Harsha Retail

RETAIL IN INDIA
Retailing in India is one of the pillars of its economy and accounts for 14 to 15
percent of its GDP. The Indian retail market is estimated to be US$ 500 billion
and one of the top five retail markets in the world by economic value. India is
one of the fastest growing retail markets in the world, with 1.2 billion people.
As of 2013, India's retailing industry was essentially owner manned small
shops. In 2010, larger format convenience stores and supermarkets accounted
for about 4 percent of the industry, and these were present only in large urban
centers. India's retail and logistics industry employs about 40 million Indians
(3.3% of Indian population).
Until 2011, Indian central government denied foreign direct investment (FDI) in
multi-brand retail, forbidding foreign groups from any ownership in
supermarkets, convenience stores or any retail outlets. Even single-brand retail
was limited to 51% ownership and a bureaucratic process.]
In November 2011, India's central government announced retail reforms for
both multi-brand stores and single-brand stores. These market reforms paved the
way for retail innovation and competition with multi-brand retailers such as
Walmart, Carrefour and Tesco, as well single brand majors such as IKEA, Nike,
and Apple. The announcement sparked intense activism, both in opposition and
in support of the reforms. In December 2011, under pressure from the
opposition, Indian government placed the retail reforms on hold till it reaches a
consensus.
In January 2012, India approved reforms for single-brand stores welcoming
anyone in the world to innovate in Indian retail market with 100% ownership,
but imposed the requirement that the single brand retailer source 30 percent of
its goods from India. Indian government continues the hold on retail reforms for
multi-brand stores.
In June 2012, IKEA announced it had applied for permission to invest $1.9
billion in India and set up 25 retail stores. An analyst from Fitch Group stated
that the 30 percent requirement was likely to significantly delay if not prevent
most single brand majors from Europe, USA and Japan from opening stores and
creating associated jobs in India.
KOUSALI INSTITUTE OF MANAGEMENT STUDIES

Harsha Retail
On 14 September 2012, the government of India announced the opening of FDI
in multi-brand retail, subject to approvals by individual states. This decision was
welcomed by economists. and the markets, but caused protests and an upheaval
in India's central government's political coalition structure. On 20 September
2012, the Government of India formally notified the FDI reforms for single and
multi brand retail, thereby making it effective under Indian law.
On 7 December 2012, the Federal Government of India allowed 51% FDI in
multi-brand retail in India. The government managed to get the approval of
multi-brand retail in the parliament despite heavy uproar from the opposition
(the NDA and leftist parties).Some states will allow foreign supermarkets like
Walmart, Tesco and Carrefour to open while other states will not.

The Potential of the Indian Retail Sector

The high growth projected in domestic retail demand will be fuelled by :
1.

An increase in urbanization

2.

Changing consumer attitudes especially the increasing use of credit cards

3.

The growth of the population in the 20 to 49 years age band, there is retail
opportunity in most product categories and for all types of formats

Food and Grocery: The largest category, largely unorganized today

Home Improvement and Consumer Durables: Over 20 per cent per

annum in the next 10 years

India also has significant potential to emerge as a sourcing base for a

wide variety of goods for international retail companies

Many international retailers including Wal-Mart, GAP, JC Penney etc,

are already procuring from India.

KOUSALI INSTITUTE OF MANAGEMENT STUDIES

Harsha Retail

Challenges Facing the Indian Retail Industry

1

The tax structure in India favors small retail business

Lack of adequate infrastructure facilities

High cost of real estate

Dissimilarity in consumer groups

Restrictions in Foreign Direct Investment

Shortage of retail study options

Shortage of trained manpower

Low retail management skill

Most Indian retail players are under serious pressure to make their supply
chains more efficient in order to deliver the levels of quality and service
that consumers are demanding.

The Future
The Retail Industry in India is currently growing at a great pace and is expected
to go up to US $ 833 billion by the year 2013. It is further expected to reach US
$ 1.3 trillion by the year 2018 at a CAGR of 10%. As the country has got a high
growth rates, the consumer spending has also gone up and is also expected to go
up further in the future. In the last four year, the consumer spending in India
climbed up to 75%. As a result, the India retail industry is expected to grow
further in the future days. By the year 2013, the organized sector is also
expected to grow at a CAGR of 40%.

