I.

INDUSTRY PROFILE

The Indian retail industry is divided into organised and unorganised sector. Organised retailing refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include the corporate backed hypermarket and retail chains, and also privately owned large retail businesses. Unorganised retailing, on the other hand, refers to the traditional formats of low-cost retailing, for example, the local kirana shop, owner manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc. India s retail sector is wearing new clothes and with a three year compounded annual growth rate of 46.64%, retail is the fastest growing sector in Indian economy. Traditional markets are making way for new formats such as departmental stores, hypermarkets and speciality stores. Western style malls have begun appearing in metros and second rung cities alike, introducing the Indian consumers to an unparalleled shopping experience. The Indian retail sector is highly fragmented with 97%of its business being run by the unorganised retailers like the traditional family run stores and corner stores. The organised retail is however is at a very nascent stage though attempts are being made to increase its proportion to 10-15%. The last few tears witnessed immence growth by this sector, the key drivers being changing consumer profile and demographics, increase in the number of international brands available in the Indian market, economic implications of the Governament increasing urbanization, credit availability, improvement in the infrastructure, increasing investments in technology and real estate building a world class shopping environment for the consumers. In order to keep pace with the increasing demand. There has been a hectic activity in terms of entry of international labels, expansion plans, and focus on technology, operations and processes. Food and grocery retail The food business in India is largely unorganised adding up to barely Rs.400 billion, with other large players adding another 50% to that. The all India food consumption is close to Rs.9000 billion with the total urban consumption being around Rs.3300 billion. This means that aggregate revenues of large food players is currently only 5% of the total Indian market, and around 15-20% of total urben food consumption. Most food is sold in the local wet market, vendors, roadside push cart sellers or tiny kirana stores. According to McKinsey report, the share of an Indian household s spending on food is one of the highest in the world, with 48% of income being on food and beverages. Challenges Most Indian retailers are under serious pressure to make their suppy chains more efficiently in order to deliver the levels of quality and service that consumers are demanding. Long intermediatetion chains would increase the cost by 15%.

Lack of adequate infrastructure with respect to roads, electricity, cold chains and ports has further led to the implement of a pan-India network of the suppliers. Due to these constrains, retail chains have to resort to multiple vendors for their requirements, thereby, raising cost and prices. 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 sector like IT,BPO and finanace services. Different tax rates across the country and stringent labour laws govern the number of hours worked and minimum wages to be paid leading to limited flexibility of operations and employement of part time employees. Wal-Mart, Tesco, Carrefour coming to india It s been years that the international retailers are lobbying India to open its doors for a market worth 600 billion dollars. Locked by the law in order to protect millions or family-owned businesses, India is finally moving to a solution close to the one existing in China. A committee of high-ranking bureaucrats, tasked with evaluating the issue, finalized its recommendations to the cabinet on Friday. The committee also recommends that an investment by a foreign enterprise be at least 100 million dollars and half of the investment be spent on improving infrastructure such as warehouses. The recommendations must be approved by the cabinet before being formally adopted. Observers say foreign firms will intensify their moves to enter the potentially lucrative market. Among those companies are world giants such as Walmart and Carrefour, but also other European companies including Casino, Auchan, Tesco or Metro. Local Regional players such as Aeon will also eye on India in order to balance their exposure to China and profit from this important market. As always local alliances are set to make the differences. With the Committee of Secretaries recommending 51 per cent foreign direct investment in the retail sector, retailers have sought some changes in FDI norms, especially in the food and non-food sectors. FDI should be looked at differently for food and non-food sectors, retailers said after a meeting hosted by Kishore Biyani, founder & group CEO, Future Group. Retail CEOs and heads of retail chains met in Mumbai to discuss the issues facing the sector, and how these could be addressed through the annual gathering of the industry the India Retail Forum (IRF). The world s four largest retailers Wal-Mart, Carrefour, Tesco and Metro and other groups are seeking to expand in India to tap the increasing spending power of a rapidly burgeoningmiddle class. COMPANY PROFILE ORIGIN OF RELIANCE FRESH LIMITED

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 US$ 58 billion. The flagship company,

Reliance Industries Limited,

is a Fortune Global 500 company and is the

largest private sector company in India.

