New Delhi Institute of Management

Report on

EPRG MODEL OF JINDAL STEEL & POWER

Submitted ByAmit Kumar Saxena(181) Ashish Paul Choudhury(184) Azhar Absar(189) Parveen Dhariwal(206) Raju Mishra(240)

Submitted toMrs. Gauri Modwel

Table of Contents 1. 2. 3. 4. Overview Details of Jindal Steel Products of Jindal Steel Limited Future Outlook

5. EPRG Approach 6. Marketing Strategy 7. HR Philosophy 8. HR Objectives 9. Recruitment

Contribution

Amit Kumar Saxena(181) PPT & Report Work Rajesh Baruah(211) Ashish paul(184) Rahul Kishore(237) Data Collection Data collection Data collection

Acknowledgement
First of all thanks to God for keeping us in good health throughout the report work. The beatitude, felicity and bliss for a successful completion of any work or task would not complete without the expression of appreciation of simple virtues to the people who made it possible. We would like to express our deepest gratitude to our report guide Mrs. Gauri Modwel , Registrar (NDIM) and faculty of Macro economic environment who helped us. I appreciatively reminisce the contribution to everyone without whom help & support, this study would have never taken its present form.

Research Methodology
Objective of report To have a knowledge about the concept of FDI in Retail and the changing shopping experience. To study the Todays Retail Format .

Type of DataWe have used all the secondary data for our report work. The data has been collected from the various famous books of macro economics and business newspapers.

Key facts
Organized Retail to form 10% of total Retailing by the end of this decade. Cultural and Regional differences are the biggest challenges. They deter Retailers, from adopting a single format. Hypermarket is emerging as the most favourable format, for the time being. Convenience store is the best way to tackle Unorganised market. Indias vast middle class and its virtually untapped Retail Sector are key attractions for global Retail Giants. 51% FDI in single brand retailing allowed to attract investment and technology and to cater to the demand for branded goods in India.

 Of the total organised retail space being developed pan-India, 35% is to come up in Tier II and Tier III cities. TODAYS RETAIL FORMATS Malls
A shopping mall, shopping centre, shopping precinct or simply mall is one or more buildings forming a complex of shops representing merchandisers, with interconnecting walkways enabling visitors to easily walk from unit to unit, along with a parking area a modern, indoor version of the traditional marketplace. Modern "car-friendly" strip malls developed from the 1920s, and shopping malls corresponded with the rise of suburban living in many parts of the Western World, especially the United States, after World War II. From early on, the design tended to be inward-facing, with malls following theories of how customers could best be enticed in a controlled environment. Similar, the concept of a mall having one or more "anchor" or "big box" stores was
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pioneered early, with individual stores or smallerscale chain stores intended to benefit from the shoppers attracted by the big stores.

Hyper marts/Supermarkets
Hypermarket is a superstore combining a supermarket and a department store. The result is an expansive retail facility carrying a wide range of products under one roof, including full groceries lines and general merchandise. In theory, hypermarkets allow customers to satisfy all their routine shopping needs in one trip.

Department Stores
A Department store is a retail establishment which satisfies a wide range of the consumer's personal and residential durable goods product needs; and at the same time offering the consumer a choice of multiple merchandise lines, at variable price points, in all product categories. Department stores usually
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sell products including apparel, furniture, home appliances, electronics, and additionally select other lines of products such as paint, hardware, toiletries, cosmetics, photographic equipment, jeweler, toys, and sporting goods. Certain department stores are further classified as discount stores. Discount department stores commonly have central customer checkout areas, generally in the front area of the store. Department stores are usually part of a retail chain of many stores situated around a country or several countries.

Discount Stores
A Discount store is a type of department store, which sells products at prices lower than those asked by traditional retail outlets. Most discount department stores offer a wide assortment of goods; others specialize in such merchandise as jewelry, electronic equipment, or electrical appliances. Discount stores are not variety stores, which sell goods at a single pricepoint or multiples thereof (1, $2, etc.). Discount stores differ from variety stores in that they sell many name10

brand products, and because of the wide price range of the items offered. Discount stores are more popular in the United States than other countries. Following World War II, a number of retail establishments in the U.S. began to pursue a high-volume, low-profit-margin strategy designed to attract price-conscious consumers. Currently Wal-Mart, the largest retailer in the world, operates more than 1,300 discount stores in the U.S. Target and Kmart are Wal-Mart's top competitors. WalMart as of 2004, owns 90% of the Asda chain of supermarkets in the UK. As of 2008, the main rival to Asda is Tesco.

