`

PREFACE

Preparing a project of this nature is an arduous task and I was fortunate enough to get support from a large number o persons. I wish to express my deep sense of gratitude to all those who generously helped in successful completion of this report by sharing their invaluable time and knowledge. It is my proud and previledge to express my deep regards to Respected of HOD Dr.Pramesh of Business Gautam,Head Department

Management , SWAMI VIVEKANAND INSTITUTE OF TECHNOLOGY, SAGAR for allowing me to undertake this project. I feel extremely exhilarated to have completed this project under the able and inspiring guidance of Mr. Ankur Gautam she rendered me all possible help me guidance while reviewing the manuscript in finalising the report. I also extend my deep regards to my teachers , family members , friends and all those whose encouragement has infused courage in me to complete to work successfully.

Ashish Kumar Singh B.B.A. III SEM.

ACKNOWLEDGEMENT
Preparing a project of this nature is an arduous task and I was fortunate enough to get support from a large number o persons. I wish to express my deep sense of gratitude to all those who generously helped in successful completion of this report by sharing their invaluable time and knowledge. It is my proud and previledge to express my deep regards to Respected , Head of Department Dr.Pramesh

Gautam, Department of Business Management , SWAMI

VIVEKANAND INSTITUTE OF TECHNOLOGY SAGAR allowing me to undertake this project. I feel extremely exhilarated to have completed this project under the able and inspiring guidance of He rendered me all possible help me guidance while reviewing the manuscript in finalising the report. I also extend my deep regards to my teachers , family members , friends and all those whose encouragement has infused courage in me to complete to work successfully. for

Ashish Kumar Singh B.B.A. III SEM.

DELCLARATION BY THE CANDIDATE

Date : I declare that the project report titled " A STUDY ON MARKET SHARE OF GLOBUS " on Market Segmentation is nay own work conducted under the supervision of Business Management , Miss Amrita Rawat Department of

SWAMI VIVEKANAND INSTITUTE OF

To the best of my knowledge the report does

TECHNOLOGY SAGAR

not contain any work , which has been submitted for the award of any degree , anywhere.

ASHISH KUMAR SINGH B.B.A. III SEM.

CERTIFICATE
The project report titled " A STUDY ON

MARKET SHARE OF GLOBUS " been prepared by ASHISH KUMAR SNGH BBA III Semester , under the guidance

and supervision of Miss ANKUR GAUTAM for the partial fulfillment of the Degree of B.B.A.

Signature of the Supervisor

Signature of the Head of the Department

Signature of the Examiner

CONTENTS
S.No. Part one Part two Part three Part four Part five : : : : : Particulars Introduction Company Profile Group Companies Sector Synopsis Major Industry Contributors Part six Part seven Part eight Part nine Part ten : : : : : Retail Format Company Outlets Product Offerings Channel of Distribution Company Strategies Page No.

Part ten

Future Plan

INTRODUCTION HISTORY Launched in January 1998, is part of the Rajan Raheja group. The company opened its first store at Indore in 1999, followed by the launch of its second store in Chennai (T-Nagar). Soon to follow was another store in Chennai located in Adyar. The flagship store was opened on 1st November 2001 in Mumbai, followed by a vibrant store in New Delhi. Subsequently, its stores were launched in Bangalore, Ghaziabad, Kanpur, Ahmedabad, Noida, Lucknow, Varanasi and Hyderabad. The sixth & seventh stores opened in Bangalore in Koramangala & Richmond Road respectively. The eighth store opened in Ghaziabad at Shipra Mall and was followed by the ninth at Kalaghoda in Mumbai; tenth in Thane and eleventh in Ghaziabad. The twelfth, thirteenth, fourteenth stores opened in Kanpur, Ahmedabad and Lucknow respectively. As of May 2008, has opened its 24th Store in Nagpur. Stores Pvt. Ltd. was formed to contribute in the revolution sweeping the retail industry. promises to bring about a perceptible change in the way apparel and lifestyle retailing has been carried so far. Recently has opened its Store in Indore, Aurangabad and the journey continues... Stores Pvt Limited "Rahejas", Corner of Main Avenue and V.P. Road,

Santacruz (West), Mumbai - 400 054 Tel: 26058731 / 32 / 33 E-mail: info@.in Web URL: www..in The organization has an innovative and adaptive environment. has achieved customer delight by presenting value products and services through continuous improvement. It has a team of dedicated and passionate employees maintained by constant training. has developed long lasting relationships with its business partners. It employs the best practices of the industry through cost analysis. It has brought about a veritable revolution in the retail industry through its constant efforts and innovation in apparels. It has been a benchmark for many upcoming retailers. It has brought about an important change in the industry and has distinguished itself from others. has acquired the best processes and procedures in various fields, such as Marketing & Brand Development, Research & Design, Human Resources, Services, Administering Policies & Procedures and Production & Merchandising. It has blended its resources of technology and people in such a way as to get a competitive advantage over others.

