8/2/2019 Shoppers Stop History _ Shoppers Stop Ltd Company History & Profile

1/2

4/22/12 Shoppers StopHistory | Shoppers Stop Ltd Company History & Profile

1/2economictimes.indiatimes.com/infocompanyhistory.cms?companyid=2646&prtpage=1

www.economictimes.indiatimes.com

Company History - Shoppe rs Stop

Incorporated as a private limited comp any on June 16, 1997, we beacme a deem ed public lim ited company on

December 8, 1997 . Pursuant to an amendm ent to the Companies Act in the year 2000, our Company was converted

from a deem ed public com pany to a full fledged public company with effect from October 6, 2003.

Prior to incorporation two of our existing s tores at Mumbai and Bangalore were run by a division of Ivory Properties &Hotels Lim ited (IPHL) under the brand named Shoppers' Stop. Soon after our incorporation, IPHL executed a

conducting agreement with us dated November 3, 1997 giving us a right to participate in running the departmental

stores which included the right to use (i) the Mumbai Shopper's Stop property (ii) the Bangalore Shoppers ' Stop

property (iii) the agreements and arrangemen ts with various parties relating to purchases , sales, franchises and co-

spons orship (iv) the brands developed (v) the diverse modes of rendering services to the customers (vi) the data

bank of Shopper's Stop, the members hip of the First citizen's Club etc; (vii) the software, various systems and training

programm es (viii)books and cass ettes providing knowledge for retail trade, (ix) the business sport systems and (x)

the names of the stores and logos of the stores.

This agreem ent was terminated and a fresh Conducting Agreement was executed with IPHL dated March 31, 2000.

IPHL signed a Deed of Assignm ent dated March 31, 2000 with us for transferring the owners hip of certain

trademarks, trade names , goodwill and b rand names in our favour known as SHOPPER' STOP (label), STUDIO KRT

(label), STOP (label with color schemes)STOP(device), STOP(label), FIRSTCITIZENS'CLUB, BLUESBIZAAR, BLUES

BIZARRE, BLUESBIZAR (word & label) BLUES BIZAAR (word & comple te label) i(in-house brand), i(in-house brand),

B (in-house brand).

Out of the various trademarks under which we presently market our in-house products only six are registered in our

name. Three of the trademarks we presently market som e of our in-house products a re registered in the name o f our

Promoter, Ivory Properties and Hotels Pvt. Ltd. and applications are yet to be made to register them in the nam e of

our Comp any. For the rest, applications for the registration of these trademarks in the name of our Company have

been submitted to the relevant trademark authorities and are s till pending with them.

We initially acquired 790 equity shares of Rs 100 each in UTL from some of the existing shareho lders and increas ed

our stake in the com pany to 1265 Equity Shares (25.3% of the equity capital) on March 23, 1999 at a purchas e price

of Rs.100 per share. UTL was a trading company, and was one o f our suppliers for garments and acces sories . We

enhanced our s take in UTL to 100% in February 2000.

UTL has dis continued its trading operations from January 2003. UTL handles our dis tribution and logistic function

since February 2000 and now operates through four dis tribution centers located in Mumbai, Bangalore, New Delhi

and Kolkata.

Shoppers' Stop Services (India) Ltd was incorporated as ou r wholly owned subsidiary in March 2000 to provide

shared s ervices and consultation, in accounting and logis tics operations. Currently, this subsidi ary has lim ited

operations.

Shoppers' Stop.Com (India) Ltd was incorporated in February 2000 as our wholly owned subs idiary to provide on-lineshopping facilities to our customers. As this venture did not yield des ired results, its operations were discontinued in

February 2001.

Profound Readers' Choice Trading (India) Ltd was incorporated in November 1999 as our subsidiary and acquired

`Crossword', a chain of books and music s tores, from India Book Hous e Ltd (IBHL) under trademark and s tyle of

Cross word, as a going concern by way of slump sale on March 31, 2000. The Crossword Division from IBHL was

acquired at a purchase cons ideration of Rs.137.5 mn for the whole of the acquired bus iness undertaking. The

Deeds of Ass ignment between IBHL and Profound Readers' Choice Trading (India) Ltd were signed on March 31,

2000 & July 5, 2000 for ass ignment of trademarks of Crossword.

Profound Readers' Choice Trading (India) Ltd changed its name to Cross word Bookstores Ltd (Crossword) and has

ICICI Trusteesh ip Services Ltd a/c ICICI Emerging Sectors Fund as it's equity investor holding 49% of its equity, and

is governed by a separate sha reholders' agreem ent.

Milestones of Our Busines s

Year Events

1991 IPHL opened its first Shoppers' Stop store selling men's wear at Andheri (Mumbai)

1992 Ladies section added

1993 Children and non apparel accessories sections added

Disney carnival organized, with official Disney characters (Mickey, Minnie, Donald and Goofy) participating, In house

Retail Management Trainee Programme s tarted

1994 First Citizen Club loyalty card launched

1995 Second store opened (Bangalore)

1996 Festival of Britain celebrated in association with the Commercial Department of the British Consulate

1997 Shopper's Stop Limited was incorporated on June 16

1997 Festival of Indian tradition and culture,`Parikrama', launched Co-branded credit card launched for FCC

members in partnership with HSBC

1998 Third s tore opened (Hyderabad), the then larges t with 72,287 sq. ft of retail area SSL co-opted as India's only

mem ber to the Intercontinental Group ot Department Stores (IDGS)

1999 Implem ented JDA Retail ERP (a global l eader in retail ERP packages ) Fourth and Fifth stores launched (Jaipur

& Delhi)

