a report on malls

8/3/2019 A report on Malls

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O N E

A Report on Mall

Riddhimaan Nandgaonkar

Ravindra ThakurPravin Nadar

Akshay Jain

Rishabh Dwivedi

Chirag Mehta

Brian Ridley

3/8/2008


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Vidyalankar School of Information Technology.

Submitted by:

Riddhimaan Nandgaonkar

Pravin Nadar

Akshay Jain

Rishabh Dwivedi

Chirag Mehta

Brian Ridley

Ravindra Thakur

Submitted to:Miss. Mugda Joshi

Date of Submission:8th September 2008


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Acknowledgement

This Project could not have been written without the help of Miss. Mugda Joshi who not

only served as our supervisor but also encouraged and challenged us throughout this

project. My fellow friends and the other students of our class also guided us through

this process, never accepting less than our best efforts. We thank them all.


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DeclarationWe the undersigned students of Vidyalankar School of Information Technology

Second Year B.M.S have done the project on A Report on Mall. The Project submitted is

true to the best of our knowledge.

Signatures

Riddhimaan Nandgaonkar (07B431)

Ravindra Thakur (07B452)

Pravin Nadar (07B402)

Akshay Jain (07B418)

Rishabh Dwivedi (07B410)

Brian Ridley (07B440)

Chirag Mehta (07B464)


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Certificate

I hereby certify the project done by:

________________________________

from Vidyalankar School of Information Technology on the topic of AReport on Mall and the information submitted is true to best of my

knowledge.

_____________

(Project Guide)


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Table of ContentsIntroduction: Mall culture in India ................................................................................. 1

Malls ............................................................................................................................ 6

About Atria millenium mall ........................................................................................ 19

Their strategy ............................................................................................................ 24

Financials ................................................................................................................... 26

Future plans ............................................................................................................... 30

Conclusion ................................................................................................................. 31

Webliography ............................................................................................................. 33


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Introduction: Mall culture in IndiaThe skyline is filled with boxes built of mirrored windows, skeletons of new

malls and billboards promising a better life for the countrys modern

maharajas. Shop at Tommy Hilfiger and eat at Pizza Hut. The toilets flush

automatically, the floors are spotless. Theres a new culture coming now, said

Pawan Sharma, sitting at McDonalds in Globus Mall, which opened last year.

The Western culture, the mall culture is coming. This is not really the

traditional India.

This is closer to the opposite of India. In this country, people traditionally shop

at local markets, where vegetables are sold in one tiny shop and milk in

another. Shoppers go from one store to the next, buying flowers here, chicken

there. They bargain for better deals. The markets often are filthy, littered with

garbage. But the malls offer everything under one roof, even stores such as Big

Bazaar, a smaller, more chaotic version of Wal-Mart are out of fashion now.

There is central air conditioning, a novelty here. Signs tell people how to ride

the escalators, still new to India. Songs by Depeche Mode and Radiohead blare

over mall loudspeakers. People speak to each other in English instead of Hindi.

Why people in India come to a Mall:


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Based on our little talks with people in rave and globus we find out that for

different age groups, there are different reasons to come to mall. But somehow

all of them are related to advertisement and cultural industry and ease of

shopping. Here are the reasons in descending order of popularity-

05-15: For toys which some shops offer, because their friends go there, they

saw a TV ad.

15-25: To see some good looking opposite sex, Chill out and time pass, to

show off, for window shopping and actual shopping.

25-45: Shopping, Dinner and movie, Kids force them.

45-above: Kids force them, Shopping, Hell with malls they dont like malls.

The scenario-Its weekend and are you still stuck with the regular question as to what to do

on Sunday? May be not, as the Indian populace has finally found the answer to

the ever bothering question quite easily. Yes, a visit to a nearby mall is the

most probable answer any metropolitan citizen would give. This is because the

retail revolution has completely taken the nation by storm. Mushrooming of

malls is a clear indication that the wave of consumerism is arriving steady and

fast.


