Executive Summary Background of the study
Organization is a set of people working together the accomplishment of a common objective. The roles and responsibilities are stated clearly without without any ambiguity. The positions positions occupied occupied by different different individuals individuals are presented in the form of organization chart. Organizational structure is essential for continuity of the mission and co-ordinates and controls the busine business ss activi activitie ties. s. Origin Originati ation on helps helps manage managemen mentt to perfor perform m its activities effectively, optimum use of technological improvement growth and diversification, creatively, effective use of physical resources and HR
Need for the study
This Th is stud study y is take taken n up to fulf fulfil illl the the requ requir irem emen entt of BBABBA-Re Reta tail il Operat Operation ionss UG course course of SIKKIM SIKKIM MANIPA MANIPAL L UNIVER UNIVERSIT SITY. Y. The training is undertaken during October 2009 to November 2009 and the main purpose of the training is to know the application of the theoretical aspects in our course in the corporate environment and gain first hand experience and expose ourselves to corporate policies, ethics, culture, practices, procedures, facts about the work culture and policies of the company.
Objectives of the study
•
To understand the organization structure or hierarchy of the
company. -1-
•
To un unde ders rsta tand nd the the work workin ing g of the the vari variou ouss depa depart rtme ment ntss.
•
To ena enabl blee us us to to ga gain an ins insig ight ht into into the the corpo orpora rate te world orld..
•
To unde unders rsta tand nd the the var vario ious us res respo pons nsib ibil ilit itie iess and and duti dutiees carr carriied out out
by each department. •
The study is aimed at understanding how an organization
practically works in a real situation.
Scope of the study
•
This report is based on the study conducted at BRAND
FACTORY, Marathalli, Bangalore. •
It
aims
at
understanding
t he
company’s
establishment,
organization structure, departments, techniques, marketing strategies and the advantages it is having over the competitors. •
An att attempt is ma made to an analyze the the com company’s per performance in
comparison to the theoretical aspects. •
It aim aims to to und understand the the ski skills of th the com company in th the ar areas lik like
technological advancements, competition and in management.
Limitations of the study
•
Time is the major constraint.
•
As per per the the compa ompan ny rul rulees man many y inf infor orm matio ation n wa was not not dis disclos closeed.
•
As the the ma manage nagers rs are are bus busy y in in the their ir sche schedu dule less it it is is not not po poss ssib ible le for for
us to spend more time in interaction and discussion with them.
-2-
Methodology adopted for the study
•
Observing the working of various departments like finance,
safety, human resources, production, purchasing etc. •
Discussion with the company executives, managers and
employees.
Sources of Data
Primary Data
The data collected for the first time through observation and interview method. The data is also collected by observing the working of various departments. It is also obtained by the help of staff members.
Secondary Data
The data is collected by secondary sources also. The data is collected through company manual, product brochure, company website, annual report and other sources.
-3-
INDUSTR IND USTRY Y PROFILE PRO FILE India retail industry is the largest industry in India, with an employment of around 8% and contributing to over 10% of the country's GDP. Retail industry in India is expected to rise 25% yearly being driven by strong income growth, changing lifestyles, and favorable demographic patterns.
It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200 billion. India retail industry is one of the fastest growing industries with revenue expected in 2007 to amount US$ 320 billion and is increasing at a rate of 5% yearly. A further increase of 7-8% is expected in the industry of retail in India by growth in consumerism in urban areas, rising incomes, and a steep rise in rural consumption. It has further further been predicted predicted that the retailing retailing industry in India will amount to US$ 21.5 billion by 2010 from the current size of US$ 7.5 billion.
Shopping in India has witnessed a revolution with the change in the cons consum umer er buyi buying ng beha behavi vior or and and the the whol wholee form format at of shop shoppi ping ng also also altering. Industry of retail in India which has become modern can be seen from the fact that there are multi- stored malls, huge shopping
-4-
center centers, s, and sprawl sprawling ing comple complexes xes which which offer offer food, food, shoppi shopping, ng, and entertainment all under the same roof.
India retail industry is expanding itself most aggressively; as a result a great demand for real estate is being created. Indian retailers preferred means of expansion is to expand to other regions and to increase the number of their outlets in a city. It is expected that by 2010, India may have 600 new shopping centers.
In the Indian retailing industry, food is the most dominating sector and is growing at a rate of 9% annually. The branded food industry is trying to enter the India retail industry and convert Indian consumers to branded food. Since at present 60% of the Indian grocery basket consists of non branded items.
India retail industry is progressing well and for this to continue retailers as well as the Indian government will have to make a combined effort.
Indian Organized Retail Market Indian organized retail market is growing at a fast pace due to the boom in the India retail industry. In 2005, the retail industry in India amounted to Rs 10,000 billion accounting for about 10% to the country's GDP. The organized retail market in India out of this total market accounted for Rs 350 billion which is about 3.5% of the total revenues.
Retail market in the Indian organized sector is expected to cross Rs 1000 billion by 2010. Traditionally the retail industry in India was largely unorga uno rganiz nized, ed, compri comprisin sing g of drug drug stores stores,, medium medium,, and small small grocer grocery y
-5-
stores. Most of the organized retailing in India have started recently and is concentrating mainly in metropolitan cities.
The growth in the Indian organized retail market is mainly due to the chan change ge in the the cons consum umer er’s ’s beha behavi vior. or. Th This is chan change ge has has come come in the the consumer due to increased income, changing lifestyles, and patterns of demography which are favorable. Now the consumer wants to shop at a place where he can get food, entertainment, and shopping all less than one roof. This has given Indian organized retail market a major boost.
Retail market in the organized sector in India is growing can be seen from the fact that 1500 supermarkets, 325 departmental stores, and 300 new malls malls are being being built. built. Many Indian Indian compan companies ies are entering entering the Indian retail market which is giving Indian organized retail market a boost. One such company is the Reliance Industries Limited. It plans to inve invest st US$ US$ 6 bill billio ion n in the the Indi Indian an reta retail il mark market et by open openin ing g 1000 1000 hypermarkets and 1500 supermarkets.
-6-
Pantaloons is another Indian company which plans to increase its retail space to 30 million square feet with an investment of US$ 1 billion. Bharti Telecoms an Indian company is in talks with Tesco a global giant for a £ 750 million joint venture. A number of global retail giants such as Walmart, Carrefour, and Metro AG are also planning to set up shop in India. Indian organized retail market will definitely grow as a result of all this investments.
Indi Indian an organ organiz ized ed reta retail il marke markett is incr increa easi sing ng and and for this this grow growth th to cont contin inue ue the the India Indian n reta retail iler erss as well well as gove govern rnme ment nt must must make make a combined effort.
Scope of the Indian Retail Market Highest growth in the next 5 years. The India retail industry contributes 10% of the countries GDP and its current growth rate is 8.5%. In the Indian retail market the scope for growth can be seen from the fact that it is expected to rise to US$ 608.9 billion in 2009 from US$ 394 billion in 2005.
The organized retailing sector in India is only 3% and is expected to rise to 25- 30% by the year 2010. There are under construction at present around 325 departmental stores, 300 new malls, and 1500 supermarkets. This proves that there is a tremendous scope for growth in the Indian retail market.
-7-
The growth of scope in the Indian retail market is mainly due to the chan change ge in the the cons consum umer er’s ’s beha behavi vior or.. For the the new new gene genera rati tion on have have prefe preferen rence ce toward towardss luxury luxury commod commoditi ities es which which have have been been due to the strong increase in income, changing lifestyle, and demographic patterns which are favorable.
The scope of the Indian retail market has been seen by many retail giants and that’s the reason reason that many new players are entering the India retail industry. The major Indian retailers are: •
Pantaloons Retail India Ltd
•
Shoppers Stop
•
Bata India Ltd
•
Music World En Entertainment Lt Ltd
Judging the scope for growth in the India retail industry many global retail giants are also entering the Indian retail market. They are: •
Tesco
•
Metro AG
•
Wall- Mart
The scope for growth in the Indian retail market is seen mainly in the following cities: -8-
Mumbai, Delhi, Pune, Ahmedabad, Bangalore, Hyderabad, Kolkata, Chennai
The scope of the Indian retail market is very vast. And for it to reach its full potential the government and the Indian retailers will have to make a determined effort.
Opportunities in Indian Organized Retail sector The opportunities in Indian organized retail sector are many for this sector is witnessing a boom.
The retail industry in India amounted to US$ 200 billion in 2006, and out of this amount the Indian organized retail sector amounted to US$ 6.4 billion. The opportunities in India organized retail sector can be judged from the fact that by 2010 it is expected to rise to US$ 23 billion.
The various various opp opport ortuni unitie tiess in the organized organized retail retail sector sector in India India are mainly there for the Indian consumers behavior pattern has changed. Now the Indian consumer gets more hefty pay- packages, is younger, a large large number number of women women are working, working, wester western n influe influence nces, s, and more disposable income have opened a lot of opportunities in Indian organized reta retail il sec sector. tor. The Indi Indiaan con onsu sume merr want wantss to sho hop, p, eat eat and and get get entertainment in one place and is having also given Indian organized retail sector an opportunity to grow.
The Indian government in 2005 allowed foreign direct investment (FDI) in single brand retail to 51%. This has opened up a lot of opportunities in India organized retail sector. In fact 325 departmental stores, 300 new -9-
mall malls, s, and and 15 1500 00 supe superm rmar arke kets ts are are bein being g bu buil iltt whic which h show showss the the tremendous opportunities in the organized retail sector in India.
Many Indian companies seeing the various opportunities in organized retail sector in India have entered it. Pantaloons have decided to increase its retail space to 30 million square feet with an investment of US$ 1 billion. Reliance Industries Limited is targeting for annual sales of US$ 25 billion by 2011. It is planning to invest US$ 6 billion in order to open 1,500 supermarkets and 1000 hypermarkets. Bharti Telecoms is planning a joint venture with Telco a global retail giant worth £ 750 million.
Growth Factors in Indian Organized Retail sector The growth factors in Indian organized sector are various but it is mainly due to the fact that India's economy is booming.
Also, the rise in the working population which is young, pay- packets which are hefty, more nuclear families in urban areas, rise in the number of women working, more disposable income and customer aspiration, western influences and growth in expenditure for luxury items. All these are the factors for the growth in Indian organized retail sector.