2000 Sixth & Seventh stores opened (Chennai & Chem bur, Mumbai)

8/2/2019 Shoppers Stop History _ Shoppers Stop Ltd Company History & Profile

2/2

4/22/12 Shoppers StopHistory | Shoppers Stop Ltd Company History & Profile

2/2economictimes.indiatimes.com/infocompanyhistory.cms?companyid=2646&prtpage=1

Placed equity with external investors to rais e Rs 600 m n

Acquired Cros sword, one of India's leadi ng book re tailing chain, from India Book House in partners hip with ICICI

Trusteeship Services Limited (A/c ICICI Emerging Sectors Fund)

2001 Implem ented Warehousing Module of JDA, Auto Replenishment and Auto Purchase Order system and

business to business connectivity

Eight and Ninth store launched (Pune & Bandra, Mumbai)

Profit Linked Reward System (PLRS) introduced (or all employees

2002 Tenth s tore opened (Kandivali, Mumbai)

2003 Received various indus try awards from CMAI (including Best Retailer of the Year) and from Nass com (Best IT

Practice in Retail Category) Signed Austin Reed licence for m en's ou terwear for India exclusively Three stores

launched taking the total number of s tores to 13 (Mulund, Mumbai, Gurgaon and Kolkata)

2004 Fourteenth, fifteenth and si xteenth stores launched in February 2004 (Malad, Mumbai), June 2004 (Salt Lake

City, Kolkatta) and October 2004 (Bangeratta Bangalore) respectively taking total retail area to 752,848 s q ft Received

Superbrand status for 2003 and 2004

Received Images Retail award for the "Most favoured retail des tination of the year" - September, 2004

Received the "Organization With Innovative HR Practices" award at the HR Excellence Awards organized by Mid-Day,

Big Break & Daks - November 2004

Reveived Top retailer 2004 India Bronze award given by Retail Asia-Pacific Top 500 awards

Auditor Qualifications ': Statutory Auditor "Deloitte Haskins & Sells" vide its rep ort dated February 23, 2005 has

mentioned the following qualification in respect of operations of Upasna Trading Lim ited which is being reproduced

from their report as follows:

(i) The operations of Upasna, a 100% s ubsidi ary of SSL are entirely dependent on SSL and SSL is comm itted to

provide the necessary level of financial support to Upasna to enable it to operate and pay its debts, if required. We

are informed that managem ent plans to enhance Upasna 's role in the distribution and logistics operations of group

companies and it will therefore be able to repay SSL's dues in the near future. Of the Rs.39.30 million and Rs.39.84

million ou tstanding as at 30 November 2004 and 31 March 2004 respectively, Rs.26.42 million and Rs .25.30 milion

respectively, had been advanced to meet certain disputed liabilities which have been paid by Upasna under protest

and SSL has correspondingly included s uch amoun ts under contingent liabilities, [see note 2 in Annexure III (a)]. In

respect of the balance of Rs . 12.88 million and Rs. 14.54 m illion respectively, since the im pact of non-recovery, if any,

cannot be quan tified the Sum mary Statements [Annexures I (a) and II (a)] have not been adjusted.

For further details, please refer to section "Consolidated Financial Information" in this Red Herring Prospectus .

Our corporate s tructure:

Our existing corporate structure is as under:

Shopper's Stop Ltd

Cross word Upas na Shopper's Stop.Com Shopper's Stop Bookstores Ltd. Trading Ltd. (India) Ltd. Services (India)

Ltd

51%* 100% 100% 100%

* An agreement dated February 28, 2005 has been entered into between Shoppers Stop, ICICI Trusteeship Services

Ltd. (in its capacity as trustee of ICICI Emerging Sectors Fund a s cheme o f ICICI Emerging Sectors Trust/Mutual

Fund) (hereinafter "ICICI") and Crossword Books tores Limited. Pursuant to the provisions of the said agreement our

Company has agreed to purchase 46856 25 equity shares of Cross word from ICICI not later than June 30, 2005.

Pursuant to clause 4 of the said ag reement in the event that the sale and purchase of the abovmentioned s hares is

not completed by June 30, 2005 (unless otherwise extended by mutual consent) the sai d agreement shall terminate

and ceas e to have effect.

2005

-Shoppers' Shop has fixed the price band for its maiden pub lic offer of 69.46 lakh shares between Rs 21 0 and Rs

250 per share. The issue is slated to open on April 27 and close on May 3. This price band allows the company to

raise a m aximum of Rs 173 crore. Post-issue, the promoters' stake would touch around 67 per cent from the existing

79.75 per cent holding. The book-running lead managers are Enam Financial Consultants Pvt Ltd, JM Morgan

Stanley Pvt Ltd, Kotak Mahindra Capital Com pany Ltd, ICICI Securities Ltd and co-book running m anager is IL&FS

Investmart Ltd.

-The IPO of Shopper's Stop is oversubscribed by 5.3 times on the first day of the offer, with bids received for 3.04

crore shares as against 57.6 lakh shares on offer in the price band of Rs 210 to Rs 250 .

- The Shoppers' Stop IPO, which began on April 28 and closed on May 4, is s ubscribed 8 .6 times.

- Shoppers' Stop scrip made a sparkling debut on the bourses on May 23. The counter closed at Rs 372.60 on the

Bombay Stock Exchange (BSE), 56.60 per cent higher than its iss ue price of Rs 238. The counter opened at Rs 335

on the BSE a 40.9 per cent premium over the iss ue price.

-Shoppers Stop enters into franchisee agreement with Mothercare PLC, UK

-Shoppers' Stop sets up new outlet in Bangalore