SUMMER INTERNSHIP REPORT

ON

To Understand and Analyse the Expansion of Mini-TRS

in Tier- 4, Tier-5 Towns

Of Raymond Ltd. (West India)’

(2017-2019)

Submitted by:
Akshay Verma
PGDM – RM
17RM912

Industry Mentor Faculty Mentor

Mr Vikrant Nitnaware Dr. Archana Singh
Franchise Operations Asst. Professor

Regional Head (North) BIMTECH, Greater Noida

Raymond Ltd.

1
 Letter of Authorization

I, Akshay Verma, a student of Birla Institute of Management Technology (BIMTECH),

hereby declare that I have worked on a project titled “Understand and Analyse the
expansion of Mini-TRS in Tier-4, Tier-5 towns in Mumbai ” during my summer
internship at Raymond ltd. in partial fulfilment of the requirement for the Post Graduate
Diploma in Management program.

I guarantee my research work to be authentic and original to the best of my knowledge in

all respects of the process carried out during the project tenure.

My learning experience at Raymond under the guidance of Mr. Vikrant Nitnaware, Regional
Head (West) and Dr. Archana Singh, Birla Institute of Management Technology has been
truly enriching, exciting and enlightening.

5TH July 2018 Akshay Verma

17RM912

Birla Institute of Management Technology

Akshay.verma19@[Link]

2
 Summer Project Certificate

This is to certify that Mr. Akshay Verma Roll No. 17RMA912 a student of PGDM
(Retail) has worked on a summer project titled “Understand and Analyse the expansion of
Mini-TRS in Tier-4, Tier-5 towns in (West India)”. After Trimester-III in partial
fulfilment of the requirement for the Post Graduate Diploma in Management programme.
This is his original work to the best of my knowledge.

Date: July 2018

Dr. Archana Singh

3
Training Certificate

4
 Acknowledgement

I would like to gratefully acknowledge the contribution of all the people who took active part
and provided valuable support to me during the course of this project. To begin with, I would
like to offer my sincere thanks and heartfelt gratitude to Mr. Vijay Arodi, FOFO-National
Sales Head – (North &West) and my industry mentor Mr. Vikrant Nitnaware, FOFO-
Regional head – (West) without their support and valuable suggestions during the research,
the project would not have been accomplished.

My heartfelt gratitude also goes to the entire team of Raymond for their co-operation
and willingness to answer all my queries, and provide valuable assistance.

I also sincerely thank Dr. Archana Singh, my faculty mentor at BIMTECH, who
provided valuable suggestions, shared his rich corporate experience, and helped me
script the exact requisites.

Last, but not the least, I would like to thank all the vendors and customers for sharing their
experience and giving their valuable time to me during the course of my project.

Akshay Verma
17RM912

5
 Letter of Transmittal

July 2018

Mr. Vikrant Nitnaware,

Regional head (West)

Raymond ltd.

Dear Sir,

SUB: Summer Project Report

Attached herewith is a copy of my summer-project titled – “Understand and Analyse the

expansion of Mini-TRS in Tier-4, Tier-5 towns in (West India) which I am submitting
in order to mark the completion of my summer project at your organization. This report was
prepared by me using the best practices and summarizes the work performed on the project
and is being submitted in partial fulfilment of the requirements for award of diploma.

I would like to mention that the overall experience with the organization was very
enriching, and helped me to know how work is carried out in real practice with the help
of your esteemed organization. I feel honoured that I got an opportunity to work with
Raymond, a company of great repute.
I hope I did justice to the project and added some value to the
organization. Suggestions/comments would be appreciation
Yours truly,

Page 6

6
 DECLARATION

I hereby declare that this project report titled “Understand and Analyse the
expansion of Mini-TRS in Tier-4, Tier-5 towns in (West India))”. submitted in partial
fulfilment of the degree of PGDM is a record of original work carried out by me under the
supervision of Vikrant Nitnaware ,Corporate Instructor, Raymond Ltd. and has not formed the
basis for the award of any other degree or diploma, in this or any other Institution or
University. In keeping with the ethical practice in reporting systematic information, due
acknowledgments have been made wherever the findings of others have been cited.

Akshay Verma

PGDM – Retail

17RM912

7
 Table of Contents

[Link] Contents
Page No.

1. Letter of Authorization 2

2. Summer Project Certificate 3

3. Training Certificate 4

4. Acknowledgment 5

5. Letter of Transmittal 6

6. Declaration 7

7. List of Tables 9

8. List of Figures 10

9. Glossary of Abbreviations 11

10. Executive Summary 12

11. Introduction 14

12. Process 15

13. What we do as a business Development Executive 15

14. Leads 15

15. Meeting with the client 16

16. Investment Assessment 16

17. Establishment 17

18. Market Overview 18

19. Investments 19

20. About the Company 20

21. Textile 20

22. Engineering 20

8
23. Aviation 20

24. Our Reach in Textile Sector 21

25. Literature Review 23
26. Background of the study 24
27. Process oriented Approach 25
28. Enquiries from prospective towns 33
29. In pursuit stages (Maharashtra, Chhattisgarh and Madhya Pradesh) 45
30. Outcomes from the market visited 47
31. Future Prospective 49
32. Recommendations 50
33. References 51

9
List of Table and Figures

[Link] Contents
Page No.

