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About Aditya birla group

A US $43 billion corporation, the Aditya Birla Group is in the League of Fortune 500. Anchored
by an extraordinary force of over 120,000 employees, belonging to 42 nationalities. Over 50 per
cent of its revenues flow from its overseas operations spanning 35 countries.
The Aditya Birla Group has been ranked fourth in the world and first in Asia Pacific in the ‘Top
Companies for Leaders’ study 2011, conducted by Aon Hewitt, Fortune Magazine and RBL (a
strategic HR and leadership advisory firm). The Group has topped the Nielsen's Corporate Image
Monitor 2014-15 and emerged as the 'No.1 Corporate', the 'Best in Class', for the third
consecutive year.

The Aditya Birla Group has demonstrated capabilities of creating large- scale profitable
businesses from scratch as well as building leadership position in the businesses acquired
inorganically. The Group has a vast experience in promoting and growing consumer facing
businesses and brands in the apparel as well as non-apparel sectors and in the process has gained
significant consumer insights.

Brands like Louis Philippe, Van Heusen, Allen Solly, Peter England, Idea Cellular, Birla Sun
Life Insurance and Birla Sun Life Asset Management are among the leaders in their respective
categories. Among the most trusted business houses in India, Aditya Birla Group is well known
for its corporate governance and financial management.

Over 60 per cent of its revenues flow from its overseas operations. The Group operates in 36
countries – Australia, Austria, Bangladesh, Brazil, Canada, China, Egypt, France, Germany,
Hungary, India, Indonesia, Italy, Ivory Coast, Japan, Korea, Laos, Luxembourg, Malaysia,
Myanmar, Philippines, Poland, Russia, Singapore, South Africa, Spain, Sri Lanka, Sweden,
Switzerland, Tanzania, Thailand, Turkey, UAE, UK, USA and Vietnam.

Aditya Birla Group is organized into various subsidiaries that operate across different sectors.
Among these are viscose staple fibre, non- ferrous metals, cement, viscose filament yarn,
branded apparel, carbon black, chemicals, Retail (under the 'More' brand of supermarkets),
fertilizers, chemicals, insulators, financial services, telecom, BPO and IT services. The Group
consists of five main companies, which 2 | P a g e operate in various industry sectors through
subsidiaries, joint ventures, etc. These are Hindalco, Grasim, Aditya Birla Nuvo, Idea cellular
and UltraTech Cement.

Globally, the Aditya Birla Group is


 1st in aluminium rolling
 1st in viscose staple fibre
 1st in carbon black
 2nd in telecom
 3rd in cement (excluding China)
 4th largest producer of insulators
In India, the Group leads in several sectors
 No. 1 fashion (branded apparel) and lifestyle player No. 1 mobile telephony company
 The 2nd largest player in viscose filament yarn
 The largest producer in the chlor-alkali sector
 No. 1 player in grey cement, white cement and concrete
 A leading player in life insurance and asset management

Beyond business
 Reaches out annually to 7.5 million people through the Aditya Birla Centre for
Community
 Initiatives and Rural Development Works in 5,000 villages globally
 Runs 56 schools which provide quality education to 46,500 children. Of these 18,000
students belong to the underprivileged segment Merit scholarships are given to 24,000
children from the interiors
 Its 20 hospitals tend to more than a million villagers
 Ongoing education, healthcare and sustainable livelihood projects in Philippines,
Thailand,
 Indonesia, Egypt, Korea and Brazil lift thousands of people out of poverty Providing
mid-day meals to 74,000 children through Akshaya Patra

Leadership team
CHAIRMAN

Mr. Kumar Mangalam Birla

BUSINESS DIRECTORS

Mr. Ajay Srinivasan

 Director, Financial Services

Mr. Ashok Gupta

 Group General Counsel & Chief Legal Officer Director, Aditya Birla Management Corporation
Private Limited

Mr. Dilip Gaur

 Business Head - Pulp & Fibre Business Managing Director, Grasim Industries Limited

Mr. Himanshu Kapania


 Non-Executive Director, Vodafone Idea Limited Director, Aditya Birla Management Corporation
Private Limited Vice Chairman, Grasim Industries Limited

Mr. K. K. Maheshwar

 Managing Director, UltraTech Cement Limited

Mr. Pranab Barua

 Non-Executive Director, Aditya Birla Fashion and Retail Limited

Group Mentor

Dr. Santrupt Misra

 Chief Executive Officer, Carbon Black Business Director, Chemicals Director, Group Human
Resources

Mr. Satish Pai

 Managing Director Hindalco Industries Limited

Business Heads & CEO


Mr. Ashish Dikshit

 Business Head and Managing Director, Aditya Birla Fashion and Retail Limited

Mr. Balesh Sharma

 CEO, Vodafone Idea Limited

Mr. D. Shivakumar

 Corporate Strategy & Business Development, Aditya Birla Management Corporation


Private Limited Business Head, Birla White

Mr. Dev Bhattacharya

 Group Executive President & Business Head, E-Commerce, Solar Power, Payment Bank
and New Ventures

