
The
company has begun to implement fully integrated transaction system, which would
accumulate
accurate real time data as each key function of the organization performs its
day-to-day
operations, this would include merchandise management, procurement,
manufacturing,
warehousing, logistics, inventory management, store operations and
customer
management. A data warehouse and Business Intelligence Tool are in the
process
of being installed, advanced corporate planning tools that facilitate decision
making in budgeting, forecasting, space planning and inventory planning are
being put in place.
In
order to improve visibility of data across the value chain, an enterprise portal
is being set
up.
This will be integrated with the company's core transaction system providing a
common
interactive
interface to share information with all stake holders; which includes vendors,
warehouses,
stores, customers and other business partners. The company's fast
paced expansion has led to an increase in the total employee strength from 3500
in 2003-04 to over ?;000 in 2004-05. Given the pace of expansion, the company
expects the total number of
employees
to more than double by the end of the coming year. Since the sector is in its
infancy,
retail based education has yet to take off in India. To create quality
personnel
equipped
with the skills and know how to manage this growth, Pantaloon has put in
place
certain initiatives that are expected to help the company in future
recruitment.
2004-05 vs. 2003-04
• The company reported the
Operating Income of Rs. 1084.01 Millions during 2004-05, an increase of 65 per
cent over the previous year.
• Profit before interest,
depreciation and tax increased from Rs.57.14 Millions in 2003-04 to Rs.90.84
Millions in 2004-05, while profit after tax rose from Rs. 19.78 Millions to
Rs.38.55 Millions during the same period.
• Profit before interest,
depreciation and tax increased by 59 per cent and Profit after tax increased by
95 per cent over the previous year.
SURPLUS
MANAGEMENT
• The company generated a
cash profit of Rs.518.8 Millions as compared to Rs 285.7 Millionss in the last
year, registering the growth of 82 per cent. The cash outflow on account of
proposed dividend is Rs.62.7 Millions. The balance amount is ploughed back into
the business to fund the growth.
MARGINS
• Net margins improved from
3.00 per cent in 2003-04 to 3.56 percent in 2004-05.
CAPITAL
EMPLOYED
• The capital employed in
the business increased by Rs.176.84 `s in 2004-05. This is reflected in the
liabilities side of the balance sheet through an increase in borrowings by Rs.
500.9 Millions and an increase in equity by Rs. 1267.5 Millions. The ratio of
sales-to-average capital employed improved from 2.42 in 2003-04 to 2.59 in
2004-05.
CAPITAL
STRUCTURE
• The company's has
authorized capital (equity) of Rs.250.0 Millions comprising 25.0 Millions
equity shares of Rs. 10/- each.
• The paid up equity of
Rs.191.3 Millions as on 30/6/04 increased by Rs.28.6 Millions to Rs.219.9
Millions following the conversion of 2,13,547 10% Unsecured Fully Convertible
Debentures of Face Value Rs.1000/- in two tranches (on 10th October, 2004 and
15th April 2005) into 9,53,335 Equity Shares per tranche of Rs.10/- each at a
premium of Rs 102/- per share. Besides the company has also made the
preferential allotment of 9,53,653 Equity Shares of RslO/- each to Bennett,
Coleman and Company Limited at the premium of Rs 724.02/- per share
LOAN
PROFILE
• Loans increased from Rs.2361.2
Millions in 2003-04 to Rs.2862.1 Millions in 2004-05.
• The Debt-equity ratio
(Term Debt to Net Worth) stood at 0.89 in 2004-05 as compared to 1.29 in
2003-04.
• The Debt-equity ratio
(Total Debt to Net Worth) stood at 1.29 in 2004-05 as compared to 1.85 in
2003-04.
CAPITAL
EXPENDITURE
• During 2004-05, the
company incurred a capital expenditure of Rs.695.5 Millions (including addition
in WTP). The capital expenditure incurred during the year is primarily on
account of opening of new stores and modification of the existing stores
INVESTMENT
• During the year,
investment in equity shares comprised of Rs. 318.8 Millions in subsidiaries,
associates and joint ventures.