1. Snapshot of Raymond Shop 14

2. Production of Raw Cotton 19

3. List Of Brands 23

4. Mini Trs Model 32

5. Enquiries from Prospective Town 35

6. State wise Bifurcation 36

7. Ahmednagar District 38

8. List of Talukas in Ahmednagar District 39

9. Area of Land by Land Type( Ahmednagar) 40

10. Aurangabad district 40

11. List of Talukas in Aurangabad District 41

12. Beed District 42

13. List of Talukas in Beed District 43

14. Nashik District 44

15. List of Talukas in Nashik District 45

16. Pune Ditsrict 46

17. List of Talukas in Pune District 46

18. In pursuit Stages 53

Page 9

10
Glossary of Abbreviations

TRS- The Raymond Shop

MBO- Multi Brand Outlet

EBO – Exclusive Brand Outlet

FOFO- Franchisee owned franchisee operated

COCO- Company owned company operated

COFO- Company owned Franchisee operated

UPT- Unit per transaction

ATV- Average Transaction Value

BD- Business Development

LOI- Letter of intent

BOQ- Bills of Quantity

ASP- Average Selling Price

ROI- Return on Investment

IRR- Internal Rate of Return

PAT- Profit after tax

GDP- Gross Domestic Product

Page

10

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Executive Summary

India’s textile sector is one of the oldest industries in Indian economy. India accounts for
~14 per cent of the world's production of textile fibres and yarns (largest producer of jute,
second largest producer of silk and cotton, and third largest in cellulosic fibre). India has the
highest loom capacity (including hand looms) with 63 per cent of the world's market share.

This report will provide you an idea about how clothing market is penetrated from big metro
cities to the small towns. Raymond who is a leading company in the fabric segment from the
last 90 years has identified the need to open exclusive outlets in the small (Tier-4, 5 & 6
towns). The retail growth from unorganised format to the organised has given market a new
trend to follow in the small markets. With the rising population and purchasing power of
customer, industry has now entering into naïve markets where urbanisation has started
growing gradually.
With store base of around 750+ in 420 towns, Raymond has now started catering into small
towns which have huge demand for fabric and Readymade garments. We have grab this
opportunity and planned to open 300 + stores in next two years. With this huge expansion for
the Raymond shop, it is also important to identify the potential markets with a qualitative
approach by visiting those markets.
Major Players in this industry:

1. Madura Garments

2. Arvind Brands

3. Manyavar

4. Landmark Group

5. Other small players like Do near, Ocm Suiting, Siyarams

Small markets have emerged as a boost for the Textile business. People there have a good idea
about the brand value and recognition. So, they understand how it feels to buy branded
merchandise. We are going forward with an approach to cater these markets with a small
design which will be suitable for those naïve markets. So company have lower down the
investment for the franchisee and developed such design which will give those markets.

12
charm and presence of a Raymond shop. As this model is totally franchisee operated, it is
important for us to choose the right person for right market as a franchise.

It is important for us to analyse the demand and supply drivers of Raymond fabric,
Demographic detail, Location constraints, Trend in the market and all those small aspects
which will drive business for the company and the franchisee.

So, the crux of this whole business model is to:

1. Expanding Raymond shop

2. Revenue Generation

3. Penetrate Raymond store in each and every market

4. To find potential Dealer

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1. Introduction

Raymond group is the Indian brand incorporated in the year 1925 as the Raymond
Woollen near thane Creek, Mumbai. Lala Kailshpat Singhania took over the company in
1944 and in 1958, the first Raymond retail outlet was opened in [Link] they
are in full-fledged expansion mode to grow their presence in smaller towns. They aimed
to reduce the investments for the franchisee to quick the returns. So the new concept was
introduced named as Mini the Raymond shop.

1.1 Let’s look at this new model in the below snapshot:

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Process

We Invite prospects to apply for the franchise through our Paper advertisement or registering
at our website ([Link]). Then we will find the Potential prospect which will fulfil
the requirements prescribed by the company. After the bifurcation, the Business
Development Executive will visit the cliental site and see whether the market has potential
for Mini Trs or not by surveying the market, understand the catchment area, Sales
Projections, Cliental Financial Background and their eagerness and Dedication to run retail
store.

After the approval of the site, BD executive have to ensure all the Documentations which is
prescribed in the prospect.

These documents are then forwarded to the Admin Department for verification. After this
process Letter of intent is issued by the company, and then the store will be operational in
Next 60 days.

2.1 What we do as a business Development Executive:

As a part of business Development, it is our duty to generate new businesses for the company
and this can be only done by visiting the markets and take references from the people who are
already on the shop floor from the decades.

