Business Options and Business Plan

of Haldwani Commercial Property

1.1 ABOUT HALDWANI

Overview

Haldwani is a city, which along its twin township of Kathgodam forms the Haldwani

Kathgodam municipal board in Nainital District in the Indian state of Uttarakand.

Haldwani Kathgodam Municipal Councuil was established on September. 21,1942.

Currently it is the second largest Municipal Council in the state of Uttarakhand after

Haridwar.

In 1816, after the British defeacted Gorkhas, Gardner was appointed the

Commissioner of Kumaon, Later George William Trail took over as Commissioner

and renamed Halduvani as Haldwani in 1834, as mart for hill people who visited the

Bhabgar {Himalayan foothills} region, during the cold season.

Haldwani is the last outpost of the plains. From here the road climbs, temperature

drops with every metre of altitude and winds through the hill towns of Uttarakhand to

the far reaches of the Himalayas. In the olden days, horse caravans stopped here to

get precious rations, provisions and rest before the grueling climb which awaited

them.

Haldwani has traditionally been the hub of trading and merchant activity as well as

an important centre for administration and governance in the state. The town buzzes

with activity and purpose from the wee hours of the morning. Transport of essential

goods to towns such as Nainital, Bhimtal, Saattal, Naukuchiyata, Bhowali and

Ramgarh is carried out as a daily activity.

Because of the increase in population, Haldwani is spreading through some sub-

urban areas like Kusumkhera, Uncha Pul, Bithoria, Damuadhunga, Bhotia Parao,

Kathgaria etc. The Gaula river that passes nearby is the major source of drinking

water for the area.

The area is also notable through university of agriculture and technology called GB

Pant University of Agriculture and Technology, Sidcul (Pantnagar), and a newly

made medical college Sushila Tiwari Memorial Hospital (Uttarakhand Forest Hospital

Trust - UFHT). Haldwani is home to the schools which provide an exceptionally high

standard of pre-college education, without the elitism and expenses associated with

the residential hill school of Uttarakhand.

Demographics of Haldwani:

As of 2001 India census, [9] Haldwani-Kathgodam had a population of 497,869 . Males constitute 53% of the population and females 47%. Haldwani-Kathgodam has an average literacy rate of 69%, higher than the national average of 59.5% : male literacy is 73%, and female literacy is 65%. (The current population is between 5-6 lakhs). Change as per Censes.

Culture & lifestyle :

Haldwani (Nainital) today houses people of nearly all religions who have

migrated and settled down in town in addition to the local Kumaonis and Garhwalis.

This confluence of cultures is as evident in the architecture of the town as in the

culture, occasions for celebration, attire and cuising.

Kuamoni and Hindi are the primary languages spoken in Haldwani. Urdu is prevalent

amongst the muslim community while Punjabi is spoken by the large Sikh community

settled in the town.

Economy:

Well connected with the Indo-Gangetic plain by road (to Nwe Delhi, Dehradun

and Lucknow) and rail (New Delhi, Lucknow and Agra), Haldwani is an important

commercial hub.

It is home to one of the largest vegetable, fruit and food grain markets in Northern

India i.e. Kumaon. Being the gateway to most of Kumaon and parts of Garhwal, it is

an important revenue center of Uttarakhand based on its advantageous as a base

depot for goods in transit to the hills.

The Guala River is exploited for a large quantity of boulders, sand and gravels every

year, and forms an important revenue source for both the government and local

business. It is the main feeder market to Kumaon Region and feeds up to

Pithoragarh.

Future Plans:

There are various developmental plans for the city owing to its importance in

the state of Uttarakhand. These include building of additional infrastructure like

stadium, flyover, bus terminus and industrial complexes etc. After the Dehradun –

Haridwar belt the next most important hub of Uttarakhand.

Evaluation:

The site location has high potential in terms of drawing footfalls due to high traffic

flow in the road, the approach road and exit roads from the location is clear and well

maintained. The fact that Site is located on the same road as key markets in

Haldwani such as Mangal Padav which is the core destination market cluster for

Haldwani population backed with almost 10-15 shopping centers carrying all the

leading branch names will provide adequate traffic inflow for the proposed mail/

commercial project.

