Market size of Indian retail industry

By 2012, the total market size reached USD518 billion, thereby registering a CAGR of 7.0 per cent since 1998.

Break-up of all mall space by format in India
Hypermarkets would be the largest retail segment, accounting for 21 per cent of total retail space by 201314.

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Updated: May, 2014
SECTORAL REPORT | APRIL, 2014
Introduction
The retail sector is one of the fastest growing in India over the last few years. The Indian retail
industry, which comprises organised and unorganised retail, is currently estimated at US$ 490 billion.
It has experienced high growth over the last decade with a noticeable shift towards organised retailing
formats. The industry is moving towards a modern concept of retailing. Demand from international
and domestic brands as well as retailers continued to strengthen throughout 2013; with the second
half of the year witnessing an increase in demand for quality retail space in Delhi NCR, Pune and
Chennai, according to the findings of CBREs latest report, India Retail Market View H2 2013.
As Indias retail industry is aggressively expanding itself, great demand for real estate is being
created. Further, easy availability of debit/credit cards has contributed significantly to a strong and
growing online consumer culture in India. With the online medium of retail gaining more and more
acceptance, there is a tremendous growth opportunity for retail companies, both domestic and
international.
Favourable demographics, increasing urbanisation, nuclear families, purchasing power of consumers,
preference for branded products and higher aspirations are some factors which will drive retail
consumption in the country.
Market Size
Indias retail market is expected to touch a whopping Rs 47 trillion (US$ 782.23 billion) by 201617,
expanding at a compounded annual growth rate (CAGR) of 15 per cent, according to a study by a
leading industrial body.
The total organised retail supply in 2013 stood at approximately 4.7 million square feet (sq ft),
witnessing a strong year-on-year (y-o-y) growth of about 78 per cent over the total mall supply of 2.5
million sq ft in 2012.
The foreign direct investment (FDI) inflows in single-brand retail trading during the period April 2000
January 2014 stood at US$ 98.66 million, as per data released by Department of Industrial Policy and
Promotion (DIPP).
Online Retail
Indias online retail industry has grown at a swift pace in the last five years from around Rs 15 billion
(US$ 249.64 million) revenues in 200708 to Rs 139 billion (US$ 2.31 billion) in 201213, translating
into a CAGR of over 56 per cent. The nine-fold growth came on the back of increasing internet
penetration and changing lifestyles, and was primarily driven by books, electronics, apparel, beauty
and personal care.
According to Crisil Research, the online retail business in India is expected to grow at a whopping 50
55 per cent annually to become a Rs 50,000 crore (US$ 8.32 billion) business in the next three years.
During the same period, ecommerce companies could capture around 18 per cent of the country's
organised retail market, up from their current share of about 8 per cent.
Indias urban population has contributed immensely to the growth of the online market in the country.
Mumbai have left behind all other cities in India in shopping online; Delhi ranks second and Kolkata
ranks third in the preference for online shopping in 2013. In the next 710 years, around 3040 per
cent of the total retail in Indias top 75 cities is expected to be carried out online, as per Mr Arvind
Singhal, Chairman and Founder, Technopak Advisors.
In India, Flipkart and Snapdeal dominate the online marketplaces. Snapdeal brands itself as the
biggest online marketplace in India and allows more than 20,000 businesses to sell on its platform.
The growing online retail market has become a very lucrative business for international majors as
well.
Key Developments and Investments
Reliance Industries Ltd (RIL) plans to take its cash-and-carry, or wholesale business to Jaipur, Rajasthan,
becoming the largest organised wholesale player in the country.
Ezeego1.com has launched a new franchise store in Gurgaon, Haryana to reach out to a wider mass of
audience who prefers the conventional method of travel booking.
Galderma, a Switzerland-based pharmaceutical company, owned by food and beverage giant Nestle, plans to
tap the Rs 30,000 crore (US$ 4.99 billion) skincare and beauty market in India.
Fast-food brand Subway plans to expand its presence across IT parks, highways, hospitals and food courts.
We plan to have about 650 outlets by 2015, said Mr Gurpreet Gulri, Country Head, Subway India.
Big Bazaar plans to use a Rs 100 crore (US$ 16.64 million) marketing campaign, which will play on mass
media as well as social media, to reposition itself as a change agent rather than a player who provides the
deepest discounts in the business.
Tanishq has celebrated another landmark in jewellery retailing by opening its new showroom in Bengaluru. It
is the 162nd showroom in Tanishqs network.
Government Initiatives
The Government of India has allowed 51 per cent FDI in Multi-Brand Retail Trading (MBRT) and 100
per cent in Single-Brand Retail Trading (SBRT).
According to the extant policy, foreign retailers investing more than 51 per cent can open outlets
across the country on the condition that 30 per cent of their sourced sales would come from small to
medium-sized domestic enterprises. Further, global chains will now need to invest only 50 per cent of
the initial compulsory investment of US$ 100 million in setting up cold storages and warehouses in
India.
Foreign chains have been given the green signal to set up stores in cities with a population of less
than one million. Earlier, supermarkets could only commence their operations in 53 cities, the ones
with a population of more than a million.
Road Ahead
While most retailers have been rushing to capture opportunities in the quickly crowding Indian metros,
some have been focusing their expansion plans in the non-metros. In the next few years, modern
retail is expected to grow 5060 per cent annually in tier II and tier III cities, compared to only around
30 per cent in the metros.
Better employment opportunities and improved lifestyles have pulled the rural population towards
cities. By 2030, it is estimated that 91 million households will be middle class and about 570 million
people are expected to live in cities. This factor would be a significant driver for organised retail.
The opportunities in food and grocery retail are immense, given that it constitutes about 69 per cent of
the countrys total retail market, according to panel members at the seventh Food and Grocery Forum
India.









