2. Late one afternoon of March 2010 Ashesh Jain, the director of CETL, had just concluded a
meeting with his management team which included the CMO, CFO and Project Head at the
head office located in Mittal Towers in Nariman Point, the premier business district in Mumbai.
The CMO, Mrs. Sangita Jain had just presented a detailed marketing plan for their new
shopping centre venture namely Khandesh Central which was finding it difficult to find tenants
for its floor space.
On that very day Ashesh had invited his advisors to discuss how they could help him wriggle out
of this potentially disturbing situation which showed all promises to turn into a gigantic mess.
As he looked across the hallway leading into the conference room in which they were having
the discussion, Ashesh told the advisors that he needed them to help him out.
As the meeting ended Ashesh came back to his original thoughts of how to come up with a
solution that would put Khandesh on the fast track to success. He knew the job was difficult
since work had to carry on at the site which was binding up a lot of cash.
BACKGROUND OF CETL
Crescent Entertainment & Tourism Ltd was formed primarily with the intention of developing
the Khandesh Mill property in Jalgaon, Maharashtra.
The Khandesh Mill Property was a defunct spinning and rolling mill. The entire property
measures approximately 47acres and is centrally and strategically located in the heart of the
city. The mill property is adjacent to the railway station, about 1.5 km from the new S.T. Bus
Stand & the Gaothan area of Jalgaon where traditional gold market thrives. The Jalgaon
Municipal Corporation office, commercial complexes, wholesale and retail markets, etc are in
the close proximity of the property.
2
3. Vijay Ramakrishnan CFO of CETL, revealed that in 1985 the mill got into liquidation due to
sustained inefficiencies. CET: acquired the property after the original owners cleared the dues
in court, freed the property of liquidation. Due to proximity to the railway station & its
prominent location in the heart of the city, the owners of the property from time to time have
developed and leased parts of property abutting the roads. However, in view of the perceived
potential of the site, CETL decided to undertake comprehensive redevelopment of the mill and
the first seeds of Khandesh Central were sown.
The real estate and retail business is however a fairly new territory for CETL, as it is a start up
and the promoters core expertise lies in manufacturing chemicals. As enumerated by Ashesh,
being a family owned enterprise and decision making fairly centralized the company is still fairly
unstructured. The company is being led primarily based on the vision of Ashesh and thus a
stable management cadre with well defined responsibilities/KPI, is not in place.
INTEGRATED RETAIL DEVELOPMENT IN INDIA.
The Indian retail market, which is the fifth largest retail destination globally, has been ranked as
the most attractive emerging market for investment in the retail sector by AT Kearney's eighth
annual Global Retail Development Index (GRDI), in 2009. As per a study conducted by the Indian
Council for Research on International Economic Relations (ICRIER), the retail sector is expected
to contribute to 22 per cent of India's GDP by 2010.
With rising consumer demand and greater disposable income, the US$ 400 billion Indian retail
sector is clocking an annual growth rate of 30 per cent. It is projected to grow to US$ 700 billion
by 2010, according to a report by global consultancy major Northbridge Capital. The organized
business is expected to be 20 per cent of the total market by then. In 2008, the share of
organized retail was 7.5 per cent or US$ 300 million of the total retail market. A McKinsey
report, 'The rise of Indian Consumer Market', estimates how the Indian consumer market is
likely to grow four times by 2025.
3
4. India continues to be among the most attractive countries for global retailers. Foreign direct
investment (FDI) inflows as on September 2009, in single-brand retail trading, stood at
approximately US$ 47.43 million, according to the Department of Industrial Policy and
Promotion (DIPP).
As a democratic country with high growth rates, consumer spending has risen sharply primarily
due to the fact that young population (more than 33 percent of the country is below the age of
15) has seen a significant increase in its disposable income. Consumer spending rose an
impressive 75 per cent in the past four years alone. The organized retail sector, which currently
accounts for around 5 per cent of the Indian retail market, is all set to witness maximum
number of large format malls and branded retail stores in South India, followed by North, West
and the East in the next two years. Tier II cities like Noida, Amritsar, Kochi and Gurgaon, are
emerging as the favored destinations for the retail sector with their huge growth potential.
Further, this sector is expected to invest around US$ 503.2 million in retail technology service
solutions in the current financial year. This could go further up to US$ 1.26 billion in the next
four to five years, at a CAGR of 40 per cent. Buoyed by improved consumer spending, sales of
listed retailers increased by 12 per cent in the September 2009 quarter compared with the
same period in 2008.