- 10 -
In fact, India retail industry is the fastest growing industry in India and it accounts for 10% of the country's GDP. In 2006, the retail industry in India amounted to US$ 200 billion and out of this; the organized retail sect sector or in Indi Indiaa amou amount nted ed to US$ US$ 6.4 6.4 bill billio ion. n. By 2010 2010,, the the Indi Indian an organized retail sector is expected to rise to US$ 23 billion. In 2003, the Indian organized retailing sector accounted for more than 4.5 million sq. ft of space absorption by malls.
Many Indian companies have entered the retail industry in India and this is also a factor in the growth of Indian organized retail sector. Reliance Industries Limited is planning to invest US$ 6 billion in the organized reta retail il sec sector tor in Indi Indiaa by op opeening ning 15 1500 00 sup uper erma mark rkeets and 10 1000 00 hypermarkets. Bharti Telecoms is planning a joint venture worth £ 750 million with Tesco a global retail giant. Pantaloons is planning to invest US$ 1 billion in order to increase its retail space to 30 million square feet feet.. Such Such huge huge inve invest stme ment ntss are are also also a fact factor or in the the growt growth h of the the organized retail sector in India.
Global retail giants are also entering the retail industry in India and this is also one of the factors in the growth of the organized retail sector in India. India. The global global retail retail giants giants who are enteri entering ng the organi organized zed retail retail sector in India are: Wall- Mart Tesco Carrefour SA Metro AG
- 11 -
The factors for growth in Indian organized retail sector are many and that’s the reason behind its massive growth. But for this to continue both the Indian retailers and the government will have to work together.
Indian Organized Retail Sector's Impact on Lifestyles The Indian organized retail sector's impact changed the lifestyle of the Indian Indian consum consumers ers drasti drastical cally. ly. The eviden evidentt increa increase se in consum consumeri erist st activit activity y is coloss colossal al which which has already already chippe chipped d out a money money making making recess for the Indian organized retail sector.
With the onset of a globalized economy in India, the Indian consumer's psyche has been changed. People have become aware of the value of mone money. y. Nowa Nowada days ys the the India Indian n cons consum umer erss are are well well verse versed d with with the the concepts about quality of products & services. These demands are the visible impacts of the Indian organized retail sector.
Since the liberalization policy of 1990, the Indian economy, and its cons consum umer erss are are gett gettin ing g whif whifff of the the late latest st nati nation onal al & inte intern rnat atio iona nall products, the with help of print & electronic media. The social changes with with the the rapi rapid d econ econom omic ic grow growth th due due to trai traine ned d pers person onne nel’ l’s, s, fast fast modernizati modernization; on; enhanced enhanced availablen availableness ess of retail retail space space is the positive positive effects of liberalization.
The growth factors of organized retail in India are:-
•
Increase in per capita income which in turn increases the
household consumption
- 12 -
•
Demographical changes and improvements in the standard of
living Change in patterns of consumption and availability of low-cost consumer credit •
Impr Improv ovem emen ents ts in infr infras astr truc uctu ture re and and enha enhanc nced ed avai availa labi bili lity ty of reta retail il
space •
Entry to to va various so sources of fi financing
The non-food sector, segments comprising apparel, accessories, fashion, and lifestyle felt the significant change with the emergence of new stores formats like convenience stores, mini marts, mini supermarkets, large superm supermark arkets ets,, and hyp hyper er marts. marts. Even Even food food retail retailing ing has became became an important retail business in the national arena, with large format retail stores, establishing stores all over India. With the entry of packaged foods like MTR, ITC Ashram, fast foods chains like McDonald's, KFC, beverage parlors like Nescafe, Tata Tea, Café Coffee and Barista, the Indi Indian an food food habi habits ts has has been been alte altere red. d. Th This is store storess have have earn earned ed the the reputation of being 'super saver locations'.
India will be an unique business arena in whole of the global economy, for the social and economic parameters would overrule the big bang of the vivid competition. Previously mastered by the unorganized retail sector, India opened up late as an economy in 1990 until then the idea of retail formats were spread by the government.
- 13 -
Emerging trends in Indian organized retail sector The emerging trends in the Indian organized retail sector would help the economic growth in India.
There is a fantastic rise in the Indian organized retail sector in a very short period of time between 2001 and 2006. Eventually, out of the shad shadow owss of the the un unor orga gani nize zed d reta retail il sect sector or,, Indi Indiaa has has a chan chance ce of tremendous economic growth, both in India and abroad.
The emerging trends in the Indian organized retail sector are also adding up to the the deve develo lopm pmen entt of the the Indi Indian an organ organiz ized ed reta retail il sect sector or.. Th Thee relaxation by the government on regulatory controls on foreign direct inve invest stme ment ntss has has adde added d to the the proc proces esss of the the grow growth th of the the India Indian n organized retail sector.
The infrastructure infrastructure of the retail sector will evolve radically radically in the recent future. The emergence of shopping malls is increasing at a steady pace in the metros and there are further plans of expansion which would lead to 150 new ones coming up in India by 2008. As the count of super markets is going up much faster than rate of growth in retail sector, it is taking the lions share in food trade.
The growth of the Indian organized retail sector is anticipated to be heavier than the growth of the gross domestic product. Alterations in people's lifestyle, growth in income levels, and encouraging conventions of demography are proving favorable for the new emerging trends in the Indian organized retail sector.
- 14 -
Thee succ Th succes esss of this this reta retail il sect sector or woul would d also also lie lie in the the degr degree ee of penetration into the lower income strata to tap the possible customers in the lowest levels of society. The demands of the buyers would also be enhanced by more access to credit facilities.
With the arrival of the Transnational Companies (TNC), the Indian retail sector sector will will und underg ergo o a transf transform ormati ation. on. At presen presentt the Foreig Foreign n Direct Direct Investments (FDI) is not encouraged in the Indian organized retail sector but but once once the the TNC' TNC'S S get get in they they inev inevit itab ably ly try try to oust oust thei theirr Indi Indian an counterparts. This would be challenging to the retail sector in India.
The trends to follow in the future:
•
The Ind Indian Org Orgaanized ret retail sec sector wil will gro grow up to to 10 10% of of to total
retailing by 2010. •
No one single format can be assumed as there is a huge
difference in cultures regionally. •
The most most encou ncoura ragi ging ng form format at no now w woul would d be be the the hy hype perr mar marts ts..
•
The hyp hyper mar mart for format wou would be fu further enc encouraged wit with the the
entry of the TNCs.
Growth of Retail Companies in India Growth of Retail Companies in India exhibits the boom in the retail industry in India over the years. The increase in the purchasing power of the Indian middle classes and the influx of the foreign investments have been encouraging in the Growth of Retail Companies in India.
- 15 -
Growth of Retail Companies in India is still not yet in a matured stage with great potentials within this sector still to be explored. Apart from the the reta retail il comp compan any y like like Nilg Nilgiri iri's 's of Bang Bangal alor ore, e, most most of the the reta retail il companies are sections of other industries that have stepped in the retail sector for a better business. The Growth of Retail Companies in India is most pronounced in the metro cities of India; however the smaller towns are also not lagging behind in this. The retail companies are not only targeting the four metros in India but also is considering the second grad graded ed up upco comi ming ng
citi cities es like like Ahma Ahmada daba bad, d,
Baro Baroda da,,
Chan Chandi diga garh rh,,
Coimbatore, Cochin, Ludhiana, Pune, Trivandrum, Simla, Gurgaon, and others. The South Indian zone have adopted the process of shopping in the supermarkets for their daily requirements and this has also been influencing other cities as well where many hypermarkets are coming up day to day.
- 16 -
RETAIL FORMATS IN INDIA: Hypermarket: It is the largest format in Indian retail so far is a one stop
shop for the modern Indian shopper. Merc Mercha hand ndis ise: e: food food groc grocer ery y to clot clothi hing ng to spot spotss good goodss to book bookss to stationery. Space occupied: 50000 Sq .ft. and above. SKUs: 20000-30000. Example: Pantaloon retail’s Big Bazaar, RPG’s Spencer’s (Giant).
Supermarket: A subdued version of a hypermarket.
Merchandise: Almost similar to that of a hypermarket but in relatively smaller proposition. Space occupied: 5000 Sq. ft. or more. SKUs: Around 10000. Example: Nilgiris, Apna Bazaar, Trinethra.
Convenience store: A subdued version of a supermarket.
Merchandise: Groceries are predominantly sold. Space occupied: Around 500 Sq. ft. to 3000 Sq. ft. Example: stores located at the corners of the streets, Reliance Retail’s fresh and select.
Department store: A retail establishment which specializes in selling a
wide range of products without a single prominent merchandise line and is usually a part of a retail chain. Merchandise: Apparel, household accessories, cosmetics, gifts etc. Space occupied: Around 10000 Sq. ft. – 30000 Sq. ft. Example: Landmark Group’s Lifestyle, Trent India Ltd.’s Westside. - 17 -
Discount store: Standard merchandise sold at lower prices with lower
margins and higher volumes. Merchandise: A variety of perishable/ non perishable goods. Example: Example: Viswapriya Viswapriya Group’s Group’s Subiksha, Subiksha, Piramal’s Piramal’s TruMart, TruMart, PRIL’s Brand factoty
Specialty Specialty store: store: It cons consis ists ts of a narr narrow ow prod produc uctt line line with with deep deep
assortment. Merchandise: Depends on the stores Example: Bata store deals only with footwear, RPG’s Music World, Crossword. MBO’s: Multi Brand outlets, also known as Category Killers. These
usually do well in busy market places and Metros. Merchandise: Offers several brads across a single product category.
Kirana stores: stores: The smallest retail formats which are the highest in
number (15 million approx.) in India. Merchandise: Mostly food and groceries. Space occupied: 50 sq ft and even smaller ones exist.
- 18 -
Malls: The largest form of organized retailing today. Located mainly in
metro cities, in proximity to urban outskirts. Merc Mercha hand ndis ise: e: Th They ey lend lend an idea ideall shop shoppi ping ng expe experi rien ence ce with with an amalgamation of product, service and entertainment, all under a common roof. Space occupied: Ranges from 60,000 sq ft to 7, 00,000 sq ft. Example: Pantaloon Retail’s Central, Mumbai’s I orbit.
