retail sector in india ppt presentation

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Indian Retail Industry Analysis

India’s e-commerce sector is expected to reach us$ 53.08 billion in 2024, with an annual growth rate of 11.45% to reach us$ 91.24 billion by 2029., advantage india, robust demand.

* India is one of the most promising and developing marketplaces in the world. There is a great deal of desire among multinational corporations to take advantage of the consumer base in India and to enter the market first.

* Increasing purchasing power has led to growing demand.

* Nearly 60 shopping malls encompassing a total retail space of 23.25 million sq. ft are expected to become operational during 2023-25.

Innovation In Financing

* Collective effort of financial houses and banks with retailers are enabling consumers to go for durable products with easy credit.

* Many global investors are investing in the retail sector either by buying a stake in existing assets or through greenfield development platforms.

* According to EY, E-commerce companies raised US$ 2.44 billion in PE/VC funding in 2023 from 85 deals, down from US$ 5.36 billion across 162 deals in 2022.​

Increasing Investments

* Due to India’s wealth of resources, availability of labour at relatively low costs, and special investment wages such tax breaks, etc., foreign corporations prefer to invest here.

* Amazon is increasing its investment in India by US$ 15 billion over the next seven years, bringing its total investment to US$ 26 billion.

* India’s retail trading sector attracted US$ 4.63 billion FDIs between April 2000-March 2024.

* The retail sector in India accounts for over 10% of the country’s GDP and around 8% of the workforce (35+ million). It is expected to create 25 million new jobs by 2030.​

Policy Support

* To improve the business climate and make it simpler for foreign companies to register fully owned subsidiaries in India, the Indian government has implemented a number of rules, regulations, and policies.

* 100% FDI allowed in single-brand retail under the automatic route.​

* Liberalisation of FDI is expected to give a boost to Ease of Doing Business and Make in India.​

Retail Industry Report

Indian retail industry is one of the fastest growing in the world. India ranked 63 in the World Bank’s Ease of Doing Business 2023 publication. India’s direct selling industry is expected to be valued at US$ 7.77 billion by the end of 2025.

The FMCG industry has been projected to grow to a market size of almost US$ 220 billion by 2025 and US$ 615.87 billion by 2027. The FMCG sector is one of the fastest-growing sectors in India, with a growth rate of 8.9% in 2022.

India’s e-commerce sector is expected to reach US$ 53.08 billion in 2024, with an annual growth rate of 11.45% to reach 91.24 billion by 2029. The UPI transactions touched US$ 1.51 trillion in 2022, with a user base exceeding 800 million.

India is the fifth largest and preferred retail destination globally. The country is among the highest in the world in terms of per capita retail store availability. India’s retail sector is experiencing exponential growth with retail development taking place not just in major cities and metros, but also in tier II and III cities. According to data released by the Ministry of Statistics & Programme Implementation (MoSPI), the annual inflation rate based on all India Consumer Price Index (CPI) number is 4.83% (Provisional) for the month of April 2024 (over April, 2023). Corresponding inflation rate for rural and urban is 5.43% and 4.11%, respectively. According to Retailers Association of India (RAI) and Boston Consulting Group (BCG), Indian retail market is expected to reach US$ 2 trillion by 2032.

As per Kearney Research, India’s retail industry is projected to rise at a CAGR of 9% between 2019 and 2030, from US$ 779 billion in 2019 to US$ 1,407 billion by 2026 and more than US$ 1.8 trillion by 2030.

Retail sales in India grew 4% in February 2024, compared to the same period in 2023.

India is one of the most promising and developing marketplaces in the world. There is a great deal of desire among multinational corporations to take advantage of the consumer base in India and to enter the market first. Due to India’s wealth of resources, availability of labour at relatively low costs, and special investment wages such tax breaks, etc., foreign corporations prefer to invest here.

India’s retail sector was experiencing exponential growth with retail development taking place not just in major cities and metros, but also in small cities. Healthy economic growth, changing demographic profile, increasing disposable income, urbanisation, and changing consumer tastes and preferences have been some of the factors driving growth in the organised retail market in India.

The organised retail market in India has 12% share of the total retail market and has a growth rate of 10% over 2021-2032. Increasing demand for organized retail space has helped create a capacity of ~120 million square feet (MSF) in retail space across major Indian cities. Major Indian cities include Delhi (23.7 MSF) and Mumbai (16.7 MSF).

