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(F-1) Roll no: 17
Submitted to: - Prof. Shailaja Parmar
The difference between a successful person and others is not a lack of strength, not a lack of knowledge, but rather in a lack of will." Vincent T. Lombardi
Management as a separate field has been emerging during last few decades. In today’s era M.B.A. curriculum is designed in such a way as students can get knowledge & practical exposure to the corporate world in minimum time. Business schools of today have realized the importance of practical knowledge over theoretical base. The live project is necessary for the fulfillment of curriculum as well as it provides opportunity to get depth knowledge of topic on which report is based. It increases our analytical as well as intellectual skills. It gives opportunity to relate your theoretical knowledge with actual practice, test the validity & acceptability of classroom learning in real corporate world. My project is based on the services provided by NBFC called FUTURE CAPITAL HOLDING. Generally NBFCs are considered as complementary to banking sectors. Today NBFC sector has grown like anything. FCH is the company of future group which is well diversified in consumption sector. FCH is considered to grow by 100% by next year.
I am also very thankful to Mr. Nothing can be gained without inspiration and guidance.Shailaja Parmar faculty member of IIMT who gave me guidance for this live project.“It takes 20 years to make an overnight success. applying my theoretical concept to gain practical knowledge." Eddie Cantor Acknowledgement It gives me great pleasure to express my sincere gratitude to those without whom the project would not possible for me. Trilok Sharma. I would like to thank Mr. the Director of IIMT for giving me a global opportunity to get an exposure of the corporate world. 20 . I take great pleasure to express thankful gratitude to the people who have supported me in collecting the required data for the purpose of preparation of this live project and spent their valuable time for me. thereby. I am also thankful to all the staff member of IIMT College.
no 1. 2. 6. 8. 9.Content Preface………………………………………………………………….2 Acknowledgement……………………………………………………3 s. 5.no 5 6-8 9 10-12 13 14 15 16-17 18-19 20 20 . 7. 4. 3. Particular NBFC Over view of Future Group Overview of FCH Business of FCH Spilt of FCH After Spilt result Everstone Financial Ratios Performance on stock market Future of FCH p. 10.
like accepting deposits. hire purchase. It is an heterogeneous group of institutions (other than commercial and co-operative banks) performing financial intermediation in a variety of ways. simplified procedures. and lend them to ultimate spenders. etc. attractive rates of return on deposits. 20 . they are being recognized as complementary to the banking sector due to their customer-oriented services. etc. Non-banking financial companies (NBFCs) are fast emerging as an important segment of Indian financial system. Thus. leasing. directly or indirectly. flexibility and timeliness in meeting the credit needs of specified sectors. They advance loans to the various wholesale and retail traders. small-scale industries and self-employed persons. 1934 (Chapter III B) and the directions issued by it under the Act. they have broadened and diversified the range of products and services offered by a financial sector. They raise funds from the public. Gradually. The working and operations of NBFCs are regulated by the Reserve Bank of India (RBI) within the framework of the Reserve Bank of India Act.Non Banking financial companies Non-banking financial companies (NBFCs) form an integral part of the Indian financial system. making loans and advances.
000 people and is listed on the Indian stock exchanges. Headquartered in Mumbai (Bombay). The company follows a multi-format retail strategy that captures almost the entire consumption basket of Indian customers’ retail. Through PRIL. Future Group’s vision is to.Overview of Future group The Future Group is a leading Indian business group promoted by Kishore Biyani which focuses on consumption-led businesses. “deliver Everything. ‘Indianess’ and its corporate credo is – Rewrite rules. Every time to Every Indian Consumer in the most profitable manner. Pantaloon Retail. Future group operates in following verticals. Retain values. Pantaloon Retail employs around 30. Led by its flagship enterprise. the group operates over 16 million square feet of retail space in 73 cities and towns and 65 rural locations across India. (Change rules for being Ethical).” One of the core values at Future Group is. the Future Group has established one of India’s leading organized multi-format retail networks. Everywhere. 20 .