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The Trend-Crowded streets, traffic congestion and mob of people flooding a chic looking

building, is a popularly visible scenario every Sunday. This plush building is

none other than a mall in Gurgaon, NCR Delhi. This brings to light that peoples

perception has completely changed towards shopping. Congenial atmosphere,

world class environment, international brands, basic amenities and exotic

cuisines, is what the malls aspire to provide under one roof.

Nevertheless, people are welcoming this new trend with open arms, unaware of

what just might be its consequences. Moreover, sales and bargain deals,

attractive prizes, and schemes are the success formulae, the shopkeepers are

trying to cash in, on consumers. This has made malls a mega hit amongst the

metro crowd, putting fuel to their ever increasing demand for a better living.

This is a result of the expanding Indian market and disposable incomes by the

service class.

As an AlternativeApart from being the shoppers paradise, malls are also acting as a good

alternative, for the people to escape from the otherwise poor living conditions.

This brings the flipside of the mall culture into sight, which enforces that

though shopping is the modern mantra, people are looking for something

more. Malls act as great refuge from the scorching heat of the sun, in summers,

as all the malls are centrally air conditioned for the purpose.


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Another reason for the malls being so crowded is that quite a number of

people roam there aimlessly. Their purpose can be anything from a get

together with friends to simply window shopping, from buying popcorns to

buying cards. This explains that hot weather, frequent and prolonged electricity

and water cuts are some of the strong reasons, why the common man is

attracted towards the escalating shrines of consumerism.

Shopaholism-Shopaholism is the name given to the addiction for shopping, which has joined

the list after cigarette and alcohol. A kind of a physiological disorder, it is

constantly on the rise. It should be noted that it has made its way not only in

the lives of people, but also in the credentials of psychiatrists. According to

their unanimous belief, it can lead to serious problems, if not paid attention to.

In severe cases, the patient may even avert to shoplifting and stealing, in case

the desired product is denied. Moreover, shopping is also being termed as a

means of escape mechanism.

This implies that the retail therapy gives the shopper a temporary high,

corresponding to the feeling that he possesses what he wants. Besides, the

therapy seems to work wonders, not only for women but also for men. The

metamorphosis the society is witnessing, presents man as the evolving

shopping freak, shouldering the women with utmost grace. Hooked on the


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phenomenon, it gives them the sense of power and control, pampering their

mountain high egos. This can even go the extent, where people end up wasting

money, for the euphoria shopping provides.

Warning-After all said and done, it is finally time for the word of caution. India, the land

of spirituality and mysticism, is steadying fast on the road to development, with

mall culture just a miniscule aspect of it. As the investors and town planners

vie to fit in the huge glass buildings amidst squashed streets, there are a

number of problems, the process poses. Ever increasing space crunch, growing

traffic, developing infrastructural pressure, power scarcity, parking blues are

some of the troublesome head raising situations, to be fought.

In addition to this, the tremendous change these modern marvels have brought

into the lives of people is alarming. These commercial havens not only serve as

battlegrounds for the international brands but also impel people to wrestle with

their own psyche and value system. Being carried away in the voluble stream of

consumerism and retail revolution, common man is rendered completely

unarmed. He is being prepared to take what can be actually termed as sweet

poison, which in a way is a boost to the Indian economy but on the other hand

can steal away the joy and innocence from daily life, if not practiced in limits.


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MallsA shopping mall or shopping centre is a building or set of buildings that

contain a variety of retail units, with interconnecting walkways enabling visitors

to easily walk from unit to unit.

Strip malls have developed since the 1920s, corresponding to the rise of

suburban living in the United States after World War II. As such, the strip mall

development has been the subject of the same criticisms leveled against

suburbanization and suburban sprawl in general. In the United Kingdom, these

are called retail parks, out-of-town shopping centres, or precincts.

Regional differencesIn most of the world the term shopping centre is used, especially in Europe and

Australasia; however shopping mall is also used, predominantly in North

America, but also to a large extent in Asia. Shopping precinct and shopping

arcade are also used. In North America, the term shopping mall is usually

applied to enclosed retail structures (and may be abbreviated to simply mall)

while shopping centre usually refers to open-air retail complexes.

Malls in Ireland, pronounced "maills", are typically very small shopping centres

placed in the centre of town. They average about twenty years in age, with a


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mix of local shops and chain stores. These malls do not have shops found in

the high street or modern shopping centres.

