Our Project

Project Report On VISHAL RETAIL PVT.
LTD
DECLARATION
I hereby declare that this project report is the result of 2 month

summer training done by Ankit Kedia in VISHAL RETAIL
PRIVATE LIMITED.
This is to further declare that this project report is authentic and

a group effort and not submitted by any other student previously
to receive a degree.
DATE:
Ankit Kedia
BY University School Of Management Studies

Project Report On VISHAL RETAIL PVT. LTD.
BUSINESS
DEVELOPMENT PROJECT
UNIVERSITY SCHOOL OF MANAGEMENT

STUDIES
G.G.S. INDRAPRASTHA UNIVERSITY
SUMMER TRAINING REPORT
J U N E - J U LY 2 0 0 7
Submitted By:
ANKIT KEDIA
MBA 3rd sem.
BY University School Of Management Studies Page 2

Roll no. 105
ACKNOWLEDEGMENT
I herby offer my sincere and profound thanks to Mr. AMBIK- president

Vishal retails, who gave us such a challenging project and guided us
through out our project including analysis and presentation of the same.
Without him we would not been able to complete our project
successfully.
I would also like to thank HR department and in particular Mr.

SHALENDRA GUPTA for his valuable support.
I would also like to thank my mentor Prof. S. SANJAY KUMAR for all
the guidance and support required from time to time.

In addition I would like to give my sincere thanks to my team members

with whom I worked. It was a great experience working with these
people.
REKHA M. DHAWAN
ANKUR CHAUHAN
AKHILESH GUPTA
SANDEEP KUMAR
SANJOY BARUA
ANKIT SONEJA
ANKIT GUPTA

DECLARATION
I hereby declare that this project report is the result of 2 month summer
training done by ANKIT KEDIA in VISHAL RETAIL PRIVATE
LIMITED.
This is to further declare that this project report is authentic and not
being submitted by any other student previously.
DATE:
(Prof. S. SANJAY KUMAR)

EXECUTIVE SUMMARY
The project is about business development strategy of Vishal retail in near future as
a part of expansion plan being adopted by the company. The company is targeting
at three figures in term of its number of stores which are presently 55. This project
report suggests prospective locations and site where Vishal retail can open up its
new stores. Area covered is Delhi and NCR where presently it has 7 stores. It also
includes details about the consumer who come at Vishal mega mart for shopping.
A survey was conducted to know behavior of consumers while they go for shopping
in a particular retail store. A questionnaire has been drafted for the same, to
understand the psyche of the VISHAL MEGA MART customers to know their
needs and expectations which can be further utilized by the company to gain a
competitive edge over the competitors. On the basis of analysis done and key
finding, Delhi and NCR region was scanned and SWOT analysis of each and every
corner was done to find the prospective location where Vishal retail can open its
future stores. Property rates of the selected locations were found out and the most
critical location was selected. Similar kind of research were done in various parts of
the country by different teams to support Vishal retail expansion plan.

1. INTRODUCTION
India's vast middle class and its almost untapped retail industry are key attractions
for global retail giants wanting to enter newer markets. Driven by changing
lifestyles, strong income growth and favorable demographic patterns, Indian retail
is expected to grow 25 per cent annually.
Modern retail in India could be worth US$ 175-200 billion by 2016. With the
economy booming, competition in the marketplace is fierce. According to 'Retail in
India Getting Organized to Drive Growth', a report by AT Kearney and the
Confederation of Indian Industry, retail is one of India's fastest growing industries
with a 5 per cent compounded annual growth rate and expected revenues of US$
320 billion in 2007. Rising incomes, increasing consumerism in urban areas and an
upswing in rural consumption will fuel this growth to around 7-8 per cent.

INDIA’S ORGANISED RETAIL INDUSTRY

Indian Retail sector consists of small family-owned stores, located in residential
areas, with a shop floor of less than 500 square feet. At present the organized sector
accounts for only 2 to 4% of the total market although this is expected to rise by 20
to 25% YOY basis.
Retail growth in the coming five years is expected to be stronger than GDP growth,
driven by changing lifestyles and by strong income growth, which in turn will be
supported by favorable demographic patterns. The structure of retailing will also
develop rapidly. Shopping malls are becoming increasingly common in large cities,
and announced development plans project at least 150 new shopping malls by 2008.
The next cycle of change in Indian consumer markets will be the arrival of foreign
players in consumer retailing.
RETAIL SALES IN INDIA

INDIA: #1 EMERGING RETAIL GROWTH MARKET
As we can see form the above table that India is witnessing an emerging retail
boom.
According to A.T. Kearney GLOBAL RETAIL DEVELOPMENT INDEX, India

was placed at 5th position in the year 2003. Within a span of 2 years, India has
topped the charts placed at 1st position.
WHY INDIA IS #1 RETAIL GROWTH MARKET?
 MARKET GROWTH
8-10 % annual growth with 30% + growth for modern format retail.
 STRONG ECONOMY
Fourth largest economy on Purchasing Parity Basis.
 MARKET OPPORTUNITIES

Growing consumer aspirations together with very low penetration of modern

format retailing.
 INFRASTRUCTURE
Large amount of quality retail space being added.
INDIA RETAIL GROWTH OPPORTUNITY
From the above figure, it can be easily drawn out that there is tremendous head
room for growth in INDIA in retail as penetration is even less than 3 %.
INDIA: A NATION OF SHOPKEEPERS

SHARE OF MODERN RETAIL FORMAT
2. VRPL’s HISTORY AND CERTAIN CORPORATE MATTERS

VRPL was incorporated on July 23, 2001 under the Companies Act, 1956 as Vishal
Retail Private Limited. VRPL was converted to a public limited company on
February 20, 2006. At the time of incorporation, the registered office of VRPL was

situated at 4, R. N. Mukherjee Road, Kolkata 700 001. Subsequently VRPL’s

registered office was shifted to 54/4C, Strand Road, Kolkata 700 006 on August 1,
2001 and on February 14 2004, VRPL’s registered office was shifted to Mouza
Kuch Pukur, P.S. Bhangore, 24 Paragnas (South), West Bengal. On December 29,
2005, VRPL’s registered office was shifted to RZ-A-95 & 96, Road No. 4, Street
No. 9, Mahipalpur Extension, New Delhi 110 037, which is the present registered
office of our Company.
Acquisition of Business from M/s Vishal Garments and M/s The Vishal
Garments
Vide a business purchase agreement dated November 23, 2001 executed between
VRPL and Mr. Ram Chandra Agarwal (carrying on proprietorship business in the
name of M/s The Vishal Garments) and Mrs. Uma Agarwal (carrying on
proprietorship business in the name of M/s Vishal Garments), VRPL acquired the
business of “M/s The Vishal Garments” and “M/s Vishal Garments”, and the said
businesses were transferred to VRPL as a going concern with effect from December
15, 2001.
Acquisition of manufacturing unit from M/s Vishal Fashions Private Limited
Vide a business purchase agreement executed between VRPL and M/s Vishal
Fashions
Private Limited, we acquired the business of manufacturing of readymade garments
as a going concern with effect from March 31, 2003. VRPL went into backward
integration by acquiring a manufacturing unit for readymade garments.
Acquisition of manufacturing unit from M/s Vishal Apparels
Vide a business purchase agreement dated March 31, 2003 executed between VRPL
and Mr. Ram Chandra Agarwal (HUF) (carrying on its business in proprietorship in
the name of M/s Vishal Apparels), VRPL acquired the manufacturing unit of “M/s
Vishal Apparels” and they said manufacturing unit was transferred to our Company
as a going concern with effect from March 31, 2003.
Major Events:
A chronology of some key events in the history of the Company is set forth below:

Year Milestone
2001 • Incorporated as Vishal Retail Private Limited
• Acquired the proprietorship firm Vishal Garments & The Vishal
Garments
• Opened first store outside Kolkata
2002 • Opened first Store in Delhi
2003 • Acquired Vishal Apparels, a manufacturing unit.

• Set up a manufacturing unit in Gurgaon
2004 • Started our largest store of at Mathura Road, New Delhi having an
area of
80,000 square feet
• Nominated for the Images Retail Awards’ 2004
2006 • Our Company was converted into a public limited company

• Implementation of production and retail module of SAP
• Broadband connectivity with each and every location
• Increased our presence to an aggregate of 17 States
Details of Directors
Mr. Ram Chandra Agarwal, 41 years, is VRPL’s Chairman and Managing
Director. He holds a bachelor’s degree in commerce from St. Xavier’s College,
Kolkata. Mr. Agarwal has more than 18 years of experience in the retail industry
and has been with us since our inception in 1997. He started the business under the
name of “Vishal Garment” with a small store at 9, Lal Bazaar Street, Kolkata. Mr.
Agarwal has made efforts for the development of the value retailing industry in
India and is well known for his business acumen.
Mrs. Uma Agarwal, 31 years, is an executive Director of VRPL. She holds a
bachelor’s degree in arts. Mrs. Agarwal has more than five years of experience in
the retail industry. She has been associated with accounts department of our
Company.

Mr. Surendra Kumar Agarwal, 44 years, is an executive Director of VRPL. He

holds a bachelor’s degree in commerce. Mr. Agarwal has more than 15 years of
experience in the retail industry. He has been associated with store development and
management at various locations of our Company.
Mr. Bharat Jain, 43 years, is an independent Director of VRPL. He holds
bachelor’s degree in commerce. Mr. Jain is engaged in the business of leather
garments and accessories and has more than 21 years of work experience. Mr. Jain
joined our Board on May 8, 2006.
Mr. Jay Prakash Shukla, 30 years, is an independent Director of VRPL. He holds
a bachelor’s degree in commerce. Mr. Shukla is currently associated with Adani
Retail Limited since April 1, 2004 and has more than 11 years of work experience.
Mr. Jay Prakash Shukla joined our Board on September 30, 2006.
Mr. Rakesh Aggarwal, 42 years, is an independent Director of VRPL. He holds a
master’s degree in commerce. Mr. Aggarwal is currently engaged in roto-moulding
industry has more than 18 years of work experience. Mr. Aggarwal joined our
Board on October 31, 2006. Mr. Ram Chandra Aggarwal is the husband of Mrs.
Uma Agarwal and brother of Mr. Surendra Kumar Agarwal. None of our other
Directors are related to each other.
Corporate Governance
VRPL is in compliance of the provisions for corporate governance as stipulated in
the listing agreements with the Stock Exchanges, including with respect to the
appointment of independent Directors to VRPL’s Board and the constitution of the
audit committee, investor grievance committee and compensation committee.
Committees of the Board
VRPL have constituted the following committees of their Board of Directors for
compliance with corporate governance requirements:
(a) Audit Committee;
(b) Shareholders’/ Investors’ Grievance Committee;
(c) Remuneration Committee;
Audit Committee
The members of the Audit Committee of the Board are Mr. Bharat Jain, Mr. Jay
Prakash Shukla and Mr. Rakesh Aggarwal. All members of the Audit Committee
are independent directors. The Chairman of the Audit Committee is an Independent

Director.
The Audit Committee oversees the Company’s financial reporting process and
disclosure of its financial information. The Audit Committee further reviews the
accounting and financial policies and practices, internal control systems, quarterly,
half yearly and annual financial results. It also recommends appointment of
statutory and internal auditors and considers and discusses reports and observations
made by them.
Investors’ Grievance Committee
The members of the Investors’ Grievance Committee of the Board are Mr. Surendra
Kumar Agarwal, Mr. Jay Prakash Shukla and Mr. Rakesh Aggarwal.
The Investors’ Grievance Committee is responsible for the redressal of shareholders
and investors’ grievances such as non-receipt of share certificates, balance sheet,
dividend, etc.
Remuneration Committee
The members of the Remuneration Committee of the Board are Mr. Rakesh
Aggarwal, Mr. Jay Prakash Shukla and Mr. Bharat Jain. All members of the
Remuneration Committee are independent directors.
The Remuneration Committee determines the Company’s remuneration policy,
having regard to performance standards and existing industry practice. Under the
existing policies of our Company, the Remuneration Committee inter alia
determines the remuneration payable to our Directors.
Other Committees:
In addition, our Board constitutes, from time to time, such other committees, as may
be required, for efficient functioning and smooth operations.