Foreign Direct Investment Policy In Retail •
Fore Foreig ign n Dir Direect Inve Invest stme ment nt (FDI (FDI)) to to the the ext extent ent of of 100 100 per per cen centt in in
Cash and Carry Wholesale formats. Franchisee arrangements are also permitted in retail trade. •
Sin Single Bra Bran nd Pro Products: FD FDI up up to to 51 51 pe per ce cent is is pe permissible in in
the the reta retail il trad tradee of sing single le bran brand d produ product ctss subj subjec ectt to the the follo followi wing ng conditions. •
Prod Produc ucts ts to be sold old sho houl uld d be of a 'Sin 'Singl glee Brand rand'' on only ly..
•
Prod Produc ucts ts shou should ld be sold old und under er the same same bra brand inter nterna nattiona ionall lly. y.
•
'Single Brand' product retailing would cover only products,
which are branded during manufacturing.
Road Ahead; Plans of Large Retailers •
Reliance Retail: investing Rs. Rs. 30, 30,000 cro crore ($ ($6.67 bil billion) in
setting up multiple retail formats with expected sales of Rs. 90,000 crore plus ($20 billion) by 2009-10. •
Pantaloon Retail: Will occupy 10 mn sq.ft retail space and
achieve Rs.9,000 crore-plus ($2 bn) sales by 2008. •
RPG: Pla Planning IPO IPO, wil will hav have 450 450-plus Mu Music Wor World, 5050-plus
Spencer's Hyper covering 4 mn sq.ft by 2010.
- 19 -
•
LIFE IFESTYL STYLE E :In :Inve vessting ting Rs.4 Rs.400 00 cror croree-pl plus us ($90 ($90 mn) mn) in in ne next five five
years on Max Hypermarkets & value retail stores, home and lifestyle centres. •
Rahe Raheja ja's 's:: Ope Operate ratess Shop Shoppe pers rs'' Stop Stop,, Cro Cross sswo word rd,, Inor Inorbi bitt Mall Mall,, and and
'Home Stop' formats. Will operate 55 "Hypercity" hypermarkets with US$100 million sales across India by 2015. •
Pira Piramy myd d Ret Retaail: il: Aimi Aiming ng to occ occup upy y 1. 1.75 mill millio ion n sq. sq.ft reta retail il spac spaces es
through 150 stores in next five years. •
TATA ATA (T (Tren rent Ltd Ltd..): Trent rent to op open en 27 more more stor stores es acro across ss its its ret retai aill
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.
Key Players in Indian Retail
The low-intensity low-intensity entry of the diversified diversified Mahindra Group into retail retail is unique because it plans to focus on lifestyle products. The Mahindra group is the fourth large Indian business group to enter the business of retail after Reliance Industries Ltd, the Aditya Birla Group, and Bharti Ente En terp rpri rise sess Ltd. Ltd. Th Thee othe otherr thre threee grou groups ps are are focu focusi sing ng eith either er on perishables and groceries, or a range of products, or both.
RPG Retail-Formats: Music World, Books & Beyond, Spencer’s Hyper, Spencer’s Super, Daily & Fresh
Pant Pantal aloo oon n Reta Retail il-Fo -Form rmat ats: s: Big Big Baza Bazaar ar,, Food Food Baza Bazaar ar,, Pant Pantal aloo oons ns,, Central, Fashion Station, Brand Factory, Depot, aLL, E-Zone etc.
- 20 -
The Tata Group-Formats: Westside, Star India Bazaar, Steel junction, Landma Landmark, rk, and Titan Titan Indust Industrie riess with with World World of Titans Titans showroo showrooms, ms, Tanishq outlets, Chroma.
K Raheja Corp Group-Formats: Shoppers’ Stop, Crossword, Hyper City, in orbit
Lifest Lifestyle yle Intern Internati ationa onal-L l-Life ifesty style, le, Home Home Centre Centre,, Max, Max, Fun City City and International Franchise brand stores.
Pyramid Retail-Formats: Pyramid Megastore, TruMart
Nilgiri’s-Formats: Nilgiri's’ supermarket chain
Subhiks Subhikshaha-Form Formats ats:: Subhik Subhiksha sha superm supermark arket et pharma pharmacy cy and teleco telecom m discount chain.
Trinethra- Formats: Fabmall supermarket chain and Fabcity hypermarket chain
Vishal Retail Group-Formats: Vishal Mega Mart
BPCL-Formats: In & Out
Reliance Retail-Formats: Reliance Fresh
Reliance ADAG Retail-Format: Reliance World
German Metro Cash & Carry - 21 -
SWOT ANALYSIS A SWOT analysis of the Indian organized retail industry is presented below:
STRENGTH:
1. Retailing is a "Technology-intensive" industry. It is technology that will help the organized organized retailers retailers to score over the unorganized unorganized retailers. retailers. Successful organized retailers today work closely with their vendors to predict consumer demand, shorten lead times, reduce inventory holding and ultimately save cost. Example: Wal-Mart pioneered the concept of build building ing compet competiti itive ve advant advantage age throug through h distri distribut bution ion & inform informati ation on syst system emss in the the reta retail ilin ing g indu indust stry ry.. Th They ey intr introd oduc uced ed two two inno innova vati tive ve logi logist stic icss
tech techni niqu ques es – cros crosss-do dock ckin ing g
and and
EDI EDI
(ele (elect ctro roni nicc
data data
interchange) 2. On an average average a super market market stocks up to 5000 SKU's against against a few hundred stocked with an average unorganized retailer. This will provide variety in products (required breadth & depth for consumers) 3. As a consequence of high volumes, procurement will be direct from the Manufacturer. Hence, merchandise can be offered at lower costs.
Weakness:
1. Less Conversion level: Despite high footfalls, the conversion ratio has b bee een n very very low low in the the reta retail il ou outl tlet etss in a mall mall as comp compar ared ed to the the standalone counter parts. It is seen that actual conversions of footfall into sales for a mall outlet is approximately 20-25%. On the other hand, a high street store of retail chain has an average conversion of about 5060%. As a result, a stand-alone store has a ROI (return on investment) of 25-30%; in contrast the retail majors are experiencing a ROI of 8-10%
- 22 -
2. Customer Loyalty: Retail chains are yet to settle down with the proper merchandise mix for the mall outlets. Since the stand-alone outlets were established long time back, so they have stabilized in terms of footfalls & merchandise mix and thus have a higher customer loyalty base.
Opportunity:
1. The Indian middle class is already 30 Crore & is projected to grow to over 60 Crore by 2010 making India one of the largest consumer markets of the world. The IMAGES-KSA projections indicate that by 2015, India I ndia will have over 55 Crore people under the age of 20 - reflecting the enormous opportunities possible in the kids and teens retailing segment. 2. Organized Organized retail is only 3% of the total retailing market market in India. It is estimated to grow at the rate of 25-30% p.a. and reach INR 1,00,000 Crore by 2010. 3. Percolating Percolating down : In India it has been found out that the top 6 cities cities contribute for 66% of total organized retailing. While the metros have already been exploited, the focus has now been shifted towards the tier-II cities. The 'retail boom', 85% of which has so far been concentrated in the metros is beginning to percolate down to these smaller cities and towns. The contribution of these tier-II cities to total organized retailing sales is expected to grow to 20-25%. 4. Rural Retailing: India's huge rural population has caught the eye of the retailers looking for new areas of growth. ITC launched India's first rural mall "Chaupal Saga" offering a diverse range of products from FMCG to electronic goods to automobiles, attempting to provide farmers a onestop destination for all their needs." Hariyali Bazaar" is started by DCM Sriram group which provides farm related inputs & services. The Godrej group has launched the concept of 'agri-stores' named "Adhaar" which offers agricultural products such as fertilizers & animal feed along with - 23 -
the required knowledge for effective use of the same to the farmers. Pepsi on the other hand is experiment experimenting ing with the farmers farmers of Punjab Punjab for growing the right quality of tomato for its tomato purees & pastes.
Threats:
1. If the unorganized retailers are put together, they are parallel to a large supermarket with no or little overheads, high degree of flexibility in merchandise, display, prices and turnover. 2. Shopping Culture: Shopping culture has not developed in India as yet. Even now malls are just a place to hang around with family and friends and largely confined to window-shopping. 3. Cult Cultur ural al Vari Variat atio ion n lead leadss to vari variat atio ion n in merc mercha hand ndis isee in Indi Indiaa at different geographical locations.
- 24 -
COMPANY PROFILE Pantaloon Retail (India) Limited, is India’s leading retailer that operates multiple retail formats in both the value and lifestyle segment of the Indian Indian consum consumer er market market.. Headqu Headquart artere ered d in Mumbai Mumbai (Bomba (Bombay), y), the company operates over 12 million square feet of retail space, has over 1000 stores across 71 cities in India and employs over 30,000 people.
The company’s leading formats include Pantaloons, a chain of fashion outlets, Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, Bazaar, a supermarket chain, blends the look, touch and feel of Indian bazaars with aspects of modern retail like choice, convenience and quality and Central, a chain of seamless destination malls. Some of its other formats include include Brand Factory, Blue Sky, aLL, Top 10 and Star and Sitara. Sitara. The company also operates an online portal, futurebazaar.com.
A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, a large-format home solutions store, Collection i, selling home furniture products and eZone focussed on catering to the consumer electronics segment.
Pantaloon Retail was recently awarded the International Retailer of the Year 2007 by the US-based National Retail Federation (NRF) and the Emer Emergi ging ng Mark Market et Reta Retail iler er of the the Year Year 20 2007 07 at the the Worl World d Reta Retail il Congress held in Barcelona. - 25 -
Pantaloon Retail is the flagship company of Future Group, a business group catering to the entire Indian consumption space.
Future Group
Future Group, led by its founder and Group CEO, Mr. Kishore Biyani, is one of India’s leading business houses with multiple businesses spanning across across the consum consumpti ption on space. space. While While retail retail forms forms the core core busine business ss activity of Future Group, group subsidiaries are present in consumer fina financ nce, e,
capit apital al,,
insur nsuran ancce,
leis leisur uree
and and
ent enterta ertaiinmen nmentt,
bran brand d
development, retail real estate development, retail media and logistics.
