Last quarter in our exclusive - India Retail Business Part-1 and Part-2 we touched upon the specific business

models of top retailers. Continuing to enrich our readers about the changing face of retail industry in India, we will be touching upon 6 Retail verticals [Apparel, Coffee, Consumer Durables, Footwear, Grocery and Pharmacy in this series of coverage - India Retail Chains. We are today covering India Apparel Retail Chains: Apparel is the largest organized retail category, representing 30-35% [different surveys] of organized retail market growing at the rate of 12-14% YoY. The current market size of organized Apparel is estimated to be $10 bn. Growth Drivers: Preference for ready-to-wear garments is increasing in India. Dressing habits among working women is changing leading to demand for branded apparels. Demand for western apparel brands is increasing. Disposable income of consumers, changing demographic trend, higher income level and increasing number of dual-income nuclear families. One of the main drivers for apparel retail is the willingness of young generation to experiment with mainstream fashion. Major Indian Players in Branded Apparel Segment are as follows, Ebony Retail Holdings Ltd: The company owns and runs all 7 Ebony outlets in India. ETC and Wordworth are the in-house brand of Ebony. With over 2 lack square feet of retail outlet space, Ebony is today among the largest retail players in India. Future Group + Pantaloon Retail: Through various retail chains - Pantaloon Fashions, Central Mall, Brand Factory and at the lower end through Big Bazaar. Raymond Apparel: It is a 100% subsidiary of Raymond Limited. RAL entered into the ready-to-wear business in 1986 with the introduction of Park Avenue

The Raymond Shop is a premium retail store which offers top-of-the-line brands Raymond, Raymond Finely Crafted Garments, Notting Hill, Manzoni, Park Avenue, ColorPlus and Parx.

Park Avenue: Launched in 1986. On September 8, 2007, 'Park Avenue Woman'- A complete range of Business wear for women was launched. Be: stores. Be: has a pan India presence with a store each in Ahmedabad, Ludhiana, Hyderabad, Chennai, Kolkata, two each in Bangalore, Mumbai and three in Delhi Parx: Parx is retailed through Exclusive Parx brand stores and Raymond Shop. Exclusive Parx brand stores are company-owned and operated.

Zapp! : kids apparel brand by Raymond. Currently, Zapp! is retailed through exclusive outlets, first of which was launched in Ahmedabad and the second in Mumbai. This was followed by the third store in Kolkata.

Koutons Retail India: Koutons operates 2 chains of stores - Koutons and Charlie Outlaw.

Koutons has 1350 stores all over india. Koutons has launched its first family store in Noida and is planning to pen the biggest family store in Hyderabad soon. Charlie Outlaw: There are around 537 outlets all over India. Charlie Outlaw has been launched by Koutons Retail India Pvt Ltd in October 2006.

Globus Stores Pvt Ltd: Globus was launched in January 1998 and is a part of the Rajan Raheja group. Its first store was opened at Indore. First store in Mumbai was opened on 1st November 2001. Globus has 30 stores. Shoppers Stop: Promoted by realty developers, Rahejas is a lifestyle chain with major focus on Apparels. Provogue India Ltd: Provogue is retailed through a chain of exclusive brand outlets called Provogue Studio at 70 locations in the country. Westside: Westside is a Lifestyle Chain, established in 1998 by Trent Ltd. The company has already established 31 Westside departmental stores (measuring 15,000 - 30,000 square feet. The company is planning to expand its network by adding over 30 more stores through the franchise model in smaller cities, such as Allahabad, Patna, Guwahati, Madurai, Aligarh and Jammu. The franchise-run stores will be half the size of the companyowned stores at 8,000 to 12,000 sq ft. FabIndia: Fabindia an ethnic retail chain is present in all major cities of India. currently there are over 88 oulets in addition to international stores in Dubai, UAE, Bahrain, Doha, Qatar and Rome, Italy. Planet Retail Holdings Pvt. Ltd: Planer Retail holds the Indian Master Franchises for international brands like Marks & Spencer, Guess, Debenhams and Body Shop, next, Fashion Cube, Accessorize, Sole effect. Planet Retail has over 55 stores of various concepts. Loot: The LOOT is a multi-branded discount store, offering customers a wide range of products with a minimum of 25% & going up to 70% discounts - throughout the year. Madura Garments: Madura Garments is a division of Aditya Birla Nuvo. India's leading apparel and retail company own/have perpetual license for premier brands like Louis Philippe, Van Heusen, Allen Solly, Peter England, Byford to name a few. Reliance Trends: a specialty apparel store offers mens, womens and kids garments was launched at Gurgaon and Delhi. The store carries the best of national and international brands apart from in-house brands.

