Saturday, January 19, 2008

Fundays piggyback on ClubMahindra Members

Fundays is Mahindra Holiday’ timeshare offering to corporate, introduced in October 2006. This offering is based on a points system for the 10 year term. . A corporate member may offer family holidays to their employees. A Club Mahindra Fundays member has to purchase a minimum 10,000 points and additional points can be purchased in multiples of 1,000 points. 67% of the points purchased by a member are termed as “Premium points” and can be used in all four seasons - Purple, Red, White and Blue, in Club Mahindra Holidays resorts and all three seasons - Verve, Buzz and Pep, in Zest resorts. 33% of the points purchased by the member are termed as “Classic points” and can be used only in the White and Blue seasons in Club Mahindra Holidays resorts and only in the Pep season in Zest resorts.

As of October 31, 2007 Mahindra Holiday has sold 1,128,849 Club Mahindra Funday points. That is 112 times minimum point required to purchase corporate membership.


What does it mean to ClubMahindra customer :
  • Purple season which is not available to general customer is available to corporate customers.
  • One corporate membership is equal to how many Red Studio membership?

I do not know, but for sure each corporate customer membership must be equal to many (?) single normal customer membership. Otherwise why Mahindra holidays will create this brand. So how much load it is on ClubMahindra members : 1*112 or 5*112 (=600) or 10*112(=1200) Red Studio membership?


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MahindraHolidays Spend ~30% of their Yearly Income on Generating Sales



Mahindra Holidays spends almost 30% of it’s yearly income (Including ASF) on it’s sales expenses ( commission , Advertisment, promotions etc ..)


Source: DRAFT RED HERRING PROSPECTUS : MAHINDRA HOLIDAYS & RESORTS INDIA LIMITED

Page # 5, 132


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Membership Growth Vs Room Capacity for MahindraHolidays

Membership Growth Vs Room Growth

  • Members (growth*)
    Rooms (growth*)
    Mar 2004
    20,536
    409
    Mar 2005
    28,491 (38.74%)
    500 (22.25%)
    Mar 2006
    38,691 (35.8%)
    606 (21.2%)
    Mar 2007
    53,101 (37.24%)
    675 (11.38%)
    Oct 2007
    63,375 (19.34%)
    736 (9.03%
*Growth from previous year’s number
Source: DRAFT RED HERRING PROSPECTUS : MAHINDRA HOLIDAYS & RESORTS INDIA LIMITED
Page # 61, 73, 171



Source : Mahindra Holidays Investor presentation Feb 2013

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Some more facts about ClubMahindra membership- II

In my earlier post [Some more facts about ClubMahindra membership- I] I have highlighted that Club Mahindra has only a 707 Vs 1218 required rooms.

Here I want to highlight some more facts which show it is not only “ClubMahindra” brand of Mahindra Holidays but there are other categories of Mahindra Holidays customer who share these rooms.

1) One time resorts users (non-Members customers) share same rooms (within the count of 707) mostly available in RCI Gold Crowned resorts only.

a. MahindraHolidays earner 10.5 Cr yearly by renting accommodation to non-Members compared to 22.77 Cr Rs. by way of ASF charge from the customers.

2) “Fundays” , another brand of Mahindra Holidays, usually sold to corporates, Fundays members share same rooms as ClubMahindra members, and these members can avail 2/3 rd of their entitlement in Purple and Red seasons.



What does it mean to ClubMahindra Members:


1) Effective room availability is further less for ClubMahindra members compared to 707. As 112 of corporate customer and 10.5 Cr worth of non-member customer share your 707 rooms.


2) Mahindra Holiday staff does not tell about their rental of resorts room to non-members, while enrolling a new customers. They says (read Q3), it brings down ASF charges to the customer. Then what is the point in promising to keep ASF linked to some price index, any way they have devised a way to fill the short fall (inefficient operation) at customer' cost.


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Thursday, January 3, 2008

No more entry load from 4 Jan 2008

SEBI has removed the entry load for all investments made directly to the fund house. If you apply directly by way of the Internet or directly sending/submit application to the AMC office no brokerage will be charged.

Directly applying for Mutual Fund can save 2000/- to 2500/- for each 1 Lack Rs of investment. Moreover this saved money will grow over the time to enhance your return.