Milestones

25 years ago, we began our pioneering journey transforming the Indian retail landscape, whole-
heartedly believing in rewriting rules and retaining values.
Today, our deep footprint across India and landmark growth is testament to our enduring
values.
2013
Foodhall, the premium lifestyle food destination launched in Pune.
Our fashion brand Central opens its new store in Center Square Mall, Kochi.
First batch of Future India Fellowship program started with 5 selected fellows across the country. The fellowship
aims to create thought leaders of tomorrow.
Future Group successfully introduced 'Big Bazaar Direct' an assisted shopping concept where franchises will
sell Big Bazaar products through a catalogue on a 'tablet'.
Future Group introduced brand new fashion format 'I am In' for trendy youth of the country.
Big Bazaar introduced an exciting occasion for shopping 'April Utsav'.
Future Group officially launched India's largest State of the Art Logistical Distribution Hub at Nagpur.
Big Bazaar introduced a unique customer membership program 'Big Bazaar Profit Club.'
Foodhall, the premium lifestyle food destination launched in New Delhi.
Future Sharp, the Future Group arm that trains and develops the skills of youth opened its new skill centre in
Nashik.
2011
April 2011 KB's Fairprice celebrates opening its 200 stores in India
May 2011 Future Supply Chains becomes ISO certified
2010
Future Group launches its telecom brand T24 in partnership with Tata Teleservices to provide additional loyalty
benefits to its customers.
Future Group launches products in key FMCG categories through Sach, a brand co-created with Sachin
Tendulkar.
Future Group connects over 4000 small and medium Indian manufacturers and entrepreneurs with consumers.
2009
Future Group celebrates its first Shopping Festival across all retail formats in key Indian cities.
Future Innoversity starts its campuses in Ahmedabad, Bangalore and Kolkata to offer degree programs through
a tie-up with IGNOU.
Future Group partners with Hong Kong-based Li & Fung Group to strengthen its supply chain and logistics
network across the country.
2008
Future Capital Holdings becomes the second group company to make a successful Initial Public Offering (IPO)
in the Indian capital market.
Total operational retail space crosses the 10 million square feet mark.
Future Group acquires rural retail chain Aadhar from the Godrej Group, which has a presence in 65 rural
locations.
Big Bazaar crosses the 100-store mark, marking one of the fastest expansions of the hypermarket format
anywhere in the world.
2007
Pantaloon Retail wins the International Retailer of the Year award at US-based National Retail Federation
convention in New York, and Emerging Retailer of the Year award at the World Retail Congress held in
Barcelona.
Future Group crosses the $1 billion turnover mark.
Specialized companies in retail media, logistics, IPR and brand development and retail-led technology services
become operational.
Online portal Futurebazaar.com becomes India's most popular shopping portal.
2006
Future Capital Holdings, the group's financial arm, is formed to manage over $1.5 billion in real estate, private
equity and retail infrastructure funds.
Future Group enters into joint venture agreements to launch insurance products with Italian insurance major
Generali.
Future Group forms joint ventures with US office stationery retailer Staples.
Home Town, the home building and improvement products retail chain, is launched along with consumer
durables format Ezone and furniture chain Furniture Bazaar.
2005
Future Group moves beyond retail and acquires a stake in Galaxy Entertainment, Indus League Clothing and
Planet Retail.
Future Group sets up Kshitij, India's first real estate investment fund, to build a chain of shopping malls.
2004
Future Group launches India's first seamless mall, Central, in Bangalore.
2002
Food Bazaar, the supermarket chain is launched.
2001
Future Group launches three Big Bazaar stores within a span of 22 days in Kolkata, Bangalore and Hyderabad.
1997
Future Group enters modern retail with the launch of the first 8000-sq. ft. store Pantaloons in Kolkata.
1995
Future Group launches John Miller, a brand for Formal shirts.
1994
The Pantaloon Shoppe, Future Group's exclusive menswear store in a franchisee format is launched across the
nation. The company starts distribution of branded garments through multi-brand retail outlets across the nation.
1992
Initial Public Offer (IPO) of shares by the Company
1991
BARE, an Indian denim brand is launched.
1987
The company is incorporated under the name of Manz Wear Private Ltd.
Pantaloons, one of India's first formal trouser brands, is launched.