The company has liquidated
long term investments for Rs.64.0 Millions
INTRA-GROUP
TRANSACTION
• The company buys fabric
from Pantaloon Industries Limited, a group company. The pricing of the fabric
is done at the prevailing market rates. The relationship between Pantaloon
Industries Limited and the company is professional and all dealings are
conducted at arms length.
GROSS
BLOCK SIZE AND NATURE OF ASSETS
• The company's gross block
(including capital work in progress) increased from Rs 1991.5 Millions 2003-04 to Rs 2669.0 Millions in 2004-05.
• Work in progress of Rs
157.9 Millions represents on-going projects
pending completion as on 30/06/05.
• The ratio of sales-to-gross
block-has improved from 3.56 in 2003-04 to 4.32 in 2004-05.
FOREIGN
EXCHANGE EARNINGS
• Foreign exchange earnings
have increased to Rs.260.4 Millions
in 2004-05 against Rs. 115.3 Millions
in 2003-04. This amount includes Rs. 145.7 Millions on account of indirect foreign exchange earned
through credit cards certified by Bankers.
• The foreign exchange outgo
was Rs. 260.5 Millions in 2004-05 against Rs. 169.5
Millions in 2003-04. A major increase
in the foreign exchange outgo was on account of import of Capital good (Rs.
86.8 Millions). The company expects
foreign exchange outgo to increase further in line with growth plans.
RATING
• The company's Commercial
Paper has been assigned "Fl (ind)" (F one ind) by Fitch Ratings India
Private Limited.
OUTLOOK
• The outlook for the company is buoyant. With two new
line of businesses home and leisure and entertainment Pantaloon will be able to
address in excess of 60% of the customer's wallet. Besides, with more than 10
million square feet of retail space signed, the company is on for an aggressive
roll out. The company has also expanded its formats by acquiring 49%
stake in Planet Sports Private Limited and
introducing, Fashion Station, aLL and Mela. With the AMC business through PFH
Investment Advisory Company Limited, Pantaloon is participating in the property
space. The consumer sentiment in India is rising by the day, this is reflected
in same store growth of around 30% in value retailing and around 19% in
lifestyle
retailing in August 2005 and that is encouraging. As a
company we are confident than ever before and want to make the most of the
first mover advantage.
THE
YEAR IN RETROSPECT
NEW
RETAIL CONCEPTS
Fashion Station Fashion ka
big bazaar The company during the year launched "Fashion Station" a
new format in Value Retailing. It deals with fashion categories of Big Bazaar
& some private lables of Pantaloons. It stocks private labels apparel of
Big Bazaar stores and
other private label of
fashion merchandise will be developed over a period of time. First store of
this kind was opened in Mulund, Mumbai. The store is positioned between Big
Bazaar & Pantaloons that caters to the 'Youth' wanting affordable fashion.
The store will be developed as smaller big bazaar for fashion merchandise. The
store is a higher store margin than Big
Bazaar and will be competing
with other departmental stores in fashion merchandise. The company has
aggressive roll out plan for Fashion Station.
STRATEGIC
INVESTMENT
PLANET
SPORTS PRIVATE LIMITED
Pantaloon, formed up a
strategic Joint Venture Agreement (JVA) with the renowned speciality retailer
Planet Sports during the year. The company has subscribed to 49 per cent
equity in Planet Sports
Private Ltd. Supreme Tradelinks Private Limited a wholly owned
subsidiary of Planet Sports
Private Limited is the sole franchisee of the prestigious UK-based retailer :
Marks and Spencer in India. It also has the exclusive distribution/ licensing
rights for well-known brands
including Wilson, Puma, Speedo, Converse, Guess & Planet Sports, among
others.