Led by its flagship enterprise, Pantaloon Retail, the group operates over 12 million square feet of retail space in 71 cities and towns and 65 rural locations locations across across India. Headquartered Headquartered in Mumbai Mumbai (Bombay), (Bombay), Pantaloon Pantaloon Retail employs around 30,000 people and is listed on the Indian stock exchan exchanges ges.. The compan company y follow followss a multi-f multi-form ormat at retail retail strate strategy gy that that captures almost the entire consumption basket of Indian customers. In the lifestyle segment, the group operates Pantaloons, a fashion retail chain and Central, a chain of seamless malls. In the value segment, its marquee brand, Big Bazaar is a hypermarket format that combines the look, touch and feel of Indian bazaars with the choice and convenience of modern retail.
- 26 -
In 2008, Big Bazaar opened its 100th store, marking the fastest ever organic expansion of a hypermarket. The first set of Big Bazaar stores opened in 2001 in Kolkata, K olkata, Hyderabad and Bangalore.
The group’s specialty retail formats include, books and music chain, Depot, sportswear sportswear retailer, retailer, Planet Planet Sports, Sports, electronics electronics retailer, Ezone, Ezone, home improvement chain, Home Town and rural retail chain, Aadhar, among
others.
It
also
operates
popular
shopping
portal,
futurebazaar.com.
Future Capital Holdings, the group’s group’s financial financial arm provides provides investment advi adviso sory ry to asse assets ts wort worth h over over $1 bill billio ion n that that are are bein being g inve invest sted ed in consumer brands and companies, real estate, hotels and logistics. It also operates a consumer finance arm with branches in 150 locations.
Other group companies companies include, Future Generali, Generali, the group’s insurance insurance venture in partnership with Italy’s Generali Group, Future Brands, a brand brand develo developme pment nt and IPR compan company, y, Future Future Logist Logistics ics,, provid providing ing logist logistics ics and distri distribut bution ion soluti solutions ons to group group compan companies ies and busine business ss partners and Future Media, a retail media initiative. - 27 -
Thee grou Th group’ p’ss prese presenc ncee in Leis Leisur uree & En Ente tert rtai ainme nment nt segm segmen entt is led led through, Mumbai-based listed company Galaxy Entertainment Limited. Galaxy leading leisure chains, Sports Bar and Bowling Co. and family entertainment centres, F123. Through its partner company, Blue Foods the group group operat operates es around around 100 restau restauran rants ts and food food courts courts throug through h brands brands like Bombay Blues, Spaghetti Kitchen, Noodle Bar, The Spoon, Copper Chimney and Gelato. Future Future Group’ Group’ss joint joint ventur venturee partne partners rs includ include, e, US-base US-based d statio stationer nery y products
retailer,
Staples
and
Middle
East-based
Axiom
Communications.
Thee group Th group’s ’s flag flagsh ship ip comp compan any, y, Pant Pantal aloo oon n Reta Retail il was was awar awarde ded d the the International Retailer of the Year 2007, by the US-based National Retail Federa Federatio tion, n, the larges largestt retail retail trade trade associ associati ation on and the the Emergi Emerging ng Mark Market et Reta Retail iler er of the the Year Year 2007 2007 at the the Worl World d Reta Retail il Cong Congre ress ss in Barcelona.
Futu Future re Grou Group p beli believ eves es in deve develo lopi ping ng stro strong ng insi insigh ghts ts on Indi Indian an consumers and building businesses based on Indian ideas, as espoused in the group’s core value of ‘Indianness.’ The group’s corporate credo is, ‘Rewrite rules, Retain values.’
- 28 -
Corporate Statements
Future Group Manifesto
“Future” – the word which signifies optimism, growth, achievement, strength, beauty, rewards and perfection. Future encourages us to explore areas yet unexplored, write rules yet unwritten; create new opportunities and new successes. To strive for a glorious future brings to us our strength, our ability to learn, unlearn and re-learn our ability to evolve.
We, in Future Group, will not wait for the Future to unfold itself but create future scenarios in the consumer space and facilitate consumption because consumption is development. Thereby, we will effect socioeconom economic ic develo developme pment nt for our custom customers ers,, employ employees ees,, shareh sharehold olders ers,, associates and partners.
Our customers will not just get what they need, but also get them where, how and when they need.
We will not just post satisfactory results, we will write success stories.
We will not just operate efficiently in the Indian economy, we will evolve it.
We will will not not just just spot spot tren trends ds;; we will will set tre trends nds by marryi marrying ng our understanding of the Indian consumer to their needs of tomorrow.
- 29 -
It is this understanding that has helped us succeed. And it is this that will help us succeed in the Future. We shall keep relearning. And in this process, do just one thing.
Rewrite Rules. Retain Values.
Group Vision Future Future Group Group shall shall delive deliverr Everyt Everythin hing, g, Everyw Everywher here, e, Every Every time time for Every Indian Consumer in the most profitable manner.
Group Mission
- 30 -
We share the vision and belief that our customers and stakeholders shall be be serv served ed only only by crea creati ting ng and and exec execut utin ing g futu future re scen scenar ario ioss in the the consumption space leading to economic development.
We will be the trendsetters in evolving delivery formats, creating retail realty, making consumption affordable for all customer segments – for classes and for masses.
We shall infuse Indian brands with confidence and renewed ambition.
We shall shall be effici efficient ent,, costcost- consci conscious ous and committe committed d to qualit quality y in whatever we do.
We shall ensure that our positive attitude, sincerity, humility and united determination shall be the driving force to make us successful.
Core Values
•
Indianness: confidence in ourselves.
•
Leadership: to be a leader, both in thought and business.
•
Respect & Humility: to respect every individual and be humble
in our conduct. •
Introspection: leading to purposeful thinking.
•
Openness: to be open and receptive to new ideas, knowledge and
information. •
Valuing Valuing and Nurturi Nurturing ng Relati Relations onships hips:: to bu buil ild d long long term term
relationships. •
Simplicity & Positivity: Simplicity and positivity in our thought,
business and action. - 31 -
•
Adaptability: to be flexible and adaptable, to meet challenges.
•
Flow: to respect and understand the universal laws of nature.
Company Timeline
Major Milestones 1987-Company -Company incorporate incorporated d as Manz Wear Private Limited. Limited. Launch of
Pantaloons trouser, India’s first formal trouser brand.
1991-Launch of BARE, the Indian jeans brand.
1992-Initial public offer (IPO) was made in the month of May.
1994-The Pantaloon Shoppe – exclusive menswear store in franchisee
format launched across the nation. The company starts the distribution of branded garments through multi-brand retail outlets across the nation.
1995-John Miller – Formal shirt brand launched.
1997-Company enters modern retail with the launch of the first 8000
square feet store, Pantaloons in Kolkata.
- 32 -
2001-Three Big Bazaar stores launched within a span of 22 days in
Kolkata, Bangalore and Hyderabad.
2002-Food Bazaar, the supermarket chain is launched.
2004-Central - India’s first seamless mall is launched in Bangalore.
2005-Gro Group
moves
beyond
ret retail,
acquires
stakes
in
Galaxy
Entertainment, Indus League Clothing and Planet Retail.
Sets up India’s first real estate investment fund Kshitij to build a chain of shopping malls.
2006-Future Future Capita Capitall Holdin Holdings, gs, the compan company’s y’s financ financial ial is formed formed to
mana manage ge over over $1.5 $1.5 bill billio ion n in real real esta estate te,, priv privat atee equi equity ty and and reta retail il infras infrastru tructu cture re funds. funds. Plans Plans forays forays into into retail retailing ing of consum consumer er financ financee products.
Home Town, a home building and improvement products retail chain is launch launched ed along along with with consum consumer er durabl durables es format format,, Ezone Ezone and furnitu furniture re chain, Furniture Bazaar.
Future Group enters into joint venture agreements to launch insurance products with Italian insurance major, Generali.
Forms joint ventures with US office stationery retailer, Staples.
2007-Future Group crosses $1 billion turnover mark.
- 33 -
Speci Special alis ised ed comp compan anie iess in reta retail il medi media, a, logi logist stic ics, s, IPR IPR and and bran brand d development and retail-led technology services become operational.
Pantaloon Retail wins the International Retailer of the Year at US-based Natio National nal Retail Retail Federa Federatio tion n conven conventio tion n in New York and Emergi Emerging ng Reta Retail iler er of the the Year Year awar award d at the the Worl World d Reta Retail il Cong Congre ress ss held held in Barcelona.
Futurebazaar.com becomes India’s most popular shopping portal.
2008-Future Capital Holdings becomes the second group company to
make a successful Initial Public Offering in the Indian capital markets.
Big Bazaar crosses the 100-store mark, marking one of the fastest ever expansion of a hypermarket format anywhere in the world.
Total operational retail space crosses 10 million square feet mark.
Future Future Group Group acquir acquires es rural rural retail retail chain, chain, Aadhar Aadhar presen presentt in 65 rural rural locations.
- 34 -
Board of Directors
Mr. Kishore Biyani, Managing Director
Kishore Biyani is the Managing Director of Pantaloon Retail (India) Limited and the Group Chief Executive Officer of Future Group. He has - 35 -
led Pantaloon Retail’s emergence as the India’s leading retailer operating multiple retail formats that now cater to almost the consumption basket of a large section of Indian consumers.
Kishore Biyani led the company’s foray into organized retail with the opening up of the Pantaloons family store in 1997. This was followed in 2001 with the launch of Big Bazaar, a uniquely Indian hypermarket format that democratized shopping in India. It blends the look, touch and feel feel of Indi Indian an baza bazaar arss with with aspe aspect ctss of mode modern rn reta retail il like like choi choice ce,, conv conven enie ienc ncee and and qual qualit ity. y. Th This is was was foll follow owed ed by a numb number er of othe other r formats including Food Bazaar, Central and Home Town.
The year, 2006 marked the evolution of Future Group, that brought together the multiple initiatives taken by group companies in the areas of Retail, Brands, Space, Capital, Logistics and Media.
Kishor Kishoree Biyani Biyani advoca advocates tes ‘Indian ‘Indiannes ness’ s’ as the core core value value driving driving the group. The group’s corporate credo is ‘Rewrite Rules, Retain Values.’
Kishore Biyani was awarded the Ernst & Young Entrepreneur of the Year 2006 in the Services Sector and the Lakshmipat Singhania - IIM Luck Lu ckno now w Youn Young g Busi Busine ness ss Lead Leader er Awar Award d by Prime Prime Mini Minist ster er,, Dr. Dr. Manm Manmoh ohan an Sing Singh h in 2006 2006.. He was was also also awar awarde ded d the the CNBC CNBC Firs Firstt Generation Entrepreneur of the Year 2006.
