pmlannualreport-2014

8/11/2019 PMLAnnualReport-2014

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Pole position means that you are advantageously placedamongst your peers for a competitive event about to take

place. But one must earn the pole position by proving the bestperformance in earlier event runs. PML has also earned its

Pole Position by accomplishing several feats to date. Rea d mor e o n p age 32.

We have attained the Pole Position as a player withinthe consumption based industries o India. With strongconsumption growth and impressive demand romretailers, our retail malls have become highly soughtafer destinations by top-end national and internationalbrands. Tese are amongst the most productive shop-ping centres in their respective locations, with theiraggregate consumption sales surpassing some o Indias

leading FMCG players. Most importantly, our creativityin developing the alternative asset classes on a build-and-sale model is also nothing short o the kind oenergy we have placed behind our retail assets and theresults are showing themselves. Our pole position gives us the privileges enjoyed in asellers market. Our world-class assets give us the abil-ity to attract high-quality retailers and also earn strongrental yields, with handsome upsides and cash ows.Our pole position also allows us to engage with the besto breed stakeholders investors, lenders and talent.Tis also gives us con dence to imagine and undertakelarger and more ambitious projects. Atul Ruia Jt. Managing Director, Te Phoenix Mills Limited

POLE Position


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2 Te Phoenix Mills Limited

Our Visiono create shareholder value bygenerating exceptional yields romthe capital growth and sale oarchitecturally superior, difficult toreplicate assets, that are truly worldclass in quality and in rastructure.

o create a superior businessenvironment or our many local andinternational retailers and partners, bygrowing a loyal customer ow to ourassets by consistently delighting andengaging the Indian consumer.

Disclaimer:

EXPANDING OURASSET CLASSES

ANNUAL REPORT 2012-13

PositionPOLE

ANNUAL REPORT 2013-14


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3Annual Report 2014

At a GlanceBoth directly and through strategic investmentsand partnerships, we specialise in the ownership,management and development o iconic large ormatretail-led mixed use properties that include shopping,entertainment, commercial, residential and hospitalityassets.

oday, along with our investees, we have interests in

10 irreplaceable large scale retail assets making upclose to 7.0 mn sq. f. across 8 Indian city-centres. Withthe launch o our prime residential and commercialproperties in Bengaluru, Chennai and Pune and withthe commencement o our agship hotel, PalladiumHotel, in Mumbai, we are emerging as a leading realtycompany o India that is both highly integrated andasset-class diversi ed at the same time.

QUICK FAC S Listed on BSE Limited

(Code: 503100) National Stock Exchange Limited

(Symbol: PHOENIXL D)500 + Employees

Presence in 8 cities* Over 100 Acres in otal Land Assets

OPERA IONAL10 Malls in 8 cities

2 commercial centres in 2 cities Over 10.0 Mn sq.f in Retail,

Hospitality, CommercialAnd Residential Assets

PLANNED (Next 4 Years) 2 Shopping Malls in Development 2 Office centres in 2 cities 4 residential projects under development 1 hospitality property in development

Consolidated Financial Highlights(` Mn) FY2013 FY2014Sales Income 252 5,534Hospitality Income 152 816License Fees, ServiceCharges, Etc. 4,295 8,135

otal Income 4,699 14,485EBI DA 2,632 6,784EBI DA Margins 56% 47%Other Income 521 391Depreciation 474 1,055Interest 1,430 3,451Pro t Be ore ax 1,248 2,669Pro t Afer ax &Minority Interest 842 1,285

EPS (FV of` 2 per share) 5.81 8.87

POLE Position


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Ashokkumar RuiaChairman & Managing Director

Pg26

Atul RuiaJt. Managing Director

Pg32

Contents

About us

1 2 3Messages MD&A

Te GrowingConsumption Cult .................. .......6 - 9

Evolution o HSP .................... .. 10 - 11

Our Business Model ................. 12 - 13

Asset Summary ......................... 14 - 15

Pan India Presence ................... 16 - 17

Corporate In ormation .................... 18

Awards and Recognition ................. 19

Board o Directors .................... 20 - 21

Management eam ................... 22 - 23

Key Financial Indicators .......... 24 - 25

Features Stories:Art Guild House ........................................38 - 41Fountainhead, Pune ..................................42 - 47Palladium, Chennai -Stylish In Te South ..................................48 - 51Kessaku, Fine Art O Living,Per ected .....................................................52 - 55Luxe, A New Dimensionto Entertainment .......................................56 - 59Michael Kors ..............................................60 - 61

Managements Discussion & AnalysisEconomic Review ......................................63 - 64Industry Review .........................................65 - 77Company Overview ..........................................78

Operational Review Advantage Phoenix Mills Limited ...................78Focus On Management O Assets ...................79Increasing Visual And Aesthetic Appeal ........79Sharpening Up Marketing Activities ..............80Providing A Wow Experience ........................81Everything For Everyone ..................................81

Operational Projects

RE AIL:HSP Complex (High Street Phoenix &Palladium Mall) .................................................83Phoenix Marketcities ........................................85Phoenix Marketcity, Pune ................................86Phoenix Marketcity, Bengaluru .......................87Phoenix Marketcity, Kurla - Mumbai .............88Phoenix Marketcity, Chennai ..........................90

Chairmans Message ................. 26 - 31

A Fireside Chat withthe Jt. Managing Director ........ 32 - 37

POLE Position


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5Annual Report 2014

4 5MD&A contd. DR & CGR Financials

HOSPI ALI Y:Palladium Hote l, Mumbai ...............................91 COMMERCIAL:

Centrium ............................................................92

Projects Under ConstructionCOMMERCIAL:Art Guild House ...............................................94Phoenix Paragon Plaza .....................................95

RESIDEN IAL:One Bangalore West, Bengaluru......................96Kessaku, Bengaluru ...........................................97Te Crest, Chennai ............................................98Fountainhead, Pune ..........................................99Phase I, Bengaluru East - Ober Haus ........... 100

HOSPI ALI Y:Courtyard By Marriott, Agra ........................ 101

RE AIL:Palladium Chennai ......................................... 102 Investees ........................................................... 103Management Outlook .................................... 104Financial Overview ........................................ 105Risk Management And Internal Controls ... 107In ormation echnology ................................ 108Human Resources........................................... 108Cautionary Statement .................................... 109

Directors Report ............................................ 110

Corporate Governance Report ..................... 115

Standalone Accounts ...................................... 131

Consolidated Accounts .................................. 163

Notice ............................................................... 205

The GrowingConsumption Cultat Phoenix Malls

Pages 6 - 9


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60% YoYGrowth

` 40.4 bnConsumption in FY 2014

The GrowingConsumption Cultat Phoenix Malls



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Consumption growth across Phoenix Malls has been very strong. It has grown by 60% YoY to Rs 40.4 billion

in FY2014, up rom Rs 25.3 billion in FY2013. Teabsolute value o total consumption in our Malls ishigher than most pan-India retailers and comparableto mid-sized FMCG companies. Te exciting part isthat our Malls are still in a rapid growth stage and this

renzied growth is expected to continue or the next3-4 years be ore we stabilize in the low double-digits.In FY2015, we expect the momentum to continue andproject our consumption growth to be in the region o30% across our Mall business.

Consumption across all categories has witnessed stronggrowth which is a testament to the leadership positiono the Phoenix Malls. Te largest categories, such asApparels & Fashion and Hypermarkets & Departmentstores, have grown by over 45% on a YoY basis. Tehighest growth category has been witnessed acrossJewellery which has increased by 172% YoY, drivenby new-store openings and strong same-store-salesgrowth across the category.

rading density (consumption per square eet o

carpet area) increased by 17% on an average across allthe Malls. Tis growth has been during a challengingenvironment that witnessed most retailers acing a ator negative same-store-sales growth. It revalidates theskills o the Mall team at each o our retail assets.

A strong consumption growth positions Te PhoenixMills Limited (PML) per ectly to clock double-

digit growth in rental income. While all stores pay aguaranteed rent, beyond a threshold consumption persquare eet, they start paying rentals on a percentageo sales/turnover o the store. Te Phoenix Malls arethereafer trans ormed rom being a play on the realestate to that on the organized retail consumption story.

Te demographic-led consumption story makesa strong case or India with almost 58% o GDPconsumed internally. Consumption is one o the keythemes driving a vibrant economy. Strong internal

demand has kept India going asthis is resilient to economiccycles. Te geographicpattern o Indias income andconsumption growth is astshifing. Te luxury goodsmarket is taking aspirationalspending to its naturalconclusion,even asdiscretionary

spending isrising byleaps andbounds.