GALAXY
ENTERTAINMENT CORPORATION LIMITED
PRIL has taken 15.73 % stake
in Galaxy Entertainment Limited through preferential allotment. Post
subscription, Pantaloon is likely to come out with a mandatory 20 per cent open
offer to the shareholders of Galaxy Entertainment Limited. The draft offer
letter is pending before SEBI for their approval as on the date. Galaxy owns
and operates Sports Bar, Bowling Co. and Rain
Restaurant in Mumbai. Growth
in entertainment, food & beverages, leisure business will be facilitated by
the strong presence and availability of prime space that Pantaloon has in malls
across the country. Galaxy Entertainment Corporation Limited will also gain from
the management bandwidth that Pantaloon has.
FOOTWEAR
JOINT VENTURE
The company is proposed to
enter into Joint Venture with Liberty Shoes Limited for setting up a chain of
stores for retailing of footwear and other accessories. The proposed Joint Venture
will combine the retail expertise of the company and design sourcing and
merchandising expertise of Liberty Shoes Limited. This will provide a focused
attention to footwear category, which commands a sizeable portion of the
consumer spending. The company will hold
51% and Liberty will hold
49% stake in the new company.
TIE
UP WITH EDUCATIONAL INSTITUTIONS FOR CREATING
STRONG
MANAGEMENT BANDWIDTH FOR THE FUTURE
Retail is still in a nascent
stage in the country and professionals with expertise in this field are few.
With a view to creating a strong management base, the company has tied up with
some renowned educational institutions like Somaiya Institute of Management
Studies & Research &
Welingkar Institute of
Management Development & Research. Under an exclusive tie up with PRIL,
these institutions admit using stringent admission procedures candidates from
all across the country. These candidates are then exposed to quality academic
inputs from the institutions and practical on the job experience from PRIL. At
the end of the duration of the course all candidates are expected to be
absorbed by the company. The first such batch
of 35 students will be
inducted into PRIL management ranks during the course of this financial year.
In the coming years, the number of students coming through these courses is
expected to increase
significantly.
ISSUE
OF PREFERENTIAL EQUITY DURING THE YEAR
Your Company had made a
preferential allotment of 9,53,335 equity shares of 10/- each at premium of Rs.
102 /- per share on 26th October 2004 to promoters and associates on
conversion of first tranche
of 10% 2,13,547 unsecured fully convertible debentures of Rs. 1000/- each
issued on llth November 2003. Company had made a preferential allotment of
9,53,653 equity shares of Rs. 10/- each at a premium of Rs. 724.02 per share to
Bennett, Coleman & Company Limited on llth February 2005. The second
tranche of conversion of unsecured fully convertible debentures into 9,53,335
equity shares of Rs. 10/- each at a
premium of Rs. 102/- per share
to promoters and associates was made on 15th April 2005.
RIGHTS
ISSUE
The Board of Directors in
their meeting held on August 24, 2005 approved rights issue of one equity share
for every five shares held by shareholders in the company at price of Rs.500/-
per share. A total of Rs. 2240.5 Millions will be mobilized through the issue
will be utilized for the expansion plans of the Company.
I
MAGE AWARDS 2005 FIXED DEPOSITS
Image Awards ceremony is
held every year to recognize the companies that have made a significant impact
in the Indian retailing environment both from the consumer and industry
perspective. This year your
cortfpany has won five awards. The categories in which the awards were won are
as follows: a) Retailer of the Year: Food & Grocery- Food Bazaar b)
Retailer of the Year: Value Retailing- Big Bazaar c) Most Admired Retailer of
the Year- Pantaloon Retail (India) Limited d) Retail Launch of the Year-
Central e) Retail Face of the Year- Kishore Biyani
THE
FUTURE
The company has drawn up an aggressive
expansion plan for the future. Total retail space at the end of 2004-05 stood
at over 1.9 million square feet with around 1 million square feet
being added in the year
under review. The company will further step up the pace of expansion and based
on the space currently signed expects 3.5 million square feet to be operational
by June 2006 and 7 million square feet by June 2007.