Mr. H. K. Agarwal

 Business Head, Fibre Business

Mr. K. C. Jhanwar

Business Head, Novelis


 Business Head, Cement Dy. Managing Director, UltraTech Cement Limited

Mr. Kalyan Madabhushi

 Business Head, Chemicals Sector

Mr. Shrijeet Mishra

 Chief Innovation Officer and Head Group Services, Aditya Birla Management
Corporation Private Limited

Mr. Steven Fisher

 Business Head, Novelis

Mr. Sushil Agarwal

 Group CFO; Whole Time Director & CFO, Grasim Industries Limited

Mr. Thomas Varghese

 Business Head, Textiles, Acrylic Fibre & Overseas Spinning

Mr. Tuhin Mukherjee

 Sector Head, Minerals Resource Development Managing Director, Essel Mining &
Industries Limited
About more
Vision:

"To be the foremost Retail Brand which makes India healthy and happy, with an obsession to provide
wholesome and freshest foods Passionately deliver convenient, competitive and meaningful solutions
to the evolving regular needs of the Indian consumer in a sustainable and responsible manner”.

Values:

 Integrity Commitment
 Passion
 Seamlessness
 Speed

More is the retail arm of Aditya Birla Group, a $43 billion corporation. The company ventured
into food and grocery retail sectors in 2007 with the acquisition of Trinethra Super Retail and
subsequently expanded its presence across the country under the brand More with two formats -
Supermarkets and Hypermarkets. There are currently 523 Supermarkets and 20 Hypermarkets
and More aims to offer a shopping experience that delivers unbeatable value and quality.

In keeping with the motto 'Quality 1st' , More takes pride in being the first ever Indian food and
grocery retailer to receive the FSMS (Food Safety Management System) certification. The
company received this certification for ensuring that the manufacturing, storage, distribution and
sale of food adheres to the highest quality standards. more's Re-Processing Centers are also
FSMS certified. The Aditya Birla Science and Technology Centre in Taloja drives more’s quest
for world-class quality through extensive research and development across food and non-food
categories.
Through Clubmore and comprehensive range of brands, including Power Brands Vow, Feasters
and Kitchen's Promise that offer unbeatable value for home makers,More aims to create
customers that keep on returning for more.The family of Clubmore members has grown to 20
million, all of whom enjoy a host of customised offers and great savings.More follows the best
industry practices in order to unlock the full potential of its staff through their world-class
learning institutes - Aditya Birla Center for Retail Excellence and Gyanodaya. Coupled with
learning initiatives such as SPARK, Aarohan and Aarambh , these initiatives are critical in
helping the More employees imbibe the key characteristics of our Quality 1st philosophy

‘More’ supermarkets are neighborhood stores with the core proposition of offering value,
convenience and trust to the customers and averaging 2,500 sq ft area. The hypermarkets are
self-service superstores offering value and range in food and non-food products and services at a
single location. Hypermarkets are located in large catchment areas and encourage mass
consumption with discount prices and substantial depth of assortment with an average store size
of 55,000 sq ft shopping area. In May 2009 Aditya Birla Retail introduced a value proposition
for its supermarkets and encapsulated it into a promise of giving its customers "Hamesha Extra"
which has resonated with the consumer. "Hamesha Extra" is the core essence of More. It means
customers will always feel that they have got something extra while shopping at More. Within a
short span of less than three years, More. has more than one million members as part of its
loyalty programme. More. has also launched a huge range of private labels in food and grocery,
staples and apparel which have already obtained a significant share of category as well as
salience with the consumer. Aditya Birla Retail was presented the 'Retail Best Employer of the
Year' award at the Reid and Taylor Awards for Retail Excellence, by the global jury of the Asia
Retail Congress 2009 and again in 2011. In the same forum, ABRL's CEO, Mr. Thomas
Varghese was awarded the Prestigious Retail Icon Award by the global jury of the Asia Retail
Congress 2011.

Aditya Birla Retail Limited was also awarded the Reid & Taylor Award for Retail Excellence by
the global jury of Asia Retail Congress 2010 for the best marketing campaign of the year –
Launch of Hamesha Extra. It was also presented the Golden Star Award 2009-2010 for the most
admired Retailer of the year (Food & Grocery) for excellence in Food, Hospitality, Service and
Retailing. In March 2011, the 10th Indira Award for Marketing Excellence was awarded to
Aditya Birla Retail Limited CEO, Mr. Thomas Varghese for his outstanding contribution to
brand building.

