Urban consumption in India is expected to grow significantly between 2005 and 2025, accounting for more than two-thirds of the overall growth in consumption. While organized retail has traditionally focused on tier 1, 2, and 3 cities, tier 4 cities generate around 40% of India's total disposable income and represent a major untapped market, as existing small stores cannot meet the demands of affluent customers in these towns. FabMart by MRPL aims to address this opportunity by bringing a wide range of branded products to customers in tier 3 and 4 towns through an online shopping platform, combining industry expertise with technology to provide the fastest and best e-commerce experience with timely deliveries.

2. GROWTH IN CONSUMER CONSUMPTION
Consumption will grow 4x over 2005 – 2025. Urban India will account for more than two-thirds of this
growth as urban household income will grow 3.3x over the same period.
Aggregate annual consumption
(Bln, Indian rupees, 2000)
80,000
71,504
70,000
60,000
50,000
40,000 35,913
30,000
18,896
20,000 16,695
10,000
0
1
Rural Urban All India
All India
consumption consumption consumption
consumption
growth growth 2025
2005
Source: MGI India Consumer Demand Model, v1.0

3. GROWTH IN CONSUMER CONSUMPTION
Consumption will grow 4x over 2005 – 2025. Urban India will account for more than two-thirds of this
growth as urban household income will grow 3.3x over the same period.
Aggregate consumption per Urban Household
(Indian rupees, 2000)
400,000 378,170
350,000
6.1%
300,000
250,000
208,406
200,000
150,000 2.9% 115,620
100,000 86,351
65,416
50,000
0
1
1995 2005E 2015F 2025F
1985
Source: MGI India Consumer Demand Model, v1.0

4. URBAN CLASSIFICATION AND FOCUS OF ORGANIZED RETAIL
Urban areas are classified into four types depending on population. Traditionally, organized retail chains
focus on tier 1, 2 and tier 3 (limited). There is a clear gap when it comes to Tier 4 cities.
Bangalore Surat Ludhiana Tiruchirapalli Rohtak
Hyderabad, Kanpur Madurai Amritsar Rurkela
Mumbai Nagpur Bhopal Faridabad Udaipur
Kolkata Lucknow Patna Aurangabad Anand
Delhi Jaipur Nasik, Allahabad Gwalior Faizabad
Chennai Kochi Agra Jodhpur Hassan
Ahmadabad Vadodara Varanasi Raipur Shimla
Pune Indore Rajkot Bhubaneswar Roorkee
Shillong
Tier 1 Tier 2 Tier 3 Tier 4
Major cities Mainstream cities Climbers Large towns
8 cities 26 cities 33 cities 33 cities
Population > 4 million Population > 1 million Population > 500,000 5,094 towns
* Population for each city estimated using the average urban household size
Source: The Great Indian Middle Class, NCAER; MGI India Consumer Demand Model (v1.0); MGI analysis

5. POTENTIAL IN TIER 4 CITIES
40% of total disposable income is generated in Tier 4 cities
Total Households Average income per household Total disposable income
(million, (share)) (1000, Indian Rupees) (Bin, Indian Rupees (share))
186
3,034
16(29%) Tier1 (39%)
Major cities
129
Tier1
Tier1 Major cities
Major cities 1,064
8(15%) Tier2 (14%)
Mainstream cities Tier2
136
Tier2 Mainstream cities
670
Mainstream cities
5 (9%)
Tier3
Climbers Tier3
Tier3 114 Climbers
Climbers 3,009
27 (39%)
Tier4 Tier4
Tier4 Large towns Large towns
Large towns
Note: Disposable Income estimated using income distribution of households from NCAER and model estimates of average household income;
Figures are rounded to the nearest integer and may not add up to 100% Source: The Great Indian Middle Class, NCAER; MGI India Consumer Demand
Model, v1.0; MGI analysis

6. SUMMARY OF OPPORTUNITY
This leaves a huge unmet demand in serving the needs of affluent customers in smaller towns.
 Existing ‘mom-and-pop’ stores are not able to meet the demands of affluent
customers in towns.
 Organized retail chains are yet to penetrate these towns.
 Ecommerce is not yet a viable channel given that customers are not tech savvy,
psychological barriers and limited infrastructure.

7. FABMART – TARGET SEGMENT
The key focus of FabMart by MRPL is to address the needs of affluent customers in Tier 3 and 4 cities.
FabMart by MRPL by MRPL
Focus of FabMart by MRPL Organized retail
Key success factors to serve affluent
Deprived
customers in towns
•1 Product availability – A wide range of
products and services should be available.
Aspirers
•2 Convenience – The process of shopping
should be convenient and fun.
Seekers
•3 Confidence – Customer should trust the seller
and the brand.
•4 Operational control – A high quality of
Strivers
customer experience needs to be ensured with
a tightly managed service delivery model.
•5 Lean & scalable model – Since volumes will
Globals
be low in any given town, the model should be
lean but highly scalable.
Tier 1 Tier 2 Tier 3 Tier 4

8. COMPETITIVE ANALYSIS
In the target towns Shopping from
E-commerce
Mom & Pop stores Large format retail adjacent cities
• The typical • Large format retail • E-commerce chains • Customers going to
mom-and-pop store stores that are such as the nearest city to buy
Comments serving customers in occasionally seen in Flipkart, Myntra etc. goods that are not
the town some tier 3/4 towns normally available
Pros: Pros: Pros: Pros:
• Convenience • Convenience • Variety and good deals • All the benefits
• Trust • Trust of a typical LFR store
• Instant • Instant gratification Cons:
gratification • Variety and deals • Various links in the Cons:
Value value chain (from a small• Involves prior
proposition Cons: Cons: town point of view) planning and travel
to the • Limited variety • Is not present in most are not yet mature i.e. • Returns are not
• May not be of the target towns Technology, Logistics, P possible if the city is
customer the best deals ayments etc., located at a distance
• Trust deficit
• Familiarity with online
shopping required
• No touch-and-feel
experience
Comparative
• Low-Medium • Low • Low-Medium • High
Threat

9. ABOUT FABMART BY MRPL
FabMart by MRPL aims to simplify shopping for customers in smaller towns in India while offering them an unmatched
online shopping experience. We are the only company in India that is exclusively focused on catering to customers in
small towns by bringing in a wide range of products offered by a multitude of brands.
We want to combine our industry expertise, technology know how to offer our customer in towns two things: Fastest and
best e-commerce experience, and Timely delivery in the towns.
The Team
Alphonse Reddy Founder & CEO,
12 years industry experience spanning sales, marketing, strategy and finance.
BE (BITS, Pilani) and MBA (INSEAD Business School)
Investors/Advisory Team
Hemu Javeri Executive Director, Forum Synergies, a $150m PE fund.
Previously CEO of Madura Garments, Nike and Home Solutions.
Anand Morzaria CEO of Pennywise Solutions.
MSc Finance (BITS, Pilani)
Ashish Agarwal Investment Director, Navis Capital,
a $3b PE fund. MBA (INSEAD Business School)