An Industry Analysis & Prospects for Investment in Indian Retail Sector

A Report To be submitted by Nimit Gala MMS - Roll No: 028 Batch 2010 - 2012 For the award of degree Master of Management Studies

MET Institute of Management Bandra, Mumbai May, 2011

METs Institute of Management, Bandra, Mumbai

Students Declaration
I hereby declare that this report, submitted in partial fulfillment of the requirement for the award for the MMS, to METs Institute of Management is my original work and not used anywhere for award of any degree or diploma or fellowship or for similar titles or prizes. I further certify that without any objection or condition I grant the rights to METs Institute of Management to publish any part of the project if they deem fit in journals/Magazines and newspapers etc without my permission.

Place Date

: Mumbai :( ) -------------------------------Signature

Name : Nimit Gala Class : MMS-A Roll No. : MMS-028

Acknowledgement
I take this opportunity to thank the people who had a key role in the success of this project. They have inspired, mentored and directed the project to its completion.

I would like to thank Mr. Prasant Bhansaali, Director for giving me an opportunity to do my summer internship at Mehta Equities Ltd at Tardeo, Mumbai.

I would like to express my profound gratitude towards Mr. Prashanth Tapse, AVP-Research Department for his able guidance and encouragement in the successful completion of this project by giving me a platform to get abreast with the practices of Equity Research and fundamental analysis.

It was a very stimulating and motivating experience, which gave me an opportunity to learn, explore and analyze that helped me to expand my knowledge horizon.

Finally, my sincere thanks to all those whose affable ways were indeed instrumental for me to have working experience in such a momentous manner.

CHAPTER 1 2 3 3.1 3.2 4 4.1 4.2 4.3 5 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.8.1 5.8.2 5.9 6

TITLE Executive Summary Company Profile Retail Industry Different Organised Retail Formats Different Retail Segments International Retail Scenario Evolution from Store 1.0 to 3.0 Worlds Top 10 Retail Companies The Future of Retail Indian Retail Industry Origin on Organised Retail Industry Issues and Challenges in Organised Retail Sector Emerging Retail Formats Growth Drivers for Indian Retail Industry Recent Developments in Indian Retail Industry FDI Policy in Indian Retail Industry Why Global Retailers are interested in India? Analytical Models Porters Five Force Analysis of Indian Retail SWOT Analysis of Indian Retail Industry Major Retailers in India Company Overview

PAGE NO 2 3 5 5 7 8 9 10 11 12 14 15 17 19 21 22 23 25 25 27 30 31

6.1 6.2 6.32 6.4 6.5 7 7.1 7.2 7.3 7.4 7.5

Kewal Kiran Clothing Ltd Provogue India Ltd Shoppers Stop Pantaloons Retail India Ltd Titan Industries Comparative Financial Analysis Financial Comparison of the Stocks Covered Price to Earnings Ratio Comparison Price to Book Value Comparison Return on Capital Employed Individual Stock Performance with respect to SENSEX EBITDA Margins Comparison Conclusion Bibliography & Webliography

32 40 48 55 65 75 75 76 78 79 80

7.6 8 9

85 86 88