Shopping centres in the United Kingdom can be referred to as "shopping

centres", "shopping precincts" or just "precincts", but with American-style

centres becoming more common in the UK, the term "mall" is gradually growing

in use, at least among the younger generation.

HistoryIsfahan's Grand Bazaar, which is largely covered, dates from the 10th century

A.D. The 10 kilometer long covered Tehran's Grand Bazaar also has a long

history. The Grand Bazaar of Istanbul was built in 15th century and is still one

of the largest covered markets in the world with more than 58 streets and 4000

shops.

Gostiny Dvor in Saint Petersburg, which opened in 1785 and should probably be

regarded as one of the first purposely-built shopping malls in the world, as it

consisted of more than 100 shops covering an area of over 53,000 m.

The Oxford Covered Market in Oxford, England was opened in 1774 and still

runs today.

The Burlington Arcade in London was opened in 1819. The Arcade in

Providence, Rhode Island introduced the concept to the United States in 1828.


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The Galleria Vittorio Emanuele II in Milan, Italy followed in the 1860s and is

closer to large modern malls in spaciousness. Other large cities created arcades

and shopping centres in the late 19th century and early 20th century, including

the Cleveland Arcade and Moscow's GUM in 1890. Early shopping centers

designed for the automobile include Market Square, Lake Forest, Illinois (1916)

and Country Club Plaza, Kansas City, Missouri (1924).

An early indoor mall in the United States was the Lake View Store at Morgan

Park, Duluth, Minnesota, which was built in 1915 and held its grand opening on

July 20, 1916. The architect was Dean & Dean from Chicago and the building

contractor was George H. Lounsberry from Duluth. The building is two-stories

with a full basement and shops were originally located on all three levels. All of

the stores were located within the interior of the mall with some shops being

accessible from both inside and out.

In the mid-20th century, with the rise of the suburb and automobile culture in

the United States, a new style of shopping centre was created away from

downtown.

Early shopping centersAn early shopping center in the United States was Country Club Plaza, which

opened in 1924 in Kansas City, Missouri. Other important shopping centers


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built in the 1920s and early 1930s are the Highland Park Village in Dallas,

Texas; River Oaks in Houston, Texas; and Park and Shop in Washington, DC.

However, the concept of the fully-enclosed shopping mall did not appear until

the 1950s. The idea was pioneered by the Austrian-born architect and

American immigrant Victor Gruen. This new generation, that were eventually

called malls, included Northgate Mall, built in north Seattle, Washington, USA in

1950, Victor Gruen's Northland Shopping Center built near Detroit, Michigan,

USA in 1954, and Gulfgate Mall in Houston were all originally open-air

pedestrian shopping centers that later were enclosed as malls. The first

enclosed, postwar shopping center (or mall) was the Gruen-designed Southdale

Center, which opened in the Twin Cities suburb of Edina, Minnesota, USA in

1956. As equally important as the enclosed aspect of these new malls was that

for the first time in the development of American cities, these malls moved

retailing away from the dense, commercial downtown into the new sprawling

and largely residential suburbs. This formula--enclosed space with stores

attached, away from downtown, and accessible only by automobile--became a

popular way to build retail across the world at different moments. In the UK,

Chrisp Street Market was the first pedestrian shopping area built with a road at

the shop fronts.

The Bergen Mall, the oldest enclosed mall in New Jersey, opened in Paramus on

November 14, 1957, with Dave Garroway, host of The Today Show, serving as

master of ceremonies. The mall, located just miles from New York City, was


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first planned in 1955 by Allied Stores to have 100 stores and 8,600 parking

spaces in a 1.5 million ft mall that would include a 300,000 ft Stern's store

and two other 150,000 ft department stores as part of the initial design.

Allied's chairman B. Earl Puckett confidently announced the Bergen Mall as the

largest of ten proposed centers, stating that there were 25 cities that could

support such centers and that no more than 50 malls of this type would ever be

built nationwide.