Kishore Kishore Biyani was born in August, 1961 and is married married to Sangita Sangita and they have two daughters. He recently authored a book, ‘It Happened In Indi India’ a’ that that capt captur ures es his his entre entrepr pren eneu euria riall journ journey ey and and the the grow growth th of modern retailing in India - 36 -
Mr. SHAILESH HARIBHAKTI Chairman
Mr. GOPIKISHAN BIYANI Wholetime Director
Mr. RAKESH BIYANI Wholetime Director
Mr. VIJAY BIYANI Wholetime Director
Mr. S. DORESWAMY Director
Dr. DARLIE KOSHY Director
Mr. ANIL HARISH Director
- 37 -
Ms. BALA DESHPANDE Director
Mr. VIJAY KUMAR CHOPRA Director COMPANY SECRETARY
Mr. DEEPAK TANNA
Affiliate Companies
Home Solutions Retail (India) Limited
Home Home Solu Soluti tion onss Reta Retail il (Indi (India) a) Limi Limite ted d (HSR (HSRIL IL)) offe offers rs comp comple lete te retailing solutions for all products and services related to home building and home home improve improvemen ment. t. The key produc productt catego categorie riess are Consum Consumer er Durable Durable & Electr Electronic onicss (CDE), (CDE), Furnit Furniture ure,, Home Home furnis furnishin hing g & decor, decor, Home improvement and Home services. HSRIL operates retail format Collection-i, Furniture Bazaar, Electronics Bazaar, Home Town and ezone.
Future Brands Limited
Future Brands Limited (FBL) has been incorporated on November, 2006 and is involv involved ed in the busine business ss of creati creating, ng, develo developin ping, g, managi managing, ng, acquiring and dealing in consumer-related brands and IPRs (Intellectual Property Rights). - 38 -
Future Media (India) Limited
Future Media (India) Limited (FMIL) was incorporated as the Group’s media venture, aimed at creation of media properties in the ambience of cons consum umpt ptio ion n and and thus thus offe offers rs acti active ve enga engage geme ment nt to bran brands ds and and cons consum umer ers. s. FMIL FMIL offe offers rs rele releva vant nt enga engage geme ment nt thro throug ugh h its its medi mediaa properties like Visual Spaces, Print, Radio, Television and Activation.
Future Logistic Solutions Limited
Future Logistic Solutions Limited (FLSL) has been incorporated as a separate entity and is involved in the business of providing logistics, transportation and warehousing services for all group companies and third-parties.
Future Axiom Telecom Limited
Future Axiom Telecom Limited is a Joint Venture with Axiom Telecom LLC, UAE. The Company has a 50% stake in Future Axiom Telecom Limited (FATL) which is a joint venture Company with Axiom Telecom LLC, UAE.
- 39 -
The Company would be engaged in sourcing and wholesale distribution of mobile handsets, accessories and in setting up service centers for mobile handsets in India.
Pantaloon Food Product (India) Limited
Pantaloon Food Product (India) Limited (PFPIL) was incorporated with the object of sourcing and backward integration of food business of the Company. PFPIL has sourcing and distribution bases at all key cities across the country.
Future Knowledge Services Limited
- 40 -
Future Future Know Knowle ledg dgee Serv Servic ices es Limi Limite ted d (FKS (FKSL) L) was was inco incorpo rpora rate ted d on Janu Januar ary, y, 2007 2007 and and is enga engage ged d in the the busi busine ness ss of busi busine ness ss proc proces esss outsourcing and knowledge process outsourcing.
Future Capital Holdings Limited
Future Future Capita Capitall Holdin Holdings gs Limite Limited d (FCH) (FCH) was formed formed to manage manage the financial services business of Pantaloon Retail (India) Limited and other group group entiti entities. es. FCH is one of the fastes fastestt growin growing g financ financial ial servic services es company in India, with presence in Asset Advisory, Retail Financial Services and Proprietary Research.
Thee comp Th compan any y operates a consumer finance retail format, Future Money and manages assets worth over US$ 1 Billion through In division, Kshitij, Horizon and Future Hospitality Funds. FCH subsidiary companies include Kshitij Inve Invest stme ment nt Advi Adviso sory ry Comp Compan any y Ltd. Ltd.,, Ambi Ambitt Inves Investm tmen entt Advis Advisor ory y Company Ltd., and Indivision Investment Advisors Ltd.
Future Generali India Insurance Company Limited
- 41 -
Future Future Gene Genera rali li India India Insu Insura ranc ncee Comp Compan any y Limi Limite ted d (FGIIC (FGIICL) L) was was incorporated on October 30, 2006 to undertake and carry on the business of general insurance. The approval for carrying on General Insurance Busi Busine ness ss has has been been rece receiv ived ed from from the the Insu Insura ranc ncee Regu Regula lato tory ry and and Development Authority of India (IRDA) on September 4, 2007.
Future Generali India Life Insurance Company Limited
Future Generali India Life Insurance Company Limited (FGILICL) was incorporate incorporated d on October 30, 2006 to establish establish and conduct conduct the business business of life insurance in India, which comprises of whole life insurance, endowment insurance, double benefit and multiple benefits insurance etc.
The approval for carrying on Life Insurance Business has been received from the IRDA in September, 2007.
Future bazaar India Limited
- 42 -
Future bazaar India Limited (FBIL) is set up as the e-Retailing arm of the the
Futu Future re Grou Group p
for for
prov provid idin ing g
on-l on -liine shop shoppi ping ng exp xper erie ienc ncee.
Futurebazaar.com was launched on January 2, 2007, and has emerged as one of the most popular online shopping portals in India. It was awarded with the “Best Indian Website” award, in the shopping category, category, by the PC World Indian Website Awards.
Staples Future Office Products Private Limited
Stap Staple less Futu Future re Offi Office ce Prod Produc ucts ts Priv Privat atee Limi Limite ted d (SFO (SFOPP PPL) L) was was incorporated on January, 2007 and is involved in the business of dealing in all kinds of office supplies, office equipments and products. SFOPPL is a joint venture between the Company and Staples Asia Investment Limited (a subsidiary of Staples Inc USA). The company’s first retail outlet opened in Bangalore in December, 2007.
- 43 -
- 44 -
FUTURE GROUP NETWORK
LINES OF BUSINESS
E-tailing Futurebazaar.com
Futurebazaar.com offers the widest range of products at ‘lowest prices – everyday!’
- 45 -
Having pioneered the retailing business in India, PRIL has now decided to revolutionize the consumer e-commerce business in India. It intends to provid providee custom customers ers with with a stream streamlin lined, ed, effici efficient ent and world world class class personalized shopping experience, which will be supported with the best technology platform.
Food Brew Bar
The Brew Bar is a classy and refined; yet reasonable an egalitarian a bar with loads of bonhomie!
Cafe Bollywood
- 46 -
Indian street food but with assurance of highest levels of hygiene and quality.
Chamosa
Cham Chamos osaa is a bran brande ded d chai chain, n, whic which h sell sell the the loca locall Indi Indian an snac snack k combination of tea and samosas.
Food Bazaar
Life is all about good taste and food bazaar aims to ensure the same. With With the the low low pric prices es,, a wide wide sele select ctio ion n of prod produc ucts ts and and guar guaran ante teed ed freshness, you are bound to find it irresistible.
Sports Bar
- 47 -
A bistro focused on the world of sport, the Sports Bar is complimented with an unrivalled ambience.
Fashion aLL
Shop big and shop for big, coz fashion just got a little larger! Fashion for plus size people.
Big Bazaar
If value for money is what drives your purchase; there can be no better place for you other than Big Bazaar.
Blue Sky
- 48 -
Accessories like never before....get the best in sunglasses and watches at your kind of prices.
Brand Factory
The thought behind Brand Factory is to raise the bar of expectation and experience when it comes to ‘Brand + Bargain Shopping'.
Celio
Celio, a market leader in men's ready to wear clothing in France, is now available in India.
Central
- 49 -
A showcase, seamless mall for all your needs. Located in the heart of your city, Central invites you to Shop, Eat, and Celebrate.
Fashion Big Bazaar
With fashion apparel and accessories for all age groups across categories like men, ladies, kids and infants, Fashion@Big Bazaar is the fashion destination for all.
Lee Cooper
Regarded as a brand that is fun to wear and be associated with, Lee Cooper Cooper offers the entire range of lifestyle lifestyle products in fashions fashions category for young men and ladies.
Navaras
Navar Navaras as is a fine 22 carat carat pure pure gold gold and diamond diamond jewell jewellery ery brand, brand, retailed from Big Bazaar stores. - 50 -
Pantaloons
Pantaloons Fresh Fashion stands out as a fashion trendsetter, on the lines of how fashion is followed internationally for the youth and the trendy.
Planet Sports
India' India'ss
larges largestt
multi-b multi-bran rand d
sports and lifestyle specialty retail chain, Planet Sports offers the largest collection of international sports and lifestyle brands.
Home Solutions
HomeTown
A one-stop destination for every need of the aspirational Indian homeowne owner, r, Home Home To Town wn,, brin brings gs toge togeth ther er a vast vast rang rangee of produ product ctss and and services under one roof.
- 51 -
eZone
eZone brings to you the trendiest in electronics, at the lowest prices. Technology changes at a rapid pace and so does our merchandise.
Furniture Bazaar
Furniture Bazaar offers an entire range of Home Furniture needs that are utilitarian and affordable in their pricing.
Electronics Bazaar
Currently present within Big Bazaar stores, Electronics Bazaar offers the best deals in branded electronic goods and appliances.
Home Bazaar
- 52 -
Home Bazaar brings together a vast range of products and services under one roof for consumers that go into building a house and everything to make it a ‘Home’.
Collection i
Collection i, a lifestyle furniture store is built on the concept of ideas for home décor, offering the trendiest and latest in furniture, furnishings and home accents.
Telecom & IT Gen M
Gen M, as the name suggests, is for the young and the hip. Gen M offers a whole array of the latest and the best gadgets and gizmos to tech junkies.
One Mobile
- 53 -
M bazaar is the first and one of its kind concept offering comprehensive solutions to satisfy the knowledge, entertainment and communication aspirations of Individuals.
