TheIntroduction

Retail Industry
Retailing is the final step in the distribution of
merchandise - the last link in the Supply Chain -
connecting the bulk producers of commodities to
the final consumers. Retailing covers diverse
products such as foot apparels, consumer goods,
financial services and leisure.
 In developed country three-fourth of the retail trade is
done by organized sector
 Huge retail chains like Wal-Mart, Carr four Group,
Sears, K-Mart, McDonalds, etc. have now replaced the
individual small stores
Top Ten Retailers Worldwide
Rank Retailer # of stores sale 2000US$(miln)
1 Wall-Mart Stores (USA) 4178 $180,787
2 Carrefour Group (France) 8130 $61,047
3 The Kroger Co. (USA) 3445 $49,000
4 The Home Depot, Inc. (USA) 1134 $45,738
5 Royal Ahold (Netherlands) 7150 $45,729
6 Metro AG (Germany) 2169 $44,189
7 Kmart Corporation (USA) 2105 $37,028
8 Sears, Roebuck and Co. (USA) 2231 $36,823
9 Albertson's, Inc. (USA) 2512 $36,726
10 Target Corporation (USA) 1307 $36,362
Retailing in India
The retail market size around $180 billion
Retailing provides jobs to almost 15 percent of
employable Indian adults
The Indian retail industry is unorganized
The Indian retail industry is fragmented
The Indian retail industry has rural bias
Young population with high disposable income
 Changing age demographics in India

 Exposure to international lifestyles

 Quality retail space under development in leading urban centres
 Rising retail finance and consumer credit has increased
affordability
 Changing consumer requirements and lifestyles
 Modern retailing formats provide different value proposition
The Evolution of Indian retail
industry

 For Indian retailing, things started to change slowly in

the 1980s
 Bombay Dyeing, Raymond's, S Kumar's and Grasim
and later Titan was the first to see the emergence of
retail chains
 In 1990 retail market got diversified
 FoodWorld, Subhiksha and Nilgiris in food and FMCG;
Planet M and Music World in music; Crossword and
Fountainhead in books
 On the growing track, by the end of year 2000 retail
industries was estimated 13,000 cr. And till year 2005
was expected around 45,000 cr.
Retailing

Formats in India
Malls
Branded stores
Department stores
Specialty stores
Growth of Retail Industry in
India
Key factors
 Experimentation with formats
 Store design
 Emergence of discount stores
 Unorganized retailing is getting organized
 The indian consumer: Their earning capacity and
shopping habits are changing
Shoppers’ Stop
History
 Established in October 27, 1991 by the K. Raheja Corp.
group of company
 Diversified from Hospitality
and Real estate to retail
industry
 progressed from being a single
brand shop to becoming
a Fashion & Lifestyle store
for the family
 With an immense amount of expertise and credibility,
Shoppers’ Stop has become the highest benchmark for
the Indian retail industry
Company Profile
 Its merchandise ranges across apparel, accessories, perfumes,
cosmetics, home & kitchen products with over 260,000 stock
keeping units (SKU`s),
 The company derives revenue from private labels which account
for 20% and from other brands that contribute 80%.
 Shoppers Stop’s first exclusive home dressings outlet was
launched in Bangalore
 The Company has entered into an Option Agreement with Inorbit
Malls and Hypercity Retail (India) Pvt , under the terms of which
the Company has an option to acquire up to 51% of the equity
share capital of Hypercity Retail (India) Pvt Ltd
 In H1FY06, SSL opened four new stores adding 0.2 million square
feet to its retail space. It has
 signed up 19 new department stores to be opened between FY06-
08E
 It plans to invest Rs1200mn in the next two years.
Financial Overview

Year-2005/03 (Value in cr.)

