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Executive Summary
Established in 1998, Trent operates Westside, one of India's largest and fastest growing chains of retail stores.
The founder of Westside, The Tata Group, is one of India's oldest, largest and
most respected business conglomerates and was founded by Jamsetji Tata in the
mid 19th century.

The Tata Group comprises 96 operating companies in seven business sectors -

Information systems and communications, Engineering, Automotive,
Materials, Services, Energy, Consumer products, Chemicals, with revenues
$21.9 billion (Rs 967,229 million) in 2005-06, the equivalent of about 2.8 per cent
of the country's GDP, and a market capitalization of $46.9 billion.

The company, Trent limited, has a turnover of Rs. 246.1 crore in FY 2004-2005 and currently operates 23 stores in
the major metros and mini metros of India.

Promising high-quality, the latest styles, an international shopping experience and

value for money, Westside has created a loyal following with its own brand of
merchandise. Westside stands out from the competition for a variety of reasons.
One is that a majority of the brands the chain stocks and sells are its own, unlike
retailers who store multiple labels. Almost everything at Westside is exclusively
designed for Westside. Boasting of a variety of designs and styles, the merchandise
at the Westside stores are a mix of stylized clothes, footwear and accessories for
men, women and children, table linens, artifacts, home accessories and furnishings.
About 90 per cent of Westside’s offerings are home-grown, and they cater to
different customer segments. The other 10 per cent includes toys, cosmetics and
lingerie.
Westside was named the 'Most Admired Large Format Retail Chain of the Year' by the Lycra Images Fashion Awards
2005.

Market Summary
Indian retail industry
Retail is the largest industry sector in the world, with the penetration of
retailing exceeding 80% of the population in the developed nations, and
40% in developing nations like Thailand, Indonesia, and Malaysia.
India’s forecasted economic growth of 8 percent of GDP in 2006 and one
billion strong population are the fundamental supporting factors of retail
industry in India. The Indian retail market is large, but highly fragmented
with very few large retailers, and is pegged at around Rs. 350 Billion in 2004-
05, is expected to be around Rs, 1,095 billion by the year 2010. With India’s top
five retailers accounting for only about 3-4% of modern retail, there is a huge
scope for organized retailing as most of the consumers are savvy and focused on
value.
The retail growth is estimated to be slightly higher than GDP growth at constant
prices. The penetration level of organized retail is expected to touch 8% by 2010.
The forecast growth in real retail sales in 2003-2008 is 8.3% per year
compared with 7.1% for consumer expenditure. Modernization of the
Indian retail sector will be
reflected in rapid growth in sales of supermarkets, departmental stores
and hypermarkets. Sales from large format stores are to expand at growth
rates ranging from 24% to 49% per year during 2003-2008. the recent
policy initiatives like allowing foreign companies to own up to 51
percent in single brand retailing has prompted many global single brand
retailers to enter India. The big multi brand retailers like Walmart, Tesco
and Carrefour which are basically discount or value retailers are mulling
joint ventures with Indian companies as they are not permitted to take
FDI route.

The Indian Retail Sector is at an inflexion point, with many enabling

conditions coming into existence like favourable demographics, rising
consumer incomes, real estate developments especially with emergence of
new shopping malls, availability of better sourcing options both from
within India and overseas, and
changing lifestyle that bring the Indian consumer closer to the consumers in
more developed markets and availability heightened usage of credit cards.
All these changes are driving growth of the organized retail sector.
Of the many categories that make up organized retail, food and grocery is the
biggest, accounting for a share of around 76%. However, in terms of penetration,
its share is the lowest at around 1%, footwear and clothing boast the highest
organized retail penetration.

Organized retail in India

ORGANIZED RETAIL IN INDIA

Others 10%
Clothing & textiles 36%
 Durables 10%

Footwear 13%

Category Total retail Organized

(2005-06) retail
Rs. Billion (2005-06)
Clothing 716 141

Footwear 104 32

Accessories 416 25

Food & grocery 14% watch & jewellery 17%

Where Westside Deals

MAIN OBJECTIVES OF THE COMPANY

MISSION

“At Westside our mission is to be regarded by our customers as the most relevant
retailer in the country.”

• To expand / strengthen the existing chain of Westside department stores and

the Star India Bazaar hypermarket stores to other cities, to consolidate their
position in the existing markets and to make in -roads into new markets.
• Achieve an 41% increase in sale

• Achieve higher increase in sales during the festival period

• To launch new product categories or new format of delivery or new brands

in order to meet the changing requirements of the customers
• Delivering an international shopping experience to customers
• To attain and maintain the leadership by being one of the top players in the
retail sector.
• The focus is to open Trent’s Rs. 104 crore acquisition of India’s largest
privately owned books and music landmark.
• To give best pricing to the customers and to win their loyalty.

• Upgrading the existing Westside stores and the Company infrastructure

Working Capital Requirements.

Factors Affecting Westside

Market proliferation
The growing India media sector has played a major role in the growth of the
organized retail sector, thereby, giving a good opportunity to Westside to
expand its roots and attracting customers. Consumers are constantly being
exposed to brand promotions and advertisements across product
categories through the various media channels resulting in increased
awareness and attraction towards Westside.

Literacy profile

65% of the Indian population is literate and this figure is expected to rise to
75% in 2010. This increase in the literate and professionally qualified
population, with increased spending power, also affects the choice and and
product demand, which is also reflected in the growth of retail industry. Today,
people think of their clothes as a lifestyle symbol and give a lot of importance
to brand as well as quality. They expect the best but that must be balanced with
value and quality.
Westside is providing both brand and quality in its products. So its popularity is
rising, as Westside is still in its growing stage not an established brand as yet.

Geographical factors

There has been a significant migration of population from rural to urban areas
in the past 10 – 12 years. People are moving from all over the country to the
commercial cities like Mumbai, Delhi, Chennai, Hyderabad, Kolkata. This
offered plenty of marketing opportunities for all product and service
organizations.
Westside has recognized this opportunity and is going ahead, opening its stores
in all metropolitan cities like Hyderabad, Delhi, Mumbai etc.

Economic Factors

Trends in prices of products

Inflationary trends in prices could pose a serious threat to firm’s survival. If the
prices of the raw materials, labour and utilities like electricity are showing
inflationary trends, the firm may have little option but to pass on this hike to the
consumer in the form of increased prices.

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