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CEO Director
Rosebys Interior India Ltd. Indian Institute of Finance
C-27, Sector -26 Sector- 83, Noida
Noida UP
 



ï. Chapter one of the study contains, brief of the project and
importance of the subject in the present scenario. It also
contains the company profile.
2. Chapter two deals with review of literature on Fund raising
strategy.
3. Chapter three deals with objective of the study and Research
methodologies.
4. Chapter four deals with analysis.
5. Chapter five deals with interpretation and empirical findings of
the Analytical part of the study.
6. Chapter six deals with summary of major findings, discussions
of results, suggestions and limitation of the study.
 „



 Rosebys Interiors India Limited (RIIL) is a company set up by the GHCL
Group in order to expand its retail initiatives in India. It will primarily be
involved in the business of Home Furnishing and Home Adornment
Retailing. Backed by the strength of the GHCL Group, RIIL plans to set up
a minimum of 700 retail stores in India over the next five years. Most of the
stores will be franchisees with a few flagship stores being wholly company
owned.
 The stores will be operated mainly under the franchisee model with a few
Company owned stores mainly operating as flagship entities. Store sizes
are expected to range from 600sq.ft. to ï,200sq.ft. depending on store
location. Company plans to have ï,000±ï,200sq.ft. stores in Grade µA¶
cities, 800±ï,000sq.ft. stores in Grade µB¶ cities, and 600±800sq.ft. stores in
Grade µC¶ cities.
 Cost of Project is Rs. 8000 crore.
 Means of Finance are as follows:
Equity: Rs.5600 crore
Debt: Rs.2400 crore
 „


„
 Rosebys Interiors India is a Home Decor and Lifestyle
Products Company.
 Rosebys Interiors India, a ï00% subsidiary of GHCL, has
entered into a partnership with National Textile Corporation
(NTC) for retailing home furnishing products.
 Through the public-private partnership, Rosebys at NTC has
tried to tap the potential in tier I and II cities. The store has
offered a wide variety of Rosebys products including bed
sheets, bed covers and duvet. The store will also stock
products like vases, frames, cushions, lamps and candles.
 Soha Ali Khan is the brand ambassador of this company.
 Objective
 The prime objective of my study is to see whether its beneficial for
Rosebys Interior India Ltd. to invest such a large amount of Rs. 8000 crores
in these stores or not.

 The Sub objective of my project are:

ï. Market Assessment: This includes analysis of competitors and other factors

which might affect the demand of the retail chain stores.
2. Brief analysis of all the risks associated with the project through WACC.




As per the requirement of course I have prepared this report.
 To study the competitive analysis-porter five forces models.
 To analyze the balance sheet and income statement in order to
know the position of the companies.
 To do the fund raising techniques.
 „


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 RESEARCH METHODOLOGY
 
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 Primary Source: No Primary data source was used.

 Secondary Source: Secondary data such as data collected from
the company and through Internet were mainly used. Some
information has been collected from the office records.


4
 
 5*

 WACC
 Financing Mix option
 Loan Amortization
 Merger and acquisition
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WACC- 6.44%

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Porters Five Force Model
PEST Analysis
 CONCLUSION
ï. DCF Valuation technique shows that WACC for the Project is positive and
hence the company should invest in this project.
2. Financing mix option shows that the company has taken loans from
different domestic and UK based banks, thus using its presence in both the
countries to get cheaper interest rate.
3. Through the process of loan amortization we find that the organization will
payback the amount of Rs.5600 crores within a span of 5 years.
4. The acquisition of Rosbys by GHCL was found to be a feasible and profit
making investment as the GHCL gives the latter its loans on an interest rate
of 6%.
5. Market Assessment shows that there is a huge gap between the demand and
supply of retail chain stores globally and also in the domestic market.
Hence, the stores will be able to generate huge sales in both domestic and
international market.
Hence, it can be concluded that the project is financially sound and that the
investment of such a huge sum would bring more profits to the
organization.
 ΄


 The biggest problem that I faced during this research
study was that of data collection.
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l Prof. J.D. Agarwal, Chairman, Indian Institute
Of Finance .
l Mr. Aloke Banejee, CEO of Rosebys Interior
India Ltd.
l Mrs. Anjavi Panday (Finance Dept.) of
Rosebys Interior India Ltd.
l Prof. Aman Agarwal, Director, Indian Institute
of Finance
l Indian Institute Of Finance.