M – Port
Walk into the ever-progressive world of technology and super brands. M-port is a one-stop shop for everything that you need to fulfil your home and I.T. needs.
General Merchandise Big Bazaar
If value for money is what drives your purchase; there can be no better place for you other than Big Bazaar.
Blue Sky
- 54 -
Accessories like never before....get the best in sunglasses and watches at your kind of prices.
Brand Factory
The thought behind Brand Factory is to raise the bar of expectation and experience when it comes to ‘Brand + Bargain Shopping'.
Central
A showcase, seamless mall for all your needs. Located in the heart of your city, Central invites you to Shop, Eat, and Celebrate.
Navaras
- 55 -
Navar Navaras as is a fine 22 carat carat pure pure gold gold and diamond diamond jewell jewellery ery brand, brand, retailed from Big Bazaar stores.
Pantaloons
Pantaloons Fresh Fashion stands out as a fashion trendsetter, on the lines of how fashion is followed internationally for the youth and the trendy.
KB's FairPrice
KB’s KB’s FairPri FairPrice ce are simple but modern modern,, self self servic servicee ration ration shops shops or neighborhood stores, spread across an average area of 1,000 to 1,500 sq.ft.
Shoe Factory
A valu valuee form format at,, to the the core core,, Shoe Shoe Fact Factor ory y brin brings gs with with it a fres fresh h experience in footwear retailing.
Leisure & Entertainment
- 56 -
Bowling Co.
There is something for everyone at this state-of-the-art premium family entertainment center.
F 123
An entertainment zone, F 123 is a leisure solution for all age groups.
Wellness & Beauty Star Sitara
Star & Sitara, a unique beauty salon for men and women democratises salon services and delivers quality service at very affordable prices.
Fit & Healthy
- 57 -
At Fit & Healthy our focus is on helping you stay healthy by providing access access to the best best allopa allopathi thic, c, ayurve ayurvedic dic and homeop homeopath athic ic medici medicinal nal products.
Books & Music
Depot is one of the youngest brands from the Pantaloon stable and is a
tribute to our freedom of thought, speech and expression shared in a novel fashion with customers as books, multimedia, toys, stationary and gifts.
- 58 -
FINANCIALHIGHLIGHTS
The operating results of the Com pan y for for the the yea r unde r review are as follows : (Rs. in Crores)
Sales (Net of Taxes) Operating Income
Other Income
2008-2009
2007-2008
6,103.70
4,776.33
238.35
272.58
6.06
3.76
6,347.76
5052.67
Tax Profit before Depreciation & Tax
356.28
279.01
Less: Depreciation
140.05
83.39
Profit before Tax
216.23
195.62
Less: Earlier Year’s Income Tax
(0.27)
(0.03)
Less: Provision for Taxation
75.38
69.68
after Tax Tax Profit after
140.58
125.97
Add: Profit brought forward from previous year
267.56
215.76
Surplus available for appropriation
408.14
341.73
11.58
10.67
1.97
1.81
Total Income
APPROPRIATION Proposed Dividend Provision for Dividend Tax
- 59 -
14.05
12.60
380.81
316.65
Transfer to General Reserve Balance carried to Balance Sheet
Ratios Jun-05
Jun-06
Jun-07
Jun-08
Jun-09
66.52%
66.53%
69.36%
69.56%
69.85%
Manpower Ma npower Costs / Total Income
4.80%
5.99%
6.19%
5.42%
4.32%
Advertising and Selling Cost / Total Income
3.08%
2.72%
2.80%
2.34%
1.80%
Interest / Total Income
2.60%
1.97%
2.70%
3.67%
5.01%
3.42
4.05
3.43
2.51
2.12
Profitability
J un-05
Jun-06
Jun-07
Jun-08
Jun-09
PBDIT / Total Income
8.89%
7.99%
9.24%
9.19%
10.63%
PBDT / Total Income
6.29%
6.02%
6.55%
5.52%
5.61%
Net profit / Total Income
3.65%
3.43%
3.60%
2.49%
2.21%
24.42%
17.15%
14.82%
8.57%
6.83%
Financial Performance
Cost of Goods Sold / Net Sales
PBDIT/ Interest (Debt-Service Ratio)
RONW (PAT / Average Net Worth)
- 60 -
ROCE (PBDIT / Average capital employed)
Balance Sheet
Debt-Equity Ratio
22.41%
18.30%
17.48%
14.44%
14.73%
Jun-05
Jun-06
Jun-07
Jun-08
Jun-09
1.29
1.14
1.19
1.19
1.25
4
3
7
94
98
99
102
101
Current Ratio
1.73
1.44
2.19
1.71
1.97
Quick Ratio
0.55
0.58
1.08
0.78
0.75
Asset Turnover (Total Income / Total Assets)
2.03
1.62
1.36
1.23
1.21
Jun-05
Jun-06
Jun-07
Jun-08
Jun-09
Debtors Turnover (Days) Inventory Turnover (Days)
Key Finacial Parameters (Rs in Crores)
1,055.85
Total Revenue
8
10
1,871.97
3,328.77
5,052.67
6,347.77
Profit Before Interest, Tax and Depreciation
93.91
149.64
307.63
464.28
674.50
Profit After Tax
38.55
64.16
119.99
125.97
140.58
Cash Profit
58.90
99.85
184.78
246.64
328.88
Jun-05
Jun-06
Jun-07
Jun-08
Jun-09
Basic Earnings (less Extraordinary Income Income))
3.31
5.06
8.71
7.54
7.94
Basic Cash Earnings(Rs.)
4.45
6.70
11.39
14.76
18.58
Dividend (Rs)
0.50
0.50
0.50
0.60
0.60
20.12
39.20
74.42
111.96
118.20
Per Share Data
Book Value (Rs)
- 61 -
Growth in Total Income(Rs in Crores )
Growth in Profit after Tax (Rs in Crores)
- 62 -
Growth in
PBDIT (Rs
in Crores)
ROCE (%)
- 63 -
Debt-Equity Ratio
Earning Per Share (Rs)
- 64 -
10-YEAR FINANCIALSUMMARY BALANCE SHEET Rs. in Crores. Banalce Sheet as at
Jun-00
Jun-01 Jun-02
Jun-03
Jun-04
Jun-05
Jun-06
Jun-07
Jun-08
Jun-09
Sources of Funds Share re Ca Capital pital Equity Sha Share Application Mo Money ney Reserves & Surplus
Warrant Application Money Shareholders Fund Deferred Tax Liability
Secured Loans Unsecured Unse cured Loans
12.52
13.32
17.32
18.18
19.14
22.00
26.88
29.35
31.86
38.06
-
-
-
-
-
-
-
0.01
-
-
13.0 .07 7
22.7 22 .75 5
36.6 .68 8
49.5 49 .50 0
75. 5.7 75
196 96.5 .53 3
-
-
-
3.00
-
-
500. 0.0 02 1,0 1,062. 2.8 82 1,7 1,751.5 .50 0 2,2 ,21 11.4 .48 8 -
-
63.26
22.88
25.5 .59 9
36..07 36
54.00
67..68 67
94. 4.8 89
221 21..53
-
-
1.79
2.92
6.03
13.04
27.92
68.2 68 .22 2 109 109.5 .53 3
141. 14 1.32 32
214. 21 4.76 76
256. 25 6.17 17
428. 42 8.10 10
951. 95 1.93 93 1, 1,99 991. 1.77 77 2, 2,52 525. 5.53 53
0.30
4.23
21.36
30.04
173.29
347.65
31.6 31 .61 1 2.73
1.42
526. 6.9 90 1,0 1,092. 2.1 18 1,8 1,846.6 .62 2 2,2 ,27 72.42 55.84
67.84
200.01
116.10 11
324.86
Total Loans
34.3 34 .34 4
69.6 69 .64 4 109.8 109.83 3
145. 14 5.55 55
236. 23 6.12 12
286. 28 6.21 21
601. 60 1.39 39 1, 1,29 299. 9.58 58 2,191 2,191.7 .78 8 2, 2,85 850. 0.39 39
Total Liabilities
59.9 59 .93 3
105. 10 5.71 71 16 165. 5.62 62
216. 21 6.15 15
337. 33 7.04 04
520. 52 0.78 78 1, 1,15 156. 6.20 20 2, 2,44 447. 7.60 60 4, 4,10 106. 6.24 24 5, 5,23 238. 8.90 90
Application of Funds 21.2 .24 4
41.2 41 .24 4
77.7 .72 2
122. 2.9 98
184.7 .71 1
251 51.1 .10 0
366. 6.0 01
3.61
5.22
9.43
15.67
24.32
37.36
56.58
17.6 .63 3
36..01 36
68.29
107. 7.3 31
160.3 .39 9
213 13..74
309. 9.4 43
9.85
7.86
6.28
3.32
14.44
15.79
86.06
27.4 .48 8
43..87 43
74.57
110. 0.6 63
174.8 .83 3
229 29..53
395. 5.4 49
805.73 1,5 1,52 28.8 .81 1 1,9 ,91 13.99
0.07
5.07
5.07
5.26
5.26
3 1.92 31
161.67
252.01
Inventories
37.1 .19 9
56.3 56 .33 3
87.4 .41 1
114. 4.3 38
157.6 .60 0
275 75.9 .93 3
507. 7.0 02
885.9 .96 6 1,4 1,42 29.8 .84 4 1,7 ,78 87.8 .84 4
Debtors
10.05
12.98
17.69
22.32
17.58
12.31
17.03
65.17
113.16
177.25
Cash & Bank Balance
2.28
2.38
4.03
8.07
13.85
21.50
21.77
162.97
121.10
109.34
Loans & Advances
6.01
11.10
23.33
21.43
40.95
93.68
297.57
633.85
962.32 1,202.56
-
-
-
0.46
1.09
1.50
166. 16 6.21 21
229. 22 9.98 98
403. 40 3.87 87
Gross Gro ss Bloc Block k
Depreciation Net Block
Capital WI WIP P NB
+
CWIP
Investment
767.0 .07 7 1,3 1,36 68.7 .76 6 1,8 ,87 76.4 .45 5 92.47
170.59
307.69
674.60 1,1 1,19 98.1 .17 7 1,5 ,56 68.76 131.13
330.64
586.52 58
345.23
954.03
Current Assets
Other Current Assets
-
Total Current Assets
55.5 55 .53 3
82.7 82 .78 8 132.4 132.46 6
12.41
13.75
23.82
17.64
13.58
78.69
136.08
223.72
310.40
385.38
Other Curre Current nt Liabilities
9.66
12.04
22.05
44.44
52.91
48.39
93.73
120.15
309.68
506.01
Provisions
1.96
0.98
1.23
4.40
6.95
17.74
15.62
15.71
17.58
20.46
24.03
26.77
47.10
66.48
73.44
144.82
245.44
359.58
637.66
911.86
-
2.16
5.75
844. 84 4.48 48 1, 1,74 749. 9.45 45 2,628 2,628.5 .58 8 3, 3,28 282. 2.74 74
