The Retail

Introduction
Industry
Retailingisthefinalstepinthedistributionof
merchandise thelastlinkintheSupplyChain
connectingthebulkproducersofcommoditiesto
thefinalconsumers.Retailingcoversdiverse
productssuchasfootapparels,consumergoods,
financialservicesandleisure.
Indevelopedcountrythreefourthoftheretailtradeis
donebyorganizedsector
HugeretailchainslikeWalMart,CarrfourGroup,Sears,
KMart,McDonalds,etc.havenowreplacedthe
individualsmallstores
Top Ten Retailers
Worldwide
Rank Retailer # of stores sale 2000US$(miln)
1 Wall-Mart Stores (USA) 4178 $180,787
2 Carrefour Group (France) 8130 $61,047
3 The Kroger Co. (USA) 3445 $49,000
4 The Home Depot, Inc. (USA) 1134 $45,738
5 Royal Ahold (Netherlands) 7150 $45,729
6 Metro AG (Germany) 2169 $44,189
7 Kmart Corporation (USA) 2105 $37,028
8 Sears, Roebuck and Co. (USA) 2231 $36,823
9 Albertson's, Inc. (USA) 2512 $36,726
10 Target Corporation (USA) 1307 $36,362
Retailing in India
Theretailmarketsize around$180billion
Retailingprovidesjobstoalmost15percentof
employableIndianadults
TheIndianretailindustryisunorganized
The Indian retail industry is fragmented
The Indian retail industry has rural bias
Young population with high disposable income
 ChangingagedemographicsinIndia

Exposuretointernationallifestyles
Qualityretailspaceunderdevelopmentinleadingurbancentres
Risingretailfinanceandconsumercredithasincreased
affordability
Changingconsumerrequirementsandlifestyles
Modernretailingformatsprovidedifferentvalueproposition
The Evolution of Indian retail
industry

ForIndianretailing,thingsstartedtochangeslowlyin
the1980s
BombayDyeing,Raymond's,SKumar'sandGrasim
andlaterTitanwasthefirsttoseetheemergenceof
retailchains
In1990retailmarketgotdiversified
FoodWorld,SubhikshaandNilgirisinfoodandFMCG;
PlanetMandMusicWorldinmusic;Crosswordand
Fountainheadinbooks
Onthegrowingtrack,bytheendofyear2000retail
industrieswasestimated13,000cr.Andtillyear2005
wasexpectedaround45,000cr.
Retailing Formats in India
Malls
Brandedstores
Departmentstores
Specialtystores
Growth of Retail Industry
in India
Keyfactors
Experimentationwithformats
Storedesign
Emergenceofdiscountstores
Unorganizedretailingisgettingorganized
Theindianconsumer:Theirearningcapacityand
shoppinghabitsarechanging
Shoppers Stop
History
EstablishedinOctober27,1991bytheK.RahejaCorp.
groupofcompany
DiversifiedfromHospitality
andRealestatetoretail
industry
progressedfrombeingasingle
brandshoptobecoming
aFashion&Lifestylestore
forthefamily
Withanimmenseamountofexpertiseandcredibility,
ShoppersStophasbecomethehighestbenchmarkfor
theIndianretailindustry
Company Profile
Itsmerchandiserangesacrossapparel,accessories,perfumes,
cosmetics,home&kitchenproductswithover260,000stock
keepingunits(SKU`s),
Thecompanyderivesrevenuefromprivatelabelswhichaccount
for20%andfromotherbrandsthatcontribute80%.
ShoppersStopsfirstexclusivehomedressingsoutletwaslaunched
inBangalore
TheCompanyhasenteredintoanOptionAgreementwithInorbit
MallsandHypercityRetail(India)Pvt,underthetermsofwhich
theCompanyhasanoptiontoacquireupto51%oftheequity
sharecapitalofHypercityRetail(India)PvtLtd
InH1FY06,SSLopenedfournewstoresadding0.2millionsquare
feettoitsretailspace.Ithas
signedup19newdepartmentstorestobeopenedbetweenFY06
08E
It plans to invest Rs1200mn in the next two years.
Financial Overview

Year2005/03(Valueincr.)
CapitalEmployed 182.15
NetWorkingCapital 61.32
CurrentAssets 145.85
CurrentLiabilities 80.53
TotalAssets/Liabilities 262.3
NetSales 510.34
BookValue(UnitCurr) 34.55
 NetProfit
Net Profits

