Presented by: Ashish Garg Abhilasha Kitty Kanchan Gupta Ranu Sitani Barun Anand

We never created a group identity in the past.we can not be known as pantaloon. It was originally a trouser brandKishore Biyani

Mid 1980s PRIL begin as a trouser manufacturer March 2006 Pantaloon Group renamed as Future Group

Future Group Divided into six verticals

23rd May 2006- PRIL announced an agreement to form joint venture with Italy based Generali Group with 26% stake.

Future Group planned to operate its insurance and other financial services such as banking, personal finance through its financial arm Future capital and Deccan chronicle Restructuring of Pantaloon group to consolidate the group leadership position and diversify into new growth areas in Indian Retail.

Drivers of growth in Indian Retail Sector:

Rising income Increased exposure to global products Indian attitude towards saving and consumption Better infrastructure facilities Greater employment generation

The history of PRIL can be traced to the mid 1980s when Biyani quit his family business to start manufacturing apparels. In 1987 PRIL was incorporated as Manz Wear Pvt. Ltd and manufactured readymade trousers under Pantaloons brand. In 1992 Manz Wear went public, and the name was changed to Pantaloon Fashions (India) Ltd.

After success of Pantaloon departmental stores encouraged it to come up with retailing formats such as Big Bazaar, Food Bazaar to retail food products.

In 2001 PRIL opened its first Big Bazaar, which had an area of 30,000 sq feet, in Kolkata.
The major USP of the Big Bazaar was low prices and the best price proposition being offered to consumers. As a part of its low pricing strategy the stores mainly focused on unbranded products.

Big Bazaar sold around 200,000 items at discounts ranging from 6% to 60%. In 2001, the first Food Bazaar store was set up in the Lower Parel region of Mumbai. These stores were designed based on PRILs understanding of the domestic needs of Indian housewives.

The caption used for promotion was- Ab Ghar Chalaana Kitna Aasaan.
Food Bazaar was performing well when compared to competitors like FoodWorld, Subhiksha and Margin Free.

It was reported Food Bazaar generated Rs. 2 billion in gross revenues. It was reported that Food Bazaar stores achieved a cash break even in the very first year of its launch, on the other hand it took 6 years to Food World. As of 2005, the Pantaloon Knowledge Group had 3.5 million sq.ft of retail space and over 100 stores across 25 cities in India. It employed more than 12,000 people and had a customer base of more than 120 million with a revenue of Rs. 10.73 billion (US$ 242 million).

Strength
Pioneer in the industry, largest market share and capitalization. convenience and a wide range of products all in one store Highly Strategic human resource management and development. It invests time and money in training people, and retaining them. Most trusted and respected brand by the consumers Being financially strong helps pantaloons retail India deal with any problems, ride any dip in profits and out perform their rivals

Weakness
Pantaloons does not function internationally, which has an effect on success, as they do not reach consumers in overseas markets. PRIL is the Worlds largest grocery retailer and control of its empire, despite its IT advantages, could leave it weak in some areas due to the huge span of control Each business line faces competition from specialty companies. Fashion segment, Shoppers Stop, Trent, Lifestyle. In Food business, Reliance Fresh, Spinach, Food World

Threats
Being number one means that you are the target of competition. Consumer lifestyle changes could lead to less of a demand for pantaloons retail India products/services Price wars between competitors, price cuts and so on could damage profits for pantaloons retail India. 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 windowshopping.

Opportunities
Huge untapped market.
Organized retail is only 3% of the total retailing market in India. It is estimated to grow at the rate of 25-30% p.a. To take over, merge with, or form strategic alliances with other global retailers, focusing on specific markets New locations and store types offer PRIL opportunities to exploit market development.(Diversification into insurance , property, and variety of products and stores)

In March 2006:

Pantaloons renamed itself as Future Group The new group was set up to drive growth through consumer insights and scenario planning

Six business verticals

Future retail Future space Future brands Future media Future capital Future logisti cs

Verticals Verticals
Future Retail Future Retail Future Space Future Space Future Brands Future Brands Future Capital Future Capital

Description Description
Food & fashion Food & fashion Management of shopping malls & Management of shopping malls & real estate real estate Management of owned & licensed Management of owned & licensed brands brands Financial products & services Financial products & services

Future Media Future Media

Future Logistics Future Logistics

Focus on development & Focus on development & management of retail media management of retail media space space Deriving efficiencies through better Deriving efficiencies through supply chain management better supply chain management distribution distribution

Developed a B2b model

To strengthen its back-end supply chain sourcing capabilities. To reduce costs and to increase business volumes. Increased no. of departments from 16 to 28 with an average area of 20,000 square feet. Launched 2 fashion stations, 4 Big Bazaar hypermarkets and 6 new food bazaar stores. Able to generate a new market share in retail industry. Able to cater in different consumer segments.