Features of More
Supermarket

More for you – conveniently located neighborhood supermarket chain. Supermarkets cater to the
daily weekly and monthly shopping needs of customers. Spread across a wide range of products
of food and non-food items, ranging from basic necessities such as, fruits and vegetables, staples,
personal care, home care, household care products, general merchandise, and dairy products.
More provides a one stop solution for their customer’s grocery shopping needs. Also in store are
essentials such as, innerwear, kids essentials, and a pharmacy, bakery and a mobile store

Hypermarket

Hypermarkets are what can be described as a complete destination shopping area, where one can enjoy a
day out with the entire family because of a simple fact that hypermarket consists of variety of options
under just one roof. The result is a very large retail facility which carries an enormous range of products
like grocery, fruits & vegetables, general merchandise, electronics, computers, mobile phones, apparel,
footwear sports and FMCG products, with national, international and house brands all under a single roof.
Currently, thirteen hypermarkets operate under the brand more.MEGASTORE in Mysore, Vadodara,
Indore, Mahadevpura, Old Madras Road & Bull Temple Road in Bengaluru, Mumbai, Saroor Nagar &
Kukatpally in Hyderabad, Vashi, Rohini & Kirti Nagar in New Delhi & Nashik.

Clubmore
The loyalty program in More. It has a strong membership base of over 1 million members. Through this
program customers enjoy a range of exclusive promotions and offers. Becoming a Clubmore member is
so easy. Anyone who is making a purchase of more than Rs 250 can become a member. Only thing he has
to do is to fill up a form given from the store with his details. After that he/she can enjoy the benefits of
shopping from day one. As an esteemed member, each time customer besides the regular offers and
promotions at more. As a Clubmore member customer will also receive exclusive SMS alerts for special
offers on the products and services. shop at more outlet they earn Reward Points which can be redeemed
in their preferred more outlet. A Clubmore member will be entitled to special benefits, besides the
regular offers and promotions at more. As a Clubmore member customer will also receive
exclusive SMS alerts for special offers on the products and services.

Leaders

Pranab Barua-Business director

Mohit Kamapni-Chief Executive Officer

Chandrashekar Chavan-Chief Human Resource Officer(Apparel&Retail)

V.Gopalakrishnan-Chief Quality and Sustainability Officer

More Store

Parent Company Aditya Birla group

Category Retail

Sector Lifestyle and Retail

Tagline/ Slogan Hamesha Extra

USP Quality products at attractive price points


More Store STP

segmentation Quality and price cautious group

Target Group Upper middle class and middle class

Positioning Freshness with quality

More Store SWOT Analysis

Below is the Strengths, Weaknesses, Opportunities & Threats (SWOT) Analysis


of More Store :
1. It has strong pan-India presence as 540 supermarkets and nine hypermarkets
across country
2.It owns private label food brands like Feasters, Kitchens promise and best of
India
3. Over 11,000 employees form the workforce
4. Strong backing of the Aditya Birla Group
5. Good branding and marketing in India
Strengths 6. The stores loyalty program has over 1 million customers subscribed

1.Tough competition from existing players and unorganized sector means


limited market share
Weaknesses 2. New entrant in market compared to other players and low penetration

1. Evolving retail industry in India’s urban and semi urban market, it is expected
to grow
2.Growing awareness and brand consciousness across different socio-economic
Opportunities classes

1. Strong competition from domestic players also from global players entering
into Indian retail market
Threats 2.Increasing commodities prices causing pressure on profit margins
More Store Competition

Below are the 4 main More Store competitors :


1.Relaince Fresh
2.Food Baazar
3.Vishal Mart
4.Subhiksha
Competitors 5.Big Bazaar

Quality initiatives
more’s team of quality experts follow a multi-faceted quality evaluation system and process to
check, maintain, assure and continuously improve quality norms. This is done in order to
maintain consistency in product and offer excellent value to customers.
The key requirements that are important to deliver consistently high quality product and services
to the market are:
more has a rigorous, credible and efficient assessment, inspection, testing and certification Process.
There is an established traceability, recall and recovery procedure which is in line with GFSI and
FSSAI norms.
more has defined standards for products and processes and routinely reviews and benchmarks them
against the best in the industry. Each employee plays a critical role in delivering quality standards
and the business is committed to drive-in continuous and innovative improvements.
Continuous monitoring of more Quality standards is accomplished through periodic audits and
checks which helps achieve continuous improvements in the Quality Management System. This is
also strengthened by continuously upgrading the audit protocol and checklists.
Aditya Birla Fashion & Retail