FOUNDER "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 Dhirubhai Ambani founded Reliance as a textile company and led its evolution as a global leader in the materials and energy value chain businesses. He is credited to have brought about the equity cult in India in the late seventies and is regarded as an icon for enterprise in India. He epitomized the spirit 'dare to dream and learn to excel'. The Reliance Group is a living testimony to his indomitable will, single-minded dedication and an unrelenting commitment to his goals. Reliance Fresh is the retail chain division of Reliance Industries of India which is headed by Mukesh Ambani. Reliance has entered into this segment by opening new retail stores at Hyderabad on 3 November 2006.

Reliance Retail Limited

Reliance is gearing up to revolutionize the retailing industry in India. Towards this end, Reliance is 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. RIL's Retail Project will be through the following companies: Subsidiaries of Reliance Retail Limited

Reliance Fresh Limited Retail Concepts & Services (India) Limited Reliance Retail Insurance Broking Limited Reliance Dairy Foods Limited RESQ Limited Reliancedigital Retail Limited Reliance Financial Distribution and Advisory Services Limited Reliance Hypermart Limited

Reliance Retail Finance Limited Reliance Retail Travel & Forex Services Limited Reliance Trends Limited Reliance Wellness Limited Reliance Brands Limited Reliance Footprint Limited Reliance F&B Services Limited Strategic Manpower Solutions Limited Reliance Gems and Jewels Limited Reliance Integrated Agri Solutions Limited Reliance Universal Ventures Limited Reliance Lifestyle Holdings Limited Reliance Autozone Limited Delight Proteins Limited Reliance Supply Chain Solutions Limited Reliance Leisures Limited Reliance Home Store Limited Reliance Agri Products Distribution Limited Reliance Food Processing Solutions Limited Reliance Trade Services Centre Limited Reliance Digital Media Limited Reliance Loyalty & Analytics Limited Reliance Retail Securities and Broking Company Limited Reliance Vantage Retail Limited Reliance Infrastructure Management Services Limited Reliance People Serve Limited

Reliance Personal Electronics Limited Reliance One Enterprises Limited Reliance-GrandOptical Private Limited Reliance Review Cinema Limited Reliance Replay Gaming Limited Reliance Nutritional Food Processors Limited Reliance Petro Marketing Limited LPG Infrastructure (India) Limited
Daiwik Trading Private Limited Reliance Home Products Limited Reliance Style Fashion India Limited Reliance Styles India Limited

Reliance Fresh Limited was founded in 2006 by Mr. Mukesh Ambani. Reliance Fresh is the convenience store format which forms part of the retail business of

Reliance Industries of India. The company already has in excess of 560

reliance fresh outlets across the country.[ fresh juice, bars and dairy products.

citation needed ]

These stores sell fresh fruits and vegetables, staples, groceries,

A typical Reliance Fresh store is approximately 3000-4000 square feet and caters to a catchment area of 23 km. The first retail venture of the group. When the first Reliance Fresh store opened in Hyderabad, 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. Vision, Mission and Quality Policy Vision To generate inclusive growth and prosperity for farmers, vendor partners, small shopkeepers and consumers. To be more admired and successfully organized retail company in India that materially enhanses the quality of life of every Indian. Mission Growth through value creation. Quality policy To deliver the best quality to the customer at lowest price.

Organisation structure

Exhibit 1

Product profile Fresh fruits and vegetables-This includes many agricultural produce like Onion, Tomato, Apple, Banana, Grapes, Mushroom, leek, etc which are used daily in Indian cooking. These produce have a very short life and most of the produce are replaced in a day s span.

FMCG- The term FMCG refers to those retail goods that are generally replaced or fully used up over a short period of days, weeks, or months, and within one year. They includes items like Chocolate, Chips, Biscuits, ready to eat snacks etc. There are certain non-food FMCG goods being sold like the toiletries.
Dairy- dairy products are referred to as produce from milk. This includes products like Butter, Curd, Milk, Cheese, Ghee, etc. Staples- Staples are every day food that includes wheat, maize, rice, onion, etc. Personal care- These include products for personal care like soap, shampoos, cosmetics, etc. 35% of the revenue is generated from fruits and vegetables.