Following points are the structural phenomenon we used to follow:

1) Leads

2) Meeting with client

3) Investment Assessment

15
2.2 Leads:

Generally we got leads from various part of the country through paper advertisements, But
from the existing towns. As a part of our expansion, we have to ensure that the client will go
and search any other location in Tier-4, tier-5 in outskirt. Generally we have bunch of leads
but potential are very less. So working on right prospect with right person will give us a
business proposal for Mini-Raymond show

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2.3 Meeting with the client:

General goals for meeting with the client are to:

1) Understand his business Expectation

2) Give him a better view about the company

3) To get his/her consent on the prospect

4) Expectations setting ( Not bound with the sales)

5) Financial Capability of the client.

6) To know about his existing firms.

7) Willingness to run a retail store.

8) Location assessment.

9) To come on a mutual consent for a new proposal.

2.4 Investment Assessment:

This is the very crucial and the important which we consider before coming on any
consensus. We take the necessary clauses through bank reference letter which we will discuss
in the later part of the report.

What we generally see about the Client

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1) Goodwill in the market

2) Other Business’s Portfolio

3) Monetary valuation of his existing firm

4) His part of interest.

5) Any overdraft facility enjoyed by the bank.

6) Bank reference letter.

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2.5 Establishment:

Establishment is done only after all the formalities have done. The things should be on
track before commencing. Likewise we check following this before establishment

1) Documentation

2) Government approval

3) No land issues

4) Client

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3. Market Overview: Indian Textile Industry

Indian textile industry is famous worldwide. It is extremely volatile, with hand-spun and
hand-woven textile sectors that are at the end of the spectrum. Indian textiles sector is one of
the largest contributor to india’s exports with around 11 percent of total exports.

 Production of raw cotton in india has take a signicant grew with 28 billion in 2007 to
36 Billion in 2018.


 During 2016, of the amount of raw cotton produced in the country, with domestic
consumption totalling to 30 million bales.

Indian textile industry is unique in comparison with other industries in the world. It
employs over 40 million workers and 60 million indirectly. Our industry has the
capability to produce of variety of range and design for the customers in India and
worldwide.

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 3.1 Investments:

The textiles sector has witnessed a spurt in investment during the last five years. The
industry (including dyed and printed) attracted Foreign Direct Investment (FDI)
worth US$ 2.41 billion during April 2000 to December 2018.

Some of the major investments in the Indian textiles industry are as follows:

 Raymond has partnered with Khadi and Village Industries Commission (KVIC) to
sell Khadi-marked readymade garments and fabric in KVIC and Raymond outlets
across India.

 Max Fashion, a part of Dubai based Landmark Group, plans to expand its sales
network to 400 stores in 120 cities by investing Rs 400 crore (US$ 60 million) in the
next years.

 Trident Group, one of the leading manufacturers and exporters of terry towel, home
textile, yarn and paper in India, has entered into a partnership with French firm
Lagardere Active Group, to launch a premium range of home textiles under the
renowned French lifestyle brand Elle Décor in India.

 Raymond Group has signed a Memorandum of Understanding (MoU) with
Maharashtra government for setting up a textile manufacturing plant with an
investment of Rs 1,400 crore (US$ 208.76 million) in Maharashtra’s
Amravati district.

 Reliance Industries Ltd (RIL) plans to enter into a joint venture (JV) with China-
based Shandong Ruyi Science and Technology Group Co. The JV will leverage RIL's
existing textile business and distribution network in India and Ruyi's state-of-the-art
technology and its global reach.


21

 Giving Indian sarees a ‘green’ touch, Dupont has joined hands with RIL and
Vipul Sarees for use of its renewable fibre product Sorona to make an
‘environment-friendly’ version of this ethnic ladies wear.

 Snapdeal has partnered with India Post to jointly work on bringing thousands of
weavers and artisans from Varanasi through its website. “This is an endeavour by


Snapdeal and India Post to empower local artisans, small and medium
entrepreneurs to sustain their livelihood by providing a platform to popularise their
indigenous products,” said Mr Kunal Bahl, CEO and Co-Founder, Snapdeal.

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4. About the Company

Raymond group was incorporated in the year 1925, with the market share of over 60% in
worsted suiting and fabrics in the [Link] Singhania is the Chairman of the Raymond
group. The company has following divisions:

 Textile

 Engineering

 Aviation

4.1 Textile:

Raymond is pioneer brand in the textile all over the world. With the capacity of 36 Million
wool 38 million meters in wool & wool-blended fabrics, Raymond commands over 60%
market share in worsted suiting in India and ranks amongst the first three fully integrated
manufacturers of worsted suiting in the world. We are perhaps the only company in the world
to have a diverse product range of nearly 20,000 design and colours of suiting fabric to suit
every age, occasion and style. We export our products to over 55 countries including USA,
Canada, Europe, Japan and the Middle East.

4.2 Engineering:

The engineering industry is growing at an exponential rate and Raymond is all set to keep
growing with it.

Recognised as a leader in the engineering files segment in India, we are also the largest
producer of files in the world. The group has three engineering divisions, JK Files (India)
Ltd., J.K. Talbot Ltd. to cater to national and international markets and a controlling
interest in Ring Plus Aqua Ltd engaged in the manufacture of auto components.
23
4.3 Aviation:

Raymond Ltd. is one of the first Corporate House in India to launch Air Charter Services
in India in 1996 and since then it has been always a way ahead for Raymond Aviation.