Mission Achieve customer delight by offering quality products and services through a process of continuous innovation and adaptation. Build a dynamic team of committed and passionate employees through sustained learning and grooming. Develop mutually beneficial relationships with our business partners. Employ cost-effective processes and thereby create a strong organization. INFRASTRUCTURE Stores Pvt. Ltd. was formed to contribute to the revolution sweeping the Indian retail industry. promises to bring about a perceptible change in the way apparel and lifestyle retailing is carried out. Towards this end, we have brought in modern international technology and made heavy investments in investing and acquiring the best, tried and tested processes and procedures of operation. FUTURE combines state-of-the-art international information technology, the highest quality of human resources and sustained financial commitment to realize its

long term vision. We are rapidly expanding and our target is to have an additional 100 fashion stores by the end of 2012.

ABOUT GLOBUS GROUP is an Apparel Retailing arm of Rajan Raheja Group, a group which has a market experience of about 3 decades, turnover of Rs. 86 billion and about 19000 employees. There are more interesting fact which can add your interest in the Group as you came to know that this is the same group which has its hand in few very famous brand name in different sector like Exide batteries, Outlook publishing House, Prism Cement, Asianet cable Channel and many more. Beside this they also have stake in many famous upcoming big retailing projects with Big Retailer like Dairy Farm Int. as their partner. The Rajan Raheja Group is led by Mr. Rajan Raheja, a renowned businessman involved in the Real Estate Development business for over 3 decades. The company diversified into manufacturing and financial services over the last two decades. The emphasis is on setting up focused companies, which aim to be profitable leaders in their respective fields with a long term outlook. All Group Companies are professionally managed by independent CEOs. Most of the Group Companies has a leading position in Market share, Technology, Brand, Distribution or Profitability. The Rajan Raheja Group is a

Strategic/Financial partner in many of the businesses where it has management control. Highlights: Total Turnover: Over Rs. 86 billion ($ 2.1 billion) Total Capital Employed: Over Rs. 57 billion ($ 1.4 billion) Total Employees: 19,000 Privilege Club Welcome to Privilege Club, a place where the customer comes first and customer delight is a priority. At , we believe that shopping should not just be a pleasant experience but also a rewarding one, which is why we have the Privilege Club. The club is a token of appreciation to valued customers like you. The Privilege Club card is as much a reflection of your good taste, as it is a gateway to exclusive privileges. PRIVILEGE CARD A one-time purchase of Rs. 500 gives you access to the Privilege Club through the Temporary card. Accumulate purchases worth Rs. 2,000 in three months and get the most sought-after Silver Card. For those in a hurry, the Silver Card can also be obtained by paying a nominal fee of Rs. 150 GOLD CARD

Make a distinctive statement with The Gold Card. You can upgrade to Gold Card by accumulating shopping worth Rs. 15,000 in a year and get truly Exclusive Benefits and Privileges.

CARD REWARDS AND PRIVILEGES With Privilege Club earning rewards is simple and easy. As you accumulate purchases you will earn Gift Vouchers (GV)

Cumulative Purchase 5,000/10,000/15,000/25,000/50,000/1,00,000/-

Purchase of goods worth (Rs.) GV worth 100/GV worth 100/GV worth 150/GV worth 300/GV worth 650/GV worth 2000/-

RENEWAL OF PRIVILEGE CLUB MEMBERSHIP

Cards

Purchase worth (Rs.)

of

goodsValidity (Months) 3

Automatic renewal on Upgrade to Silver Card on

Temporary 500

cumulative Cumulative Cumulative

purchase purchase purchase

of of of

`2,000 in 3 months Silver Silver 2,000 15,000 24 12 `10,000 in 24 months `15,000 in 12 months

