advertisement

Rajesh Tiwari

40 %
60 %
advertisement
Information about Rajesh Tiwari
Education

Published on January 30, 2008

Author: Paolina

Source: authorstream.com

advertisement

Funding of Retail Ventures 22nd July 2006:  Funding of Retail Ventures 22nd July 2006 Rajesh K Tiwari Head, Credit Experience in Retail Space :  Experience in Retail Space Financing and Arrangement of loans to malls GVK Mall (Hyderabad) Recreation Park of Unitech Group Regency park DLF group. Bankers to pioneers in retail Industry Pantaloon Retail India Limited. Shoppers Stop Ltd. Piramyd Retail Limited Trinethra Super Retail Limited Subiksha Trading Service Limited Cravatex Limited In the process of acquiring an exciting range of clients Electronics, Food & Grocery, Leisure & entertainment,Convenient stores, Jewellery stores etc Complete refinancing of debt for Pantaloon Retail India To provide greater flexibility for Capex To facilitate growth Current exposure in retail space – Rs. 500 crore (approx) Business Model :  Business Model High reliance on supplier credit to finance business Large initial investments and Scale benefits Key success factors in the industry are Network Planning & Execution, IT Infrastructure & Technology Supply Chain Management Customer centricity Move towards Tier–II Cities Move towards Private labels From a Bank’s Perspective: KSFs :  From a Bank’s Perspective: KSFs Network Planning & Execution Capabilities Numbers and location of stores Addressable market with low competition Split between mature areas and new areas IT Infrastructure and Technology Robustness Reliability MIS Reporting of Shrinkage(a major expense) Stock Audit Supply Chain Management Back end Infrastructure supporting the front end Sourcing Strategy and capabilities Hygiene Quality assurance set up Contd. -- From a Bank’s Perspective: KSFs :  Contd. -- From a Bank’s Perspective: KSFs Customer Centricity Positioning Audience Offering Quality and Price range Profitability At what stage Split between mature areas and new areas Understanding of customer for specific centers Sources of Risks :  Sources of Risks Changing Consumer preferences Ability to forecast, anticipate and respond to changing customer preferences and fashion trends in time Higher Fixed Operating Costs Larger number of stores in search of scale benefits  Higher fixed operating costs Economic downturn  Significant drop in revenue  Difficulty in managing the cost. Inventory valuation Shrinkage Due to decay, obsolescence, employee theft, shoplifting, vendor fraud, administrative error etc. Inadequate provisioning May inflate the profitability figures in the interim. However, when identified, huge gap in actual inventory and published inventory may dent the TNW. Sources of Risks :  Sources of Risks Grey areas Revenue recognition and Inventory valuation During expansion phase need for higher working capital Traditional equations do not work Competition from Larger Players (Reliance etc) From Multi National Retail companies(after FDI is allowed in Retail) High Real estate cost Higher rentals Unique Financing Needs :  Unique Financing Needs Financing for Lease Deposits Capital Funding before break even Financing for expansion Financing for store interiors Higher working capital requirement during growth spurts Service Offerings :  Service Offerings Term Loans Loan for developing real estate for the store Loan for Furnitures and Fixtures Loan against securitisation of credit card receivables Working Capital Line of credits Working capital term loans Trade Financing Vendor financing (helping in extending t Rent payable financing (In collaboration with Rentworks, GE etc) Warehouse financing (e.g. Chinese imports etc) Discounting of credit card receivables Financing Mergers and Acquisitions Suggest a optimal and bankable capital structure for financing Financing overseas acquisitions. Service Offerings :  Service Offerings Advisory Services Providing financial solutions to retail companies Restructuring of balance sheet/ debt (e.g. Pantaloon Retail) Analyzing Cash flows and synchronized rephasing of loans. Structure optimal financing and expansion planning Help in private placements, IPO and Capital Market Activities Co Promotions Co branded cards Helping in running loyalty programs Equity Investment Small regional retail companies find it difficult to scale up their operations, despite attractive potential, due to high leverage. A small infusion of equity is often helpful at such situations It helps in reaching critical size of business It allows the retailer to raise additional equity capital at opportune time and at a price commensurate with the improved prospects of the company. Provider of comprehensive solutions Slide11:  Thank You

Add a comment

Related presentations

Related pages

Rajesh Tiwari | LinkedIn

Rajesh Tiwaris berufliches Profil anzeigen LinkedIn ist das weltweit größte berufliche Netzwerk, das Fach- und Führungskräften wie Rajesh Tiwari dabei ...
Read more

Rajesh Tiwari - YouTube

Sign in now to see your channels and recommendations! Sign in. Watch Queue Queue
Read more

Rajesh Tiwari | LinkedIn

View Rajesh Tiwari’s professional profile on LinkedIn. LinkedIn is the world's largest business network, helping professionals like Rajesh Tiwari ...
Read more

Rajesh Tiwari Profiles | Facebook

View the profiles of people named Rajesh Tiwari. Join Facebook to connect with Rajesh Tiwari and others you may know. Facebook gives people the power to...
Read more

Rajesh Tiwari | Facebook

Rajesh Tiwari is on Facebook. Join Facebook to connect with Rajesh Tiwari and others you may know. Facebook gives people the power to share and makes the...
Read more

Rajesh Tiwari - YouTube

A beautiful bhojpuri bhajan sung by pujy Rajan Jee Maharaj in Sri Ram Katha.
Read more

Rajesh Tiwari: Executive Profile & Biography - Bloomberg

Mr. Rajesh Tiwari founded Tikona Digital Networks Pvt. Ltd. in 2008 and served as its Joint Managing Director. Mr. Tiwari has a vast experience ...
Read more

Rajesh Tiwari | LinkedIn

Rajesh Tiwari. Business Development Manager at Tata AIG Life Insurance. Location Raipur, Chattisgarh, India Industry Insurance
Read more

Rajesh Tiwari (@tiwarirajesh) | Twitter

The latest Tweets from Rajesh Tiwari (@tiwarirajesh). #StreetFoodLover by Birth, #FinanceProfessional by Destiny, #SportsPerson at Heart & #MovieCritic by ...
Read more

Rajesh Tiwari | LinkedIn

Rajesh Tiwari. Director (Finance & Commercial) at Aviation Transport Services FZE. الموقع الجغرافي الإمارات العربية المتحدة
Read more