RKDF SCHOOL OF ENGINEERING INDORE

MAJOR PROJECT REPORT

On

A Study of Supply Chain Management of Reliance Fresh, Indore

MBA (2009-2011)

Submitted To:Prof. Rasmi Dubey

Submitted By:Shailendra Sahu

DECLARATION

We hereby declare that the Minor Research Project on A Comparative study of FM channels in Indore city is a record of independent work carried out by our team, towards partial fulfillment of the requirements for MBA course of RKDF SCHOOL OF ENGINEERING Indore. This has not been submitted in part or full towards any other degree or RKDF SCHOOL OF ENGINEERING Indore.

Date: 15/06/2011 Singh Place: Indore

Sumit Pratap

CERTIFICATION OF SUPERVISOR

This is to certify that the minor research project work entitledA Study of Supply Chain Management of Reliance Fresh, Indore city is being submitted by Shailendra Sahu for the partial fulfillment of the requirement for the award of the degree of MBA from RKDF School of engineering is completed under my supervision and to my entire satisfaction this project report submitted embodies their genuine work. During this project, I found them responsible, sincere and hard working. I wish them all the best for their future endeavors.

Date Place Rasmi Dubey

Guided By Prof.

ACKNOWLEDGEMENT

A teacher is a perennial source of inspiration and guidance in all the academic activities of his students throughout. We wholeheartedly extend our Deep and sincere gratitude to Dr. Karuna.Jain HOD of MBA department,For her continuous guidance and help provided for completing this research study. We are also thankful to Prof. Rasmi Dubey, from R.K.D.F. for sharing his expertise in the field of Statistics with us whenever we approached her.We also express our gratitude to all friends and family members for extending their helping hand whenever we approached them. Without their help this research could not have been presented in a proper manner.

Shailendra Sahu

Contents
CHAPTER -1 INTRODUCTION
1.1 Introduction

page no.
7

FM broadcasting 1.1.1 Modulation 1.1.2 Pre Emphasis and De emphasis 1.1.3 Quadraphonic FM 1.1.4 FM Broadcasting in India 1.2 1.3 1.4 Conceptual Frame Work Variables History 1.4.1 Radio Mirchi 1.4.2 Red FM 1.4.3.My FM 1.4.4.Big FM 1.4.5.Vividh Bharti 11 14 12

1.5 1.6

Literature Review Rationale

24 24

1.7

Objectives

25

CHAPTER -2 RESEARCH METHODOLOGY

2.1

Period of Study

26

2.2 Research Design

26

2.3

Tools for Data Collection

30

2.4

Tools for Data Analysis

31

CHAPTER -3 RESULT AND DISCUSION

3.1

Table and Graphs

32

3.2 Discussion

32

CHAPTER-4 CONCLUSION

4.1 Conclusion

49

4.2

Implications

49

4.3 Suggestions

50

4.4

Scope for Future Work

50

4.5

References
4.5.1

51

Bibliography

4.5.2 Webliography

4.6 Annexure 4.6.1 Questionnaire 4.6.2 Tabulation of result 4.6.3 Result 52 53 53

INTRODUCTION:-

RELIANCE FRESH
The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest private sector enterprise, with businesses in the energy and materials value chain. Group's annual revenues are in excess of USD 27 billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India. Reliance Fresh is the convenience store format which forms part of the retail business of Reliance Industries of India which is headed by Mukesh Ambani. Reliance plans to invest in excess of Rs 25000 crores in the next 4 years in their retail division. The company already has in excess of 560 reliance fresh outlets across the country. These stores sell fresh fruits and vegetables, staples, groceries, fresh juice bars and dairy products. About Reliance Fresh a convenient store format, is governed by the Mukesh Ambani and is the most important part of Reliance Industries retail Business. Reliance Ltd. has planned to invest more than Rs. 25000 crores in the retail division. It also comprises more than 560 reliance fresh stores all over the country. The outlet sells fresh fruits, staples, dairy products, fresh juice bars, groceries and vegetables. A distinctive Reliance Fresh outlet is around 3000 to 4000 sq. feet and accommodates catchment area of one to three Kilometers.

History of Reliance Fresh

The Reliance Retail had to face various difficulties before the launch of Reliance fresh, because of the various circumstances prevailing in Orissa, West Bengal and UP, along with the news focusing on the dearth of vegetables and fruits stocks. The retail business of Reliance then minimized its exposure in vegetable and fruit business, as a result established Reliance fresh positioning a pure super market play focusing on various categories like IT, consumer durables, home, FMCG and food. The retail company of Reliance may not supply the vegetables and fruits in a few states, the Reliance Fresh decided to not to race with local wholesalers partly because of the political reasons as well as its incapability to maintain a healthy supply chain.

The Reliance Retail had to face various difficulties before the launch of Reliance fresh, because of the various circumstances prevailing in Orissa, West Bengal and UP, along with the news focusing on the dearth of vegetables and fruits stocks. The retail business of Reliance then minimized its exposure in vegetable and fruit business, as a result established Reliance fresh positioning a pure super market play focusing on various categories like IT, consumer durables, home, FMCG and food. The retail company of Reliance may not supply the vegetables and fruits in a few states, the Reliance Fresh decided to not to race with local wholesalers partly because of the political reasons as well as its incapability to maintain a healthy supply chain.

Growth of Reliance Fresh

The first ever a Reliance Fresh store was established in Hyderabad, wherein the company, mainly focused on the fresh produced vegetables and fruits at comparatively low price along with an introduction of farm to fork theory.

Growth through Value Creation

With a vision to generate inclusive growth and prosperity for farmers, vendor partners, small shopkeepers and consumers, Reliance Retail Limited (RRL), a subsidiary of RIL, was set up to lead Reliance Groups foray into organized retail. Since its inception in 2006, Reliance Retail Limited (RRL) has grown into an organisation that caters to millions of customers, thousands of farmers and vendors. Based on its core growth strategy of backward integration, RRL has made rapid progress towards building an entire value chain starting from the farmers to the end consumers. Reliance Retail continued to expand presence of its value and specialty formats. During the year, Reliance Retail opened 90 new stores spanning across 'value' and 'specialty' segments. In-store initiatives, wider product choice and value merchandising enabled the business to achieve robust growth during this period. Its presence in the optics business is in partnership with Grand Vision. 51 new stores were added during FY-11 taking the total presence to 100 stores across key markets in the country. The retail chain offers single brand optical products including Vision Express frames, lenses, contact lenses, sunglasses, solutions and accessories. For the very first time, consumers in India got the opportunity to experience Hamleys, which is considered to be the world's most wonderful toy shop. The brand was launched in India with opening up of 2 stores during the year. I-Store by Reliance Digital is a one-stop-shop for all Apple products and services. There are 17 such stores currently operational. Reliance Brands also announced exclusive licensing arrangement with two leading international brands:

Steve Madden, a leading designer, wholesaler and retailer of fashion-forward footwear and accessories for women, men and children.