PRIVILEGES AT A GLANCE Privileges Validity at all Stores New product launch privileges Birthday Discount Silver Card Gold Card Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Exclusive shopping day for end of season sale Yes Regular Updates: Sale & In Store Promotion Yes Automatic membership renewal Special tie-ups* Free home delivery of altered merchandise Reserved car parking* Special counters* Complimentary soft drinks* Free card in case of loss/damage Yes Yes

REMEMBER: CARD USAGE NORMS Validate your card by signing on the reverse as soon as it is received. Usage of the card indicates acceptance of terms and conditions of the Privilege Club Membership. Flash your Privilege Club card for availing of benefits at or our program partners. Privilege Club Cards are not Credit Cards and remain the property of at all times and must be produced/ returned on request. All rights to ownership and usage of the Card rest with . Report loss of Card at our Customer Service Desk. Duplicate Cards will be issued at a nominal cost of 100 Inform of any change in your address/ telephone numbers/e-mail at the Customer Service Desk. CONDITIONS Privilege Club membership is open to individuals above 18 years of age. In case the applicant fails to achieve the required purchases within the validity period, the total purchases will not be carried forward to the next period. reserved the right to refuse Privilege Club membership to any applicant without assigning any reason.

 Usage of the Privilege Club Cards indicates the acceptance of all the terms and conditions, which are subject to revision from time to time by . Privilege Club Cards are non-transferable and can be used only by the member whose signature appears on the signature panel on the reverse of the card. Any employee has the right to verify members signature and to ascertain the identity of the member. Benefits may be refused and the card be taken back if a non-member is found using the card. reserves the right to revise the terms and conditions as well as the rules and regulations of this programme without prior notice. Benefits available through programme partners may change from time to time or be withdrawn without prior intimation. will not be responsible for any liabilities arising from such situations or from use of such offers. It is advisable to check with our programme partners, validity of the scheme prior to participating in the same. reserves the right to use the Privilege Club membership data for the purpose of marketing or communication for enhancement of the programme. Any disputes arising under this programme are subject to Mumbai Jurisdiction. Gift Vouchers Make gifting simple with . Gift your near and dear ones a gift voucher, available in many flexible denominations. When you give someone Gift Vouchers you give them exactly what they want. When it comes to

birthdays, anniversaries and special celebrations, this is one gift that's guaranteed to please. Gift Vouchers are redeemable against any purchase made in the store. There is no charge/tax on purchase of gift vouchers. For instance; if you want to buy gift vouchers for Rs.1001, you need to tender Rs.1001 only and you can buy anything worth Rs.1001 from any store. Gift Vouchers are available in denominations of Rs.101, Rs.251, Rs.501 & Rs.1001. However, you can also decide on your own denomination. Just contact the service desk at any Stores and give the most thoughtful gift of all. Each one of us at aspires and strives for only one result - Your Delight. So we would like to know how we are doing. BRANDS Youth Fashion Brand aspires to be the iconic youth fashion brand in the country. is a complete fashion brand its the apparel brand and the destination brand. Three words which capture the spirit of the youth vibrant, maverick and expressive. is exactly thatour vibrant and maverick designs are not just setting fashion trends but more importantly helping our customers express themselves. The entire fashion range comprises of apparel for men, women, kids and accessories at amazing prices. The range spans across usage occasions work wear, campus wear, club and lounge dressing and genres Western, Indian and mix-n-match. A well researched sizing ensures a good fit for the Indian silhouettes. Eye candy fashion

F21 is an accessible hi-fashion brand, offering high-quality apparel. F21 the edgy fashion brand - is designed to appeal to the more experimentative and adventurous consumers who seek cutting edge fashion. Styling and fabric innovations help F21 offer high end fashion at prices which are affordable for the young consumers. From everyday casual occasions to clubwear, F21 promises consumers attention unlimited. The Design Hub The heart of our business lies in this creative workplace of our organization named Design Hub. It has been recently launched in July07 in AndheriMumbai and is at its early stages to becoming the leading design talent floor. It is the most well equipped design studio in India in current times. is on a mission to revolutionize fashion and become an iconic youth fashion brand in India. We aim at creating a deep connection with the Indian youth with inspiring product designs, signature store experiences and compelling marketing. will undoubtedly bring unique fashion products; spawn haute trends and provide powerful inspiration to its young customers to experiment further and make individual style statements. Energized by this mission, a dynamic team of passionate employees and business partners is constantly evolving and innovating with a view to delight the consumer. FASHION .BE ! is one of the leading companies in the Indian Fashion Retail industry, one of the most flourishing sectors in the current Indian economic scenario. Today, is present in 27 locations around the country. We are committed to a long term vision of bringing an international shopping experience to all of urban