India ranks among the best countries to invest in Retail space. Factors that make India so attractive include the second largest population in the world, a middle-income class of ~158 households, increasing urbanization, rising household incomes, connected rural consumers, and increasing consumer spending.

The E-Commerce market is expected to touch US$ 350 billion in GMV by 2030. As of December 2022, there were 7.8 billion daily e-commerce transactions. Online shoppers in India are expected to reach ~500 million in 2030 from 150 million in 2020.

 Online shoppers in India are expected to reach ~500 million in 2030 from +150 million in 2020. The Indian e-commerce industry is expected to cross US$ 350 billion mark by 2030, growing at a CAGR of 23%.

The Indian Retail sector has seen good investments and developments in the recent past.

Cumulative FDI inflows stood at US$ 4.63 billion in the retail trading sector between April 2000-March 2024. Due to India’s wealth of resources, availability of labour at relatively low costs, and special investment wages such tax breaks, etc., foreign corporations prefer to invest here.

To improve the business climate and make it simpler for foreign companies to register fully owned subsidiaries in India, the Indian government has implemented several rules, regulations, and policies.

As of September 2023, Swedish furniture maker Ikea was looking for omnichannel expansion with diverse retail formats besides kicking off online operations in Delhi-NCR by the end of 2024 as it enters the second phase of growth in the Indian market.

Reliance Industries is likely to sell another 8-10% stake in Reliance Retail Ventures Ltd (RRVL) to fund expansion, retire debt and prepare for the initial public offering of the conglomerate's retail business.

In November 2022, Swiss smart wearable device maker Garmin expects India to be among its top three markets in Asia in the next five years, fuelled by post-Covid health activity trends in the country.  

In November 2022, Aditya Birla Fashion and Retail Ltd. entered a strategic partnership with the Galeries Lafayette to open luxury department stores and a dedicated e-commerce platform in India.

Canadian restaurant chain Tim Hortons plans to open around 120 stores in India in the next three years at an investment of up to Rs. 300 crores (US$ 36.33 million).

IKEA, the Swedish furniture maker has drawn up plans to invest Rs. 850 crore (US$ 102.41 million) in its Indian operation.

Swedish retailer H&M is set to launch its home décor and accessories products such as dinnerware and bed linen in India next month. H&M HOME will be available on the company’s website and through Myntra in March. 

Lulu Group, a UAE-based retail company, will invest Rs. 2,000 crore (US$ 240.96 million) to develop a shopping mall near Ahmedabad in Gujarat as part of its plans to expand business in India.

In January 2024, UPI transactions were valued at Rs. 18.4 lakh crore (US$ 221.6 billion).

In August 2022, Louis Philippe, India’s leading premium menswear brand from Aditya Birla Fashion and Retail Ltd., announced the launch of its outlet in Vadodara, Gujarat.

In August 2022, Wipro Consumer announced the launch of traditional snacks and spices as it forays into packaged foods.

In July 2022, Reliance Brands Limited (RBL) partnered with Maison Valentino to bring to India the most established Italian Maison de Couture.

In June 2022, Reliance brands limited inks a JV with plastic legno spa to strengthen toy manufacturing ecosystem in India.

In May 2022, Reliance Brands Limited (RBL) partnered with Tod’s S.p.A, the iconic Italian luxury brand to become the official retailer of the brand across all categories including footwear, handbags, and accessories in the Indian market.

In May 2022, GIC acquired 8% stake for US$ 282 million in Aditya Birla Fashion and Retail Limited.

In April 2022, Wipro Consumer Care inaugurated its factory in Telangana.

According to the Minister of State for finance, Total digital payment transactions volume increases from 2,071 crore in FY 2017-18 to 13,462 crore in FY 2022-23 at a CAGR of 45%

Online shoppers in India are expected to reach ~500 million in 2030 from +150 million in 2020.

In July 2022, Reliance Retail announced a partnership with Gap Inc to bring the all-American fashion brand to India.

The Government has approved 51% FDI in multi-brand retail and 100% FDI in single-brand retail under the automatic route, which is expected to give a boost to Ease of Doing Business and Make in India schemes, with plans to allow 100% FDI in E-commerce.

