ASHIKA GROUP OF COMPANIES

ASHIKA GROUP PROFILE

⇒ One of the best known names in ladies ethnic wear market.

⇒ Strong foundation in the business since 1975.
⇒ One of the leading manufacturers and traders in the segment.
⇒ Suppliers to pan India retail chain stores.
⇒ World class manufacturing facilities at Dahisar & Surat.
⇒ Branches spread in key cities like Surat, Kolkata & Varanasi.
⇒ Aggressive expansion plans in retail & e-commerce sector.

GROUP COMPANIES & DIVISIONS

⇒ Ashika Sarees Ltd.

⇒ Binod Kumar & Co. Pvt Ltd.
⇒ Ashika Textile India Pvt. Ltd.
⇒ Ashika Fashionwear.
⇒ New Hind Silk House.
⇒ Ashoka Selection.
⇒ Saurabh Prints.

CHANNELS OF PRODUCT OFFERING

⇒ Direct Retailing
⇒ Franchisee Stores
⇒ Sales & Distribution
⇒ Wholesale throughout India through excellent network of dealers & retailers
⇒ Export to countries like United Kingdom, Unites States of America, Sweden,
Australia, Mauritius, Malaysia, South Africa, Kuwait and many others.
⇒ Retailing across the internet worldwide, through more than 20 websites.
E-COMMERCE PRESENCE

⇒ www.ashika.com
⇒ www.ashikamall.com
⇒ www.ashikafashionwear.com

MARKET PRESENCE – C.O.C.O & FRANCHISE STORES

Belgaum, Rewari, Latur, Jabalpur, Mumbai, Cuttack, Indore, Nasik, Hyderabad,

Dharamshala, Tirupur, Shivpuri, Raigarh, Ratlam, Malhout, Lucknow, Dhanbad, Ballia,
Bellary, and many more.

ABOUT ASHIKA FASHIONWEAR

⇒ Innovative retail format, selling ladies ethnic wear and accessories.

⇒ Product mix consists of sarees, salwar suits, kurtis and accessories like
handbags & stoles
⇒ Strong advertising and sales promotion activities in various mass media like
newspapers, radio, mobile advertising, internet marketing and press releases.
⇒ Trained and experienced salespersons and store managers managing the
current stores.
⇒ Strong 40 year old brand among masses, mainly in Tier II and Tier III cities and
towns.
⇒ Excellent value offering in terms of stock.
⇒ Human Resource training offered.
OPPORTUNITY INDIA

The total consumer spend in the country in 2008-09 was Rs. 22540 billion at
current prices, and a large part of this was accounted by the 300 million middle
class, the ‘real’ consumers. Reports indicate that these numbers could swell past
600 million by 2011 – considered sufficient to establish India as one of the largest
consumer markets of the world.

RETAILING IN INDIA

⇒ Retail sales stands at Rs. 10200 billion, and is growing by 5 percent annually.
⇒ Organized retail – Rs. 350 billion – constitutes about 3.4 percent of retail
sales, but is growing at 30 percent each year.
⇒ Organized retail is projected to cross Rs. 1000 billion mark by 2011.
⇒ Rs. 300 billion investment in the pipeline.
⇒ Overwhelming acceptance of modern retail formats.

CHANGING CONSUMER LIFESTYLE AND PREFERENCES

⇒ Increased brand consciousness

⇒ Design and quality acquiring significance
⇒ Increase in number of working women
⇒ Lifestyle branding
⇒ Market for niche segments
⇒ Increased credit friendliness
⇒ Increased effort to feel and look good
⇒ Influence of international travel and media has helped in propagating fashion
consciousness
⇒ Willingness to experiment
⇒ Increased disposable income
⇒ Easier and uninhibited acceptance of luxury

THE APPAREL MARKET SCENARIO

Product segment wise, menswear has maximum share of the overall apparel
market (36.9 percent) in value terms, followed by women’s wear (32.1 percent), kids
wear, uniforms and unisex apparel in that order.
 share of major categories in India's Apparel Market

men's shirts

22% 16% men's trousers

9% women's ethnic wear

sarees
innerwear
9% 8%
kids wear
14% 15% uniforms
7%
other categories

Sarees, with 20 percent of the overall market share in value terms, is the second
largest category followed by kids wear and uniforms.

WOMENSWEAR

There are clear signs of revolutionary changes taking place in this category. Ethnic
wear still controls three-fourths of women’s apparel market and contrary to initial
indications, the craze for designer sarees is being reinforced as a fashion statement,
especially for party and other occasions.

SAREES

There has been excellent value appreciation in this garment category with as high
as 46 percent growth in the super premium range where volumes also increased 24
percent, over 2008. The low end witnessed 10 percent value appreciation. Growth
prospects therefore are higher.