Management Organisation Structure

Our management organisation structure is set forth below:

R.C.Agarwal
Chairman &
Managing
Director
Board of
Directors
S.K.Agarwal
Category Heads Whole-time
Director
Head-Supply
Merchandise
Heads - Zonal Chain
Head
Management
Head- Retail
Chief Operating
Officer
Head – Legal &

Head – IT
Secretarial
Head-Finance,
Head-Admin &
Accounts &
HR
MIS
STATEMENT OF RESTATED PROFIT AND LOSS

Rs. In Million

For the FINANCIAL YEAR For

the
period
Particulars For the 2005- 2004-5 2003- 2002 2001-
quarter 06 4 -3 02
ended
30/06/06
Sales: 153.35 483.5 425.6 229 0 0
Of products manufactured by the 1144.28 2400.9 1037.5 652.0 499. 140.96
Company 3 2 4 59
Of products traded by the Company 1297.63 2884.4 1463.1 881.0 499. 140.96
3 2 4 59
Total 2.78 6.46 1.43 1.05 35.6 1.06
4
Other income 192.37 407.02 153.7 80.15 43.1 67.91
9
Increase / (Decrease) in inventory
Total Income 1492.78 3297.9 1618.2 962.2 578. 209.93
1 5 4 42
Expenditure
Cost of goods sold 1037.5 2143.9 1047.7 664.8 426. 179.15
4 3 5 73
Staff Costs 50.5 135.44 60.35 30.21 31.9 2.2
6
Manufacturing and Administrative 56.12 179.9 134.9 88.36 8.16 2.44
Expenses
Selling & Distribution Expenses 241.29 568.75 286.33 148.6 91.1 21.37
8 3
Interest 10.68 29.12 9.83 2.09 3.34 0.48
Depreciation 21.96 53.66 29.16 14.74 9 1.46
Total Expenditure 1418.05 3110.8 1568.3 948.9 570. 207.1
1 3 32
Net Profit Before Tax and Extra 74.73 187.1 49.95 13.31 8.1 2.83
Ordinary items
Provision for Taxation (includes 26.62 61.2 15.27 3.61 1.77 0.21
wealth tax)
Fringe Benefit Tax 0.6 0.8
Provision for Deferred Tax -0.04 0.36 4.48 5.88 0.86
Net Profit After Tax & Before Extra 47.55 124.74 30.2 3.82 5.47 2.62

Ordinary items
Extraordinary Items (Net of tax)
Net profit after extraordinary items 47.55 124.74 30.2 3.82 5.47 2.62
Surplus as per restated profit & loss 166.85 42.11 11.91 8.09 2.62 0
A/c.
Less: Dividend & Dividend 0.003
Distribution Tax
Balance carried to Balance sheet 214.4 166.85 42.11 11.91 8.09 2.62
Notes:-
Figures stated in the year 2000-01, are for a period from 23rd July,2001 to 31st
March, 2002.
STATEMENT OF RESTATED ASSETS AND LIABILITIES

Rs. in Millions
Particulars 30.06.200 31.03.200 31.03.200 31.03.200 31.03.200 31.03.2002

6 6 5 4 3
A Fixed Assets:
Gross Block 686.51 461.67 240.08 123.12 60.28 23.06
Less: Depreciation -128.73 -106.77 -54.23 -25.2 -10.46 -1.46
Net Block 557.78 354.9 185.85 97.92 49.82 21.6
Less: Revaluation
Reserve

Net Block after 557.78 354.9 185.85 97.92 49.82 21.6

adjustment for
Revaluation
Reserve
Capital Work in 50.38 46.41
Progress
Total 608.16 401.31 185.85 97.92 49.82 21.6

B Investments: 9.81
C Current Assets,
Loans and
Advances:
Inventories 972.48 781.99 374.03 202.74 128.43 67.9
Sundry Debtors 0.58 0.93
Cash & Bank 43.39 39.87 22.02 20.44 25.81 8.83
Balances
Loans and 436.91 321.68 60.05 31.97 15.06 15.14
Advances
Other Current 22.64 4.24 1.11 0.23 0.48 0.19
Assets
Total 1476 1148.71 457.21 255.38 169.78 92.06
D Gross Total 2084.16 1550.02 643.06 363.11 219.6 113.66
(A+B+C)
E Liabilities &
Provisions :
Share Application 0.91 79.96 38.95 37.2
Secured Loans 631.82 476.11 195.61 9.72 18.36 18.12
Unsecured Loans 66.48 74.38 31.03 71.34 59.78 4.52
Deferred Tax 11.54 11.58 11.22 6.74 0.86
Current liabilities &
provisions:
(a) Current 237.91 181.55 85.55 58.01 44.96 29.4
Liabilities
(b) Provisions 111.04 78.57 15.73 5.6 2.05 0.22
F Total -1058.79 -822.19 -340.05 -231.37 -164.96 -89.46
G Preference Share -3.84 -3.84
Capital
H Net worth 1021.53 723.99 303.01 131.74 54.64 24.2
(D+F+G)

I Represented by:
Equity Share 177.41 164.91 148.2 120 46.8 21.8
Capital
Reserves & surplus 844.14 559.1 154.91 11.91 8.09 2.62
Less: Revaluation
Reserve
Less: -0.02 -0.02 -0.1 -0.17 -0.25 -0.22
Miscellaneous
expenditure not
written off
Net reserves & 844.12 559.08 154.81 11.74 7.84 2.4

surplus
Net worth 1021.53 723.99 303.01 131.74 54.64 24.2
Notes:
Figures stated in the year 2000-01, are for a period from 23rd July, 2001 to
31st March, 2002.
VRPL’s BUSINESS
Overview
VRPL is one of the leading retail houses in India. As of November 15, 2006, VRPL
operated 46 retail stores, including three stores which are operated by VRPL’s
franchisees. These 46 stores are spread over about 1,113,000 square feet and are
located in 17 states across India. In VRPL’s efforts to strengthen their supply chain,
VRPL have set up seven regional distribution centres and an apparel manufacturing
plant.
VRPL started as a retailer of ready-made apparels in Kolkata in 2001. In 2003,
VRPL acquired the manufacturing facilities from Vishal Fashions Private Limited
and M/s Vishal Apparels.
Subsequently, with evolution of retail industry in India and change in consumer
aspirations, VRPL diversified their portfolio of offerings to include other retail
goods. Currently, VRPL sell ready-made apparels and a wide range of household
merchandise and other consumer goods such as footwear, toys, watches, toiletries,
grocery items, sports items, crockery, gift and novelties.

VRPL follow the concept of value retail in India. In other words, VRPL’s business
approach is to sell quality goods at reasonable prices by either manufacturing
themselves or directly procuring from manufacturers (primarily from small and
medium size vendors and manufacturers). VRPL endeavour to facilitate one-stop-
shop convenience for their customers and to cater to the needs of the entire family.
VRPL believe this concept has helped us grow to their current size within a short
time frame of four years.
In order to reduce costs and take advantage of economies of scale VRPL have
embarked on backward integration of their products. VRPL’s apparel
manufacturing plant is located at Gurgaon, Haryana. For ensuring efficiency in
supply chain, VRPL have set up seven regional distribution centers located around
Kolkata (West Bengal), Thane (Maharashtra), Jaipur (Rajasthan), Ghaziabad (Uttar
Pradesh), Ludhiana (Punjab), Gurgaon (Haryana) and Delhi. Further, VRPL have
focused on developing a cost and time efficient distribution and logistics network,
which currently comprises seven distribution centers and a fleet of trucks for
transportation.
VRPL achieved total sales of Rs. 2,884.43 million for fiscal 2006, as opposed to a
turnover of Rs.1,463.12 million for fiscal 2005 and Rs. 881.04 million for fiscal
2004. During the same period VRPL’s profit after tax was Rs. 124.74 million,
Rs.30.20 million and Rs. 3.82 million, respectively. As a result, VRPL’s sales
increased between fiscal 2004 and fiscal 2006 at a CAGR of 80.94% and VRPL’s
profit after tax increased between fiscal 2004 and fiscal 2006 at a CAGR of
471.44%.
VRPL’s Competitive Strengths
VRPL believe that the following are VRPL’s principal competitive strengths which
have contributed to their current position in the retail sector in India:
Strong understanding of the ‘value retail’ segment
VRPL’s business plan involves implementation of the concept of the ‘value
retailing’, targeting the middle and lower middle income groups, which constitute
majority of the population in India. VRPL intend to provide quality products at
competitive prices. VRPL sell a vast range of merchandise across apparels and
accessories, FMCG products, food products and consumer durables with over
63,000 SKUs. VRPL’s emphasis has been to maximize the value that the customers

derive in spending on goods bought in our stores. VRPL endeavor to continuously

reduce their costs through a variety of measures, such as, in-house production of
apparels, procurement of goods directly from the small and medium size vendors
and manufacturers, efficient logistics and distribution systems along with
customized product mix at their stores depending on the regional customer behavior
and preferences. Central to their value retail strategy is to pass on the benefits of
cost reduction measures to their customers.
Strong and efficient supply chain management
VRPL’s supply chain management involves planning, merchandizing sourcing,
standardization, vendor management, production, logistics, quality control,
‘pilferage’ control replacement and replenishment. VRPL’s supply chain
management provides us flexibility to adapt to changing patterns in consumer
behavior and their ability to add value at various steps/levels. In particular, VRPL’s
supply chain management gains strength from their ability to undertake in-house
manufacture, design and development of apparels.
Strong and efficient logistics and distribution network
VRPL’s distribution and logistics network comprises seven distribution centers.
Besides, VRPL have their own fleet of 31 trucks, which helps VRPL to transport
and deliver their products in a cost and time efficient manner. VRPL believe that
their distribution and logistics set up is well networked and allows them to fulfill
the store requisition within short time period of generation and receipt of order,
which has helped VRPL to optimize in-store availability of merchandise and
minimize transportation costs. Their strong distribution and logistics network has
enabled them to dispense with the requirement of a dedicated storage space at every
store, which is an industry practice, and instead undertake periodical replenishment
of depleted stock. Due to adoption of an efficient racking system, they are able to
benefit from optimum utilization of the space allocated for display in their stores.
This provides them assistance in maintaining a low working capital requirement and
less carrying cost.
VRPL is in a position to leverage our geographical spread
VRPL’s stores and distribution centers are spread in various parts and regions of the
country. This has not only enabled VRPL to build their brand value but also
facilitated them to explore cost-effective sourcing from different locations, identify

potential markets and efficiently establish new stores in different locations. An

aggregate of 40 of 46 of our existing stores are located in Tier II and Tier III cities,
which, VRPL believe, enables them to capture market share in locations where a
majority of their target customers are located.
VRPL possess the ability to identify new locations to promote their business plans
VRPL believe that they possess the ability to identify locations with potential for
growth, in particular in Tier II and Tier III cities. VRPL have an exclusive site
identification and assessment team, which undertakes systematic analysis of the
business prospects, taking into account factors such as population, literacy levels,
nature of occupation, income levels, accessibility, basic infrastructure and
establishment and running costs. Further, VRPL have a dedicated warehouse for the
purposes of storing the materials essential for setting up of new stores.
VRPL derive substantial revenues from their private labels
VRPL have a number of private labels for apparels (i.e. apparels manufactured by
us) such as
Zepplin, Paranoia, Chlorine, Kitaan Studio, Famenne, Fleurier Women and Roseau.
In fiscal
2006, VRPL’s income from their private labels was Rs. 483.50 million, which
accounts for 16.76% of their total sales for fiscal 2006. VRPL believe that their
focus on their private labels and their recognition in their customer segment enables
them to differentiate themselves from their competitors.
VRPL’s effective use of information technology systems
VRPL believe that efficient information technology systems, processes and
business applications are essential to handle retail chain of our magnitude. VRPL’s
office processes are computerized which support procurement, supply chain
logistics, distribution centers management and store operations including inventory
management and billing. VRPL is in the process of implementing SAP. All VRPL’s
stores and distribution centers are connected through a company-wide virtual
network connection which helps to efficiently manage their network of outlets
throughout the country.
VRPL have a highly experienced and competent management team

VRPL have an experienced management team which is complemented by a

committed workforce. VRPL’s management team comprises of talented

professionals who are highly experienced in the retail sector. This has assisted them
in effective management of their stores. VRPL believe they have created the right
balance of performance bonuses and other incentives for their employees.
VRPL’s Strategy
VRPL intend to pursue the following strategies in order to consolidate their position
as one of the
leading operators in the ‘value retail’ segment in India. VRPL’s growth strategy is
based on:
Increasing their penetration in the country by leveraging their supply chain,
distribution and
logistics network
VRPL intend to increase their penetration in the country by setting up new stores in
cities where they already have presence, as also entering into new areas in the
country. In particular, they intend to focus on expansion in Tier II and Tier III
cities. VRPL believe that their existing infrastructure have been designed for a
higher scale of operations than their current size, and can help them grow with out
the need to significantly increase costs. Moreover, VRPL’s continuous effort to
improve systems and processes leads them to believe that they can deal with higher
scale of operations without any hindrance. Higher business volumes will also
improve their negotiating powers and help them get further economies of scale in
their buying.
Emphasis on Backward Integration
VRPL believe that through backward integration they will continue to substantially
control the cost of production, resulting in such cost benefits being passed on to
their customers. They intend to increase the in-house manufacture, design and
development of their products and realize economies of scale. VRPL intend to
manufacture at least 25% of their requirement for apparels and may require
expansion of their existing manufacturing facilities. This will also enable them to
reduce their reliance on external agencies for supply of their products and will result
in lower turn-around time. In addition, VRPL’s focus would be to undertake in-
house, such functions of the manufacturing processes, which, in their view, would
add maximum value and would enable them to reduce their procurement costs.