Specialty Stores
Specialty stores (British: Specialty shops) are small stores which specialize in a specific range of merchandise and related items. Most stores have an extensive depth of stock in the item that they specialize in and provide high levels of service and expertise. The pricing policy is generally in the medium to high range, depending on factors like
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the type and exclusivity of merchandise and ownership, that is, whether they are owner operated or a chain operation which has the advantage of bulk purchasing and centralized warehousing system. They differ from department stores and supermarkets which carry a wide range of merchandise.

Convenience Stores
A convenience store or corner shop is a small store or shop in a built up area that stocks a range of everyday items such as groceries, toiletries, alcoholic and soft drinks, and may also offer money order and wire transfer services. They differ from general stores and village shops in that they are not in a rural location, and are used as a convenient supplement to the main shopping rather than being the main store. A convenience store may form part of gas/petrol stations. They may be located alongside busy roads, in urban areas, or near railway stations or other transportation hubs. In some countries convenience
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stores have long shopping hours, some being open 24 hours.

CATEGORIES OF INDIAN RETAILERS Corporate Houses Tatas: Tata Trent RPG group: Food World, Health and Glow, etc ITC: Wills Life Style Rahejas (Shoppers Stop), Hiranandani (Haiko), DLF(DT cinemas) etc. Dedicated brand outlets Nike, Reebok, Zodiac etc Multi-brand outlets Vijay Sales, Viveks etc Manufacturers/ Exporters Pantaloons, Bata, Weekender
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DRIVERS OF CHANGE Housing sector expected to sustain strong growth in light of attractive interest rates and tax incentives Commercial sector to grow in tandem with sectors like IT, ITES, Banking, Telecom, etc. Increasing numbers of shopping malls Lease v/s Buy gaining ground for commercial developments Heightened development in real estate in Tier II & III locations New Residential Models-Townships FDI would improve construction quality and improve efficiencies

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 Potential Entry of Real Estate Mutual funds and Real Estate Investment Trusts

FDI IN INDIAN RETAILING

Current Indian FDI Regime FDI not permitted in retail trade sector, except in: Private labels Hi-Tech items / items requiring specialized after sales service Medical and diagnostic items Items sourced from the Indian small sector (manufactured with technology provided by the foreign collaborator) For 2 year test marketing (simultaneous commencement of investment in manufacturing facility required)
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Foreign direct investment (FDI) or foreign investment refers to the net inflows of investment to acquire a lasting management interest (10 percent or more of voting stock) in an enterprise operating in an economy other than that of the investor. [1] It is the sum of equity capital, reinvestment of earnings, other long-term capital, and short-term capital as shown in the balance of payments. It usually involves participation in management, joint-venture, transfer of technology and expertise. There are two types of FDI: inward foreign direct investment and outward foreign direct investment, resulting in a net FDI inflow (positive or negative) and "stock of foreign direct investment", which is the cumulative number for a given period. Direct investment excludes investment through purchase of shares.

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WHY FDI? Improve competition Develop the market Greater level of exports due to increased sourcing by major players Investment in technology Better lifestyle Manpower and skill development Investment in whole supply chain Tourism Development

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Timeline of Retailing in India

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Market Profile of Various Formats Department Stores: Shopper Stop, Lifestyle, Pantaloons Hypermarkets: Big Bazaar, Spencer Supermarkets and Conv. Stores: Subhiksha, Trinethra Department Stores Well established, limited competition Entrenched in Indian Mindset Score on shopping experience Stress on branding Price not critical as they cater to upper income class
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Hypermarkets Relatively new concept, but already as big as department stores Growing fast, but competition to intensify Price Discount and Wide Varieties act as key attractions Key to success will be efficient Supply Chains and Store locations Supermarkets and Conv. Stores Main challenge to mom and pop stores How to compensate for facilities that mom and pop stores provide namely Home Delivery and Monthly Credit ?
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 Immense Competitions, building scale to achieve cost efficiencies will be critical

Which categories will grow ? Food and Groceries Sector that the largest amount of consumer spends is concentrated. Maximum opportunity for investments Consumer durables With increasing purchasing power,

consumers tend to spend the most on this category. There is nothing to prevent a company from putting up shops outside the city limits,
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because

consumer

durables

are

premeditated purchase. Availability of finance options has increased spending in this sector. Home products With increasing private ownership of homes by relatively young couples, across most major cities in India, national retail chains offering home furniture (and accessories) have great potential.