Indicators of Traffic and Approach convenience for the site

Traffic Indicators Estimated Cross flow /

day*

2/4 Wheelers 45,000-48,000

3 Wheeler Traffic 7,000-8,000

Source: RDA dip stick in Haldwani time window 8 am to 11 pm

Convenience indicators for approach to the site

Key Attractions and Landmarks in Haldwani-Kathgodam

Brij Mohan Hospital: Biggest and first multi specialty hospital in entire Uttarkhand

Saurabh Comfort Inn: Very popular spa, hotel in Haldwani 4-5 Shopping Complexes such as Mohani Towr with all popular fashion,

apparel brands Vishal megamart –Only organized retail supermarket in Haldwani All modern hotels and restaurants Cafe Coffee Day attracting almost 200-250 customer footfalls per day

SIDCUL (State Infrastructure& Industrial Development Corporation of Uttrarkhad Ltd.)

SIDCUL, a Government of Uttarakhand Enterprise , was incorporated as a Limtied Company in the year 2002 with an authorized share capital of Rs. 50 Crores and Rs.20 Crores paid up capital through Govenment of Uttarakhand in order to promote Industrial development in the State, provide financial assistance in the shape of debt, equity, venture capital , develop infrastructure and assist private initiative in Industry and Infrastucture and implement, manage projects and provide specialized financial, consultancy and construction and all such other avtivites to promote industries and develop Industrial Infrastructure in the State of Uttarakhand directly or through Special Purpose Vehicles, Joint Ventures, assisted companies etc.Some Major Companies Established in SIDCUL areName and Address of the Company Hidustan Lever Ltd.

Location of the Company IIE –BHEL, HaridwarProducts Cosmetics and Toiletries

Face/Body Wash ProductsProject Cost (Approx) 1024.5 Million

Name and Address of the Company Mahindra &Mahindra Ltd.Location of the Company IIE-BHEL, HaridwarProducts 3Wheelers,

4WheelersProject Cost (Approx) 628.8 Million

Name and Address of the Company ITC LimitedLocation of the Company IIE-BHEL, HaridwarProducts Food and Personal Care

ProductsProject Cost (Approx) 1252.10 Million

Name and Address of the Company Britannia Industries Ltd.Location of the Company IIE-PantnagarProducts Biscuits and

other food productsProject Cost (Approx) 573.80 Million

Name and Address of the Company Dabur India Ltd.Location of the Country IIE-PantnagarProduct Health care,

personal care, Ayurvediccomestics products

Project Cost (Approx) 491.90 Million

Name and Address of the Company Cavinkara Pvt. Ltd.Location of the Country IIE-BHEL, HaridwarProducts Cosmetics

Shampoo/CreamsDeodorants

Project Cost (Approx) 260.10 Million

Name and Address of the Company Twenty First Century Printers Ltd.Location of the Company IIE-BHEL, HaridwarProducts Printed Packaging Materials

Cartons, BoxesShells and Labels

Project Cost (Approx) 250.60 Million

Name and Address of the Company Somany Foam LimitedLocation of the Company IIE-BHEL, HaridwarProducts Polyurethane Foam

MattressFT Foam Sheets

Project Cost (Approx) 257.60 Million

Name and Address of the Company Pollar Industries Ltd.Location of the Company IIE-BHEL, HaridwarProducts Electrical fans, water lifing pumps,

geysers, water purifiers and laminations

Project Cost (Approx) 214.60 Million

Name and Address of the Company Havell’s India Ltd.Location of the Country IIE-BHEL, HaridwarProducts Elictrical ProductsProject Cost (Approx) 170.30 Million

Name and Address of the Company Lakhani India Ltd. Location of the Company IIE-BHEL, HaridwarProducts Footwear and

PsrtsProject Cost (Approx) 159 Million

3.2 THE SUPERSTRUCTURE IN AND AROUND HALDWANI

Defining Catchment- Haldwani or Greater Haldwani

Looking at Haldwani’s location and the surrounding towns, the catchment can be seen in 2 ways- geoprahpically and functionally. Since most of Haldwani business, economy, industry and education rely upon a pocket that surrounds the exteriors of Haldwani in therms of Kathagodam for railways terminal. Rudrapur (SIDCUL) for industries and employment, Pantnagar for Airport and Universities, we feel that the actual addressable catchment should be befined as Haldwani+ Greater Haldwani.