4.4 Our Reach in Textile sector:

The group owns apparel brands like Raymond, Raymond Premium Apparel, Park Avenue,
and Park Avenue WomanColorPlus & Parx. All the brands are retailed through 'The
Raymond Shop' (TRS), with a network of over 700 retail shops spread across India and
overseas, in over 200 cities.

The Raymond shop gives you a complete wardrobe solution with the blend of Raymond
ready-to-wear, Made to measure, Raymond Apparel (Park Avenue, Colour plus, Parx
and Next look).

The Raymond Shop network started with a small corner shop in Ballard Estate, Mumbai
around five decades ago. It has grown largely with a dedicated team making it the largest retail
store in the country having over 700 stores in prime locations, in over 200 cities in India.

Our overseas network spans 39 stores in 15 plus cities across the Middle East, Saudi Arabia,
Sri Lanka and Bangladesh.

The Raymond Shop retail chain occupies a space of more than 1.8 million square feet built-
up area.

Our wide reach all over the country across big cities and smaller towns allows us to reach a
wide spectrum of consumers. We have now extended our reach with a presence in some of the
leading Malls with new retail formats.

Our Presence is in exclusive brand outlet with Raymond shop, Parx, Park Avenue and Colour
plus, also we are present in large format stores like Pantaloons, Shopper stop and Lifestyle

24
List of Brands:

The Raymond Shop is a premium retail store

offering complete wardrobe solutions for
men, which includes top-of-the-line brands -
Raymond, Park Avenue, Parx and ColourPlus,
Next look.

Nextlook:
Economic Segment

Park Avenue: Park Avenue has launched as a premium lifestyle brand. It embodies the
latest international design which will personify an individual style statement. Our target
segment is to make formal clothing a trend in corporates, Business Gathering and Family
Functions.

Color Plus : Colour plus is brand which portray a full character of an individual by a
colouring experience. We have pioneered the techniques like Golf Ball Wash, Come Dyed
Casuals and Thermo-fused buttoning to name a few. These innovations have taken our
collection to a whole new level, making it synonymous with the words “Luxury & Style”

Parx: Get a cool trendy makeover for that ‘chilled out’ out of office look!
Parx reflects the persona of the energetic 22-30 year old who is aggressive, outgoing, and
dynamic and lives his life to the fullest. Parx reflects the pulse of the new generation which
looks at clothing as a reflection of their attitude and vibrancy.

25
5. Literature review

Franchising plays a prominent role in business life today. This form of entrepreneurship is
increasingly being adopted in a variety of sectors, especially by retailing and service
companies such as McDonald’s, Holiday Inn, Body Shop and Benetton. According to the
Deontological European Code of Honour (2004). Franchising is a win-win situation. The key
benefits of expanding a venture via a network of franchised units are low capital
expenditure, personal commitment and motivation and reduced daily involvement (Maitland,
2007). Franchising is often described as a powerful economic engine which has played an
important role in business growth and expansion for nearly half a century. The franchise
business system is a fast developing segment and one of the most adopted growth strategy
particularly in the retail sector (Kwong, 2001; Roh and Yoon, 2009). Franchising means that
a franchisor sells the rights to use an established brand name and business model to a
franchisee that is legally independent; in exchange the franchisor receives a share of the
profits. By applying a complete and well tested business concept, the franchisee thereby
minimizes the risks associated with opening a business (Roh and Yoon, 2009). . According
to Kwong (2001), franchisor and franchisee strive to maximize their own profit, therefore,
the relationship between these two parties is different from a employer-employee perspective
because there is less necessity for a franchisor to monitor the performance of the franchisee
since the franchisee makes considerable investments in his or her own outlet (Combs and
Ketchen, 2003).

After the company has grown from the inside and desires to grow even larger, the
company may reach for other markets and seek expansion prospects on other areas.
External growth strategies are based on developing relationship with third parties, this can
be done for example through mergers, acquisitions, strategic alliances, joint ventures,
licensing, and franchising (Barringer, et al. 2010, 489).

26
5.1 Background of the study:

With the fierce competition in the market in both Textile and Readymade segment it is
important to understand how we cater to the fresh markets. The company has identified the
need and designed the format with the proper study of different aspects of Demand and
supply.

The title “Understand and Analyse the expansion of Raymond in tier-4, tier-5” gives you
a complete idea about how we are expanding our new market through Mini Raymond shop in
the new markets.

Thus the project includes complete business expansion of MINI-TRS from the scratch level
to its Commencement. There is a certain structure which we follow by finding the suitable
franchisee and analysing and understanding the day to day activities should be performed by
the store.

Core Objectives behind the study:

1) To identify or find the potential dealers from the west region.

While going into markets, we are able to collect a complete study of the cliental
existing and future businesses.

2) Understand and analyze the expansion for Raymond in small towns.

To find the suitable location by understanding the market trend and price- offerings
of the prescribed market.
3) To suggest new market portfolio.

