Vivek Parekh Debashish Bagg Sakshi Agarwal

2010281 2010298 2010206

Sankha Dip Dutta Shantanu Pandey Shashank shekhar Tripathi Benjamin Weber

2010207 2010212 2010213 2010FE01

Agenda
Indian Retail Industry
Pantaloon Retail Ltd. Spencer Retail Ltd.

Assumptions for the study Summary of Results

Cash to Cash cycle Length of the Supply chain in number of days Supply chain in efficiency ratio Supply chin working capital productivity

Conclusion and Limitations

4th Most attractive among emerging markets Contributes to 12% to GDP of India Employees 25 Million people Organized retail 5% of total Market Lead players
Pantaloon Retail India Ltd. Spencers Retail Ltd. Etc.

Pantaloon Retail India Ltd. Incorporated on 12th Oct, 1987 Malls in 51 cities 78 Hyper markets, 113 Food bazaar etc. Leaders in Indian retail Industry

Spencers Retail Ltd. approx 200 stores Started with multi format food retail A growing player

Assumptions of study
Days of operation are 365 days a year. Inventory carry cost is 20% of total inventory cost.

Fig 1: Cash to cash cycle

150 100 50 0 -502006 -100 Pantaloons Spencer Retail Industry 2007 2008 2009 2010

Fig 2: Length of Supply chain

200 150 100 50 0 2006 2007 Pantaloons 2008 Spencer 2009 Retail Industry 2010

Fig 3: Supply Chain In efficiency Ratio

0.60 0.50 0.40 0.30 0.20 2006 2007 2008 Spencer 2009 Retail Industry 2010

Pantaloons

Supply Chain Inefficiency Ratio

0.3 Casfhlow from Operations / Sales 0.2 0.1 40% 60% 80% 100%

0 -0.120% -0.2

Supply Chain Inefficiency Ratio Spencer Retail Ltd. Retailing Industry

Pantaloons Retail Ltd.

Source: Annual Report and Capitaline

Fig 4: Working capital Productivity

500 400 300 200 100 0 2006 2007 Pantaloons 2008 Spencer 2009 Retail Industry 2010

Conclusions and Limitatations

Conclusion
Cach to cash cycle needs to be reduced Increasing length of supply chain due to intensive expansionary measures High in efficiency ratio of Spencers due to perturbation of 2009. Low productivity of working capital

Limitations
Lack of more data restricted for looking at the seasonal variation Results cannot be generalized to the complete industry due to 95% of it being un organized.

Thank you
Happy shopping