Break up of Consumption - FY2014Multiples & Entertainment

F & B

Apparels & Fashion

Jewellery

Cosmetics, Optics, Health

Footwear, Bags & Accessories

Electronics

Home Accessories

Hypermarkets & Department Stores

Books, Toys, Gift & Sports

3%

3%6%

13%

1%

25%

4%

10%

24%

11%

7Annual Report 2014


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8 Te Phoenix Mills Limited8 Te Phoenix Mills Limited

25

20

15

10

5

0HSP Chennai Pune Bengaluru Lucknow &

BareillyKurla

Footfalls in Million

Aggregate Footfalls Exceed 88 million in FY2014

88

millionFootfalls in FY 2014

The Growing Consumption Cult


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9Annual Report 2014

Consumption Performanceat all Phoenix Malls

FY2013 FY2014 YoY Growth

200%180%160%140%120%100%80%60%40%20%0%

Y o Y G r o w t h

10000

8000

6000

4000

2000

0

S a l e s

( ` M n

)

72% 64% 49%

172%

64% 42% 65% 42% 44%71%

F & B

A p p a r e

l s &

F a s h

i o n

M u

l t i p l e s

&

E n t e r t a i n m e n t

J e w e l

l e r y

C o s m e t i c s

,

O p t i c s

H e a l t h

F o o t w e a r ,

B a g s

&

A c c e s s o r i e s

E l e c t r o n

i c s

H o m e

A c c e s s o r i e s

H y p e r m a r

k e t s

&

D e p a r t m e n t

S t o r e s

B o o

k s , T

o y s

,

G i f t

& S p o r t s

Te absolute

value o totalconsumption inour Malls is higherthan most pan-India retailers. OurMalls are still in arapid growth stageand this renzied

growth is expectedto continue or thenext 3-4 years.


Y o Y G r o w t h

T r a d

i n g

D e n s i t y

( R s

P s f

P m

)

P M C

B e n g a l u r u

P M C

C h e n n a i

P M C

P u n e

P M C

M u m

b a i

P M C

P a l

l a d i u m

P h o e n

i x U n

i t e d

B a r e i

l l y

P h o e n

i x U n

i t e d

L u c k n o w

T o t a

l

2500

2000

1500

1000

500

0

90%80%70%60%50%40%

30%20%10%0%

32%

16% 28% 12%3%

22% 17%

86%


Y o Y G r o w t h

S a l e s

( ` b n

)

14%

39%

77%65%

33%

17%13.3

6.2 6.6 4.4 6.91.1 0.481.6

H S P &

P a l l a d

i u m

P M C

P u n e

P M C

B e n g

a l u r u

P M C

M u m

b a i

P M C

C h e n n a i

P h o e n

i x U

n i t e

d

B a r e

i l l y

P h o e n

i x U

n i t e

d

L u c k n o w

P a l l a d

i u m

H o t e l

F & B

T o t a

l

60%

40.545.040.035.030.025.020.015.010.0

5.00.0

90%80%70%60%50%40%30%20%10%0%


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1900s -1990s 1900s Te Phoenix Mills Limited was

started by the Ruia amily to manu acture

cotton textiles in Mumbai. 1950s Te Phoenix Mills Limited got

listed on the Bombay Stock Exchange.

1980s Mumbai mills underwent aturbulent phase owing to labour unrest andhigh operating costs o textile mills.

1990s Te management o TePhoenix Mills Limited conceives theidea o an entertainment and li estylezone on the lines o high-street

shopping centers abroad. It trans ormsthe erstwhile mill district into a retailand commercial hub by building HighStreet Phoenix (HSP) on the remnantso the old mill. Indias rst bowlingarena and premier leisure centre TeBowling Co opens shop, along withFire and Ice, a popular night club.


of HSP

Evolution


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11Annual Report 2014

2001 -2010 2001 Big Bazaar, the largest hyper

market chain in India, opens within theHSP compound.

2007 HSP joins hands with Hong Kong-based, Shangri-La Hotels and Resortsto build a 5-star luxury hotel atop thedestination mall, going with PMLs strategy

to develop retail-led mixed-use assets. 2008 Skyzone launched within the

HSP Complex with premium nationaland international brands. Courtyard, aneclectic ood court, was launched with various eating joints. Te remaining parto the mall was christened Main StreetBoulevard, housing ormal and casualclothes, premium accessories and jewellerybrands.

2011 -2014 2011 Grand Galleria Connect is created by

carving out a small portion o area rom BigBazaar, enhancing the brand-mix, connectivityand license ees at the centre. Big Bazaar, in turnbrings a gourmet store - Food Hall @ Palladium

or the rst time in India.

2012 Five-star business and leisure hotel,Palladium Hotel commences operations atopthe Palladium Mall trans orming the HSPComplex into an iconic retail-led mixed usedestination with both assets providing its clientelea wholesome experience o leisure, entertainmentand shopping.

2013 o increase the aesthetics, the entrancewas ully re urbished and made grander withwell-designed and brightly-lit canopies. Te GoPhoenixing Loyalty Programme was launchedenabling customers to earn reward points onpurchases and redeem them against vouchers.

2014 HSP Complex clocked an average ticketsize per customer o Rs. 700, as total oot alls jumped to 19.5 million. Te monthly average

oot all jumped to over 1.6 million vis--vis1.4 million in the previous year. Key categoriesthat were added were exotic chocolates (Royce)and home decor & appliances (Maspar, Villeroy& Boch and Harman Kardon).

2009 Palladium, a premium 0.3 Mnsq. f. mall was launched within the HSPComplex, with a host o internationallabels such as Zara, Burberry, Diesel,Canali, among others, and high-qualitygourmet and entertainment options.

2010 Grand Galleria was added to theComplex, spread over two oors, hostingbrands at the higher end and also addeda 7-screen multiplex. Occupancy levels atthe Palladium Mall and the rest o HSPcomplex rise to over 90%.



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As part o our strategy, we seek to produce outstanding long-term returns or our shareholders through capital appreciationand income growth by developing and managing retail assets,acquisitions and disposals and partnering with marquee investors.

Developing new properties orlong-term investment;

Maximising risk-adjusted returns through optimal nancing andpartnership with others;

Superior creativity in the designs o our assets;

Sound execution o projects;

Producing the highest standards o quality;

Enhancing property returns through active asset management;

Creating and acquiring exceptional assets with strong cash ows rom

suitable tenure pro les and good growth potential; Pro ound understanding o Indias

urban markets and its consumers;

Capitalising on existing clientrelationships;

aking on challenges arising in the property market and seizing valueopportunities; and

Excellence in work ethics andcorporate governance.

Our Strategy

Features

Our BusinessModel


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R E T A I L

R E S I D E

N T I A L

D e v e l o p

a n d s e l l

R e s i d e

n t i a l A s s e

t s i n

T i e r - 1

C i t i e

s A D V

I S O R Y

O w n , D e v e lo p a n d

M a n a ge R e t a i l A s s e t s

M a n a g e D

e v e l o p

m e n

t , A d

v i s o

r y

a n d

A s s

e t M

a n a g

e m e n

t

V e r t i c

a l A

c r o s

s P r o j e

c t s

C O M M

E R C I A

L

A s s e t

s i n T i

e r - 1

C i t i

e s

S e l l C

o m m

e r c i a l

D e v e l o

p a n d

H O S P I T A L I T Y

A s s e t s

H o s p i t a l i t y

O w n a n d D e v

e l o p

I N V E S T M

E N T

I n o r g a n i c

E x p a n s i o n

P o t e n t i a l

A s s e t s f o r

I n v e s t i n H i g h -


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14 Te Phoenix Mills Limited14 Ph enix Mills imited

Projects Delivered So Far

Projects Under Construction

MUMBAI

MUMBAI

PUNE

BENGALURU

CHENNAI

AGRA

PUNE

BENGALURU

CHENNAI

Te Phoenix Mills Limited(PML) consolidated its marketleadership as the owner,developer and managero iconic, large- ormat,prime, retail-led mixed use

assets in the city-centres oIndia, providing options orshopping, entertainment and

ne dining, complemented bylarge commercial or residentialassets within the contiguousland parcels.

PML continues with thedesign, planning andconstruction activitieso its other projects residential and commercialproperties which orm apart o the mixed-use asset

development on the sameland parcels where PhoenixMarketcity malls havebeen built across our cities Mumbai, Bengaluru,Chennai and Pune.

Asset Summary

POLE Position


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15Annual Report 2014 15nual R eport 2014

HSP & PALLADIUM MALLLeasable Area: 0.9 Mn sq. f.Consumption: ` 13,276 MnAvg. License Fees: 220 ps pm

AR GUILD HOUSESaleable Area: 0.76 Mn sq. f.Launched in: Q1-FY2013

PALLADIUM HO EL Keys: 335 Rooms & Suites and46 Serviced ApartmentsAvg. Occupancy: 46%

PHOENIX MARKE CI Y, KURLALeasable Area: 1.14 Mn sq. f.Consumption: ` 4,375 MnAvg. License Fees: 84 ps pm

PHOENIX PARAGON PLAZA Saleable Area: 0.42 Mn sq. f.Launched in: Q1-FY2013

PHASE III Saleable Area: 0.28 Mn sq. f.Launch in: FY2016

CEN RIUM (15 LBS) Saleable Area: 0.28 Mn sq. f.Area Sold: 0.28 Mn sq. f.Sale Value:` 2,450 MnCollection:` 2,256 Mn

MALLS

MALLS

COMMERCIAL ASSE S

COMMERCIAL ASSE S RE AIL CUMCOMMERCIAL ASSE S

HOSPI ALI Y ASSE S

HOSPI ALI Y ASSE S

RESIDEN IAL ASSE S

PHOENIX MARKE CI Y Leasable Area: 1.13 Mn sq. f.