Cotton County: a wholly owned subsidiary Nahar retail Ltd. The Brands Cotton County, Femme, Tazo etc. are retailed through Executive Brand Outlets under the name and style of Cotton County. There are 425 outlets, located across India in 300 cities. Gini and Jony: In 1994 the Company, Gini & Jony Apparel Pvt. Ltd., was incorporated and opened the first Exclusive Brand Outlet (EBO) in 1996 in Hyderabad. 54 franchisees, 116 shop-in-shops, 32 factory outlets and more than 600 multi-brand outlets in India. Liliput: Lilliput opened its first outlet in Delhi in April, 2003. Liliput has 180 Exclusive Brand Outlets, 175 Shop-in-shops outlets present in 105 cities and have 650 sales points. Lilliput has partnered with all the major large Multi Brand Outlets. Vishal Retail and Megamart: Retails apparels with focus on consumers at the lower end of Buying chain. Major Foreign Apparel Brands / Chains operating in India: Levi's: Levis India has 175 exclusive stores in 250 towns across the country. All its exclusive stores are run by franchisees. The company plans to have more exclusive stores offering premium denim wear. Benetton: Italian apparel chain and owner of the famous United Colors of Benetton brand. It planning to set up 20 new outlets in tier II and tier III cities across the country by the end of 2009. The sizes will be in the range of 2,500 sq ft to 4,000 sq ft Marks & Spencer: Operates ~10+ stores through its then Master Franchisee Planet Retail Holdings. However, Reliance Retail is M&S' new partner in India and all future stores will be opened in JV with Reliance. Cantabil: Cantabil Intenational Pvt. Ltd. started in the year 2000 when the first Cantabil store was inaugurated in Delhi. Since then, Cantabil has reached to 125 exclusive stores across India.

We all know that Pantaloon Retail is the largest organized retailer in India, with a retail space of more than 14msf under its belt. It has presence in multiple categories through different formats like department stores (Pantaloon), hypermarkets (Big Bazaar), seamless mall (Central) and standalone stores. In Q1-2011, Future Group added 0.68msf takes total area under operations to 14.8msf. The addition was spread across formats - 2 Pantaloons, 1 Central, 5 Big Bazaar, 3 Food Bazaar and 37 KB's Fair Price stores. In keeping with its limited expansion strategy in the Electronics vertical, only 1 electronics store was added during the quarter. Of its 5 new Big Bazaar stores, 1 store each was opened in Hassan and Gangtok for the first time. The company has opened its 100th KB's Fair Price shop in Delhi and plans to open its 100th in Mumbai in June. We expect store openings to get skewed more and more towards tier-II and tier-III cities to gain first mover advantage. To compete emerging players with deep pockets like Hypercity, More, Bharti and Star India Bazaar have aggressive store opening plans over the next 2-3 years. The management has maintained its guidance of adding an area of 2-3msf every year.

Pantaloon + Future Group Business Outlook

FRIDAY, JULY 11, 2008

Last week we covered Vishal Retail's Business Performance and outlook over the next 24 months. This week lets peek into India's retailing giantPantaloon - Future Group. Pantaloon Retail is the listed entity of Kishore Biyani's retail venture. Their are several subsidiaries and Joint Ventures, you may want to have a look at each of Pantaloon + Future Groups Business and Cross Holdings here. Pantaloon's growth has predominantly come from the significant conversion to organized retail from unorganized retail. While specialist retailers provide competition to Pantaloon's verticals of food, fashion and general merchandise, the company benchmarks itself against fully-integrated players offering services across verticals and price points. Pantaloon believes size and scale will be the important differentiators for success. Addition of Retail Space: The company expects to double the cities under coverage to around 120 by FY2011E from around 55 at present. Expect the company to increase its total retail space to 20 mn sq. ft (standalone) in FY2011E from around 5 mn sq. ft in FY2007, a CAGR of 40%. The average lease rental in 2004 was Rs 20 / sft / month. It has shot up to Rs 45 / sft / month at the end of 2007. The occupational cost is around 8%.Future Logistics is expected to add up to 9mn sft of space for backend. Loyalty Members Contribute ~50% to topline:

Home Solutions Retail: [HSR] Home Town, Furniture Bazaar, eZone, Electronics Bazaar and Collection I together constitute Home Solutions Retail. Hometown sales is expected to go upto 67% of HSR, followed by eZone at 18%, Collection I 7.5%, Furniture Bazaar 5.5% and Electronics Bazaar 3%. Big Bazaar is likely to be spun off as an independent entity. However, it will be dependent on all its logistics and backend solutions with other group companies.

Here is the complete list of retail brands created and promoted by Pantaloon Retail India Ltd across various retail segments.

Segment and Retail brand built by Pantaloon's Kishore Biyani. FASHION: Pantaloons, Central Big Bazaar and Fashion Station FOOD: Food Bazaar GENERAL MERCHANDISE: Central Malls and Big Bazaar SPECIALITY RETAILING: All , Blue Sky HOME: Home Town, E-Zone, Furniture Bazaar, Electronics Bazaar, Collection I and Mela BOOKS AND STORES: Depot COMMUNICATIONS: M- Zone and Converge M WELLESS: Star and Sitara E-TAILING: Futurebazaar.Com FOOTWEAR: Show Factory LEISURE AND ENTERTAINMENT: Bowling Co, Rain, Bollywood Caf, Chamosa, Fuel, Sports Bar, Food Stop and Your Kitchen.

Retail India - Unleashing The Next Wave - 2011-20

Everyone must be thinking Retailing in India has come a long way over the last 2 decades. Although there has been great momentum in the last decade with every existing retailer fueling thier growth plans and new entrants ranging from every other industry to this sector. International Retailers have just made little progress with all the fuss about FDI and other restrictions. However all the large retailers already have tie-ups and the few remaining are sitting on the fence waiting for the rules to be relaxed. The transformation that takes place in a year in current times is much more than what could be accomplished in a years time couple of decades ago. India is yet to see what Retail is all about. Systems, technologies, processes, training, customer service, etc - just about every aspect is still at its most nascent stage.