The elements of Superstructure which would impact the proposed commercial property in and around Haldwani are :

Commercial activities around Haldwani Tourist spot in Haldwani City Tourist places arround Haldwani

Addressable Target Population

Total population of Haldwani as of Census 2001 is 2.8 lakhs, however over the last 4 years there has been a significant influx in population growth. Hence based on the current level of growth and the catchment definition mentioned above , the effective universe of population is around 5-6 lakhs. However, there is a need to categorze the population in order to derives the addressable potential target based . If floating population of Rudarpur, Nainial Bhimtal etc are added (as the creams form these areas shop at Haldwani) the addressable population will increase.

Amongst several ways of slicing the population to derive the target population, we have chosen 2 ways-Marco level demographic data and Primary Indicators of Target Population in & around Haldwani.

Approach 1: Based on Macro Level Demographic Data

Approach 2: Based on Primary Incicators

Haldwani has 32 premium/ private schools representing about 64,000 students representing almost 42,000 households. Assuming average household size of 4, it translates to a population of 1.68 Lakhs i.e. almost 40% of Haldwani and Surrounding cities.

Almost 60% of working class in Haldwani is employed in SIDCUL industrial area with higher corporate influence and higher salary levels. This translates to almost 24% of entries population.

Summarizing both the above approaches, Based on Macro Data: 35% and Based of Primary Indicators: 30%. Addressable target population in Haldwani will be approximately 30-32% of entire population i and around Haldwani.

Target Addressable Market:

Commercial activities around Haldwani

There has been an extremely high level of Industrial activity around Haldwani in the recent years because of arrival of over 400 corporation –India as well as multi-national corporations in the SIDCUL area near Pantnagar only<30 kms form Haldwani.

Key corporations in the SIDCUL area involves blue chip names such s Tata Motors, Britannia, etc

Almost 20-30% of working population in Haldwani has employment in the SIDCUL area which has increased the per capital income levels of Haldwani population over the years. However, due to lack of any destination markets and large cities the output linkage of this increased level of income does not reside in Haldwani.

Tourist spot in Haldwani City

Kali Chaur Kali Chaur is a temple dedicated to Maa Kali. Also a soft trek 2 km from main road, ideal spot for camping and picnicking. Kali Chaur is at a distance of 10 km from Haldwani in Golapar with scenic views.

Shitla Mandir Shitla Mandir is an temple dedicated to goddess Durga situated at Ranibagh (10 km from Haldwani). Also a soft trek 1 km from main road, and an ideal spot for camping and picnic.

Gaula Barrage Gaula Barrage is an ideal spot for camping, sightseeing and picnicking. The attractive tourist spot with scenic views is located on the Gaula River. This barrage was made for the purpose of irrigation and now this place is a tourist spot for families.

Hedakhan Ashram The scenic beauty of Hedadkhan Ashram and the calmness of this area has made it is popular must visit destination of Haldwani. It is situated a few kilmoters from Kathgodam on the banks of Gaula river. You can spend wole day here without getting bored as there are numerous artistically constructed temples and caves across the river.