Quiksilver, a leading outdoor sports lifestyle company to launch their core brands 'Quiksilver' and 'Roxy'. Across India, Reliance Retail serves over 2.5 million customers

every week. Its loyalty programms, "Reliance One", has the patronage of more than 6.75 million customers.

This was the idea, which was anticipated by the company was to take the supply direct from the farmers and then sell straightaway to the consumers removing the middle-men off the beaten track. Reliance introduced several formats in the marketplace to cater to needs of common people, which includes Reliance Fresh, Reliance Super, Reliance Footprint, Reliance Timeout, Reliance Jewels, Reliance wellness, Reliance Mart and Reliance Digital, to name a few. In addition to this, the Reliance Retail also entered into a treaty with Apple, which is a leading Information Technology company, to set up a series of Apple Specialty Outlets branded as IStore, with its first ever store in Bangalore. With an idea to produce inclusive prosperity and growth for farmers, consumers, small shopkeepers and vendor partners, Reliance Retail was set up in order to lead the foray of Reliance Group into an organized retail.

Consumer reports on retail outlets

Reliance Fresh came as a gust of "fresh" air to the beleaguered citizens of Pune, aching for fresh vegetables and a swank environment to buy their veggies in. I was apprehensive, as all conscientious people are, about what would happen to the vegetable vendors. However, I motivated myself to walk in to the outlet at my doorstep in Pashan, Pune. The interiors were somewhat crowded, but the lighting and smiles made the products look fresher than they were. I picked up some stuff and headed to the cash counter. To my chagrin, everything came in plastic bags. Couldn't I carry my own cloth bags instead? Did I have to carry plastic? My family and I have refrained so far from using plastic. We carry our own bags, but this was Reliance! Somewhere, the dam gave way, a little at a time. Personal cloth bags were allowed in. But the plastic continues. Consumers walk out of the store swinging or dangling plastic bags stamped with the Reliance Fresh logo. They look colorful and cheerful. But they fill our garbage bins and our sleeping conscience. Not many buy the idea of using personal bags. Reliance continues to swarm households with the ubiquitous green, red, and white, and housewives stack these gaily. The other day, I saw a cow trying to nibble at one such bag. Will Reliance stoop to conquer with a conscientious change of material? Is it too difficult to avail of paper bags for the conglomerate that straddles the Indian economy?

Reliance Retail launches 6 new formats

Reliance Fresh started the quarter with 329 stores and opened an additional 112 stores to end the quarter with 441 stores in over 45 towns and cities. As on date there are 453 Reliance Fresh stores operational across India. Reliance Digital launched 2 additional stores in Bangalore and Navi Mumbai respectively bringing the total Reliance Digital stores to 3

Reliance Industries on Sunday launched its first retail format called Reliance Fresh in Hyderabad. Spread over 2,000-5,000 sq ft, 11 such Reliance Fresh

The Reliance Retail had to face various difficulties before the launch of Reliance fresh, because of the various circumstances prevailing in Orissa, West Bengal and UP, along with the news focusing on the dearth of vegetables and fruits stocks. The retail business of Reliance then minimized its exposure in vegetable and fruit business, as a result established Reliance fresh positioning a pure super market play focusing on various categories like IT, consumer durables, home, FMCG and food The company may not stock fruit and vegetables in some states. Though Reliance Fresh is not exiting the fruit and vegetable business altogether, it has decided not to compete with local vendors partly due to political reasons, and partly due to its inability to create a robust supply chain. This is quite different from what the firm had originally planned. When the first Reliance Fresh store opened in Hyderabad last October, not only did the company said the stores main focus would be fresh produce like fruits and vegetables at a much lower price, but also spoke at length about its farm-to-fork theory. The idea the company spoke about was to source from farmers and sell directly to the consumer removing middlemen out of the way.

SUPPLY CHAIN MANAGEMENT

Fierce competition in todays global markets, the introduction of products with shorter life cycles, and the heightened expectations of customers have forced business enterprises to invest in, and focus attention on, their supply chains. This, together with continuing advances in communications and transportation technologies (e.g., mobile communication, Internet, and overnight delivery), has motivated the continuous evolution of the supply chain and of the techniques to manage it effectively. In a typical supply chain, raw

materials are procured and items are produced at one or more factories, shipped to warehouses for intermediate storage, and then shipped to retailers or customers. Consequently, to reduce cost and improve service levels, effective supply chain strategies must take into account the interactions at the various levels in the supply chain. The supply chain, which is also referred to as the logistics network, consists of suppliers, manufacturing centers, warehouses, distribution centers, and retail outlets, as well as raw materials, work-in-process inventory, and finished products that flow between the facilities . In this book, we present and explain concepts, insights, practical tools, and decision support systems important for the effective management of the supply chain. But what exactly is supply chain management? We define it as follows: Supply chain management is a set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses, and stores, so that merchandise is produced and distributed at the right quantities, to the right locations, and at the right time, in order to minimize systemwide costs while satisfying service level requirements. This definition leads to several observations. First, supply chain management takes into consideration every facility that has an impact on cost and plays a role in making the product conform to customer requirements: from supplier and manufacturing facilities through warehouses and distribution centers to retailers and stores. Indeed, in some supply chain analysis, it is necessary to account for the suppliers suppliers and the customers customers because they have an impact on supply chain performance. Second, the objective of supply chain management is to be efficient and cost-effective across the entire system; total systemwide costs, from transportation and distribution to inventories of raw materials, work in process, and finished goods, are to be Figure 1-1 minimized. Thus, the emphasis is not on simply minimizing transportation cost or reducing inventories but, rather, on taking a systems approach to supply chain management. Finally, because supply chain management revolves around efficient integration of suppliers, manufacturers, warehouses, and stores, it encompasses the firms activities at many levels, from the strategic level through the tactical to the operational level. A conscious selection of Distribution Channels to move products from the manufacturer to end-user. The choice of distribution channel varies according

to products. Industrial and engineered products require a much different channel than a standardized product. Direct, manufacturer representatives, and distributors sell through the various distribution channels.