Policy Initiatives:
• 100 per cent FDI is allowed in cash-and-carry wholesale formats. Franchisee
arrangements are also permitted in retail trade.
• 51 per cent FDI is allowed in single-brand retailing.
According to industry experts, the next phase of growth is expected to come from rural
markets. According to a new market research report by RNCOS titled, 'Booming Retail Sector in
India',
4
5. • Number of shopping malls is expected to increase at a CAGR of more than 18.9 per cent
from 2007 to 2015.
• Rural market is projected to dominate the retail industry landscape in India by 2012 with
total market share of above 50 per cent.
• Organized retailing of mobile handset and accessories is expected to reach close to US$
990 million by 2010.
• Driven by the expanding retail market, the third party logistics market is forecasted to
reach US$ 20 billion by 2011
PROFILE OF JALGAON
Geographical settings:
Jalgaon, an important trading and distribution centre of tea, gold, pulses and other agricultural
produce in North Maharashtra is situated at 21.05 N Latitude and 75.40 E Longitude. (Refer
Exhibit 1). Jalgaon is a district headquarters and located within a productive and irrigated
agricultural region in northern Maharashtra commonly known as Khandesh. Jalgaon district is
bounded by West Nimar and Badhwani districts of Madhya Pradesh in the north direction,
Dhulia district in west, Nasik district in south west, Aurangabad in south and Buldhana in the
east.
The region is famous for the production of pulses & bananas, major cash crops for the farmers.
Jalgaon district has the distinction of contributing to 40% of the total banana production of the
country. The region has rich agricultural hinterland and Jalgaon acts as a node for trade and
commerce activities of Khandesh region. The leading products produced here are millet and
raw cotton; the region's rich volcanic soil is particularly well suited to cotton production.
Jalgaon district has an area of about 11,700 sq km and a population of about 4.0 million. The
district has some well known temples like Padmalaya, Manudevi and Patnadevi. The major
tourist attractions are Pal hill station at Raver, Patnadevi temple at the confluence of Tapi and
5
6. Purna rivers, hot water springs at Unapdev in Chopda Taluka. The World famous Heritage site
Ajanta Caves are approximately 60 km form Jalgaon City.
Linkages and connectivity:
Jalgaon is an important business destination from major cities like Mumbai, Nagpur, Pune,
Surat, Bhopal etc and is within 8-10 hours drive from most of them, having excellent rail and
road connectivity with the same.
Jalgaon is a major rail junction on the Mumbai – Howrah main line. A rail link also connects
Jalgaon to Surat in Gujarat. Jalgaon is connected to Mumbai by NH3, to Dhulia, Nagpur and
Kolkata by NH6 and to Aurangabad-Pune by State Highway. The city is also linked to other
important towns in Jalgaon district by major district roads like Mohadi Road, Avanhe Road,
Asoda – Khedi Road and Jalgaon Nimkhedi Road.
Population of Jalgaon:
The working population (i.e. population in the age group from 15 to 59) in Jalgaon is 56.35 % of
the total population. The city has youthful population with about 75% people below 40 years of
age.
The work participation ratio of Jalgaon is 30%. This indicates that the ratio of working
population to non working population (dependent population) is nearly equivalent to 1:2,
which is an indication of greater probability of availability of disposable income. As the
dependent population includes population under the age of 18 years and above the age of 60
years, and also the non working population in the age group of 18 to 60 years, this ratio of
under 1:2 indicates better economic situation of the society as a whole. (Refer exhibit 2). The
working population ratio for some other cities like Nasik, Pimpri, Chinchwad, Pune is 33.97%,
34.5% and 34.1% respectively. Jalgaon is not far behind these cities.
Social infrastructure:
6
7. Jalgaon being a district headquarter serves as destination for higher order health and education
facilities for the entire district. Jalgaon has 6 colleges imparting engineering (degree / diploma)
courses and one college imparting management course. Jalgaon also has arts, commerce and
science degree college. Jalgaon has a civil hospital built by the Municipal Corporation. There are
several private clinics and hospitals in the city. Majority of the private clinics and hospitals are
located near Bhaskar Market area.
Jalgaon has large number of hotels and dormitories. Apart from a few hotels majority are in the
budget category. Majority of visitors in these hotels are on business trips.
Jalgaon is grossly deficient in terms of leisure and recreational activities. The city has only two
parks (Gandhi Park – near new S T Stand and Mehrun Park – near Mehrun Tank). The city has a
couple of playgrounds and a stadium is under construction. Jalgaon has five cinema halls.