Expansion of FMCG
Historically, VRPL have derived significant portion of their revenue from sale of
apparels. In pursuance of their business plan to diversify their portfolio of offerings,
FMCG products play a key role. FMCG products are usually meant to fulfil the
daily needs of consumers and therefore, VRPL believe retailing of FMCG products
will bring customers to their stores on a frequent basis and this may in-turn lead to
consumption of their apparels. VRPL believe retailing of FMCG products would
help them to eliminate the impact of seasonality of the apparels market in India,
which depends on factors such as change in weather conditions and festival
celebrations. In furtherance of their endeavors to reduce costs, VRPL intend to
procure FMCG products directly from the manufacturers. For this purpose, VRPL
have entered into and will continue to explore the possibilities of entering into
certain arrangements with domestic FMCG majors on such terms and conditions,
which are suitable to their business model.
Procurement from low-cost production centers outside India
In addition to VRPL’s strategy to continue procurement of goods from small and
medium size vendors and manufacturers which leads to cost efficiencies, VRPL
intend to procure FMCG and apparels from low-cost production centers located
outside India. Towards this objective, VRPL’s propose to increase their
procurement of finished and semi-finished goods from China and thereby realize
economies of scale and pass on the benefits so accrued to their customers.
Increasing customer satisfaction and their base of loyal customers

VRPL believe that understanding the needs of their customers is of prime
importance for the continuous growth of their business. In order to continuously
provide customer satisfaction, their Customer management team assimilates
customer feedback and VRPL endeavor to take necessary steps to address the
requirements of their customers. In addition, VRPL have introduced, in association
with SBI Cards & Payment Services Private Limited, a co-branded credit card.
VRPL’s propose to continuously undertake such initiatives to increase the
satisfaction of our customers.
Continue to upgrade information technology systems and processes
VRPL believe that any retail business requires efficient information technology

systems for control over the functioning of various stores including stock
management, pricing and promotion, replenishment, sales, quality control and
financial accounting. VRPL is currently in the process of upgrading their
information technology set up and have entered into arrangements with leading
vendors of information technology services for implementation of more advanced
ERP applications such as SAP. VRPL intend to periodically upgrade their
information technology systems and processes.
Continue to train employees and seek entrepreneurship from employees
VRPL believe a key to their success will be their ability to continue to maintain and
grow a pool of strong and experienced professionals. VRPL have been successful in
building a team of talented professionals and intend to continue placing special
emphasis on managing attrition and attracting and retaining their employees. VRPL
intend to continue to encourage their employees to be enterprising and expect them
to ‘learn on the job’ and contribute constructively to their business, either through
ideas, personal networks or effective knowledge management. VRPL also intend to
continuously re-engineer their management and organizational structure to allow
them to respond effectively to changes in the business environment and enhance
their overall profitability.
Overview of our Operations
Business Profile and Scale of Operations
As of November 15, 2006, we operate 46 retail stores, including three stores which
are operated by our franchisees. These 46 stores are spread over about 1,113,000
square feet and are located in 17 states across India, with strong presence in Tier II
and Tier III cities. Set forth below is a map of India providing graphical depiction
of location of our existing stores, forthcoming stores and distribution centers in
India.


Region and Category Wise Revenue Break Up

The total sales from our stores based on different geographical regions for three
months ended June 2006 and fiscals 2006, 2005 and 2004 may be summarised as
below:
3 months ended 30 Fiscal 2006 Fiscal 2005 Fiscal 2004
June 2006.
Region Rs. In % of Rs. In % of Rs. In % of Rs. In % of

Millions Total Millions Total Millions Total Millions total
sales sales sales sales
North 962.49 74.17 2124.12 73.64 1164.59 79.6 567.33 64.39
East 250.37 19.3 501.52 17.39 260.61 17.8 313.71 35.61
1
West 65.33 5.03 201.64 6.99 Nil Nil Nil Nil
South 19.43 1.5 57.15 1.98 37.92 2.59 Nil Nil
Total 1297.63 100 2884.43 100 1463.12 100 881.04 100
The total sales from our stores based on various categories of merchandise for three
months ended June 2006 and fiscals 2006, 2005 and 2004 may be summarised as
below:
3 months ended Fiscal 2006 Fiscal 2005 Fiscal 2004

30 June 2006
Category Rs. In % of Rs. In % of Rs. In % of Rs. In % of

Million Total of Million Total Million Total Million Total
sales sales sales sales
Apparel 862.7 66.48 2044.28 70.87 1249.48 85.4 873.72 99.17
Non- 271.51 20.92 581.27 20.15 170.99 11.69 7.28 0.83
apparel
FMCG 163.42 12.59 258.88 8.98 42.65 2.91 0.04 0
Total 1297.63 100 2884.43 100 1463.12 100 881.04 100

Our Stores and Distribution Centers

Existing Stores
Set forth below are the details of our stores, as of November 15, 2006:
CITIES ADDRESS Area In Fiscal
Sq.ft. yr of
launch
Tier I Cities
1. Bangalore No. 31/9, Hosur Main Road, Near Central Silk Board 42000 2007
Junction, Bangalore, Karnataka
2. New Delhi 1 Padam Singh Road, Karol Bagh, New Delhi 20000 2004
3. New Delhi 2 18, Mohan Co-operative Estate, Mathura Road, 80000 2005
New delhi
4. New Delhi 3 Block-FD, Vishaka Enclave, Pitampura, New Delhi 18000 2004
5. New Delhi 4 Pal Mohan Plaza, No. 39, Block A2, Rajouri Garden, 25000 2003
New Delhi.
6. New Delhi 5 E- 367, Nirman Vihar, Vikas Marg, New Delhi – 92 10400 2004
Tier II Cities
7. Hyderabad 1 Sagar Plaza, Troop Bazar, Hyderabad. 25045 2007
8. Hyderabad 2 3-11-107, Ramanthapur, Ranga Reddy District, 36326 2007
Hyderabad, Andhra Pradesh
9. Pune Wing B, KPCT Building, Wanowarie, Pune, 45000 2006
Maharashtra
Tier III Cities
10. Agra*^ 70-71, Gandhi Nagar, Bye pass Road, Agra, 10000 2006
Uttar Pradesh
11. Ahmedabad Zodiac Square, FP 407, Bodakdev, Opp. Gurudwara, 37968 2007
S.G. Road, Ahmedabad, Gujarat
12. Amritsar SCO No. 126-127, District Sopping Centre, 31000 2007
Ranjit Avenues, Amritsar, Punjab
13. Aurangabad Bansi Nagar, Near Railway Station, Aurangabad, 25920 2007
Maharashtra
14. Baguhati PGE Plaza, VIP Road, Baguhati, Kolkata
15. Bihar Pandey Mall, Frazer Road
16. Bhilwara Hira Panna Market, Pur Road, Bhilwara, Rajasthan 21500 2007
17. 1# Shopping Hall no. 7, Western Market Building, 6400 2002
Bhubaneshwar 1 Unit-II, Bhubaneshwar, Orissa
18. 2 A-1/2 Nayapally, I.R.C. Village, Bhubaneshwar, 28000 2007
Bhubaneshwar 2 Orissa
18. Cuttack Bajarak Bati, Cuttack, Orissa 6900 2002

19. Dehradun 52, 52A, 52B, Rajpur Road, Dilla Bazar, Dehradun, 26000 2007
Uttaranchal
20. Dhanbad Main Road Saraidhela, Dhanbad, Jharkhand 20000 2007
21. Ghaziabad 1 6/3 South Side, G.T. Road, Ghaziabad, Uttar Pradesh 15000 2004
22. Ghaziabad 2 G-SR 26 to 33 and UG-SR 20-27 in Ansal Plaza, 27190 2006
Vaishali, Ghaziabad, Uttar Pradesh
23. Goa Samrat Ashok Theatre Complex, 18th June Road, 16289 2007
Panaji, Goa
24. Gurgaon SCO 9, 10, 11 and 12, Sector 14, Gurgaon, Haryana 26269 2006
25. Guwahati Amaze Shopping Mall, Guwahati, Assam 38900 2006
26. Gwalior* Kana Shopping Mall, City Centre, Gwalior, 9000 2006
Madhya Pradesh
27. Gujrat 1 Zodiac Square, FP-407, Bodakdev, Opp. Gurudwara,
SG Road, Ahmedabad Gujarat
28. Gujrat 2 Ved Road, Surat, Gujarat
29. Gujrat 3 Kings Square 703+704/3/2/,Near Jalaram Mandir, Paldi
30. Haldwani Opposite Naini Valley School,Nainital Road ,
Haldwani
31. Hissar Parmanand Murarilal Building, Old Mandi Road, 15374 2006
Near Parijat Complex, Hissar, Haryana
32. Indore 1 Kranti Appartments, B Wing, Yashwant Niwas Road, 9500 2003
Indore, Madhya Pradesh
33. Indore 2 Mangal City, Plot No. A-1, PU-4, Commercial Scheme 32128 2007
No. 54, Indore, Madhya Pradesh.
34. Jaipur 1 Plot no. 1, Opposite Government Hostel, Ajmer Road, 15000 2003
Jaipur, Rajasthan.
35. Jaipur 2 Shop No. 202 (A), Shop No. G-1, Shop No.202, 18861 2006
Crystal Court, 5, Indra Palace, Malviya Nagar,
Jaipur, Rajasthan.
36. Jaipur 3 Commercial Block-1, Sector-5, Vidhyadhar Nagar, 26470 2007
Main Sikar Road, Jaipur, Rajasthan.
37. Jalandhar Plot No B-X 111 / 455 Swani Motors, at G.T. Road, 35350 2007
B.M.C.Chowk Jalandhar (Punjab)
38. Jammu & Near Govt. Tube Well, Kunjwani Byepass, Jammu
Kashmir
39. Jamshedpur NH-33, Dimna Chowk, Manho, Jamshedpur, 30000 2007
Rajasthan.
40. Jodhpur 6 B, Chopasani Road, Near Ashok Leyland Store, 23298 2006
Jodhpur, Rajasthan.
41. Kanpur 16/111, Mall Road, Kanpur, Uttar Pradesh 30344 2007