Consumption: ` 6,188 MnAvg. License Fees: 71 ps pm

PHOENIX MARKE CI Y Leasable Area: 0.98 Mn sq. f.Consumption: ` 6,552 MnAvg. License Fees: 73 ps pm

PHOENIX MARKE CI Y Leasable Area: 0.98 Mn sq. f.Consumption: ` 6,922 MnAvg. License Fees: 98 ps pm

EAS COUR Saleable Area: 0.25 Mn sq. f.Area Sold: 0.24 Mn sq. f.Sale Value:` 1,495 MnCollection:` 1,465 Mn

FOUN AINHEAD Saleable Area: 0.35 Mn sq. f.Launch in: Q4-FY2014

ONE BANGALORE WES ,KESSAKUSaleable Area: 3.1 Mn sq. f.Launched in: Q2-FY2013

OBER HAUS & PHASE IISaleable Area: 1.0 Mn sq. f.Launch in: FY2015

HE CRESSaleable Area: 0.46 Mn sq. f.Launched in: Q1-FY2012

PHASE IISaleable Area: 0.41 Mn sq. f.Launch in: FY2015

PALLADIUM CHENNAI Leasable Area: 0.21 Mn sq. f.

COUR YARD BY MARRIO Keys: 194Expected Delivery: Q4-FY2015


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17Annual Report 2014 17Annual Report 2014

RETAIL & COMMERCIAL

HOSPITALITY

RESIDENTIAL

MIXED USE (BARE & EWDPL)

AGRA> Courtyard by Marriott

BAREILLY> Phoenix United

NANDED> reasure Bazaar

CHENNAI> Phoenix Marketcity

CHENNAI> Te Crest

BENGALURU> Phoenix Marketcity

JAMMU & KASHMIR

HIMACHALPRADESH

PUNJAB MohaliUTTARAKHAND

HARYANADelhi

Agra BareillyLucknow

UTTARPRADESH

SIK KIM

ARUNACHALPRADESH

ASSAM

MEGHALAYANAGALAND

MANIPUR

TRIPURA MIZORAM

RAJASTHAN

Udaipur

GUJARAT Ujjain

MADHYAPRADESH

Jabalpur

BIHAR

JHARKHANDWEST BENGAL

CHATTISGARH

Raipur ORISSABhilai

NandedMAHARASHTRAMumbai

Pune

GOA

KARNATAKA

ANDHRAPRADESH

BengaluruChenn ai

TAMIL NADU

LUCKNOW> Phoenix United

INDORE> reasure Island> Central

INDORE> reasure own

(Rangawasa)

MUMBAI> High Street Phoenix> Palladium

> Phoenix House> Phoenix Marketcity > Centrium> Art Guild House> Phoenix Paragon Plaza

PUNE> Phoenix Marketcity > East Court

KERALA

MUMBAI> Palladium Hotel

PUNE> Fountainhead

Indore

BENGALURU> One Bangalore West> Kessaku> Ober Haus> Phase II White eld


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CorporateInformationBoard o DirectorsMr. Ashokkumar Ruia Chairman & Managing Director

Mr. Atul Ruia Jt. Managing Director

Mr. Kiran Gandhi Whole - ime Director

Mr. Shishir Shrivastava Group CEO & Jt. Managing Director

Mr. Pradumna Kanodia Director - Finance

Mr. Amit Kumar Dabriwala Independent Director

Mr. Amit Dalal

Independent DirectorMr. Sivaramakrishnan Iyer Independent Director

Mr. Suhail Nathani Independent Director

Mr. Gautam Nayak* Independent Director

Registrar And Sharerans er Agent

Link Intime India Private Limited,C-13, Pannalal Silk MillsCompound, L.B.S. Marg,Bhandup (West),Mumbai - 400 078.

el. No.: 022-2596 3838Fax No.: 022-2594 6969

AuditorsM/s A. M. Ghelani & Company Chartered AccountantsM/s Chaturvedi & Shah Chartered Accountants

BankersBank o BarodaBank o IndiaBarclays Bank Canara BankCentral Bank o IndiaCorporation Bank HDFC Bank IndusInd Bank Saraswat Bank Standard Chartered BankState Bank o IndiaYES Bank

Company Secretary Ms. Sonia Gaur

Registered Office462, Senapati Bapat Marg,Lower Parel,Mumbai - 400 013.

el: 022 - 2496 4307Fax: 022 - 2493 8388Website : www.thephoenixmills.comEmail:in [email protected]

Corporate OfficeShree Laxmi Woollen Mills Estate,R. R. Hosiery Bldg.,Off. Dr. E. Moses Rd.,Mahalaxmi,Mumbai - 400 011.* as on 31st March, 2014 POLE Position


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PHOENIX MARKE CI Y, CHENNAIBest Retail Project o the Chennai city CNBCAwaaz Real Estate Award 2013

Most Admired Shopping Centre o the Year CMO Asia Shopping Centre and Mall Awards2013

HIGH S REE PHOENIX &PALLADIUM

Indias Best Existing Neighbourhood ShoppingMall, 2013-14 by Estate Avenues

Mr. Rajendra Kalkar, Sr. Centre Director (West),has been acclaimed as one o the op 50 Most

alented Retail Pro essionals o India

Most Admired Shopping Centre o the Year,Socially Responsible By Asias Shopping Centre &Mall Awards 2013

Images Shopping Centre Awards 2013 MostAdmired Shopping Centre o the Year MetroWest

Retail Development or India, 2013-14 by Asia-Paci c Property Awards

Realty Plus Excellence Awards, 2012 (West) ,Developer o the year awarded to High StreetPhoenix

Property Awards Dec 13, 2011 Mall Developero the Year awarded to Te Phoenix Mills Ltd.

Images Shopping Centre Awards 2010 - Most

Admired Shopping Centre Launch o the Year(West) Palladium

PHOENIX MARKE CI Y, PUNE Images Shopping Centre Award (ISCA) or the

most admired Shopping Centre 2014

Shopping Centre o the year at the CMO AsiaRetail Excellence Award 2014

Images Most Admired Shopping Centre o theYear at Images Shopping Centre Awards 2013

IMAGES Most Admired Shopping CentreMarketing & Promotions O Te Year at ImagesShopping Centre Awards 2013

Best retail project in Pune at the CNBC AWAAZReal Estate Awards 2012

PHOENIX MARKE CI Y, KURLA PMCK was ranked amongst Indias best existing

neighbourhood shopping mall 2013-14held by SSMedia House organized by Estate Avenues @ NewDelhi

PMCK Received Award or Best Tematicdecoration held by Asia Shopping Centre & MallAwards organized by CMO Asia Council at ajLands End Mumbai

PHOENIX MARKE CI Y,BENGALURU

Best Retail Project o the Bengaluru City ByCNBC Awaaz Real Estate Award 2013

Most Admired Shopping Centre MarketingCampaign o the Year By CMO Asia ShoppingCentre and Mall Awards 2013

Most Admired Shopping Centre Launch o theYear(South) ISCA Images 2011-2012

ONE BANGALORE WES Highly Commended Developer Website India,

2013-14 by Asia Paci c Property Awards

HE PHOENIX MILLS L D. Developer o the Year West Zone, 2012 by Realty

Plus Excellence Awards

Realty Plus Excellence Awards, 2011 (West),Developer o the year Retail awarded to TePhoenix Mills Ltd.

7th Reid & aylor Awards or Retail Excellence,2011 Jurys Special Emerging Retailer o the Year(Mall), presented to Te Phoenix Mills Ltd.(Palladium)

Awards &Recognition


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Mr. Amit Kumar Dabriwala Independent Director

Mr. Amit Kumar Dabriwala graduated romthe Calcutta University. As a Promoter Directoro United Credit Securities Limited (UCSL), amember o the National Stock Exchange,Mr. Dabriwala has been associated with the capitalmarkets since 1996. He was also responsible orsetting up the Mumbai branch o UCSL. In 2004, he

promoted JNR Securities Broking Pvt. Ltd. which isa member o the Bombay Stock Exchange. Troughthe United Credit group companies, he is alsoinvolved in real estate development, leasing andhire purchase.

Mr. Amit Dalal Independent Director

Mr. Amit N. Dalal has been the Managing Directoro Amit Nalin Securities Pvt. Ltd. since October1997 and also serves as its Director o Research.Mr. Dalal has been the Executive Director oInvestments at ata Investment Corporation Ltdsince January 1, 2010. Mr. Dalal earned experienceas an Investment Analyst in USA or 2 years. He

obtained a Bachelors Degree in Commerce romthe University o Mumbai. He also completed aPost-graduate Diploma in Business Management

rom the University o Massachusetts and obtaineda Masters Degree in Business Administration romthe University o Massachusetts, USA.