Current Liabilities
Creditors
Total Current Liabilities Liabilities
- 65 -
Net Current Assets Misc. Expenditure Total Assets
31.5 31 .50 0
56.0 56 .01 1
85.3 85 .36 6
99.7 99 .73 3
156. 15 6.54 54
259. 25 9.05 05
0.89
0.76
0.63
0.53
0.40
0.28
105. 10 5.71 71 16 165. 5.62 62
216. 21 6.16 16
337. 33 7.04 04
59.9 59 .93 3
- 66 -
599. 59 9.04 04 1,3 1,389 89.8 .86 6 1,99 1,990. 0.91 91 2, 2,37 370. 0.89 89 -
-
-
-
520. 52 0.78 78 1, 1,15 156. 6.20 20 2, 2,44 447. 7.60 60 4, 4,10 106. 6.24 24 5, 5,23 238. 8.90 90
10-YEAR FINANCIALSUMMARY -
PROFIT &
LOSS ACCOUNT
Profit& Profit & Loss Account as at
Jun-00
Jun-01
Jun-02
Jun-03
Jun-04
Sales & Operating Income
137. 13 7.28 28
180. 18 0.58 58
285. 28 5.29 29
444. 44 4.83 83
658. 65 8.31 31 1,0 1,052 52.8 .80 0
Other Income
0.66
0.44
0.67
0.79
Total Income
137. 13 7.94 94
181. 18 1.02 02
285. 28 5.96 96
Cost of Goods Cons. & Sold
97.1 .19 9
117. 7.9 98
Labour Charges
5.17
Packing Materials
Jun-06
Jun-07
1,86 1, 868. 8.97 97 3,236 3,236.7 .74 4
Jun-08
Jun-09
5,04 5, 048. 8.91 91 6,341 6,341.7 .70 0
3.05
3.00
92.03
3.76
6.06
445. 44 5.62 62
659. 65 9.64 64 1,05 1,055. 5.85 85
1,87 1, 871. 1.97 97
3,32 3, 328. 8.77 77
5,05 5, 052. 2.67 67
6,34 6, 347. 7.76 76
186. 6.1 11
303.5 .50 0
438 43 8.0 .01 1
700. 0.3 31 1,2 1,243.4 .43 3
2,2 ,24 45. 5.0 05
3,5 ,51 12.1 .19 9
4,4 ,42 29.9 .95 5
8.28
6.51
6.77
6.97
15.27
20.66
14.62
21.28
15.79
0.76
1.24
2.11
3.10
5.64
12.44
19.22
27.80
40.40
51.74
Power
1.03
2.02
5.34
7.94
12.08
21.95
37.41
61.51
78.20
98.97
Excise
-
0.43
4.58
3.40
3.36
0.28
-
-
-
-
Rent
3.08
6.18
10.03
15.71
27.59
47.97
113.46
207.01
326.27
405.76
Personnel Cost
4.18
6.81
13.59
19.13
27.53
50.65
112.07
206.09
274.07
274.26
Advertisement Expenses
2.98
6.05
8.77
11.83
18.75
32.56
50.96
93.14
118.28
114.23
Transportation Expenses
1.08
1.73
2.72
3.43
5.95
12.66
19.08
-
-
-
Sales Tax
1.85
3.55
5.26
7.75
14.91
-
-
-
-
-
Misc. Expenditure
9.22
12.00
17.96
24.88
41.72
67.84
106.03
165.92
217.70
282.56
126 12 6.5 .53 3
166. 6.2 27
262. 2.9 98
407.44
602 60 2.5 .50 0
961. 1.9 94
1,7 ,72 22.3 .34 4
3,0 ,02 21. 1.1 14
4,588.3 .39 9
5,6 ,67 73.26
11.41
14.74
22.98
38.18
57.14
93.91
149.64
307.63
464.28
674.50
Finance Charges
5.07
6.22
11.24
17.67
23.94
27.46
36.92
89.76
185.27
318.22
PBDT
6.33
8.52
11.74
20.51
33.20
66.46
112.71
217.87
279.01
356.28
Depreciation
1.07
1.63
4.22
6.35
8.79
13.33
20.82
36.86
83.39
140.05
PBT
5.27
6.89
7.53
14.16
24.41
53.12
91.90
181.01
195.62
216.23
Total Cost PBDIT
- 67 -
1.33
Jun-05
PriorPeriod Items
(0.00)
0.04
0.01
0.78
0.07
0.03
0.07
0.06
(0.03)
0.27
0.35
0.45
0.39
0.85
1.45
7.28
11.04
30.71
29.16
25.23
Deferred Tax
-
-
0.10
1.13
3.11
7.01
14.87
27.93
37.28
48.26
FringeBenefitTax
-
-
-
-
-
0.24
1.75
2.32
3.24
1.89
4.92
6.40
7.03
11.41
19.78
38.55
64.16
119.99
125.97
140.58
Current Tax
PAT
- 68 -
Project Overview BRAND FACTORY
Best Brands.Smart Prices
Brand Factory brings to the Indian consumers consumers the promise promise of revolu revolutio tioniz nizing ing value value shoppi shopping ng by offeri offering ng the best best Indian and International brands at Smart Prices
Brand Factory promises its customers that value shopping is not about seconds’ experience, it’s not about a garage sale environment and it’s not about buying cheap. Instead, it’s all about an amazing experience of ‘Buying Smart’.
STORE FRONT OF BF-Marathalli
- 69 -
The thought behind Brand Factory is to raise the bar of expectation and experience when it comes to ‘Brand + Bargain Shopping’. Over the years Factory Outlets have bec becom omee
dist distin inct ct shop shoppi ping ng dest destin inat atio ions ns with with dist distin inct ct
audiences. With fashion cycles reducing, larger quantities of stocks are reaching factory outlets. But then what gets compromised in the process is the brand and its image.
The emphasis at Brand Factory is to offer the customer the widest range of brands and categories possible at absolutely great prices, in an ambience that befits the brand. Brand Factory presents the brands in a fully air-conditioned, slick environment varying between 70,000 to 1,50,000 square feet.
Thee stor Th stores es offe offers rs a wide wide rang rangee of prod produc ucts ts incl includ udin ing g apparel apparelss for men and women; women; infant infant wear; wear; access accessori ories; es; cosmetics; footwear; sportswear, luggage; home linen and much more.
- 70 -
Brand Brand Fact Factor ory y hosts hosts sever several al Indi Indian an and Inte Intern rnat atio ional nal fash fashio ion n brand brandss incl includ udin ing g Levi Levis, s, Pepe Pepe Jean Jeans, s, Dock Docker ers, s, Wrangler, ProVogue, Arrow, Nike, Adidas, Reebok, Louis Phill Phillip ip,, Alle Allen n Solly Solly,, Reid Reid and and Tayl Taylor or,, Gini Gini and Jony Jony amongst others.
Brand Factory is an exclusive chain of all- year-discount stores offering the very best of national and international fash fashio ion n bran brands ds.. Laun Launch ched ed in the the secon second d quar quarte terr of FY 2007, Brand Factory clocked footfalls in excess of 2 million and nearly 30 per cent of customers at each store were repeat customers.
The intent, with Brand Factory, was to offer the customer the true brand brand experience experience at discounted discounted prices. prices. It was the price that got slashed, not the experience.
- 71 -
Primar Primarily ily focuse focused d on retail retailing ing appare apparel, l, access accessori ories es and footwear at discounted prices, these stores (each in excess of 60,000 60,000 square square feet) showcase showcase some some of the the best best known known brands including Diesel, Esprit, Levi’s,
Wrangler, Pepe, Lee, Louis Philippe, Arrow, Bossini and Van Heusen. Some new categories introduced during the year under review include music, electronics and luggage.
Curr Curren entl tly y ther theree are are 10 stor stores es locat located ed at Ahma Ahmadab dabad ad,, Bangal Bangalore ore,, Pune, Pune, Mumbai Mumbai,, Hydera Hyderabad bad,, Ghazia Ghaziabad bad and Kolkata
- 72 -
Supply Chain of Brand Factory Thee supp Th supply ly chain chain of BRAN BRAND D FACT FACTORY ORY is very very will will organized. In the store level Team leaders of the different Categories Categories report report about the
merchandise merchandise replenishm replenishment ent
leve levels ls and and buyi buying ng tren trends ds of the the merc mercha hand ndis isee to the the Category Managers at store and zonal office. The category manager’s inturn will place orders to vendors and they will eith either er send send the the merc mercha hand ndis isee dire direct ctly ly to the the stor storee or Distribution centre and from there the merchandise is sent to the store distribution centre and made available to the customer.
All the communication is done through effective use of ERP software’s like REM and SAP
Belo Below w is the the brie brieff repr repres esen enta tati tion on of merc mercha handi ndise se and information of supply chain of BRAND FACTORY (BF)
- 73 -
Activities at Store Level 1) Getting Products to Shelf
Indenting & Purchase Orders (PO’s) (a)Indenting:-
Indenting will be happen after checking stock in the store and goods in transit. Or whenever if required any changes in indenting due to season, weekends or any festivals then the quantity is modified. The indents will be raised to Zonal office in Bangalore. Delivery of fruit & vegetables is after 48hours after being raised. Indenting for milk and dairy products is delivered after 36 hours.
- 74 -
(b) Raising PO:-
PO (purchase order) for different merchandise is placed and an d is released to the vendors by the stores. PO on vendors can be raised only once each day & its validity will be for one time time and and all all the the deliv deliver ery y and paym paymen entt cond condit itio ions ns are are mentioned in it.