42. Lucknow* Tulsi Theatre Building, 12, Rani Laxmi Bai Marg, 13000 2007
Hazratganj, Lucknow, Uttar Pradesh.
43. Ludhiana 1 Euphoria Towers, 2435, Maharaj Nagar, 27450 2005
Firozpur Road, Ludhiana, Punjab.
45. Ludhiana 2 Sector 32, Urban Estate, Chandigarh Road, 38000 2007
Jamalpur, Ludhiana, Punjab.
46. Nasik Suyojit Commercial Complex, Near Hotel Prakash, New
Mumbai-Agra Road, Mumbai Naka, Nasik
47. Patiala Arjan Complex, Main Sirhind Road, 31000 2006
Between Petrol Pumps, Patiala, Punjab
48. Panchkula SCO No. 104 & 105, Sector -5, Punchkula, Haryana
49. Raipur Guru Ghasidas Plaza, Amapara, G.E. Road, 31275 2007
Raipur
50. Ranchi Central Bank Building, Vishnu Talkies, 4500 2002
Main Road, Ranchi, Jharkhand
51. Siliguri 1# No. 351/437/362, Ward No. X, Sevoke Road, Siliguri, 6500 2003
West Bengal
52. Siliguri 2 Spencer Plaza, Burdwan Road, Siliguri, West Bengal 19467 2007
53. Surat Ved Road, Surat, Gujarat 15312 2007
54. Udaipur 138, 139, Machla Magra, Udaipur, Rajasthan 32712 2007
55. Varanasi C-27/278, Mohalla Jagat Ganj, Chetganj, 9400 2003
Varanasi, Uttar Pradesh
TOTAL 1113048
* operated under franchise arrangements.
# operated under commission or joint venture arrangements.
^ Our store at Agra, which was operated by a franchisee, has been destroyed by a
fire on November 27, 2006 and is currently not in operation.
VRPL Business Processes

Currently, VRPL’s business plan involves implementation of the concept of value
retail in India. VRPL sell quality products at reasonable prices by directly procuring
from manufacturers.
VRPL’s business process can be summarised as below:
Establishment of Stores
Selection of location
VRPL consider the following factors while deciding the locations where they are
going to operate.
Selection of city/ location
In selecting location for a new store, VRPL start by identifying the city/town.
VRPL target primarily cities/towns which may be classified as Tier II or Tier III
cities. In this regard, an analysis of the demography, literacy levels, nature of
occupation and income levels.
Within a city/town, VRPL target locations with good infrastructural facilities such
as easy accessibility, provision for water, electricity and other basic amenities.
VRPL prefer to locate their stores in areas where real estate is available at
reasonable prices.
Segmentation of Target Audience
The efforts of VRPL’s retail business are targeted towards families having total
income which can be classified under the “lower middle” and “middle” income
groups. Accordingly, VRPL plan their strategy to search for areas within cities
where such customers are domiciled in large numbers and make efforts to locate
themselves within the reach of such customers.
Store Planning, Layout and Operations
VRPL believe that adoption of standard formats for their stores has led to their
brand establishment and identification among their customers and will increase
their base of loyal customers. In pursuance of this, they have adopted standard
parameters for store planning and establishment. For ensuring standardised formats
of their stores, VRPL consider various factors, such as internal and external décor
and colour schemes, allocation of store space, stock mix and pricing and accounting
methods.
Merchandise Planning
VRPL’s merchandise planning is based on the concept of category management
rather than traditional brand management practices.
Apparels and Non Apparels
Under category management for, say, apparels, VRPL create and cater to products
across length and breadth of a category at different price points, fabrics, designs,
shapes, seasons, colors and sizes.

VRPL formulate annual merchandising plan for each division of merchandise

taking into consideration factors such as past sales data, regional customer tastes
and preferences, number of stores (established and proposed), likely fashion and
trends, in-house production resources, vendor management and price. Each division
is further divided into major categories (for instance, men’s apparel as a division is
further divided into three major categories, namely, upper, lowers and sports and
ethnic wear). These major categories are in turn segregated into various
subcategories. For example, men’s upper as a major category would be further
divided into several sub-categories such as formal shirts, casual shirts, party wear
etc. Each sub-category consists of pre-defined SKUs, which are classified on the
basis of price point, brand, style, pattern and size.
VRPL draw annual sales projections for different SKUs and, accordingly, ascertain
their sourcing requirements. Based on such information and lead time estimates for
supplies, purchase orders with delivery schedules are issued.
The inventory position for each SKU is reviewed fortnightly taking into account the
actual sales and variations from the budgeted plans. Regular visits to the stores are
made by the category merchandising team to identify the slow-moving-SKUs and
explore the options to expeditiously dispose of them.
For certain non apparel categories, their merchandise planning and scheduling also
depends on introduction of new products and schemes by the vendors. For instance,
if a branded home appliance manufacturer replaces a product with a new version,
then their planning for the product would need to be reviewed based on the
acceptability of the new version.
FMCG
For FMCG products, the merchandising plans are not formulated in advance for the
year, since the products and schemes are introduced, replaced and withdrawn
regularly by the manufacturers. Accordingly, VRPL determine an overall annual
target for sales of FMCG products. VRPL ascertain the demand and monitor the
inventory position on a real-time basis, to minimize the stock turnover time. For this
purpose, they have pre-determined stock levels at the distribution centers or stores
(in case a store is not fed from a distribution centre), which when reached results in
generation of purchase requisitions through an automated process.

In-house Manufacturing
VRPL benefit from backward integration and in-house manufacturing of part of the
apparel products sold in their stores. Through our manufacturing capabilities, VRPL
is able to attain relative independence from intermediaries with a competitive
advantage in terms of value and cost. VRPL use their manufacturing strengths to
focus on enhancing product knowledge and their experiences from manufacturing
enable them to negotiate better terms from the vendors and job workers.
VRPL currently have an apparels manufacturing plant at Gurgaon, Haryana. The
manufacturing plant is well-equipped with fully automatic machines for fusing,
buttoning, embroidery and welt pocket-making operations. The factory has a
capacity to manufacture 5,000 pieces per day. The plant was commissioned in 2004
and achieved a capacity utilization of 80%. It has 450 machines and is operated by
500 workers. Further, VRPL are exploring the possibilities for establishment of
another manufacturing facility, for the purposes of which they have acquired certain
portions of land admeasuring 7.24 acres in Dehradun, Uttaranchal.
In addition to in-house manufacturing, they have outsourced some parts of the
manufacturing to “job workers” who work in their factory premises. VRPL
undertake quality control measures by way of random sampling to ensure the pre-
determined quality standards are met. To verify that the quantity of supplies is as
per the order, they undertake count-check for every receipt of the goods.
VRPL’s manufacturing team works closely with their design team to understand
trends, develop products, value engineer and finally create season wise collection
that cater to regional tastes.
Purchasing
Purchasing or vendor management assumes critical importance in retail business
where one has to deal with multiple products. VRPL have in place a vendor
management system, under which they identify vendors all over the country and
overseas and seek to develop alliances and arrangements with them. They regularly
interact with the vendors and share information such that the vendors remain
familiar with their goals and targets. It has been their strategy to procure goods from
small and medium sized vendors and manufacturers, which they believe has led to

reduction in the cost of goods they sell and increase in their profitability.
Apparels and Non Apparels
Upon ascertaining the procurements needs based on each SKU, VRPL explore the
various options for sourcing the products. they continuously strive to procure goods
from the place of origin to reduce the costs and control the quality. For identifying
the vendors, VRPL assess the various possible options on factors such as capacity,
credibility in the market, quality awareness and experience.
After identifying the vendors for the goods, VRPL place purchase orders based on
their SKU-wise plan, estimated lead time of each vendor and quantity to be
procured from each vendor. VRPL follow a policy of ‘payment on delivery’ to
negotiate better prices with the vendors and in certain cases they also release
payments in advance. To ensure quality of supplies, VRPL check quality by way of
random sampling at the time of receipt of the goods. To verify that the quantity of
supplies is as ordered, they undertake count-check for every receipt of the goods.
FMCG
For FMCG products, VRPL procure from large as well as small and medium size
manufacturers. For procurement from the large manufacturers or their distributors,
they endeavour to enter into formal arrangements for supply of products to all
VRPL stores, such that they are able to derive fixed margins from sales of such
products, irrespective of the locations. Under these agreements, they benefit from
special discretionary discounts and offers directly from the manufacturers or their
distributors.
Since most of the arrangements with the large manufacturers or their distributors
are for supplies across the country, they facilitate VRPL to expeditiously launch
new stores, as VRPL do not have to identify local sources for supplies of the FMCG
products. Such arrangements also help VRPL in standardizing the promotional
schemes across all VRPL stores.
For some of the FMCG products, such as staples and food grains, we purchase in
bulk and break them down into smaller packages for sales. Further, based on our
assessment of regional tastes and preferences, VRPL purchase the some products
locally from small and medium size vendors.
Apparel Manufacture
The basic raw materials required for the manufacturing process of apparels includes

fabrics and accessories. VRPL merchandising teams source fabrics from local
manufacturers in India depending upon their production plan. VRPL also source
fabrics from the place of origin. VRPL source various other components and
accessories from vendors in various parts of the country and also import them from
China.
Inventory Management, Distribution Network and Logistics
VRPL’s distribution network and logistics encompasses all activities to ensure that
goods are dispatched in right quantities and at right time to reach stores with
sufficient time in hand to promptly cater to customer demands and optimization of
inventory position.
They have built a system to monitor the inventory position on a real-time basis at
each store, under which a stock requisition or delivery order is generated when pre-
determined stock or re-order levels are reached. The re-order levels for stores are
determined based on factors such as display levels, lead time for replenishment and
average daily sales. VRPL review these re-order levels on continuous basis to factor
in variances in demand based on seasons, trends and promotional schemes.
VRPL have seven distribution centres over approximately 385,033 square feet.
These distribution centres are located around Kolkata (West Bengal), Thane
(Maharashtra), Jaipur (Rajasthan), Ghaziabad (Uttar Pradesh), Ludhiana (Punjab),
Gurgaon (Haryana) and Mahipalpur (New Delhi). VRPL have clearly demarcated
the stores which will be serviced by each distribution centre. The reorder levels for
distribution centres are ascertained on the basis of factors like average daily sales of
all the stores services, lead time for replenishment and buffer stock, which caters to
both the existing and proposed stores to be fed. As for the stores, we regularly
review these re-order levels.
VRPL’s distribution centres and stores are connected through company-wide virtual
network connection through broadband which helps to efficiently manage their
network of stores and distribution centres throughout the country.
VRPL have a fleet of 31 trucks. They primarily utilise their own vehicles to
transport the inventory to their stores from the distribution centres. In addition,
VRPL use the services of logistic solution providers including low cost transport
service providers in order to deliver products on time to VRPL stores and optimize

transportation costs. Distribution centres operations have been streamlined through

the standardisation of racking system, layouts and implementation of automatic
replenishment system.
Pricing
VRPL follow uniform pricing policy across their stores in respect of private labels
and non-branded products sold by them. This enhances brand loyalty, encourages
customer confidence and results in operational convenience. In relation to the other
products, the prices may vary between stores on account of state-specific taxation
and vendor policies.
Sales Promotions and Customer Service
VRPL’s category management system is used to plan promotional schemes. They
launch promotional schemes weekly. Apart from general sales promotion, the
category manager formulates promotional plans for ‘slow movers’. In addition, to
promote sales, they focus on layout of the stores and positioning, presentation and
display of merchandise, in order to appeal to the customer. Under arrangements
with some of our merchandise manufacturers, they receive payment on account of
display of their products.
VRPL have also entered into a co-branded card agreement with SBI Cards &
Payment Services
Private Limited (“SBI”) for providing a credit card called “SBI - Vishal Mega
Mart” to our customers. A cardholder accumulates points on the basis of purchases
made and the points accumulated can be redeemed for gifts or purchases.
Advertising and Publicity
VRPL undertake regular promotion of their stores through print media, television
and local radio channels and have organized press conferences in the past to
promote ourselves. Outdoor advertising such as banners, posters and hoardings are
employed to advertise and to increase visibility.
In September 2005, VRPL entered into a long term advertising agreement with
Bennett, Coleman & Company Limited (“BCCL”). Under the agreement, they are
entitled to fixed discounts for our advertisement in print publications of BCCL for a
period of five years from the date of the agreement. In addition, BCCL would also
act as a facilitator for other print and non-print media of the Times Group i.e.

internet, radio and television or any other new medium launched during the tenancy
of the agreement. As a part consideration, VRPL had issued 1,670,605 Equity
Shares of Rs. 10 each and 384,190 Preference Shares of Rs. 146 each amounting to
an aggregate of Rs. 300 million.
Internal Controls and Cost Reduction Measures
As a value retail chain, VRPL emphasize on reduction of costs at various stages and
levels. In addition to reduction of costs of procurement and by way of optimization
of inventory, VRPL employ on the following measures to enhance efficiencies and
reduce operational and administrative costs:
Pilferage Control
VRPL have established three-layer security checks to control losses on account of
pilferages at our stores. At the first level, VRPL employees screen the goods being
carried out of the store by the customers. Professional security guards oversee the
screening process. Lastly, VRPL have deployed electronic sensors to check any
pilferages. In addition, all VRPL stores are covered by closed circuit television
monitoring.
Resource Utilization
VRPL believe in reducing operating and administrative costs by way of optimum
utilization of their human and other resources. For instance, we determine the
staffing requirement on basis of a matrix containing factors such as store space and
footfall intensity. VRPL also train their employees to assume cross-functional
responsibilities. As a measure for optimum utilization of their space resources, they
have adopted an efficient racking system by deploying relatively higher racks to
maximize the space available in a store. The upper slabs of a rack are utilized for
storage and the lower ones for display. This helps VRPL in eliminating the need of
dedicated storage spaces is most of VRPL stores.
Efficiency of Processes
VRPL believe in adopting processes which are efficient. For instance, they ensure
that about a quarter of the staff at a new store is deployed by transferring from their
existing stores. This helps in ensuring that a new store is operated efficiently and
that the freshly recruited staff receives on-the job training from the experienced
staff. VRPL believe in continually reviewing and re-engineering various operational
and administrative processes to make them both more efficient and cost effective.