Sanjay Van Sanjay Van is a part of Tanda Range Forest located in Pantnagar. It is a picturesque place situated at a distance of 23 Km from Haldwani

Asht Bujha Lakshmi Temple

Asht Bujha Lakshmi Temple is situated at Goraparow, a distance of 10 Km from Haldwani (Haldwani = Lalkuan Road)

Tourism places around Haldwani:

Sattal Hill Stations, Kayaking, Rappelling, Trekking, Mouzntain Biking, Lakes, Rafting, Boating, Camping

29 Km

Jeolikot Hill Stations, Trekking, Golf 41 Km Nainital Hill Stations, Trekking, Lakes, Gardens, Temples,

Museums, Honeymoon 35 Km

Naukuchiatal Hill Stations, Paragliding, Lakes 47 Km Ramgarh Hill Stations, Camping, Fishing, Mountain Biking,

Rock Climbing, Rappelling 55 Km

Corbett Wildlife, Fishing, Rafting, Rivers, Falls 77 Km Almora Hill Stations, Temples 90 Km Bhimtal Hill Stations, Trekking, Lakes, boating,

Honeymoon 28 Km

Ranikhet Hill Stations, Fishing, Golf, Dams, Temples, Museums

96 Km

3.3 THE INFRASTRUCTURE (CONNENCTIVITY ANALYSIS)

Connectivity:

The connectivity details of Haldwani are as below :

Roadways:

Haldwani is 368 kms from Delhi (via Moradabad, Rampur, Lalkuan). Haldwani/Kathgodam is connected to National Highway No. 87. Regular roadways buses run from Delhi daily (by Delhi Transport Corporation, KMOU Ltd, UP Roadways). Ideal place/Bus depot for Bus Services to Haldwani/Kumaon / Uttarakhand is at Anand Vihar Bus Terminal.

Beside this, luxury coaches are available from Delhi. Buses going to Nainital, Kathgodam, Almora, Bageshwar would also stop at Haldwani besides any exclusive bus service for Haldwani.

Railways:

Haldwani is Rail connected with the various parts of the country. Rail 365 kms from Delhi (via Ramnagar, Kaladhungi, Kashipur) Some 5 kms ahead of Haldwani is popular Rail Head, Kathgodam which has been a popular railway station since British Time. There are direct rail connections from Delhi, Amritsar, Rampur, Lucknow and Howrah.

Trains To Haldwani:

Train No./Name From To :: Via Departure Arrival at Haldwani

Days of run : M-T-W-T-F-S-S

2208/Kathgodam Garib Rath

Jammu Tawi

Kathgodam :: Ludhiana,Jalandhar, Ambala, Saharanpur, Moradabad, Rudrapur, Haldwani

23:45 14:10 2nd

Day Sunday

3019/Bagh Express

Howrah Jn Kathgodam :: Asansol, Jhajha, Barauni, Samastipur, Muzaffarpur, Chhapra, Gorakhpur, Gonda, Lucknow, Bareilly, Rampur, Rudrapur, Haldwani

21:45 08:57 3rd

Day M-T-W-T-F-S-S

4120/Dehradun Kathgodam Express

Dehradun Kathgodam :: Haridwar Jn. Laskar J. Najibabad Jn. Moradabad, Rampur, Bilaspur Road, Rudrapur, Haldwani

22:30 0:48 2nd

Day M-T-W-T-F-S-S

5013/Ranikhet Express

Delhi S Rohilla

Kathgodam :: Delhi, Sahibabad, Ghaziabad, Hapur, Moradabad, Rampur, Bilaspur Road, Rudrapur, Haldwani

21 : 55 05:18 2nd

DayM-T-W-T-F-S-S

5035/Uttaranchal Sampark Kranti Express

Delhi Kathgodam :: Moradabad, Rampur, Rudrapur, Haldwani

16:40 22:06 Same Day

M-T-W-T-F-S-S

Trains From Haldwani :

Train No./Name From To :: Via Arrival at Haldwani

Reaches last Station

Days of run : M-T-W-T-F-S-S

2207/ Jammu Garib Rath

Kathgodam Starts : 18:30

Jammu Tawi :: Haldwani, Rudrapur, Moradabad, Saharanpur, Ambala, Jalandhar, Ludhiana

18:46 9:15 2nd

Day Monday

3020/Bagh Express

Kathgodam Starts 21:55

Howrah Jn :: Haldwani, Rudrapur Rampur, Bareilly, Lucknow, Gonda, Gorakhpur, Chhapra, Muzaffarpur, Samastipur, Barauni, Jhajha, Asansol Jn.