KEY ISSUES IN SUPPLY CHAIN MANAGEMENT

In this section, we introduce some of the supply chain management issues that we discuss in much more detail throughout the remaining chapters. These issues span a large spectrum of a firms activities, from the strategic through the tactical to the operational level: The strategic level deals with decisions that have a long-lasting effect on the firm. This includes decisions regarding product design, what to make internally and what to outsource, supplier selection, and strategic partnering as well as decisions on the number, location, and capacity of warehouses and manufacturing plants and the flow of material through the logistics network. The tactical level includes decisions that are typically updated anywhere between once every quarter and once every year. These include purchasing and production decisions, inventory policies, and transportation strategies, including the frequency with which customers are visited. The operational level refers to day-to-day decisions such as scheduling, lead time quotations, routing, and truck loading. Below we introduce and discuss some of the key issues, questions, and trade-offs associated with different decisions. Distribution Network Configuration Consider several plants producing products to serve a set of geographically dispersed retailers. The current set of warehouses is deemed inappropriate, and management wants to reorganize or redesign the distribution. Retailers that need to decide how much they can collaborate with each other. For example, should competing dealers selling the same brand share inventory? If so, what is their competitive advantage? Supply Chain Integration and Strategic Partnering As observed earlier, designing and implementing a globally optimal supply chain is quite difficult because of its dynamics and the conflicting objectives employed by different facilities and partners. Nevertheless, Dell, Wal-

Mart, and Procter & Gamble success stories demonstrate not only that an integrated, globally optimal supply chain is possible, but that it can have a huge impact on the companys performance and market share. Of course, one can argue that these three examples are associated with companies that are among the biggest companies in their respective industries; these companies can implement technologies and strategies that very few others can afford. However, in todays competitive markets, most companies have no choice; they are forced to integrate their supply chain and engage in strategic partnering. This pressure stems from both their customers and their supply chain partners. How can integration be achieved successfully? Clearly, information sharing and operational planning are the keys to a successfully integrated supply chain. But what information should be shared? How should it be used? How does information affect the design and operation of the supply chain? What level of integration is needed within the organization and with external partners? Finally, what types of partnerships can be implemented, and which type should be implemented for a given situation? Outsourcing and Off shoring Strategies Rethinking your supply chain strategy not only involves coordinating the different activities in the supply chain, but also deciding what to make internally and what to buy from outside sources. How can a firm identify what manufacturing activities lie in its set of core competencies, and thus should be completed internally, and what product and components should be purchased from outside suppliers, because these manufacturing activities are not core competencies? Is there any relationship between the answer to that question and product architecture? What are the risks associated with outsourcing and how can these risks be minimized? When you do outsource, how can you ensure a timely supply of products? And when should the firm keep dual sources for the same component? Finally, even if the firm decides not to outsource activities, when does it make sense to move facilities to the Far East? What is the impact of off shoring on inventory levels and the cost of capital? What are the risks? Product Design Effective design plays several critical roles in the supply chain. Most obviously, certain product designs may increase inventory holding or transportation costs relative to other designs, while other designs may facilitate a shorter manufacturing lead time. Unfortunately, product redesign is often expensive. When is it worthwhile to redesign products so as to reduce logistics costs or supply chain lead times? Is it possible to leverage product design to compensate for uncertainty in customer demand? Can one quantify the amount of savings resulting from such a strategy? What changes should be made in

the supply chain to take advantage of the new product design? Finally, new concepts such as mass customization are increasingly popular. What role does supply chain management play in the successful implementation of these concepts? Information Technology and Decision-Support Systems Information technology is a critical enabler of effective supply chain management.

DESIGNING AND MANAGING THE SUPPLY CHAIN

Current interest in supply chain management is motivated by the opportunities that appeared due to the abundance of data and the savings that can be achieved by sophisticated analysis of these data. The primary issue in supply chain management is not whether data can be received, but what data should be transferred; that is, which data are significant for supply chain management and which data can safely be ignored? How frequently should data be transferred and analyzed? What is the impact of the Internet? What is the role of electronic commerce? What infrastructure is required both internally and between supply chain partners? Finally, since information technology and decision-support systems are both available, can these technologies be viewed as the main tools used to achieve competitive advantage in the market? If they can, then what is preventing others from using the same technology? Customer Value Customer value is the measure of a companys contribution to its customer, based on the entire range of products, services, and intangibles that constitute the companys offerings. In recent years, this measure has superseded measures such as quality and customer satisfaction. Obviously, effective supply chain management is critical if a firm wishes to fulfill customer needs and provide value. But what determines customer value in different industries? How is customer value measured? How is information technology used to enhance customer value in the supply chain? How does supply chain management contribute to customer value? How do emerging trends in customer value, such as development of relationships and experiences, affect supply chain management? What is the relationship between product price and brand name in the conventional world and in the online world? Smart Pricing Revenue management strategies have been applied successfully in industries such as airlines, hotels, and rental cars. In recent years, a number of manufactures, retailers, and carriers have applied a variation of these techniques to improve supply chain

performance. In this case, the firm integrates pricing and inventory (or available capacity) to influence market demand and improve the bottom line. How is this done? Can smart pricing strategies be used to improve supply chain performance? What is the impact of rebate strategies on the supply chain? This chapter aims to give the supply chain management side of the theoretical background for the supply chain modeling efforts which are described in chapters gif and gif. Supply chain management is a vast area. This chapter will emphasize the aspects of customer service and inventory management, and how these are interrelated with flexibility. Though the notion of agent-based computer systems have not yet been presented, the nature of the Integrated Supply Chain Management Project has been a decisive factor on the arrangement of the chapter. The chapter is structured as follows: Section gif gives a first introduction to the term supply chain, Section gif treats some important issues of supply chain management, and Section gif deals with approaches to meet current challenges and improve supply chain performance. There seems to be a universal agreement on what a supply chain is. Jayashankar et al. [25] defines a supply chain to be a network of autonomous or semiautonomous business entities collectively responsible for procurement, manufacturing, and distribution activities associated with one or more families of related products. Lee and Billington [17] has a similar definition: A supply chain is a network of facilities that procure raw materials, transform them into intermediate goods and then final products, and deliver the products to customers through a distribution system. And Ganeshan and Harrison [12] has yet another analogous definition: A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers. In this paper we use the term supply chain as it is defined by the last of the quotes above.