India. aims to be a company that delivers consistent value to customers and exceed expectations. Of course, we believe that this would not be possible without the hard work, dedication and talent of our employees. We provide our employees with Not just a job, but the chance to build and advance a lifelong career At , we are looking for professionals with high intelligence, a quest for knowledge and a burning desire to be amongst the best! STORES CHALKS OUT RS 800-CR EXPANSION PLAN

Mumbai, Aug 27 : Fashion apparel retailing major Stores Pvt Ltd, a part of the $1.5 billion Rajan Raheja Group, is on an expansion mode. The company is planning to increase stores presence from 19 to 152 locations - spread across 70 cities by 2012 - on a lease model. Vice-chairman Akshay Raheja told FE, We are planning to invest Rs 800 crore, which will be sourced from debt, equity and internal accruals. We hope to grow our real estate space from 2 lakh sq ft to 1.6 million sq ft by 2012. Besides, we are planning to start online sales for our apparels by launching a new e-commerce website soon. plans to set up its fashion apparel retail stores in Ludhiana, Faridabad, Vashi (in Navi Mumbai), Nagpur, Vasant Kunj (in Delhi), Muradabad, Jamshedpur, Kolkata, Pune and Jabalpur. According to Vinay Nadkarni, CEO, , While the rental prices in Tier I cities is 65% of the total sales, it is 45% less in Tier II cities and even lesser at 35% in Tier III cities. As part of

an emerging trend, the rental prices in these locations are expected to rise further and hence it is the right time to focus on Tier II and Tier III cities for expansion. Besides, Stores is planning to foray into retailing of new product categories such as footwear and sunglasses, which will be retailed under private label brand through our stores. We are currently in talks with third party manufacturers in order to enter into tie-ups for sourcing these products from them, Nadkarni added. The company has signed Bollywood actress Kareena Kapoor as a brand ambassador on a two-year contract. Raheja said, We will invest 6-7% of our overall sales turnover in launching new advertising campaigns. With our new expansion plans on the anvil, we hope to grow our topline from Rs 145 crore as on March 2007 to Rs 1,700 crore by the 2012 end. partners with Tata to open Wine Outlets Wines has partnered with Tata's Star Bazaar to open its first store at Dahisar, Mumbai. As per the arrangement, selects the wines and manages the store too. has plans to open 75 more wine stores in the next two years. They launched Miazma nine months ago and is distributing those wines nationally. Spread across 300 square feet, the Dahisar store will stock almost all major wine and beer brands present in the country, including the company-owned wine brand Miazma.

WORKING HARD AT SOFT SELLING Nothing these days sells without some sort of a promotional strategy backing it. From consumer durables to perishables to services to everything, there is marketing promotion in some form happening all the time. With the fast pace of life that everyone today shakes their head at, but is still loath to change, the momentum of change has been steadily increasing. Every trick in the book is being explored, tried and tested ones as well as daring and innovative ones. Unlikely collaborations are experimented with, and what's more, found to be coming up trumps, nevertheless. PROMOTIONS IN THE RETAIL INDUSTRY In the retail industry, with the advent of large players like Shoppers' Stop and Pyramid earlier, and Lifestyle and more recently, the race has been to retain customer base. Thus loyalty programmes for members were born. And to keep up the enticement, new value additions are constantly sought and implemented. - adding on privileges The Privilege Club card, based on the concept of instant gratification has ensured 100% card to benefit ratio. Members are immediately rewarded for purchases at any of the stores, in addition to a host of other privileges such as exclusive tie ups, promotions and special shopping hours. offers two different card categories, each with it own benefits. A shopper gets a Privilege card on p urchase of merchandise worth over Rs. 2000/- and a