Mr. Sivaramakrishnan Iyer Independent Director

Mr. Sivaramakrishnan Iyer is a quali ed CharteredAccountant based in Mumbai. He is a partner oPatel Rajeev Siva & Associates which specialisesin corporate nance and advises companieson debt and equity und raising, mergers andamalgamations and capital structuring or new

expansion projects. Te rm also carries out duediligence work or various other companies.

Mr. Suhail NathaniIndependent Director

Mr. Suhail Nathani graduated rom the MumbaiUniversity with a degree in Commerce. He holds aMasters degree in law rom Cambridge Universityand an L.L.M. rom Duke University in the United

States. Mr. Nathani is also admitted to the NewYork State Bar and the U.S. Court o Internationalrade. He is a ounding partner o Economic Laws

Practice, a law rm in Mumbai. He practices in theareas o Private Equity, Competition, International

rade and General Corporate matters.

Mr. Gautam Nayak*Independent Director

Mr. Gautam Nayak is a practising CharteredAccountant since 1986 and oversees internationaltaxation and nancial advisory at one o Mumbaisleading accountancy rm - CNK & AssociatesLLP ( ormerly known as Contractor, Nayak &Kishnadwala). Mr. Nayak served as the Presidento the Bombay Chartered Accountants Society(BCAS) in 2004-05. Currently, he is the Chairman

o the axation Committee o the BCAS and a

member o the Direct axation Committee o theIndian Merchants Chamber. He is also a trustee o various employee trusts o Citigroup. He regularlydelivers talks and presents papers at variouseducational institutions, seminars and con erencesacross India. Mr. Nayak joined the PML board asa Non-Executive Independent Director in January2013.

* Resigned w.e. . 28th May 2014


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Management TeamMr. Amit KumarAmit kumar has over 17 years o experience in strategic Planning, new set-ups, operations Management,Business development & relationship Management. At Phoenix, he holds the position o Centre director

or Kurla Marketcity. He is responsible or managing the operations o the property and or achieving thebottomline pro tability o the Centre.

Mr. Mayank Ruia

Mayank heads the Residential business at Phoenix. Prior to PML, he was associated as Vice Presidentwith Everstone Capital Advisors. He was involved in international assignments with UBS InvestmentBank, Sagent Advisors and American Capital Strategies, New York.

Mr. Dipesh Gandhi

Dipesh has over 15 years o experience in business development, market research, planning and organisationset-up. At Phoenix, he holds the position development director and is responsible or the liaising unction othe group.

Mr. Haresh Morajkar

Haresh has over 20 years o experience with strong business management skills and pro oundexperience in the eld o Human resource Management and general Management. He currentlyheads the HR, Admin and I unctions o the group, playing a key role in strategic HR planning,organisational development, training and per ormance management.

Mr. Prakash K. Mantripragada

Prakash kumar works with the organisation as VP Projects. His is based at Bengaluru and isresponsible or the overall execution o one Bangalore West. He is a Civil Engineer and has morethan 23 years o experience in various organisations such as Mahindra Construction Co. ltd., sterlingholidays resorts and unicorn holding (P) ltd. he was last associated with royal orchid hotels as generalManager Projects.

Mr. Rajiv MallaRajiv has over 30 years o experience with international hotels & resorts. He has extensive experiencein operations, sales & Business development and renovations in the hospitality industry. He is also amember o various travel & tourism associations as an active committee member. he has an excellenttrack record o managing large assets and streamlining work ow.

Mr. Rajendra Kalkar

Rajendra has over 20 years o experience across various elds with expertise in property management.He is the senior Centre director or high street Phoenix and is responsible or operations, leasing,retailer Mix, legal, Customer relationship, Commercial & Marketing unctions and bottomlinepro tability o the Centre. He also oversees the operations o the Pune mall.

Mr. Rajesh Kulkarni

Rajesh has over 20 years o experience in driving the development, planning and implementation othe project rom an architectural perspective. He is the director o the Project delivery vertical andreceives a stead ast support rom a team o experienced architects, engineers and other technicalpersonnel in the design, project co-ordination and delivery or all the prestigious projects o thePhoenix group.


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Mr. Noel Vessaoker

Noel is a retail management pro essional with extensive experience in sales, business developmentand leasing. At Phoenix, he holds the position o Centre director Chennai and is responsible

or managing the operations o the property and or achieving the bottomline pro tability o theCentre.

Mr. P. Vidya Sagar

Vidya has over 20 years o experience across various industries in the areas o Corporate Law,M&A, Legal, Compliance and Corporate Governance. He heads the Corporate Affairs and legal

unctions o the group and his responsibilities include managing the secretarial, corporate and legalaffairs.

Ms. Rashmi Sen

Rashmi has over 15 years o experience in sales and leasing. At Phoenix, she holds the position ogroup head leasing. She is responsible or developing and implementing the right retailer mix andretail leasing plans or all Phoenix Marketcity malls and also other malls o the Phoenix group.

Ms. Sangeeta Vernekar

Sangeeta has over 20 years o experience and has been a key member o some o Indias award-winning and success ul shopping centers. At PMl, she heads the Retail Excellence initiative,supported by a team o retail specialist pro essionals. Her role is to service clients on mall design,architecture, signage, lighting and retail.

Mr. Shashie Kumar

Shashie has over 18 years o experience in the eld o Retail, real Estate/In rastructureManagement, Market research and Marketing services. He is currently handling the role o Centredirector or Phoenix Marketcity, Bengaluru. His key role is to ensure the success ul implementationo pre-launch activities such as marketing, public relations and retailer transition. He is alsoresponsible or managing the operations o the property and or achieving the bottomlinepro tability o the Centre.

Mr. Shrikant Kambli

Shrikant is working with the Phoenix group as VP Projects (Kurla & Pune). He is responsibleor overall execution o both the projects. He has done his B. E. Civil and diploma in Business

Management and has over 18 years o experience in various organisations such as Sabve RohiniConstructions Pvt. ltd. and hotel horizon ltd. He was last associated with Pancards Clubs ltd. asProjects - head.

Mr. Romil Ratra

As Group Director o Hospitality Romils role encompasses all o PMLs Hospitality interests. Hehas close to 2 decades o experience in hospitality operations, strategy and building and runninga business as an entrepreneur. Prior to Phoenix Romil was Chie Executive or the Graviss Group,a diverse corporation with holdings in Food and Hospitality in India and the Middle East an hassuccess ully launched over 18 hospitality concepts.


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FinancialIndicatorsKey

The Phoenix Mills Limited con-tinued to display a consistentoperating performance over the

PAT having grown at a CAGR -

tively.

operational performanceshowed a remarkable growthduring FY2014. This was pri-marily driven by strong growthin the recurring rental income

sales recognition in variousresidential and commercial

projects and the acquisition ofmajority stakes in all the ongo-ing key projects. This resultedin a YoY growth of 208% in

in EBITDA and 53% in its PAT.

Income from Operations(` mn) Consolidated

EBITDA (` mn) Consolidated

CAGR (5 years)71%

1,230.02,101.7

3,945.1 4,699.1

14,485.2

FY10 FY11 FY12 FY13 FY14

CAGR (5 years)62%

775.01,405.6

2,114.1 2,631.8

6,784.3


POLE Position


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PAT (Post Minority Interest)(` mn) Consolidated

Networth(` mn) Consolidated

Dividend(` Per Share)

EPS(` Per Share) Consolidated

CAGR (5 years)11%

619.8

841.9

1,056.3

841.5

1,284.6


4.3

5.8

7.3

5.8

8.9


1.2

FY10

1.8

FY11

2.0

FY12

2.2

FY13

2.2

FY14

16,048.4

FY10

17,105.3

FY12

17,686.5

FY13

17,237.4

FY14

16,700.0

FY11


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oday, the juncture at which we stand has been theresult o years o meticulous planning and concertedefforts. With invaluable contributions rom ourbusiness associates and partners, we have arrived a ullcircle in demonstrating our capabilities in developingretail-led mixed-use destination assets.


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In terms o nancial per ormance, we continued to display aconsistent operating per ormance. Over the last ve years our Income

rom Operations, EBI DA and PA grew at a ve-year CAGR o71%, 62% and 11%, respectively. Amidst the backdrop o challengingmarket conditions, our consolidated revenues in FY2014 increasedby 208% YoY, to reach Rs. 14.5bn, while our EBI DA increased by162% YoY to Rs. 6.8bn or the same period. Our Net Pro t afer axand Minority Interest increased by 53% on a YoY basis to Rs. 1.3bn orthe nancial year under review. A quantum leap in our top line andbottom line numbers has been primarily driven by a strong organicgrowth in our recurring rental income rom the operational malls;onset o sales recognition in various residential and commercial

projects and the revenue recognition at the consolidated level resultingrom acquisition o additional stakes giving us majority position in our

ongoing key projects. As always, we continued to reward our investorswith a healthy dividend o Rs 2.20 per share.