KOUSALI INSTITUTE OF MANAGEMENT STUDIES

Harsha Retail

Retail is usually classified by Type of Products as follows :

1

Food products

Hard goods ("hard-line retailers") - appliances, electronics, furniture,

sporting goods, etc.

Soft goods - clothing, apparel, and other fabrics.

Retail Formats in India

Supermarkets: Large self-servicing outlets offering products from a variety
of categories.
Departmental Stores: are general retail merchandisers offering quality
products and services.
Convenience Stores: are located in residential areas with slightly higher
prices goods due to the convenience offered.

KOUSALI INSTITUTE OF MANAGEMENT STUDIES

Harsha Retail
Shopping Malls: are the biggest form of retail in India, malls offers
customers a mix of all types of products and services including
entertainment and food under a single roof.

Discount Stores: These are factory outlets that give discount on the MRP.
Vending: It is a relatively new entry, in the retail sector. Here beverages,
snacks and other small items can be bought via vending machine.
Specialty Stores: are retail chains dealing in specific categories and provide
deep assortment. Mumbai's Crossword Book Store and RPG's Music World
is a couple of examples.
Kirana Stores: They are family owned business catering to small sections;
they are individually handled retail outlets and have a personal touch.

Major Retailers In India

Pantaloon
Pantaloon is one of the biggest retailers in India with more than 450 stores
across the country. Headquartered in Mumbai, it has more than 5 million sq. ft.
retail space located across the country. It's growing at an enviable pace and is
expected to reach 30 million sq. ft by the year 2010. In 2001, Pantaloon
launched country's first hypermarket Big Bazaar. It has the following retail
segments:
1

Food & Grocery: Big Bazaar, Food Bazaar

Home Solutions: Hometown, Furniture Bazaar,

Consumer Electronics: e-zone

Shoes: Shoe Factory

Books, Music & Gifts: Depot

Health & Beauty Care: Star, Sitara

E-tailing: Futurebazaar.com
KOUSALI INSTITUTE OF MANAGEMENT STUDIES

Harsha Retail
8

Entertainment: Bowling Co.

Tata Group
Tata group is another major player in Indian retail industry with its subsidiary
Trent, which operates Westside and Star India Bazaar. Established in 1998, it
also acquired the largest book and music retailer in India Landmark in 2005.
Trent owns over 4 lakh sq. ft retail space across the country
RPG Group
RPG Group is one of the earlier entrants in the Indian retail market, when it
came into food & grocery retailing in 1996 with its retail Food world stores.
Later it also opened the pharmacy and beauty care outlets Health & Glow
Reliance
Reliance is one of the biggest players in Indian retail industry. More than 300
Reliance Fresh stores and Reliance Mart are quite popular in the Indian retail
market. It's expecting its sales to reach Rs. 90,000 crores by 2010.
AV Birla Group
AV Birla Group has a strong presence in Indian apparel retailing. The brands
like Louis Phillip, Allen Solly, Van Heusen, and Peter England are quite
popular. It's also investing in other segments of retail. It will invest Rs. 80009000 crores by 2010.

KOUSALI INSTITUTE OF MANAGEMENT STUDIES

Harsha Retail
HARSHA what you dont get elsewhere

It doesnt matter how many times you fail.

It doesnt matter how many times you almost get it right.
All that matters in business is that you get it right once.
Then everyone can tell

you how lucky you are.

'Harsha' Founder Late Shri. K. Bola Poojary : A renowned social worker,

veteran congress leader and founder of 'Harsha Electronics', though he was an
entrepreneur by profession, he had always been in the forefront of social
activities for almost six long decades.

On the professional front, he first got into the trade of preparing switchboards
used in electrical wiring. This gradually evolved in 'Prakash' brand which is a
household name today. But 'Harsha Electronics' which was his dream project,
established him as one of the leading entrepreneurs of the district. If 'Harsha'
has spread wings today to various parts of the district, credit must go to the
calibre and innovation of this great soul.