Convergem Communication (India) Limited:Convergem Communication (India) Limited (CCIL) (formerly known as Convergem Retail (India) Limited) was incorporated to set up a chain of retail outlets for dealing in areas of communication. Future Brands Limited: . transportation and warehousing services for all group companies and third-parties. managing. 20 . insurance.It offers complete retailing solutions for all products and services related to home building and home improvement.Future group companies Pantaloon Retail (India) Limited: . Home Solutions Retail (India) Limited: . logistics and brand development. acquiring and dealing in consumer-related brands and IPRs (intellectual property rights).Future Ventures seeks to promote and participate in innovative and emerging business ventures in India. Future Media (India) Limited :. offers relevant engagement through its media properties like Visual Spaces.It is involved in the business of creating.Future Media (India) Limited (FMIL) was incorporated as the Group’s media venture. mall development. Pantaloon Retail is part of the Future Group which has presence in multiple businesses in the consumption space including consumer finance. retail media. developing. Radio. Print. capital. Future Supply Chain Solutions Limited: .Pantaloon Retail (India) Limited (PRIL).It is involved in the business of providing logistics. Television and Activation. data & voice storage and other related products Future Ventures India Limited: . is India’s leading retailer that operates multiple retail formats in both the value and lifestyle segment of the Indian consumer market.
and has emerged as one of the most popular online shopping portals in India. Staples Future Office Products Private Limited:-It is involved in the business of dealing in all kinds of office supplies. 20 . The Bowling Company. The company has two brands under its umbrella .FCPL is a subsidiary company of Pantaloon Retail India Limited. SFOPPL is a joint venture between the Company and Staples Asia Investment Limited (a subsidiary of Staples Inc USA). the Brew Bar. inspired by Sachin Tendulkar. Future bazaar India Limited :-Future bazaar India Limited (FBIL) is set up as the e-Retailing arm of the Future Group for providing on-line shopping experience. office equipments and products. These brands operate in categories such as foods. Future Generali India Insurance Company Limited \ Future Generali India Life Insurance Company Limited Future Consumer Products Limited: . 2007.SACH & S Drive.It is a group company that operates leisure and entertainment chains. apparels. personal care and general merchandize among others. the Sports Bar. Futurebazaar. Future knowledge services ltd Future Knowledge Services Limited (FKSL) was incorporated on January.com was launched on January 2. Sportsbar Express and Chamosa. Galaxy Entertainment Corporation Ltd: . and are available through future group formats. incorporated in September 2007.
20 . 21. 2006.000 crore as of September. 2006 and by virtue of the acquisition of its entire share capital by PRIL. A fresh certificate of incorporation consequent to the change of its name to KB Infin Limited was granted to Company on August 31. it converted to a public limited company with effect from August. 2006 by the RoC. with a net worth of Rs 750 crore and a loan book of Rs 2. the name of Company was changed to Future Capital Holdings Limited with effect from December 21. Future Capital Holdings Limited was incorporated on October 18. 2005 as KB Infin Private Limited. which is a business group focusing on consumption-led businesses in India and which is also one of India’s leading organized multi-format retailers. Future Capital Holding (Overview) Future Capital Holdings Limited (“FCH”) is the financial services arm of the Future Group. Pursuant to a resolution of company’s shareholders dated April 27. Future Capital Holdings Limited (FCH):. 2006. One of the investors in such Company is Och-Ziff. pursuant to a resolution of our shareholders dated November 29. a private limited company under the Companies Act. The company operates a consumer finance retail format. 2006.000-strong customer base. Future Money and manages assets worth over US$ 1 Billion through its various funds including Indivision. 1956. provides consumer loans and has a 30.It was formed to manage the financial services business of Pantaloon Retail (India) Limited and other group entities. a prominent international fund.2007 and is engaged in the business of business process outsourcing and knowledge process outsourcing. Further. Kshitij. The Bombay Stock Exchange-listed Future Capital. Horizon and Future Hospitality.
Business of future capital holding Future Capital Holding Investment Advisory services Retail financing Research Consumer durable loan Loan against property Loan against security Loan against gold • Investment Advisory services:. research and recommendations.The company provide private equity & real estate investment advisory services to onshore and offshore clients. 350 crore 20 . It acts as the investment advisor to the Rs. These investment advisory services include investment analysis.