E-commerce is expanding steadily in the country. Customers have the ever-increasing choice of products at the lowest rates. Online retail market in India is projected to reach US$ 350 billion by 2030 from an estimated US$ 70 billion in 2022, due to rising online shoppers in the country. India is expected to become the world's third-largest consumer economy, reaching Rs. 27.95 lakh crore (US$ 400 billion) in consumption by 2025. Healthy economic growth, changing demographic profile, increasing disposable income, urbanisation, changing consumer tastes and preferences are some of the factors driving growth in the organised retail market in India.

  Note: ^ - According to a study by Boston Consulting Group

Related News

India's retail sector is booming, with the first half of 2024 retail leasing hitting a 5-year high of 3.1 mn sq. ft. across 8 cities.

150 to 200 D2C brands have entered offline channels and quick-commerce platforms in the past 2 years, with over US$ 4 billion invested since 2016.

The 'Deloitte Swiss Watch Industry Insights 2024' report highlights India's appeal for Swiss watchmakers, offering a profitable market with growth potential through favourable trade conditions.

India's family office sector burgeons, surpassing 300 entities from 45 in 2018, driven by a thriving market environment, pivotal to diverse sectors and 60-70% of GDP.

The Indian fast fashion industry is projected to multiply into a massive US$ 50 billion market by FY31, indicating a promising future, mainly driven by robust demand and increasing consumer inclination towards affordable and trendy clothing options.

Retail India

Industry Contacts

• Retailers Association of India
• The Franchising Association of India

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Indian retail ppt

The document discusses the concept and evolution of retailing in India. It defines retailing as the final step of distribution involving the sale of goods and services to final consumers. Retailing in India has evolved from traditional small family-run stores to the modern organized sector with shopping malls and complexes. Currently, over 90% of Indian retail remains unorganized while organized retail is a growing sector. Read less

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• 1. By: - Ramendra Mani Tripathi MBA (2nd Year) By:- Ramendra Mani Tripathi MBA 1 Indian Retail
• 2. Retailing Definition  According to Philip Kotler “retailing includes all the activities involved in selling goods or Services directly to final consumers for personal , Non business use”.  “Every sale of Goods and Services to final consumer” – Food products, apparel, movie tickets. By:- Ramendra Mani Tripathi MBA 2
• 3. Evolution of Indian Retail By:- Ramendra Mani Tripathi MBA 3
• 4. Retailing  Retail comes from the Old French word tailer, which means "to cut off, clip, pare, divide" in terms of tailoring (1365). It was first recorded as a noun with the meaning of a "sale in small quantities" in 1433.  Retailing may be understood as the final step in the distribution of merchandise, for consumption by the end consumers.  Retailers attempt to satisfy consumer needs by having the right merchandise, at the right price, at the right place, when the consumer wants it. By:- Ramendra Mani Tripathi MBA 4
• 5. Retailing  Retailers are the final business in a distribution channel that links manufacturers to consumers  Indian retail industry is the second largest employer in the country with almost 12million retail stores in India.  A retailer or retail store is any business enterprise whose sale volume comes primarily from retailing”. By:- Ramendra Mani Tripathi MBA 5
• 6. Timeline of Retailing in India By:- Ramendra Mani Tripathi MBA 6
• 7. Characteristics of Retailing  It offers direct interaction  Sale volume is comparatively large in quantities  Customer service  Sales promotions are offered at this point only  Different forms  Location and layout are critical factors  More employment opportunities By:- Ramendra Mani Tripathi MBA 7
• 8. Functions of Retailing • Sorting • Breaking Bulk • Holding stock • Communications • Assist small suppliers • Customer service By:- Ramendra Mani Tripathi MBA 8
• 9. INDIAN RETAIL-BRIEF OVERVIEW  The Indian retail sector is highly fragmented with more than 90 per cent of its business being carried out by traditional family run small stores.  In Indian context total 7% of population engaged in the retailing trade and in those 7% only 10% population are engaged in organized retailing and rest other 90% population are engaged into the Unorganized Retailing. By:- Ramendra Mani Tripathi MBA 9
• 10. Organized Retailing  Organized retailing comprises mainly of modern retailing with busy shopping malls, multi storied malls and huge complexes that offer a large variety of products in terms of quality, value for money and makes shopping a memorable experience. By:- Ramendra Mani Tripathi MBA 10
• 11. Unorganized Retailing  Traditional or Unorganized retail outlets are normally street markets, counter stores, kiosks and vendors, where the ownership and management rest with one person only. By:- Ramendra Mani Tripathi MBA 11
• 12. INDIAN RETAIL-BRIEF OVERVIEW  This provides immense opportunity for large scale retailers to set-up their operations – a slew of organized retail formats like departmental stores, hypermarkets, supermarkets and specialty stores are swiftly replacing the traditional formats dramatically altering the retailing landscape in India. By:- Ramendra Mani Tripathi MBA 12
• 13. INDIAN RETAIL-BRIEF OVERVIEW  India is the third-most attractive retail market for global retailers among the 30 largest emerging markets, according to US consulting group AT Kearney’s report published in June 2010 By:- Ramendra Mani Tripathi MBA 13
• 14. RETAIL-MARKET SIZE  The total retail sales in India will grow from US$ 395.96 billion in 2011 to US$ 785.12 billion by 2015  Indian retail sector accounts for 22 per cent of the country's gross domestic product (GDP) and contributes to 8 per cent of the total employment. By:- Ramendra Mani Tripathi MBA 14
• 15. Driving forces of Retailing  Ecommerce  The Store  Marketing  Information technology  Mobile & Social  Generation of shoppers  The economy  Coupons By:- Ramendra Mani Tripathi MBA 15
• 16. Concept of Retailing  It uses a customer-centered, chain wide approach to strategy development and implementation, it is value driven, and it has clear goals. Together these four principles form the retailing Concept By:- Ramendra Mani Tripathi MBA 16
• 17. Concept of Retailing  Customer Orientation-The retailer determines the attributes and needs of its customers and endeavors to satisfy these needs to fullest  Coordinated Effort-The retailer integrates all plans and activities to maximize efficiency By:- Ramendra Mani Tripathi MBA 17
• 18. Concept of Retailing  Value-driven-The retailer offers good value to customers, whether it be upscale or discount. This means having prices appropriate for the level of products and customer service  Goal orientation-The retailer sets goals and then uses its strategy to attain them By:- Ramendra Mani Tripathi MBA 18
• 19. By:- Ramendra Mani Tripathi MBA 19