KOUSALI INSTITUTE OF MANAGEMENT STUDIES

Harsha Retail
COMPANY PROFILE
INITIAL PERIOD, in the words of The Managing Director,
MR. SURYA PRAKASH K
The journey began in 1976, when I was unable to pay my fees for
college by the last day and had to wait for one more year before I
could join the college back. During this period, the Government had
started to provide key support for building and developing Small
Scale Industries (SSI). I was able to identify machineries and
prepare a required estimate, which was Rs.12,500/-. However I took
more than a year to start getting myself into action because of some
complications.
Those days we were in no place to hire people for the job, as the
funds were scare and people were not the ones willing to go extra
mile in work. The only option we had in our hand was to seek the
support of my brother Sri.Ashok Kumar, who was pursuing his
Engineering from Mangalore.
By now my other brothers had started working along with shoulder
to shoulder in the business. There were such numerous revolutions
happening round the corner. So we adopted the best practices
adopted by International Conglomerates in our small production
base in Ambalpady. We developed our own version of line
production and various other quality control methods, all enabling
them to deliver world-class product into the market. By the time we
had also started M/s Prakash Bakelite and Plastics, that
manufactured quality and safety electrical accessories.
However, when we put these products in to the market, though
having a matching quality, we were unable to produce promising
sales. The lack of brand name on our side, made our position weaker
in the market. To support our financials, we began adding other
electric product accessories like, pumps, cables, etc. and were thus
relatively more successful in establishing ourselves in the market.
When the distribution business began to grow, we (five brothers)
started M/s Prakash Electric Co. as most of the products distributed
were pertaining to electrical business. Then began our transition
phase.
KOUSALI INSTITUTE OF MANAGEMENT STUDIES

Harsha Retail
TRANSITION PHASE
In the year 1985, we had to face Excess Stock Levels in
organizations, when we began to put in deep thoughts to produce a
viable business idea, we began to discuss of having an outlet in the
heart of the Udupi City, so that, we may be able to sell excess
products in retail. When we thought further we conceived to start a
large-scale store, which finally became true in the summer of 1987.
This outlet was none other than HARSHA . This outlet was our
biggest risk ever. The business in Harsha was extremely good from
the day one, mainly due to the support we enjoyed from the
customers. Those times the maximum available outlets for consumer
durable retail were 600 Sq ft. and we had 3,000 sq ft. We offered
excellent variety of brands to the customers, which attracted
innumerable customers from the remotest part of the Dakshina
Kannada district.
The success we achieved with Harsha in Udupi, we wanted to
initiate elsewhere too. By now we were among the premier
advertisers, promising retailers and had developed a world class
ERP (Enterprise Resource Planning) and CRM (Customers Relations
Management) Systems. From here growth was never halted and at
consistent intervals we began expanding our geographical presence.
By 2014, HARSHA had spread across :
1
2
3
4
5
6
7
8

Udupi, 1 & 2
Mangalore 1 & 2
Puttur
Kundapur
Shimoga
Hubli
Belgaum &
Dharwad

Bengaluru

THE MANAGEMENT TEAM AT HARSHA

KOUSALI INSTITUTE OF MANAGEMENT STUDIES

Harsha Retail
Mr. Surya Prakash K - M.D & Head of Finance Department

Mr. Ashok Kumar - Head of Operations Department

Mr. Harish M - Head of Marketing Department

Mr. Suresh M - Head of Research and Development Department

Mr. Rajesh M - Overall management and Company Affairs

KOUSALI INSTITUTE OF MANAGEMENT STUDIES

Harsha Retail

KOUSALI INSTITUTE OF MANAGEMENT STUDIES

Harsha Retail
COMPANY VALUES

PECO - values comprises of the basic 6 elements, namely:

Vision
Ethics
Philosophy
Customers
Service
Competition

VISION
Our Vision is to be a formidable force in areas of business and
retain position of being an respectable business by harnessing
our resources and capability .
ETHICS
We all at Prakash Electric Co. believe in valuing every person. We
respect every person for his or her uniqueness and value them.
We follow corporate values of highest standard and never
misrepresent of any kind so as to preserve and build lasting relation
with our customers, associates and employees .
PHILOSOPHY
Prakash Electric Company strictly adheres to its belief in
transparency, consistency and perseverance. We believe that God
has given us some time and energy, which we have to ensure that we
put in our best efforts in gaining something worthwhile from the
same for our society and country at large .
CUSTOMERS
Everything we do and every measure we take must directly or
indirectly value the clientele so as to ensure their benefits for every
single penny spent on purchasing our products / services .
SERVICE

KOUSALI INSTITUTE OF MANAGEMENT STUDIES

Harsha Retail
We understand service to be our life-blood and believe everything
flows through it. And without service, let it be from our employee
or customer, without its positive presence, our existence would
be Unworthy .
COMPETITION
We understand competitors as our adversary and not enemy.
Though we shall put in our best effort in outdoing them, we shall
never be interested in getting into unfair competition to subdue
them. Our worthiness or success can be measured only when they
exist and we respect them for their existence .