Largest shopping mallsThe title of the largest enclosed shopping mall remains with the West Edmonton

Mall in Edmonton, Alberta, Canada since 1986. West Edmonton Mall is listed in

the Guinness Book of World Records for the "largest shopping centre in the

world" and "world's largest parking lot".

One of the world's largest shopping complexes at one location is the two-mall

agglomeration of the Plaza at King of Prussia and the Court at King of Prussia in

the Philadelphia suburb of King of Prussia, Pennsylvania, USA. The King of

Prussia mall has the most shopping per square foot in the US. The most visited

shopping mall in the world and largest mall in the United States is the Mall of

America, located near the Twin Cities in Bloomington, Minnesota, USA.

However, several Asian malls are advertised as having more visitors, including

Mal Taman Anggrek, Kelapa Gading Mall and Megamal Pluit, all in Jakarta-


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Indonesia, Berjaya Times Square in Malaysia and SM Megamall in the

Philippines.

Beijing's (Peking) Golden Resources Mall, opened in October 2004, is the

world's second largest mall, at 600,000 m (approximately 6 million square ft).

Berjaya Times Square in Kuala Lumpur, Malaysia, is advertised at 700,000

square metres (7,530,000 sq ft). SM Mall of Asia in the Philippines, opened in

May 2006, is the world's third largest at 386,000 square metres (4,154,900 sq

ft) of gross floor area. The Mall of Arabia inside Dubailand in Dubai, United

Arab Emirates, which will open in 2008, will become the largest mall in the

world, at 929,000 square metres (9,999,700 sq ft).

"Pitt Street Mall" of Sydney is Australia's busiest shopping precinct. This mall

has eight retail centres and more than 600 speciality stores, within two city

blocks.

"Pitt Street Mall" of Sydney is Australia's busiest shopping precinct. This mall

has eight retail centres and more than 600 speciality stores, within two city

blocks.

British usageA mall can refer to a shopping mall, which is a place where a collection of shops

all adjoin a pedestrian area, or an exclusively pedestrian street, that allows

shoppers to walk without interference from vehicle traffic. Mall is generally


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used in North America and Australasia to refer to a large shopping area usually

composed of a single building which contains multiple shops, usually

"anchored" by one or more department stores surrounded by a parking lot,

while the term arcade is more often used, especially in Britain, to refer to a

narrow pedestrian-only street, often covered or between closely spaced

buildings (see town centre). A larger, often only partly covered but exclusively

pedestrian shopping area is in Britain also termed a "shopping centre",

shopping precinct or pedestrian precinct. The majority of British shopping

centres are in town centres, usually inserted into old shopping districts, and

surrounding by subsidiary open air shopping streets. A number of large out-of-

town "regional malls" such as Meadowhall, Sheffield and the Trafford Centre,

Manchester were built in the 1980s and 1990s, but there are only ten of them

or so and planning regulations prohibit the construction of any more. Out-of-

town shopping developments in the UK are now focused on retail parks, which

consist of groups of warehouse style shops with individual entrances from

outdoors. Planning policy prioritizes the development of existing town centres,

although with patchy success. The Metro centre, Gateshead, is the largest

shopping centre in Europe with over 330 shops, 50 restaurants and an 11

screen cinema

Classes of malls


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In many cases, regional and super-regional malls exist as parts of large

superstructures which often also include office space, residential space,

amusement parks and so forth. This trend can be seen in the construction and

design of many modern supermalls such as Cevahir Mall in Turkey. The

International Council of Shopping Centers' 1999 definitions were not restricted

to shopping centers in any particular country, but later editions were made

specific to the U.S. with a separate set for Europe.

Regional mallsA regional mall is, per the International Council of Shopping Centers, in the

United States, a shopping mall which is designed to service a larger area than a

conventional shopping mall. As such, it is typically larger with 400,000 square

feet (37,000 m2) to 800,000 square feet (74,000 m2) gross leasable area with

at least two anchors and offers a wider selection of stores. Given their wider

service area, these malls tend to have higher-end stores that need a larger area

in order for their services to be profitable. Regional malls are also found as

tourist attractions in vacation areas.

