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1960 Fabindia Inc established

1976 Flagship store at GreaterKailash, FOPL established

1976

1994 Single store

1999 2011 Grew from 5 stores to141 stores

Fabindia moved from shy to

aggressive growth, all the while

ensuring profitability in spite of the

near vertical growth

Historical Perspective

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A viable, profitable retail platform for productscreated using hand-based processes

The creation of skilled, craft-based sustainable jobsin the rural sector

Fabindia a unique business entity

Twin Mandate :

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The Fabindia Business Model

Fabindia

Customers

ArtisanCommunity

Owners /Employees

- Traditional brand loyalty

- Product accessibility

- Visibility

- Range

- Contemporary

- Belief in product

- Sustaining Craft

- Artisan

empowerment

- Crisil rating of

AA -

- Inclusive

ownership :

approx. 70% ofthe staff across

levels own

company stock

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Some factoids to understand us

Employee strength - 1500 + Fabindia Employees 1100

Contracted staff 400

An Equal Opportunity employer

1.78 -1 mix (Men- Women)

76% of the management are women

Over 30% staff have been in the company over 5 years

Ratio of HR to staff 1: 125

GPW results were very surprising for us

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So how do we make it all work ?

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The Fabindia Core Values

Ownership of Company goals

Mutual Respect and Humane Approach

Fairness in our Intent

Honesty in all our actions

Result Orientation

Continuous Improvement

Leadership by Example

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Alignment of Ideology

Driving business success while ensuring sustenance ofcraft

Hiring to translate passion for our ethnic crafts andbusiness ideology into satisfying careers

Our hiring specifications for management levels testscandidates on their commitment to the above

All induction and orientation processes reinforce the

dual objectives of our business model

Demonstrated belief in organizational values is one ofthe key parameters in performance assessment for

senior roles

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Shared Ownership

Approx. 70% of our employees across levels own the

company stock

Opportunity for Wealth creation

Opportunity to partner in success

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Entrepreneurial work culture

Independent SBUs run the regions

Decentralized

Each store a profit center and each store manager

an entrepreneur with a P&L responsibility Profit sharing plans for over achievement

COCs ensures Artisan empowerment

Sustainable community development

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Performance and Development Focus

Centres of Excellence

as drivers for service improvement and focus on

continuous development

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Obligations of a COE

To customer

Consistentstandards ofservice

Excellent levelof customerinteraction

High levels ofpersonalization

Very highinitiative to getfeedback and

give follow up

To theOrganization

Conformity to allprocesses

High productivity

Excellentcustomerfeedback

Training groundfor newemployees /stores

To the StoreTeam

Highly motivatedteam

High investmentin team memberdevelopment

Stress reduction

in the workingenvironment asprocessconformationincreases

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Support provided to a COE

Classroom

On the job

Technical

Behavioral

Training inputs

Motivation through visibility

and recognition Process changes / inputsOther inputs

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Growth from Within

IJP process

Opportunities for growth from within

Setting people up for the next role

Considerate of individual needs relocations

Humane approach in application of policy decisions Generalist skills being made specialized

Functional and Behavioral competencies for every position

Biannual assessment of development needs through multi

source feedback

IDPs and PIPs for every individual up to a certain level

Strong alignment of the L&D curriculum with the competencies

Training budget available even during the recession

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High level of transparency-

All employees are treated as shareholders in decision

making

Simple HR processes and policies

Role of HR is to create disproportionate impact (1:125)

work with each employee as an individual

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Empowering Women

76% of management positions are staffed by women

Feeling secure, safe and empowered

Growth and leadership

Women Intrapreneurs

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In Summary

We value our unique business model We strive to align our business and employee ideologies

We empower our stakeholders and encourage

participative ownership of brand Fabindia

We have a strong focus on development and growthfrom within

Our core culture has not seen a dilution despite changes

in our environment

Every employee feels connected, recognizes his/her rolein the success story that is Fabindia in spite of rapid

growth.

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THE VISIONARY