Standalone Profit & Loss


in Rs. Cr.
account

Mar '18 Mar '17 Mar '16 Mar '15 Mar '14

12 mths 12 mths 12 mths 12 mths 12 mths

Income

Sales Turnover 7,181.41 6,632.98 6,060.71 1,850.73 1,661.21

Excise Duty 9.34 30.12 0.66 0.00 0.00

Net Sales 7,172.07 6,602.86 6,060.05 1,850.73 1,661.21

Other Income 32.81 38.15 11.95 2.78 5.13

Stock Adjustments 246.07 -2.61 232.21 64.42 37.50

Total Income 7,450.95 6,638.40 6,304.21 1,917.93 1,703.84

Expenditure

Raw Materials 3,640.03 3,009.70 2,990.21 1,064.82 989.76

Power & Fuel Cost 10.90 9.45 9.11 0.00 0.00

Employee Cost 772.33 705.80 596.89 183.69 149.71

Selling and Admin Expenses 338.03 286.69 395.40 0.00 0.00

Miscellaneous Expenses 2,188.57 2,151.12 1,903.84 593.94 525.85

6,949.86 6,162.76 5,895.45 1,842.45 1,665.32


Total Expenses

Mar '18 Mar '17 Mar '16 Mar '15 Mar '14
12 mths 12 mths 12 mths 12 mths 12 mths

Operating Profit 468.28 437.49 396.81 72.70 33.39

PBDIT 501.09 475.64 408.76 75.48 38.52

Interest 171.60 179.67 174.87 120.17 117.25

PBDT 329.49 295.97 233.89 -44.69 -78.73

Depreciation 280.52 242.47 338.03 183.45 109.00

Profit Before Tax 48.97 53.50 -104.14 -228.14 -187.73

PBT (Post Extra-ord Items) 48.97 53.50 -104.14 -228.14 -187.73

Tax -68.82 0.00 0.00 0.00 0.00

Reported Net Profit 117.79 53.50 -104.14 -228.14 -187.73

Total Value Addition 3,309.83 3,153.06 2,905.24 777.63 675.56

Per share data (annualised)

Shares in issue (lakhs) 7,716.94 7,705.27 7,688.43 927.94 927.94

Earning Per Share (Rs) 1.53 0.69 -1.35 -24.59 -20.23

Book Value (Rs) 14.14 12.40 12.22 37.19 62.39


Industry Profile
Introduction
The Indian retail industry has emerged as one of the most dynamic and fast-paced industries due
to the entry of several new players. Total consumption expenditure is expected to reach nearly
US$ 3,600 billion by 2020 from US$ 1,824 billion in 2017. It accounts for over 10 per cent of
the country’s Gross Domestic Product (GDP) and around 8 per cent of the employment. India is
the world’s fifth-largest global destination in the retail space.

Market Size
India’s retail market is expected to increase by 60 per cent to reach US$ 1.1 trillion by 2020, on
the back of factors like rising incomes and lifestyle changes by middle class and increased digital
connectivity. Online retail sales are forecasted to grow at the rate of 31 per cent year-on-year to
reach US$ 32.70 billion in 2018.
India is expected to become the world’s fastest growing e-commerce market, driven by robust
investment in the sector and rapid increase in the number of internet users. Various agencies
have high expectations about growth of Indian e-commerce markets.
Luxury market of India is expected to grow to US$ 30 billion by the end of 2018 from US$ 23.8
billion 2017 supported by growing exposure of international brands amongst Indian youth and
higher purchasing power of the upper class in tier 2 and 3 cities, according to Assocham.

Investment Scenario
The Indian retail trading has received Foreign Direct Investment (FDI) equity inflows totalling
US$ 1.42 billion during April 2000–June 2018, according to the Department of Industrial
Policies and Promotion (DIPP).
With the rising need for consumer goods in different sectors including consumer electronics and
home appliances, many companies have invested in the Indian retail space in the past few
months.

 Beccos, a South Korean designer brand is set to enter the Indian market with an
investment of about Rs 1.00 billion (US$ 14.25 million) and open 50 stores by June 2019.
 Walmart Investments Cooperative U.A has invested Rs 2.75 billion (US$ 37.68 million)
in Wal-Mart India Pvt Ltd.

Government Initiatives
The Government of India has taken various initiatives to improve the retail industry in India.
Some of them are listed below:

 The Government of India may change the Foreign Direct Investment (FDI) rules in food
processing, in a bid to permit e-commerce companies and foreign retailers to sell Made in
India consumer products.
 Government of India has allowed 100 per cent Foreign Direct Investment (FDI) in online
retail of goods and services through the automatic route, thereby providing clarity on the
existing businesses of e-commerce companies operating in India.

Road Ahead
E-commerce is expanding steadily in the country. Customers have the ever increasing choice of
products at the lowest rates. E-commerce is probably creating the biggest revolution in the retail
industry, and this trend would continue in the years to come. India's e-commerce industry is
forecasted to reach US$ 53 billion by 2018. Retailers should leverage the digital retail channels
(e-commerce), which would enable them to spend less money on real estate while reaching out to
more customers in tier-2 and tier-3 cities.
It is projected that by 2021 traditional retail will hold a major share of 75 per cent, organised
retail share will reach 18 per cent and e-commerce retail share will reach 7 per cent of the total
retail market.
Nevertheless, the long-term outlook for the industry is positive, supported by rising incomes,
favourable demographics, entry of foreign players, and increasing urbanization.
Top player in Indian Retail sector