Review of literature:This part is mandatory. However it will be a good ideaincludes information in the project work. However dont exceed fivepages. If you are doing research on motivation you may include latest research on motivation as literature survey According to Management Guru PHILIP KOTLER, Selling is offering to exchange something of value for something else. The something of value being offered may be tangible or intangible. The something else, usually money, is most often seen by the seller as being of equal or greater value than that being offered for sale. Another person or organization expressing an interest in acquiring the offered thing of value is referred to as a potential buyer, prospective customer or prospect. Buying and selling are understood to be two sides of the same "coin" or transaction. Both seller and buyer engage is in a process of negotiation to consummate the exchange of values. The exchange, or selling, process has implied rules and identifiable stages. It is implied that the selling process will proceed fairly and ethically

so that the parties end up nearly equally rewarded. The stages of selling, and buying, involve getting acquainted, assessing each partys need for the others item of value, and determining if the values to be exchanged are equivalent or nearly so, or, in buyer's terms, "worth the price. Distribution channels may not be restricted to physical products alice from producer to consumer in certain sectors, since both direct and indirect channels may be used. Hotels, for example, may sell their services (typically rooms) directly or through travel agents, tour operators, airlines, tourist boards, centralized reservation systems, etc. process of transfer the products or services from Producer to Customer or end user. A distribution channel usually consists of a chain of intermediaries, for example wholesalers and retailers, that is designed to move goods from the point of production to the point of consumption in the most efficient way. According to SAFIQE ISSANI, The organizational units set up the framework of sales processing with the SD system. The master records of sales and distribution (for example, customer master records and pricing elements) as well as the documents used in processing (for example, orders and delivery documents) are entered in dependency with the organizational structures. The data in a master record is only valid within a certain part of the organization. The sales and distribution documents are entered in the respective sub area of the organization. The master data valid there is automatically included in the sales & distribution documents. Different control criteria are specified for the management and processing of the master data depending on the organizational units. In order to simplify master record and document entry, the organizational units can be stored as user parameters in the user master record. It is not necessary to specify the organizational units since the values are proposed automatically.

RETAIL SCENARIO IN INDIA

As the corporate the Piramals, the Tatas, the Rahejas, ITC Ltd, S. Kumars, RPG Enterprises, Shoppers Stop, Pantaloons, Reliance Retail, Vishal Mega Mart, Aditya Birla Group, Subhiksha, Landmark Group, True Mart race to revolutionize the retailing sector, retail as an

industry in India is coming alive. Across the country, retail sales in real terms are predicted to rise more rapidly than consumer expenditure during 2003-08. The forecast growth in real retail sales during 2003- 2008 is 8.3% per year, compared with 7.1% for consumer expenditure. Modernization of the Indian retail sector will be reflected in rapid growth in sales of supermarkets, departmental stores and hyper marts. Sales from these large-format stores are to expand at growth rates ranging from 24% to 49% per year during 2003-2008, according to a latest report by Euro monitor International, a leading provider of global consumer-market intelligence. A. T. Kearney Inc. places India 6th on a global retail development index. The country has the highest per capita outlets in the world - 5.5 IBSAR Pune (satishpgoyal@yahoo.co.in) Page 20 outlets per 1000 population. Around 7% of the population in India is engaged in retailing, as compared to 20% in the USA. The factors responsible for the development of the retail sector in India can be broadly summarized as follows:

Rising incomes and improvements in infrastructure are enlarging consumer markets and accelerating the convergence of consumer tastes.

Looking at income classification, the National Council of Applied Economic Research (NCAER) classified approximately 50% of the Indian population as low income in 199495; this has declined to 17.8% in 2006-07.

Liberalization of the Indian economy which has led to the opening up of the market for consumer goods has helped the MNC brands like Kellogg, Unilever, Nestle, etc. to make significant inroads into the vast consumer market by offering a wide range of choices to the Indian consumers.

Shift in consumer demand to foreign brands like McDonalds, Sony, Panasonic, etc.

The internet revolution is making the Indian consumer more accessible to the growing influences of domestic and foreign retail chains. Reach of satellite T.V. channels is helping in creating awareness about global products for local markets. About 47% of Indias population is under the age of 25; and this will increase to 55% by 2015. This young population, which is technology-savvy, watch more than 50 TV satellite channels, and display the highest propensity to spend, will immensely contribute to the growth of the retail sector in the country. As India continues to get strongly integrated with the IBSAR Pune (satishpgoyal@yahoo.co.in) Page 21 world economy riding the waves of globalization, the retail sector is bound to take big leaps in the years to come. The Indian retail sector is estimated to have a market size of about $ 180 billion; but the organized sector represents only 3% share of this market. Most of the organized retailing in the country has just started recently, and has been concentrated mainly in the metro cities. India is the last large Asian economy to liberalize its retail sector. In Thailand, more than 40% of all consumer goods are sold through the super markets and departmental stores. A similar phenomenon has swept through all other Asian countries. Organized retailing in India has a huge scope because of the vast market and the growing consciousness of the consumer about product quality and services. A study conducted by Fitch, expects the organized retail industry to continue to grow rapidly, especially through increased levels of penetration in larger towns and metros and also as it begins to spread to smaller cities and B class towns. Fuelling this growth is the growth in development of the retail-specific properties and malls. According to the estimates available with Fitch, close to 25mn sq. ft. of retail space is being developed and will be available for occupation over the next 36-48 months. Fitch expects organized retail to capture 15%-20% market share by 2010. A McKinsey report on India says organized retailing would increase the efficiency and productivity of entire gamut of economic activities, and would help in achieving higher GDP growth. At 6%, the share of employment of retail in India is low, even when compared to Brazil (14%), and Poland (12%). Total Private Consumption Expenditure in India 375 Billion USD Retail Sale 205 Billion USD

Organized Retail 6.2 Billion USD (3%) Retailing 35% of GDP

RETAILING FORMATS IN INDIA Malls: The largest form of organized retailing today. Located mainly in metro cities, in proximity to urban outskirts. Ranges from 60,000 sq ft to 7,00,000 sq ft and above. They lend an ideal shopping experience with an amalgamation of product, service and entertainment, all under a common roof.Examples include Shoppers Stop, Piramyd, Pantaloon. Specialty Stores: Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer Crossword, RPG's Music World and the Times Group's music chain Planet M, are focusing on specific market segments and have established themselves strongly in their sectors. Discount Stores: As the name suggests, discount stores or factory outlets, offer discounts on the MRP through selling in bulk reaching economies of IBSAR Pune (satishpgoyal@yahoo.co.in) Page 23 scale or excess stock left over at the season. The product category can range from a variety of perishable/ non perishable goods. Department Stores: Large stores ranging from 20000-50000 sq. ft, catering to a variety of consumer needs. Further classified into localized departments such as clothing, toys, home, groceries, etc. Department Stores: Departmental Stores are expected to take over the apparel business from exclusive brand showrooms. Among these, the biggest success is K Raheja's Shoppers Stop, which started in Mumbai and now has more than seven large stores (over 30,000 sq. ft) across India and even has its own in store brand for clothes called Stop!. Hyper marts/Supermarkets:

Large self service outlets, catering to varied shopper needs are termed as Supermarkets. These are located in or near residential high streets. These stores today contribute to 30% of all food & grocery organized retail sales. Super Markets can further be classified in to mini supermarkets typically 1,000 sq ft to 2,000 sq ft and large supermarkets ranging from of 3,500 sq ft to 5,000 sq ft. having a strong focus on food & grocery and personal sales. Convenience Stores: These are relatively small stores 400-2,000 sq. feet located near residential areas. They stock a limited range of high-turnover convenience products and are usually open for extended periods during the day, seven days a week. Prices are slightly higher due to the convenience premium. MBOs: Multi Brand outlets, also known as Category Killers, offer several brands across a single product category. These usually do well in busy market places and Metros. RELIANCE GROUP Founder Chairman of Reliance Group "Growth has no limit at Reliance. I keep revising my Vision. Only when you can dream it, you can do it."

Dhirubhai H. Ambani Founder Chairman Reliance Group December 28, 1932 - July 6, 2002 Shri Dhirubhai Ambani was an exceptional human being and an outstanding leader. He dared to dream on a scale unimaginable before in Indian industry. His life and achievements prove that backed by confidence, courage and conviction, man can achieve the impossible. From a humble beginning, he went on to create an enviable business empire within a span of just 25 years. The US$ 54 billion Reliance Group is a living testimony to his indomitable will, single-minded dedication and an unrelenting commitment to his goals. The Group's track record of consistent growth is unparalleled in Indian industry and perhaps internationally too. Today, the Group's turnover represents nearly 3 percent of India's GDP.

The corporate philosophy he followed was short, simple and succinct - "Think big. Think differently. Think fast. Think ahead. Aim for the best". He inspired the Reliance team to do better than the best not only in India but in the world. He was probably the first Indian businessman to recognize the strategic significance of investors and discover the vast untapped potential of the capital markets and channelized it for the growth and development of industry. He was supremely confident that finance would never be a constraint in executing his projects because, as he said proudly, Indian investors would provide him with the necessary resources. For him, his people were his most important asset. He scouted around for the best and most talented professionals, nurtured them and continuously propelled them to aim for still higher goals. These highly motivated people comprise the core of what he named: "The Reliance Family". Shri Dhirubhai Ambani visualized the growth of Reliance as an integral part of his grand vision for India. He was convinced that India could become an economic superpower within a short period of time and wanted Reliance to play an important role in realizing this goal. The Bhagavad Gita states, "The actions of a great man are an inspiration for others. Whatever he does, becomes a standard for others to follow." This certainly applies to Shri Dhirubhai Ambani. The Reliance Group is India's largest private sector enterprise, with businesses in the energy and materials value chain. Group's annual revenues are in excess of USD 22 billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India. Backward vertical integration has been the cornerstone of the evolution and growth of Reliance. Starting with textiles in the late seventies, Reliance pursued a strategy of backward vertical integration - in polyester, fiber intermediates, plastics, petrochemicals, petroleum refining and oil and gas exploration and production - to be fully integrated along the materials and energy value chain. The Group's activities span exploration and production of oil and gas, petroleum refining and marketing, petrochemicals (polyester, fiber intermediates, plastics and chemicals), textiles and retail. Reliance enjoys global leadership in its businesses, being the largest polyester yarn and fiber producer in the world and among the top five to ten producers in the world in major petrochemical products. The Group exports products in excess of USD 7

billion to more than 100 countries in the world. There are more than 25,000 employees on the rolls of Group Companies. Major Group Companies are Reliance Industries Limited (including main subsidiaries Reliance Petroleum Limited and Reliance Retail Limited), Indian Petrochemicals Corporation Limited and Reliance Industrial Infrastructure Limited.

. Mr. Mukesh Ambani Chairman & Managing Director Mr. Mukesh D. Ambani, age 49, is a Chemical Engineer from the University of Bombay and pursued MBA from Stanford University USA. He is the son of Mr. Dhirubhai H. Ambani, Founder Chairman of the Company Mukesh Ambani is the chairman, managing director and the largest shareholder of Reliance Industries, India's largest private sector company and a Fortune 500 Company. His personal stake in Reliance Industries is 48%. His wealth is US$ 20.1 billion as of March 2007, making him the world's 14th richest person and the second richest person in India. Mukesh and younger brother Anil are sons of the late founder of Reliance Industries. Mukesh Ambani joined Reliance in 1981 and initiated Reliance's backward integration from textiles into polyester fibres and further into petrochemicals. In this process, he directed the creation of 60 new, world-class manufacturing facilities involving diverse technologies that have raised Reliance's manufacturing capacities from less than a million tonnes to twelve million tonnes per year. Mukesh Ambani is also steering Reliance's initiatives in a world scale, offshore, deep water oil and gas exploration and production program, a pan-India petroleum retail network involving 5,800 outlets and a research-led life sciences initiative covering medical, plant andindustrial biotechnology. Mr. Mukesh D. Ambani joined Reliance in 1981 and initiated Reliance's backward integration from textiles into polyester fibers and further into petrochemicals. In this process, he directed the creation of several new and large world-class manufacturing facilities involving diverse technologies that have raised Reliance's petrochemicals manufacturing