MAJOR COMPETITORS
1
2
3
4
5

GTK
Giriyas
Pai International
Big Bazaar and
Many other Exclusive Showrooms

COMPANY PRINCIPLES

Every individual must be respected.

Give the world the best you have, the best will come back to you.

Before you say I cannot say I will try, then give it your best.

If we keep our customers happy, they will keep us in business

Quality always scores let us keep ours high.

Once our customer, always our customers.

Keep learning new, make-work interesting.

Harsha - What You Dont Get Elsewhere .

KOUSALI INSTITUTE OF MANAGEMENT STUDIES

Harsha Retail

HARSHAS QUALITY POLICY

We are committed to delight our customers by providing a wide range of

products and worlds best brands, great shopping experience and prompt,
professional services.

ISO 9001:2008 CERTIFICATION TO HARSHA

ISO stands for International Organization of Standardization. ISO 9001: 2008 has been described as the quality certificate. Organizations registered to ISO
9001 will be given a substantial period to transition to the new version of the
standard i.e. ISO 9001:2008. The applying organization is assessed based on an
extensive sample of its sites, functions, products, services and processes. A list
of problems ("action requests" or "non-compliances ") is made known to the
management, if there are no major problems on this list, the certification body
will issue an ISO 9001 certificate for each geographical site it has visited, once
it receives a satisfactory improvement plan from the management showing how
any problems will be resolved. An ISO certificate is not a once-and-for-all
award, but must be renewed at regular intervals.

KOUSALI INSTITUTE OF MANAGEMENT STUDIES

Harsha Retail
Years
1975
1982

Achievements & Milestones of HARSHA

Prakash Industries was commenced
Prakash Bakelite and Plastics & Prakash Timbers were
starteds.

1985

Prakash Electric Co. was begun

1987

Harsha inaugurated in Udupi on 09.03.1987

1990

Prakash Engineering Company was commenced

1992

Harsha inaugurated in Mangalore on 12.05.1992

1998

Harsha inaugurated in Shimoga on 12.10.1998

1998

Super shop inaugurated in Mangalore on 29.05.1998

1999

Prakash Electric Co. was registered as Private Limited

Co.

2001

Harsha inaugurated in Hubli on 18.05.2001

2003

Harsha inaugurated in Puttur on 12.07.2003

2004

Harsha inaugurated in Kundapur on23.04.2004

2004

Group Revenues exceed 500 millions mark

2005

Group Revenues breach 650 millions mark

2007
2009

Harsha inaugurated its 18,000 S.ft store in Belgaum on

29.03.2007
Group Revenues exceed 900 millions mark

HARSHA AT HUBLI/ Dharwad

KOUSALI INSTITUTE OF MANAGEMENT STUDIES

Harsha Retail

ORGANIZATION CHART

KOUSALI INSTITUTE OF MANAGEMENT STUDIES

Harsha Retail
Branch Manager

Materials Executive Service Executive

Assistant

Assistant

Floor Executive

Counter Heads

Billing Sections

( 4 )

Accountant

Assistant

(4)

RETAIL MARKET STRATEGY:-

KOUSALI INSTITUTE OF MANAGEMENT STUDIES

Harsha Retail
RETAIL FINANCIAL STRATEGY:-

Financial data

KOUSALI INSTITUTE OF MANAGEMENT STUDIES

Harsha Retail
RETAIL LOCATION :-

10
11
12
13
14
15
16
17

Udupi, 1 & 2
Mangalore 1 & 2
Puttur
Kundapur
Shimoga
Hubli
Belgaum &
Dharwad

18

Bengaluru

HRM STRATEGY:-

Employee welfare at harsha

Yearly Bonus ( 8.33 % ), at the time of Deepavali

Yearly Increments based on Performance

Salary hike and Promotions

Monthly Incentives for Sales Executives

Provident Fund

ESI ( Employee State Insurance )

Above 15,000/- salaried employees are issued Health Card.