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RETAIL IN INDIA.

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RETAILING IN INDIA

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RETAILING IN INDIA. RETAILING IN INDIA. Presentation by Shahnas A Syama K S Sobymol Devasia Sabitha Z.B. Retailing.

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RETAILING IN INDIA RETAILING IN INDIA Presentation by Shahnas A Syama K S Sobymol Devasia Sabitha Z.B

Retailing • According to Philip Kotler “retailing includes all the activities involved in selling goods or Services directly to final consumers for personal , Non business use”. • “Every sale of Goods and Services to final consumer” – Food products, apparel, movie tickets; services from hair cutting to e-ticketing.

A retailer or retail store is any business enterprise whose sale volume comes primarily from retailing”. • A retailer may be defined, as a ‘ dealer or trader who sells goods in small quantities’. • Any Organization Selling to final consumer is retailing , whether they are • A Manufacturer • A Wholesaler • A Retailer

It does not matter how they sell or serve ( By) • Person • Mail • Telephone • Vending Machine or • Internet Or • Where these are sold • A store • A street • Consumer’s House

Retailing may be understood as the final step in the distribution of merchandise, for consumption by the end consumers. • Retailers attempt to satisfy consumer needs by having the right merchandise, at the right price, at the right place, when the consumer wants it. • Retailers are the final business in a distribution channel that links manufacturers to consumers • Indian retail industry is the second largest employer in the country with almost 12million retail stores in India.

Characteristics of retailing • It offers direct interaction • Sale volume is comparatively large in quantities • Customer service • Sales promotions are offered at this point only • Different forms • Location and layout are critical factors • More employment opportunities

Retailers Types • Department stores • Specialty stores • Convenience store • Discount store • Off-price retailer • Super store

Functions of Retailing • Sorting • Breaking Bulk • Holding stock • Communications • Assist small suppliers • Customer service

INDIAN RETAIL-BRIEF OVERVIEW • The Indian retail sector is highly fragmented with more than 90 per cent of its business being carried out by traditional family run small stores. • This provides immense opportunity for large scale retailers to set-up their operations – a slew of organized retail formats like departmental stores, hypermarkets, supermarkets and specialty stores are swiftly replacing the traditional formats dramatically altering the retailing landscape in India.

