OUTLINE OF PANTALOONS

March 2006- Pantaloons

renamed itself as Future
Group

CEO Future Group-

Kishore Biyani

23rd May 2006- Pantaloons

retail (India) Ltd. formed
joint venture with
Generalli group.
OUTLINE OF PANTALOONS
The venture was called ‘Future Generalli’ with
26% stake of Generalli in the venture

The ‘Future Group’ was divided in 6 verticals

PRIL was the part of Future Retail

PRIL planned to leverage on its retail strength to

acquire customers and cater to their insurance
needs
Diversification
Growth in organized retail industry-
Attitudes and preferences of Indian consumers
Increase in disposable incomes
Exposure to global products and trends

Competition from Indian retailers and

international giants like Wal Mart
BACKGROUND
1987- PRIL was incorporated as Manz Wear Pvt . Ltd
and went Public in 1991.
1992- The name changed to Pantaloon Fashions
Limited , inaugurated its First Exclusive Men’s store
and number of stores had grown to 70.
1997-First Departmental store called pantaloon was
opened in Kolkata with 0.7 million of investment.
The Store was a success and recorded revenues of Rs
100 million.
1999- Company’s name was changed to Pantaloon
Retail Limited.
2001-PRIL opened a trouser manufacturing plant
facility at Tarapur .
SUCCESS…
It came up with other retailing formats like ‘ BIG
BAZAAR’ , which was at EDLP.
Experts reported Food Bazaar stores achieved a CASH
BREAK even in the very First Year of its launch.
2005-group known as Pantaloon Knowledge Group
had 3.5 million sq ft of retail and over 100 stores across 25
cities in India.
The group had a presence in various segments that
catered to a wide section of consumers in India , which
included retail , fashion , food , communication and
health and beauty.
FUTURE GROUP
 The history of PRIL can be traced to the mid-1980s, when Biyani,
a commerce graduate quit his family business of trading textiles
and yarn to start manufacturing apparels

 During this period, the company was distributing its garments

across India through multi-brand garment stores.

 In 1992, the company inaugurated its first exclusive men's store

called Pantaloons Shoppe and by 1995, the number of stores
had grown to 70, with most of them being franchisee outlets.
Future retail was the core vertical, with the other verticals
serving it directly or indirectly.

With the launch of the Future Group, PRIL developed a

B2B model which resembled Wal-Mart’s Sam’s Club.

In 2003, PRIL under Furture Group aimed to garner a

larger market share in retail India.

In 2006, India was ranked 1st in Global Retail

Development Index.
New business ventures of PRIL
 PRIL entered many new business by entering into a Joint
venture or by establishing subsidies with other companies.
In January 2005,Pantaloon Industries Limited(PIL)
acquired 68% stake in Indus League Clothing Ltd.
(ILCL),its first ever acquisition in garment industry.
In February 2005,PRIL acquired 15.73% stake in Galaxy
Entertainment Corporation.
In February 2005,PRIL planned to acquire 49% stake in
Planet Sports Pvt. Ltd.
April 2005,PRIL entered into restaurant business by
establishing PAN India Restaurants Limited and it
focused on quick service restaurants, food courts, and
hotels.
On 13th April 2005, Pantaloon Food Product(India) Ltd was
incorporated. It was a fully owned subsidiary of PRIL and
its main role was to be main supplier of food products to
its Food Bazaar Stores.
In September ,PRIL stepped into retailing of footwear by
forming a Joint Venture called Footmart India Ltd., with
Liberty Shoes Ltd.
In January 2006,PRIL announced its plans to set up non-
banking financial company(NBFC) with an investment of
Rs 60 to 65 million to target the insurance and credit
business.
In the same month, PRIL formed a Joint Venture with
Gini & Jony for the purpose of setting up retail chain of
kidswear.
In March 2006, it was reported that ILCL would form a
Joint Venture with Lee cooper to distribute its products
in retail outlets.
In April 2006,PRIL established a wholly owned subsidary,
Convergem Retail India Ltd with an investment of Rs 1
billion, to enter in telecom retailing.
PRIL also ventured into e-retail portal with
futurebazaar.com in May.
In June 2006,PRIL entered in 50:50 Joint venture with
Talwalkers Better Value Fitness Pvt. Ltd for retailing
fitness products.
In July 2006,PRIL entered into an alliance with Ruchi
Soya Industries Ltd(RSIL) for expanding its oil business
through Food Bazaar.
In August 2006,PRIL entered the consumer durables
retailing business by entering into Joint venture with
videocon Industries Ltd. PRIL would retail it through
Furniture Bazzar under the name ‘Kroyo’ and ‘Sensei’.
Recruiting New Talent-
 The restructuring of the PRIL group at the scale that it happened, was
mainly possible due a massive rehaul of its manpower.

 By securing the presence of accomplished senior level executives from

other high profile organizations, PRIL ensured that all the changes that it
wanted to incorporate would take place at the hands of experienced
professionals.
They recruited former managing directors, CEO'a' principal strategists of
MNCs like coca cola, Goldman Sachs, Airyle and inox.
After they had suitably provided for motivated and experienced leadership
at the senior level management, PRIL focused on training and developing
its lower level management pool.
Fact file:
PRIL as of 2006 had the highest employee strength in the entire retail
sector; 12000 employees divided between 99 stores over 25 countries.
The Road Ahead
Financial results of PRIL for 2006 reflect growth in retail
sector
 Total income of Rs 18.72 billion in the end of June 2006 as
compared to 10.88 billion in 2004-05
 66.4% rise in net profit
 Net profit of Rs 386.4 million for the quarter ended
September 30, 2006 – an increase of around 186% over the
corresponding period of previous year.
PRIL, as a leading retailer in India faced competitions
from domestic competitors like Shoppers Stop and
Trend Ltd.
They could also face increasing competition from
foreign retailers when sector was opened up for
foreign investment.
Industry experts have opined that rapid growth in the
retail industry and huge employment benefits could
not be ignored for long and would have to take firm
and positive steps towards allowing FDI in retail
sector.
Wal-Mart had received permission from Indian
government to set up two liaison offices in India which
would explore market opportunities for Wal-Mart and
focus on expanding in supplier base.
Biyani was against allowing FDI in Indian retailing sector
as he felt that the sector was still at a nascent stage.
Immediate threat for the Future Group is from Reliance
Retail Limited.
In order to counter competition from Reliance and
International trade, Biyani had plans to enter into
wholesale trading
He planned to open a KB’s wholesale market
He had plans to launch 18 formats and over 3,340 stores,
thereby turning PRIL into a US$7 billion company with
over US$1 billion in profits by the year 2010.
He also planned to split his business so that he could raise
money separately from each business entity.- Consumer
Durable and InfoTech chain: EZone
He would have few options in the future and may have to
form a venture with an International retailer. – Industry
observers opinion. WALMART TESCO N CARREFOUR
Private labels: Clean Mate, Care Mate and Sach toothpaste
He plans to be in the business for a long time.
Biyani said:
“I never said I am the number
one retailer in the country. I
will be quite happy if I remain
a formidable player.
Competition will certainly
make the market more
interesting. Fortunately we
have the early mover
advantage and are willing to
learn every day.”
Done by-
Deepika Mathur 3074
Dipti Singh 3076
Dipti Tyagi 3077
Sonali Hira 3078
Jayant Gandhi 3079
Jeeta Ramani 3080
Karan Kalaria 3081
Karishma Narayanan 3082
Madhur Mehta 3083
Madhuri Vaghela 3084
Manan Reddy 3085
Manik Dhingra 3086
Mehtar Dilawar 3087
Neha Kelwani 3088
Neha Poonia 3089