Kaya Spirits - Best Distillers 2018 Kaya Spirits Annual Information Memorandum 2019

Swot Analysis of Kaya Blenders & Distillers Limited Highlights of Liquor Business Liquor business is a High Volume Business having turnover minimum of 10000 crores in a Year which is Minimum for any state in INDIA and If the KBDL along with the Business Partner/Investor/Equity Holder are able to get only 1-2 % share (which is Automatically acquired once we start Business), It facilitates good return to the Consortium. Since our brands will be having only two or three competitors in the same segment at the market so 2 % is the least volume which will be guaran- teed and obtained in the existing Vast Liqour Industry without any hassle or challenge and in case of Good Marketing and Rebates we can go upto maximum of 5 % of the Total volume of that Market. I N V E S T O R C A N H AV E T H E I R INVESTMENT SECURE and INVESTORS HAVE A EDGE WHILE WORKING IN THE CORPORATION MARKETS. Out of the total fund, 25% would be used in procurement of dry & wet goods for production and the balance 75% would remain in the escrow account for duty investments. The fund flow would entirely be in the overheads & working capital and not in any capex. Investors can be allotted Equity on Private basis as per the norms of RBI or SEBI against the Money paid to KBDL by them. The consortium can be incorporated with any of the below options as per the Understanding:- Ÿ Ÿ Ÿ Ÿ 42 Kaya Blenders & Distillers Limited Directors can put Investment in the Company Account and it can be considered as Loans from Directors and Separate Bank Account can be given to the director for specific Business sharing or dedicated area as mutually agreed between the KBDL management and Coming additional director. Equity can be offered in the event of Investment in the company and same Shares can be redeemed or paid with compulsory buy back at an agreed price between the Share Holder and KBDL. the payments are also paid by the government. In that event the Payment is 100 % secure (for Investor) and timely too as Government is the Buyer and Payee for the Lioqur sent in the Government Godown, Our business partner can have the Exclusive Control of the Bank Account which is registered with the government for the Payments of Lioqur sent by KBDL thus keeping rights and funds secure of the Investor . Ÿ strength Ÿ Nil liabilities. Ÿ Low overheads. Ÿ KBDL is self brand owner, manufacturer & marketer. Ÿ Team with huge industry/sector experience & expertise. Ÿ Business operations in a sector in India which is the largest industry in the world (400 million cases per annum sales) Ÿ The CAGR growth rate is in excess of 5% in India. Ÿ Money is very safe in this sector as 80% of the businesses are in corporation markets Ÿ Distribution and State Partnership Agreements against the Minimum perfor- mance by KBDL mutually agreed between upon state to state and Product to Product Ÿ Ÿ Ÿ Opportunities WITH KBDL , THE INVESTORS HAVE DOUBLE BENEFIT OF JOINT VENTURE ALONG WITH EQUITY INVESTMENT ALONG WITH FEATURES OF DEBT PROPOSAL. Ÿ Impact of social media is changing consumer behav- Ÿ Low working capital Ÿ Threats Ÿ Debt Investments with Yearly ROI payable quarterly or Monthly . In the Markets where Liqour Business is operated and controlled by the government, which are govt. owned. Ready availability or all raw materials sourced within India and thus no imports are required. Production Presence of us is more than six locations to cover Pan india Acceptance of brands and their segments in past year Past year good volume Ÿ No visible threat apart from apathy from some political parties & states. Ÿ iour and adventurism to new brands are increasing reducing monopoly of large companies & MNCs. GDP growth of around 7% of India's economy means more disposable income triggering sales of luxury products & alcohol. Economic growth is also fuelling growth of alcohol sales in the premium & semi-premium categories which contributes a healthy bottom line other than the past when volumes used to come mainly from the regular & cheap segments. EBIDTA margins and ROI are high (at around 50-60%) as inflow of funds or payment rotation cycle is around 30-45 days largely because of corporation based distribution system. Just a mere 0.5% market share means a volume of around 500000 cases per annum which is a good enough volume to deliver handsome top-line & bottom-line in the sector. As production costs are low in India, there is a huge scope of exports. Annual Information Memorandum 2018-19 43

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