India is the third-most attractive retail market for global retailers among the 30 largest emerging markets, according to US consulting group AT Kearney’s report published in June 2010

RETAIL-MARKET SIZE • The total retail sales in India will grow from US$ 395.96 billion in 2011 to US$ 785.12 billion by 2015 • Indian retail sector accounts for 22 per cent of the country's gross domestic product (GDP) and contributes to 8 per cent of the total employment.

Evolution of Indian retail Modern Formats/ International Historic/Rural Reach Traditional/Pervasive Reach Government Supported Exclusive Brand Outlets Hyper/Super Markets Department Stores Shopping Malls PDS Outlets Khadi Stores Cooperatives Convenience Stores Mom and Pop/Kiranas Weekly Markets Village Fairs Melas Source of Entertainment Availability/ Low Costs / Distribution Shopping Experience/Efficiency Neighborhood Stores/Convenience

REASONS FOR THE GROWTH • Robust economic growth • High disposable income with the end-consumer • Rapid construction of organized retail infrastructure are key factors behind the forecast growth. • Expansion in middle and upper class consumer base • Growth potential in India’s tier-II and tier-III cities as well. • The greater availability of personal credit and a growing vehicle population providing improved mobility also contribute to a trend towards annual retail sales growth of 12.2 per cent.

Indian Retail – Buoyed by high GDP growth Real Growth Rate Source :Central Statistical Organization (CS0) Projections of 8% sustainable real GDP growth rate till 2020 promise high growth potential for Indian Retail…

India Experiencing Rapid Economic Growth GDP (US$ bn) Real Growth Rate 9.4% growth rate makes India the second fastest growing economy in the world

Led by Growth in Services Sector % Increase in growth over the previous year Services sector adding to GDP in a significant manner

Driven from Consumption Throughout the 1.1 Billion Population 5-7 million Super Rich 70 – 80 million Afford Cars, Private Healthcare & Foreign travel 250 - 300 million Afford goods like Refrigerators , Scooters & Colour TVs 600-700 million (Generally Rural) Afford simple industrial products e.g. bicycles , radios , textiles Poverty Line = income less than $ 1/day 60 % of India’s population are under 24 years Source: McKinsey,

With High Private Consumption GDP US$ 935 billion Food Apparel Beverages Footwear Consumer durables Appliances Stationery Kitchen utensils Furniture Furnishings Sports goods Health & Beauty Personal Care Jewellery Timing Private Consumption US$580 Billion (62%) Public Spending and Capital Formation US$ 355Billion (38%) Transport Communication Recreation Cultural Services Education Rent Utilities Other Services Retail US$ 342 Billion (59%) Non Retail US$ 238 Billion (41%) Urban (5,100 towns) US$ 154 Billion (45%) Modern retail – US$ 12 billion 8% of urban retail spends Rural (6,27,000 villages) US$ 188 Billion (55%) Modern retail Negligible Source: Central Statistical Organization (CS0) and Technopak Analysis Conversion rate: 1 US$ = 40.86 Rs.

About US $530 Billion Retail Market by 2012 GDP* US$ 1,450 billion Private Consumption US$ 870 Billion (60%) Public Spending and Capital Formation US$ 580 Billion (40%) Retail US$ 530 Billion (61%) Non Retail US$ 340 Billion (39%) Urban US$ 252 Billion (47.5%) Modern retail – US$ 78 billion 31% of urban retail spends Rural US$ 278 Billion (52.5%) Modern retail – US$ 9 billion 3% of rural retail spends *All figures are in nominal terms after taking into account inflation Source: Technopak Analysis

Which Makes Indian Retail an Attractive Market India tops the Global Retail Development Index

ORGANISED v/s UNORGANISED • The Indian retail market, over the last decade, has been increasingly leaning towards organized retailing formats. • The pattern in domestic retailing is altering in the favor of organized modern retailing, a big change from the traditional plethora of unorganized family-owned businesses. • Rapid urbanization, changes in shopping pattern, demographic dividend and pro-active measures by the Government are abetting the growth of the retail sector in India.

