OPERATION COST / BUSINESS PLAN (BRAND#GOAT) 2 0 1 6 - 2 0 1 7

EXPLORING OPERATION/ STRATEGY

• CREATE A NICHE DOMAIN WITHIN THE COMPETITIVE FASHION ENVIRONMENT. • OPERATE ON SINGLE BRAND IDENTITY. • ENSURE ADHERENCE TO A STRONG BRAND RECALL VALUE. • ENSURE COMPETITIVE EDGE WITH STRENGTHS IN AESTHETICS, BRAND-HYGIENE & PRICE-POINTS. • TARGET A VERY SPECIFIC CONSUMER ACROSS DEMOGRAPHY, GEOGRAPHY, MARKETED VIA MULTI-SALES CHANNEL

LIKE LICENSING, WHOLESALE, RETAIL & E-COMMERCE. • COVER 360-DEGREE MARKETING CAMPAIGN BOTH TRADITIONAL AND DIGITAL (SOCIAL MEDIA). • BUSINESS FORMAT AS PORTFOLIOS & ACQUISITION, ENSURING STRONG CASH FLOW WHICH IS UTILIZED THROUGH

RE-INVESTING IN BUSINESS, PAY DOWN DEBTS, FUND FUTURE ACQUISITIONS, REPURCHASE OF STOCKS • THEY CREATE WORLD CLASS TEAMS & PARTNERS ENSURING PASSION, INTEGRITY, INDIVIDUALITY, PARTNERSHIP,

ACCOUNTABILITY.

SALES CHANNELS P R O J E C T E D R E V E N U E S H A R I N G

CHANNEL BUSINESS SHARE

PROJECTED MONTLY SALES

FY 2016-17 (In ₹ Lakhs)

PROJECTED ANNUAL SALES

FY 2016-17 (In ₹ Lakhs)

CHANNEL DESCRIPTION

AVERAGE MONTHLY

SHARE (In ₹ Lakhs)

AVERAGE ANNUAL SHARE

(In ₹ Lakhs)

E-COMMERCE /ONLINE SALES 20%

₹ 20.97 ₹ 251.64

E-COMMERCE FLAGSHIP, FASHION MARKET PLACE, MARKET PLACE, DISCOUNT STORES, INTERNATIONAL E-COMMERCE &

ONLINE WHOLESALE ₹ 4.19 ₹ 50.33

FLAGSHIP BRAND STORES 35% EXCLUSIVE BRAND OUTLETS, KIOSKS & HYBRID BRAND

STORES (CLICK & MORTAR CONCEPT) ₹ 7.34 ₹ 88.07

OFFLINE (DISTRIBUTION) SALES 45%

MULTI BRAND OUTLETS (MBO), LARGE FORMAT STORES (LFS), THIRD PARTY LIQUIDATION, SHOP IN SHOPS (SIS) &

WHOLE SALE ₹ 9.44 ₹ 113.24

TOTAL 100% ₹ 20.97 ₹ 251.64

SALES & SALES FORECAST P R O J E C T E D 5 - Y E A R S G R O W T H P L A N

** Average sales per month is projected at YOY Growth rate @ 100% (this is subject to actual projections/achievement) ** Inventory calculations done at CP calculated @ 2.75 (could be increased to 3.00) of MRP. Ideal Inventory at the rate of 2X (Holding stock at 30 days turnaround) ( Inventory = monthly Sales x 2) total ANNUAL INVENTORY PLAN = (PER MONTH SALES X 12 MONTHS) + INVENTORY PER MONTH

DESCRIPTION 2016-17 2017-18 2018-19 2019-20 2020-21

Average Units Sales Per Month** 5000 10000 20000 40000 80000

Average MRP of Product ₹ 699.00 ₹ 799.00 ₹ 899.00 ₹ 999.00 ₹ 1,099.00

Whole Sale Price or Net Realized Value (@ 40% Mark down on average MRP) (In ₹) ₹ 419.40 ₹ 479.40 ₹ 539.40 ₹ 599.40 ₹ 659.40