Gold Card Membership on purchases worth Rs. 15000/-. But these purchases can be spread across the first 3 months of the first purchase at . Benefits include invites to specially arranged events, new product launch privileges, like getting to check out and buy new products before anyone else, exclusive shopping hours like special hours during festive seasons and other occasions, exclusive offers on national and multinational brands and services available at . Discount offers and privileges at other leading outlets also can be availed of as part of the benefits of tie-ups. Some promotional offers A free holiday package of 2 nights and 3 days on purchase of goods worth Rs 5000/ A 4 night, 5-day free holiday package on purchase totalling Rs 10000/- and above. For the above offers, where free stay extends to a couple and a child below 2 years, 22 national and 4 international destinations are up for grabs. Targeting youth in a big way, has specific promos like Fashion remix, Pizza hut offer etc. The former, conducted recently at all retail stores in the country was very successful. The promotion allowed participants to join the grooming sessions by leading industry specialists. It also included free tips and vouchers from Dr. Batra's, Gold Gym, Anjali Mukherji's Health Total to name a few, etc. They were given expert advice on personality, hair styling, skin care and clothes. Fashion consultants helped them on fashion wear and sartorial etiquette.

also organises Rampage, a fashion show to showcase the chain's latest apparel range. Advertising the promotion Youth being the target focus, uses the Internet and website very effectively for all the campaigns as it has always generated a good response. also actively participates in promotional tie-ups with the colleges for various events through out the year. The mega store is also exploring the idea of using music channels in the near future. ' extensive use of all kinds of media to communicate its message effectively has included print, hoardings, radio, magazines and other promotional activities that are implemented from time to time in all the stores.

COMPANY PROFILE

Globus (India) Limited, is Indias leading retailer that operates multiple retail formats in both the value and lifestyle segment of the Indian consumer market. Headquartered in Mumbai (Bombay), the company operates over 7 million square feet of retail space, has over 1000 stores across 51 cities in India and employs over 25,000 people. The companys leading formats include Globuss, a chain of fashion outlets, Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket chain, blends the look, touch and feel of Indian bazaars with aspects of modern retail like choice, convenience and quality and Central, a chain of seamless destination malls. Some of its other formats include, Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion Station, aLL, Top 10, mbazaar and Star and Sitara. The company also operates an online portal, futurebazaar.com. A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, a large-format home solutions store, Collection i, selling home furniture products and E-Zone focused on catering to the consumer electronics segment. Globus was recently awarded the International Retailer of the Year 2007 by the US-based National Retail Federation (NRF) and the Emerging Market Retailer of the Year 2007 at the World Retail Congress held in Barcelona. Globus is the flagship company of Future Group, a business group catering to the entire Indian consumption space.

GROUP COMPANIES

Future the word which signifies optimism, growth, achievement, strength, beauty, rewards and perfection. Future encourages us to explore areas yet unexplored, write rules yet unwritten; create new opportunities and new successes. To strive for a glorious future brings to us our strength, our ability to learn, unlearn and re-learn, our ability to evolve. Future Group is one of the countrys leading business groups present in retail, asset management, consumer finance, insurance, retail media, retail spaces and logistics. The groups flagship company, Globus (India) Limited operates over 7 million square feet of retail space, has over 1000 stores across 53 cities in India and employs over 25,000 people. Some of its leading retail formats include, Globuss, Big Bazaar, Central, Food Bazaar, Home Town, eZone, Depot, Future Money and online retail format, futurebazaar.com. Future Group companies includes, Future Capital Holdings, Future Generali India Indus League Clothing and Galaxy Entertainment that manages Sports Bar, Brew Bar and Bowling Co. Future Capital Holdings, the groups financial arm, focuses on asset management and consumer credit. It manages assets worth over $1 billion that are being invested in developing retail real estate and consumer-related brands and hotels. The groups joint venture partners include Italian insurance major, Generali, French retailer ETAM group, US-based stationary products retailer, Staples Inc and UK-based Lee Cooper and India-based Talwalkars, Blue Food and liberty shoes. BOARD OF DIRECTOR

Mr. Kishore Biyani Managing director Mr. Gopikishan Biyani Mr. Darlie Koshy

Mr. S Doreswamy Director

Wholetime Director

Director

Mr. Rakesh Biyani Wholetime Director

Mr. Anil Harish Director

Mr. Shailesh Haribhakti Ms. Anju Podda Director Ms. Bala Deshpande Director FOUNDER: Director Mr. Ved Prakash Arya Director Mr. Kishore Biyani

GROWTH OF ORGANISED IN INDIA

The total retail sector in India is estimated at around USD 320 billion. Estimated organized retail in India to reach 12% to 13% of the total retail market by 2010 with sales of Rs 1700-1800 billion.