Te Growing Consumption CultEven as the global outlook continues to be weak, Indias economyhas become the 10th biggest in the world in terms o Gross DomesticProduct. Although India has seen a slowdown in economic growth inthe recent years, our GDP has begun to show an improvement havingexpanded by 4.7% in FY2014, up rom 4.5% in FY2013. With Indiahaving become the 12th largest dollar economy, it is also on its wayto become the 5th largest consumer market by 2025, according tothe McKinsey Global Institute (MGI). Te huge Indian middle classis emerging as the big orce. Aggregate consumption in real terms isexpected to grow rom Rs 17 trillion today to Rs 70 trillion by 2025.Our consumption level is seen equalling that o Italy by 2015 andGermany by 2025. Apart rom metro and mega cities, ier II and IIIcities are also beginning to look attractive.

Consumerism is slowly getting embedded into the Indian cultureand is undoubtedly one o the dominant economic themes o the21st century. In India, consumption patterns are already changing.As disposable incomes grow, there is an allure o having the coolest

ashions. An area that is growing strongly in this category is that o theluxury goods market, which promises to take aspirational spending

Consumption at ourretail assets shot upapproximately 60%during the year,re ecting the strongconsumer affinityour assets enjoy.


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to its natural conclusion. As personal incomes grow, we oresee a massivegrowth in the number o consumers and their purchasing power.

Creating World-class Assetsoday, we are setting the trend in our space. Our malls are testimony to

our vision in creating outstanding retail assets and we are becoming quitegood at attracting consumers to our various malls. All our city centricmalls continue to post steady growth in most parameters, be it oot alls, vehicular entry, consumption, trading density or sales velocity. AlthoughIndias economic growth slowed down in the past years, consumptionat our malls has risen rather well. In our hospitality vertical too, ourPalladium Hotel launched in FY2013 has witnessed a steady ramp-up inoccupancy, success ully establishing itsel as one o Mumbais ewluxury hotels.

At this juncture, we are happy to have grown our base o happycustomers. I am particularly delighted to know o the millions o satis edcustomer experiences we have been able to deliver. During FY2014,consumption at our malls have shot up approximately 60% on a YoYbasis, re ecting the strong affinity our assets receive rom consumers.Our unique retail destinations have reiterated their leadership as a multi-development concept, marking the convergence o shopping, dining,global mix o leading retail brands, unique entertainment concepts,art and architecture. As a matter o act, we take immense pride inasserting that our customers choose our Malls as the rst port o call

or shopping, entertainment and F&B. We are consistently ranked as themost pre erred place where customers would like to spend their time.We are standing apart rom the rest, enabling us to attain a pole positionin the marketplace.

Our New LaunchesDuring the year, we relaunched Orion Park as Art Guild House withinthe premises o Phoenix Marketcity, Kurla. Since the time we startedselling the units at Art Guild House, the property has witnessed a priceappreciation o 20%. Moving to the residential part o our port olio, weattained a leadership position in One Bangalore West in terms o sales velocity, increase in selling prices, product quality, momentum in projectconstruction and stellar project execution. We are proud to share with


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you that the over-whelming response to our Bangalore residentialproject led to the launch o Kessaku, the luxury residential towersat our Bangalore West site. Trough these towers, we are excitedabout offering customers the concept o bunglow living and theconvenience o gated-community living.

Continuing on our residential port olio, our Fountainhead project

in Pune was launched in February this year and I am glad to say that10% o the inventory has already been sold. Ober Haus, which is therst phase o the residential project in Bangalore East, is currently in

advanced stages o planning and will be launched this calendar year.In the retail segment, construction at Phoenix Paragon Plaza at Kurlais almost complete. With a mix o retail and high-street brands, theproject complements Phoenix Marketcity at Kurla per ectly and is onits way to become a local high-street market. Palladium Chennai, theunique luxury and li estyle retail mall adjoining Phoenix Marketcity,Chennai, is aimed at capturing the cityscrme-de-la-crme dedicated

to uber-luxury brands. Te luxury mall, which will be the rst o thekind or the city o Chennai will be completed in the next 12 months.

We are proud toshare with youthat the over-whelming responseto our Bangaloreresidential projectled to the launch oKessaku, the luxuryresidential towers atour BangaloreWest site.


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Our Marketcity ranchise has been both path-breaking and iconic in the Indian context. Tey haveevolved out o our obsession with quality. Weve

attracted superior quality retailers; we maximised thespend on captive oot alls within a destination; weveproduced a more wholesome social abric to becomehighly enjoyable destinations.



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Youve been credited or being the visionary o this company.Where have you reached in 2014 with your vision?Tats a great question and to answer it I must throw light on our journeyand place our position today in perspective. We have always believed thatto achieve something extraordinary, one has to be an innovator, a pioneer,a lateral thinker. From a legacy o once being a blue-chip textile mill in thesuburbs o old Bombay, we success ully reinvented ourselves into a highly visited retail-led destination by truly understanding the needs o modernMumbai. We became early believers in the consumption story o India andit was rom this out-o -the-box thinking that High Street Phoenix (HSP)was born - out o a need to diversi y away rom a mills business in its twilightyears. In doing so, we became one o Indias rst mixed use consumptioncentres, covering 3.0 million sq. f. o retail, hospitality, commercial, parkingand residential complexes. I am told by many that it is regarded as Mumbaispremier li estyle destination today.

With this experience behind us, we were even more convinced that Indiasconsumption story was being rede ned by changing li estyle and spendingbehaviour o urban India. In 2009, we introduced what was probably Indias

rst premium brands mall - Te Palladium, setting new standards in exclusiveand luxury retail experience. oday, both HSP and Palladium together muster

oot alls o 20 million a year!

What ollowed was indeed unprecedented. Even be ore delivering Palladium,we had embarked on a journey o concurrently establishing 4 Marketcities- our home-grown mixed-use ormat. With parallel delivery o large-scaleprojects, which is a big eat in itsel , we showcased our capabilities to themarketplace. With all the 4 Marketcities delivered by FY2013 and showing a

ull years operating results in FY2014, we believe that we are at the ore rontin owning and operating retail-led mixed-use destination assets. We alsothink that our Marketcity ranchise has been both path-breaking and iconicin the Indian context. Tey have evolved out o our obsession with quality.Weve attracted superior quality retailers; we maximised the spend on captive

oot alls within a destination; weve produced a more wholesome social abricto become highly enjoyable destinations.

A Fireside Chat with Atul Ruia - Jt. Managing Director


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Weve indeed come a long way since we started out. In act, I wouldgo so ar in saying that today, with FY2014 behind us, I believe that

we have attained the Pole Position as a player within the consumptionbased industry o India.

Can you explain what you mean by Pole Position?Sure. In the literal sense, having a pole position means that you areadvantageously placed amongst your peers or a competitive eventabout to take place. But one must earn the pole position by provingthe best per ormer in earlier event runs. Similarly, I believe that we toohave earned our Pole Position by accomplishing several eats to date.

Firstly, we have been witnessing consistent oot all growth and

impressive demand rom our retailers. We are currently home to 1,900stores o all shapes and sizes, comprising o leading international anddomestic brands. We have several leading retail brands that are on thewaiting list or space, giving us the opportunity or a healthy brandchurn.

Secondly, we have positively contributed to the consumptionlandscape in each city we have a presence in. We are now marketleaders in important ier 1 cities, in terms o aggregate oot alls andgross sales at each o our malls. Even in terms o the total F&B spendacross all our locations, our numbers may possibly rival even somewell-respected F&B ocussed companies in India.

Tirdly, our malls are considered to be amongst the most productiveshopping centres in their respective locations, with our salessurpassing all other malls in the cities we are located in. What setsour assets apart is the authentic environment. Tey are an idealblend o shopping, eating and entertainment shoppertainment.Developed in contemporary style, our malls present a high-qualityshopping environment with a bouquet o value propositions value

or time, value or quality and value or experience. Tat is probablywhy consumers choose our malls as pre erred destinations to spendtheir time. As a result o this sheer success o our oot alls and trade

density numbers, we are able to earn better than normal premiums onour rentals. I I were to extrapolate our HSP experience across all ourMarketcity properties, I anticipate that our rental revenues may doubleevery three to our years.

Fourthly, in FY2014 alone, we witnessed a surge o approximately 60%in consumer spend across all malls on a year on year basis. I suspectthat such aggressive growth numbers may continue over the next ew

I I were toextrapolate our HSPexperience acrossall our Marketcityproperties, Ianticipate that ourrental revenues maydouble every threeto our years.


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years and in time, we may see our total consumption at our malls evenrival the top-lines o some FMCG companies in India. Anticipating

this outcome, we were ortunate to have been able to participate inrevenue share models with our retailers rom the very early stages,aligning our interests with those o our licensees. Going orward,as overall consumption rises towards the peak potentials o ourmalls, the revenue share component on top o our license ees couldbe a valuable part o our total top and bottom-line mix. Tis mayeventually differentiate us rom other typical real estate developmentcompanies and link our business model to the potential upside ogrowing consumption patterns o target micro-markets.

