7/29/2019 Prommart

1/12

An

ASSIGNMENT

ON

PROMART RETALINING PVT. LTD

INSTITUTE OF MANAGEMENT STUDIES

KURUKSHETRA UNIVERSITY

KURUKSHETRA

SUBMITTED TO SUBMITTED BY

DR. RAJAN SHARMA ASHISH SONI

(LECTURER, IMS) 9TH

SEMESTER

ROLL NO-35

7/29/2019 Prommart

2/12

INTRODUCTION OF PROMART RETAILING

Promart is a revolutionary value format lifestyle concept in India. Its target

retail is for smaller towns across India who has limited access to fashion. It is

a value format retail chain of stores offering discounts schemes from 25%-

60% all year round.

Launched by Provogue India, the chain is taken over by Apple Group of

Companies and VEMB Lifestyle Pvt. Ltd where the two groups have come

together to buy out the assets and Intellectual property (IP) of the brand.

The format provides a platform for brands to offload their stocks at a discount

without diluting its brand image. The retail chain provides an opportunity to buy

smart with affordability all year round.

ORGANISATIOAL PROFILE

PromartRetail is a one-stop shop for peoples fashion needs providing them

the convenience to shop at their door step. With a fully air-conditioned

environment and refreshing ambience, this destination caters to those seeking

popular brands at a bargain price. Promart has tied up recently with Franchise

India for 100 franchisees. Promart has a presence across 14 states and 2 union

territories. The states where Promart is prevalent are Rajasthan, Uttar Pradesh,

Maharashtra, Gujarat, Andhra Pradesh, Madhya Pradesh, Punjab, Chhattisgarh,

Uttarakhand, Haryana, Karnataka, Goa and union territories like Delhi and

Silvasa.

7/29/2019 Prommart

3/12

FACTS

A fully air-conditioned environment and with a fresh ambience spaced in a1000 to 5000 sq ft. carpet area

The stores retails to all those looking at national and international brands atdiscounts

The stores are located at prominent malls, high streets & strategically selectedlocation

The price range products available from Rs. 49/- to Rs. 1899/- and consumerscan now enjoy a discount of upto 60% on the products purchased Promart

provides a complete range of clothing, footwear, & accessories across all

categories (Men, Ladies & Kids).

Our Expansion Plans

Promart opened its first store in Ahmedabad in Nov11 inaugurated by

Bollywood diva Kangana Ranaut, followed by 2 stores at Baroda, Rajkot, Vapi,

Mumbai, Aurangabad, Anand, Jodhpur, Indore

A multi brand retail chain available at national level, targeting 100 owned stores

and 50 franchised stores by Dec 2013

Moving forward, Promart plans to expand its operations in Gujarat,

Maharashtra, MP, Chhattisgarh, Rajasthan, Punjab, Haryana, UP, Goa,

Karnataka, Uttranchal & AP in the coming six months as part of their overall

growth strategy.

Promart invites Franchisee to partner with them in this value format retail chain

of stores

7/29/2019 Prommart

4/12

SEED

A multi-brand, multi-location discount chain and value format.

National labels will be sold to target the discerning, brand consciousyoung buyers.

Discounts range between 25% to a whopping 60%.

Fully air conditioned shopping environment and an international,rejuvenating ambience spaced in a 1000 to 5000 sq. feet carpet area.

Located at prominent malls, high streets and strategically selected stores.

Business Overview

Currently, we have successfully placed 80+ fully functional stores along with 9

franchises pan India. We have also signed an agreement with Franchise India

Holdings for a 100 store plan by this fiscal and the company is very much

geared up to achieve this number within the stipulated timeframe. We aim to

deliver a total of 100 stores by end of this CY2013. Our expansion plans have

over 13 states marked in it only in Tier II to Tier VI cities. Our aim to enter a

certain state, expand in the respective state, create a brand recall value and then

move further to other regions across country has worked well for us. As of now,

we have a pan India presence in 14 states and 2 union territories.

We plan to open 200 stores by May, 2014 by achieving a turnover of Rs. 495

crore this year. Also with our foray into the online domain, we have already

built a huge fan base.

7/29/2019 Prommart

5/12

Target

Its just been almost two years since the takeover of Promart from Provogue in

2011. We started off with one store in 2011 and currently boast of 80+ stores in

just a span of a year and half. By 2014, we want Promart to have at least 200

stores. We currently hold staff strength of a 100 but we are looking at closing it

to 600 by end of 2014.