2) Receiving:(a)Checking of Delivery in DC
All the Dry DC delivery will be checked by a store staff in the DC staging area before packing and loading. This is to minimize delivery count error and ensure that right quantity is delivered to the stores. Behind this all the activity owner is Store Manager.
- 75 -
(b) Receiving Goods in Store: From DC & CPC
Receiving indented goods from the DC & CPC as per the delivery schedule. At the time of receiving goods from DC many things which is followed by the SCM, ASCM, & CSA
1. Check the seal in front of driver. 2. Note down the air condition temperature. 3. Inspect stocks for transit damages. 4. If any HU (Handling unit) / article is found damaged, excess, or missing noted it on the trip sheet for return to DC. 5. Do the GRN (Goods return note) for the delivery for the actual received quantity. 6. Stores are not unloading transit damaged stocks. Transit damages will be returned to DC in the same delivery truck. 7. Th Thee main main focu focuss duri during ng goo goods ds rece receiv ivin ing g must must be to unload the crates/ cartons from the truck as quickly and safely as possible.
(c) Receiving from Vendors
Proc Proced edur uree for for rece receiv ivin ing g goods goods dire direct ctly ly from from vendo vendors rs.. Behind this whole activity owner is store manager/ asst. store store manager manager.. Food Food bazaar bazaar stores stores indent indenting ing specia speciall lly y bak baker ery, y,
beve bevera rage ge
and and
book books/ s/ma maga gazi zine ness
SCM/ASCM
- 76 -
and and
musi music. c.
1. Check the deliveries for quantity, damages and freshness and accept only good products as per shelf life norms. 2. Do not accept any short shelf life or damage quantity from vendor and reduce it from the invoice if required. 3. Remove all expired products from the shelf and get them replaced with fresh product without any GRN for the same. 3. In case case of boo books/ ks/mag magazi azines nes and music music SCM/AS SCM/ASCM CM check bar-codes on the books or music CDs delivered by the vendor & return the unsold items to the vendors. 4. Vendors and store staff check physically check DSD deliveries for damages and freshness and accept only fresh saleable products.
3) Replenish Shelf from Goods Receiving Area Storing and cross docking:
The merchandise received from DC and CPC are either stored or cross docked in floor wise order and sent to be respective floors.
Tagging:
All the merchandise from DC and CPC’s are tagged with security tags to prevent merchandise from shrinkage.
- 77 -
There are different guidelines for different products to be tagged.
All the pants and briefs are tagged on the left side of the pocket, shirts are tagged at the front part between 2nd and 3rd button and foot wear are tagged to the left wear.
All the accessories are tagged with paper tags and soft tags
Managing Price Changes:
All the SKU’s are scanned before sending to floor to check the price variations and the discrepancies are sent to the zonal category staff. All the changing of SKU’s is done by category staff at Zonal office in Bangalore.
- 78 -
Replenishing merchandise to shelf’s:
After all the above process is done, the respective floor manager is intimated about the stock to his floor and a gate pas passs is gener generat ated ed and and he woul would d come come and and coll collect ect the the merchandise and stock to the shelf’s of his floor.
Block Diagram of the process
4) Managing waste and markdowns:
Segregation of damaged and expiry in store:
For F&V crates are received carefully for the item not for sale as per PRIL quality and are removed from the shelf. It is done by Team lead/Floor manager.
- 79 -
EXPIRY:
1. Near expiry product is markdown as a s per the RR rule. 2. An expired product is segregated and is treated as per following.
Vendor supply- Exchange with fresh stock from the vendor
at the time of next delivery DC supply-Dump in store.
Markdown for damages and near expiry:
Damaged and near expiry products is markdown as per the following rules:
Markdown criteria
Up to Rs. 15 or 15 % of selling price (whichever is lower) & it is done by Store manager.
Up to Rs 30 or 30% of SP(whichever SP(whichever is lower) & it is also done by DM / AM.
Beyond Rs 30 or 30% of SP & it is done by state fresh head.
- 80 -
Dumping of Damages and Expiry products
1. For processing of dump (damaged & expired) approval is obtained from store manager. 2. After dumping, the entire dump is entered into dump register in the presence of SM with his /her signature. 3. The entire dumped product is then get hand overed to garbage collection agency. 4. For some types of damaged product some part of each product is kept as proof. 5. Finally the dump register is sent to the supply chain office for system entry which will be audited at the zonal and head offices.
5) Returns:
The goods that are not fast moving or having defects or expired or damged are returned to respective distribution centres or vemdors.
The respective floor managers generate the out pass for moveme movement nt of mercha merchandi ndise se from from floor floor to the store store DC. Where the merchandise are physically counted or weighed, untagged and an out pass to the DC is generated and loaded to the vehicle.
The vehicle is tagged with the security tag and a return invoice is generated and handed over to the vehicle driver after taking the signature. - 81 -
TECHNOLOGY AND SOFWARE USED Internet
Internet is also rapidly evolving as a customer interface, removing the need of a consumer physically visiting the store.
ERP System
Vari Variou ouss ERP ERP vendo vendors rs have have devel develop oped ed reta retail il-s -spe peci cifi ficc systems which help in integrating all the functions from wareho warehousi using ng to distri distribut bution ion,, front front and back office office store store system systemss and merchan merchandis dising ing.. An integr integrate ated d supply supply chain chain helps helps the retail retailer er in mainta maintaini ining ng his stocks stocks,, getti getting ng his supplies on time, preventing stock-outs and thus reducing his costs, while servicing the customer better.
CRM Systems
The rise of loyalty programs, mail order and the Internet has provided retailers with real access to consumer data. Data warehousing & mining technologies offers retailers the tools they need to make sense of their consumer data and and apply apply it to busi busines ness. s. Th This is,, along along with with the the vario various us availa available ble CRM (Custo (Customer mer Relati Relations onship hip Managem Management ent)) Systems, allows the retailers to study the purchase behavior of consumers in detail and grow the value of individual consumers to their businesses.
- 82 -
Advanced Planning and Scheduling Systems
APS syste systems ms can provid providee improv improved ed contro controll across across the supply chain, all the way from raw material supplier’s right thro hrough to
t he
retail
shelf.
These
APS
pac packages
comple complemen mentt existi existing ng (but (but often often limite limited) d) ERP package packages. s. They enable consolidation of activities such as long term budgeting, monthly forecasting, weekly factory scheduling and daily distribution scheduling into one overall planning process using a single set of data
The major reasons behind the development of new trends are: >>Scalable and profitable Retail models are well established for most of the categories
>>Rapid Evolution of New-age Young Indian Consumers
>>Retail Space is no more a constraint for growth
>>Partnering among Brands, retailers, franchisees, investors and malls
>>India is on the radar of Global Retailer Suppliers Software’s REM, SAP
- 83 -
Objective of the Project Primary Objective
The primary objective was to know the supply chain of a retail store in practical
Secondary Objective
1. To identif identify y the the perform performance ance of of store store operations. operations.
2. To understa understand nd the the quality quality of servic services es maintai maintained ned in the store.
3. To determ determine ine the the perform performanc ancee of sales sales person personss in the store.
4. To underst understand and the the availabi availability lity of products products in the store.
5. To identif identify y the effectivene effectiveness ss of atmospheri atmospherics cs in the store. Not but least, every thing about Retail Store Operations in Practical
- 84 -
Methodology
Thee enti Th entire re repo report rt is based based on the the self self obse observ rvat atio ion n and and interviewing the staff of different departments.
The total time spent was 6 weeks and below is the detailed report of departments observed week wise.
1st week- Supply chain and Logistics.
2nd week- Visual Merchandisisng and HR
3rd week- Cashiering.
4th week- Inventory.
5th week- Customer Service.
6th week- Floor Sales.
- 85 -
FINDINGS
1.
Store performing well in attracting the customers.
2.
Discounts and offers doing well in the store.
3.
Toilet and and drinking water facility is not up to the
mark.
4.
In offer days the store management is good.
5.
Air conditioning and hygiene is good.
6.
Home delivery services are not good.
7.
Product display and signage is good.
8.
Quality in products is good.
- 86 -
9.
Achieving best finacail goals.
10.
Most satisfiyed employer.
- 87 -
RECOMMENDATIONS
1.
Manage home delivery services properly.
2.
There sh should be be pr proper as assortment of of va various
product categories. 3.
Proper signage should be there so that customer can
locate the products easily. 4.
Toilet and drinking water facility should be
maintained regularly. 5.
Proper training should be provided to sales person
so that they can deal with the customer efficiently. 6.
Various schemes and offers can be provided to them
and attract new customers. 7.
No. of cash counter needs to be increased keeping
in view customer traffic intensity. 8.
All the floor and Brand staff need to have better
communication skills. 9.
Alteration of of Ga Garments ha has to to be be do done ti time
effectively. 10.
Impulse merchandise needs to be increased.
- 88 -
CONCLUSION I have learned a lot from this project. After this project I have a fair knowle knowledge dge about about retail retail manageme management. nt.
This This
project has helped me a lot to know about the various aspect aspectss concer concerned ned with with retail retail field field which which people people rarely rarely know about like marketing strategies, promotions activities invo involv lved ed,, inve invent ntor ory y mana manage geme ment nt,,
cust custom omer er rela relati tion ons, s,
method of advertisement, services etc.
Most Mo st impor importa tant ntly ly afte afterr this this proj projec ectt I’m I’m able able to easi easily ly under underst stand and seve severa rall segm segmen ents ts of reta retail ilin ing g and and also also my observation skills have increased because I have observed many aspects during our project like the area of retail shop, design design of outlet outlet,, method method of stock stock keeping keeping,, promot promotion ional al activities involved and also the problems faced in this field.
Lastly I would like to thank the management and staff of their cooper cooperati ation on and suppor supportt BRAND FACTORY FACTORY for their with withou outt whic which h this this would would not not have have been been poss possib ible le and and successful.
Also Also I would would like like to thank thank our Guid Guidee
who gave gave us this this
golden opportunity which has proved to be very helpful and will guide us throughout our career.
- 89 -
BIBLIOGRAPHY Books Referred
Retailing Management(Swapna Pradhan)
Retailing Management(Michael levy,Ajay pandit,Barton A weitz)
It Happened in India (Kishore Biyani)
India Retail Report 20009
Websites Referred www.pantaloon.com www.scribd.com www.goolge.com www.imagesretail.com
- 90 -
- 91 -