Super-regional malls


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A super-regional mall is, per the ICSC, in the U.S. a shopping mall with over

800,000 square feet (74,000 m2)[6] of gross leasable area, and which serves as

the dominant shopping venue for the region in which it located.

Outlet mallsAn outlet mall (or outlet centre) is a type of shopping mall in which

manufacturers sell their products directly to the public through their own

stores. Other stores in outlet malls are operated by retailers selling returned

goods and discontinued products, often at heavily reduced prices. Outlet stores

were found as early as 1936, but the first multi-outlet mall, Vanity Fair, located

in Reading, PA didn't open until 1974. Belz Enterprises opened the first

enclosed factory outlet mall in 1979, in Lakeland, TN, a suburb of Memphis.

Components:-Food courtA shopping mall food court consists of food vendors offering a selection of

food. At a typical food court, food is ordered at one of the vendors and then

consumed at a seating area, which is normally a plaza surrounded by the

counters of the multiple food vendors.

Department stores


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When the shopping mall format was developed by Victor Gruen in the mid-

1950s, signing larger department stores was necessary for the financial stability

of the projects, and to draw retail traffic that would result in visits to the

smaller stores in the mall as well. These larger stores are termed anchor store

or draw tenant. Anchors generally have their rents heavily discounted, and may

even receive cash inducements from the mall to remain open. In physical

configuration, anchor stores are normally located as far from each other as

possible to maximize the amount of traffic from one anchor to another.

Dead mallsIn the U.S, as more modern facilities are built, many early malls have become

largely abandoned, due to decreased traffic and tenancy. These "dead malls"

have failed to attract new business and often sit unused for many years until

restored or demolished. Interesting examples of architecture and urban design,

these structures often attract people who explore and photograph them. This

phenomenon of dead and dying malls is examined in detail by the website

Deadmalls.com, which hosts many such photographs, as well as historical

accounts. Until the mid-1990s, the trend was to build enclosed malls and to

renovate older outdoor malls into enclosed ones. Such malls had advantages

such as temperature control. Since then, the trend has turned and it is once

again fashionable to build open-air malls. Some enclosed malls have been

opened up, such as the Sherman Oaks Galleria. In addition, some malls, when


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replacing an empty anchor location, have replaced the former anchor store

building with the more modern outdoor design, leaving the remainder of the

indoor mall intact, such as the Del Amo Fashion Center in Torrance, California.The Mall, an out-of-town shopping centre at Patchway, near Bristol, England.

Escalators connect the upper and lower levels.

The Mall, an out-of-town shopping centre at Patchway, near Bristol, England.

Escalators connect the upper and lower levels.

New trendsIn parts of Canada, it is now rare for new shopping malls to be built, as outdoor

outlet malls or big box shopping areas known as power centres are now

favored, although the traditional enclosed shopping mall is still in demand by

those seeking weather-protected, all-under-one-roof shopping. In addition the

enclosed interconnections between downtown multi story shopping malls

continue to grow in the Underground city of Montreal (32 kilometres of

passageway), the PATH system of Toronto (27 km of passageway) and the

Plus15 system of Calgary (16 km of overhead passageway).

Vertical malls


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Due to the high land price in densely populated conurbations such as Hong

Kong, and the higher yield on retail property, the "vertical mall" is common -

Times Square is considered the first of its kind. The concept of the vertical mall

departs from the common western model of the flat shopping mall: space

allocated to retail is configured over a number of storeys accessible by

escalators linking the different levels of the mall. The challenge of this type of

mall is to overcome the natural tendency of shoppers to move horizontally and

encourage shoppers to move upwards and downwards.

Shopping property management firmsA shopping property management firms is a company that specializes in

owning and managing shopping malls. Most shopping property management

firms own at least 20 malls, often specializing in one area. Some shopping

property management firms use a similar naming scheme for most of their

malls, for example Mills Corporation puts "Mills" in most of their mall names

and SM Prime Holdings of the Philippines puts "SM" in all of their malls in the

country and abroad including their anchor stores, SM Department Store, SM

Appliance Center. SM Hypermarket, SM Cinema and SM Supermarket.

