Kaya Spirits - Best Distillers 2018 Kaya Spirits Annual Information Memorandum 2019 | Page 24

Frequently Asked Questions by
Investors/Distributors
A. KBDL has adopted a very free and transparent
policies for funding to guarantee the safety of
the investment. Apart from assuring the
interests of the investors legally in the Official
Deal Signing Documents, KBDL has mitigated all
the risks of the trade on itself only. KBDL also
Note
gives Power of Attorney to the investors of the
Bank Account in which they will transfer funds
and that funds are nominated to the
government for paying excise duties and
receiving payments of the sales from the
Government. By this, the investor has complete
authority and check on the Financial
Transactions of the company. KBDL also
guarantees a minimum Percentage of ROI to the
investors, putting the investment of the
investors in No Risk Zone.
Q. How can we say that we can achieve the 2 % of the market turnover?
A. Indian Made Foreign Liquor segment in the India alcohol market is expected to create absolute INR opportunity of close to INR 80 Billion. This
Opportunity has to be catered by the SME players like KBDL in the market. The simple calculation shown below explains how the 2% Market Share can be
achieved and what does it entails : -
-: Our Brand has following competitors and their market share :-
Minimum
Sale/Month/
Each State
*(Cartons) 2 % of
the
sale
(Carto
ns) EDP of Our
Brands(pric
e Per
Carton)*
INR EDP of
Competitor
Brands*
INR Margin to
Partner . 10
% of the
EDP of
us.INR ROI
(Margin X
amount per
Carton)INR
Sr
No Brands Competitor
Brands 1 Old
Professor
Whisky Royal Challenge
and Royal Stag 150000 3000 1550 1550 155 465000
2 Royal Patiala
Whisky Bagpiper ,
McDowell's,
Officer Choice 300000 6000 1100 1125 112 672000
3 Marlin
Whisky Imperial blue 100000 2000 1300 1325 130 260000
4 Minister
reserve
Whisky Blenders pride 50000 1000 3100 3100 310 310000
Q. What investment is required for
achieving the 2 % of turnover?
A. KBDL requires only the investment for
Working Capital (Primarily for Excise Duty
Payments ) and Marketing and Promotional
Funds. To achieve 2% of Market Share Pan
India, KBDL is raising 35-40 CR in the Series A
funding currently going through. This round of
funding roughly turns to around average 1.5 CR
investment per state. (The 1.5 CR is just the
average out figure. The actual investment
through State Business Channel
Partners/Distributors may vary from state to
state.)
46 Kaya Blenders & Distillers Limited
Q. What will be the investment of Company
as if investor is investing 2 Crore in a state ,
where and how much will be invested by the
company?
A. The company in a span of 1-2 years only,
would have invested 5 times of the investors
investment in the market through procuring
the Labels and Licenses from the government,
by providing Stocks on credit to the
government, bearing all logistics and good's
damage cost, Bearing Marketing Team's
Expenditure, Bearing Rebates, Doing all the
Marketing and Promotional Expenses,
Adjusting the Security Deposit to the State
Channel Business Partner/Distributor. Apart
from this, the company also invests a lot of
time and efforts helping our Distributors in
Business Operations like – Centralised Field
Force Tracking through Application,
Maintaining MIS on behalf of Distributor,
Regular follow-up and involvement of our Top
Management Officials in assisting the
Distributors in Managing and enhancing the
business.
Annual Information Memorandum 2018-19
47