Wastage Monitoring
VRPL endeavor to reduce wastage of goods at various stages. For instance, for
transportation of goods in their trucks, they use iron boxes instead of cardboard
cartons to ensure that the damage in transit is minimized. In addition, iron boxes
have a longer life and have been more cost efficient.
Franchise and Other Arrangements

VRPL have franchise arrangements for three of their stores at Agra, Gwalior and
Lucknow. Under the franchise agreements, the franchisee operates the stores. The
expenditure for establishing the stores and holding the inventory is incurred by the
franchisees subject to an assurance from their Company that there would be a
minimum payment of commission towards the estimated operational expenses
incurred by the franchisee. The sales registered in such stores are accounted for in
our books and, as a consideration, VRPL pay a fixed commission on sales to the
franchisees.
VRPL store at Agra, which was operated by a franchisee, has been destroyed by a
fire on November 27, 2006 and is currently not in operation.
In addition, VRPL have entered into commission or joint venture arrangements for
one store each in Bhubaneswar and Siliguri with the owners or lessees of the
immovable properties where such stores are located. For the Siliguri store, VRPL
operate the store and are obligated to pay a commission of 2% of the net sales per
month from the store, subject to a minimum of Rs. 224,000 per month, subject to
certain escalation provisions. Under the joint venture arrangement for VRPL
Bhubaneswar store, VRPL operate the store and are obligated to pay commission of
2% on total monthly turnover of the store and fixed commission of Rs. 113,300 per
month subject to certain escalation provisions.
Information Technology Systems
VRPL are focused on acquisition and implementation of advanced information

technology systems, processes and business applications in order to handle all store
operations including inventory management and billing. VRPL office processes are
also computerized which support procurement, supply chain logistics, distribution

centers management and inventory control. All the locations are connected through
company-wide virtual network connection which helps to efficiently manage their
network of outlets throughout the country.
VRPL believe that their business requires efficient management and storage of data
and information to utilise for business analysis, research and forecast. Based on
VRPL’s existing information technology systems, they are able to generate detailed
daily reports covering the various aspects of their business such as division wise
sales per store, inventory movement and position at stores and distribution centers
and generation of purchase and delivery orders.
In August 2005, VRPL had entered into a software end-user license agreement with
Systems,
Applications and Products in Data Processing Private Limited (“SAP India”) for
grant of a nonexclusive and perpetual license to VRPL to use the SAP software,
documentation and other information related thereto.
VRPL have partly implemented their information technology set up and are
currently in the midst of completing the process of upgrading their information
technology set up and have entered into an agreement dated September 6, 2005 with
Tata Consultancy Services Limited for providing information technology services
including implementation of more advanced ERP applications such as SAP,
rendering services inter alia for management information system on reports related
to stock management, receipt processing, picking and packing, project systems,
merchandise assortment management, pricing and promotion, sales, controlling and
financial accounting.
Competition
VRPL face competition from other retailers of similar products and services. These
include standalone stores in the organized and unorganized sector, as well as other
chains of stores including department stores. VRPL focus on offering our customers
a vast variety of products and services catering to their diverse requirements and
needs.
Human Resources

Our human resource policies are aimed towards creating a skilled and motivated
work force. VRPL have 6,938 employees both employed in their stores as well as in
our manufacturing unit and other facilities, on September 30, 2006.
The following table provides a classification of VRPL employees on the basis of
their age and education.
Age No. of Employees
18-24 4,093
25-35 2,013
35 and above 832
Total 6,938
Education No. of Employees
Under Graduates 4,440
Graduates 2,081
Post Graduates 417
Total 6,938
Compensation and Performance Based Incentives
VRPL’s compensation policy is performance based and they believe it is

competitive with industry standards in India. VRPL endeavor to recognize talent
and potential in their employees and encourage them to take additional
responsibilities. Based on performance, VRPL calibrate their employees and reward
loyalty by preferring in-house promotions.
Training
VRPL encourage their employees to be enterprising and expect them to ‘learn on

the job’ and contribute constructively to their business, either through ideas,
personal networks or effective knowledge management. In essence, we wish to train
their employees to become next generation entrepreneurs, who can effectively lead
the growth of their business.
Insurance
VRPL maintain comprehensive insurance coverage with Tata AIG, Bajaj Allianz,

Royal Sundaram and IFFCO-TOKIO for their existing stores, distribution centers,
manufacturing facilities and trucks. VRPL insurance policies include
comprehensive coverage for electronic equipment, fire and special perils and
burglary.
Further, recently VRPL have filed a claim of Rs. 22.50 million on account of fire in
their store at Meerut on July 7, 2006. In this regard, we have received Rs. 7.50
million as an interim payment.
Immovable Properties
VRPL’s registered office is located at RZ-A-95 & 96, Mahipalpur Extension, New
Delhi over which they have leasehold rights till December 15, 2006.
Additionally, VRPL conduct their business from several stores in respect of which
they have entered into arrangements with the owners.
Factories
VRPL’s existing manufacturing facilities are located at Plot No. 224, Phase 1
Udyog Vihar, Gurgaon, for which they have leasehold interest until May 4, 2009. In
addition, VRPL have recently acquired freehold interest in relation to a land
admeasuring 7.24 acres in Dehradun, Uttaranchal, where they are exploring the
possibilities for establishment of another manufacturing facility.
Other Properties
VRPL have recently acquired freehold interest in relation to a land admeasuring
82,830 square feet in Hubli, Dharwad.
Retail as an Employment Generator
The retail sector can generate huge employment opportunities, and can lead to job-
led economic growth. In most major economies, ‘services’ form the largest sector
for creating employment. US alone have over 12% of its employable workforce
engaged in the retail sector. The retail sector in India employs nearly 21 million
people, accounting for roughly 6.7% of the total employment. However,
employment in organised retailing is still very low, because of the small share of

organised retail business in the total Indian retail trade. The share of organised
retailing in India, at around 2%, is abysmally low, compared to 80% in the USA,
40% in Thailand, or 20% in China, thus leaving the huge market potential largely
untapped. A modern retail/retail services sector has the potential of creating over 2
million new (direct) jobs within the next 6 years in the country (assuming only 8-
10% share of organised retailing), according to Arvind Singhal, CMD, KSA
Technopak. Retail can create as many new jobs as the BPO/ITeS sector in India. A
strong retail front-end can also provide the necessary fillip to agriculture & food
processing, handicrafts, and small & medium manufacturing enterprises, creating
millions of new jobs indirectly. Through it’s strong linkages with sectors like
tourism and hospitality, retail has the potential of creating jobs in these sectors also.
Though the Planning Commission has identified retail as a prospective employment
generator, in order to strengthen the multiplier effect of the growth in organised
retailing upon the overall employment situation, a pro-active governmental support
mechanism needs to evolve for nurturing the sector. Issues like FDI in retail,
allocation of government-controlled land on more favorable terms, strong political
and bureaucratic leadership, etc., need to be addressed adequately.
Indian Retail- expanding the number of formats
In modern Retailing, a key strategic choice is the format. Innovation in formats can
provide an edge to Retailers, ranging from discount stores to supermarkets &
hypermarkets and specialty chains. Formats Adopted by Key Players in India is
shown in the exhibit below:
Format Description The Value Proposition

Branded Exclusive showrooms either owned or franchised out by a Complete range available for
Stores manufacturer. a given brand, certified
product quality
Specialty Focus on a specific consumer need, carry most of the brands Greater choice to the
Stores available consumer, comparison
between brands is possible
Department Large stores having a wide variety of products, organized One stop shop catering to
Stores into different departments such as clothing, house wares, varied/consumer needs.

furniture, appliances, toys, etc.

Supermark- Extremely large self-service retail outlets One stop shop catering to
ets varied consumer needs
Discount Stores offering discounts on the retail price through selling Low Prices
Stores high volumes and reaping economies of scale
Hyper- Larger than a supermarket, sometimes with a warehouse Low prices, vast choice
mart appearance, generally located in quieter parts of the city available including services
such as cafeterias.
Convenien- Small self-service formats located in crowded urban areas. Convenient location and
ce stores extended operating hours.
Shopping An enclosure having different formats of in store retailers, all Variety of shops available to
Malls under one roof. each other
Retailer Original formats Later Formats

RPG Retail Supermarket (Foodworld) Hypermarket
(Spencer's)Specialty
Store (Health and Glow)
Piramal's Department Store (Piramyd Megastore) Discount
Store (TruMart)
Pantaloon Small format outlets (Shoppe)Department Store Supermarket (Food
Retail (Pantaloon) Bazaar)Hypermarket
(Big Bazaar) Mall
(Central)
K Raheja Group Department Store (shopper's stop) Specialty Supermarket (TBA)
Store (Crossword) Hypermarket (TBA)
Tata/ Trent Department Store (Westside) Hypermarket (Star India
Bazaar)
Landmark Department Store (Lifestyle) Hypermarket (TBA)
Group
Others Discount Store (Subhiksha, Margin Free, Apna
Bazaar), Supermarket (Nilgiri's),Specialty Electronics

Road Ahead; Plans of Large Retailers
• Reliance Retail: Investing Rs.30,000 crore ($6.67 billion) in setting up multiple

retail formats with expected sales of Rs.90,000 crore-plus ($20 billion) by 2009-10.
• Pantaloon Retail: Plans to occupy 10 mn sq.ft retail space and achieve Rs.9,000
crore-plus ($2 bn) sales by 2008.
• RPG: Planning IPO, will have 450-plus Music World, 50-plus Spencer's Hyper
covering 4 mn sq.ft by 2010.
• LIFESTYLE: Investing Rs.400 crore-plus ($90 mn) in next five years on Max
Hypermarkets & value retail stores, home and lifestyle centers.
• Raheja's: It Operates Shoppers Stop, Crossword, Inorbit Mall, and 'Home Stop'
formats. Will operate 55 Hypercity hypermarkets with US$100 million sales across
India by 2015.
• Piramyd Retail: Aiming to occupy 1.75-million sq.ft retail space through 150
stores in next five years.
• TATA (Trent Ltd.): Trent to open 27 more stores across its retail formats adding 1
mn sq.ft of space in the next 12 DLF malls. Titan industries to add 50-plus Titan
and Tanishq stores in 2006.

3. RESEARCH OBJECTIVE
To develop business development plan for Vishal retail to support its expansion
strategy.
Sub objective:
 Determine hot buttons for the customers. What really matters to him or her
while shopping?
 Determine consumer rating on agreed parameters to measure how
consumer rate Vishal Mega Mart vis a vis where they would like to be.

4. RESEARCH METHODOLGY
• Data collection
Research instrument: - Questionnaire, unstructured interview.
Sample size: - 1000 people (250 Consumers in each store)
Stores covered- Pitampura
Rajori Garden
Vikas Marg
Karol Bagh
Time duration: - 15 days

Sample Questionnaire: - Apendix-1.
Data Collection: - Primary data directly collected from respondents
• Data analysis
The data collected on the nine point scale would be compressed to 3
point scale by adding the scale to make it more interpretable. The
same is recorded on an excel sheet and qualitative data is refined to
present it as suggestions and complaints. The same is being
presented in form of graphs and tables and correlation is being
shown between some of the important items.
.