Majority of these have poor seating facilities and sound systems and are not maintained well.
Growth direction of the City:
Jalgaon has limited expanse. All the major retail and commercial activities are located in the
heart of the city. The outer areas on the east, north and southern sides of the city are
predominantly residential areas. The MIDC area is on the east of the city. The prime residential
areas are located in south and south-west of the city.
The growth direction of the city is predominantly towards west and the south. New residential
developments are coming along NH6 and Pimprala Road in the west and along Mohadi road
and Shirsoli Road in the south.
Opportunities:
Despite being a major trading and business centre Jalgaon lacked a mall type retail
development. Prevalent retail typologies are traditional markets and commercial complexes
with a composite development of shops on the ground floor and offices above. Also Jalgaon
does not have any major national / international brand operating in the city (in the apparels,
footwear and jewellery categories) and not even a single commercial centre that gives a
7
8. wholesome shopping experience. Thus CETL decided to develop a regional destination and
community centre “Khandesh Central” offering space for leisure, shopping, food,
entertainment, hotels, restaurants, multiplex, services, farmers market and fitness covering
550,000 sq ft in Jalgaon.
The project is the first and only project which is coming up in the catchment comprising the 9
districts of Jalgaon, Dhule, Buldhana, Akola (Maharashtra) & Nandurbar, Khandwa, Burhanpur,
Barwani and Khargaon (MP). According to the estimates of the promoters, the project would be
catering to about 2.25 crores people of this region. This ‘all-in-one’ destination is located in the
heart of Jalgaon City at the cross section of the M.G Road and Jilha Road and is adjacent to the
Railway Station.
A comprehensive tenant mix offering a range of products, services and activities will form a part
of the project. The project would provide composite infrastructure and amenities like adequate
car parking, pantry on each floor, fire fighting systems, power supply, generator power back up,
common lighting, water pumps and 24 hr. security, to name a few. A large demand exists from
the population of this region for such a project as suggested by various surveys. The center is
designed to host brands catering to all income groups and would become the hub for leisure,
shopping and entertainment at Jalgaon. CETL is investing Rs.162 crores in the project by way of
Equity (102crores) and debt (60crores).
8
9. CUSTOMERS, CONSUMERS AND COMPETITORS
Being an integrated ‘all-in-one’ destination, the project would offer a platform for National /
International retailers who intend to reach out to the target catchment area which comprises
the 7 districts as mentioned above. Thus these national, international and local retailers are
CETL’s prospective customers. Their customers in turn are the consumers, therefore it becomes
imperative to understand the consumer’s needs.
Consumer survey:
Ashesh describes how much effort he and his team had put in while coordinating with Jones
Lang Lasalle Meghraj to conduct an in-depth survey of the market, namely Jalgaon. As it was a
huge decision for them, moving out from his traditional business of chemicals to the more risky
retail format, this study had to be accurate to justify the huge amount of investment the project
demanded.
The study showed that in Jalgaon and adjoining areas 83% of the shoppers do their shopping
near their residence, 15% near their work place and 2% at other places. The frequency of
indulging in watching movies or eating out is very less. Majority of respondents watch movies
once in three months, while the frequency of eating out is once in a month. A large number of
respondents do not indulge in watching movies (in cinema halls) and eating out at restaurants.
Poor patronage for leisure and entertainment facilities could be attributed to non availability of
good cinema halls and eating outlets in the city rather than willingness and spending power of
the people.
Majority of shoppers spends up to INR 500 per month on each shopping, leisure and
entertainment activities. (Refer exhibit 3A). The retail property market in Jalgaon has not
developed in terms of presence of national brands, ambience and destination. In leisure and
entertainment too, the city offers limited options. These could be cited as the major reasons for
minimal expenditure in shopping and pursuing leisure and entertainment activities.
9
10. Pricing of goods / services, comfort, location (convenience) and ambience (in descending order)
have emerged as the important factors for shopping, leisure and entertainment activities.
(Refer exhibit 3B). On the other hand pricing of goods / services, novelty, brand loyalty, shop
loyalty and discount schemes (in descending order) have emerged as the attraction criteria for
shopping, leisure and entertainment activities.( Refer exhibit 3C) It is observed from these
illustrations that the shoppers in the city are price sensitive. Also the people’s attraction for
novelty may benefit the first retail mall type development in the city.