A Questionable Future


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By the 1990s, with nearly forty thousand shopping centersof which almost

two thousand were regional mallssigns of an oversaturated and changing

market became evident: older malls were in decline; discount retailers like Wal-

Mart and the advent of e-commerce were making deep inroads into mall sales;

and the shift of women into the workplace had eroded malls' customer base.

Hailed as the signature structures of postwar American affluence not long

before, these cathedrals of consumption thus entered the new millenium facing

an uncertain future.


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About Atria millennium mallATRIUM, The Millennium Mall is a shopper's destination, situated next to Nehru

Planetarium in the heart of Mumbai City on Dr. Annie Beasant road, Worli.

The proposed Bandra-Worli sea link expressway integrates into main traffic at

this location offering the project maximum visibility and connectivity.

The Mall, designed by the world famous Architect Hafeez Contractor greets its

customers with a quiet dignified ambience that spells true class.

The Mall is a five level complex consisting of Shopping, Entertainment, Food &

Leisure catering to the needs of both middle & upper middle class of urban

people consisting of various choices of retail outlets and showrooms that will

offer an exclusive array of products.

The Ground, I, II & III levels consists of Large Showrooms, Departmental Stores

with a variety of national and international brands. While on IVth level of the


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complex is Entertainment with Video Games, Pool, Bowling alley and the Food

Court right below the sky light.

An imposing sixty feet high entrance with hi-tech bolted glass leads into the

well-appointed atrium with abundant natural light from the glass skylight

above.

The meticulously detailed atrium with granite on the floor and clear glass

facades around is the central focus. Three high capacity all glass elevators and

8 top quality all glass and light escalators are the first of its kind for a public

building in the country.

The building is centrally air-conditioned with energy efficient high-

performance double glass facade and permanent granite finish on the external

envelope.

The Food Court is situated on the fourth floor right beneath the Glass Skylight

an ideal place for the shoppers overlooking the naturally lighted atrium.

While the crowning glory of ATRIA is the full Glass Multi-Cuisine Restaurant on

the IVth level overlooking the busy Dr. Annie Beasant Road & Worli Sea Face. To

add to your mood there is a Discotheque right next to the restaurant.


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Some of the main features of Atria Mall are as follows-

- 330 Feet expanse and 24 feet high clear glass frontage for showrooms- Full height Granite / Marble / Glass in and around entrance and lift

lobbies

- High capacity surround glass elevators & escalators- High performance tinted and glass facade- Restaurant- Discotheque- Ideal floor to floor height- Permanent stone cladding on external envelope- Flame finish granite on external paving- Entertainment Zone- Separate service lifts- 1,00,000 sq. ft. car parking in double basement- Advance fire detection and fire fighting system- Professionally Managed and Maintained


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The team which made Atria into a reality includes mainly Alif enterprises ltd

who are the developers of the mall. Without their initiative and investment this

mall could not have even started.

The RCC consultants or the structural consultants for this mall are U.N.Kamath

and his team mates. They guided, supervised and executed the actual

construction work. They are the ones who have made this mall into a world

class, magnificent and grand structure.

The design consultant for this mall is Hafeez Contractor. He is a world famous

architect and has designed some of the best buildings in the world. He

designed the concept of how Atria millenium mall will look. As he is an

experienced person, the company gave the job to him with full trust.

The advocates and solicitors for this mall are Kishore Thakordas & Company.

They guided the company through the legal aspects. They helped in getting all

the legal permission from the government. They even helped in guiding the

company through the tie-ups and agreements with other companies. They took

care of all the legal aspects of raising capital.

The main architects of this mall are S. G. Dalvi & Associates. They made the

initial designs of this mall. They planned the layout and look.

The service consultants for this mall are Rumi H. Bharucha Consultants (P) Ltd.

A service consultant means company's representative responsible for


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customers needs and coordinating workflow, up selling jobs and maintaining

productivity.

The location of the mall:-

ATRIA complex is located on Dr. Annie Beasant Road, Worli. The complex is

located on the most prominent location on the prime arterial north - south

traffic corridor. The proposed Bandra - Worli sea link expressway integrates

into main traffic at this location offering the project maximum visibility and

connectivity.

