Omganeshaynamaha:

Leaders speak

Mr. Anant Maloo, Managing Director, Timbor Home Ltd.

Timbor Home Ltd. is a manufacturer-retailer having a pan-India presence with more than 80 exclusive stores of kitchen, door and furniture retail outlets operating on a Franchise model. The Company is one of the major retailers and manufacturers of durable, affordable yet trendy modular kitchens in India.The top line is growing at 60% in last 5 years and the industry is growing at 30% The total manufacturing facility of the Company amounts to 200,000 sq. ft. It manufactures kitchen & kitchen components, furniture, door & door frames, kitchen baskets and accessories. key strengths The manufacturing facilities, processes and 360 degree integration are our key strengths. The only thing that they buy from outside are the hardware components from Germany s Hettich. They don t have a distributor or a dealers; to give them tremendous flexibility in pricing. The modular kitchen market is growing at 50% per annum. So, they hope to the opening up of the institutional market. We have started furniture retailing in Ahmedabad. We have received a couple of enquiries. We are in talks with a couple of builders. Once a few builders start providing modular kitchen, others will follow suit. What will be the main challenges? Modular kitchen and home furniture is a consumer centric business. So, service is of prime importance. One has to have the pulse on the consumers changing needs. Keeping customers happy is the biggest challenge. How fast we can adopt new designs and implement them for our customers will also be crucial for us. We also have to keep in mind the way kitchen is utilised in India. How fast we can replicate our model in the non-metro regions will also be a key challenge. we will go for either Rental or Shop-in-Shop or Revenue Sharing format.

How do you see threat from the unorganized sector and imports? The Indian furniture market is worth over Rs. 400bn; 85% of that is still in the unorganized space. So, the untapped unorganised market is huge and is waiting to be exploited. Organised

retail is also growing and the furniture industry is also growing. The shift from the unorganized segment has already started, especially among the young people.

Mr. Vijay Bansal, Chairman and Managing Director, Cantabil Retail India Ltd, is the founder promoter of the Company. He has been instrumental in strategic planning and business development of our company including establishment of the Brand Cantabil and La FANSO. He is responsible for the overall management and supervision of the business of the Company.

Cantabil Retail India Ltd., is in the business of designing, manufacturing, branding and retailing of apparels under the brand names of Cantabil and La FANSO. With a network of 411 exclusive retail outlets spread across India. Cantabil started its garments manufacturing and retailing business in 2000 and opened our first Cantabil store on September, 2000 in New Delhi. The Cantabil brand with 206 exclusive retail outlets offers the complete range of formalwear, party-wear, casuals & ultracasual clothing for Men, Women and Kids in the middle to high income group. Cantabil has fabricating arrangements with 94 manufacturing units to which we outsource cutting and stitching. How many retail outlets do you own? Today we have 411 exclusive networks across India which includes 270 retail outlets under the brand Cantabil and 141 retail outlets of La FANSO. We have developed a wide network of exclusive brand outlets across metros, tier I and tier II cities in India. We operate our outlets under two models either Company-owned and Lease managed and "Franchisee managed or franchisee owned and operated. At present, 143 stores are company-owned while the rest are franchisee. Tell us about your brand Cantabil and La FANSO? We are retailing the apparels under the two brands namely Cantabil and La FANSO. At present we have 411 retail outlets of which 270 retail outlets are under the brand Cantabil and 141 retail outlets are under the brand La FANSO. How many manufacturing facility do you have? The company has three in-house manufacturing facilities and four warehouses and fabricating arrangements. We have in-house manufacturing facility for 13 lakh garments per annum. We depend on third party fabricators for performance of some of the processes in the apparel manufacturing which includes cutting, stitching, washing and finishing. We have at present arrangements with 94 fabricators / third party manufacturers in NCR region. How do you source your raw materials? We source our raw material, including Fabric, from third party suppliers. Our main raw material fabric constitutes a significant part of our cost and total lead time. Who are your main competitiors? We face competition from other apparel brands present in the market. The manufacturing and retail industry is highly competitive and fragmented. The presence of Indian and International branded apparels

in the marketplace has created tremendous competition in the apparel industry and the dynamics of industry are also changing, consequent to such structural changes