capacities from less than a million tones to over thirteen million tones per year. He directed and led the creation of the world's largest grassroots petroleum refinery at Jamnagar, India, with a present capacity of 660,000 barrels per day (33 million tones per year) integrated with petrochemicals, power generation and port and related infrastructure. He had set up the Reliance's communications technology initiative that is the largest and most complex information and communications technology initiative in the world. Mr. Ambani is steering Reliance's initiatives in a world scale, offshore and onshore oil and gas exploration and production program, creation of a pan-India petroleum retail network and setting up of a new export oriented refinery through RIL's subsidiary Reliance Petroleum Limited (RPL) with a capacity of approximately 580,000 barrels per stream day integrated with a 0.9 MMTPA polypropylene plant. Mr. Ambani's Achievements include: Conferred 'ET Business Leader of the Year' Award by The Economic Times (India) in the year 2006. Had the distinction and honor of being the co-chair at the World Economic Forum Annual Meeting 2006 in Davos, Switzerland. Ranked 42nd among the 'World's Most Respected Business Leaders' and second among the four Indian CEOs featured in a survey conducted by Pricewaterhouse Coopers and published in Financial Times, London, November 2004. Conferred the World Communication Award for the 'Most Influential Person in Telecommunications in 2004' by Total Telecom, October 2004. Chosen 'Telecom Man of the Year 2004' by Voice and Data magazine, September 2004. Ranked 13th in Asia's Power 25 list of 'The Most Powerful People in Business' published by Fortune magazine, August 2004. 30 Growth is Life Conferred the 'Asia Society Leadership Award' by the Asia Society, Washington D.C., USA, May 2004. Ranked No.1 for the second consecutive year, in The Power List 2004 published by India Today, March 2004.Mr. Mukesh D. Ambani is the Chairman of Indian PetrochemicalsCorporation Limited, Reliance Petroleum Limited and Reliance Retail Limited. He is member of the Shareholders'/ Investors' Grievance Committee of the Company. Major Subsidiaries & Associates:The Reliance Industries Limited is the flagship company of Reliance Group which has ownership interest in the following subsidiaries & associates

Major Subsidiaries Reliance Petroleum Limited Reliance Netherlands BV (including Trevira) Reliance Retail Limited Ranger Farms Private Limited Retail Concepts and Services Private Limited Reliance Retail Insurance Broking Limited Reliance Dairy Foods Limited Reliance Retail Finance Limited RESQ Limited Reliance digital Retail Limited Reliance Service Solutions Limited Reliance Jamnagar Infrastructure Limited Reliance Haryana SEZ Limited Reliance Industrial Investment & Holdings Limited Reliance Ventures Limited Reliance Strategic Investments Limited Reliance Exploration & Production - DMCC Reliance Industries (Middle East) DMCC Reliance Global Management Services (P) Limited Reliance Commercial Associates Private Limited RIL (Australia) Pty Limited Major Associates Indian Petrochemicals Corporation Limited Reliance Industrial Infrastructure Limited RELIANCE RETAIL LIMITED Growth through Value Creation

Reliance is gearing up to revolutionize the retailing industry in India. Towards this end, they are aggressively working on introducing a pan- India network of retail outlets in multiple formats. A world class shopping environment, state of art technology, a seamless supply chain infrastructure, a host of unique value-added services and above all, unmatched customer experience, is what this initiative is all about. The retail initiative of Reliance will be without a parallel in size and spread and make India proud. Ensuring better returns to Indian farmers and manufacturers and greater value for the Indian consumer, both in quality and quantity, will be an integral feature of this project. By creating value at all levels they will actively endeavor to contribute to India's growth. The project will boast of a seamless supply chain infrastructure, unprecedented even by world standards. Through multiple formats and a wide range of categories, Reliance is aiming to touch almost every Indian customer and supplier. The magnitude and strategy of RIL's retail foray is sure to have far reaching social and economic implications by directly influencing the lifestyles of hundreds of millions of consumers, besides indirectly impacting the livelihood of tens of millions. This indirect impact will be on those engaged in a wide range of economic activities including farming, consumer goods manufacturing, and a host of myriad other services that bring hundreds of categories of goods and services from the producers to the final consumers. Business analysts feel that Mukesh Ambani's advantage is his huge financial strength coupled with a track record of implementing mega projects in record time, at globally competitive capital costs. Mukesh Ambani has learned to dream big from his great visionary father, the late Dhirubhai H Ambani, who is acknowledged as one of India's tallest, most ambitious and successful business leaders for his sharp business acumen and skilled people management ability. If the announced retail project is any indication, Mukesh Ambani has indeed inherited all these skills from his father. Re-writing the rules of business has been the forte of Dhirubhai and Mukesh is attempting the same in retail. Quite clearly, RIL is now all set and ready to conquer the organized retail domain. The Indian retail scene is now going to witness some real fast-paced action, with the consumer as always having the best deal. So, as they say, let the action begin! Reliance Digital

Mukesh Ambani's Reliance Industries Ltd launched a second group of retail stores called RELIANCE DIGITAL which will sell consumer electronics and other household appliances. Reliance Digital Store has been launched five months after the company first introduced its fresh food format outlets, Reliance Fresh, that stock its own label of groceries under the brand, Reliance Staple. The first of the stores was unveiled at the Shipra Mall at Indirapuram in Ghaziabad on the outskirts of the national capital New Delhi April 24 Reliance Retail Ltd, the mega retail venture from the Mukesh Ambani stable, marked its foray into speciality retail with the launch of its first consumer durable outlet, Reliance Digital, in the NCR region. Reliance is planning to open a total of 150 Reliance Digital stores across 70 cities with investment of Rs 1,000 crore over the next three to four years One-stop shops The stores size approx 15,000-30,000 sq. ft, will function as one-stop shops for all technological solutions in the consume durables and IT telecommunications segment to cater to the tastes and requirement of customers. Reliance Digital stores would sell everything from TV sets, home theatres, refrigerators, cooking ranges, dishwashers to computers and mobile phones from across brands. Each store would be set up at an investment of Rs4 to Rs7 crore and also provide after-sales services On private labels, RELIANCE DIGITAL has on offer of more than 4,000 products from over 150 brands. As part of their overall business strategy they will have their own consumer durable private labels, but not immediately. With its own labels in the consumer durables segment, Reliance Retail will be fighting for a share of the $5.6-billion domestic market, which is dominated by South Korean brands LG and Samsung and Japan's Sony. The domestic consumer electronics market is growing by 10 per cent annually and is split between imported South Korean brands such LG and Samsung and Japans Sony on the one hand and Indian market leaders like Videocon and BPL The prices being offered at the Reliance Digital stores will be most competitive and if any consumer finds a cheaper product in the market within 30 days they will not hesitate to match the offer. Besides, the stores will also provide pre- and post sales services through its in-house RelianceresQ vertical. The stores will also offer finance schemes for consumers for which the