As most of the client want to open store in the existing towns, it becomes crucial to
suggest and teach them about the idea about the new markets. If you can educate your
client about this concept properly have of the work will done

27
 4) To expand the FOFO model in the class-4, class-5 cities.

The model of Franchise gives the entrepreneur to become billionaire in quick

time with higher returns, as they get a brand value with the Raymond exclusive
façade board.

5) To identify the gap between dealer and company and accordingly suggest
some Recommdations.

While going into the market, we had talks with the 100’s of retailers and got to
know, where exactly the gap lies in the company.

6) To convert existing MBO’s into Mini-TRS.

Converting existing MBO’S into EBO of complete Raymond is the task we need
to perform while going into the fresh market.

5.2 Process oriented Approach:

We generally follow a systematic and organised process for expanding into the new markets.

This is followed by the action plan with the certain criterion fulfilment.

Action Plan:

The action plan is defined as a how systematically you are approaching to the process
oriented approach. It helps to clarify what resources to be procured to reach the goal, with
the proper timeline.

Following are the systematic approach we follow:

Criteria-1- Generation of leads from prospective towns:

1) Paper Advertisement
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 2) Pitching Existing Franchisees

3) Visiting Existing MBO

4) Agent Meeting

Criteria-2- Information Gathering

1) Cliental Profiling

2) Cliental proposed location

3) Need and wants of the Client

Criteria-3- Demographic analysis

1) Population

2) Disposable income

3) Literacy rate

4) Male Vs Female count

Criteria-4- Identifying the Potential Client

1) Existing Retailers/ Eagerness to do retail

2) Knowledge about basics of retail

3) Individual involvement in the business

4) Ambition and willingness to grow business at another level.

29
Criteria-5- Market assessment for project viability

1) Assessing the client location

2) Check the various requirements fulfilment

3) Existing retailers business

4) Banking and education facilities.

Criteria-6- Educate and convince the client for project fulfilment

1) Meeting with the client

2) Make him understand how we work.

3) To get a mutual consent on requirement.

4) Investment Details

5) Discuss Return on Investment

Criteria-7- Documentation and legal formalities

1) Proposal Form

2) Separate documentation for Partnership, Proprietorship or Private ltd Company

3) Refundable Cheque of 1 lac Rupees

30
Criteria-8- Documentation done by company side

1) P and L stocking

2) Assessment form

3) PPT of the location visited

Criteria-9- Project Initiation

1) LOI will be raised and shared with the franchisee

2) BOQ will be released

3) Drawings and interior layout

Criteria-10- Day to Day work assessment:

1) Construction of the store

2) Advertisement Budget

3) Product training to employees

4) Visual Merchandising

Criteria-11- Store Opening

1) Ensure everything on its place

2) Ensure store marketed properly

3) Daily sales achievement

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 4) Ensure sales staff should be well groomed

5) Customer delight

Detailed Description:

Criteria-1

The initial step is to generate leads from different sources. This can be done thorough
advertisements in local newspapers. Person can enrol themselves on websites through their
basic details like:

 Name

 Phone Number

 Prospective town

 Existing business

 Area of the shop floor

We also pitch the existing MBO’S who are already dealing our brand. This helps us to ensure
that business is in the right hand, because he knows the basic nitty-gritty of the retail store.

Criteria-2

The information gathering is again crucial step because it reduces a lot of time to take follow-
ups. If relevant things taken at the initial level are perfect, the work become easy and hassle
free.

Some relevant information taken by us:

32
  It includes each and every detail of the client about how he works, where he
works and what is the expectation for him from the business

 We try to get all the details of the location at the initial level, as it helps to initiate
the project easily if client is showing a positive sign.

 To understand what he wants and set the expectation accordingly. It helps us
to remove the barrier of false information circulated.

Criteria-3
Study the demographics at the initial phase will give relevant information to forward. Some
of the information what we take:
Population:

Tier 1 Cities : >50 Lacs of population

Tier 2 Cities: 20-50 Lacs of population

Tier 3 Cities: 5-20 Lacs of Population

Tier 4 Cities: 2-5 Lacs of population Target Towns

Tier 5 Cities: 0-2 Lacs of population

33
Disposable Income:

We try to identify the disposable income of the customer in the prospective town. This gives
an idea about their spending’s and savings, which will be useful information for the business
specially clothing.

Literacy rate:

Generally it doesn’t play that vital role because now a days even an illiterate person is well
informed about brand recognition. But still we somehow consider this information as a
useful source to make strategy.

Male VS Female Count:

Every company knows their target segment, as we are premium in fabric and apparel
category for Men’s, It is logical to get percentage wise bifurcation between male and
female.

Criteria-4

Every business is a long term goal for the company and the franchisee. As company
brand is associated with the client, it is important to choose franchisee very wisely and
this can be done only with the proper evaluation

 If a person wants to set up a business, he generally follows a thought process that

how he make all things right for the business. So identifying those persons is the
task for us to fulfil

 The person should have a basic knowledge about retail. So that helps both the
parties to set up new business properly.

 His ambition and willingness is also considered as a very important aspect.