Investment plans

Post initial investments of ~Rs75 crore, we will be pumping in around Rs. 100

crore in 2014 for expanding operations. The inflow of finances will take place

through mainly internal company accruals.

Promart was a integral part of Provogue group which was taken over by us in

2011... from 1 store takeover in Nov 2011 to 70 + (Operational & WIP) Stores

we are the one of the leaders in Value Fashion Retail.. we have been awarded

the 13th Edition "Most Admired Value Fashion Retailer of 2012 by IFA".Promart is available across 12 States & 2 Union Territories

Sales and turnover targetPromart is looking at a net margin of 6-7% and a Rs. 495 crore turnover next

year.

7/29/2019 Prommart

6/12

VISION

Most preferred fashion destination across all 1 lac+ population towns in India.

MISSION

Celebrate brands at surprising prices 365 days in clothing, footwear and

accessories in all towns.

PROMOTERS

Ashish Garg, Managing Director

Money Man, Mind behind Promart.

36 year old dynamic, young entrepreneur.

Also, actively involved in the business of Apple Group of Companies.Propels the growth of Promart with his astute eye over financial management as

well as the immense experience of successfully running various businesses such

as steel, coal mining, textiles, insurance and infrastructure.

7/29/2019 Prommart

7/12

Punit Agarwal

Director & Chief Executive Officer

Captain of Logistics & Inventory.

In a mere Ten years, Punit Agarwals visionary foresight and the sheerwill to achieve has led him to conquer the many milestones in his early

30s.

Also, New Markets Identifier.

Moving away from his family business, he founded VEMB Lifestyle Pvt.Ltd. as an independent business entity, which is now a diversified group

engaged in various opportunities in lifestyle.

Heart behind Promart.

Leads by example.

7/29/2019 Prommart

8/12

Retail landscape

INDIAN RETAIL

INDUSTRY

3000K CRORES

Organized Retail Footwear, Clothing, Accessories

239K Cr 89K Cr

8% 37%

According to Consultants McKinsey & Co. research shows that almost 40% of

branded goods are sold at a discounted rate (below MRP).

Rs. 11,880 cores pegged as market potential in this segment as on 2006and only growing.

Indian retail industry is 5th largest in the world.

KEY RETAILS GROWTH DRIVERS

Favourable demographics

7/29/2019 Prommart

9/12

POSITIVE OF FDI IN RETAIL

Organized retail will get a significant hike.

Shopping will be a year round activity.

Indian consumer will be pampered with the choicest brands.

Educated consumer (on styles, fits, price, brands) is a more demanding

consumer.

Customer service will improve and customer will expect a superior retail

experience.

THE INDIAN CONSUMERS

Large and growing middle class

Median age of the Indian Consumer is 24

Easy availability of cheap credit

Aspirational Lifestyle

Brand Conscious

Wants great value for money (premium brands for less)

Wants a quality shopping experience

High exposure to advertisementsoffers, styles, brands etc

Celebrates success at all moments/occasions etc

7/29/2019 Prommart

10/12

SWOT ANALSIS

STRENGTH

365 days discount National brands and international labels Mass customer base Minimum 25% discount In-house label to fill in missing gaps and trends

WEAKNESS

Competition from local brands Tailor made clothing

OPPURTUNITIES

Approach brands to sell last seasons stock More outlets per city Tap increased disposable incomes Growing demands for branded items FDI opportunity 1 lac+ population townsTHREATS

Increase in government taxes Brand factory outlets Other large format stores

7/29/2019 Prommart

11/12

REGIONAL TEAM ADVANTAGE

Facilitate buying of brands that have a good market share in that zone. Better media rates Smoother execution of schemes or offers Better understanding of the zone Decentralize decision making Better communication to customers

Franchise Invited

No deposit Margin up to 40% 1 print ad during launch Stock Correction 10% of purchase Price de-regulationfacility Franchisee fee Rs 51000/- only Investment on interiors 700-1000 sq.ft. Marketing support Fixture sourcing/Installation support

7/29/2019 Prommart

12/12

BIBLIOGRAPHY

WWW.promart.in www.promartretailing .com www.indiaretaling.com www.retailopedia.com www.wikipedia.com