retail majors are in talks for tie-ups with several financial institutions, Citi Financial being one of them. Reliance Digital will also be offering customers Reliance One, a common membership and loyalty Programm across all its formats, which means users, would be able to redeem points earned on purchases. Other formats of Reliance Retail such as supermarkets and hyper markets are soon to launch. Reliance Industries had last year announced an investment of Rs 25,000 crore for the retail business, which it hopes would help the company earn around Rs 100,000 crore revenues in the next five years, 10-15 per cent of which will be contributed through retailing of consumer durables at its Reliance Digital stores and hypermarkets. Industry estimates suggest India's retail market is worth $320 billion, of which organized retail accounts for $7.5 billion and expected to grow to $21.5 billion by 2010. Reliance Fresh Reliance Industries launched its first retail format called Reliance Fresh in Hyderabad. Spread over 2,000-5,000 sq ft, 11 such Reliance Fresh neighborhood convenience stores were come up in the city. These stores sell fresh fruit and vegetables besides staples (dal, atta, rice) as well the companys in-house brand Reliance Select and Reliance Value. Reliance is gearing up to revolutionize the retailing industry in India. Towards this end, we are aggressively working on introducing a pan- India network of retail outlets in multiple formats. A world class shopping environment, state of art technology, a seamless supply chain infrastructure, a host of unique value-added services and above all, unmatched customer experience, is what this initiative is all about. The retail initiative of Reliance will be without a parallel in size and spread and make India proud. Ensuring better returns to Indian farmers and manufacturers and greater value for the Indian consumer, both in quality and quantity, will be an integral feature of this project. By creating value at all levels, we will actively endeavor to contribute to India's growth. The project will boast of a seamless supply chain infrastructure, unprecedented even by world standards. Through multiple formats and a wide range of categories, Reliance is aiming to touch almost every Indian customer and supplier. The Fresh stores at Hyderabad are part of a pilot project, which will help company understand customer needs. The pilot for this format will be taken to many other

cities over the next few months. Next on the companys list are bigger cities including Delhi and Mumbai RIL intends to invest close to Rs 25,000 crore over the next five years in the retail business. The company plans to establish 4,000 retail outlets across various formats by then, and is eyeing sales of Rs 1,00,000 crore over the 5-year period from the retail business. Besides Reliance Fresh, the company also plans to launch larger format stores called Feel Fresh Plus which will be spread over 10,000-15,000 sq ft. The Fresh Plus stores will stock fruit and vegetables as well as apparel, consumer electronics, FMCG items and even medicines. From Hyderabad, these stores will travel to Mumbai and Delhi where Reliance has identified up to 80 locations each. But even as the retail debut kicks off with fruit and vegetables, it seems the company is doing a rethink on whether to get into the larger formats such as hypermarkets and supermarkets. These two formats require over 1 lakh sq ft of space and may not come up at prime city locations. Instead, Reliance is contemplating tapping alterative sites such as the SEZs for opening hypermarket The strategy is to open one Reliance Fresh store in a radius of three to four km to serve 1,000-2,000 families. This means about 30-40 stores in the major metros. Reliance Fresh is selling vegetables and fruits sourced from farmers through the companys agri hubs. Reliance Fresh would carry fresh fruits and vegetables, staples, top-up grocery, non-food items and dairy products and a whole lot of other categories at very competitive prices. All the stores opened have an average area of about 1,800 sq ft and an average of about 20 sales associates attending to customers in each store open from 8 a.m. to 10 p.m. on all seven days of the week. A targeted sales turnover of Rs 90,000 crore (US$ 20 billion) by 2010 with a planned investment of Rs 30,000 crore over the next five years that's the retail vision of Mukesh Ambani and his RIL retail team. RIL's retail venture seems all set to achieve the status of being the flagbearer of India Retail Inc, and that too in record time! Culling information from all possible sources, Images F&R Research attempts to put the Reliance Retail jigsaw in order and see how the concept and strategy differentiates from the existing competition, how it impacts the intermediaries and consumers, and more interestingly,

how will it stand up to the real competition from global retail powerhouses like Wal-Mart, Carrefour, Target, Metro, Sears and Tesco that are eager to enter the Indian retail arena once the FDI barrier is lifted. Read on for the full story It's been in the news for quite some time now. Earlier, about a year ago, it was only whispered in close industry circles. Slowly the whispers become louder, and the word gained ground that India's largest private sector company, Reliance Industries Limited (RIL), is entering the Indian retail sector in a real big way. But with virtually nothing coming from anyone in the know inside RIL about their retail plans, this has to be one of the most closely guarded secrets of India's corporate story. Amidst all sorts of speculations in the media circles about RIL's intended retail foray, the word finally came out on January 23, 2006, when the Mukesh Ambani-controlled Reliance Industries Limited presented the mega retail initiative plans to its board of directors who subsequently gave their consent to pursue the retail business through a wholly-owned subsidiary of the company likely to be christened Reliance Retail Limited. The Reliance Retail blueprint envisages nation-wide chains of hypermarkets, supermarkets, discount stores, department stores, convenience stores and specialty stores, in about 800-odd cities and towns across the length and breadth of India. The RIL board of directors approved the initial phase of the retail foray at an estimated cost of Rs 3,350 crore (US$ 750 million). That was big news for both the national and international media, which went all agog again with intense speculation. Giving full respect to the importance of this announcement, more than one leading international daily chiefly, The Financial Times gave this news a front-page treatment, speculating (like many others) that this investment could just be an initial tranche of a much larger commitment from Reliance Industries towards the retail project. Just how big and grand this investment is for the Indian retail sector can be gauged by the simple fact that the entire Indian retail sector is estimated to be at Rs 1050,000 crore (US$ 233 billion) growing at five per cent annually and the estimated share of organised retail is only Rs 36,000 crore (US$ 8 billion), at present, albeit growing at over 30 per cent every year. That makes Reliance Retail's proposed investments equivalent to about 10 per cent of India's organised retail market such a level of investment in the Indian retail arena has been unprecedented in the country's most promising sunrise industry retail.