Fifhly, when it comes to our various commercial and residentialprojects currently under construction and recently launched, each oour projects are making their indelible mark in their respective micro-markets in terms o quality, speed o construction, sales absorptionand price escalations. Our creativity and conviction in developingthese alternative asset classes on a build and sell model is nothingshort o the kind o energy we placed behind our Marketcities - and Iam thank ul that the results are now beginning to show. Being in poleposition here also allows us to execute our plans clinically and as perplans with little deviations in our expectations and realisations. Tepro ts generated by our various projects should allow us to pare downthe debts o our SPVs and help create an even healthier balance sheetat a consolidated level. As our revenues rom our rental assets keep

increasing, our overall leverage and associated nance costs will keepreducing to shore up our reserves even aster.

oday, we can say in the true sense that weve arrived and we arecom ortably seated in a pole position or our journey ahead.

Going orward, how do you plan to leverage your PolePosition - as you put it?Consumption is one o the central economic themes o 21st centuryIndia. With a large Indian middle class emerging as the big orce andconsumerism getting embedded into our culture, we are clearly more

o a consumption play than a pure real estate company.

Our pole position has given us certain privileges that are typicallyenjoyed in a sellers market. With our malls offering exclusivity andallure to the top-end o the market, we tend to earn the bene t obeing pole sitters. Our retail malls have become highly sought aferdestinations by the top-end national and international brands. Havingcreated prime retail destinations, we have the ability to attract high-

With the hugeIndian middleclass emergingas the big orceand consumerismgetting embeddedinto our culture,we are clearly moreo a consumption

play than a pure realestate company.


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the one-o -a-kind Phoenix experience. With respect to our Kurlaproperty, we are leaving no stones unturned and are we are becoming

more visible in our promotions within the greater Mumbai area.How well placed are you in terms o Managementbandwidth and the quality o your employees?Great question. In act I believe that our people are going to be the

nal rontier in leveraging our pole position going ahead. Wevealready got substantial experience within a short span o time underour belt. Tis gives us a talent pool thats seen multiple challengesand solutions. Trough our in-house services vertical - MarketcityResources Private Limited, we have carved a reputation as a success ulproperty developer, largely due to our execution and managementcapabilities, which we have demonstrated with the success ul andtimely completion and the quality o operation and management oour various existing and new properties. We believe that we are oneo the ew developers in India that has the range o end-to-end skillsrequired to develop alluring properties.

We also have an experienced, quali ed and dedicated managementteam, many o whom individually have over 15 years o experience intheir respective elds. We believe our operational properties illustrateour managements capability to deliver high quality projects in ahighly competitive business, secure nancing and execute complexprojects on time. All o our properties have attracted importantanchor tenants and obtained signi cant nancing rom a number oinstitutional lenders. In addition, our brand name and reputation orproject execution have assisted us in recruiting and retaining someo the best talent in the business. We also provide our staff with acorporate environment that encourages responsibility, autonomyand innovation. We believe that the experience o our managementteam and its in-depth understanding o the real estate market in Indiawill enable us to take advantage o both current and uture marketopportunities.

I believe that ourpeople are going tobe the nal rontierin leveraging ourpole positiongoing ahead.Weve already gotmassive amounts oexperience within a

short span o timeunder our belt.


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Marrying ContemporaryStyle with Architecture

Envisioned as one o the most contemporary buildings in

Mumbai, Art Guild House de nes the nest environs o businessin Mumbai a re ned superiority craved by all, but achievedby the best. Tis six-storey edi ce is a blend o modern designand world-class acilities and has emerged as a benchmark orcorporate standards, providing a unique business edge on the

international and domestic corporate stage.

Art Guild House



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Art Guild House is a state-o -the-art commercial complex with approximately0.76 million square eet saleable area. It is being developed as a part o thePhase III o Phoenix Marketcity, Kurla, one o Indias single largest mixed-use development project. Providing a unique blend o work and leisure, thepremise eatures a ully-equipped gymnasium, a business centre and open airca es. Attention to details such as lighting, external development and interiordesign brings out the best in this commercial development.

Opulence Personi edTe highly-specked building has been enveloped by a aade a re ectiono the contemporary style o architecture. It offers world-class amenities,grand atriums and lobbies, two levels o basement parking and six levels osprawling office spaces scalable rom 900 square eet onwards, meeting thediverse needs o growing companies. Te project offers sprawling oor plateso more than 150,000 square eet, with a landscaped terrace ca . Te projectoffers world-class office acilities backed by state-o -the-art security systems.



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Grand AmbienceOffices at the lower level o Art Guild House have light wells integratedin the design enabling optimum light usage. Te eature enables day-lightinside, a unique eature amidst the newly-constructed commercial spaces.Te lobbies will house iconic orms o dynamic and permanent art that will visually enhance the space, and liven up every corner o the Art Guild House.Prede ned areas will have renowned art galleries hosting art exhibitions.Tey will showcase outstanding work, acting as a plat orm or meaning ulexchanges between emerging artists and the business world.

Rising demand rom CorporatesArt Guild House has attracted signi cant interest rom several multinationalcorporations and reputed Indian business houses keen to make PhoenixMarketcity, Kurla as their new abode. Te premises hosts some o the mostelite and premium head-offices o Indias largest corporate houses.Offering a unique opportunity to work alongside the sharpest minds inbusiness and nance, the building has emerged as a benchmark or moderncorporate standards.

Art Guild House hasattracted signi cantinterest rom severalmultinationalcorporations andreputed Indianbusiness houseskeen to makePhoenix Marketcity,Kurla their newabode.

Art Guild House


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Current ProgressAlmost 64% o the building construction work atArt Guild House is complete. RCC work is currentlyin process and slab construction has reached the3rd oor, which will nish by the second quartero FY2015. With construction on in ull swing, thebuilding will get completed by mid o 2015.

Go GreenTe Phoenix Mills Limited (PML) assumes theresponsibility o environmental protection and

sustainability. Te commercial premises comprisesenergy-efficient equipment to reduce environmentalimpact. It is a LEED Gold-certi ed green buildingmatching the current standards o design andscalability. Every aspect o the building was plannedand executed on a scale exempli ying modernitycombined with ecological consciousness. Te buildingencapsulates the philosophy o urban needs gettingbalanced by natural eatures.

Art Guild Houseis a LEED Gold-certi ed greenbuilding matchingthe currentstandards o designand scalability.

Te Green Building also eatures an IntegratedBuilding Management Systems (IBMS), rain waterharvesting system, a sewage treatment plant and greenroo ng systems to enhance air-conditioning efficiencyat the terrace level. Te Elevator Management Systemsprovide the highest standards o sa ety and reducedlevels o redundancy.


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A blend o thought ul layouts, contemporary designs,architectural pedigree, impeccable location and anuncompromising commitment to com ort elevates

gracious living at Fountainhead, Pune to a new level.


ElevatingGracious Living


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Pune has radically trans ormed as a metropolitan city and ast gaining statusas the 2nd Silicon Valley o India, afer Bengaluru. Te citys growth has beenascending constantly in the past two decades. Being a magnet or a migranteducated work orce, with a growing cosmopolitan population and the largestsettled base o expats, the demand or luxury homes in li estyle housinglocations has increased. Te upwardly mobile and li estyle driven class is thekey demand driver or high quality housing.

In February 2014, Phoenix group launched Fountainhead, a luxuryresidential project sitting atop Phoenix Marketcity, Pune. Being a part o

the integrated mixed-use development asset with shopping, dining andentertainment options, Fountainhead delivers a holistic li estyle and leisureexperience to its customers through thought ully and spectacularly designedhomes. It is set to introduce a new paradigm o living to the city withcontemporary amenities and world-class luxuries.


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Te project has garnered a phenomenal response within a short span olaunch. About 10% o the inventory has already been booked. Te project

attracted premium rates despite a price sensitive atmosphere. While ower Ais scheduled to be delivered in March 2016, ower B will nish constructionby March 2017.

In the Lap o Luxury Designed by Kapadia Associates Pvt. Ltd., Fountainhead will offer well-designed space through 13 storeys o luxury-serviced apartments. Tere are2 towers being constructed o 13 oors each with 81 exquisitely designedhouses, covering 0.35-million sq. f. saleable area. Te luxury residentialcomplex offers luxurious essentials and aesthetically designed environs,managing to be both urbane and yet removed rom the clamour o city li e.Te concept apartment has been smartly designed with spacious rooms andstate-o -the-art amenities, ranging rom a clubhouse to digital living.

Fountainheaddelivers a holisticli estyle and leisureexperience to itscustomers throughthought ully andspectacularlydesigned homes.


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Contemporary DesignsTe efficiently-designed spaces and intelligently-engineered residential towersare aiming at redesigning the concept o iconic residential apartments. Oursophisticated design comes with a mix o technology, exclusivity and evolvedamenities such as top-quality interiors and bathroom ttings. Each apartmentis well-equipped with modern attendant acilities such as a concierge service,personalized butler service, eaturing exclusivity, luxury and much more. Teexpansive living spaces set atop the mall makes the residents enjoy privilegedaccess.

A wealth o recreational acilities and luxurious services make Fountainheadone o the most desired addresses in Pune. Outdoor swimming pools, mini-

auditorium, open-air ampi-theater, state-o -the-art gaming room, virtualgol , library/reading lounge, multi-purpose hall or yoga and aerobics,billiards and pool tables, squash court and a party room with indoor/outdoorbarbeque area help trans orm them into exotic residences.