Average Value Sales Per Month* (In ₹ Lakhs) ₹ 20.97 ₹ 47.94 ₹ 107.88 ₹ 239.76 ₹ 527.52

Inventory Value Per Month** (In ₹ Lakhs) (@ Net C0st Value calculated at 2.75 MF)

₹ 25.42 ₹ 58.11 ₹ 130.76 ₹ 290.62 ₹ 639.42

Total Annual Inventory (In Units) 65000 130000 260000 520000 1040000

TOTAL ANNUAL SALES VALUE*** (In ₹ Lakhs) ₹ 251.64 ₹ 575.28 ₹ 1,294.56 ₹ 2,877.12 ₹ 6,330.24

REVENUE VS EXPENDITURE P R O J E C T E D 2 0 1 6 - 2 0 1 7

DESCRIPTION APR’16 MAY’16 JUN’16 JUL’16 AUG’16 SEP’16 OCT’16 NOV’16 DEC’16 JAN’17 FEB’17 MAR’17

MONTLY REVENUE % SHARE 5% 5% 8% 10% 10% 12% 18% 5% 5% 5% 12% 5%

AMRP SALES @ 699 FOR 5000 UNITS (IN ₹ LAKHS) ₹ 20.97 ₹ 20.97 ₹ 33.55 ₹ 41.94 ₹ 41.94 ₹ 50.33 ₹ 75.49 ₹ 20.97 ₹ 20.97 ₹ 20.97 ₹ 50.33 ₹ 20.97

B% EXPENDITURE @ 25% (APPROX ALL INCLUSIVE MINUS BACK END OPERATIONS)

25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25%

C EXPENDITURE (IN ₹ LAKHS) ₹ 5.24 ₹ 5.24 ₹ 8.39 ₹ 10.49 ₹ 10.49 ₹ 12.58 ₹ 18.87 ₹ 5.24 ₹ 5.24 ₹ 5.24 ₹ 12.58 ₹ 5.24

DMARK DOWN @ 40% (IN ₹ LAKHS) ₹ 8.39 ₹ 8.39 ₹ 13.42 ₹ 16.78 ₹ 16.78 ₹ 20.13 ₹ 30.20 ₹ 8.39 ₹ 8.39 ₹ 8.39 ₹ 20.13 ₹ 8.39

E TOTAL C+D (IN ₹ LAKHS) ₹ 13.63 ₹ 13.63 ₹ 21.81 ₹ 27.26 ₹ 27.26 ₹ 32.71 ₹ 49.07 ₹ 13.63 ₹ 13.63 ₹ 13.63 ₹ 32.71 ₹ 13.63

F GROSS MARGIN % 54% 54% 54% 54% 54% 54% 54% 54% 54% 54% 54% 54%

E X P E N D I T U R E A N A L Y S I S

* REFER PAGE# 7 FOR THE PLANNED EXPENDITURE

DESCRIPTION TOTAL APR’16 MAY’16 JUN’16 JUL’16 AUG’16 SEP’16 OCT’16 NOV’16 DEC’16 JAN’17 FEB’17 MAR’17

EXPENDITURE (IN ₹ LAKHS) ₹ 104.84 ₹ 5.24 ₹ 5.24 ₹ 8.39 ₹ 10.49 ₹ 10.49 ₹ 12.58 ₹ 18.87 ₹ 5.24 ₹ 5.24 ₹ 5.24 ₹ 12.58 ₹ 5.24

DESCRIPTION MINIMUM MAXIMUM

TOTAL EXPENDITURE PER ANNUM ₹ 104.84 ₹ 104.84

AVERAGE EXPENDITURE PER ANNUM ₹ 8.74 ₹ 8.74

PLANNED EXPENDITURE ON OPERATIONS (BARE MINIMUM)* ₹ 7.75 ₹ 10.75

EXCESS/DEFICIT ₹ 0.99 -₹ 2.01

THE PEOPLE WHO MATTER C O R E T E A M M E M B E R S F O R A S U S T A I N A B L E M O D E L

* Profiles that should/could be be added as per business improvement. * (+) are team members which will be added as per revenue increase based on target plan.