So much so, projections by the Images-KSA India Retail Report 2005 of an organised retail market of Rs 100,000 crore (US$ 22 billion) by 2010 now appears conservative, likely to be achieved much earlier than 2010. If Indian retail was lacking a whole-hearted and full-blooded thrust from a big and large corporate house (apart from the lukewarm investments made by the Tatas and ITC), it is now all set to change. Mukesh Ambani, who has been nourishing retail ambitions for quite some time now, has clearly positioned himself in to the role of redefining the entire landscape of Indian retail. RIL Set To Become World's Largest Real Estate Property Owner What is even more interesting is that Reliance Industries Limited will far out-surpass the Catholic Church in becoming the world's largest owner of real-estate property by virtue of its mega Retail and Satellite Township plans, in the next two to three years! Now what exactly does this mega retail plan portend for the Indian retail sector? In fact, what exactly are RIL's plans, in terms of retail strategy? How will RIL differentiate its stores and concept from existing players who have already moved into the retail space earlier, and have already established a good foothold? How will this impact the existing retail majors the likes of Pantaloon Retail, Trent India, Shoppers' Stop, RPG, etc? How will the consumer benefit from RIL's venture and how will intermediaries like traders, suppliers and farmers all along the supply chain network benefit? What will be the USP of Reliance Retail? And, more significantly, how will this impact the major international retailers who plan to enter the Indian retail market? Reliance Retail is in fact giving India for the first time a real feel of the scale at which these global retail powerhouses actually operate, it is preparing India to stand up to the ensuing competition and in the process, allow consumers the full benefits of modern retail. Retail Will Become Core Business of RIL Reliance Industries Limited is the largest and one of the fastest growing private sector companies in India, with business activities encompassing almost all major growth sectors of the Indian economy.

The company manufactures and markets a wide range of products with market leadership in almost all its businesses. All of Reliance Group production and services ventures have one common feature global scale operations employing state-of-the-art technology in all fields. The company is truly emerging as a well diversified conglomerate with global competence in technology, management and financial capabilities to meet the needs of a rapidly growing Indian market. With domestic market shares ranging from 40-80 per cent, RIL is also ranked among the top 10 producers globally, for all its major product segments. It is one of India's largest business conglomerates with total revenues of Rs 1,00,650 crore (US$ 22.6 billion). It is being speculated within the industry that the ROIs made by RIL in the retail space will far out-shadow its existing core flagship businesses and very soon retail will become the core business for the Mukesh Ambani-controlled Reliance empire. Future Planning:Company plans to have a pan-India presence by opening stores in 784 cities and 600 small towns and achieve a target of Rs.10 billion revenue by 2010 by which time it hopes to complete Phase 1. In thefirst phase company plans to employ 500,000 people. It is following an all-inclusive model giving the right affordability across all income groups. Company is aggressively partnering farmers by following a farm-to-fork strategy in its supply chain management model and ensures that it delivers fresh fruits and vegetables at affordable prices to consumers. Currently, Reliance Fresh has over 100 stores across the country. Reliance Fresh also offers a membership and loyalty programs Reliance One - to deliver customized benefits to frequent shoppers. Currently, it has 200,000 loyalty customers across Hyderabad, Jaipur and Chennai. Reliance Retail, the 100% subsidiary of Reliance Industries, on October 28 unveiled Reliance Fresh, the first of its multi-format retail foray involving an investment of Rs 25,000 crore. Reliance Fresh is the companys brand for neighborhood freshfood outlets. It will also sell kitchen equipment and other edibles. Besides, it has planned hypermarkets, supermarkets, discount stores, department stores, convenience stores and specialty stores, to be unveiled shortly. The Reliance Fresh supermarket chain is RILs Rs 25,000 crore venture and it plans to add more stores across different geographies, and eventually have a pan-India footprint

by year 2011. The super marts will sell fresh fruits and vegetables, staples, groceries, fresh juice bars and dairy products and also will sport a separate enclosure and supply-chain for nonvegetarian products. Currently, selling through company-owned stores currently totals just $8 billion in India. Industry estimates say that the countrys retail industry is worth $300 billion, that is about Rs 13, 50,000 crore. This stands a chance to blossom to $427 billion in the next four years. Organized retail accounts for just over Rs 35,000 crore. Reliance Fresh bids to tap the potential for organized retail in the country. Point of Sale Software System Retalix StoreLine is an open-standards, fully integrated and crossfunctional Point of Sale (POS) and store management software system. Its uniqueness is in the functionality, world-wide install base, and hardware independence. Multi-Concept Functionality that delivers a fully integrated POS solution to meet all of your business needs Open by Design supports industry standards and is hardware independent plus integration with other third-party retail applications is straightforward, affordable and low risk Advanced Promotion Features enable a single point of update for pricing and promotions across all retail formats Graphical, Easy to Use flexible intuitive user interface, touch-screen capabilities and even graphical customer screens, means that cashier training is minimal and customer interaction is effortless Quick Service Deli, provides a powerful method of managing freshmade sandwiches and deli items Fuel provides full support for operating an onsite fuel station, supporting a full range of fuel station and supermarket services Retalix BackOffice is tightly integrated with Retalix StoreLine, and offers POS item management and reporting, DSD receiving, label and sign printing, handheld RF communications, host communications and in-store ordering Retalix PocketOffice is a mobile platform that enables users to manage store operations anywhere in the store, taking the application to the business decision point, while on the sales floor or receiving dock. Retalix StoreLine is installed in more than 250,000 POS terminals worldwide, and is the selected POS solution of top-tier retailers such as Tesco, Publix, Sainsbury's, Woolworths Australia, Delhaize Group, Hy-Vee, and the A.S. Watson Group.

Supply Chain Management A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers. Supply chains exist in both service and manufacturing organizations, although the complexity of the chain may vary greatly from industry to industry and firm to firm. From the above pictorial representation of supply chain management of reliance fresh it is clear that raw material is procured from vendors, transformed into finished goods in a single step, and then transported to distribution centers, and ultimately, customers. Realistic supply chains have multiple end products with shared components, facilities and capacities. The flow of materials is not always along an arbores Farmers Collection center Reliance Fresh Distribution center cent network, various modes of transportation may be considered, and the bill of materials for the end items may be both deep and large.

Rationale of Study:-

Today retail sector is growing rapidly. Reliance fresh is one of the huge retail sectors which are known for their systematic channelized distribution and sales strategies. I have chosen this topic because this would be interesting to know the various strategies. As Indore is growing city, and reliance fresh has various retail sectors in Indore, where supply chain management runs systematically and smooth. This study would reveal strategy about selling and distribution of reliance fresh .it would also give about strategy of pricing and procurement

Objectives of Study:-

The first step in any supply chain management calls for the researcher to define the project scope and then define problem carefully and formulate the research Objectives. An old age says, A problem well defined is half solved. 1. To study in brief about supply chain management. 2. To study about the Reliance Fresh 3. To understand the importance of logistics and supply chain management in organized

retail market.

Research Methodology:This research method is based on secondary data and ANALYTICAL in nature.

Tools for data collection:Secondary data Secondary data are those data which are primarily collected by the other person for his own purpose and now we use these for our purpose secondly. Secondary data is the past data of the company as annual l report of the company now we use these for our purpose secondary.

Tools for data analysis : SWOT ANALYSIS

 ETOP ANALYSIS

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