22:11 12:40 3rd

Day M-T-W-T-F-S-S

4119/Dehradun Kathgodam Express

Kathgodam Starts : 19:40

Dehradun :: Haldwani, Rudrapur, Bilaspur Road, Rampur, Moradabad, Najihabad Hn. Laskar Jn. Haridwar Jn.

19:56 04:20 2nd

Day M-T-W-T-F-S-S

5014/Ranikhet Express

Kathgodam Starts : 20:40

Delhi S Rohilla :: Haldwani, Rudrapur, Bilaspur Road, Rampur, Moradabad, Hapur, Ghaziabad, Sahibabad, Delhi

20:56 04:30 2nd

Day M-T-W-T-F-S-S

5036/Uttaranchal Sampark Kranti Express

Kathgodam : 08:50

Delhi :: Haldwani, Rudrapur, Rampur, Moradabad

09:06 15:25 Same Day

M-T-W-T-F-S-S

Airways:

The nearest airport to Haldwani is Pantnagar, 35 kms from Haldwani. Currently, there are no regular flights but considering the industrial importance of the belt and the ever growing inflows of tourists, the airport should soon become operational for regular flights.

CHAPTER-4 : GAP ANNALYSIS IN HALDWANI BUILDING & CONSUTUCTION AND RETAIL

4.1 OVERVIEW OF BUILDING & CONSTRUCTION (B&C) MARKET IN HALDWANI

Haldwani B&C environment thrives on government buildings, institutions and hotels, un-organized shopping clusters of retail outlets and scattered joints and restaurants. Other building types such as offices, cinema halls, schools etc have not seen much organized efforts in upgrading the overall structural offerings to the consumer. Hotel market, however has seen lot of small – medium scale investments and a lot of growth, innovation has happened around hotel; thanks to Haldwani’s Geographic location of being a transit tourism point for Nainital tourists.

An overview of Haldwani Building & Construction market

Building Segments

Marks Size (no)

Average Size

Remarks Key Gaps

Shopping & RetailMalls/Shopping Centers

7 2030,000 Sqft

Only large size shopping complexes

No organized retail space / malls available

Retail Outlets 900-975 200-500 sqft

Single-Double Floor shops usually in an unorganized shopping clustors

Extremely high need gap for a one stop organized retail space with modem ambience

Commercial / Institutional

Vishal Mega Mart Only organized played

Hotel 20-25 30 High level of Hotel industry in

40,000 sqft

modernization and innovation through new investments due to tourist in flux

Haldwani is in a fast growing phase – no major gape for a new center

Restaurants 30-14 3000-5000 sqf

High level of modernization and innovation through new investments due to tourist in flux

Fast growing mature no major need gape for a new instant

Modern Office Buildings

18-20 30-40000 sqft

No major focus of any developer in office complexes

High level of gap and need for office complexes for National Level Corporation as well as MNCs

Cinema Halls 4 - Non A/c cinema halls. Lack of attractive ambience and hygienic movie watching experience

Start need gap of a Standard Cineplex with multiple screens

Source : Primary Research in Haldwani City and trade and consumer interactions

4.2 RETAIL ENVIRONMENT IN HALDWANI

Haldwani retail environment can be categorized under 8 board categories as mentioned below :- Retail Categories No of

Stores Indicators of Organized Sector Influence

Key Brands

Apparel/Fashion/Textile ~400 MBO-20%, Branded-10% Local – 70%

All major apparel brand (please see retail brand section below) + Vishal Mega Mart

Leather & Footwear ~80 MBO-50%, Branded-5%, Local – 45%

Bata, Liberty, Reebok Adidas

Consumer Durables 50060 Stand Alone- 30%, MBO – 70%

LG, Videocon Whirlpool Voltas, Samsung etc.