Organised retail in India is expected to increase from 5 per cent of the total market in 2008 to 14 - 18 per cent of the total retail market and reach US$ 450 billion by 2015 • According to a report titled 'India Organised Retail Market 2010', published by Knight Frank India, during 2010-12 around 55 million square feet (sq ft) of retail space will be ready in Mumbai, national capital region (NCR), Bengaluru, Kolkata, Chennai, Hyderabad and Pune. Besides, between 2010 and 2012, the organised retail real estate stock will grow from the existing 41 million sq ft to 95 million sq ft. • Driven by the growth of organised retail coupled with changing consumer habits, food retail sector in India is set to be more than double to US$ 150 billion by 2025.

Organized Retailing in India (2006)

Modern Retail – Organized Channels • The share of organized retail is less than 3% of the total retail market • The size of modern retail is about US$ 8 Billion and has grown by 35% CAGR in last five years

.. but Rapid Transformation is Anticipated And may reach a share of 25% by 2017

RECENT TRENDS

Recent Trends Recent changes: Traditionally three factors have plagued the retail industry: • Experimentation with formats: Retailing in India is still evolving and the sector is witnessing a series of experiments across the country with new formats being tested out. Ex. Quasi-mall, sub-urban discount stores, Cash and carry etc. • Store design : Biggest challenge for organized retailing to create a “customer-pull” environment that increases the amount of impulse shopping. Research shows that the chances of senses dictating sales are upto 10-15%. Retail chains like MusicWorld, Baristas, Piramyd and Globus are laying major emphasis & investing heavily in store design. • Emergence of discount stores: They are expected to spearhead the organized retailing revolution. Stores trying to emulate the model of Wal-Mart. Ex. Big Bazaar, Bombay Bazaar, RPGs. • Unorganized retailing is getting organized: To meet the challenges of organized retailing such as large Cineplex's, and malls, which are backed by the corporate house such as 'Ansals' and 'PVR‘ the unorganized sector is getting organized. 25 stores in Delhi under the banner of Provision mart are joining hands to combine monthly buying. Bombay Bazaar and Efoodmart formed which are aggregations of Kiranas. • Unorganized: Vast majority of the twelve million stores are small "father and son" outlets • Fragmented: Mostly small individually owned businesses, average size of outlet equals 50 s.q. ft. Though India has the highest number of retail outlets per capita in the world, the retail space per capita at 2 s.q. ft per person is amongst the lowest. • Rural bias: Nearly two thirds of the stores are located in rural areas. Rural retail industry has typically two forms: "Haats" and “Melas". Haats are the weekly markets : serve groups of 10-50 villages and sell day-to-day necessities. Melas are larger in size and more sophisticated in terms of the goods sold (like TVs)

Ludhiana New Delhi Lucknow Varanasi Patna Jaipur Kanpur Ahamabad Indore Vadodara Bhopal Kolkata Nagpur Surat Pune Visakhapatnam Hyderabad Mumbai Bangalore Chennai Above 10 Mn inhabitants Above 4 Mn inhabitants Kochin Above 2 Mn inhabitants Coimbatore Above 1 Mn inhabitants Madurai Retail Market not limited to metros but widely across India • The classic ”skimming” strategy in the metros is not longer sufficient • 100 cities strategy • Over 250 large size shopping malls are currently under construction • Leading cities 2030 are forecasted to be • Mumbai • New Delhi • Chandigarh

AADHAR RURAL RETAILING • Future Group and Godrej Agrovet's joint venture (JV) in rural retailing, 'Aadhar', is all set for a revamp. The alliance operates stores in Gujarat, Maharashtra, Haryana and Punjab and mainly sells wheat and paddy apart from daily need products. The company also provides farmers with solutions to problems regarding their agricultural output, which includes what kind of crop can they plant and when, along with techno-commercial suggestions to help them give a better output.

Champion Agro Ltd • Rajkot based Champion Agro Ltd is planning to come up with single window shopping facility for farmers. • The company already has 35 agri-retailing outlets in the Saurashtra region, and is expected to open around 400 outlets at a taluka level across Gujarat by 2016. • It will open 50 new outlets by the end of 2011with an investment of US$ 3.3 million. The overall investment planned is between US$ 66.7 – US$ 88.94 million.

ACIL Cotton Industries • Vadodara based ACIL Cotton Industries is all set to come up with around 40 outlets of 'ACIL Krishi Store' in Gujarat. Of these, four outlets got operational in April - May 2011. As for 2011, ACIL has decided to focus on the Gujarat market. ACIL stores will sell all types of seeds, fungicides, fertilisers, micronutrients.