DEPARTMENT PROFILING NUMBER COST/MONTH COST/ANNUM

BUSINESS HEAD : OVER ALL BUSINESS REVENUE & OPERATIONS CEO 1 ₹ 2.50 ₹ 30.00

R & D : DESIGN & BUYING : PRODUCT PLANNING TO BUYING ACROSS CHANNELS, ENSURES THE PRODUCTS ARE SALE ABLE AND AS PER CUSTOMER EXPECTATIONS

HEAD BUYER & TEAM 1 (+2) ₹ 1.00 (₹1.75) ₹ 12.00 (₹ 21.00)

SALES : BUSINESS HEAD TO MULTI BRAND OUTLETS (MBO), LARGE FORMAT STORES (LFS), THIRD PARTY LIQUIDATION, SHOP IN SHOPS (SIS) & WHOLE SALE

SALES HEAD & TEAM 1 (+2) ₹ 1.00 (₹1.75) ₹ 12.00 (₹ 21.00)

*RETAIL OPERATIONS : BUSINESS HEAD TO THE RETAIL SPACE : EXCLUSIVE BRAND OUTLETS, KIOSKS & HYBRID BRAND STORES (CLICK & MORTAR CONCEPT)

RETAIL HEAD & TEAM 1 (+2) ₹ 1.00 (₹1.75) ₹ 12.00 (₹ 21.00)

*BRANDING & MARKETING (ONLINE/OFFLINE) : BRAND VISIBILITY AND SALES SUPPORT TO ENSURE THAT BRAND RECALL IS ALWAYS OPTIMUM

MARKETING HEAD & TEAM 1 (+2) ₹1 .00 (₹1.75) ₹ 12.00 (₹ 21.00)

*ANALYTICS / E-COMMERCE BUSINESS : HANDLES THE PERFORMACNCE OF THE BRAND THROUGH ACCURATE ANALYTICAL SUPPORT & ALSO MANAGES THE ECOMMERCE BUSINESS LIKE E-COMMERCE FLAGSHIP, FASHION MARKET PLACE, MARKET PLACE, DISCOUNT STORES, INTERNATIONAL E-COMMERCE & ONLINE WHOLESALE

PRODUCT HEAD 1 (+2) ₹ 1.00 (₹ 1.75) ₹ 12.00 (₹ 21.00)

CUSTOMER CARE : COMMUNICATE AND TAKE CARE OF CUSTOMER GRIEVANCES, PRIMARILY FOR ONLINE.

EXECUTIVES 1 ₹ 0.50 ₹ 6.00

SUPPORT STAFFF 2 ₹ 0.25 ₹ 3.00

TOTAL 9 (19) ₹ 8.25 (₹ 12.00) ₹ 99.00 (₹ 144.00)

TOTAL FRONT-END OFFICE COST

Excluding other miscel laneous costs which wi l l be subject to the business growth & f ine tuning of the cash cycle:

1. Brand out le ts / Brand stores. 2. Expanding business in dis tr ibut ion 3. Opening up onl ine stores, ser vers & miscel laneous.

COST HEAD BARE MINIMUM PER MONTH

2016-2017 (PER MONTH)

2016-2017 (PER ANNUM)

MANPOWER ₹ 5.25 ₹ 8.25 ₹ 99.00

OFFICE ADVANCE N/A N/A ₹ 6.00

OFFICE INTERIORS & FURNITURE ₹ 5.00

OFFICE RENTALS (Approx. 1500 Sq. Ft) ₹ 1.00 ₹ 1.00 ₹ 12.00

OFFICE MAINTENANCE (Electricity, Telephone,etc) ₹ 0.25 ₹ 0.25 ₹ 3.00

SALES EXPENDITURE (TRAVEL ETC) ₹ 0.50 ₹ 0.50 ₹ 6.00

BUSINESS TRAVELS ₹ 0.50 ₹ 0.50 ₹ 6.00

MISCELLANEOUS ₹ 0.25 ₹ 0.25 ₹ 3.00

TOTAL ₹ 7.75 ₹ 10.75 ₹ 140.00