Name: Mayank Gupta Mobile No.: 09214454945 mayankgupta0200@gmail.

com E-mail ID:

Enrollment No.: 07 BS 2202

SUMMER INTERNSHIP PROGRAM PROJECT PROPOSAL Project Proposed: Analysis of the business model of retail stores of Alok Industries Ltd. Description of Project in brief: Alok Industries Ltd. (AIL) is an India-based textile manufacturing company and was established in 1986. Its business domain involves weaving, knitting, processing, home textiles and ready-made garments. Today, it is one of the largest private exporters of textiles in India. AIL not only performs the manufacturing and export business but now a days, it has diversified its operations in the field of retail and opens up retail outlets chain with the brand of H&A. AIL has about 20 retail outlets in Mumbai, Navi Mumbai, Gujarat and Bangalore. Still the company is restless and plans to develop a huge and sound apparel retail market in India. In the recent future, AIL will open new retail outlets in entire India. They are of the opinion that the number will reach about 75 by the year ended 2008 and for this purpose, they decided to approach banks to raise debt for the expansion. Our project comes in three phases as the first is to abstract the data for the current stores performance. It includes how the current stores are performing?, what are their sales, cost of goods, various expenses like rent, salaries, electricity bills, telephone bills, etc.? and then analyze the break-even sales for these stores, various expenses as a percentage of revenue/sales to understand it in better terms. The second stage is to analyze these data & the current business model and submit a detailed report to the bank. In this stage we need to analyze the data as to how be the current performance of the stores?, what is the trend of sales at various stores?, estimating the expected revenue and
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expenses to be presented to the bank for debt raising and the final stage is to compare the various parameters as analyzed with industry standards and making a SWOT analysis of the retail stores. Various parameters include the carpet area comparison, comparison of total expenses as a percentage of sales, comparison of revenue as a percentage of sales etc. Objective of the Project: To prepare a report for the retail stores of AIL for seeking debt from banks & financial institutions. To study the existing financial model of the retail stores of AIL and analyzes. To prepare a business plan for the retail stores of AIL. To make a SWOT analysis of AILs retail stores. Methodology: Collection of primary data on AILs retail stores expenses and revenues. Collection of secondary data on retail industry. Preparation of competitive analysis of AILs retail store H&A with its competitors like Pantaloons, Bombay Dying, Raymonds etc. Preparation of projected cash flows and fund flows from the expansion of the stores. Schedule: By 25th March: Report on the financials of retail stores. By 15th April: Report on the retail industry and other players and their competitive analysis. By 30th April: Analysis of the business model and SWOT analysis of H&A. By 15th May: Complete report on the business model of H&A.
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Limitations of the study: Lack of primary data due to improper way of recording. Forecasts like expected sales etc. may be inaccurate because the stores are less in number and also in their inception. Comparative analysis may not provide accurate results as the company is in its early stage whereas its competitors are well established. References: 1. Annual Report of Alok Industries for financial year 2006-07. 2. Retail Industry in India (http://www.iloveindia.com/economy-of-india/retail-

industry.html). 3. Crisil Research Report on Retailing.

4. Retail (http://www.india-now.org/industry/retail.aspx).

Faculty Guide Name: Prof. Sanjay Fuloria Company Guide Name: Mr. Husain Tayeb Khan

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