format in the last three Fiscals across 507 tier I/ II / III / IV cities in India while we opened two new stores in the
EBO format and more than 86 new stores in the LFS format in the three months ended June 30, 2021, across 499
tier I/ II / III / IV cities in India. Our products being core and essential to consumers has enabled us to operate on
a business model where we offer limited discounts and sale of our products is typically at full price which in our
experience results in greater profitability. Revenues generated from sale of our products at full price were =
1,778.16 million, = 2,610.72 million, = 1,431.90 million and 2 233.03 million accounted for 95.64%, 97.89%,
82.88% and 96.09% of our total revenue from EBO operations in Fiscals 2019, 2020, 2021 and in the three months
ended June 30, 2021, respectively. The size of our EBOs ranges between 300 square feet and 700 square feet that
allows us to retail our entire product range. This format also allows us to implement safe distancing measures that
have become particularly relevant on account of COVID-19. In Fiscals 2019, 2020 and 2021 and in the three
months ended June 30, 2021, sales per square feet of our EBOs was % 18,174.10, = 17,063.83, = 10,135.26 and =
1,442.33 respectively. We staff our EBOs with limited people per store which is among the factors that contribute
to our store profitability while ensuring adequate attention to customers. In addition, our EBO’s average selling
price has increased from % 559.14 in Fiscal 2019 to = 584.02 in Fiscal 2021 and was % 619.05 in the three months
ended June 30, 2021, primarily on account of value added products including pants, trousers and plus size products
that we have introduced as part of our portfolio. Our COCO model of operating our EBOs is supported by
streamlined store network planning, a robust supply chain network and an efficient staff recruitment and
development program.

Our limited store closures in the last three Fiscals (including on account of the impact of COVID-19) are indicative
of our ability to identify the right location for our stores and deliver strong operating profits which is reflected in
our pre-COVID-19 impacted Same Store Sales Growth. For example, we closed 15, 18, 41 and five EBOs (that
included four, nine, 15 and one EBOs that were relocated during the period) in Fiscals 2019, 2020 and 2021 and
in the three months ended June 30, 2021, respectively, while our Same Store Sales Growth was 19.97% and
11.37% in Fiscals 2019 and 2020, respectively.

Extensive procurement base with highly efficient and technology-driven supply chain management

We offer customers premium quality products at affordable prices and in Fiscal 2021, more than 88.32% of our
products were retailed at a price lower than 2 1,049. We have been able to achieve our value proposition to
customers through low procurement and operating costs. We outsource the manufacture of our products and
thereby do not incur manufacturing costs. We have been able to build and manage an extensive sourcing network
to support our product development teams. As of September 30, 2021, we have a network comprising over 120
suppliers and job-workers across India many of whom we have longstanding relationship with our suppliers and
job-workers. We work closely with our suppliers and also supervise their manufacturing operations through our
personnel and conduct inspections that enable us to perform quality checks. Our sourcing team closely monitors
our suppliers and provides strict quality assurance analysis that allows us to consistently maintain our quality for
our customers. We follow stringent norms of quality assurance at various levels through quality control
mechanisms and regularly conduct inspections of fabrics sourced from our suppliers. We also track our suppliers’
capacity and output to ensure that our production requirements are met and we are able to procure finished
products in a timely manner.

We have automated our entire procurement and supply chain operation through our ERP system, which allows us
to maintain flexibility and enables us to meet our requirements in an efficient manner without relying on any one
vendor, supplier or factory. Our ERP system enables us to streamline our procurement needs including the quantity
required enabling us to avoid over or under-stocking as well as handling complex SKU mixes to meet supply
chain requirements of our extensive distribution network. Together our supply chain management systems and
internal controls minimize product shortage and the occurrence of out-of-stock situations and we are able to
operate efficiently and productively with minimal disruptions to our day-to-day operations. We manage our
inventory and logistics as well as our entire supply chain for all our channels from our warehouse in Tirupur,
Tamil Nadu that is situated over a 99,100 square foot area. We have also implemented end-to-end automation in
our inventory operations through process automation that has resulted in seamless and optimal inventory
management. We have also implemented a business intelligence tool that allows us to optimize the inventory that
we maintain, avoids stock out and ensures sufficient supply at our stores. On account of our effective inventory
management, we have been able to rationalise our inventories in recent years, which stood at 2 694.95 million, as
of March 31, 2019 compared with 2 1,058.56 million, as of March 31, 2020 and was 2 809.45 million, as of March
31, 2021 while it was 2 1,026.84 million, as of June 30, 2021.

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