SUBSIDIARY
COMPANIES
During the year the
following companies became subsidiaries of the Company. a)Home Solutions Retail
(India) Limited was incorporated on October 4, 2004 to offer solutions in home
furnishings, furniture, consumer durables, etc. The company has 66.66% stake in
Home Solutions Retail (India) Limited. b) PFH Investment Advisory Company
Limited was incorporated on December 31, 2004.The main business of PFH
Investment Advisory Company Limited is to carry on the business of providing
financial investment advisory services, management and facilitation services.
The company has-76.00% stake in PFH Investment Advisory Company Limited.
c) PAN India Restaurants
Limited was incorporated on February 7, 2005. The main business of PAN India
Restaurants Limited is to carry on the business of quick service restaurants
and food courts through restaurants, food court, hotels, eating house etc. The
company has
98.46% stake in PAN India
Restaurants Limited.
d) Pantaloon Food Product
(India) Limited was incorporated on April 13, 2005. The main business of supply
of Food products. The company has 100.00% stake in Pantaloon Food Product
(India) Limited.
|
NAME OF SUBSIDIARY COMPANY |
% OF HOLDINGS AS ON 30/06/2005 |
|
Home Solutions Retail (India) Limited |
66.66% |
|
Pantaloon Food Product (India) Limited |
100.00% |
|
Pan India Restaurants Limited |
98.46% |
|
PFH Investment Advisory Company Limited |
76.00% |
INTERNET
ACCESS: WWW.PANTALOON.COM
The website of the Company contains all relevant
information about the pantaloon family. The Annual Reports, Shareholding
pattern, unaudited quarterly results and all other material information are
hosted in this
For
Any Details & Queries Pls Contact :
Head
Office(Mumbai) - Food Bazaar Division
Contact
Person:
Mr.Haresh AS
Email
Id:
haresh.as@pantaloon.com
Food
Bazaar - Kolkata - VIP Road
Contact
Person:
Mr. Dinesh Sharma
Email
Id: dinesh.sharma@pantaloon.com
Food
Bazaar - Kolkata - Camac Street
Contact
Person:
Mr. Anurag Satija
Email
Id: anurag.satija@pantaloon.com,
Food
Bazaar - Kolkata - Alipore
Contact
Person:
Mr. Ajay Dwivedi
Email
Id: ajay.dwivedi@pantaloon.com
Food
Bazaar - Hyderabad
Contact
Person:
Mr. Jagannadha Rao
Email
Id:
jaganadha.r@pantaloon.com
Food
Bazaar - Bangalore
Contact
Person:
Mr.Sunil Bhandari
Email
Id:
sunil.bhandari@pantaloon.com
Food
Bazaar - Lower Parel (Mumbai)
Contact
Person:
Mr.Chandru Mansukhani
Email
Id:
chandru.mansukhani@pantaloon.com
Food
Bazaar - Mulund (Mumbai)
Contact
Person:
Mr.Ashar Khan
Email
Id:
ashar.khan@pantaloon.com
Food
Bazaar - Gurgaon
Contact
Person:
Mr.Prashant Paul
Email
Id:
prashant.paul@pantaloon.com
Food
Bazaar - Ahmedabad (Law Garden)
Contact
Person:
Mr.Sunil Kumar
Email
Id:
sunil.kumar@pantaloon.com
Food
Bazaar - Ahmedabad (Satellite)
Contact
Person:
Mr.Bimal Shah
Email
Id:
bimal.shah@pantaloon.com
Food
Bazaar - Vashi (Mumbai)
Contact
Person:
Mr.Ravi Addanki
Email
Id:
ravi.addanki@pantaloon.com
Food
Bazaar - Nagpur
Contact
Person:
Mr. Manish Singh
Email
Id:
manish.singh@pantaloon.com,
Food
Bazaar - Bhubaneshwar
Contact
Person:
Mr. Pinaki Ghosh
Email
Id:
pinaki.ghosh@pantaloon.com
Food
Bazaar - Nasik
Contact
Person:
Mr.Naveen Kumar
Email
Id:
naveen.kumar@pantaloon.com
Food
Bazaar - CENTRAL - Bangalore
Contact
Person:
Mr. Arun George
Food
Bazaar Mumbai - Goregaon
Contact
Person: Mr.