Electronic & telecom ~300 Branded – 10%, Local/ MBO-90%

Nokia, TMS, Uninor, Vodafone, Samsung etc

Coffee Shop Chains 1 One National Chain Cafe Coffee Day Eat Outs 30-40 All stand alone regional

brands except Sama Restaurant Wood packer restaurant etc.

Jewellery 15-20 All local MBOs All Local MBOs

Multiplexes 0 - -Stationery 50-60 All non branded local/un

organized shops -

Total 925-960

Source: Primary Research in Haldwani City and trade and consumer interactions

KEY RETAIL BRANDS ACROSS CATEGORIES IN HALDWANI

Apparel / Fashion / Lifestyle Gini & Joni, Adidas, Levi’s, Pepe, Titan, Raymonds, Vishal Megamart.

Consumer Durables LG, Samsung, Voltas, Videocon, Whirlpool, Haier, Carrier, Bajaj

Food & National Chains Cafe Coffee Day,

Electronics & Telecommunication Sony, Lenovo, Campaq, The Mobile

Store, Uninor, Vodafone, Nokia, LG, Samsung, Micromax etc Foot Wear

Bata, Adidas, Liberty, Reebok, Action etc.

Please Note: No prominent Jewellery and Watch Brands

Understanding Concentration of Premium Brands & Mass Brands in Haldwani Branded Products Scenario

Strong inclination towards to “MASTEGE” (mass + prestige) brands, however BRAND GAPS are there

Given the high consumer paying capability and high penetration of national major brands the retail shopping/ entertainment expectations of consumer are by and large un-fulfilled. Hence it is Critical to identify key need gaps in Current retail officering in Haldwani.

GAP ANALYSIS & OPPORTUNITY IDENTIFICATION

% Share of Premium and Mid Range Brands

33% Premium Brands Semi premium/Mid Range

Brands

Brand Segments No of Brands Under Each Category

Premium Brands 7

Semi premium / Mid Range Brands 14

Based on the B&C and retail market analysis of Haldwani, it is clear that are plenty gaps for a new entrant. However, it is critical to analyze these gaps from retail and consumer perspective

Key Retail Needs in the Existing Scenario

Lack of Inviting Ambience Retail space today is congested and doesn’t support un-aided walk ins and in store browsing.

Unavailability of Product Knowledge DisseminationConstraints of trained staff & their willingness to provide product knowledge and highlighting the product difference.

Source CredibilityRetail Market being very fragmented and absence of corporate names, leaves the consumer with options that are low on Retail brand value.

Absence of Product Demo / Tangible Touch and Feel ExperienceDemonstration of product properties in terms of differentiation / superiority of quality, is unavailable – limited to consumer’s native knowledge of the product.

Opportunity for Value Capture through a Unique Retail Experience

Key Consumer Need Gaps in the Existing Retail Scenario

Complete Absence of Entertainment OutletsLack of cinema halls, amusement parks, gaming acrades. Currently restaurants and eat outs are the only possible entertainment options for Haldwani consumer.

Lack of organized / hygenic place for Leisure Browsing Non availability of “Hang Out” places for yout as well as student community

No shopping DestinationEntire retail market is fragmented with no “one stop” destination for today’s consumer of Haldwani. Vishal Mega Mart is the only super market available, not able to provide entire range of shopping and Shopping Plus Need.

Inconvenience of shoppingCurrently, NCR, Bareilly and Moradabad are the only options for high end, high indulgence shopping leading to inconvenience and high cost of shopping.

Some Consumer Sound Bites“Haldwani needs an A/C shopping condition”“Hanging out with friends is either too incovenient or too constrained due to lack of options” “Spending power is there, no options for spending”“A mall is what Haldwani needs with plenty of entertainment, shopping and food options”

4.4. CONCLUSION OF GAP ANAYLSIS

sEG

CHAPTER 5 – CONCEPTUALIZATION & RECOMMENDATIONS

5.1. KEY COMPONENTS OF THE PROPOSED COMMERCIAL COMPLEX

The proposed concept of the commercial property at Haldwani is based on 3 vital factors

1. The potential of Haldwani as a developing and fast growing town – which means there is a need for a commercial complex which can address consumer needs.