According to this years Global Retail Development Index India is positioned as the leading destination for retail investment. This followed from the saturation in western retail markets and we find big western retailers like Wal-mart and Tesco entering into Indian market. Indias retail industry accounts for 10 percent of its GDP and 8 percent of the employment to reach $17 billion by 2010. There are about 300 new malls, 1,500 supermarkets and 325 departmental stores being built in the cities very soon. In organized retailing will grow faster than unorganized sector and the growth speed will be responsible for its high market share, which is expected to be $ 17 billion by 2010-11.The organized sector is expected to grow faster than GDP growth in next few years driven by favorable demographic patterns, changing lifestyles, and strong income growth.

This organized retail sector mix includes supermarkets, hypermarkets discounted stores and specialty stores, departmental stores. For example, Spencer network has 69 stores, which includes seven Spencer hypermarkets, three Spencer super markets and 49 Spencer . Break up of consumers expenditure in organized retail

Percentage of Organized Retail

USA - 85% Taiwan - 81% Malaysia - 55% Thailand - 40% Brazil - 36% Indonesia - 30% Poland - 20% China - 20% MAJOR INDUSTRY CONTRIBUTORS Name Future Group (Globus) Shoppers Stop Landmark (Lifestyle) Trent Subhiksha Vishal Mega Mart US $ Million 444 133 80 53 44 25

India is witnessing an unprecedented consumption boom. The economy is growing between 7 and 9 percent and the resulting improvements in income dynamics along with factors like favorable demographics and spending patterns are driving the consumption demand. Indian Retail Industry is ranked among the ten largest retail markets in the world. The attitudinal shift of the Indian consumer in terms of "Choice Preference", "Value for Money" and the emergence of organized

retail formats have transformed the face of Retailing in India. The Indian retail industry is currently estimated to be a US$ 200 billion industry and organized Retailing comprises of 3 per cent (or) US$6.4 Billion of the retail industry. With a growth over 20 percent per annum over the last 5 years, organized retailing is projected to reach US$ 23 Billion by 2010. The Indian retail industry though predominantly fragmented through the owner -run " Mom and Pop outlets" has been witnessing the emergence of a few medium sized Indian Retail chains, namely Globus, RPG Retail, Shoppers Stop, Westside (Tata Group) and Lifestyle International. Given the attractiveness of the Indian retail sector, foreign retailers like Wal-Mart, Carrefour SA( Europe's largest retailer) and Tesco Plc( the UK's largest retailer) were keen to enter this growing market, despite the Indian retail sector being closed to foreign direct investment (FDI). In February 2006, the Indian Government had announced its decision to allow FDI of upto 51% in single brand retailing. Wal-Mart had said that India is high on its priority and that it is closely monitoring the Government's policy on FDI in the retail sector. In the last few years, Indians have gone through a dramatic transformation in lifestyle by moving from traditional spending on food, groceries and clothing to lifestyle categories that deliver better quality and taste. Modern retailing satisfies rising demand for such goods and services with many players entering the bandwagon in an attempt to tap greater opportunities. According to the 'Global Retail Development Index (GRDI) 2006' by the management consulting firm 'A.T. Kearney', India

has retained it's topmost position in the annual study of retail investment attractiveness among 30 emerging markets. .The Domestic competitors of Globus in 2005: RETAILER REVENUES (Rs.bn) 200304 Globus RPG Shoppers stop Lifestyle Westside Ebony Piramyd 6.50 5.45 4.04 2.30 1.20 0.85 0.72 N.A. 200405 13.00 8.00 5.45 3.10 N.A. 1.00 1.40 N.A. TOTAL FLOOR TOTAL NO. SPACE (lakh sq ft) OUTLETS 200304 11.0 5.2 6.3 3.2 2.3 1.7 1.3 1.5 2004-05 (estimated) 30.0 7.5 8.5 3.2 3.3 2.4 5.0 6.0 (next3years) 200304 31 110 13 7 14 8 3 7 2004-05 (estimated) 74 130-134 40 0 18/19 12 7/8 14/15 (next3years) OF

