C.

Murali Raj Bharathi

Muthuran sankar
Zulfi
Divyadharshini
Divyavarshini

Thiagarajar School of Management:

Thiagarajar School of Management (TSM), Madurai has established itself in the

Southern part of India as one of the premier citadels of learning, rendering creditable
service to the cause of higher education.

History:

• The initial objective was to provide quality management education for

working executives and entrepreneurs.
• The success of this programme resulted in the inception of a part time
MBA programme in 1972 followed by the full time MBA programme
from 1986 onwards.
• The institute offers MBA & MCA Programmes, which are approved by
AICTE, New Delhi, accredited by NBA, AICTE and affiliated to Madurai
Kamaraj University.

Value-creating activities:

• Students of First MBA took initiative in publishing a monthly newsletter

“Echoes” and the first edition was released by our Director, Prof. N.
Venkiteswaran on January 29, 2011.
• Mr. Balasundar from IMS gave a presentation on “Profile Building of Business
Management graduates” on January 24, 2011.
• MCA Department of TSM is organizing "IT-RADIANT" Career Guidance in IT
for Final Year Under-Graduate students.
• Antarprerana 2011 is being held on Friday, February 18, 2011 on the TSM
campus, Madurai. Well known business personalities Mr. R. G. Chandramogan,
Director, Hatsun Agro Private Ltd, Chennai; Mrs. Parvathy Palaniappan,
Managing Director, Chona Financial Services Limited, Chennai; Mr. Kathir A
Kamanathan , Founder and CEO, Chella Software Private Limited, Madurai, have
consented to share their experiences.
 • Yukti (meaning idea) is a National Level Management and IT meet conducted by
the students of TSM every year.
• Course is to sensitise students on the social and political environment of business

Porter’s 5 Forces analysis- Indian Retail Industry:

1. Threat of New Entrants:-High

The retail industry in India is currently growing at a great pace and is expected to
go up to US$ 833 billion by the year 2013. It is further expected to reach US$ 1.3 trillion
by the year 2018 at a CAGR of 10%. As the country has got a high growth rates, the
consumer spending has also gone up and is also expected to go up further in the future. In
the last four year, the consumer spending in India climbed up to 75%. As a result, the
India retail industry is expected to grow further in the future days. By the year 2013, the
organized sector is also expected to grow at a CAGR of 40%. Hence more market players
are thinking of entering the market in India.

2. Threat of Substitute:

Lots of substitutes are available in retail segment.

Food and grocery retail

The food business in India is largely unorganized adding up to barely Rs.400 billion, with
other large players adding another 50 per cent to that. The All India food consumption is
close to Rs.9,000 billion, with the total urban consumption being around Rs.3,300 billion.

This means that aggregate revenues of large food players is currently only 5 per cent
ofthe total Indian market, and around 15-20 per cent of total urban food consumption.
Most food is sold in the local ‘wet’ market, vendors, roadside push cart sellers or
tinynkirana stores. According to McKinsey report, the share of an Indian household's
spending on food is one of the highest in the world, with 48 per cent of income being
spent on food and beverages.

Apparel retail
The ready-mades and western outfits are growing at 40-45 per cent annually, as the
market teems up with international brands and new entrants entering this segment
creating an Rs.5 billion market for the premium grooming segment. The past few years
has seen the sector aligning itself with global trends with retailing companies like
Shoppers’ stop and Crossroads entering the fray to entice the middle class. However, it is
estimated that this segment would grow to Rs. 3 billion in the next three years.

Gems and Jewellery retail

The gems and jewellery market is the key emerging area, accounting for a high
proportion of retail spends. India is the largest consumer of gold in the world with an
estimated annual consumption of 1000 tonnes, considering actual imports and recycled
gold. The market for jewellery is estimated as upwards of Rs. 650 billion.

Pharmaceutical retail
The pharma retailing is estimated at about Rs. 300 billion, with 15 per cent of the 51 lakh
retail stores in India being chemists. Pharma retailing will follow the trend of becoming
more organised and corporatised as is seen in other retailing formats (food, apparel etc).

A few corporates who have already forayed into this segment include Dr Morepen (with
Lifespring and soon to be launched Tango), Medicine Shoppe, Apollo pharmacies, 98.4
from Global Healthline Pvt Ltd, and the recently launched CRS Health from SAK
Industries. In the south, RPG group’s Health & Glow is already in this category, though it
is not a pure play pharma retailer but more in the health and beauty care business.

Music Retail
The size of the Indian music industry, as per this Images-KSA Study, is estimated at
Rs.11 billion of which about 36 percent is consumed by the pirated market and organized
music retailing constitutes about 14 percent, equivalent to Rs.1.5 billion.

Book retail
The book industry is estimated at over Rs. 30 billion out of which organized retail
accounts for only 7 per cent (at Rs.2.10 billion). This segment is seen to be emerging
with text and curriculum books accounting to about 50 per cent of the total sales. The
gifting habit in India is catching on fast with books enjoying a significant share, thus
expecting this sector to grow by 15 per cent annually.

Consumer durables retail

The consumer durables market can be stratified into consumer electronics comprising of
TV sets, audio systems, VCD players and others; and appliances like washing machines,
microwave ovens, air conditioners (A/Cs). The existing size of this sector stands at an
estimated US$ 4.5 Billion with organized retailing being at 5 per cent.

3. Threat of Competitors: High

Pantaloon:

Pantaloon is one of the biggest retailers in India with more than 450 stores across the
country. Headquartered in Mumbai, it has more than 5 million sq. ft retail space located
across the country. It's growing at an enviable pace and is expected to reach 30 million
sq. ft by the year 2010. In 2001, Pantaloon launched country's first hypermarket ‘Big
Bazaar’. It has the following retail segments:

• Food & Grocery: Big Bazaar, Food Bazaar

• Home Solutions: Hometown, Furniture Bazaar, Collection-i
• Consumer Electronics: e-zone
• Shoes: Shoe Factory
• Books, Music & Gifts: Depot
• Health & Beauty Care: Star, Sitara
• E-tailing: Futurebazaar.com
• Entertainment: Bowling Co.

Tata Group

Tata group is another major player in Indian retail industry with its subsidiary Trent,
which operates Westside and Star India Bazaar. Established in 1998, it also acquired the
largest book and music retailer in India ‘Landmark’ in 2005. Trent owns over 4 lakh sq. ft
retail space across the country.

RPG Group

RPG Group is one of the earlier entrants in the Indian retail market, when it came into
food & grocery retailing in 1996 with its retail Foodworld stores. Later it also opened the
pharmacy and beauty care outlets ‘Health & Glow’.

Reliance

Reliance is one of the biggest players in Indian retail industry. More than 300 Reliance
Fresh stores and Reliance Mart are quite popular in the Indian retail market. It's expecting
its sales to reach Rs. 90,000 crores by 2010.

AV Birla Group

AV Birla Group has a strong presence in Indian apparel retailing. The brands like Louis
Phillipe, Allen Solly, Van Heusen, Peter England are quite popular. It's also investing in
other segments of retail. It will invest Rs. 8000-9000 crores by 2010.

4. Bargaining Power of Buyer:

In unorganized sector bargaining power of buyer is high and in organized sector it

is low because of brand awarness.

5. Bargaining Power of Suppliers:

Generally in retail industry bargaining power of supplier is low. Huge retails

demand heavy price discounts to sell the products.