Lala Lajpatrai Institute of Management

A Presentation on

Entrepreneurial Spirit Jay Gupta

Managerial Economics

GROUP MEMBERS
Gurminder Singh Hitesh Bhatla Gurleen Kaur Sarabjeet Singh Karishma Jaisinghani Jatin Bhagnani Jasmit Singh Ashwin Rajendran Shilna Ajinkya

-08

-23 -97 -67 -63 -17 -31 -12 -104 -88

MR JAY GUPTA

MR. JAY GUPTA

The man behind the success of The Loot Store Started business in 1996 Retail franchisee stores for brands like Color Plus, Adidas, Nike, Weekender, Provogue etc.

Customer Satisfaction
All under one roof The Youngest First Generation Retail Entrepreneur

Foremost Pioneer of the fastest growing multi-branded

discount chain in India

ENTREPRENEURIAL SPIRIT

Dream of Starting His Own Company

Small Business Family Father As Role Model The Thought Of Service or Working Under Someone Never Occurred To Him

Brilliant Entrepreneurial Vision

Dr Grahams School (Darjeeling)

Graduated In 1996 B.Com (SIES College, Mumbai)

RECOGNIZING THE OPPORTUNITY

The size of the Indian Retail industry - 12,00,000 Crore (100%)
Organized Retail industry - Rs 55,000 Crore (4.6%) Not many organized retailers in the discounted store format. 40% of branded goods - sold under discounts Mr Gupta thus identified a huge gap in this sector

Brand Conscious
Great Value For Money Aspirational Lifestyle The Loot

INITIAL STAGE
A multi brand store in Vashi (240 square feet) by Investment of Rs 8 lakhs Funds - Personal investment and lower credit line offered by some brands. However, the venture was not a success. Customers wanted quality brands, but at the price they demanded. The next logical step was to open factory outlets for brands like Adidas, Color Plus and Provogue. With this, the sales did go up, but not substantially. Gupta took this as a learning experience. Finally The Loot came up in 2004.

PROBLEMS FACED AT THE INITIAL PHASE

Good Quality Products at Low Prices

No Air Conditioner
No Trial Rooms No assurance given for quality Shopping Experience not that great Theres always a shadow of doubt

Customers NOT SATISFIED

THE LOOT STORE

First The Loot Store at Marine Lines in Mumbai - 2004 Investment - Rs 5 crore Funds - Bank Loan and Personal Investment The USP was to offer 25% - 60% discounts, all round the year

The concept was well accepted and appreciated by all

The Loot Store

THE LOOT STORE

Branded Apparels at an affordable price Product Range includes Clothes, Shoes and Accessories For all the age groups The target audience is quite versatile They are actually targeting a mass audience Brand Ambassador - Gulshan Grover (his Bad Man Image) The LOOT currently operates more than 200 stores in cities like Ahmedabad, Ahmednagar, Akola, Amritsar, Aurangabad, Bangalore, Delhi, Jaipur, Mumbai, Pune, Silvassa, Solapur, Surat, etc

BRANDS ASSOCIATED WITH THE LOOT

THE KEY PEOPLE

Name Mr Jay Gupta Mrs Ruchita Gupta Mr RP Chabbra Designation Managing Director and CEO Director Customer Care Executive and Advisor

Mr Sunil Rathi
Mr Melwyn Rebeiro Mr Rahul Vohra Mr Satyanarayan G

Vice President (Finance)

Vice President (Operations) Vice President (Brands) Vice President (Private brands)

COMPOSITION
The Loot family consists of around 900 working staff Qualifications CAs and MBAs PGs Graduates UGs Numbers 20 55 100 790

CLIMBING UP THE LADDER

Particulars No. of employees No. of stores No. of customers walking in everyday Turnover Profits 2007 310 35 52 Rs 32 Crores Rs 2 Crores 2011 900 200 84 Rs 82 Crores Rs 7 Crores

ETHICAL DILEMMAS
Tackling Strict Rules and Regulations along with Red-tapism In retail one needs to get 20+ approvals of various laws including licenses, file various returns along with other legal matters Team management Financial management Infrastructure Management Handling Competition

Misconceptions about the concept of The Loot Store

Particularly convincing the consumers about the quality of the merchandise

ETHICAL DILEMMAS
In retail, there are five major costs involved: Manpower

Real Estate
Taxation Electricity

Advertising
His family and friends supported him and backed him with finances. However one more thing which was of major concern to Jay was to recover and repay the loans taken at the earliest. According to him it has been possible to meet these challenges by having a professional management at all levels.

IMMEDIATE FUTURE PLANS

Reach an annual growth rate of 100% (currently 80%) Mr Gupta plans to file for Rs 100 Crores IPO in due course He also wishes to launch a few more private brands The store is in process of coming up with the new concept of Online Shopping. He also intends to implement Global practices: The Loot has initiated this by up gradation of technology by collaborating with TCS who will develop customized ERP solution for the company. Jay expects The Loot store to be amongst the Top 3 retail companies in the next 5 years and have a plan to have over 1000 stores pan India by then.

AWARDS AND ACHIEVEMENTS

TATA NEN Hottest Start up award Youngest Retailer of the year Asian Retail Congress Star Youth achiever Award Global Youth Marketing Forum Star Entrepreneur Award International India Innovation Summit Pioneering efforts in retail concept creation Images fashion award Franchisee Awards 2009 CMO awards 2009

Global Award for Brand Excellence World Brand Congress

Indys young achievers award

AWARDS AND ACHIEVEMENTS

Young Retail Achiever Of The Year Award - The Reid & Taylor Awards For
Retail Excellence TiE Entrepreneurial Excellence Award 2009 - TiEcon Delhi 2009.

Young Entrepreneur Awards 15th National SME entrepreneurship Excellence

Awards Personally Mr Gupta regards the TATA NEN Hottest Start up award as the most prestigious award as yet. The Loot was nominated one amongst a series of 12 startups Small Ideas Big Changes by The Hindustan Times. As per The Franchising World (2008), The Loot is amongst the Top 50 business opportunities in India.

PRESS COVERAGE
Many News Channels and dailies have interviewed Mr. Jay Gupta in context of the success of the The Loot Store

Bibliography
http://www.thelootstores.com/ http://www.franchisebusiness.in/c/The-Loot http://www.bangalorebest.com/Archives/Loot_bang.asp http://www.indiaprwire.com/pressrelease/retail/200805279833.htm http://www.fibre2fashion.com/news/company-news/loot-store/ http://www.naaptol.com/online-store/WO-shopping-mall/The_Loot.html http://www.antya.com/detail/The-Loot-Stores/76629 http://www.indiaretailing.com/interview-loot.asp http://www.bharattextile.com/newsitems/1998055 http://www.jantareview.com/mumbai/biz_141901/The-Loot-Store http://bhagalpur.olx.in/the-loot-store-iid-20617764 http://www.business-standard.com/india/news/325037/ http://www.thehindubusinessline.com/2010/11/05/stories/20101105521.htm http://www.moneycontrol.com/news/jay-guptathe-robin-hood retail.html http://www.yourstory.in/entrepreneurs/participants/2310 http://tie.space4groups.org/speakers/jay-gupta http://www.etvyuvabharat.in/index.php?/Start-up-Stories-Col/jay-gupta-the-loot http://www.fibre2fashion.com/news/apparelnews/newsdetails.aspx?news_id http://entrepreneurialcatalyst.com/ http://retail.franchiseindia.com/interviews/established/Creating-co-dreamers

Thank You