Shopping centre with moderately priced goods is the most preferred shopping format for
majority of the population. High street shops and shopping centre with branded products are
the other formats favored by the respondents. (Refer exhibit 3D)
The shoppers have expressed a good response for a mall development and have expressed
their willingness for visiting the proposed development once it is operational. (Refer exhibit
3E& 3F)
Majority of the respondents would prefer a mall with multiplex type of development. They
echoed a strong opinion for presence of moderately priced products and local products in the
proposed retail development. (Refer exhibit 3G)
It was observed that the city has a sizeable amount of population that could be classified the
consuming class who have sufficient disposable income for spending on consumer durables and
consumer non durables (Refer Exhibit 3H).
Retailer’s Survey Analysis:
10
11. The per capita organized retail space in Jalgaon is about 1.5 sq ft per person. This figure is less
than the national average of organized retail space, which stands at 2.0 sq ft, per person. Thus
Jalgaon has a fair distance to go in terms of organized retail markets.
Considering the fast growth of organized retail in the country in the last year, it was estimated
that the organized retail would prosper in the coming years. This phenomenon would certainly
have a bearing on the retail markets of Jalgaon.
• Majority of retailers felt that a mall development would be well received by population
of the city. About 70% retailers have shown willingness in buying space in the proposed
retail development. (Refer Exhibit 4A)
• Apparels (men’s wear and ladies wear), electronic goods, jewellery, consumer durables,
mobile phones and accessories, grocery, food (sweet mart, refreshments), interior
finishes, furnishings and medicine / pharmacy emerged as the favored categories in the
proposed retail development. (Refer Exhibit 4B)
• Majority of retailers (29%) showed preference for shop sizes ranging from 201 sq ft to
500 sq ft. About 22% retailers preferred larger shop sizes ranging from 1001 sq.ft to
2000 sq.ft. (Refer Exhibit 4C)
• Major chunk of retailers preferred shops located on the ground floor. (Refer Exhibit 4D)
• Majority of retailers prefer owned properties rather than leased properties. (Refer
Exhibit 4E)
• Majority of the retailers operated from shops in the range of 210 sq ft to 500 sq ft. Also
a sizeable number of retailers (25%) operate from large premises in the range of 1001 to
2000 sq.ft. (Refer Exhibit 4F)
Competitor Analysis
11
12. Jalgaon being the trade and business hub of the entire Khandesh region has an active
retail market. All the retail activities are predominantly located in the heart of the city.
The predominant retail topology observed in Jalgaon is commercial complexes and high
retail along major streets in the heart of the city. All the commercial complexes are
composite developments with retail on the lower floors and commercial (office) spaces
on the upper floors.
Jalgaon has more than thirty five commercial complexes. Municipal Corporation owns
about 27 of these commercial complexes in the city and is proactive in
development of its prime land parcels in the city. The city has few commercial
complexes built by private developers. Poor occupancy levels have been observed in the
complexes developed by the private developers. Higher sale prices and purchase by
investors could be cited as the major reasons for poor occupancy levels in these
complexes.
• Golani Market is the most preferred destination for shopping of vegetables and fruits.
(Refer Exhibit 5B).
• Phule Market, Golani Market and Dana Bazaar are the preferred destinations (in
descending order) for shopping of grocery items. (Refer Exhibit 5C).
• Phule Market has emerged as the most preferred destination for shopping of clothes
and accessories. (Refer Exhibit 5D).
• Phule Market and Station Road have emerged as the most favored retail areas for
shopping of electronic goods and accessories. (Refer Exhibit 5E).
It is evident from the above tables that Phule Market and Golani Market is the hub of
retail activities in the city
• Shri Natvar Cinema Hall in Navi Peth emerged as the most widely visited cinema hall for
watching movies. (Refer Exhibit 5F).
• National Highway (NH 6) has a large number of good hotels, restaurants and dhabas
along it. These spots are the favored locations for eating joints. (Refer Exhibit 5G).
12
13. INTRODUCTION - KHANDESH CENTRAL
CETL thus decided to develop a massive regional destination and community centre “Khandesh
Central” offering space for Leisure, shopping, food, entertainment, hotels, restaurants,
multiplex, services, farmers market and fitness covering 550,000 sq ft in Jalgaon, Maharashtra.
The project aims to offer ‘value for money’ products to customers. The VALUE theme of the
project has been conceived with an intention to integrate easily with the local community and
ensure that there is no inhibition / fear / any negative perception towards the project in so far
as the local community is concerned. Thus, at least 80% of the offering viz. retail, food,
entertainment etc. would offer to the consumers, the benefits of quality at low and affordable
prices.