Deva Jyotula, Centre Manager, KORUM KORUM is the citys retail mall by Kalpataru Retail Ventures Pvt Ltd, a Kalpataru Group company, which has emerged as a cultural as well as info-tainment centre in a short span of two years since its inception. KORUM has set a benchmark with its lions share towards the cultural revaluation in the city, through its unique initiative such as Art Show dedicated to the iconic art from Orissa called Patachitra, Summer Champ, a bonanza for the kids, Soccer Frenzy during the FIFA world cup. KORUM is a one-stop destination for fashion, lifestyle, food, and entertainment leading to an international shopping experience for families in Thane and neighboring suburbs of Mumbai. Brief us about the KORUM mall and its USP? KORUM, is designed as citys largest Lifestyle destination, catering to Shopping, Entertainment, food and Leisure needs for over 1.75 million people. Developed by Kalpataru Retail Ventures Pvt Ltd, a Kalpataru Group company, this retail mall in Thane is one of the largest in Central suburbs. The mall pampers its customers with huge options in premium and lifestyle shopping of international and local brands along with a huge hyper market,1000 + seat cinema, departmental store, FEC, Food court, Cafes and Restaurants, catering to the diverse range of tastes of its customers. What is your outlook for the retail sector? The retail scenario is one of the fastest growing industries in India over the last couple of years. India retail sector comprises of organized retail and unorganized Traditionally the retail market in India was largely unorganized; however with changing consumer preferences, organized retail is gradually becoming popular. Huge population, increasing per-capita income and changing consumer habits - all these developments have culminated in the booming of the retail sector in India. The mall culture has gripped Indians and they seem to love every bit of it. Quality malls like Korum are not only emerging as shopping destinations but also as active community spaces. The Indian retail sector is stated to see resurgence in 2011. With positive signs of FDI opening up, many international retailers would venture into India. Almost all large companies worldwide are looking to establish a base or stake in the Indian market. Speciality retail stores and malls are the future of Indian organised retail market. In the near future India will see a phenomenal growth of shopping malls and speciality retail stores. On the other hand, retailers would continue to expand beyond Tier I and reach Tier II and Tier III cities. What impact do you see with 10% excise duty on branded garments? The excise of 10% on branded garment and the concerns are more at an industry level rather than at a company level. It means increase in the cost of garments. All the fiber prices have almost doubled, hence, that increase coupled with excise would make the garment more expensive now. Retail and textile both are revising and it is untimely, had it been planned with the entire value chain, perhaps the impact would have been partly lower. It is difficult to assess at this point of time but whatever is the increase would it, will get passed on to the customer ultimately. How many channel partners are you likely to add this year? KORUM has 130+ channel partners including prominent local and international brands. INOX, Westside, Star Bazaar, Reliance Trends, Reliance Digital, @Home, Timezone, Reliance Timeout, Tommy Hilfiger, Jack & Jones, Reebok, Nike, Puma, Total Sports, Timberland, United Colors of Benetton, Giordano, Fabindia, Jashn, Louis Philippe, Allen Solly, Mom and Me, KFC, Panchvati, Bikaji,Kailash Parbat, CCD, Costa Coffee etc are few among the prominent brands. There would be around 10-15 channel partners that are likely to be added this year. What is the total area for KORUM mall? The mall has around 10 lakhs sq ft. built up area which includes car park area. The gross leasable area is 4.2 lakhs sq ft. and carpet area is 2.8 lakh sq ft. Who are your target clients? We have two sets of clients. Firstly, the Retailers and brand across all categories of Fashion, footwear, accessories, FEC, F&B, hypermarket and movies. Secondly, our customers who visit the mall for shopping, entertainment and leisure from all the catchments areas.

Do you expect retail rental rates to increase further? The growth of consumerism in India has been blessed by the consistent growth of economy, rapid urbanization rate, rise in disposable incomes, favourable demographics and availability of easy credits. Apart from high income group, middle class people now are keen for value retailing instead of low-cost retailing. The demand for a superior shopping experience is also evident in the metropolitan cities. These factors have attracted retailers to open more stores in malls thus the demand for retail rental space has gone high and the trend will continue for all quality retail real estate.