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Government Policies 51% FDI allowed in single-brand formats 100% FDI in cash-and-carry format NO FDI in multi-brand stores ( like WalMart) Trends indicate that the FDI would open up in retail sector, however political consensus has to be reached before that happens

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Benefits of FDI in retail Inflow of investment and funds. Improvement in the quality of employment. Generating more employment. Increased local sourcing. Provide better value to end consumers. Investments and improvement in the supply chains and warehousing. Franchising opportunities for local entrepreneurs. Growth of infrastructure. Increased efficiency. Cost reduction. Implementation of IT in retail.
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 Stimulate infant industries and other supporting industries.

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Drawbacks of FDI in retail Would give rise to cut-throat competition rather than promoting incremental business. Promoting cartels and creating monopoly. Increase in the real estate prices. Marginalize domestic entrepreneurs. The financial strength of foreign players would displace the unorganized players. Absence of proper regulatory guidelines would induce unfair trade practices like Predatory

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SAMPLE SIZE Category Mens wear Brands Interviewed Zodiac, Daks, Numero Uno, Lacoste, Koutons, Oxemberg, Mens Boulevard, Tuille, John Players, Blue Tonic Womens wear Amarsons, Peppertree, Hakoba, Jashn Unisex apparels Blackberry, Colorplus, Pepe Satya After Paul, shock,

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Kideswear

Me

&

Moms,

Scrams,

Barbie, 4214 Time wear Ethos, Watches N More, Citizen, Swatch, Titan Jewellery Ddamas, Gili, Orra, TBZ, Tanishq, Sia Art Jewellery Luggage Gifts Shoes VIP, Samsonite Archies, Galleria, Hallmark Regal, Charles Minis, Catwalk,

& Keith, In-touch,

Lords, Clarks, Kittens, Metro, Bata

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Home

Spaces, Hasthkala, Hobby

furnishings ideas, Pampered Home, Dreams Food & Bombay Blues, Thai Lotus,

Beverages Ruby Tuesday, Bateel, Sweet World, Subway, Rajdhani

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OBSERVATIONS Category Price range (Rs.) Avg. Avg Location in Malls