Tis luxuryresidential complexoffers luxuriousessentials andaestheticallydesigned environs,managing to beboth urbane and yetremoved rom the

clamour o city li e.


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46 Te Phoenix Mills Limited46 Te Phoenix Mills Limited46 Te Phoenix Mills Limited

Intelligent HousesWe are creating modern and intelligent living spaces through the use olatest gadgets and technology. Our homes are intelligent enough to sensehuman presence and accordingly adjust light and temperature. Te use odigital locks, electronic surveillance systems, temperature control, wirelesscommunication or Internet and in-house entertainment are some eaturesthat will add value to the residences. We are providing systems with sensorsto enable residents to control ambience, light and temperature through pre-programme machines.

Per ectly LocatedFountainhead is located at the picturesque and unpolluted area o VimanNagar, a vibrant shopping and entertainment area with a dynamic cityscape.Te area connects Pune to the industrial town o Ahmednagar. Viman Nagaris one o the busiest localities in the city and home to several educationalinstitutions. It is centrally located within an environment- riendly campus,surrounded by malls, hospitals, school and the airport. Te project is in close vicinity o several prime landmarks in the city.


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Greening the EnvironmentWe believe in eco- riendly housing providing environment- riendly livingoptions and lush playgrounds. It embraces nature by providing ample openspaces or the residents. Te project will have a central green zone with openlawns and botanical gardens that will help residents de-stress. Te project alsoutilises green technologies or effective energy, water and waste management.

Key Highlights: Spacious and elegantly designed 4BHK and 3BHK ats and duplex houses State-o -the-art acilities such as ully-equipped gymnasium and clubhouse Home automation and sa ety systems or added security Modular kitchens and twin grand master bedrooms Multimedia-enabled bathrooms with Jacuzzi Outdoor temperature-controlled swimming pool, virtual

gol arena, party lawn Entry and exits segregated rom Mall access points Dedicated parking with 24/7 e-surveillance

Te project willhave a central greenzone with openlawns and botanicalgardens that willhelp residentsde-stress. It utilisesgreen technologies

or effective energy,water and wastemanagement.


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When you pay or luxury, you pay or timelessness.With Chennai upping its style quotient, PalladiumChennai adjoining Phoenix Marketcity at Velachery,

Chennai, has upped the ashion ante. Tis uniqueluxury, li estyle retail mall aimed at Chennais crme-

de-la-crme is dedicated to uber-luxury brands.

Stylish in the South

PalladiumChennai


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A rst o its kindretail concept,Palladium Premiohouses a hosto internationalapparel andaccessory brandsmaking their rst

oray into India.

Luxury retail is all about creating the right kind o purchasing experience.Te luxury retail ever has gripped Chennai. Finally, the Chennaite is ready tobe spoilt or mall brand choices. Following the launch o Phoenix Marketcityat Velachery earlier, Chennaites are slowly waking up to more uber-luxuryretail with Palladium Chennai nestled within the Phoenix Marketcitycomplex, a retail-led mixed-use development o Te Phoenix Mills Limited.

Undoubtedly, retailing in the city has changed and there is a noticeablepresence o luxury retail brands. Te ashion-conscious Chennaite is gettingspoilt or choice by a myriad o brands on display. As more and more uber-luxury marketers recognize the importance o having a tangible presence in

the city, Chennai is ast emerging as a destination or uber-luxury brands ointernational and native origins.

A Growing MarketChennai continues to ast grab eyeballs o some o the biggest internationalluxury brands venturing into India. In the last ve years, Chennai has seena signi cant shif in demographics. Luxury retail is now a growing market


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As more andmore uber-luxurymarketers recognizethe importance ohaving a tangiblepresence in thecity, Chennai is

ast emerging asa destination or

uber-luxury brandso international andnative origins.

in Chennai and represents a huge opportunity. Over a dozen labels are nowavailable in multi-brand ashion outlets and this is just the beginning.

Te Forbes list places Chennai as one o top ten astest growing cities inthe world. Home to an over 4.68 million population, Chennai is welcomingthe change with open arms. Te city is nally ready or a big-brand blitz asstatus-driven spenders, besides Generation Next changing the dynamics oretail and indulging in their avourite brands. Te rapid growth o the cityis triggered mainly by actors such as people migrating rom other parts oIndia, which has exposed the traditionally conservative metro to an upmarketand swanky luxury li estyle.

Marketcity sets the Ball Rolling Spread across 2.5 million sq. f. o built-up area, Phoenix MarketCityintroduced Chennai to an ultimate shopping paradise. It offers a lavishspread o shopping, entertainment, hospitality and commercial space.In short, Phoenix Market City is set to emerge as the centre o ultimateindulgence. With Phoenix Marketcity at Velachery, the city was thrownopen to an unparalleled shopping experience in a modern and highly-pleasing environment. ermed as one o the biggest malls in South India,Phoenix Marketcity which opened in January 2013, offers a resh andexciting experience with bright, high-ceilinged, modern and well-designed

shop ronts.

A Step AheadNow, Palladium Chennai goes a step urther and offers a high- ashionatmosphere to locals through a well-balanced, incredible and comprehensiveshopping and leisure experience. Spread over a luxurious 0.21 millionsq. f. o leasable area, it houses the worlds choicest brands and marqueeluxury labels or men and women. Designed by Benoy, a Hong Kong-basedarchitectural rm, this sprawling mixed-use development asset nestledadjoining Phoenix Marketcity offers a large-scale consumption centre or

high-end luxury brands. It is an upmarket shopping destination convergingart, architecture and design.

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Right purchasing experienceWith the city upping its style quotient, Palladium Chennai, the second phaseo the mixed-use development model o Phoenix Marketcity at Velachery, isthe citys rst mall dedicated to luxury brands. It presents an environment oran array o bona de luxury brands. A relaxed atmosphere, good adjacency obrands operating in the same segment, easy accessibility, proximity to poshresidential catchments and ample car parking coupled with good security

acilities are some o the eatures offered by Palladium.

Zoning is the key Intelligent and unique zoning at Palladium Premio allows clients a private

and indulgent shopping experience. It ensures leading brands jump off theshelves and grab the attention o an avid Chennai shopper. With a plethorao brands on display, right zoning and right tenant mix, the shopper getsa brand to complement every desire. Based on their category and sizerequirement, space is identi ed or every retailer making it a completeshopping destination. An entire section within the mall will be dedicated topure luxury.

Locational AdvantageVelachery is ast emerging as a commercial and retail destination owing tothe proximity to the airport and established I parks, like idal I Park, ElnetSofware Park. Some o the catchment areas are: Old Mahabalipuram Road,Guindy, Race Course, Adambakkam, Mount Road, Adyar, Nungambakkam.

ermed as one othe biggest mallsin South India,Phoenix Marketcityoffers a resh andexciting experiencewith bright, high-ceilinged, modernand well-designedshop ronts.


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Kessaku elevates the ordinary to the exemplary, simpleto sublime, the dull to divine, and the everyday to

a work o art. It is the coming together o diverseperspectives in a beauti ul balance. Every little detailat Kessaku is per ected to exceed the home-owners

expectation and set new industry benchmarks in iconicand art ul statement in exclusive living.

Fine Art ofLiving - PerfectedKessaku

Kessaku means a masterpiece in Japanese. It is an exempli cation o the ideao simplicity in complexity, allowing subtle and complex details, textures toexist in a balance o beauty and purpose. It is a compilation o residences thatrede ne grace. It offers home-owners the ne-art o living with the concept obunglow living and the convenience o a gated-community.

Built over a saleable area o 1.0 million sq. f, Kessaku comes in the wakeo the unparalleled success o One Bangalore West, the ast upcomingresidential development within the complex to be delivered in mid-2016. Anunsatiated demand or a luxury residential product with large spaces andsingle-level homes led to Kessakus evolution.

Te Kessaku precinct consists o 5 exclusive towers Sora, Niwa, Mizu, Faiaand Ze a inspired by ve natural elements. Each o these towers have an

independent art-inspired lobby and offer expansive living spaces rangingbetween 6,200 sq. f. and 7,400 sq. f. with by invitation only duplex/penthouse apartments. Located at 1, Dr. Rajkumar Road, Kessaku will belaunched in the third quarter o 2014 and delivered in the last quarter o2018.


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Kessaku looks atclichd luxuryinteriors througha resh lens thatcombines art ulIndian taste withcutting-edgecontemporarydesign.

Rede ning GraceKessaku is a compilation o residences that rede ne grace and re ect themodern architectural vision o Callison, USA the design consultants. TeU-shaped building exudes a sense o sleek modernism, ensuring breath-taking, uninterrupted views rom every internal space. Tis is beauti ully juxtaposed against the lush greenery and expansive decks re ecting a moreelegant and balanced way o li e.Te project creates a contemporary paradigmo seamless inside-outside living.