30

20

10
Net Profits (Rs.
0
Crores)
Series1
-10

-20

-30
200103 200203 200303 200403 200503 200603
Year

SharePrices
Share Prices

700
600
Average Price

500
400
Series1
300
200
100
0
20050

20050

20050

20051

20051

20051

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Time
Pantaloon
History / Company profile
Foundedin1987
PantaloonRetail(India)(PRIL),previouslyknownas
PantaloonFashions(India)(PFIL)
ManufacturesandMarketsqualityreadymadegarmentsfor
men
300PantaloondealersspanningthemetroandclassIcities
inthecountry
Thecompanyhasacquiredthetrademarkandexclusive
licensingrightsforapparelbrandNorules(US)inIndia
Over100storesacross30citiesinIndiaandemploysover
14,000people
For the financial year ended June 2005, it had a turnover of Rs.
1,073 crore (US$ 242 million) and it is expected to touch Rs
2000 crore (US$ 444 million) by the end of June 2006.
Different brand(Stores) of
Pantaloon
BigBazaar
CentralMall
FoodBazaar
FashionStation
aLL
MeLa
EZone
StarSitara
Financial overview

Year2005/03(Valueincr.)
CapitalEmployed 504.74
NetWorkingCapital 243.01
CurrentAssets 405.16
CurrentLiabilities 162.15
TotalAssets/Liabilities 666.61
NetSales 1083.73
BookValue(UnitCurr) 99.33
 NetProfit
NET PROFIT

50

40

NET PROFIT
30
Series1
20

10

0
2001 2002 2003 2004 2005
YEAR

Capitaline
Trent
Company Profile
Establishedin1992byTATAGroup
2006 Sales: 3,765,450,000
Currency: Indian Rupees
Fiscal Year Ends: March
Share Type: Ordinary
Country: India
MajorIndustry:Retailers
SubIndustry:MiscellaneousRetailers
Employees:550
MarketCapitalization:12,824,159,807
TotalSharesOutstanding:14,427,811
Financial status

Year2005/03(Valueincr.)
CapitalEmployed 217.39
NetWorkingCapital 41.36
CurrentAssets 106.82
CurrentLiabilities 65.46
TotalAssets/Liabilities 282.44
NetSales 234.32
BookValue(UnitCurr) 165.5
 SharePrices

NetProfit
NET PROFITS

25

20

NET PROFITS 15
(Rs. crores)
10 Series1

0
200203 200303 200403 200503 200603
YEAR
Provogue
History / Company profile
Incorporatedin1997asAcmeClothingPrivateLimited
Workfashionhousemanufacturinganddistributingapparelformen
underthebrandProvogueformen
Anaggressiveadvertisingandmarketingcampaignhasenabled
Provoguecommandasuperiorbrand
Provogue'sproposaltosetup40smalland21megastores(of5,000
squarefeeteach)overthenexttwoyears
64exclusive'ProvogueStudios'spreadacross31citiesinthecountry
Financial status

Year2005/03(Valueincr.)
CapitalEmployed 77.2
NetWorkingCapital 41.36
CurrentAssets 77.72
CurrentLiabilities 17
TotalAssets/Liabilities 93.85
NetSales 108.12
BookValue(UnitCurr) 36
 SharePrices
SHARE PRICES

400

AVERAGEPRICE
350
300
250
200 Series1
150
100
50
0

07

05

03

01

11

09

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05
20

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TIME

NetProfit
NET PROFITS

14
12
10
NET PROFITS 8
(Rs. crores) 6
Series1
4
2
0
2001 2002 2003 2004 2005 2006
YEAR
Piramyd
History / Company profile
IncorporatedonMarch182005bytakingoverthebusiness
ofPiramydRetailandMerchandisingandCrossroads
Shoppertainment
Companyisintwosegments
Lifestyle retailing and Food
HomeandPersonalCare(FHPC)retailing
Theycurrentlyoperate12storesspreadacross4cities
occupyingover210,000sq.ftofretailspace
Theofferingsofthelifestyleretailingarm,Piramyd
Megastore,includeapparelandaccessorieslikejewellery,
watches,footwearandhometextiles
Target:attheinformedandfashionconsciouscustomer
Financial status

Year2006/03(Valueincr.)
CapitalEmployed 167.66
NetWorkingCapital 66.64
CurrentAssets 105.82
CurrentLiabilities 39.18
TotalAssets/Liabilities 206.84
NetSales 99.2
BookValue(UnitCurr) 59.59