VMART RETAIL LTD Customer Service Orientation and Retail

V-MART RETAIL LTD. Customer Service Orientation and Retail Creativity Click to edit Master title style Click to edit Master subtitle style Lalit Agarwal CMD V-Mart Retail Limited 4/13/20174/13/2017 1 1 1

V-MART RETAIL LTD. My Early Childhood • Born in Kolkata in 1970 • Joint family of more than 20 people living in less than 500 sq. ft. house Click to edit Master title style • 1975 father opened first retail store in Kolkata from the name of “Shreeman Shreemati”- seeds of Entrepreneurship sown! Click to edit Master subtitle style • 1979 family shifted to Cuttack, Orissa • 1989 moved to Mumbai for further education 4/13/20174/13/2017 2 2 2

V-MART RETAIL LTD. My Entrepreneurial Projects • Setting up a printing and packaging unit called seals products • Along with graduation, the first idea of starting a business with a capital of INR 5 lacs Click to edit Master title style • Printing business grew from INR 5 lacs to INR 2 crores turnover Click to edit Master subtitle style • 1999 moved to Kolkata to set up water theme park 4/13/20174/13/2017 3 3 3

V-MART RETAIL LTD. Our Retail Journey • 2000 - Innovating the first organized affordable value fashion store of India Click to edit Master title style • 2001 - Chain of multiple retail stores across different cities and set up of a apparel manufacturing unit • 2002 - Moved to Delhi for further expansion Click to edit Master subtitle style • 2003 - Launch of first V-Mart stores in Ahmedabad So far V-Mart has reached to 140 stores across 118 cities in 14 states and union territories, with total area of 11. 85 lacs sq. ft 4/13/20174/13/2017 4 4 4

V-MART RETAIL LTD. Indian Value Segment Customers • Target Market: Aspiring youth and young family living in small towns and cities • Target Income Group : INR 2 -10 lacs per annum • Location: Main market or main road of the city or district head quarter. Click to edit Master subtitle style • Population Density: City population > 1 lac and district population > 15 lakhs Click to edit Master title style 4/13/2017 5 5

V-MART RETAIL LTD. What does Creativity mean to us? Creativity is ‘the capability or act of conceiving something original or unusual’* Click to edit Master title style Apart from this, for us Creativity is primarily • Seeing and acting on opportunities Click to edit Master subtitle style • Focusing on results rather than processes * Paul Sloan, Innovation Excellence 4/13/2017 6 6

V-MART RETAIL LTD. Customer service orientation – Retail creativity model* Click to edit Master title style Click to edit Master subtitle style * ‘Social capital, customer service orientation and creativity in retail stores’ by Omar Merlo, Simon Bell, Bulent Menguc & Gregory Whitwell 4/13/2017 7 7

V-MART RETAIL LTD. Shared Vision Our Company Vision statement is ‘Create Value and Make Our Ecosystem Proud’ Create Valueto to the customer Click edit Master title style Tap the aspirations of customers in Tier II, III cities and towns by – • Catering to their fashion needs Click to growing edit Master subtitle style • Providing them a good buying experience • Keeping the costs low 4/13/2017 8 8

V-MART RETAIL LTD. Create Value Store Location • First mover advantage - Create organized markets • Keep the rentals low by entering into long term arrangements • Cluster approach: Tapping the power of networks to tackle big folks! Click to edit Master title style Create Value Merchandise Click to edit Master subtitle style • Tapping the untapped growth by keeping up with the fashion trends • Article Master, based on the customer segmentation – Economic, Regular, Popular, Premium, Exclusive & Gold • Our vendor community are our designers! 4/13/2017 9 9

V-MART RETAIL LTD. Create Value Distribution • Indigenously built distribution tool - Rule Engine, to cater to our business model • Cluster approach, to keep the distribution costs low • Tap the unorganized logistics market to keep costs low Click to edit Master title style Create Value Technology • Choosing the right partner in the ever-evolving technology Clickspace! to edit Master subtitle style • Intuitive so as to align with the resource base which is utilizing them – our ERP 4/13/2017 10 10

V-MART RETAIL LTD. Create Value • • Finance Seeded the business through family capital Leveraged by borrowing from banks Brought in Private Equity Went to the Market to tap Retail Investors Capital scarce as ever! Click to edit Master title style Open Communication • • Mass communication stores - subtitle Wooqer style Click to editwith Master Visibility of the enterprise hardware – Zabbix Internal ticketing system – RT Walking the talk, starting from the top management! 4/13/2017 11 11

V-MART RETAIL LTD. Trusting Culture Dysfunctions of a team & their repercussions* à Status and Ego à Low Standards à Ambiguity à Artificial Harmony à Invulnerability * The five dysfunctions of a team by Patrick Lencioni

V-MART RETAIL LTD. Creativity as an Organizational Capability • • • Empower people in decision making Keep the entrepreneurial spirit alive Do not hesitate to make experiments Once successful, take less time to implement HR is the only asset in our Balance Sheet! Click to edit Master title style Corporate Creativity Mantras Click to edit Master subtitle style • Always recognizing that the ‘Glass is only Half-Full’ • Build Psychological capital in the organization to build resilience 4/13/2017 “Price Less‟ Fashion” 13 13

V-MART RETAIL LTD. Creativity as a Personal Capability & Mantras Capabilities • Peer catch-ups and team catch-ups • Mind Map • Micro vs Macro Picture: Micro becoming the Macro! Click to edit Master title style Mantras Click • Do More with to Less edit Master • Think and act flexibly • Keep it Simple • Always Follow Your Heart! 4/13/2017 subtitle style 14 14

V-MART RETAIL LTD. Thank You