For Out Station Employees

KOUSALI INSTITUTE OF MANAGEMENT STUDIES

Harsha Retail

Free quarters will be provided to the out station people

Dearness allowance Rs.25/- per day

Traveling allowances Rs.15/- per day

EMPLOYEE TRAINING AT HARSHA

Personality Development Training

Training on Communication

Harsha spends 1% of its turn over on Training as per ISO 9001:2008

Certification.

RECRUITMENTS AT HARSHA

As and when the need arises, advertisement is given in the leading National
News Papers for Recruitments at Harsha for various positions like ;
1

Management Trainees

Sales Executive Trainees ( Male )

Sales Assistant Trainees ( Male )

Sales / Service Engineer Trainees ( Male )

Office / Customer Support / Billing Assistant Trainees ( Female )

RETAIL INFORMATION SYSTEM :KOUSALI INSTITUTE OF MANAGEMENT STUDIES

Harsha Retail

Information Systems

Computers in all the locations

Dot Matrix and Laser Printers at Billing and Office

Local Servers at all the locations networked through Switches

All stores connected to Corporate office through VPN

Enterprise Resource Planning (ERP) in place

Security and Back Up policy in place

Active Internal Mail Communication

Enterprise Content Management in place

Business Intelligence for Top Management

CRM :-

Harsha understand service to be their life-blood and believe everything flows

through it. And without service, let it be from their employee or customer,
without its positive presence, their existence would be Unworthy.

Catering to each and every product asked for.

Specialist at each and Every department to adhere to customer queries.

Strong back office to communicate the new offers and also solving
customer grievances.

Strong follow up for the after sales service.

Free home delivery of Goods.

KOUSALI INSTITUTE OF MANAGEMENT STUDIES

Harsha Retail
6

Gift wrapping and Scratch card offers

MERCHANDISE MANAGEMENT :-

Products at harsha

Home Appliances and Kitchen Products:

Mixies, Wet grinders, Cookers,
Non- stick wares, Fans, Irons, toasters, Stoves, Water purifies, Water heaters.

Electronic Goods:
Electrical Kettles, Wall Clocks, Rechargeable Lights,
Cameras, Mobiles, Pen drives, Digi-cams, Handi-cams, i-pods etc.

Consumer Durables Products:

Television, Music System, DVD,
VCD, Ovens, Air coolers and Air Conditioners, Refrigerators, Washing
Machines, Home Theatre Systems Etc-

Major Brands:
LG, Videocon, Godrej, Haier, Samsung, Onida, Philips,
Usha, Hawkins, Prestige, Thomson, V-Guard, Sony, Olympus, IFB, Nikon,
Kodak, Panasonic, Bajaj, Whirlpool, Voltas, Sansui, Nokia, etc.

PURCHASES:- THE PURCHASING AT HARSHA HAPPENS at a

centralized level where in all the materials are being purchased at the head
office in Udapi. And from there the goods are trasfered to regional stock
keeping units and then to the retail stores.
KOUSALI INSTITUTE OF MANAGEMENT STUDIES

Harsha Retail
Regional stock keeping units also act as retail outlets
For eg: the Harsha retail store at Hubli, has a store room where in all the
goods are stored and on demand is supplied to the Dharwad unit

RETAIL PRICING :- The pricing at Harsha is determined at the

executive level. Harsha retail outlets use DiScount pricing statergy, where
in all the goods sold at the store are available at a lesser price or discounted
price.
Harsha also encourages EMI schemes where in the coustomer can take
home the product by paying nominal down payment and later on pay the
remaining in instalments

RETAIL COMMUNICATION:Areas of Major Hoardings

KOUSALI INSTITUTE OF MANAGEMENT STUDIES

Harsha Retail
They have more than 20 hoardings in and around Hubli City. Some of
them are as follows 1
2
3
4
5
6
7

Station Road
Gokul Road
Corporation Road
Karwar Road
Dharwad Road
Vidya Nagar
Navnagar

Advertisements in major News Papers like 1

2
3
4
5
6

Times of India
Deccan Herald
Udayavani
Vijay Karnataka
Prajavani
Samyukta Karnataka