OTHER VENTURES • Marico is using mobile technology innovatively to arm its field representatives in their procurement process. The IT team at Marico developed a mobile-based application for Nokia 5235 series handsets. The company gave these GPS-enabled phones to 120 of its field representatives, with mapped routes.

Hindustan Unilever Ltd (HUL) is experimenting with tablet PCs in its attempt to increase its rural reach. It has been able to reach to 500,000 outlets in a year’s time. According to NitinParanjape, managing director, HUL, “We put all the villages on an IT map. The name of the village, its total strength, nearest distributors available, whether it has a school, a hospital, a primary health centre, all of this was mapped. We used this information to determine the opportunity the village presented to us.

Global Heavyweights in Indian Retailing

FDI in Retail At present, the government allows 51% foreign direct investment in a single-brand retail venture while 100% is permitted in wholesale cash-and-carry. Under single-brand retailing a store can stock goods that have the same brand. In the wholesale cash-and-carry route, which most foreign retailers use, there is restriction on sale to individuals. These stores are only permitted to sell to outfits such as restaurants and kirana stores

FDI in Retail • Foreign direct investment (FDI) inflows between April 2000 and December 2010, in single-brand retail trading, stood at US$ 66.69 million, according to the Department of Industrial Policy and Promotion (DIPP).

FDI in Multi Brand Retailing • India's multi-brand retail sector, is estimated to be worth $28 billion (Rs 125,000 crore) according to a Boston Consulting Group (BCG) study. • The government is likely to permit foreign direct investment (FDI) in the multi-brand retail sector from April 2012.

The government prepared a draft in July 2011, which says 49 per cent FDI in multi-brand retail will be allowed in a phased manner which will be effective from the next financial year i.e. April 2012. • The Committee of Secretaries (CoS) headed by Cabinet secretary Ajit Kumar Seth met on July 22 to finalise the blueprint of the proposal for political clearance. One of the major outcome of the discussion is raising 49% to 51%.

According to the the economic advisor to the Prime Minister, KaushikBasu , the government will allow FDI in three phases. In the first phase, foreign multi-brand retail chains will be allowed in the metros Delhi, Mumbai, Kolkata and Chennai. In the second phase other metros like Bangalore, Hyderabad and Pune will be included.The draft has laid out strict norms such as earmarking 40 per cent investment for backend infrastructure, such as cold storage, soil testing labs and seed farming, for prospective entrants.

The move has paved the much-required way for international retailer like Bentonville, Arkansas-based Wal-Mart Stores Inc. and Paris-based Carrefour SA to open their retail stores through strategic partnerships. • According to Business Monitor International, retail sales in India may jump from $396 billion in 2011 to $785 billion in 2015, representing a growth of around 100 per cent.

to harm self-employment opportunities • adversely affect the manufacturing sector • harm small traders across the country.

consumers will soon more options to choose products • more and more investment in the backend • Improve the standard of efficiency of supply chain management.

Latest Information on Indian Retail Scenario • Singapore-based CapitaMalls Asia, which develops, owns and manages malls across Asia, has pledged US$ 400 million to its growth in India up till 2014. Mr Kevin Chee, CEO and Country Head of CapitaMalls Asia, has said that apart from funding the two malls that are operational now, this money would be used to develop seven more malls in India.

Reliance Retail will enter the cash and carry market with "Reliance Market" in Ahmedabad; the first one to be opened by August 2011.

Ujala fabric whitener maker Jyothy Laboratories has bought Henkel AG's 50. 97 per cent stake in its Indian subsidiary for US$ 137.02 million, including debt and preference shares, the two companies revealed. The deal includes Henkel's entire portfolio that includes Henko and Chek detergents, Pril dish cleaners and Fa deodorant, and rights to the multinational's future launches.

With the launch of its first 'Arvind Experience Store' in Gujarat at Vadodara, denim major Arvind Ltd. is looking at 100 stores by the end of the financial year 2011-12. The store in Vadodara is the company's eighth in the country after seven stores in Andhra Pradesh.

Quick food service restaurant chain Subway will set up 45 outlets across the country by 2011-12 entailing an investment of around US$ 9 million. The company has now 205 outlets in India and plans to take its count to 250 by the end of 2011-12.

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