Investment Amount

Fund Value On first Day

Fund

Performance

Your Portfolio Value

Actual Return

Investment done through Broker

100,000

98,000

40%

137,200

37.2%

Direct Investment

100,000

100,000

40 %

140,000

40%


Please note,
Buying on internet merely will not save you entry load. Like if you buy mutual fund on ICICIDirect or HDFC Bank or KotakSecurities.com even in that matter if you buy ICICIPru mutual fund from ICICIDirect it will not save you entry load.

A list of Mutual Fund House :

ABN AMRO Mutual Fund
Benchmark Mutual Fund
Birla Sun Life Mutual Fund
BOB Mutual Fund
Canbank Mutual Fund
Chola Mutual Fund
Deutsche Mutual Fund
DSP Merrill Lynch Mutual Fund
Escorts Mutual Fund
Fidelity Mutual Fund
Franklin Templeton Mutual Fund
GIC Mutual Fund
HDFC Mutual Fund
HSBC Mutual Fund
ING Vysya Mutual Fund
J M Financial Mutual Fund
Kotak Mahindra Mutual Fund
LIC Mutual Fund
Morgan Stanley Mutual Fund
Principal Mutual Fund
Prudential ICICI Mutual Fund
Reliance Mutual Fund
Sahara Mutual Fund
SBI Mutual Fund
Standard Chartered Mutual Fund
Sundaram Mutual Fund
Tata Mutual Fund
Taurus Mutual Fund
UTI Mutual Fund

Tuesday, January 1, 2008

Some more facts about Club Mahindra Membership - I

All the numbers here I have taken from Mahindra Holidays' draft prospectus with the SEBI for their upcoming IPO.


Facts:



"Currently, we have a total of 21 resorts across India and Thailand, of which we own seven properties. Our Resorts (resorts owned by us or on long term lease with us) contribute an aggregate of 639 apartments and cottages of a total of 736 apartments and cottages owned or leased by us."


"Club Mahindra Holiday membership c
urrently entitles members the choice of holidaying at any of our 19 resorts, for seven days each year, in a season and apartment type of their choice, for 25 years. ... ... As of October 31, 2007, we have 63,375 Club Mahindra Holiday vacation ownership members."

Conclusion/Observations:

  • Out of these 21 resorts 2 resorts are for Zest members so ClubMahindra Members has total 19 resorts (707 apartments) for their use.

  • ClubMahindra does not maintain apartment inventory matching their growing member base.


63,375 ( Members)
_______________ = 1218 apartments
52 ( weeks in a year)


  • Club Mahindra has 707 apartment compared to required 1218 apartment. - Bad


Facts:





Mahindra Holidays Owned Resorts

Resort
Capacity
Cumulative Capacity
1
Goa, Goa
205
205
2
Coorg, Karnataka
122
327
3
Munnar, Kerala
112
439
4
Binsar, Uttaranchal
36
475
5
Manali, HP
33
505
6
Ashtamudi, Kerala
26
531
7
Manipur Villa, Binsar
5
536


Long term leased

Resort
Capacity
Cumulative Capacity
8
Auli,
10
546
9
Bangkok, Thailand
6
552
10
Corbett, Uttaranchal
4
556
11
Dharamshala, Himachal
23
579
12
Kodaikanal, TamilNadu
11
590
13
Mussoorie, Uttaranchal
19
609
14
Pattaya, Thailand
6
615
15
Poovar, Kerala
6
621
16
Ooty, Tamil Nadu
15
636


Short term leased


Resort
Capacity
Cumulative Capacity
17
Jaipur, Rajasthan
5
641
18
Yercaud, Tamil Nadu
10
651
19
Panchgini, Maharashtra
20
671
20
Mahabaleshwar, Maharashtra
10
681
21
Kodai Hill Country, Tamil Nadu
26
707


Conclusion/Observations:

62.1% capacity is 5 star certified -
Good
3 resorts has 62.1% of total capacity
Bad


3 resorts are 5 star certified
5 resorts are RCI Gold Crowned
OK
Good
All other resorts (18) are 3 star quality only
Bad


75% capacity is in self owned resorts
Good
24.9% capacity is distributed among 15 resorts
Bad


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