SAP(System application software) SAP s ERP has two versions: the mainframe version (SAP R/2) and the client/version(SAP R/3). Most prominent among SAP s product range is the enterprise application suite R/3 for open client/server system. With SAP systems, customers can opt to install the core system and more of fuctional components, or purchase the software as a complete package. R/3 MODULES R/3 applications are modules. They can either be used alone or in combination with other solutions. From a process-oriented perspective, greater integration of applications increase the benifits derived. The following are the R/3 modules. Financial Accounting: collects all the data in a company relevant to accounting, provides complete documentation and comprehensive information, and is at the same time an up to the miniute basic for enterprise wide control and planning. Treasury: A complete solution for efficient finanacial management that ensures the liquidity of your company worldwide, structure finanacial assets profitability and minimize risk controlling: A complete array of compatible planning and control instrument for companywide controlling systems with a uniform reporting system for coordinating the content and procedures of a company s internal processes. Enterprise controlling: continuously monitoring a company s success factors and performance indicators on the basis of specially prepared management information. Production planning: Provides comprehensive processes for all types of manufacturing

Material management: Optimizing all purchasing processes with workflow- driven processing functions, enables automated supplier evolution, lowers procurement and warehousing costs with accurate inventory and warehousing management and integrate invoice verification. Human Resourse management: Provides solutions for planning and managing a company s human resource, using integrated applications that covers all personal management tasks and help simplify and speed the process. Quality Management: Monitors, captures and manages all processes relevant to your quality assurance along the entire supply chain, coordinates inspection processing, initiates corrective measures and integrates laboratory information system.

Organisation structure

HUMAN RESOURCE MANAGEMENT Recruitment: Selecting the right people at the right job, at the right time and at the right cost.
PERSONAL DEPARTMENT STRUCTURE :

HR He India

HR Zonal head

S . HR Manage

sst. HR Manage

e ty HR Manage

Exec tive

Exhibit.2

HRM INCLUDES: Job description Structuring

Job posting
Sourcing Resume reading Talking Scheduling Interviewing

Follow up
Salary negotiation

Exhibit.3 Functions: Talent Acquisition Talent Engagement Talent operations Talent Training Compliance Department

ffer and follow up Joining Induction rientation

Talent Acquisition Methods used for recruitment based on Organisation Structure. Conventional Method- Word of mouth, Job portals, Advertisement, Banners, etc Non-Conventional Methods- NGO, Training institutes etc. Talent Engagement

Based on the vacant position, qualification and experience candidates are graded as follows:
GRADE KT K1 K2 K3 DESIGNATION CSA Experienced CSA Experienced CSA Sr.CSA QUALIFICATION TH 10 OR PUC th 10 OR PUC 10 or PUC th 10 or PUC
TH

EXPERIENCE Not necessary CSA Experience required Experienced Experienced

SALARY 4300 4700 5700-6700 8200-9000

Conversion of Walk-ins into employees are based on RAG(required available gap) which is generated through the SAP system which scans through attendance of employees at each store for new position to be filled in. Recruitment of CSA used for selection and to maintain database of employees. Selection procedure Candidates having the relavent criteria should go to the store best preffed by them or the store which is near to their house. Store manager will have a formal introductory discussion will explain the job responsibilities to the candidates. They should obtain their bio data, sealed and signed by the store manager and report to the reliance office or they could just walk-in with the required documents like marks card for qualification proof, electricity bill or ration card for address proof, election card or DL for ID proof, both original and Xerox of the documents are required. 7 passport size photo and 2 standing postcard photo are s required for joining formalities. Once all the documents are verified the candidate is interviewed by the HR Manager. Once the centralized system approved the tracker only can release the offer Mass talent acquisition system for reliance retail stores: SAP is

Features: Simple user friendly e- recruitment system for retail stores Designed forFfresh, hyper,digital and other formats to come. Centralized system to eliminate duplication of registration number. Automatic generation of offer letter once data is entered. Recruitment lead time reduced due to simplicity of the system. Faster generation of the employee code.

Step by step process of,

1)Generating offer letter click on the RSelect in the front end page of Rconnect.

Start

RSelect

R-MTAS Recruiter

Register candidate

Interview rating sheet

R MTAS Offer

Generate offer letter

2) Registering candidate data R-MATS Recruiter

Register candidate

Personal data Communication data Education data Family details PF nomination

Print

Induction: Store manager does the induction for CSA

Training: On the job training is provided for CS s and other staff members. erforman e appraisal: Performance appraisal is done by the immediate s p ervisor for CS s and for other staff member it is done with the help of S P R/3 module. Rconnect is where all information regarding each employee is registered like the product knowledge of the employee grooming, communication, efficiency of work and attendance. Industrial relationship scenario: Reliance fresh maintains a healthy relationship with all employees without being partial due caste, region, sex, etc. Grievance and grievance handling: Grievance might arise when employees are working together. Any job related grievance can be solved by, Presenting to immediate supervisor/manager, if there is no response within 3 working days, then the grieved employee can present his or her grievance to, 2 The department head, if there is no response within 3 working days, then he or she can present the issue to, 3 State/business HR manager or chief people officer, if there is no response within 3 working days, then he or she can present the issue to, 4 The central leadership team. iscipline: The employees of reliance fresh are expected to maintain discipline in their work place.