It is equidistant from the business district of Nariman point and suburban

financial district of Bandra - Kurla complex. Close to prime residential areas

and 20 minutes away from the airport. It has by virtue of its location the best

business address within the city limits.


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Their strategyAtria millennium mall (Atria) was started by Alif Enterprises limited (AEL). This

company was started with the intention of starting a world class, high-end,

high class and huge mall.

AEL began with an idea of starting a mall in Mumbai, the financial capital of

India. It made plans and started working on it by the year 1999. In around year

2000 they acquired the land in worli with all the details of their plans. By taking

necessary permissions they started the work on it. Building a mall on that piece

of land took them around three years

The investment done by them is around Rs.1000 crores. It includes everything

from land cost, construction cost, initial advertisement cost, govt taxes &

duties, tie up costs, initial personnel cost etc.

In this mall we find a variety of brands. In our survey we asked them how they

accept brands. They dont take any and every company which can afford to take

a place in the mall. Their criteria also includes that the company which takes on

rent any place in that mall should be a well known, high class international

brand and it should be run by a multi-national corporation. Their mall also

includes many Indian brands but these brands are well acclaimed in many other

countries also. This principle of theirs keeps the mall at a higher status as

compared to other malls in Mumbai. This strategy keeps a good image of the


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mall in the minds of their customers and they help in mouth publicity of the

mall. This is the main way of promotion of their mall.

The location they have chosen for their mall is a great advantage to them. The

road on which it is located is one of the main arteries connecting the downtown

area and the residential areas. Lakhs of people go by this mall every day. They

have not put up a barricade around it so it gives maximum visibility to it.

Its boasts of being one of the biggest malls in Asia so it can be considered that

it has many brands under it as compared to other malls. People will prefer to

come here as they can get to see products of a very wide variety of brands

under one roof.


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FinancialsThe investment done by them is around Rs.1000 crores. It includes everything

from land cost, construction cost, initial advertisement cost, govt taxes &

duties, tie up costs, initial personnel cost etc. This is not all owners capital. It is

divided mainly into three parts i.e. promoters capital/investment, venture

capital and borrowings from financial institutions. The borrowings account for

around 30% of the total investment. The venture capital providers and

promoters are the owners of the company. They have taken the risks so they

enjoy the profit and the losses if any. The borrowings have been taken for a 10

year period so they have to pay it back with interest on time.

The mall has not reached breakeven point till now but they are expecting to do

so by 2009. Till then they are concentrating on only Atria. By 2009 they will

have made a total profit (after taxes) of Rs. 1000 crores.

There are various kinds of liabilities like paying the debts, salaries of

employees, maintaining an employee welfare fund, keeping a sinking fund for

repairs and maintenance, insurances, electricity payments, dividend payouts,

government taxes etc. some of them have to be paid monthly, some have to be

paid as and when needed, some quarterly, half-yearly and yearly. It would be

difficult for them to keep track of all these accounts if handled separately. The

money may even be misused if different departments are made and a


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supervisor is appointed. To avoid this, they collect all the funds except for

dividends on monthly basis and then the funds are directed to their appropriate

purposes through a proper channels. The liabilities are paid and the funds are

kept in liquid assets. Some of the cash is kept in liquid form as suggested by

the government authorities.

Income is generated in mainly three forms viz rent, advertisements and a

minute percentage of profits shared by the outlets. The main income is earned

through the rent and the rest comes from the other two sources. They charge

Rs. 680/sq ft per month to the outlets. The revenue earned from it goes to Rs.

327 crores per year. The combined revenue from the two other sources is Rs.

50 crores per year. Their profit after taxes is around Rs. 170 crores per year.

Their expenditure is Rs. 207 crores per year. The breakup of which is as

follows. Rs. 60 crores is spent on the debt payments, Rs. 48 crores is given as

taxes, Rs. 24 crores is spent on salaries of employees and fees, around Rs. 3

crore is spent on electricity, Rs. 8.76 cr or say Rs. 9 crore is paid to BMC, Rs. 2

crore is spent on getting basic amenities like water and other basic amenities

and the rest i.e. Rs. 61 crores is spent on sinking fund, maintenance of

building, insurance, employee welfare, sponsorships, advertisements,

donations, etc.