4. Findings
1. The choice of a store location has a profound effect on the entire business
life of a retail operation. A bad choice may all but guarantee failure, a good
choice, and success.
2. Choosing a retail location is, at best, a risky undertaking. Considering the
consequences of choosing a location that proves to be unsuitable, it pays to
get as much assistance as possible. According to our survey more than 50%
of the customer prefers to shop in a retail store which is easily accessible to
them.
3. Advertising plays a very important role in achieving growth for any retail
company. This is evident from the fact that Advertising by Retail Industry
registered a rise of 12 percent during January - May 2007 over January -
May 2006.
4. The right location, trained manpower, software assistance, product with a
distinct differentiation, a strong value proposition, efficient supply chain
management - these are the factors that influence the success of a retail
outlet. With competition in this segment increasing, differentiation and a
strong value proposition assume significance. Retail chains are realizing that
they cannot be another ‘me-too’ store. The differentiation today among the
5-6 retail chains has come through private labels, which in some cases
account for as much as 70 per cent of the total merchandise in the outlet.
This analysis shows that more than 60% of the customers go shopping on
the basis of their shopping experience in retail stores.
5. Variety offered by any retail store is of very much important to attract all
type of customers in the stores. A large variety of products caters to each
segment of customers. Our analysis shows tells us that more than 80% of
people go to retail stores for shopping based on the product range offered

there.
6. Shopping experience within a store also has a great impact on selecting a
product from a particular retail store. Overall ambience include
infrastructure facilities provided by the store such as air conditioners,
lighting etc. our study shows that’s overall ambience within a store has great
impact on 50 percent consumers for selecting a particular retail store for
shopping.
7. Pricing is in fact a dramatic controller of at least 3 key strategic elements to
any company's success: Company’s image, the product and services
company sells and consumer behavior. The Importance of Pricing your
Products' will give you an insight into developing appropriate costing
methods and the impact of getting it wrong in today's competitive creative
market. This topic should be of interest to anyone who is unsure if they are
getting it right. Remember the difference between over or under-pricing
your work could mean a very short future for any business. Approximately
60% customers think that Price is the most important factor while they go
for shopping in a retail stores
8. Quality in everyday life and business, engineering and manufacturing has a
pragmatic interpretation as the non-inferiority, superiority or usefulness of
something. This is the most common interpretation of the term. The quality
of a product or service refers to the perception of the degree to which the
product or service meets the customer's expectations. Quality has no specific
meaning unless related to a specific function and/or object. Quality is a
perceptual, conditional and somewhat subjective attribute. And in addition
to that, more than 90% of customers place quality as the most important
factor than anything else in the list to shop in a retail store.
9. Approximately 70% of customers prefer to shop in those retail stores where
it is easy & convenient to shop instead of narrow & not convenient shopping
like on the street & local markets.
10. More than 70% of customers place variety as an important factor to shop in
a particular retail store.
11. Brands name bears an important role while shopping of any type of goods.
So building a brand for a retail store is important as 80% of customer still

prefer to buy branded clothes in the retail store instead of local or unbranded
clothes.
Next part of our questionaraire was targeted on how consumer rated Vishal and its
products and services offered. Its shows pretty much satisfactory results. The results
are as follows:
1. Our analysis says that more than 70% of customers visit VISHAL MEGA
MART at most 3 times in a month.
2. More than 50% of customers who purchased product from VISHAL MEGA
MART are satisfied.
3. And 99% of customers would like to visit VISHAL MEGA MART again
for their shopping.
4. More than 60% of customers come to VISHAL MEGA MART to buy
clothing; next in the line is FMCG products offered in some of the stores.
Vishal can think of expanding its presence in FMCG retailing as it has a
huge market.
Next we calculated various correlations between various elements of our study. In

probability theory and statistics, correlation, also called correlation coefficient,
indicates the strength and direction of a linear relationship between two random
variables. In general statistical usage, correlation or co-relation refers to the
departure of two variables from independence. In this broad sense there are several
coefficients, measuring the degree of correlation, adapted to the nature of data.
Our finding were as follows

1. Correlation between age distribution & income range - .0678.
2. Correlation between age distribution & occupation - -.1958
3. Correlation between gender and visiting of store again- 1
4. Correlation between price & overall experience - .8522
5. Correlation between price & quality - .8539

6. Correlation between price & brand - .4894

7. Correlation between store location & price - .9327
5. DATA ANALYSIS
SECTION-A of our questionnaire tells us about, what is important for customer
when they go for shopping in a retail store.
1. According to our survey more than 50% of the customer prefers to shop in a
retail store which is easily accessible to them.
2. It tells that advertisements in press & outdoors are of much importance to
shop in a particular retail store.
3. This analysis shows that more than 60% of the customers goes shopping on
the basis of their shopping experience in retail stores.
4. This part tells us that more than 80% of people go to retail stores for
shopping based on the product range offered there.
5. It tells us that more than 50% of the customers go shopping on the basis of
overall ambience viz. lighting, A/C etc.
6. Approximately 60% customers think that Price is the most important factor
while they go for shopping in a retail stores.
7. And in addition to that, more than 90% of customers place quality as the
most important factor than anything else in the list to shop in a retail store.
8. Approximately 70% of customers prefer to shop in those retail stores where
it is easy & convenient to shop instead of narrow & not convenient shopping
like on the street & local markets.
9. More than 70% of customers place variety as an important factor to shop in
a particular retail store.
10. While 80% of customer still prefer to buy branded clothes in the retail store
instead of local or unbranded clothes.
11. Next part of our analysis says that more than 70% of customers visit
VISHAL MEGA MART at most 3 times in a month.
12. More than 50% of customers who purchased product from VISHAL MEGA
MART are satisfied.

13. And 99% of customers would like to visit VISHAL MEGA MART again
for their shopping.
14. More than 60% of customers come to VISHAL MEGA MART to buy
clothing.
15. More than 50% of customers visiting VISHAL MEGA MART are those,
whose income level is below Rs 2, 00,000.
16. More than 55% of customers are MALE.
17. More than 55% of the customers visiting VISHAL MEGA MART are in the
age group of 20-30.
18. Approximately 50% of the customers visiting VISHAL MEGA MART are
from service occupation.
19. Correlation between income range and how many times you shop in Vishal
Mega Mart. - .4164
20. Correlation between age distribution & income range - .0678
21. Correlation between age distribution & occupation - -.1958
22. Correlation between gender and visiting of store again- 1
23. Correlation between price & overall experience - .8522
24. Correlation between price & quality - .8539
25. Correlation between price & brand - .4894
26. Correlation between store location & price - .9327

6. INTRODUCTION - REAL ESTATE

Household consumption continues to be a key growth driver for the Indian
economy (accounting for about 65% of GDP) supported by an upward movement in
housing demand, which has helped to provide some buoyancy to the real estate
market. The importance of the housing in real estate sector in India can also be
gauged from the fact that for every one rupee invested in the construction of houses,
an estimated 75-80% (Rs0.75-0.80) is added to the GDP and the sector assists to the
development of over 250 other ancillary industries The real estate sector is amongst
the top 3 employment generators in India.
Real estate in India at an average of 10-12% annualy with an upsurge in
commercial real estate on account of the Indian BPO and insurance boom. Lease
rentals have been picking up steadily and there is a gaping demand for quality
introduction.
Almost 80% of real estate developed is residential space and the rest comprised of
office, shopping malls, hotels and hospitals. Commercial real estate development is
being driven increasingly by the off-shoring business, including high-end
technology consulting, call centers and programming houses which in 2003 were
estimated to have accounted for 10mn sq. ft. of real estate development.
6.1 RECENT TRENDS IN REAL ESTATE

The real estate market in India has been witnessing increased activity. Demand for
real state is on a strong upswing reflected in higher prices despite increased supply.
Prices are buoyed further as new construction lags demand
6.1.1 Property Prices moving up; Demand Supply Gap expected to widen
Based on discussion with market participants, it has been analysed that residential
prices have increased about 15-20% on average in the last one year. There has been
strong growth in demand supported by rising disposable incomes, low in rates,

fiscal incentives on both interest and principal payments and increasing

urbanization. In 1995 EMI (Estimated Monthly Installments) as a part of salary was
54% as compared to 28 % in 2005. Also, as per industry estimates, the average age
of a house buyer has fallen from 42 to 31yrs.
6.2 STRATEGIC LOCATIONS IN INDIA
6.3 RETAIL GROWTH STORY

Over the next five years a CAGR of 6%+ is expected in real incomes; urbanization
will accelerate and the proportion of young people will increase (53% of population
is under 5 years).This indicates a bright future for retail. The target market for
modern retailers lies in India’s biggest 67 cities that have a population of more than
500,000 that are home to about 14% of the population and contribute more than
27% to country’s GDP. According to the NCAER survey, about 75% of India’s

“superrich”, 70% of the “sheer rich”, 64% of the “clear rich” and 58% of the “near
rich” live in these 67 cities. On the other hand, less than 7% of the country’s
deprived live in these cities vs. 93% in the rest of India. It is in these 67 cities that
the majority of India’s middle-class and 55% of Indians with salaries of greater than
USD 10,000 live. Besides the top six, the other 61 cities with a population of more
than half a million represent about 7% of the nation’s population and contribute
about 13% to GDP. Income growth has been rising fast in the smaller cities.
According to NCAER, while the main metros remain the country’s richest cities,
the pace of growth has been far higher in the smaller cities.
Cities with more than 1 million Population
The number of malls is expected to rise from the current 40 to around 250 by 2010.
In terms of total area, India shows that in just 5 cities – Northern Capital Region
(region around Delhi), Mumbai, Bangalore, Hyderabad and Pune –there is currently
12.40mn sqft of retail mall space which is expected to rise to 55.7mn sqft by 2007
end for the 5 cities in aggregate.
60 % of malls are in 6 metros

The retailing sector in India is highly fragmented. There are about 12 million retail
outlets spread across the country, of which more than 80% are run by small family
businesses using only household labour. India’s organized retail sector is in the
early stages of development and represents only 2.5% of the total retail market as
compared to China’s 17% which is its closest competitor.
CHINA Vs INDIA RETAIL

INDIA RETAIL: REAL ESTATE RENTALS
7. REAL ESTATE: - INTRODUCTION

Household consumption continues to be a key growth driver for the Indian
economy (accounting for about 65% of GDP) supported by an upward movement in
housing demand, which has helped to provide some buoyancy to the real estate
market. The importance of the housing in real estate sector in India can also be
gauged from the fact that for every one rupee invested in the construction of houses,
an estimated 75-80% (Rs0.75-0.80) is added to the GDP and the sector assists to the
development of over 250 other ancillary industries The real estate sector is amongst
the top 3 employment generators in India.

Real estate in India at an average of 10-12% annualy with an upsurge in

commercial real estate on account of the Indian BPO and insurance boom. Lease
rentals have been picking up steadily and there is a gaping demand for quality
introduction.
Almost 80% of real estate developed is residential space and the rest comprised of
office, shopping malls, hotels and hospitals. Commercial real estate development is
being driven increasingly by the off-shoring business, including high-end
technology consulting, call centers and programming houses which in 2003 were
estimated to have accounted for 10mn sq. ft. of real estate development.
From the above analysis, we have tried to know the VISHAL MEGAMART’s
customer. On the basis we have selected following prospective locations where
VISHAL MEGAMART can be opened.

On the basis of our CONSUMER BEHAVIOUR analysis, we are suggesting some

feasible locations for opening new VISHAL stores where target market can be
easily catered. These locations are as follows:
• NORTH DELHI:-
Kamla Nagar, Model Town, Ashok Vihar, Lawrance Road.
• SOUTH DELHI:-
Munirka, Vasant Kunj.
• WEST DELHI:-
Uttam Nagar, Dwarka, Moti Nagar, Madhu Vihar.