People vision:

People friendly learning organization

Process efficiency

Performance driven

To create a work environment which will be responsive, respectful and delightful. People mission: Build the best employee brand to attract nurture, engage and inspire the best talent as re uired for our business. To create an efficient internal HR organizational(People+Process+technology and develop vendors to meet the goal.

Ethics at reliance: The essence of this code of ethics is that each employee should conduct the company s business in such a way that upholds its values and commitments. Reliance expects each employee to conduct business with integrity, in a manner that excludes consideration of direct and indirect personal advantage or gain. It is individual responsibility of every reliance employee to ensure that all of us are aware of these value, commitment, and procurement, and behave in accordance with the spirit as well as the letter of the policies. Separation: Superannuation/Resignation Expiry of training/ contract Job abandonment Termination Exit interview Death while in service Full and final settlement

CATEGORY DEPARTMENT

MAIN FUNCTIONS Deciding what to sell

Raw material procurement Transportation of raw materials Sale of products Keep stores running

ORGANISATION STRUCTURE

Zonal chief executive

State operations head

Cluster manager

Store manager

Supervisor

C&A and CSA

Category department consists of three teams,

Category team
Operation steam Suppy chain team
F&V

What to sell(which brand to sell)

'Sell the products' Transportation of raw materials from farmer to stores.

In reliance fresh the whole system of structure of suppy chain with respect to FRESH stores can be divided into various processes depending on the nature and the kind of work. This is the processes and the stages involved since the production of inventory till its selling to the final consumers. Thus the various stages through which the whole inventory passes supply chain / management to preserve the quality at different levels can minimized as follows:City pending centre is a type of warehouse for fruits and vegitables. Here is the process begins by receiving the goods from the CC and a whole quality checks pr ocess is followed. In Bangalore CPC is situated 40 km away from the city at Nelamangala. This CPC spread across an area of 40 000 sq.ft.

Thus goods once received go through different stages called as: Grading Sorting Bar coding etc.

Flow of F&V

Farmer

CC

DC

Stores

uality check

The F&V prices in FRESH are comparatively less than the competitors. The procurement team deals with the farmers directly, a quality check is done; only the best quality is sent to CC. There are 10 CC across Karnataka. The procurement team decides the number of vendors, the quantity of order, price, etc. The commercial team pays its vendors through SAP, adjusts the balance. Each CC would check in F&V worth 500,000.

Coding

Sorting

ADMINISTRATION DEPARTMENT
Employee welfare is the main motto of the Admin dept. The areas that admin covers are: Building maintenance 5 Floors building maintenance which includes electrical work, Carpentry, Plumbing, Lift maintenance, all office related maintenance is carried down by the Admin dept. electricity bill comes around rs.900000 each month. Printing and stationary Everyday 1200 printouts are taken, so its important to maintain the print machine, a periodical check is done to prevent it from breakdown. All stationary items are provided by the Admin dept. Admin dept keeps in mind to spend as less as possible for maximum utility. Mail and courier Everyday couriers come in and go out. Admin dept is responsible to make sure that mail has been sent and received at its respective places. Their registered courier service providers are Maruthi courier service and DTDC in general. The vendors can be registered if they have a bank account, PAN card, service tax applicant. They have about 25 to 30 vendors, each vendor has a code, and the payments are done online for a regular vendor and payment through cheque for a one time vendor. Housekeeping Reliance fresh obtains housekeeping personnel from an agency called Clean world, there are around 18 employees for housekeeping for the entire 5 floor building. Each floor contains one supervisor, one lady and two boys in an average, some housekeeping personnel can do 2 floors. The timing are from 7am to 4pm. Travelling Admin dept books ticket for official travel. The allowance for travel is based on the grade. Hotel booking, car, guest house and all matters of hospitality is dealt by the admin dept Cafeteria In the 6th floor of the building space is provided for cafeteria. There is no rent or royalty paid by the caterers for using the space provided by reliance because customers are in small numbers, around 100 or so. Admin dept keeps a check on hygiene and quality of the food. The chairs and tables are maintained by the admin dept in the cafeteria. Others services Rs.1300 worth of Sodexho coupons is given to staff form their salary for tax benefit.