1. Reliance Retail-Reliance Retail is on the top of the list of retail companies in India and one of
the best retail companies in India. This top 10 retail companies in India was established in 2005
at Mumbai, India by Mukesh Ambani and has more than 45 subsidiaries that are the top retail
companies in India. Some of the notable brands of Reliance Retail are Reliance Fresh, Reliance
Digital, Reliance LYF & Jio, Reliance Trends, and AJIO. This top retail companies in the world
have more than 3,750 departmental stores in India covering more than 14 million square feet of
retail space at the end of 2017. The annual revenue of Reliance Retail was estimated to be more
than $7 billion and has more than 88,000 employees across 750 cities. Corporate Office:
Reliance Retail, 3rd Floor, Court House, Lokmanya Tilak Marg, Mumbai-400 002

2. Future Group-Future Group is another of the top retail companies in India according to the
most reliable Indian retail industry analysis by a leading market research company Technavio.
Future Group was incorporated at Mumbai, India by Kishore Biyani in 1987 by the name of
Manz Wear. It is on the best list of retail companies in India and has many upcoming retail
brands in India such as Future Retail, E Zone, Big Bazaar, Food Bazaar, Nilgiris 1905,
HyperCity, Central, and Brand Factory. This top retail companies in India has an annual revenue
of around $3.5 billion and employs over 35,000 professionals across the country. Corporate
Office: Future Retail Home Office, Tower C, 247 Park, LBS Marg, Vikhroli (W), Mumbai – 400
083

3. Trent-Trent is a top 10 retail companies in India and this best retail company in India is a part
of the Tata Group. Trent was founded in 1998 at Mumbai, India and more than a hundred large
departmental stores in India. Some of the best retail brands in India owned by Trent are
Westside, Star Bazaar, and Landmark besides JV with top retail companies in the world like
Tesco, Zara, and Lakeland. This top 10 retail companies in India was estimated to have an
annual revenue of worth around $2.5 billion and has more than 25,000 employees working for
this best retail company in India. Corporate Office: Trent House, G Block, Bandra Kurla
Complex-Bandra East, Mumbai – 400051

4. Aditya Birla Retail-Aditya Birla Retail is one of the best retail companies in India on the list
of retail companies in India. This Indian retail company was established in 2007 by Kumar
Mangalam Birla at Mumbai, India. This top retail companies in the world is a part of the Aditya
Birla Group which has a $50 billion turnover. The upcoming retail brands owned by Aditya Birla
Retail are Pantaloons, More, Madura Garments, Idea Cellular and Planet Fashion. This top 10
retail companies in India has an annual revenue of more than $2 billion and employs over 15,000
professionals across 600 departmental stores in India. Corporate Office: Aditya Birla Centre,
3rd Floor, S K Ahire Marg, Worli, Mumbai
5. Titan Company-Titan Company, one of the top retail companies in India was incorporated as
a joint venture between the Tata Group and Tamil Nadu Industrial Development Corporation
(TIDCO) in 1984 at Bangalore, India. The major retail brands owned by this top of the list of
retail companies in India are Titan Time, Fastrack, Skinn, Tanishq, Titan Eyeplus, and Sonata.
Extensive Indian retail analysis reveals that this best retail company in India has an annual
turnover of almost $2 billion with a net income of $120 million. Also, this top 10 retail
companies in India has more than 1000 departmental stores in India and more than 7,500
employees are working for this group of Indian retail companies. Corporate Office: Titan
Company Limited, `INTEGRITY’ #193, Veerasandra, Electronic City P.O., Off Hosur Main
Road, Bangalore-560100

6. Shoppers Stop-Shoppers Stop is a top apparel retail company in the list of retail companies in
India. Shoppers Stop was established in 1991 by the K Raheja Group at Mumbai, India.
Currently, this top retail companies in India has expanded to a network of 82 departmental stores
in India covering 38 cities in the country. This best retail companies in India has an annual
revenue of more $400 million and employs more than 15,000 retail professionals across the
country. The upcoming retail brands in India owned by Shoppers Stop are HomeStop,
Mothercare, Crossword, and Life. Corporate Office: SHOPPERS STOP LTD., Umang Tower,
5th Floor, Mindspace, Off. Link Road, Malad (West), Mumbai – 400 064

7. The Raymond Group-The comprehensive list of retail companies in India has always
featured The Raymond Group as one of the oldest and top retail companies in India. This best
retail company in India was founded in 1944 by VIjaypat Singhania and is part of the JK Group
of companies. This top 10 retail companies in India own upcoming retail brands in India such as
Parx, Park Avenue, Raymond, Kama Sutra, Manzoni, and Color Plus. This top retail companies
in the world have over 700 departmental stores in India spread across 200 cities. The Raymond
Group has an annual turnover of around $3 billion and employs more than 7,000 personnel.
Corporate Office: Raymond Limited, New Hind House, Narottam Morarjee Marg, Ballard Estate,
Mumbai – 400 001

8. Avenue Supermarts Ltd-Avenue Supermarts Ltd is a top retail company in India on the list
of retail companies in India. This top 10 retail companies in India was formed in 2002 at
Mumbai, India by Radhakishan Damani. The top upcoming retail brands in India owned by
Avenue Supermarts Ltd are D Mart, D Mart Minimax, D Mart Premia, D Homes, and Dutch
Harbour. As per various Indian retail industry analysis, this top retail companies in the world is
one of the fastest growing Indian retail companies with over 150 departmental stores in India and
an annual revenue of close to $1.9 billion in 2017. Corporate Office: D-Mart Home. Anjaneya
Cooperative Housing Society Ltd, Orchard Avenue, Powai, Mumbai – 400076.