2. The Retail Gap – which indicates high need of an organized, air conditioned shopping space with all brands / categories under one roof.

3. The gap in office and entertainment concepts in Haldwani which point towards a feasible option of an entertainment and office space.

A 3 Step Validation approach

Segment Gap Strongly need gap in retail and

movie segment Office space also a latent need gap

Retail + Cinema + Office as target segment

Retail Category Gap

Apparel and Fashion Food Leather ware Fast Food and Gaming Jewellery, Watches Home Improvement \

Fashion, Apparel, Food and Entertainment to be Anchor Categories

Consumer Need Gap

All- Under one roof Multi category, Multi branded

shopping point Hygienic and air conditioned

Ambience

Shopping Mall with Cineplex with Entertainment options

Consumer Validation

Trade (retail)Validation

Experts (dealer)Validiation

Expert’s (Property Agents) Response to Potential Commercial Buidings suitable for Haldwani

Options Expert’s ResponseHotels 0%Cinema 50%Mall 75%Hospital 0%Office 50%

Summary Overall Assessment of Potential Opportunity

Segments Hotels Cinema Mall Hosptial OfficeExisting Availability

Very High Low Negotiable Multi Speciality Hospital

Low

Extent of competion

Very High Negligible Nil High No private competiton

Consumer Need Gap

Low Very High Very High Low Moderate

Site Suitability High High High High HighProvides First Mover Advantage / Pioneer position

No Yes Yes Already estabilished player

Yes

Space Suitability

No No Yes No No

High weightage to Malls and Cinema & Office Space

In-spite of good response, Cineplex not feasible given the space

Trade Response

Consumer Response

Expert’s

5.2 EVOLVING THE CONCEPT

Based on market gaps and opportunity analysis, there are 3 options as Mall Concept.

Option 1 – Mix Option 2 – Focused Option 3 – Entertainment Food Shops Cineplex

Food Shops

Multiplex Video Gaming Pool Balling Pub / Discotheques In door rides etc

Please Note : 1 Floor of office as sell-off component is common for all the above options.

Analysis of all above options

Parameters Option 1 Option 2 Option 3Gap Availability

Extent of competition

Consumer Pull

Ease of Doability

Provides First Mover Advantage / Pioneer position

Site Suitability

9

9

9

7

9

8

8

8

9

9

9

9

9

9

9

7

9

9

Total Average Score out of 10 8.5 8.7 8.7

Note : Ratings are on scale of 0-10, where 10 is the best score.

In-spite of good response, Cineplex not feasible given the space Expert’s

Based on the analysis, all the 3 options seem doable and suitable, yet are constrained by 1-2 factors. We need to understand enablers for each option given the existing limitations of each one of them.

CHAPTER – 6 : BUSINESS ESTIMATES

The business estimates for mall is based on the Revenue derived from market operating rental norms for shopping and Market Operating Selling Price for Office space.

6.1 UNDERSTANDING RENTALS & SELLING RATES IN HALDWANI

Monthly Rentals for various Retail Space

Type of Retail Space Monthly Rentals / Sqft

Shopping complex 63-70Main Market (Mangal Padao) 55-65Upcoming Markets (Rampur Road) 40-45Nainital road (NH -87) 70-80Average 50-55

6.3 SUMMARY OF RECOMMENDATION & TASK AHEAD

Key recommendations

Strong Feasibility indicators for MallAny one of the 3 options (food+shop, Food+shop+cineplex or Cineplex + entertainment) can be chosen as all 3 options have strong success potential

Key Need Now

To weigh the options of “Construct and Run” Vs “Construct and Sell” based on expert opinions on investor’s willingness and readiness to invest in Haldwani.To initiate primary level interactions with Brands and Experts to arrive at a Product & Brand Mix for the Mall – Help in creating the perfect mall mix Freezing on real / buildable construction area

Word of CautionTo counter competition, time paced decision making and implementation is critical to stay away from clutter and gain a FIRST MOVER advantage.