The catchment for development has been delineated by assessing the percentage probability of
the preferences of people to travel the average distance for a particular usage. Based on the
distance criteria and based on the travel characteristics it was observed that major part of the
city is part of the primary catchment of the site. A distance of 5.0 km radius has been
considered assuming that most of the trip to site would take 10 to 15 minutes travel time in
motorized trip. The primary catchment covers major parts of the city, while the secondary
catchment covers the suburban areas of the city. (Refer Exhibit 6).
The secondary catchment can be broadly divided based on physical contiguity of the city and
the other based on the dependency of nearby areas on the city. The secondary catchment for
development at the property also covers Bhusaval and other nearby towns, as these are
dependent on Jalgaon for higher order shopping, leisure, entertainment and higher order
health and educational facilities.
The project would provide composite infrastructure and amenities like adequate car parking,
pantry on each floor, fire fighting systems, power supply, generator power back up, common
lighting, water pumps and 24 hr. security, to name a few. (Refer Exhibit 7C)
13
14. A comprehensive tenant mix offering a range of products, services and activities form part of
the project. (Refer Exhibit 7D)
For further details on the mall cum community center refer to exhibit 7.
Schemes offered to the Retailers:
National Retailers:
• Fixed Rental Model – Rs 55/- per sq ft per month on chargeable area OR
Revenue Share Model - 12% of net sales as revenue share or Rs.45/- per sq. ft. per
month on chargeable area as Minimum guarantee, whichever is higher
• CAM charges: Rs. 12/- per sq. ft. per month on chargeable area fixed for first three years
or as per actual.
• Tenure: 9 Years
• Lock in period: 5 Years
(For further details on the financial scheme for national retailers please (Refer Exhibit
7E)
Local Retailers:
• Refundable deposit of Rs 6000 per sq ft.
• Rent Rs 1 per sq ft per month
• Common Area Maintenance charges as applicable
The aforesaid prices will entitle the retailer/ investor a lease option of 9/18/27 years.
(For further details on the financial scheme for local retailers please (Refer Exhibit 7G)
Promotions and launch of the project in Jalgaon:
14
15. The promoters needed to raise capital fast as they had to clear their first installment of debt.
Thus they decided to target the following:
A. Investors: To invest for returns
B. Existing Retailers: To shift / expand their business.
C. New Business Entrepreneurs : for new retailing opportunities
D. Brokers who can bring investors as well as retailers.
CETL invited the above mentioned groups to a seminar. For agenda of the seminar see (Refer
exhibit 8A). The seminar was not very successful.
CETL followed the seminar with advertisements in the Marathi newspapers on the front page.
The advertisement and hoarding designs are displayed in exhibit 9A-E. CETL’s campaign was to
target the local farmers who wanted their children to get into business, by offering them
franchisees and new business opportunities. To do this, CETL also invited Franchisee India to
come and present their franchisee models for the new age entrepreneur whilst also explaining
the scheme to existing retailers and investors.
After putting hoardings on all major highways coming in and going out of Jalgaon and covering
all the major markets and chowks the marketing team realized that there was too much
information and people passing by in vehicles were unable to read everything on the hoardings.
Thus they decided to give more prominence to the things CETL wanted to be highlighted and
changed the hoardings at all the prominent locations. (Refer Exhibit 9 F-H for all the
promotional material published).
The challenges faced by CETL:
• CETL got close to 200 calls on the same day as the advertisement. 30 prospective
buyers also came in to the site. Despite this response CETL was unable to translate
more than 12 shops into sales (leasing of shops for 9/18/27) years.
15
16. • The question was, despite a successful advertising campaign and an overwhelming
response why was CETL unable to convert the other leads into sales?
The promoters of CETL Ashesh, along with the top management, stared at these
uncomfortable situation as they discussed during the meeting for possible way outs from this
situation. Why the time-tested resources, who have scripted many success stories before,
were failing now? Ashesh realized that answers had to be found very quickly, or unless his
dream of a mall in a Tier-III city will not be realized and he will have to taste his first ever
defeat.