9. Godrej Consumer Products Limited-Godrej is another top Indian retail companies with over
120 departmental stores in India. This top of the list of retail companies in India was established
in 2001 by Adi Godrej at Mumbai. The leading and upcoming brands owned by Godrej are
Nature’s Basket, Good Knight, BBlunt, Godrej Aer, and Cinthol. This top retail companies in
India has an annual turnover of almost $38 billion with more than 1,200 employees working for
this top retail company in the world. Also, Godrej owns an online grocery portal that is gaining
high traction for the past few years. Corporate Office: Godrej group, 4th floor, Pirojshanagar,
Eastern Express Highway, Vikhroli (East), Mumbai 400 079

10.Provogue-Provogue is another top retail companies in India on the list of retail companies in
India with around 50 departmental stores in India and employing around 500 professionals
across the country. This top 10 retail company was founded in 1997 at Mumbai, India. This
leading Indian retail company has many upcoming retail brands in India for apparel, eyewear,
accessories, and watches. This top retail companies in the world also have an online shopping
portal and a presence on various B2C shopping portals like Flipkart and Amazon India.
Corporate Office: Provogue House, 1st Floor, Andheri West, Mumbai – 400053

FACTORS / COMPONENTS INFLUENCING RETIAL INDUSTRY


Demographic and Psychographic Changes: The changing demography lifestyles of the Indian
population, needs and preferences of the individuals have influenced Retail outlets (Eg.
Lifestyles etc.,). The percentage of young people in the country is increasing. The increasing
number of double income family who has more disposable income is another contributing factor
for this phenomenon.

Availability of adequate space: Most of the outlets in the unorganized sector are way too small
and are essentially spread over the counter stores, where the customer does not find sufficient
space to move around inside the retail shop. In the organized sector also, the availability of
adequate space is a challenge, further the floor spaces are sufficiently large only in a few places
in the metros.

Wide range of branded products availability: In today’s competitive market it is observed there is
many competitively priced products along with quality are seen in market. High demand for the
branded products by the customers which has been made available in the retail outlets has also
led to the growth of retail industry.

Information and Communication Technologies (ICT’s): The Technology is going to play a major
role in retail development in India. Retailers are going to experience the impact of technology in
retail. Currently most of the retailers are operating almost everything manually. A country where
almost 97 percent of retailing is in the hand of unorganized retailers it is predictable that the
retailers are having operational inefficiency. The retailers are required to adopt modern
technology to manage some of the operations like maintaining inventory, ordering and above all
keeping track of customer by maintaining consumer data base.

Efficient communication channels: Many Retail outlets are using promotional campaign as one
of the source to promote their business. Promotional offering for different set of customers,
based on the needs and preferences, huge category of products along with substitutes is available
to the individual.

Customer Requirement Management (CRM): The increasing purchasing power of the Great
Indian Middle Class is the major reason for retail rush that is being witnessed. The retailers need
to concentrate giving a great experience to the customers through efficient CRM.

RETAIL INDUSTRY SETUP IN INDIA


Retail in India has always been a lucrative business. Contemporary India is breaking the age-old
tradition of family run stores and basing success only on modern marketing principals.
Globalization of the economy has exposed the Indian consumer to a gamut of products and
brands. “Quality of life” is a buzzword with the Indian consumer today. As a result, international
brands of lifestyle products are increasingly making their presence felt in the Indian retail scene.
The Indian Retail Sector is booming and mall growth is being seen as a clear indicator of the
economic prosperity in India.

Retail formats in India


Types of Retail Chains operating in India are:
Food and Beverage

Health and Beauty

Clothing and Footwear

Home Furniture and Household Goods

Consumer Durable Goods

Leisure and Personal Goods

Revenues drivers
Growth in Indian retail industry has been driven by the country’s economic fundamentals over
the past few years. Increasing number of nuclear families, easy financing options, increase in the
population of working women, emerging opportunities in the service sector and rising disposable
incomes during the past few years have been the key growth drivers of the organized retail sector
in India. Consumers are now showing a growing preference for organized retail, which has
resulted in increased penetration.