Direct Access to Indian middle Class masses Strong Brand Name Strong Bargaining/Procurement Power Everyday low prices, which attract customers, and has a Huge investment capacity It offers a family shopping experience, where entire family can visit together. Wide presence in India covering almost all major cities and towns Available facilities such as online booking and delivery of goods.

Trying to address multiple Customer needs Stiff competition from global players means market share growth is limited Extremely popular means heavily crowded during festive/discount seasons

SWOT

Evolving customer preference in recent year Organized retail is minute in India Global expansion and tie-ups with international brands. Increase in Land value of Village people providing huge purchasing power.

Global players trying to enter into Indian market Low priced product could be perceived as low quality product Government policies are not well defined in country like India.

Jan 2005

PRIL acquired 68% stake in apparel company Indus League Clothing Limited (ILCL). The acquisition cost the company around 240.9 million. ILCL owned popular clothing brands like Scullers and Indigo nation.

Feb 2005

PRIL acquired 15.73% stake in Galaxy Entertainment Corporation at a investment of Rs. 88 million. Biyani said Leisure and entertainment account for over 6% of the aspirational consumer spent and is growing rapidly. Galaxy will fill that need for the aspirational customer

PRIL plans to acquire 49% stake in Planet Sports Pvt. Limited, a sports goods and apparel retailing company, for Rs. 142million.

Feb 2005

Planet Sports was the sole franchise in India for Marks and Spencers (UK based Retailer) It had distribution licensing rights for brands like Puma, Wilson, Speedo and Converse.

April 2005

Pantaloons food product( India)Ltd. Was incorporated as a subsidiary of PRIL with a 100% stake at an investment of Rs. 50 million. It was the main supplier of food products to its food bazaar stores.

PRIL stepped into retailing of footwear by forming a JV called foot mart India Ltd. With Liberty shoes Ltd. September PRIL holding 51% stake. it invested Rs. 127.5 million in the JV. 2005

January 2006

PRIL formed a JV with Gini and Jony Pvt. Ltd. For the purpose of setting up a retail chain for kids wear .

March 2006

PRILs subsidiary ILCL formed a JV with UK based Lee Cooper to distribute and sell Lee Cooper Brands at its retail outlets in India.

May 2006

PRIL form a JV with Italy based Generali to form a JV called Future Generali with 74% stake and an investment of Rs. 250 million
PRIL ventured into online retailing by launching its e-retail portal, futurebazaar.com New venture was part of Biyanis strategy to counter competition from leading e-commerce portals in India like eBay, Rediff, Fabmail, and Indiatimes

May 2006

June 2006

50:50 JV with Talwalkars Better value Fitness Pvt Ltd. For retailing health and fitness products and services.

August 2006

PRIL entered consumer durables retailing business by entering into a JV with Videocon Industries LTD.

New talent Professionalize the business Utilize the expert of highly qualified and experienced executives Senior level management Goldman sachs, coca cola, etc.

Recruit Sameer jain Sanjeev gupta Atul kapur Neeran chibber Roopa purushotham Shishir baijal

Previous post MD Goldman Sachs CEO Coco-Cola MD & Principal strategist of Goldman Sachs Ex-Bharti president & CEO Ex-Goldman Sachs chief economist & strategist Ex-Inox Leisure MD & CEO

Division CEO - FCH Indivision Indivision Communication products Head Creative research team, Future Capital PHF Investment Advisory

Low attrition rate (8.3%)

Welingkar institute of management development (mumbai) K. J Somaiya institute of management studies and research (mumbai) Institue for integrated learning in managemet (delhi) Business school (chennai)

Size of the Indian retail industry estimated at US$200 billion in 2006 For year ended June 30, 2006, PRIL reported a total income of Rs.18.72 billion as compared to Rs.10.88 billion in 2004-05 66.4% rise in net profit, i.e. Rs. 641.5 million for 2005-06 as against Rs.38.5 million in previous fiscal year Net profit of Rs.386.4 million for the quarter ended Sept. 30, 2006 (increase of around 186% over corresponding previous year)

Competition from domestic competitors like Shoppers Stop and Trent Ltd. PRIL could also face competition from foreign investors In Feb. 2006, Government allowed single brand retailing in India upto 51% In July, 2006, Wal-mart had received permission from Indian Government to set up two liasion offices in India Mr. Biyani was against allowing FDI in Indian retail sector

Share of organised Indian retailing was only 3% as compared to the total volumes in retail industry Future Group faced a more immediate threat from Reliance Retail Ltd. To counter competition, from Reliance and international retailers, Mr. Biyani had plans to enter into wholesale trading

Planned to open KBs Wholesale Market similar to Wal-Marts Sams Club

Plans to launch 18 formats and over 3,340 stores, turning PRIL into a US$7 billion company with over US$1 billion in profits by the year 2010

In Sept., 2006, Mr. Biyani planned to raise around 10 billion over next 18 months Rs.500 crore will be raised by divesting stake in some subsidiaries, also looking at a preferential allotment of around Rs.200 crore and a follow up issue of around Rs.260 crore Planned to split his business so that he could raise money separately from each business entity