16
18. EXHIBIT 2
EXHIBIT 3A:
Monthly expenditures of Jalgaon people on various activities
Monthly expenditure Shopping of Watching Eating out
on various activities clothes & movies
accessories
up to 500 96 68 56
501 to 750 4 0 15
751 to 1000 0 0 1
1001 to 2000 0 0 0
2001 to 3000 0 0 0
3001 to 4000 0 0 0
above 4000 0 0 0
Total 100 68 72
18
19. EXHIBIT 3B:
Important factors for shopping, leisure and entertainment
EXHIBIT 3C
Attraction criterion for shopping, Leisure and entertainment activities
19
20. EXHIBIT 3D
Preferred format of shopping Jalgaon
%
Preferred format of Number
Distribution
shopping
Shopping Centre 45 45
(moderately priced
products)
High street shops 26 26
Shopping Centre (branded 25 25
products)
Shopping mall 3 3
Sahakari bhandar 1 1
Total 100 100
EXHIBIT 3E
Response for a mall type development in Jalgaon
Response for a mall type Number %
development in Jalgaon Distribution
Excellent 49 49.00
Good 40 40.00
Fair 7 7.00
Poor 4 4.00
Total 100 100.00
20
21. EXHIBIT 3F
Willingness of Jalgaon people to visit the mall.