India has the highest shop density in the world and the present retail market in India is estimated
to be US$ 200 billion of which only 3% (around US$ 64 billion) is in the organized Sector. This
organized retail sector is poised for a take off. India is ranked second in the global retail
development index out of 30 by AT Kearney. With the organized retail segment growing at the
rate of 25-30 per cent per annum, revenues from the sector are expected to triple from the current
US$ 7.7 billion to US$ 24 billion by 2010. The share of modern retail is likely to grow from its
current 3 per cent to 15 – 20 percent over the next decade. 85 percent of organized retailing is
taking place in India’s urban areas while 66 per cent of it taking place in India’s 6 main cities
alone. The growth is much faster in south India than in northern states.

According to a recent report (CII, 2001), there are some 12.08 million retail outlets in India
(compared to 90, 5000 in USA) half of which are low cost kiosks and pushcarts. The organized
sector accounts for just 2% (modern stores being only 0.5%) of the estimated $ 180 billion worth
of goods are retailed in India every year.

In India retail market expects the organized sector to be around $ 18 billion (6% of the retail
market) by 2010, which would support at least a couple of $450 million plus chains in grocery
retailing and some $ 250 million plus stores in apparels, perhaps even specialized items like
CD’s books, shoes, snacks bars etc. At present more than half of the retail sales in India are
groceries, which meet needs at the base of the ‘hierarchy theory’ in motivation. In India more
than 75 million households are now becoming global consumers, (based on their fast change in
attitudes, qualities of life styles etc). So retailers also can change their strategy in the form of
location, centrally air-conditioned, size of stores etc.
PROS AND CONSEQUENCES OF RETAIL INDUSTRY:
India’s GDP growth rate is a healthy 9% for 2005-06 – and this has had its ripple effect on all
industries- more so the Retail sector, of which only 3 % was organized until now.

The Indian retail industry accounts for 10% of GDP and 8% of employment.

India is being identified as the next big retail destination with an average three year compounded
annual growth rate of 46.64%.

The Indian economy is poised to take the third position in the world in terms of Purchasing
Power Parity by the year 2010.

The Indian Retail Market is a Rs. 1,200,000 million market as per the Images India Retail Report
2007.

Organized Retail market is zooming ahead with an annual growth rate of 30%

In India internet retailing is growing by 29% CAGR and Euromonitor report estimates that the a
CAGR 48 per cent and in value term it going to touch INR 27 billion by 2010 from INR 4 billion
in 2005. The report also predicts that the contribution of internet retailing to non- store retailing
to is likely to be 46 per cent by 2010.

Malls are fast becoming sought-after entertainment hotspots. From a situation where there were
no malls about a decade ago, the country will have over 300 malls translating to over 100 million
sq. ft. in available mall space by the end of 2007.

Food and Grocery retail holds the most potential, as almost 99% of it is unorganized. A number
of big players are entering the field of organized food retail like Reliance, Aditya Birla Group
and the Bharti Group, which has tied up with the world’s largest retailer – WalMart. All these
major players are expected to show an annual growth rate of 25- 30%.

The Retail boom has also led to the opening of a large number of single brand outlets across the
country. With big brands and bigger outlets across all segments, from Apparel and Footwear,
Watches, Books and Stationary to Jewelry and Consumer Durables, the sweep is indeed broad.

Issues with Indian Retail scenario are presented herewith:

1. Availability of Space: One more aspect of Indian Retail chains is the less floor space
availability in the Retail outlets. The kind of space that many of the Indian retail stores
have is neither effective, nor feasible.
2. Differential growth in categories: Indian retail chains have grown more in certain sectors
than others. The present trend shows growth in the lifestyle and apparel segments more
than anything else. A lot of new chains are coming up in lifestyle retailing, such as Wills
of ITC. In India, groceries are heavily controlled by the unorganized sector.
3. Brands and brand awareness:. One significant characteristic of Indian retail industry is
the miniscule number of private label brands.
Information and Communication Technology: Some of the organized sectors have made use of
the advance technology in capturing the information. Most of the organized retailers are using
available and affordable technology to capture consumer information. It is widely felt that the
key differentiator between the successful and not so successful retailers is primarily in the area of
technology.

Partnership and trust: Unlike most Western countries, Indian retailers are mainly small stores and
do not have much bargaining power with manufacturers in order to negotiate terms.

Economies of Scale: Due to low economies of scale, retailers are unable to offer significant
discounts on their own.

Challenges faced by this sector:

 The industry is facing a severe shortage of talented professionals, especially at the


middle-management level. 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. Long intermediation chains would increase the costs by 15%.
The available talent pool does not back retail sector as the sector has only recently
emerged from its nascent phase. Further, retailing is yet to become a preferred career
option for most of India’s educated class that has chosen sectors like IT, BPO and
financial services.
 Even though the government is attempting to implement a uniform value-added tax
across states, the system is currently plagued with differential tax rates for various states
leading to increased costs and complexities in establishing an effective distribution
network. Stringent labor laws govern the number of hours worked and minimum wages
to be paid leading to limited flexibility of operations and employment of part-time
employees. Further, multiple clearances are required by the same company for opening
new outlets adding to the costs incurred and time taken to expand presence in the country.
 The retail sector does not have ‘industry’ status yet making it difficult for retailers to
raise finance from banks to fund their expansion plans. Government restrictions on the
FDI is leading to an absence of foreign players resulting into limited exposure to best
practices. Non- availability of government land and zonal restrictions has made it
difficult to find a good real estate in terms of location and size. Also lack of clear
ownership titles and high stamp duty has resulted in disorganized nature of transactions.
 Retailing is a `Technology-Intensive’ industry. It is quoted that everyday at least 500
gigabytes of data are transmitted via satellite from the 1,200 point-of-sales counters of JC
Penney to its corporate headquarters. Successful retailers today work closely with their
vendors to predict consumer demand, shorten lead times, reduce inventory holding and
thereby, save cost. Wal-Mart pioneered the concept of building a competitive advantage
through distribution and information systems in the retailing industry. They introduced
two innovative logistics techniques – cross-docking and electronic data interchange.

SUGGESTIVE MEASURES
Retailing, as is at a nascent stage in our country. Most organized players have managed to put the
front ends in place, but these are relatively easy to copy. The relatively complicated information
systems and underlying technologies are in the process of being established. Most grocery
retailers such as Food World have started tracking consumer purchases through CRM. The
lifestyle retailers through their `affinity clubs’ and `reward clubs’ are establishing their
processes. The traditional retailers will always continue to exist but organized retailers are
working towards revamping their business to obtain strategic advantages at various levels –
market, cost, knowledge and customer.

Online systems link point-of-sales terminals to the main office where detailed analyses on sales
by item, classification, stores or vendor are carried out online. Besides vendors, the focus of the
retailing sector is to develop the link with the consumer. `Data Warehousing’ is an established
concept in the advanced nations. It will be technology that will help the organized retailer score
over the unorganized players, giving both cost and service advantages.

Supply Chain: The wastage occurs because of multiple points of manual handling, poor
packaging, and lack of availability of temperature controlled vans. The most important part of
retailing business is to find a balance between investing in front-end and back-end operations.
The channel dynamics is going to change over next couple of years as the retailers start growing
in size and their bargaining power is likely to increase. New entrants like Reliance Retail is
believed to be investing substantially in the supply chain as it is started its venture by opening
‘Reliance Fresh’ stores.

Human resource: The country also possesses a rapidly growing cadre of promising professional
managers, a large educational system, and there is a cultural willingness among employees to
work cooperatively with management. If, we use these resources properly we can develop a large
talent pool to fulfill the growing demand for various positions in the retail organization.

Foreign Direct Investment : The country is expecting a strong economic growth of about 8-10%
per year and this can be achieved by raising the rate of investments as well as by generating
demand for the increased goods and services produced.

The infusion of much-needed foreign investment would result in: (1) increase in the share of the
organized retail sector (2) increase in employment (3) increase supply chain efficiency (4) lower
prices, superior quality for consumers, (5) enhanced opportunity for domestic operators (6)
making shoppers feel international shopping experience.

Differentiating strategies – Value for money, shopping experience, variety, quality, discounts
and advanced systems and technology in the back-end, change in the equilibrium with
manufacturers and a thorough understanding of the consumer behavior.

The product centric strategies at the retailer level include the strategies regarding availability of
an optimal product range comprising of a broad product range, price and quality, innovative and
new products enhances consumer satisfaction. The consumer centric strategies are those that are
devised to positively affect consumer preferences for a particular category. The point of sale is
the key to the process of consumer choice. The effectiveness of services offered, including after
sales services, trade promotional programs, and relationship marketing enhances consumer
satisfaction

CONCLUSION

Retailing, as is at a nascent stage in our country. The increasing importance of the supermarkets
is one of the several changes taking place in the food chain. The advent of supermarkets in the
rural communities has opened up unprecedented opportunities for a considerable number of
(mostly large) farmers, albeit generating negative impact on small producers unable to meet the
stringent requirements of supermarket chains and other modern food supply channels.

Growth in Indian retail industry has been driven by the country’s economic fundamentals over
the past few years. Increasing number of nuclear families, easy financing options, increase in the
population of working women, emerging opportunities in the service sector and rising disposable
incomes during the past few years have been the key growth drivers of the organized retail sector
in India. The proportion of sales through organized retailing is estimated to increase to around
6% by 2010. Indian retail is estimated to be almost worth a whopping $200 billion by 2016

The relatively complicated information systems and underlying technologies are in the process of
being established. The traditional retailers will always continue to exist but organized retailers
are working towards revamping their business to obtain strategic advantages at various levels –
market, cost, knowledge and customer. It is therefore essential for the country to concentrate on
the development of these sector by appropriate utilization of Infrastructure, Distribution network,
Human Resource, Technological advancement with the developmental policies focusing on
national as well as international assistance programmes include actions that will tap the new
opportunities opening up in Retail Industry in order to sustain the competitive environment.

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