• EAST DELHI:-
Patparganj, Mayur Vihar.
• CENTRAL DELHI:-
Daryaganj.
1. KAMLA NAGAR – PROPERTY RATES AND LOCATION
 THREE SIDE OPEN HOUSE
 AREA- 1500sqft BASEMENT

o 2250sqft GROUND FLOOR
o 2250 1ST FLOOR
TOTAL CARPET AREA 6000sqft
 RENT Rs.700000(PER MONTH)
 PROPERTY ON KOLHAPUR ROAD NEAR GOKUL MART
 ACCESIBLE BY METRO NEAREST STATION-

o VISHWAVIDALYA AT A DISTANCE OF 2KM,
o PULBANGASH AT A DISTANCE OF 2KM
 PRESENTLY ELECTRICITY LOAD AVAILABLE IS 10KW
 CONTACT PERSON- SHARMA & SHARMA PROPERTY

S K JAIN- 9818747724, J M SHARMA -9811213612
2. MUNIRIKA – PROPERTY RATES AND LOCATION
 TWO PROPERTY AVAILABLE

a) 1ST PROPERTY
o 2000sqft AVAILABLE AT GROUND FLOOR
o RENT – Rs.85000 PER MONTH
o NEAR CANARA BANK
o NO PARKING AVAILABLE
o MIX USE LAND
b) 2ND PROPERTY
o 1400sqft AVAILABLE AT GROUND FLOOR

o RENT – 110000 PER MONTH
o PROPERTY IN PRADEEP MARKET ALSO CALLED AS
HANUMAN
o MARKET
o PARKING AVAILABLE
MIX USE LAND
 NOT ACCESIBLE BY METRO BUT EASILY ACCESIBLE BY BUS
 CONTACT PERSON-JBG ASHIRWAD ASSOCIATES

• FAZAL- 9312662266 , 9910138721 , 41670469
3. KISHAN GANJ AND VASANT KUNJ – PROPERTY

RATES
AND LOCATION
 AREA- 2000sqft

 PROPERTY OPPOSITE FORTIS HOSPITAL AND NEAR SAHARA

RESTAURANT
 WIDTH OF ROAD IN FRONT OF THE PROPERTY IS 18-20 FEET
 PARKING AVAILABLE
 NOT ACCESIBLE BY METRO
 CONTACT PERSON-JBG ASHIRWAD ASSOCIATES

• FAZAL- 9312662266 , 9910138721 , 41670469
Location: South of Delhi
One of the uptown area in Delhi, Vasant Kunj has sprawling green land and
residential colonies set in naturally rich surroundings. It is considered to be largest
colony in Asia. One of the most posh locales, Vasant Kunj is genuinely the place to
live. It is a home for over 1000,000 people. It is approximately 4 km from Munirka
on one end, about 1 km from Mehrauli and about 3 km from the Indira Gandhi
International Airport.
The area under Vasant Kunj has been divided into 4 sectors, A, B, C and D. Each of
these sectors has their own sub sectors. Since this place also an upscale colony, you
can easily find swanky markets and upbeat crowd. Premier higher educational
institutes like JNU, IIT and IIFT are situated in the neighbourhood of Vasant Vihar.
Vasant Vihar is a relatively modern addition to Delhi as it came into existence in
the late 1960s. At that time, the surrounding area was deserted and Vasant Vihar
was considered to be on the outskirts of the city and was hard to get to using public
transport. As Delhi has grown, that has changed and it is now one of the most
expensive neighbourhoods in the city.

It is a well organized colony with special market places. You can watch a movie, sit
in a restaurant, play pool or sip wine in a pub here. If you are a night animal,
discotheques here welcome you till late in night.
Vasant Kunj has fast grown as a commercial center in South Delhi. There are
several malls under construction in this part of the city. These malls are expected to
be the biggest shopping hubs in South Delhi. The mall will be the largest mall in
Asia and 4th largest in the world.
Some of the famous schools of the region are D.P.S, Vasant Valley, Ryan Public
School, G.D Goenka, Bhatnagar Public School. Apart from this, the area houses
cinema halls, hospitals, health clubs that are of much importance. Lately many
hospitals have come up in the locality, the latest being the Fortis Hospital
adjoinining Sector B1. An Apollo Clinic is located in the B11 Shopping Complex.
And there is also the super speciality Indian Spinal Injuries Centre. All these factors
are dominating over the cost of houses of Vasant Kunj. The Real Estate in Vasant
Kunj is growing with rapid pace.
Accessibility
• Distance between ISBT and Vasant Kunj is approx 15 kms.

• Distance between Domestic Airport and Vasant Kunj is approx 8 kms.
• Distance between ISBT and Vasant Kunj is 19 kms.
4. UTTAM NAGAR– PROPERTY RATES AND LOCATION
 AREA- 1000sqft AVAILABLE AT BASEMENT

1000sqft AVAILABLE AT GROUND FLOOR

 PROPERTY ADDRESS -WZ-B-39, MAIN NAJAFGARH ROAD

UTTAM NAGAR, NEW DELHI -59

o UTTAM NAGAR WEST AT A DISTANCE OF 100 METERS
 NEAR UTTAM NAGAR BUS DEPOT
 WIDTH OF ROAD IN FRONT OF THE PROPERTY IS 40-50 FEET
 ELECTRICITY LOAD AVAILABLE AS PER THE REQUIREMENT
 CONTACT PERSON- VIKAS ADS CENTRE

HARENDRA KUMAR SINGH – 9818536052,
69581650
Location: West Delhi

This place is considered one of the best residential colonies of West Delhi. Being
the oldest, the region is divided into four major blocks namely A, B, C, D and then
further subdivided into sub blocks. All the blocks in Janak Puri houses at least one
local markets. It was once the largest planned residential colony in Asia.
All the blocks of Janakpuri have at least one local market. However the more
popular markets in Janakpuri are the C-4-E market and the B-1 super market. Now,
the District Center has become the most popular shopping centers in the West
Delhi. It boasts of a multiplex, some multi-storied shopping cum office complexes,
restaurants, book shops, gift stores, brand outlets, courts, Transport Authority,
Telephone Exchange. It is undoubtedly the commercial hub of West Delhi.

Janakpuri is home to some very good schools like St. Marks ,St. Francis de Sales &
D.T.E.A Sr Sec School at B-1 etc. It also has a Delhi University College and a
technical studies institute. Janakpuri has a good network of public services such as
hospitals and nursing homes. It has the large multi specialty Mata Channan Devi
Hospital and is served also by the government run Deen Dayal Upadhay Hospital in
Hari Nagar which has also started building its 600 bedded super specialty wing in
Janakpuri itself.
C-4 E is one of the most visited markets of all times. Apart from this it also houses
many religious site like temples, Gurudwaras, Churches. Here you will find another
rare example - Three religious centres (temple, a Gurudawara and a Church), next
to each other.
District Center in this part of Delhi has become a popular market and hang out point
for visitors. It has multiplexes, telephone offices, restaurants, book shops, gift
stores, brand outlets, transport authority and courts. The commercial hub of Delhi is
one of the important area in the city.
DTC buses ply at regular intervals providing connectivity to this place. Auto
rickshaws can also be hired to commute within the city. Janakpuri has good
network of roads and is also connected by metro trains.
Accessibility:
• Janak Puri lies close to Shivaji Marg

• One and Half hour from New Delhi Railway Station
• 20 km. (approx.) from Old Delhi Railway Station
Areas Near Uttam Nagar
• Hari Nagar
• Janak Puri
• Vikaspuri
• Mahavir Nagar

5. MADHU VIHAR – PROPERTY RATES AND LOCATION
 AREA- ABOVE 2000sqft AVAILABLE AT GROUND FLOOR

o DWARKA SECTOR 10 AND 12 WITHIN A RANGE OF 2KM
 NEAR MADHU VIHAR BUS STOP AT NAJAFGARH ROAD.
 6 LANE ROAD IN FRONT OF THE PROPERTY
 PARKING AVAILABLE AT SERVICE LANE
 MIX USE LAND

 CONTACT PERSON- JAIN PROPERTIES
MANISH JAIN- 9810454312
6. ASHOK VIHAR– PROPERTY RATES AND LOCATION
 AREA- 2250- 2400sqft AVAILABLE AT GROUND FLOOR
 NOT ACCESIBLE BY METRO
 ADJACENT TO TVR MALL.

 NEAR SATYAWATI COLLEGE
 MIX USE LAND
 CONTACT PERSON- SHINING ESTATES

SATISH KUMAR- 9810544009
JATIN KUMAR- 9910044009
7. MOTI NAGAR– PROPERTY RATES AND LOCATION
 AREA
o 5000sqft1ST FLOOR
o 5000sqft2ND FLOOR
TOTAL CARPET AREA 15000sqft
 RENT Rs.825000 (PER MONTH)

o MOTI NAGAR
 NEAR LAXMAN SYLVANIA FACTORY
 OPPOSITE FUN REPUBLIC
 100 METER ROAD IN FRONT OF THE PROPERTY

 PARKING AVAILABLE ON ROAD
 CONTACT PERSON- JAI BHAGWAN KEDIA (OWNER OF THE

PROPERTY) Mb.- 9312246555
 TOTAL CARPET AREA OF BUILDING IS 15000sqft BUT HE IS
WILLING TO GIVE ONLY UPTO 10000sqft
 CONTACT HIM AS EARLY AS POSSIBLE AS SOME DEAL IS
GOING ON WITH SOME MNC FOR THE SAME PROPERTY
8. DWARKA– PROPERTY RATES AND LOCATION
 AREA, 2000sqft
 RENT Rs.170000 (PER MONTH)

o DWARKA SECTOR 12
 NEAR HYUNDAI AND TATA SHOWROOM
 PLAZA MARKET SECTOR 12
 GOVERNMENT APPROVED MIX LAND USE
 CONTACT PERSON- JAIN PROPERTIES

MANISH JAIN- 9810454312

Location: South - West Delhi
The city of Dwarka is bounded by Najafgarh Road, Pankha road and Rewari
railway line. The land use distribution of Dwarka follows a distinct hierarchical
pattern from sub-city level to sector level. The landuse distribution is under:
“Gross Residential 48.54% Commercial 7.05% Government 0.94% Public / Semi-
Public 6.20% Recreational 19.94% Transport 14.33% Utilities 3.00%”
The sub city of Dwarka Papankala is developed by DDA and this sub city is
planned in a way to accommodate the needs of urban India. The design of Dwarka
reflects contemporary concepts of urban planning and environmental design along
with the socio-economic context of Modern Delhi. The project planned by DDA is
of 29 sectors. Each of the residential sector has been envisaged to be self contained
communities and has been designed for a population of about 30,000 each. Dwarka
provides housing for near about 2 Lakh families. People usually live in co-operative
societies in Dwarka. Dwarka offers the right mix, aesthetic & recreational facilities
etc. It is fast becoming the address of tomorrow. The development pace in Dwarka
is fast.
Commercial sector in Dwarka is also growing with pace. Commercial properties are
developing along with the Metro. Real Estate prices in Dwarka is also rising with
the development. Metro is the main reason behind the hike in property prices.
The most noticing part of Dwarka’s planned sectors is the Green Part or Greenery.
About 20% of the Dwarka project is planned to develop as Green Area. Most of the
implementation of the project is done. People are fastly moving to Dwarka because
of the Environmental reasons also.
Features of Dwarka:
• Golf Ground
• Cricket Stadium
• ISBT
• Amusement Parks and water parks
• Sport Clubs
Upcoming:

The future of Dwarika city is bright and exciting with a number of malls and
shopping complexes in the pipeline. Residents are eagerly waiting for more
developed market places, malls, restaurants and hotels. For instance, Vardhman
Crown Mall coming up in Sector 19, Dwarka will provide an excellent opportunity
to move into this potential business and commercial centre.
It is more than just a piece of real estate. It is a blend of sound marketing principles
and contemporary ambience that entices the entire family to visit the place time and
again. The evolving dynamics of retailing reflect a significant shift the way
consumers are looking towards shopping. Today’s consumer is getting used to
higher level of service and efficiency, wide range of choices, global brands, coupled
with value addition and perks. The architectural design of Vardhman Crown Mall
encompasses convenience as its core and ensures maximum circulation area for
better visibility of show windows and ensures smooth pedestrian movement.
Vardhman Crown Mall reflects a unique harmony in design and ensures high
frontage for showrooms, optimized space management and convenient approach
through wide periphery roads. A walk through the central atrium will bring you to
every shop in one grand sweep. Making for a vibrant shopping life and offering
retailers high visibility from any corner of the mall. Moreover, the second
Diplomatic Enclave is likely to be located in sub – city.
There are flyovers also proposed to be constructed in the vicinity. One of them
would be near the Palam Railway stn. Second from I. G. I. Airport and third from
the National Highway- 8 (Gurgaon Highway) (100 mtr wide) from Bhagwan
Shankar murty at Gurgaon Road. A connecting 45 mtr road from Janakpuri (Pankha
Road) to Pappankala whose work has been awarded to Ansal constructions is
already under progress.
Accessibility:
• IGI Airport: 04 Kms
• Dhaula Kuan is just 10 Kms away from Dwarka
• India Gate is 15 Kms away
• Through metro CP or Rajeev Chowk is just Half an hour away
• Old Delhi Rly. Station is 23 Kms away