For a great experience to come together, the little details matter the most. Tein nity edge indoor pool, 360-degree roofop jogging track, bespoke homeautomation, international concierge service and immaculately-designed and

produced kitchen systems add to the projects attractiveness. Kessaku looksat clichd luxury interiors through a resh lens that combines art ul Indiantaste with cutting-edge contemporary design. Te project is designed orIGBC gold certi cation to acilitate sustainable and responsible living.

Benchmarking Luxury Living Spaces at Kessaku have been art ully detailed to embody a masterpiece inthe truest sense and remain culturally pertinent. Luxurious large spaces owseamlessly into each other celebrating the idea o multiple-use. Exclusive

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access-controlled elevators whisks the home-owner straight to his villa. Inaddition to this, personal lobbies, our-zoned kitchen suites, two master suites

with his and her vanity areas and large bathing suites truly make Kessaku anew benchmark in luxury living.

An internal boulevard and individual drop-off areas to each tower are someother key eatures o the luxury product that offers a quality-living experienceand elevates the ordinary to the exemplary. Te detailed landscaping byDesign Cell subtly complements the overall spatiality in a very contextual andunobtrusive manner. Te interior narrative with a modern eclectic discoursecreates a luxury attuned to the taste o the global amily. Te experience is

urther enhanced by a personalized home intelligence system thats virtuallyinvisible and intuitive to ensure com ort and the highest degree o security.

Elegance Personi edKessaku comes with the bespoke privilege o two clubhouses. Midori is theground-level Garden Club. Exempli ying the verandah concept, Midoricreates a lovely space that speaks o restrained, laid-back elegance thatextends into a tranquil landscape. One can leisurely enjoy a game o squashor a tee-off at the simulated gol zone. Kaze is the roofop club in the sky withan unparalleled all-round view o the city. It is named afer the whisperingwind restless and ree. It boasts o temperature-controlled indoor in nitypool, 360-degree jogging track, gym, yoga room, sauna, jacuzzi, spa and thebest sunset over the citys skyline.

Strategic LocationTe project is strategically located in close vicinity o a metro station, World

rade Centre, ve-star Hotel Sheraton, premium shopping destinations,reputed educational institutions and hospitals, offering antastic connectivityand a good mix o cosmopolitan in rastructure. It is in the close vicinity othree in rastructure projects - IISC Underpass, Metroline and the AirportExpressway. It is in close proximity to the central business district and the

International Airport with distinguished educational institutions being a hopaway and innumerable cultural and recreational options next door.

Te grandness othis masterpiece,which rede nesresidential living,is revealed inits architecture,choice o exquisitematerials, state-o -the-art technology

and top-o -the-line service andexperience.


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Luxe by SPI Cinemas is a cinema destination thatbreaks all conventions to deliver a bold, contemporary

and chic cinema experience. Stylish, individualistic,creative and unapologetically ashionable, Luxe is

where you want to be!

A New Dimensionto Entertainment

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Care ully designed to give you a visually stimulating experience that isnothing short o spectacular, Luxe is the per ect harmony o creativity, styleand com ort combined with the ultimate in cinema technology, guaranteedto escalate your movie-viewing experience to a place you never thoughtexisted. Tis is the unique beauty o Luxe.

For a while now, the movie lovers in Chennai have been missing the IMAXexperience, something that movie goers in Bengaluru, Hyderabad andMumbai have been able to enjoy. Te wait has nally ended with Luxethrowing open its doors at Chennais shopping, dining and entertainmenthub, Phoenix Market City at Velachery.

Owned and operated by the popular multiplex and entertainment group, SPICinemas, Luxe is an 11-screen multiplex with state-o -the-art screens, withone o them being Chennais rst IMAX.

Each screen atLuxe Cinemas isequipped with a4K digital sound,with Dolby Atmosincluded. Eachscreen is nearly 75-

eet high keepingeyes at ease.


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Un orgettable Cinematic

ExperienceTe Luxe IMAX screen will have a capacity o about400 seats, while the overall seating capacity is 2,688seats or all the 11 screens. IMAX raises the standardo cinematic experience within the city as movie-goerscan enjoy an enigmatic and ul lling experience.IMAX completely trans orms the way audiencesexperience movies.

Te screens are a per ect balance o style and com ort.No two screens offer the same movie watchingexperience, thanks to the unique design, lighting and

theme with a mix o different imported abrics. Tecombination o designer vinyl seats, and the mlangeo colour make or a sensational ambience.

Superior echnology Te screens are equipped with RDX-4K and RDX- 3D,2.4 gain Silver Screens and digital audio that delivers astunning cinematic experience.

All the screens are equipped with 4-way QSC speakerswith the worlds leading processors which givesmaximum voice clarity. Even the most subtle sound isheard clearly, leaving you with an unparalleled audioexperience.

Dolby Atmos, the latest in cinema sound, is currentlyinstalled in two screens.

Style and AmbienceAs you enter Luxe, you will be transported to aglamorous world o ritz and glitz. Te Italian marbled

oors, the plush coloured velvet padded walls, thecrystal chandeliers hanging rom the ceiling andthe intricate etched glass decor make or a visuallystunning experience.

Te use o rich drapery that rames different elementsadds to the exquisite look o the space. Te centrallobby is home to a larger than li e video pillar,consisting o 72 LCDs lodged together on our sideso a column, bringing any content to li e. Tis is the

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rst o its kind in India and the largest in Asia. Onan elevated stage is a Grand Piano! It is hooked-up toan automated iPod and plays music composed by theall-time greats. Te effect is so wonder ul that you maybe tempted to hang around the Luxe lobby just to listento the music. Te unmatched eatures create a uniquespace which movie connoisseurs in Chennai will look

orward to as an entertainment hub.

Ca De LuxeLocated at the mezzanine level overlooking the Luxelobby is Ca De Luxe, where patrons can hang outover a mocktail or two! In tune with Luxes concept, theCa has inviting couches, table-top chandeliers andtheir signature omni-present glow. An added bonus isthe seating near the glass projector cabins o Screens10 and Screen 11, where one can sneak a glimpseo the screening. Te thirsty mall-goer can choose

rom various options here smoothies, lemonades,mocktails and a ew hot and cold coffees. Te Ca alsooffers a range o nger ood to choose rom.

An added bonus at the Ca e is theseating near the semi-transparentprojector cabins o Screens 10 andScreen 11, where one can sneak aglimpse o the screening.


Going ForwardLuxe offers an unparalleled luxury cinema viewingexperience, setting a benchmark or excellence andoffering value to Chennais discerning audience.With an increased number o retailers commencingoperations at Phoenix Marketcity and with oot allsrising each day, the upscale auditorium is sure to bethronging with movie goers.


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Michael Kors was pleased to announce the opening o its rst Li estylestore in Mumbai, India, this April. Te 1,502-square- oot store, locatedat Palladium Mall, will carry a mix o accessories rom the Michael KorsCollection and MICHAEL Michael Kors labels, as well as watches, jewelry,

ootwear and eyewear.

Michael Kors in-house team designed the store to echo the labels chicaesthetic, using zebra-print urniture, sleek metal xtures and mirroredsur aces. Glossy, large-scale vintage photographs cover the walls, evoking jetset glamour and timeless sophistication.

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Te style in Mumbai is very inspiring, says Michael Kors. Naturally Imthrilled to open up there this spring. I know customers will love the richprints and luxurious accessories they nd in our store.

Michael Kors is a world-renowned, award-winning designer o luxuryaccessories and ready-to-wear. His namesake company, established in1981, currently produces a range o products through his Michael Kors andMICHAEL Michael Kors labels, including accessories, ootwear, watches,

jewelry, mens and womens ready-to-wear, and a ull line o ragranceproducts. Michael Kors stores are operated, either directly or throughlicensing partners, in some o the most prestigious cities in the world,including New York, Beverly Hills, Chicago, London, Milan, Paris, Munich,Istanbul, Dubai, Seoul, okyo and Hong Kong.


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Discussion & Analysis

Te International Monetary Fund (IMF) has raisedthe global economic growth outlook or 2014 to 3.6%

and this is expected to accelerate to 3.9% in 2015.Growth in advanced economies is seen increasing

to about 2.3% during 2014, a 1% improvement over2013. Key drivers or this improvement are a reduction

in scal tightening and highly accommodativemonetary conditions.

Economic Review Global Economy Te global economy experienced subdued growth or another year in 2013.Te economy grew at its slowest rate since 2009 o approximately 2.9%.Under-per ormance was observed across almost all regions. Most developedeconomies continued to underper orm in an uphill battle against the effectso the nancial crisis. However, prospects or 2014 look brighter with a

orecast o improved growth or developed economies such as Germany,Japan, the United Kingdom and the United States. Te InternationalMonetary Fund (IMF) has raised the global economic growth outlook or2014 to 3.6% and this is expected to accelerate to 3.9% in 2015. Growth inadvanced economies is seen increasing to about 2.3% during 2014 , a 1%improvement over 2013. Key drivers or this improvement are a reduction in

scal tightening and highly accommodative monetary conditions.

Managements


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Industry Review Real Estate SectorTe real estate sector in India plays a pivotal role in driving the n

pmlannualreport-2014

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