Globuss Retail India Limited, which operates Globuss superstores, has around 14 Globus Family Stores and 10 Globus `Shoppes' across the country. In addition, they also run 4 hypermarkets under the `Big Bazaar' brand. Since the opening of their first store in 1997, in terms of financial size, Globus has already raced to the front to become the country's largest public limited retail giant with a turnover of US$ 87 million. They have managed to do so, among other strategies, by keeping costs down. Their

policy of buying directly from manufacturers (to eliminate the middleman), cash purchases (to get a cash discount) and optimum stock management has helped them to pass on the benefits to the customers that work well in this price sensitive market. Their future plans, to become a US$ 217 million super retailer by 2005, include setting up eight new Big Bazaars (hypermarkets), four new Globus stores, three independent food stores and a mall in Bangalore RPG Group: According to the above-mentioned survey, the most enthusiastic player in organized retail in India is the Goenka group's RPG Enterprises. RPGs retail empire is one of the largest in India, having more than a 100 stores that includes Food World - an alliance with Dairy Farm International of the Jardine Matheson Group; Music World - a 50:50 joint venture with Dairy Farm International, Health & Glow (cosmetics, health products and medicines) and Giant (hypermarkets). Primarily based in south India, the turnover of RPGs retail empire is around US$ 98 million and accounts for nine percent of the group's turnover. Landmark Group: Owned by the $600 million Landmark Group, which operates 170 stores worldwide, Lifestyle forayed into the Indian retail market in 1998. Lifestyle India achieved a turnover of US$ 29 million in 2002-03 with five stores in operation. One of the primary reasons for their success in India has been their experience in running retail chains overseas. Their strategic decision to set up everything under one roof versus setting up separate stores in different segments has stood them in good stead. Another advantage they have is that Lifestyle has developed its own in-house label, which comprises 11 percent of total merchandise. In addition, its parent company does bulk purchases of commodities that are sold at these stores so

that the products can be sold at a cheaper rate. Lifestyle plans to open six more stores aiming to offer around 500,000 square feet of shopping space by next year and to achieve a turnover of US$ 50 million in 2003-04. Globus and Lifestyle are considered to be the powerhouses of retail in India. According to industry sources, in the next 12 to 18 months, both these superstores will offer two million square feet of retail space between them. K. Raheja Group: The K Raheja promoted Shoppers' Stop, credited with starting the retail revolution in India, is said to be the leader in department store format. At present, Shoppers' Stop has 10 stores across India. Shoppers' Stop also runs the 13 stores of the bookstore chain `Crossword' which it acquired two years ago. The future plans of this chain, having a turnover of US$ 66 million, are to open 24 more Shoppers' Stop Stores in the next two years and 12 more Crossword stores by the end of this year. A unique feature of Shoppers' Stop operations is that their private labels such as Stop, Kasish, Life and Carrot contribute 20 percent to its turnover. Tata Group: The US$ 9.7 billion Tata Group's retail arm Trent runs the Westside chain of stores. Trent has already established 11 Westside departmental stores measuring 20,000 square feet each, in Mumbai, Bangalore, Hyderabad, Chennai, Pune, New Delhi, Kolkata, Nagpur and Ahmedabad. The company hopes to expand rapidly with similar format stores that offer a balance between style and price retailing. Future plans include establishing the Westside brand in all large towns with a population of over 100,000. Trent is also planning to venture into food and grocery retailing through a chain of hypermarkets. Group company Tata Coffee, which holds over 32 percent in Barista Coffee Company, has targeted 160 espresso bars in India and abroad in the recent future. Some of the other

well-known names in the Indian retail arena are ITC Lifestyle, , Nilgiris, Caf Coffee Day, Quickys, Amorettos, Bata, Super Sabka Bazaar, and Subhiksha etc.

GLOBUS OUTLETS

As on 30th june , 2006,the total number of Globus stores stood at 21 , with 9 stores opening during the year under review .

These are as followsCity mall-Ahmedabad Sigma hall-Bangalore Borivali-Mumbai 20000sq. ft 20000sq. ft 30000sq. ft

Sahara mall-Luck now Kalani mall-Indore

20000sq. ft 20000sq. ft

Runwal mulund-Mumbai 19500sq. ft Cross river mall-Shahdara 25000sq. ft Cinepux mall-Mangalore Rajkot 23550sq. ft 18000sq. ft

PRODUCT OFFERINGS Globus is positioned as an entire family store and it deals in mens wear, ladies wear and kids wear. It mainly focuses on its Private label program

me because the share of private label has increased over the previous year and stands at nearly 75%. Below are some of the companys private labels: MENS WEAR

John Miller

JM Sports Bare Denim Rig Ajile Lombard T-2000 Bare Leisure LADIES WEAR Honey Akkriti Annabelle Mix & Match Ajile Rig KIDS WEAR Chalk Bare 7214