34
 Critera-5

In retail we generally follow a thumb rule for any exclusive outlet i.e. Location-location
and only location. So it is crucial for us to understand and study the location properly by
visiting the existing retailers and get relevant information from them, which will help us
to set up the store. We generally follow a certain specifications for the store fulfilment

Site requirements:

Store Specifications Minimum required Ideal

Height 8 ft. 1o ft.

Depth 35 ft. 40 ft.

Frontage 16 ft. 20 ft.

Total Area 600 sq. ft. 800 sq. ft.

 We also see the existing retailers business by visiting their stores. So that, we will
get an idea about sales expectations.

 To see the presence of industrialised banks and the finance facilities in that area.

Criteria-6:

Convincing a client on project viability is the task we need to perform on the market visit.
The client wants to get every relevant information, which will ensure there business to
run proper.

 To educate them about the reason behind this new concept of Mini-TRS



35

 To be very transparent and disclose every single information which is relevant for the
Franchisee.

 It is important to discuss the ROI from the business.

Investment: Optimised for higher effectiveness

Criteria-7
Documentation then collected by the client for the further initiation of the store.
Following are the documents which are taken in case of proprietorship/Partnership firm.

 Proposal form:

It contains about all the relevant information about the franchisee and site proposed. It
is duly attached with the authorised signatory.
36


 Pan Card Details

 Proprietorship letter/Partnership deed

 Shop act Licence

 Ownership papers/Rent agreement

 Bank reference letter:

Bank clean chit is required for the initiation

 Advocate letter:

The client need to attach a advocate letter with all the details of the shop on his letter
head, That shows that we are okay to open a Raymond shop in the town

 Photograph of the site from different angle

 Floor plans:

Detailed AutoCAD drawing provided by the franchisee to get the idea of how we can
design that store in a systematic manner.

 Security Deposit:

Security deposit of Rs 1 lac is collected from the client for finalising of dea

37
Criteria-8
After vising the site and collecting documents from the franchisee, some documentation
is done from our side as well like
 P & L:
Profit and loss account needs to be prepared with the proper viability and assumption. This
helps to compare the actual and expected revenue from the store.

 Stocking:
A right stocking is made according to the carpet area of the store, which will help us to
ensure right amount if stock to be supplied at the store.

 PPT:
A presentation need to be made which will be shown to the higher authorities to get the
approval of the location proposed. It has all the relevant information of the market visited.

Criteria-9

After all these documentations, the file is forwarded to the admin team for check. After that
it is send to the Retail head for approval, Than LOI have been raised.

 After that further follow-ups should be taken with the franchisee for the
project initiation.

 BOQ will be released and vendor list will shared with the franchise

 Ensure everything go on a smooth space and store will open with in next 60 days.

38
Criteria-10

After sharing all the details when interior will start, we have to ensure day to day assessment.
Advertisement strategies have been made by co-ordinating with the marketing team. Product
training is given accordingly to the list of executive and sales employees in the store

Criteria-11

After all these processes the store will be ready to open

 Members from the core retail team will be there with the franchise for 2-3 days for
store initiation.

 Ensure everyone is well informed and they portray the values determined by
the company.

 To check daily sales achievement and compare it with the expected figure.

 To ensure will be marketed properly in the market.

39
In pursuit stages (Maharashtra, Chhattisgarh and Madhya Pradesh)

I have taken business trips in Upper Maharashtra, Chhattisgarh as well as Madhya Pradesh
Region. My PJP will is described below. In all this business trips we have to cover all
potential towns to generate leads as well as follow up.

Upper Maharashtra : In Upper Maharashtra (Vidharbha region) is the most prominent place
as current TRS is giving huge profits so I have different places in vidarbha region which is
described below as per there population according to 2011 survey.

Towns Population (2011 Survey) Pincode

Buldhana 1 Lakh 443001
Malkapur 40000 - 50000 443101

Kham Gaon 140000 444312

DaryaPur 70000 444803

Katol 50000 - 70000 441302

Warud 2 – 3 Lakh 443301
Morshi 2 Lakh 444905
Chandrapur 4 – 5 lakh 442401,

40
 Lead Generated
Proposal Form Generated
Buldhana Business Trip
My first visit in Buldhana is with the retailor who is already doing business with Raymond as
well as other fabric brands after meeting with two of them I have visited to one of leading
retailor who have interested in doing business with us. So I have gave them a whole day and
also met with different family members of that business party, they have said that they will
tell us surely by 4-5 days but write now they are ignoring our calls also.
Ravi Jain – Happy homes
9421771859

Malkapur Business Trip

In Malkapur I have visited different
clients in which one of them is almost
ready but due to issues like
infrastructure cost as well as slow of
existing business they needed some
time.
Sarvesh mannalal
9823400015

Kham Gaon Business Trip

In Kham Gaon I am still getting enquiries from different
clients, one of the big4 offered me 2nd and 3rd floor but
due to company policy we cannot take that offer.
Omrathi
9404725365