Horizon Development Management. lifestyle and spending habits. As an integral part of the private equity investment advisory services it provides. LLC (the “Horizon Fund”). which are integrated developments that include convention centers. 786 crore) offshore hotel fund.or four. whose main focus is developing retail malls in India. The Board of Trustees of the Kshitij Fund evaluates the investment advice it provides to them and then makes the final investment decision. the offshore investment manager of the US$425million (approximately Rs. The Board of Directors of the respective fund then makes the final investment decision. 1. Within real estate investment advisory services.(approximately US$89 million) Kshitij Venture Capital Fund (the “Kshitij Fund”). Horizon Realty Fund. commercial offices. the offshore investment manager of the US$ 350 million (approximately Rs. Within private equity investment advisory services.376 crore) offshore real estate fund. It also acts as the investment advisor to three offshore investment managers namely: Indivision Capital Management. the offshore investment manager of the US$200 million (approximately Rs. it advises clients on developing real estate assets.671 crore) offshore private equity fund. The offshore investment managers evaluate the investment advice it provides to them and may then make an investment recommendation to the Board of Directors of the respective funds they manage. an onshore SEBI-registered venture capital fund. it focuses primarily on evaluating investments in high growth companies backed by entrepreneurial talent in consumption-led sectors. 1. Indivision India Partners (the “Indivision Fund”).star hotels. . community centers and various forms of retail space. it pursues a “mentoring” approach with regard to the 20 . service apartments. Indus Hotel Ventures LLC (the “Indus Fund”). which are sectors whose growth and development will in general view be determined by the growing purchasing power of Indian consumers and their changing tastes. residential apartments. including malls and “market cities”. three. and FHL Developments Company LLC.
• Consumer durable loan: . without selling them. • Loan against securities: .In June 2007. • Loan against property: . • Loan against gold: -These loans help the customers to unlock the value of their gold usually in the form of jewellery. Customers usually take these loans for a period of 3-12 months.Loans/Overdraft facility is provided to individuals against listed liquid shares for 3 – 12 months for meeting short term needs. car. This arrangement provides us with access to PRIL’s large customer base. This involves actively assisting businesses with their strategies and with the implementation of their growth plans.FCH has built excellent platform for financing the customers’ purchase of durables like refrigerator.investments it advises on.These loans are typically availed by Small and Medium Enterprises. controlled or managed by PRIL and its subsidiaries. • Retail Financial Services :. These loans provide liquidity against valuable physical assets of the customers. 20 . furniture etc. we have the exclusive right to provide financial products and services at present and future malls. and funds are typically used for investment in their businesses. Pursuant to an agreement with PRIL. These are typically taken by customers to tide over short term liquidity issues by taking loan against the shares. as well as to employees for funding their ESOPs. company launched its retail financial services offering – Future Money – with the objective of becoming one of the leading retailers of financial products and services in India. from stores of Pantaloons Retail India Limited. stores and retail outlets in India which are owned. to avail of funds.
Mr. Future Capital Research conducts research on macro-economic trends in India to identify short. A demerger would have required FCH to be split into two listed companies with the same shareholding pattern. It utilizes the research generated by Future Capital Research in its advisory activities. a former managing director from Goldman Sachs. Kishore Biyani and Sameer Sain. which distributes financial products. decided that doing business together was getting too difficult. its research business. the consumer/ retail credit business and strategic joint ventures in wealth management and foreign exchange. another Goldman Sachs alum.and medium-term trends as well as long-term structural shifts in India’s Economy. This would have defeated the purpose of both being able to have majority stakes in their respective businesses. The promoters of Future Capital Holdings (FCH). conducts and publishes economic research on India with the objective of enhancing value creation across its other businesses. Biyani kept FCH’s retail financial services.: Future Capital Research.• Research: . where Sain is managing partner along with Atul Kapur. Spilt of Future capital holding Call it irreconcilable differences that led to the split. In particular. and split the company’s two broad business lines — investment advisory services and consumer banking — between them. The investment advisory — which includes one private equity fund and three real estate investment funds — have gone to Everstone Investment Advisors. It also develops proprietary indices to highlight trends in consumer behavior. 20 .