Ayshwarya Kalyan Raja
Food
Bazaar Mumbai - Lokhandwala
Contact
Person: Mr.
Manoj Nair
Food
Bazaar Mumbai - Malad
Contact
Person: Mr.
Prathmesh Shroff
Food
Bazaar Ahmedabad (Kankaria)
Contact
Person: Mr.
Kamlesh Parani
Food
Bazaar Ghaziabad - EDM
Contact
Person: Mr.
Bharat Khare
Food
Bazaar Bangalore - Hosur Road
Contact
Person: Mr.Sunil
Bhandari
Food
Bazaar Hyderabad - Central
Contact
Person: Mr.
Neil Armstrong
Food
Bazaar Kolkata (Hiland Park)
Food
Bazaar Lucknow
Food Bazaar represents the
Company’s Entry into Food retail. This Section offers fresh vegetables, fruits
, grocery, edible oils, species, FMCG products, milk products, juices, tea,
sugar, pluses, rice, wheat, home care products, ready to cook, personal care
products, ready to eat, frozen foods and beverages, dry fruits, and over 50000 SKU’s per store to demanding Indian consumers.
CMT REPORT [Corruption, Money laundering & Terrorism]
The
Public Notice information has been collected from various sources including but
not limited to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION
ON DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.
2] Court
Declaration :
No records exist to suggest that subject is or was the
subject of any formal or informal allegations, prosecutions or other official
proceeding for making any prohibited payments or other improper payments to
government officials for engaging in prohibited transactions or with designated
parties.
3] Asset
Declaration :
No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.
4] Record
on Financial Crime :
Charges or conviction registered
against subject: None
5] Records
on Violation of Anti-Corruption Laws :
Charges or investigation registered
against subject: None
6] Records
on Int’l Anti-Money Laundering Laws/Standards :
Charges or investigation registered
against subject: None
7] Criminal
Records
No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.
8] Affiliation
with Government :
No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.
9] Compensation
Package :
Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.
10] Press Report :
No press reports / filings exists on the subject.
CORPORATE
GOVERNANCE
MIRA
INFORM as part of its Due Diligence do provide comments on Corporate Governance
to identify management and governance. These factors often have been predictive
and in some cases have created vulnerabilities to credit deterioration.
Our
Governance Assessment focuses principally on the interactions between a
company’s management, its Board of Directors, Shareholders and other financial
stakeholders.
CONTRAVENTION
Subject
is not known to have contravened any existing local laws, regulations or
policies that prohibit, restrict or otherwise affect the terms and conditions
that could be included in the agreement with the subject.
FOREIGN
EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US
Dollar |
1 |
Rs. 44.93 |
|
UK
Pound |
1 |
Rs. 83.82 |
|
Euro |
1 |
Rs. 57.35 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
64 |
This score
serves as a reference to assess SC’s credit risk and to set the amount of
credit to be extended. It is calculated from a composite of weighted scores
obtained from each of the major sections of this report. The assessed factors
and their relative weights (as indicated through %) are as follows:
Financial condition (40%) Ownership background (20%) Payment record (10%)
Credit history (10%) Market trend (10%) Operational
size (10%)
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely
sound financial base with the strongest capability for timely payment of
interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate
working capital. No caution needed for credit transaction. It has above
average (strong) capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial &
operational base are regarded healthy. General unfavourable factors will not
cause fatal effect. Satisfactory capability for payment of interest and
principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is
considered normal. Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable &
favourable factors carry similar weight in credit consideration. Capability
to overcome financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are
apparent. Repayment of interest and principal sums in default or expected to
be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk
exists. Caution needed to be exercised |
Credit not recommended |