SALWAR KAMEEZ-
KAMEEZ-DUPATTA

The women’s ethnic wear category which mainly comprises salwar kameez, is
clearly moving up the value chain with the economy to super premium ranges
experiencing high appreciation in value around 18 percent in the economy and mid
ranges, and 23-33 percent in the premium and super premium ranges.
 ASHIKA FASHIONWEAR FRANCHISE DOCUMENT
FOR EXCLUSIVE BRAND OUTLET
The company offers franchises to potential applicants based on the following
guidelines. These are common to all formats offered for franchise -

LOCATION, DESIGN & INTERIORS

⇒ The store’s carpet area has to be a minimum of 450 sq ft., preferably on a

high street.
⇒ The showroom design will be provided by the company, on the basis of which
the franchisee will undergo the furniture and civil work expenditure.
⇒ The net cost of store interiors and furniture will range from 900-1400/- per
sqft, which will cover flooring, ceiling, air conditioning, electrical fittings &
wiring, POP work, painting, carpentry and store name board.
⇒ The franchisee may get the store interiors done on their own (using a
company appointed supervisor for whom the supervision fees shall be borne
by the franchisee) or use the services of a company appointed architect.
⇒ The company officials shall assess the location through a personal visit, on
several parameters.

STOCK & SECURITY DEPOSIT

⇒ The company will supply the stock on consignment basis, and will fix the MRP
before dispatching the goods to the store.
⇒ The franchisee has to pay a one-time franchise fee of Rs. 50000/- to the
company.
⇒ The franchise will get the stock against an interest free security deposit.
⇒ The company will replenish stock based on sale reports and internal
discussions. The franchisee needs to send his senior salesperson once every
15 days / 1 month to the company warehouse for stock selection as per their
needs.
⇒ The company will take back unsold stock according to the following format.

Visit of Salesman Maximum Allowed Return

1st Visit (Before Opening) 25%
2nd Visit 15%
3rd Visit onwards 10%
⇒ The stock supplied to the franchisee will bear MRP fixed by the company.
⇒ The franchisee must clear all dues such as the stock deposit, franchise fee,
architect related charges etc before their store becomes operational
OPERATIONS

⇒ The agreement between both parties will be on a 3yrs+3yrs basis, on mutual

agreement, with a lock-in period of 1 year.
⇒ The franchise must deposit sales proceeds on a daily basis to the company
bank account. Failure to do so will attract penalty as per the company policy.
⇒ The company will bear insurance expenditure only on the stock. The insurance
expenditure of the store will be borne by the franchisee.
⇒ Tailoring, fall bidding & alteration facility for the customers may be provided
by the franchisee. The company will not bear any expenditure on this account
⇒ The company will offer 31% as franchisee margin.
⇒ In times of discount sale or such schemes, the discount offered will be shared
by both sides equally.

ADVERTISING & PROMOTION

⇒ The company shall undertake marketing, sales promotions and advertising

activities from time to time.
⇒ The company shall reimburse up to 5% of the quarterly sales turnover, for the
first 3 months, and 2% henceforth for advertisement done by the franchisee at
the local level.(bills to be produced before reimbursement)
⇒ The company will provide plastic packing material and shopping bags to the
franchisee, depending on the sale. The franchisee will have to bear the cost1
of the same.
⇒ Discounts offered by the franchisee in non-scheme cases are to be borne by
him.

STAFF & SOFTWARE/HARDWARE

⇒ The Point Of Sale software license cost will be borne by the company, but the
hardware will be provided by and the cost borne by the franchisee. The
hardware will be as per the configuration provided by the software developer.
⇒ Franchisee will appoint expert salesperson and store manager. The company
will provide full training and support to the store owner and his employees.

1
For e.g. We have 3 sizes of shopping bags:
• Small size: Meant for blouse pieces – Rs. 1
• Medium size: Meant for 1-2 items – Rs. 2
• Large size: Meant for more than 3 items – Rs. 3

- Boxes for gift packing can be made available if requested. The same will come at a cost of Rs. 5 per box.
- Jute bags, bearing Ashika Fashionwear logo can be made available if requested. The same will come at a cost of
Rs. 10 per bag.
Margin 31%
Sale per day 25000
Expense on Interiors Per Sq Ft 1100
Deposit 1500000
Expense Percentage 11%
Maximum Sq Ft Covered 650

An estimate calculation of yearly profit – 500 - 600 sq.ft.

SALES

25000 per day on average * 365 days 9125000

(working days are 365)

Franchise margin @ 31% on MRP sales 2828750

less: fixed expenses @ 11% 985500

Net Return 1843250

Initial investment required 2315000

Return on Investment is 80%

MONTHLY EXPENDITURE

TOTAL SALES

25000 * 30 Days 750000

Rent 40000

Electricity 7000

Staff ( 1 cashier/store manager, 2 Sr. salesmen, 1 Jr. salesmen, 1 helpers) 30000

Tele phone 1000

Miscellaneous 3000

Monthly expenditure is approx 11% of sales 81000

INVESTMENT REQUIRED
Security Deposit 1500000

Computer hardware with peripherals 50000

Shop Interiors (approx.) 650000

Supervisor Charges 65000

Franchise Fee 50000

TOTAL 2315000