ACCESSORIES

 Cosmetics

Stationary for kids

Books & Magazines CHANNELS OF DISTRIBUTION Future logistics solution limited ,a wholly owned subsidiary has been formed to offer more strategic ,systematic approach to meet group large captive supply chain management (scm) On the backing of the group association, alliances and key vendors FLSL will also extend its services bonquet to them in near future. Future logistic team currently oversee the operation of an existing fleet of over 200 delicated trucks ,contracted from established regional and national transport carrier. GDS being piloted for outbound deliveries and would be rolled out nationally in near future. In term of warehouse space nearly 2 million squre feet was operational as on30 dec 2007 consisting of MASTER DISTRIBUTIONCENTRE and other regional dcs FUTURE LOGISTIC has build about 4 mega merchandising hub of about 250000 feet located in 4zones of India Globus has also their own factory outlet from where they supply direct to their stores COMPANY STRATEGIES

PROMOTIONAL STRATEGIES 1. Green Card is passport to a whole new world of exclusive benefits and privileges.

Instant discounts* for every time you shop at Globuss. Exclusive shopping days to get hold of latest merchandise. Regular updates on collections and promos via catalogues, sms and email.

2. Globus continued to be the title sponsor for femina miss India 07 peagent 3. The companys flagship format, Globuss went in for an exiting makeover during the year under review, the highlight being the signing up of style icons BIPASHA BASU & ZAYED KHAN as its brand ambassadors. PRICING STRATEGY -The largest player in the organized retail Globus came-up with 1500 -2000 sq ft no-frills KB fair Price shops in this year. They propose to provide branded products at 10% less than the Mrp and 20% off on the local brands, which is similar to what has been carried out in Big bazaar. Keeping costs down is clearly the cornerstone of policy at both chains. Globus chief Biyani ensures cheaper prices by keeping watch at every step. Says Biyani: "We do three things -- buy directly from the manufacturers so that the middle man is eliminated. We buy in cash and get a cash discount, and manage our stocks turns so that we don't have money stuck up. The benefits are passed on to the customers.

Cash discounts (for buying goods upfront in cash) on the other hand could range from 2 per cent to 10 per cent. And the company pushes for a stock turn of 40-50 times a year for its food items, and once a month for ready to wear. Backward integration is the name of the game in Globus stores -- and they help to keep costs down dramatically. Almost 70 per cent of the ready-towear products in the store are manufactured by the group's own garment units. As a result it is able to offer prices in ready-to-wear that are virtually 30 per cent cheaper than competitors. They increase pushing their own in-house labels. POSITIONING STRATEGY The first Globuss was opened in Gariahat in 1997. Over the years, it has undergone several transitions. When it was first launched, this store mostly sold external brands. Gradually, it started retailing a mix of external brands while at the same time introduced its own private brands. Initially positioned as a family store, it finally veered towards becoming a fashion store with and emphasis on youths and clear focus on FRESH FASHION. . Globus is in revamp mode. Changing its positioning from a familyoriented store to a fashion store, Globus stores are being re launched on the `youth' platform. Sporting a new baseline, Globus will now carry the `Fresh Fashion' statement across its 12 stores. India is a young country compared to the others and we wanted our brand to get associated with this emerging target audience. This is the first time that we are re launching our there margins by

stores targeting youth and even women, since they are the ones defining most purchasing decisions.

FUTURE PLANS

1 The country's largest retailer, Globus, is cooking up plans to significantly increase its presence in the rapidly growing domestic food industry. The retailer is also working towards getting closer to the Indian homemaker by offerings in store which will take away the negative labour back home with a range of products in a` live kitchens' format, including home style gravies, dals, cooked rice. 2 GLOBUS is increasing number of FOOD BAZAAR outlet from 40 to150 3 Globus to raise funds; plans IPO of Future Capital finance unit Leading Indian retailer Globus India Ltd has announced that it would sell shares and warrants to investors and founders of the company to raise over $300 million and also sell 10% of Future Capital Holdings. 4. Diversifying its retailing initiatives, the Rs 650-crore Globus (India) is planning to start its own company parlors at its Big Bazaar outlets. 5 GLOBUS announced its plans to form a joint venture with ITALY based GENERALI group to tap insurance sector

BIBLIOGRAPHY

BOOKS AND MAGAZINES Essentials of Marketing Reddy and Appaniah Marketing Management Phillip Kotler India Today Business World and Money Regulator. News Papers The Times of India The Economic Times The Business Standards INTERNET www.google .com www.icicilombard.c.com

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