Capital Employed 182.15
Net Working Capital 61.32
Current Assets 145.85
Current Liabilities 80.53
Total Assets/Liabilities 262.3
Net Sales 510.34
Book Value (Unit Curr) 34.55
 Net Profit
Net Profits

30
20
10
Net Profits (Rs.
0
Crores)
Series1
-10
-20
-30
200103 200203 200303 200403 200503 200603
Year

Share Prices
Share Prices

700
600
Averag e P rice

500
400
Series1
300
200
100
0
20050
20050
20050
20051
20051
20051
20060
20060
20060
20060
20060
20060
20060

Time
Pantaloon
History / Company profile
 Founded in 1987
 Pantaloon Retail (India) (PRIL), previously known as
Pantaloon Fashions (India) (PFIL)
 Manufactures and Markets quality ready-made garments
for men
 300 Pantaloon dealers spanning the metro and class-I cities
in the country
 The company has acquired the trademark and exclusive
licensing rights for apparel brand Norules(US) in India
 Over 100 stores across 30 cities in India and employs over
14,000 people
 For the financial year ended June 2005, it had a turnover of Rs.
1,073 crore (US$ 242 million) and it is expected to touch Rs
2000 crore (US$ 444 million) by the end of June 2006.
Different brand(Stores) of
Pantaloon
Big Bazaar
Central Mall
Food Bazaar
Fashion Station
aLL
MeLa
E-Zone
Star Sitara
Financial overview

Year-2005/03 (Value in cr.)

Capital Employed 504.74
Net Working Capital 243.01
Current Assets 405.16
Current Liabilities 162.15
Total Assets/Liabilities 666.61
Net Sales 1083.73
Book Value (Unit Curr) 99.33
 Net Profit
NET PROFIT

50

40

NE T PROFIT
30
Series1
20

10

0
2001 2002 2003 2004 2005
YEAR

Capitaline
Trent
Company Profile
Established in 1992 by TATA Group
2006 Sales: 3,765,450,000
Currency: Indian Rupees
Fiscal Year Ends: March
Share Type: Ordinary
Country: India
Major Industry: Retailers
Sub Industry: Miscellaneous Retailers
Employees: 550
Market Capitalization: 12,824,159,807
Total Shares Outstanding: 14,427,811
Financial status

Year-2005/03 (Value in cr.)

Capital Employed 217.39
Net Working Capital 41.36
Current Assets 106.82
Current Liabilities 65.46
Total Assets/Liabilities 282.44
Net Sales 234.32
Book Value (Unit Curr) 165.5
Share Prices

Net Profit
NET PROFITS

25

20

NET PROFITS 15
(Rs. crores)
10 Series1

0
200203 200303 200403 200503 200603
YEAR
Provogue
History / Company profile
 Incorporated in 1997 as Acme Clothing Private Limited
 Work fashion house manufacturing and distributing apparel for men
under the brand Provogue for men
 An aggressive advertising and marketing campaign has enabled
Provogue command a superior brand
 Provogue's proposal to set up 40 small and 21 mega stores (of 5,000
square feet each) over the next two years
 64 exclusive 'Provogue Studios' spread across 31 cities in the country
Financial status

Year-2005/03 (Value in cr.)

Capital Employed 77.2
Net Working Capital 41.36
Current Assets 77.72
Current Liabilities 17
Total Assets/Liabilities 93.85
Net Sales 108.12
Book Value (Unit Curr) 36
 Share Prices
SHARE PRICES

A V E R A G E P R IC E
400
350
300
250
200 Series1
150
100
50
0

TIME

Net Profit
NET PROFITS

14
12
10
NET PROFITS 8
(Rs. crores) 6
Series1
4
2
0
2001 2002 2003 2004 2005 2006
YEAR
Piramyd
History / Company profile
 Incorporated on March 18 2005 by taking over the business
of Piramyd Retail and Merchandising and Crossroads
Shoppertainment
 Company is in two segments
 Lifestyle retailing and Food
 Home and Personal Care (FHPC) retailing
 They currently operate 12 stores spread across 4 cities
occupying over 210,000 sq. ft of retail space
 The offerings of the lifestyle retailing arm, Piramyd
Megastore, include apparel and accessories like jewellery,
watches, footwear and home textiles
 Target: at the informed and fashion conscious customer
Financial status

Year-2006/03 (Value in cr.)

Capital Employed 167.66
Net Working Capital 66.64
Current Assets 105.82
Current Liabilities 39.18
Total Assets/Liabilities 206.84
Net Sales 99.2
Book Value (Unit Curr) 59.59