Margi Shop n (%) Size

Mens Wear

5005,000

10-15 8001,000 20-30 1,5002,000 25 1,500

Ground Floor Women s Zone Ground

Womens 300Wear Unisex apparels 30,000 8508,000

Kidswear 200-

25-30 1,000

First
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1,000

Floor/ Child Zone

Time wear

30030,000

30

500-700 Ground Floor

Jewellery 60030,000

37

1,5002,000

Ground Floor Women s Zone /

Luggage

5002,000

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1,0001,200

Ground Floor Ground

32

Gifts

50-

27

5,00-

1,000 Shoes 2004,000 Home 500 25 28

7,00 1,2001,500 1,5002,000

Floor Ground Floor Ground Floor /Women s Zone

furnishing onward s s

Food

& 50

15

1,500

Food Zone

Beverage onward s s

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CONCLUSION
It is submitted that the antagonists of FDI in retail sector oppose the same on various grounds, like, that the entry of large global retailers such as Wal-Mart would kill local shops and millions of jobs, since the unorganized retail sector employs an enormous percentage of Indian population after the agriculture sector; secondly that the global retailers would conspire and exercise monopolistic power to raise prices and monopolistic (big buying) power to reduce the prices received by the suppliers; thirdly, it would lead to asymmetrical growth in cities, causing discontent and social tension elsewhere. Hence, both the consumers and the suppliers would lose, while the profit margins of such retail chains would go up. However, it can be said that the advantages of allowing unrestrained FDI in the retail sector evidently outweigh the disadvantages attached to it and the same can be deduced from the examples of successful experiments in countries like Thailand and China; where too the issue of allowing FDI in the retail sector was first met
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with incessant protests, but later turned out to be one of the most promising political and economical decisions of their governments and led not only to the commendable rise in the level of employment but also led to the enormous development of their countrys GDP. It is to be noted that FDI in retail would undoubtedly enable Indian Inc to integrate its economy with that of the global economy. FDI will help to overcome both the lack of experience in organized retailing as well as lack of trained manpower. FDI in retail would reduce cost of intermediation and entail setting up of integrated supply chains that would minimize wastage, give producers a better price and benefit both producers and consumers. From the stand point of consumers, organized retailing would help reduce the problem of adulteration, short weighing and substandard goods. Moreover, it is submitted that in the fierce battle between the advocators and antagonist of unrestrained FDI flows in the Indian retail sector, the interests of the consumers have been blatantly and utterly disregarded. Therefore, one of the arguments which inevitably needs to be considered and addressed while deliberating upon
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the captioned issue is the interests of consumers at large in relation to the interests of retailers. It is also pertinent to note here that it can be safely contended that with the possible advent of unrestrained FDI flows in retail market, the interests of the retailers constituting the unorganized retail sector will not be gravely undermined, since nobody can force a consumer to visit a mega shopping complex or a small retailer/ sabji mandi. Consumers will shop in accordance with their utmost convenience, where ever they get the lowest price, max variety, and a good consumer experience. Moreover, it is to be noted that the small retailers will still remain in good business owing to the fact of their convenient location near the residential societies and to the fact of the distant location of the mega stores and malls. From this point of view, it can inter alia be concluded that the interest of the consumers should take precedence over the interest of the retailer and consequently healthy flow of FDI in retail should be permitted. Further, it would be worthwhile to list down certain advantages from the point of view of consumers which
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will inevitably flow from the establishment and development of larger stores and supermarkets: FDI will not just provide access to larger financial resources for investment in the retail sector but simultaneously will rationally allow larger supermarkets, which tend to become regional and national chains (i) to negotiate prices more aggressively with manufacturers of consumer goods and thus pass on the benefit to consumers; and (ii) to lay down better and tighter quality standards and ensure that manufacturers adhere to them. It is also to be noted that consumer goods manufacturers generally prefer supermarkets since they not just offer a wide range of their (manufacturers) products and services, so the consumer can enjoy single-point shopping, but simultaneously they by their attractive presentation and tempting retailing strategies also account for an increasing share of consumer product sales. Also, the fact that a well-known chain of supermarkets procures its goods from a known manufacturer becomes a stamp of quality. Moreover, with the availability of free flow of finance in conjunction with advent of healthy inflow of FDI, the supermarkets will be in a better position than small
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retailers to make shopping a pleasant experience by making investments in much needed infrastructure facilities like parking lots, coffee shops, ATM machines, etc. Apart from this, by allowing FDI in retail trade, India will significantly flourish in terms of quality standards and consumer expectations, since the inflow of FDI in retail sector is bound to pull up the quality standards and cost-competitiveness of Indian producers in all the segments. It is therefore obvious that we should not only permit but encourage FDI in retail trade. Lastly, it is to be noted that the Indian Council of Research in International Economic Relations (ICRIER), a premier economic think tank of the country, which was appointed to look into the impact of BIG capital in the retail sector, has projected the worth of Indian retail sector to reach $496 billion by 2011-12 and ICRIER has also come to conclusion that investment of big money (large corporates and FDI) in the retail sector would in the long run not harm interests of small, traditional, retailers. In light of the above, it can be safely concluded that allowing healthy FDI in the retail sector would not only
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lead to a substantial surge in the countrys GDP and overall economic development, but would inter alia also help in integrating the Indian retail market with that of the global retail market in addition to providing not just employment but a better paying employment, which the unorganized sector (kirana and other small time retailing shops) have undoubtedly failed to provide to the masses employed in them. Thus, as a matter of fact FDI in the buzzing Indian retail sector should not just be freely allowed but per contra should be significantly encouraged.

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Bibliography
http://news.moneycontrol.com/india/newsarticle/stocksnews.p hp?autono=225909 http://www.ciionline.org/Common/313/BACKGROUNDNOT E2004.pdf http://www.garnerasia.com/gbiad6.html http://www.imagesfashion.com/Cover_story1_jan05.html http://www.imagesfashion.com/index.html BooksReferred: Retail Management - A Strategic Approach by Barry Berman and Joel R Evans

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