Willingness to visit the Number %
mall Distribution
Definitely 60 60.00
Most likely 24 24.00
Likely 13 13.00
Not likely 2 2.00
Very unlikely 1 1.00
Total 100 100.00
EXHIBIT 3G
Type of retail format expected in the proposed retail development
Type of retail format Cumulative %
expected in the proposed preference Distribution
retail development of
respondents
Exclusive brands 28 12.73
Local brands 45 20.45
Multiplex to be a part of 92 41.82
the mall
Moderately priced 55 25.00
products
Total 220 100.00
21
22. EXHIBIT 3H
Socio Economic classification Number % Distribution
Of the household
A1 9 9.00
A2 26 26.00
B1 25 25.00
B2 26 26.00
C 13 13.00
D 1 1.00
Total 100 100
EXHIBIT 4A
Response for a mall type Number % Distribution
development in Jalgaon
Excellent 23 38.98
Good 26 44.07
Fair 7 11.86
Poor 3 5.08
Total 59 100.00
Willingness to have a shop Number %
in the proposed retail Distribution
development in Jalgaon EXHIBIT 4B
Definitely 10 16.95
Very likely 11
Commodity 18.64 Cumulative
Likely 20 33.90
Not likely 2 3.39 figures
Very unlikely 16 22
27.12
Total 59 100.00
23. Men’s wear 9
Ladies wear 6
Electronic goods 5
Jewellery 4
Consumer durables 3
Mobile phones and 3
accessories
Grocery 2
Food 2
Furnishings 2
Pharmacy / medicine 2
distributors
Interiors/ finishes /
2
hardware
Footwear 1
Luggage / bags 1
Watches 1
Children’s wear 1
Music / CDs store 1
Computer and accessories 1
Furniture 1
auto mart 1
agro items 1
Others 1
Total 50
EXHIBIT 4C
Response for the area people would like to purchase
%
Carpet area Number
Distribution
100 to 200 sq.ft, 4 9.76
201 to 500 sq.ft, 12 29.27
501 to 750 sq.ft, 6 14.63
751 to 1000 sq.ft, 5 12.20
1001 to 2000 sq.ft, 9 21.95
> 2000 sq.ft, 5 12.20
23
25. EXHIBIT 4D
Area preference on floors
EXHIBIT 4E: Type of ownership preference
Type of ownership of shop Number %
Distribution
Owned 36 87.80
Leased / rented 5 12.20
Total 41 100.00
25
26. EXHIBIT 4F: Area of their present shop in Jalgaon.
%
Area of the present shop Number
Distribution
100 to 200 sq.ft, 3 5.26
201 to 500 sq.ft, 17 29.82
501 to 750 sq.ft, 8 14.04
751 to 1000 sq.ft, 6 10.53
1001 to 2000 sq.ft, 14 24.56
> 2000 sq.ft, 9 15.79
Total 57 100.00
EXHIBIT 5A
26
27. EXHIBIT 5B EXHIBIT 5C
Preferred location for Number Preferred location for Number
shopping of vegetables shopping of grocery items
and fruits Phule Market 33
Golani Market 32 Golani Market 13
Shbhash Chowk 11 Dana Bazzaar 11
Baliram Peth 8 Navi Peth 8
Phule Market 8 Baliram Peth 5
Sindhi Colony 5 Navjeevan shopee 5
Gandhi Market 4 Shahu Complex 4
Shivaji Nagar 3
EXHIBIT 5E EXHIBIT 5D
Preferred location for Number Preferred location for Number
occasional shopping occasional shopping
(clothes and accessories) (electronics and
Market 76 accessories)
New B J Market 4 Phule Market 28
Navi Peth 4 Station Road 25
Central Phule Market 3 Navi Peth 12
Station Road 1 Tower Chowk 9
Golani market 6
Khandesh Complex 3
EXHIBIT 5F EXHIBIT 5G
Preferred location for Number Preferred location for Number
watching movies eating out
Natwar 51 Along NH 6 26
Natraj 9 Tower Chowk 14
Rajkamal 7 Navi Peth 9
27
Station Road 5
Ajantha Chowk 3
29. EXHIBIT 6
EXHIBIT 7A Project Statistics:
Built up area 550000 sq ft
Food court & Restaurants 50000 sq ft
Hypermarket area 50000 sq ft
4 screen multiplex & Entertainment 40000 sq ft
Banquet + hotel 50000 sq ft
Vanilla Retail Shops (different sizes) 200000 sq ft
Mini Anchor 80000 sq ft
Jewellery Anchor 25000 sq ft
Farmer Market 25000 sq ft
Warehousing space 25000 sq ft
EXHIBIT 7B
29
30. Target Audience:
Sr.No. Project Offering Target Audience
1. Hyper Market House wives/families
2. Multiplex Families / Youth
3. Entertainment Families / Youth
4. Food Families / Youth / Visitors / Tourists
5. Disco & Pub Youth
Youth / House wives / Tourists / Students
6. Shops (all categories)
etc.
7. Restaurants Families / Visitors / Tourists
8. Saloon All sections – middleclass & above
Students, families, youth, senior citizens,
9. Open area
visitors
Students, families, youth, senior citizens,
10. Amphitheatre
visitors
11. Banquet halls/terrace All sections of the local community
12. Community Centre All sections of the community
EXHIBIT 7C
Salient features:
One stop leisure, retail, food, services, fitness and entertainment destination
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31. Located in City Centre and at the junction of M.G.Road & Jilla Road next to railway
station
High traffic density zone in commercial/ retail downtown area
Part of a comprehensive development covering 35 lakh Sq.ft. In city centre.
Huge open space (1.5 lakh sq ft) in front of mall to become a leisure destination of the
city.
Open space also to be used for promotional activities to enhance footfalls for the mall.
Four Screen multiplex equipped with all modern leisure facilities.
Air conditioned
2,50,000 sq ft parking space
6 escalators and 6 elevators
Play area for children and kid zone
Modern and artistic interiors
100% power backup facility
Continuous water supply
24x7 Security and camera surveillance
Firefighting equipments and fire exits
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32. EXHIBIT 7D
Tenant Mix
Sr. No. of Total Area
Name Location
No Shops (Sq. ft.)
Accessories (Hand Bags, Ties, Belts
1 Few 4500 LG, G, F
etc.)
Men's Apparels (Denims, Casuals,
2 Many 23000 LG,G
Formals, Ethnic)
3 Artificial Jewellery 1 or 2 1000 F
4 Bakery 1 or 2 1200 LG, S
5 Bank Branch & ATM 3+4 18000 LG,G,F
Bathroom Fittings(Home
6 2 2000 F
Improvement)
7 Beauty Parlor & Hair cutting 1 1000 F
8 Beauty Products 1 or 2 1000 F
9 Books 1 to 3 4279 S
10 Coffee Shop 1 1386 G
11 Computer Parts 1 500 LG
12 Cosmetic 1 500 F
13 Cyber cafe & Business Center 1 1500 LG
14 Discount Store 2 or 3 4500 LG
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33. 15 Entertainment 1 6832 S
16 Fashion Anchor 2 14000 G, F
17 Flowers 1 200 G
18 Food Court & Kitchens 14 22834 S
19 Footwear’s (Formal, Women’s, Sports) 6 to 8 10000 LG, G, F
Furniture Anchor (Home
20 1 7000 F
Improvement)
21 Gift 2 1500 LG,G
22 Gym & Sports Equipment 1 3575 S
home Furnishing (Home
23 1 to 3 2500 F
Improvement)
24 Hypermarket 1 35000 G
25 Jewellery 1 16000 LG,G
26 Kids Apparels 2 to 4 2000 F
27 Kids Shoes 1 or 2 500 F
28 Travel Agent and Money Exchange 2 386 LG,G
29 Kitchen (Home Improvement) 1 or 2 1000 F
30 Ladies Apparels Many 12000 F
31 Leather Goods 2 to 4 1700 F
32 Luggage 2 to 3 2500 LG,G
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34. 33 Medical 1 or 2 1500 LG
34 Mobile Stores 1 to 4 1000 LG,G
35 Multiplex 1 26300 LG,S
36 Music 1 776 S
37 Optician and Eyewear 1 2000 F
38 Party Terrace 1 6000 S
39 Perfumes 1 or 2 500 G
40 Photo Shop 1 300 LG
41 Repairs-Electronics 1 500 LG
42 Restaurants 3 or 4 11190 LG,S
43 Sogo Type Market 1 or 2 20000 F
44 Sports Wear 1 or 2 1000 G
45 Sweet Shop 1 or 2 1200 LG,S
46 Toys 2 to 4 2500 LG
47 Watches 2 to 3 1500 G
48 Web world 1000 LG
White Goods Anchor (Home
49 1 5000 F
Improvement)
50 Woman Accessories 1 to 4 500 F
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35. 51 Kerala Message 1 2000 S