9. MODEL TOWN (III)– PROPERTY RATES AND

LOCATION
 AREA
 RENT Rs. 450000(PER MONTH)

o AZADPUR (UNDER CONSTRUCTION)
 MAIN MARKET NEAR NIIT CENTER
 60 FEET ROAD IN FRONT OF THE PROPERTY
 CONTACT PERSON- JAIN PROPERTY DEALERS

D.S. JAIN- 9312873215, K.V. JAIN- 9868552251
10. MODEL TOWN (II)– PROPERTY RATES AND

LOCATION
 AREA
 RENT Rs. 800000 (PER MONTH)

o AZADPUR (UNDER CONSTRUCTION)

 OPPOSITE GUJRAWALA, NEAR FORTUNE MALL
 PARKING AVAILABLE IN COMPLEX
 120 FEET ROAD IN FRONT OF THE PROPERTY
 CONTACT PERSON- JAIN PROPERTY DEALERS

D.S. JAIN- 9312873215, K.V. JAIN- 9868552251
11. DARYAGANJ– PROPERTY RATES AND LOCATION
 AREA
o 2000 sqft GROUND FLOOR

o CHANDNI CHOWK AND CHAWARI BAZAR WITHIN RANGE
OF 2KM
 NEAR JAMA MASJID, NEAR PATAUDI HOUSE
CONTACT PERSON- RAJA PROPERTIES-9868572703
12. PATPARGANJ– PROPERTY RATES AND LOCATION
 AREA
o 8400sqft FIRST FLOOR

o 8400sqft SECOND FLOOR
 TOTAL CARPET AREA- 26000sqft

o KARKARI MORH (UNDER CONSTRUCTION)
 LOCATED IN RG SQUARE MALL, BEHIND MAX BALAJI HOSPITAL
 ESCALATORS LIFTS AVAILABLE
 100% POWER BACKUP
 AIR CONDITIONER FACILITY AVAILABLE WITH ELECTRICITY

CONVERTER
 PARKING AVAILABLE IN MALL
 22 FEET SERVICE LANE
 CONTACT PERSON- RG GROUPS

ALOUK AGGARWAL- AGM (SALES)
9313764842
Location: Located East of Delhi
Patpargang is a well established industrial location.
Patparganj is one of the first few developed colonies in East Delhi. The area has
been divided into two parts. One includes residential apartments wile other is the

industrial area. With the advent of several branded retail outlets and markets, it has
slowly developed into a commercial center. It is also known as IP-EXTENSION
(INDRAPRASTHA EXTENSION).It has got a large no. of C.G.H.S (co-operative
group hosing societies) refferd by a name (e.g; Arya Nagar Appartments, Jai
Appartments).
From a hair pin to a car, you can find almost every thing here. The area is among
the best planned areas in East Delhi. The area was developed by Delhi
Development Authority which is playing a major role in making this place grow.
DDA has developed many Group Housing Systems (GHS). In totality, Patparganj is
quiet affordable.
Roads are well laid and connected to different parts of the city. The area is well
linked with other places in Delhi like CP, Nehru Place, ISBT, Old and New railway
stations. You will have hassle free journey across the city from this region.
This area is also rich in necessities that are generally required by the people.
Markets, parks and health clubs can be found very easily. Nursing homes, Schools
and Bus Terminal makes this region all the more comfortable to stay/reside.
Accessibility:
• 45 minutes from Nizzammudin Railway Station

• Approx 45 minutes from Sarai Kalen Khan Railway Station
• Accessibility through metro
Areas Near Patpargunj:
• Pandav Nagar
• Vinod Nagar

13. LAWRENCE ROAD– PROPERTY RATES AND

LOCATION
 AREA
o 8400sqft FIRST FLOOR
o 8400sqft SECOND FLOOR
 TOTAL CARPET AREA- 26000sqft

o KESHAW PURAM
 LOCATED RG CITY MALL.
 AIR CONDITIONER FACILITY AVAILABLE WITH ELECTRICITY

CONVERTER
 22 FEET SERVICE LANE
CONTACT PERSON- ALOUK AGGARWAL- AGM (SALES) 9313764842

14. MAYUR VIHAR– PROPERTY RATES AND LOCATION
 AREA
AS PER REQUIREMENT
 RENT @ RS. 250
 ACCESIBLE BY METRO (UNDER CONSTRUCTION)
 LOCATED OPPOSITE RELIANCE MALL STILL UNDER

CONSTRUCTION
 AIR CONDITIONER FACILITY AVAILABLE
 CONTACT PERSON- KUMAR ESTATES LINKERS PVT. LTD.--

9811022750.

Appendix -1
Graph no-1




10

11
12

13
14

15
16

17
18

Conclusion
Suggestions:-
 Include more trained sales person to help customers in the store while
shopping.
 Improve quality of the products especially clothes.
 Play good songs or soothing music in the store rather than cheap filmy
songs.
 Customer care service can be introduced
 More branded products can be displayed in the store as people still prefer
branded clothes than offered by local venders.
 Constant reminder of discounts through pamphlets, speakers inside the store
for inducing consumers for impulse buying.
 Add more cosmetic products as its having a huge market of consumers
attached to it.
 Display of product should be improved so that the product is easily visible
to the consumers.
 Eatables should be made available within the stores as offered at vishali and
mathura road showroom as it adds to a lot of revenue for the company.
 Proper advertisement in press and outdoor to make Vishal visible in the eyes
of consumers.
 Should have parking spaces in front of every store.
 Hire more salesgirls as in ladies section its very difficult for both the
consumers and salesman to interact with each other.
 Regular training to sales person to improve there overall performance.

Complaints: -
 Low variety of product available and customization of products is not there.
 Air conditioners are not properly working
 Prices are not mentioned at all places and at all products.
 Prices are not competitive as they are assumed to be higher when consumers
are visiting other retail outlets.
 Grocery items are not sufficient and they are not at all available at many
stores.
 Clothing items of women are priced unreasonably
 Lack of space in the store while shopping and moving within a stores.
Recommendation: -
 Customization of clothing should be given a important consideration.
 Proper packaging and provide contrast labeling in displays of product.
 Should apply electronic supply chain management for better inventory
management.
 Proper power back up as air conditioners are not working to their full
capacity at many stores.
 Proper placements of Gondola in the stores as space between them are very
less.
 Proper display in the gondola and top most rack of the gondola should be
used for storing of inventory rather than display of product.
 Should provide festival schemes and at proper time.
 Should use psychological pricing-more discounts by increasing the price
 Proper display of cutlery items
 Cloths should be in sync with fashion

Studying Consumer Behavior in Retail Sector

Dear Sir/Madam,
We are the employees of VISHAL MEGAMART and we are doing a survey
on Consumer Behavior in Retail sector. The following questionnaire has
been drafted to help the company understand the needs and expectations
of the customers. Therefore we request you to kindly spare some time and
give us the following information. We assure you that the results of the study
will be kept confidential.
SECTION A
Q1. Please rate each of the following based on how important they are
for you to shop at a particular retail store on a 10 point scale
1 2 3 4 5 6 7 8 9 10 97
Not at Moder Extrem Do not
all imp a-tely -ely know
import import
ant a-nt
a) Store location and penetration -----------

b) Advertisement in press, outdoors, hoardings -----------
c) Overall experience at the store time/services -----------
d) Product range offered -----------
e) Overall ambience at the store -----------
Q2. Rate the following factors which are important to you while
shopping from a particular store on a 10 point scale.
a) Price of the product -----------
b) Quality of the product -----------
c) Convenience while shopping -----------
d) Variety -----------
e) Brand -----------
Any other reason, please specify
------------------------------------------
Q3. How many times do you shop in a month?
1 times 2-3 times 3-5 times
more than 5 times
Q4. How would you rate your overall shopping experience in this retail
store? (Rate on a 10 point scale)
-----------------------------------------
Q5.Would you like to come again for shopping in this particular store?
Yes No

Q6. Which of the following item constitute the most in your shopping?
a) Food and grocery item
b) Clothing
c) Accessories
d) Others
Q7. Any Complaints / Suggestions: -

____________________________________________________________
____________________________________________________________
SECTION B
1. Name: _________________(optional)
2. Income_________________
3. Gender: Male Female
4. Age:
13-19 20-30 30-40 40-50
50and Above
5. Occupation:
Service Business
Housewife
Student Others (Please Specify)

_________

Our Project

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Our Project

Uploaded by

Copyright:

Available Formats

Project Report On VISHAL RETAIL PVT.

I hereby declare that this project report is the result of 2 month

This is to further declare that this project report is authentic and

BY University School Of Management Studies

UNIVERSITY SCHOOL OF MANAGEMENT

G.G.S. INDRAPRASTHA UNIVERSITY

SUMMER TRAINING REPORT

MBA 3rd sem.

BY University School Of Management Studies Page 2

Roll no. 105

I herby offer my sincere and profound thanks to Mr. AMBIK- president

I would also like to thank HR department and in particular Mr.

BY University School Of Management Studies Page 3

In addition I would like to give my sincere thanks to my team members

BY University School Of Management Studies Page 4

(Prof. S. SANJAY KUMAR)

BY University School Of Management Studies Page 5

BY University School Of Management Studies Page 6

BY University School Of Management Studies Page 7

INDIA’S ORGANISED RETAIL INDUSTRY

RETAIL SALES IN INDIA

BY University School Of Management Studies Page 8

INDIA: #1 EMERGING RETAIL GROWTH MARKET

According to A.T. Kearney GLOBAL RETAIL DEVELOPMENT INDEX, India

WHY INDIA IS #1 RETAIL GROWTH MARKET?

Fourth largest economy on Purchasing Parity Basis.

BY University School Of Management Studies Page 9

Growing consumer aspirations together with very low penetration of modern

Large amount of quality retail space being added.

INDIA RETAIL GROWTH OPPORTUNITY

INDIA: A NATION OF SHOPKEEPERS

BY University School Of Management Studies Page 10

SHARE OF MODERN RETAIL FORMAT

2. VRPL’s HISTORY AND CERTAIN CORPORATE MATTERS

BY University School Of Management Studies Page 11

situated at 4, R. N. Mukherjee Road, Kolkata 700 001. Subsequently VRPL’s

BY University School Of Management Studies Page 12

2002 • Opened first Store in Delhi

2003 • Acquired Vishal Apparels, a manufacturing unit.

2006 • Our Company was converted into a public limited company

BY University School Of Management Studies Page 13

Mr. Surendra Kumar Agarwal, 44 years, is an executive Director of VRPL. He

BY University School Of Management Studies Page 14

BY University School Of Management Studies Page 15

Management Organisation Structure

BY University School Of Management Studies Page 16

Head – Legal &

STATEMENT OF RESTATED PROFIT AND LOSS

BY University School Of Management Studies Page 17

For the FINANCIAL YEAR For

BY University School Of Management Studies Page 18

STATEMENT OF RESTATED ASSETS AND LIABILITIES

Particulars 30.06.200 31.03.200 31.03.200 31.03.200 31.03.200 31.03.2002

BY University School Of Management Studies Page 19

Net Block after 557.78 354.9 185.85 97.92 49.82 21.6

Total 608.16 401.31 185.85 97.92 49.82 21.6

BY University School Of Management Studies Page 20

Net reserves & 844.12 559.08 154.81 11.74 7.84 2.4

BY University School Of Management Studies Page 21

BY University School Of Management Studies Page 22

derive in spending on goods bought in our stores. VRPL endeavor to continuously

BY University School Of Management Studies Page 23

potential markets and efficiently establish new stores in different locations. An