KOUSALI INSTITUTE OF MANAGEMENT STUDIES

Harsha Retail
PROMOTIONAL ACTIVITIES

HARSHOTSAVA
Harshotsava is our very own sales promotion program that commemorates
the birth of our first outlet in Udupi. During HARSHOTSAVA our emphasis
is to express our gratitude to our clients by offering them the best products at
the best price. The program is conducted across all 7 locations and every
time we have registered commendable visitors for the ceremony. The crowd
are attracted by using personal mailers, banners, advertisement and various
other Medias.
Deepavali
Deepavali is the most significant festival among Indians. Many of the people
make it mandatory to offer a gift to their loved ones. As the numbers of
purchases are in multiples during the time, we ensure that customers get the
best deals, hence we started DEEPAVALI BAZAAR. Not to mention, it has
deeply engraved in the hearts of its target consumers. This could be directly
found via their consistent business given.
Happy Times
Happy times are commemorated at HARSHA between Christmas and New
Year. During this period we ensure giving the shoppers the best of offers in
every product of purchase. The HAPPY TIMES has registered very
favorable gestures from the consumer fraternity every since its beginning.
Monsoon Magic
It was said to us that sales during the Monsoons are very scarce; hence we
looked for opportunity that could ensure people buy more during the
monsoons. This initiative to ensure sales promotion during the monsoons is
therefore termed MONSOON MAGIC. It is conducted during JULY which
generally marks the beginning of monsoons in the region and special offers
are designed to ensure the customer delight.

KOUSALI INSTITUTE OF MANAGEMENT STUDIES

Harsha Retail
STORE MANAGEMENT:-

LAYOUT OF HARSHA SHOWROOM AT HUBLI

KOUSALI INSTITUTE OF MANAGEMENT STUDIES

Harsha Retail
VISUAL MERCHANDISING AT HARSHA:-

SHOW ROOM DISPLAY AT HARSHA

Exterior Display:
It consists of four glass compartment displays, clearly visible
from outside, depicting various products like Fans, Refrigerators, LCD-TVs,
Glass Wares and an exclusive prevailing Advertisement Campaign i.e.
Harshotsava, Deepavali, Happy Times or Monsoon Magic.

Interior Display:
There are Four Major Counters in Harsha and each counter is
having an independent Counter Head and an independent Billing Section.
Counter 1:
Key items like, Mixi, Grinder, Non-Stick Cook wares, Cooking Pans,
Glass wares etc.

Counter 2:
Fan, Water Heaters, Mobiles, Digi-cams, Handi-cams, I-pods, Gas stoves,
Iron Boxes etc.

KOUSALI INSTITUTE OF MANAGEMENT STUDIES

Harsha Retail
Counter 3:
LCDs, TVs, DVDs, Home theatre systems, Speaker systems, and
Satellite boxes like Tata Sky, Big TV, D2H, Airtel etc.

Counter 4:
Washing machines, Refrigerators, Air-conditioners, Micro wave ovens.

CUSTOMER SERVICE

SERVICE:
Harsha understand service to be our life-blood and believe
everything flows through it. And without service, let it be from their employee
or customer, without its positive presence, their existence would be Unworthy.

Catering to each and every product asked for.

Specialist at each and Every department to adhere to customer queries.

Strong back office to communicate the new offers and also solving
customer grievances.

Strong follow up for the after sales service.

Free home delivery of Goods.

Gift wrapping and Scratch card offers.

KOUSALI INSTITUTE OF MANAGEMENT STUDIES

Harsha Retail
Photo Gallery

Visual merchandising at HARSHA

KOUSALI INSTITUTE OF MANAGEMENT STUDIES

Harsha Retail

Segmentation at HARSHA: Cealing Fan segment

Calcularors and Telephone device Segment

KOUSALI INSTITUTE OF MANAGEMENT STUDIES

Harsha Retail
Wall hanging directions for easy identification of desired segment

KOUSALI INSTITUTE OF MANAGEMENT STUDIES

Harsha Retail

Television segment

Various Easy Finance Schemes for customers at Harsha

KOUSALI INSTITUTE OF MANAGEMENT STUDIES

Harsha Retail

Layout view at Harsha

KOUSALI INSTITUTE OF MANAGEMENT STUDIES