Nandlal
9172127312

41
Daryapur
In Daryapur, as market is very small as well as retail outlets are also very few. I have meet
with 3 clients in which 2 of them take interest as both of them have said me that they will tell
me after few days only.
Chhattisgarh: In Chhattisgarh mostly potential towns are covered but if, we see tier 4 and
tier 5 town market is less as well as client willingness to invest money. I have travelled in lots
of market or towns, which is describe below:
Lead Generated
Proposal Form Generated

Towns Population (2011 Survey) Pincode

Rajnadgaon 2-2.5Lakh 491441

Dhamtari 8 Lakh 493663

Baloda Bazaar 2 Lakh 493526

Manendragarh 50-70 K 497555

Raipur 14 Lakh 492001

42
Madhya Pradesh: In Madhya Pradesh Mini TRS is booming all tier 4 as well as tier 5 towns
have covered current Mini TRS are have high sales and also break the record of 1 cr. Like
Rewa Mini TRS which is started eight months ago and giving high sales. In M.P. I have
convert a Mini TRS in Gadasarai (Dindori) I have received a cheque of Rs1 lakh and verified
all documents as well as prepare Proposal Form.

Towns Population (2011 Survey) Pincode

Balaghat 2.5 Lakh 481331
Dindori ( Gada Sarai ) 40000 - 50000 481880

Maihar 1 Lakh 481661

Sidhi 70000 486881

Seoni 2 Lakh 480771

Lead Generated
Proposal Form Generated by me.

Within 25 KM of near Dindori, Gadasarai is a place, which have more connectivity, and it is
in the ring road. I have search the client as well as confirm the deal. As Gadasarai is
connected to Amarkantak, Pandatarai, Shahdol, Dindori which covered 16 villages as well as
two towns it is a more beneficial deal. My client current business is on trading rice as well as
pulses in big amount as well as he is the distributor of Nirma as well as Venus FMCG
products. I have negotiated in all terms respective to area of store, Contribution of ready
mates as well as Fabrics.

I have visited different towns as well as well covered different markets to generate leads as
well as to convert them which described above. I have covered Balaghat, Siddhi, Seoni,
Gadasarai and Maihar in which I have meet different clients which are doing business in
MBO as well as other business.

43
The leads are mainly from Indore, Bhopal and Gwalior and from the outskirts like
Katni (District place), Rewa (District place), and Khandwa (District place).

Gujrati’s are termed as the king in the retail sector, they have multiple businesses and there
way of working fare much different from an existing retailer. We got almost same amount of
enquiries from Gujrat as well.

Some of the potential outskirt town is Gota, Vesu and Modassa.

As I have handled the Maharashtra region, I have done a district wise segregation in which
we are not present at all. This process is done with taking reference from the talks and
market visited.

44
Outcomes of the Market visited (Maharashtra, Madhya Pradesh):
By Visiting that market we get a reality check that how retail works. The speciality of those
markets is:

Highly farmer oriented market, the target customers are farmer only and they have a huge
ticket size while buying fabric and readymade.

Family shopper is there, impulse buying is very less in these markets; only intended
customers come and shop. So Raymond as a male dominated segment should have any
complimentary store nearby to support their Raymond shop

Example: If a Raymond shop is located nearby a Saree, kids wear and Hosiery shop it will
help the store to increase the sales as customers entering into the store want all of these things
at only one roof, so they can go to nearby store to shop other things as well.

While going into the market, it is important to understand customer buying behaviour. So
when we go the retail shops and do mystery shopping , we get a proper idea about how they
shop, what type of merchandise they shop- is it readymade? Or Fabric?

What is there UPT? Basket size? - All those aspects ae considered while market visit.

Highly volatile market, there is lack of varieties for the customers, so they do not get much
option to shop while buying.

The market is on its peak after 2-3 month of rainfall because farmer gets the value of their
crops and they buy clothes in bulk.
These markets are the future for the retail to tap because Tier-1, tier-2 are already saturated with
lot of branded outlets. So for the newcomer who want to run this type of business, it is the right
time and right opportunity to grab a make full use of it.

People in the market do not bargain much, but there price point is moderate as compare to the
tier-1, tier-2 cities.


45
They generally buy fabric starting from price 200 Rs price range to Rs 2000-2500 per metre.

Good thing about fabric in these markets is target customers are farmers and they want
comfort more than anything else. And the amount of comfort they get in stitched cloth is
unmatchable as compared to readymade cloth.

In some market readymade garment have an upper hand as compared to the fabric segment.
So re-launching of next look will help to cater small market with a good and affordable
range.