52 Optional (Music Instruments) LG
53 Optional (Laundry)
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37. Exhibit 7F
1 Efficiency Ratio 100:80
2 Compensation Free Period 60 days.
6 months i.e 2 month on signing of LOI, 2
3 Security Deposit month on signing of agreement & balance 2
months on possession for fit-out.
Fixed Rental Model – Rs 55 per sq ft per
month on chargeable area OR Revenue Share
Model - 12% of net sales as revenue share or
Rs.45/- per sq. ft. per month on chargeable
4 Conducting Fees / License Fees area as Minimum Guarantee which ever is
higher
Rs. 12/- per sq. ft. per month on chargeable
Common Area Maintenance
5 area fixed for first three years or as per
Charges
Actuals.
6 Tenure 9 Years (3+3+3)
7 Lock in Period 5 years
8 Escalation 15% after every 3 years
9 Car Parking ample parking available
10 Legal Fees Each party to bear their own Legal costs.
11 Stamp Duty & Registration To be borne by Both the parties equally.
1. Signage space 2. Standard brick/ masonary
walls with rough plaster 3. Main electricity
cable (single point) with meter 4. Main phone
Amenities to be provided by cable (single point) 5. Main internet cable
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the Lessor (single point) 6. Water supply for sprinkler
system (single point) 7. Evaporating cooling
system for Common area 8. 100% power back
up
Estimated date of
13 On or before March 2010
Completion / Possession
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38. EXHIBIT 7G
POLICY FOR JALGAON RETAILERS
PRICING
The pricing structure applicable, under this scheme would be
a. Refundable deposit of Rs 6000 per sq ft.
b. Rent Rs 1 per sq ft per month
c. Common Area Maintenance charges as applicable
The aforesaid prices will entitle the retailer/ investor a lease option of 9/18/27 years.
Terms & Conditions
1. Only for those retailers/ investors booking shops under the scheme.
2. Furthermore, this rate would be applicable for a limited number of shops.
3. Thereafter the prices would increase and the terms offered would change.
4. These terms would not be applicable for any bookings for which applications are not
made under this scheme.
5. In case, the demand exceeds supply, the shops would be allotted at the discretion of
the management taking into account
a. first come first serve basis
b. Value being added by the retailer to the project (different service or product or
anything else)
In case of similar terms and demand, a lottery system would be used to determine the
retailers who are to be allotted shops.
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39. SALE OF RIGHTS
1. The aforesaid prices will entitle the retailer/ investor a lease option of 9/18/27
years. These prices are at a substantial discount over the prevailing market prices
in the City.
2. There will be a lock in period of 3 years till which time, the retailer will not be
permitted to assign/sell the rights to 3rd party.
3. The retailer/ investor has the flexibility to sale/ assign rights to a 3rd party after the
expiry of 3 years lock in period.
4. This option enables the retailers/ investors to get appreciation of property value.
5. Based on studies and the prevailing market scenario, it is estimated that the value
of this rights at the end of the lock in period of 3 years would be in the region of Rs
12000-15000 / sq ft thereby enabling the retailer/investor to reap huge gains from
appreciation of property.
EXHIBIT 8A
Agenda for date of Seminar
1 Welcome
2 Registration- Hand over of brochure
3 Welcome drink/tea
4 Audio visual running on screen of current reyail scenario 10 mins
5 Audio visual of Khandesh central. 10 mins
6 Presentation of khandesh central by our speaker 15 mins
7 Franchisee india for presentation. 15 mins
8 Question and Answer Session 25 mins
9 Thanks giving speech 2 mins
10 Snacks and refreshments
11 Buying of application forms by prospective retailers.
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