Fabindia

Fabindia - A Fabric

of our lives

• History of Fabindia

• Fabindia – a unique business entity

• Some factoids about us

• What makes us a great place to work

− Alignment of ideology

− Shared ownership and Entrepreneurial work

culture

− Growth from within

− Transparent

− Empowering women

Contents

1960 Fabindia Inc established

1976 Flagship store at Greater

Kailash, FOPL established

1976 – 1994 Single store

1999 – 2011 Grew from 5 stores to

141 stores

Fabindia moved from shy to

aggressive growth, all the while

ensuring profitability in spite of the

near vertical growth

Historical Perspective

• A viable, profitable retail platform for products

created using hand-based processes

• The creation of skilled, craft-based sustainable jobs

in the rural sector

Fabindia – a unique business entity

Twin Mandate :

The Fabindia Business Model

Fabindia

Customers

Artisan Community

Owners / Employees

- Traditional brand loyalty

- Product accessibility

- Visibility

- Range

- Contemporary

- Belief in product

- Sustaining Craft

- Artisan

empowerment

- Crisil rating of

AA -

- Inclusive

ownership :

approx. 70% of

the staff across

levels own

company stock

Some factoids to understand us

• Employee strength - 1500 +

– Fabindia Employees – 1100

– Contracted staff – 400

• An “Equal Opportunity” employer

1.78 -1 mix (Men- Women)

76% of the management are women

• Over 30% staff have been in the company over 5 years

• Ratio of HR to staff 1: 125

• GPW results were very surprising for us

So how do we make it all work ?

The Fabindia Core Values

• Ownership of Company goals

• Mutual Respect and Humane Approach

• Fairness in our Intent

• Honesty in all our actions

• Result Orientation

• Continuous Improvement

• Leadership by Example

Alignment of Ideology

Driving business success while ensuring sustenance of

craft

– Hiring to translate passion for our ethnic crafts and

business ideology into satisfying careers

– Our hiring specifications for management levels tests

candidates on their commitment to the above

– All induction and orientation processes reinforce the

dual objectives of our business model

– Demonstrated belief in organizational values is one of

the key parameters in performance assessment for

senior roles

Shared Ownership

Approx. 70% of our employees across levels own the

company stock

– Opportunity for Wealth creation

– Opportunity to partner in success

Entrepreneurial work culture

• Independent SBUs run the regions

– Decentralized

– Each store a profit center and each store manager

an entrepreneur with a P&L responsibility

• Profit sharing plans for over achievement

• COC’s ensures Artisan empowerment

– Sustainable community development

Performance and Development Focus

Centres of Excellence

as drivers for service improvement and focus on

continuous development

Obligations of a COE

To customer

• Consistent standards of service

• Excellent level of customer interaction

• High levels of personalization

• Very high initiative to get feedback and give follow up

To the Organization

• Conformity to all processes

• High productivity

• Excellent customer feedback

• Training ground for new employees / stores

To the Store Team

• Highly motivated team

• High investment in team member development

• Stress reduction in the working environment as process conformation increases

Support provided to a COE

• Classroom

• On the job

• Technical

• Behavioral

Training inputs

• Motivation through visibility and recognition

• Process changes / inputs Other inputs

Growth from Within

• IJP process

– Opportunities for growth from within

– Setting people up for the next role

– Considerate of individual needs – relocations

– Humane approach in application of policy decisions

• Generalist skills being made specialized

– Functional and Behavioral competencies for every position

– Biannual assessment of development needs through multi

source feedback

– IDPs and PIPs for every individual up to a certain level

– Strong alignment of the L&D curriculum with the competencies

– Training budget available even during the recession

High level of transparency-

All employees are treated as shareholders in decision

making

• Simple HR processes and policies

• Role of HR is to create disproportionate impact (1:125)

– work with each employee as an individual

Empowering Women

• 76% of management positions are staffed by women

• Feeling secure, safe and empowered

• Growth and leadership

• Women Intrapreneurs

In Summary

• We value our unique business model

• We strive to align our business and employee ideologies

• We empower our stakeholders and encourage

participative ownership of brand Fabindia

• We have a strong focus on development and growth

from within

• Our core culture has not seen a dilution despite changes

in our environment

• Every employee feels connected, recognizes his/her role

in the success story that is Fabindia – in spite of rapid

growth.

THE VISIONARY