In other words we can say that Rs. 101 crores is fixed expenditure and Rs. 106

crores is average variable expenditure.


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Graphs showing expenditure and income (Rupees in Crores) of Atria MilleniumMall

INR 0.00

INR 50.00

INR 100.00

INR 150.00

INR 200.00

INR 250.00

INR 300.00

INR 350.00

INR 400.00

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Expenditure

Income

INR 0.00

INR 500.00

INR 1,000.00

INR 1,500.00

INR 2,000.00

INR 2,500.00

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Cumulative Expenditure

Cumulative Income


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Graph showing decrease in expenditure after repayment of the debts in 2013(Rupeesin crores)

INR 0.00

INR 100.00

INR 200.00

INR 300.00

INR 400.00

INR 500.00

INR 600.00

2008 2009 2010 2011 2012 2013 2014 2015 2016

ExpenditureIncome


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Future plansAEL will be concentrating only on reaching its break-even point till 2009 where

it is expected to reach. Till then the main aim will be reaching the breakeven

point.

After 2009 Atria will be concentrating on getting more international and high

end brands into the mall. It will also be concentrating on making new

developments in the mall such as starting a discotheque and new entertainment

zones.

The company which runs Atria is not planning to launch any of their own

brands or any other mall in the country. It will be concentrating only on Atria.

After a certain span of time i.e. maybe in or after 2013 AEL is planning of

venturing out into real estate and financial services. It will not be going further

into the retail industry.


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ConclusionAs it is a report on mall we have got two conclusions. One is on the general

scenario in India and the other is on Atria millenium mall.

What took many years (around 30) to develop in other countries will take only

three to four years here in India. We can learn from their experience and propel

our development. On the mall culture we can conclude that they are necessary

for the following reasons:-

1. We get everything from groceries and vegetables to footwear, clothes,cosmetics, furnishings and electrical items available under one roof, a

growing middle class with higher disposable incomes is heading for the

malls in droves for this reason.

2. The malls are another sign of the new, prosperous India, of call centers,outsourcing and more disposable income. Although much of rural India

remains in deep poverty, many urban Indians are becoming richer. The

malls are also bringing the semi-rural areas to grow.

3. Malls have brought in the international brands in India and these brandshave become easily accessible to the people because of these malls. To

stay in competition, the Indian brands also have to develop themselves.

This will result in the development of industries as a whole and this in

turn will make the Indian products competitive in the global market.


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4. Foreign mall operators cannot enter India as foreign companies are notallowed to own real estate in India so it has resulted in development of

many domestic real estate companies and the industry as a whole.

There is on important negative point about malls which has to be taken into

consideration. Not all mall operators are likely to benefit equally, only the

ones in favorable locations and having the right format and suitable

strategies are likely to remain long-term players. But Indian businessmen

are known for their sheep mentality. A single success in any new field

spawns many me-too imitators. However, as is evident from Indian business

history, many private airlines, courier companies and granite exporters have

bitten the dust.

About Atria we can say that it has a bright future and it will do well at least

till 2015. All the strategies implemented by it will help it remain successful

as it will have a strong backing of big, high-end and international brands

and companies. Its profits will go up with a huge difference from 2013

onwards as it will have cleared all the debts. After 2013 it will even get a

stronger backing as the company which owns it will venture out in new

businesses and it will help atria in getting a stronger financial base.


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Webliographywww.atriamumbai.in

http://lifestyle.iloveindia.com/lounge/mall-culture-in-india-501.html

http://promiseofreason.com

www.wikipedia.org
http://www.atriamumbai.in/http://www.atriamumbai.in/http://lifestyle.iloveindia.com/lounge/mall-culture-in-india-501.htmlhttp://lifestyle.iloveindia.com/lounge/mall-culture-in-india-501.htmlhttp://promiseofreason.com/http://promiseofreason.com/http://www.wikipedia.org/http://www.wikipedia.org/http://www.wikipedia.org/http://promiseofreason.com/http://lifestyle.iloveindia.com/lounge/mall-culture-in-india-501.htmlhttp://www.atriamumbai.in/

a report on malls

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