has surprised and concerned a number of people.The separation. The investment advisory side has no balance sheet. It is also not clear what shareholders feel about the split. Pantaloon Retail and Biyani owned 60 per cent of FCH. contractual obligations and project completion. in effect. while Biyani’s share comprises the entire assets of FCH. At the outset. Many of Biyani’s business associates have had difficulty in understanding why their relationship with the senior partner did not seem to matter in junior partner Sain’s calculations. the retail ecosystem offered several good opportunities for investing in innovative ideas and creating companies that could enhance consumer value. both within and outside the financial services industry. though Sain was co-promoter with a smaller share. After spilt results of revenue 20 . both men recognized that there would be differences but were also clear that different perspectives often led to the best outcomes. and the process. making Biyani. which focused on rates of return. For both. the senior partner.
Goldman Sachs and the Abu Dhabi Investment Authority. something that will take him another few months to build. a 50:50 joint venture with US-based Real term Global. 20 .About Everstone The investment advisory business — now Everstone’s — manages four funds at present: the Rs 350-crore domestic real estate Kshithij Fund. $350 million in the Horizon Realty Fund (HRF) and $250 million in Indospace Global Logistics. Investors in those funds include hedge funds such as Tiger Global. Och Ziff. the $425 million in IIP 1 fund. Mr. an industrial warehousing development fund.Sain is in the process of raising his next fund: a $550 million IIP 2. Unlike IIP 1. this fund will be all Everstone’s.
28 21.04 3.69 0.28 0.67 Mar '08 12.Considering G.24 5.05 5. 20 .14 -- 0.71 10. & N.18 7.90 9. Financial expenses have also declined.5 times & expenses specifically administrative expenses & personal expenses which have tremendously declined almost by more than 400 crores & 17 crores respectively.07 0.P ratio we can say that they are becoming double because company’s income from various operation have increase almost 1.36 0.59 12.Financial ratio analysis of FCH particul ars Gross Profit Margin (%) Net Profit Margin (%) Current Ratio Quick Ratio Debt Equity Ratio Long Term Debt Equity Ratio Asset Turnover Ratio Mar '07 -1.11 1.30 0.91 -- 3.59 10.60 31.04 1.24 Mar '09 24.92 2.P.64 Mar '10 53.76 Profitability ratios :.
Debt equity ratio: . 20 . Asset turnover ratio :. Current Ratio :.Company has increased debt during current year but at same time its reserves & surpluses has increased more than that equity capital being same.Company’s current ratio has been increasing during last three years which indicates that its current liabilities are increasing as compared to its asset.it has been increasing which indicates that company’s assets are becoming more & more efficient leading to more turnover.
Performance in stock market 20 .
3) Company was not giving dividend but recently company declared 1Re. dividend.Nifty stock Findings from above charts 1) This particular stock has negative co-relation with nifty index. 20 . 2) Company’s earning is stable but from Jan 2010 it has started increasing.
according to the RoC’s website. seeking to tap burgeoning demand for home loans in a country where up to 800. Now.000 apartments and houses are expected to be ready for possession in the next three years. Future Capital is in the process of registering the business with the housing finance regulator. is registering the business with the National Housing Bank. Home loans are the fastest growing segment for commercial banks.000 and 800. which have a 60% share of the market. according to real estate consultancy Jones Lang LaSalle. has already registered a home finance company named Future Capital Home Finance Pvt. The financial services arm of Kishore Biyani’s Future Group plans to enter the mortgage lending business. with mortgage lenders such as Housing Development Finance Corp. the National Housing Bank. Ltd accounting for the rest.000 new dwelling units will be ready for delivery in three years. During few months it makes higher highs & higher lows leading to uptrend while during few months it made lower highs & lower lows leading to downtrend. as the financial services firm is known. 20 . Future of FCH Future Group to enter mortgage lending The firm’s financial services arm. Future Capital Holdings Ltd. Outstanding home loans are estimated at Rs 5 trillion in a country where between 750. Analysts expect housing loans to grow at an annual pace in excess of 20% in the coming year and expect competition in the mortgage lending space to increase. Analysts expect the overall growth of FCH by 100% by next year.4) Company’s stock price is highly volatile. Future Capital. Ltd with the Registrar of Companies (RoC).
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