46
Clients that I have visited of Maharashtra Region and in pursuit stages

CITY Shop Name/ Owner name Remarks

Katol Pannalal jamandas
Guta Collection/Nikhil Gupta
Nityam Collection
Laxmi Fashion
Sumeet Chandak

Warud Umiya Sales

Krushna Collection/ Nitin Gurjar
Mohanlal

Morshi Mantri Bandhu/ Rajendra Mantri

sundram saree centre
Aasra Textiles
Dilip Salwani

Daryapur Mateen Ghaniwala Intrested client he have went to Chandur Bazar to know about sales of current stores
(Small Market) Tambekar Rana
Ashphaak Mahre

Buldhana Sanjay Kothari

Ravi Jain Buldhana
Sourabh Nabira

Malkapur Manoj Pariyani have different locations

Vijay Pariyani
Sarvesh Mannalal Very intrested client, ready to invest money but due to slow of current business he cancelled the de

Kham Gaon Nandlal Intrested client, he have new place which is going to be ready with in 5 months.
Om Rathi Intrested client enquired me for 3-4 times but have location problems, offered me 1 and 2 floor
Rohan Choudhary Great business man, he have one place but other brands have offered him more benefits
Amol Ghawalkar
R. K. Sarees 

47
Clients that I have visited in Chhattisgarh region

CITY Shop Name/ Owner name Remarks

Manendragarh Anil Bhojwani
Manish Agarwal
Tulsi Manendragrh Offered me Undrground place
Sumeet Allabadi
Mukesh Agrawal Intrested

Dhamtari Dilip Chajed

Bhojraj Mandhan
Ankit Jasuja

Rajnadgaon Rajendra Cloth Center Very Intrested as well as have dirrect contact with dealer
Govardhan Ganjre

Baloda Bazar Abhishek Sahu

Anupam Bazar/ Yuvraj Jain
Shivam Suiting

Raipur L.d. Choudhary

Harjot singh Sailini
Sumit Menghani

48
CLIENT NAME CITY PLAN Phase-1 Phase-2

Shreyas Vaijapur Discussed Site visit done. LOI

Kasliwal Documents received Generated.
Work will
start soon.

Prasanna Hingoli Discussed Site Visit done. LOI

Vadera Documents received Generated.
Client want
to start work
as soon as
possible

Mallosaraye Mira road Thane Discussed Site visit done. LOI

Documents received Generated.
Work has
started

Arun Patange Parli Vaijnath Discussed Site visit done. LOI

Documents received Generated.
Vacant plot
Start work by

20th July

Karan Kodre Manjhiri Discussed Site Visit Done. LOI Pending.

Documents received Vacant plot
Will start
construction
after
Generation of
LOI

Trivandam Patil Talegaon Discussed Site Visit done. Applied for

49
V Partial Documents rent
received. agreement
and Pan card.
Will receive
the remaining
documents
soon

Shubh sanket Paithan Discussed Site Finalised. LOI pending.

Documents received Will start
work
immediately
after
generation of
LOI

In the initial phase (April to July), we got around 330 enquiries from the respective west
region. In our mapping it includes Maharashtra, Gujrat and Madhya Pradesh. As we are
penetrating only in the Non-TRS town, it is important for us to convince the franchisee to go
into any city nearby where we are not present.

We also try to get all the information regarding those enquiries through calling and get
a relevant data that how market has evolve in the clothing segment

In this data it is clearly stated that 77% of the enquiries are from the existing towns and rest
33% from the Non-TRS. We ensure that all the markets are tapped and franchise will also get
benefit out of that market.

50
 Future Prospective

To penetrate Mini-TRS in small and emerging markets:

It is important to understand market thoroughly before opening a store there. As target for us
for the next 2 year is 300+ stores, it is viable to scrutinize 300+ towns from 800+ potential
ones.

To convince TRS enquiries to go and open store in Non-TRS Markets:

Most of the business person does not want to go out from their comfort level. They have their
own location in the prospective (TRS) town, so they do not want to go outside.

It is now business development team task to convince them and communicate the model
[Link] that he re-thinks on the plan. Converting a Existing town lead into Non-existing
one is task of proper execution of ideas.

To increase market reach by acquiring set of potential customers, this can be done by
properly utilising the Loyalty Programme.

Raymond reward is the software we use for the Loyalty programme. Now a day’s people
have so many options that they forgot to take the benefit out of that programme. So we can
acquire those customers by pitching loyalty programme benefits, which will help them to
educate the customers about the extra scheme benefits they enjoy.

To study the Demographics and Trend follow in the Naïve market and find potential
leads there:

Not all markets have potential to support a Mini-TRS model, So it is important to

study all the factors and then pitching retailers the same to the clients
51
Recommendations and Feedbacks received from the market

We can decrease the size of Packed Fabrics as it can decrease the loss of shopkeepers.

I have went to different shops as well as meet different clients in this I get feedback like
Raymond should decrease the capacity in meters of cloth as now it is coming in 16 meters
and average size of shirting is 2.2 meters which can resulted to loss of 800 meters. I would
recommended 14 meter packed Fabric which can decrease the loss.

We can smoothen the process by proper co-ordination between Textile and the
operations Team:

We have operations team to work on the store opening and commencement and daily
operations, similarly Textile team handles the stock related thing all over Raymond shop,
LFS and MBO’S. So if both the teams are aligned and work on the same platform it will help
the franchisee to gain confidence and he/she will work hard to work properly.


There should be better communication between dealer and the company, so that dealer
will not feel cheated.

Better communication between the dealer and franchisee helps the overall business to
develop. As sustainable development can only be achieved by good coordination between
company and the dealers.

52
References

[Link]
presentation.

[Link]

[Link]

[Link]

[Link]

[Link]
relationship

[Link]

[Link]

[Link]

[Link]

53