MERA GAON MERA DESH (Rural Retail)

PRESENTED BY:RAKESH JHA

March 9, 2013

CONTENTS
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D E F I N I N G R U R A L I N D I A R U R A L R E T A I L S C E N A R I O I N I N D I A R E G U L A T I O N S A N D P O L I C I E S I N

RURAL RETAIL S I G N I F I C A N T P L A Y E R S 1.GODERJ ADHAR 2.ITC -CHAUPAL 3.HARIYALI KISAN BAZAAR B U S I N E S S M O D E L O F I T C I M P E D I M E N T S & R E C O M M E N D A T I O N S
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DEFING RURAL INDIA!!

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CENSUS OF INDIA DEFINES RURAL SETTLEMENTS AS......

POPULATION LOWER THAN 5,000 PERSONS POPULATION DENSITY LOWER THAN 400 PERSONS/SQ. KM AT LEAST 75% OF MALE POPULATION ENGAGED IN AGRI. ACTIVITIES.
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RURAL SCENARIO
R E T A I L T O W A R D S R U R A L A R E A S G R E A T O P P O R T U N I T I E S F O R M A R K E T E R T H E I N D I A N R U R A L M A R K E T

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THE INDIAN RURAL MARKET

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The Rs 140,000 crore rural retail market is expected to cross Rs 180,000 crore mark by 2010, And up to Rs 240, 000 crore by 2015 (CII).

The rural revolution is driven by

Rising purchasing power, Changing consumption patterns,

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Contd
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INCREASED ACCESS TO

INFORMATION AND COMMUNICATION TECHNOLOGY,

IMPROVING INFRASTRUCTURE INCREASED GOVERNMENT

INITIATIVES TO BOOST THE RURAL ECONOMY ,

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RURAL OCCUPATION
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OCCUPATIONS

URBAN

RURAL

Cultivator
Petty Shopkeeper Wage earner Salary earner Others

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15 20 40 18

40
5 35 20 8
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THE RURAL CONSUMER

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I S A V A L U E S E E K E R S E E K S C O M F O R T S A N D A M E N I T I E S DOES NOT WISH TO BE SEEN AS THE

DEPRIVED COUSIN. DOES NOT EXPERIMENT EASILY BUT THIS DOES NOT MEAN THAT HE WOULD NOT CHANGE. V A L U E S L O C A L R E L A T I O N S H I P S BECAUSE OF UNFAVOURABLE PAST EXPERIENCES
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SIGNIFICANT PLAYERS
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G O D R E J A D H A R I T C - C H A U P A L H A R I Y A L I B A Z A A R

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Godrej Aadhar:
10 FORMAT OF GODREJ ADHAR FMCG PRODUCTS, FERTILIZERS, ANIMAL FEED, ETC. SERVICES LIKE BANKING, INSURANCE, PHARMACY, POSTAL SERVICES AND PETROL PUMPS

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A COMPLETE SOLUTION PROVIDER FOR THE INDIAN FARMERS

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SERVICES OFFERED CROP ADVISORY SERVICES, SOIL & WATER TESTING SERVICES; BUY BACK OF OUTPUT, CROP FINANCE, SUPPLY OF AGRI INPUTS AND ANIMAL FEEDS, TRANSFER OF INFORMATION (WEATHER, PRICE, AND DEMAND SUPPLY), DOOR DELIVERY OF PRODUCTS ETC.
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OPERATIONS

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24 OUTLETS IN EIGHT RURAL LOCATIONS ACROSS THE COUNTRY AND EACH OUTLET SERVICES 20 VILLAGES IN ITS VICINITY
G O D R E J A A D H A R H A S A L R E A D Y F O R G E D J V S

WITH APOLLO PHARMACY, TATA AGRICO, BAJAJ ALLIANZ LIFE INSURANCE AND HPCL FOR VALUE ADDED SERVICES AT THE OUTLETS.
T H E C O M P A N Y P L A N S T O S E T U P M O R E

THAN 1,000 STORES BY 2010.

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HARIYALI KISAN BAZAAR

(DSCL Corporation) DCM Shriram Consolidated Limited
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THE TRUSTED RURAL BUSINESS HUB

HELP THE CUSTOMER INCREASE HIS INCOME, EDUCATE THE CUSTOMER, BEFORE YOU SELL TO THE CUSTOMER

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Hariyali Kisaan Bazaar

14 MR. AJAY SHRIRAM, CHAIRMAN MR. VIKRAM SHRIRAM, VICE CHAIRMAN & MD THE CONCEPT AIMS TO SIMPLIFY THE
PRIVATE LABEL SEEDS CONTRACT FARMING VEGETABLES

PROCUREMENT

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Hariyali Kisaan Bazaar

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D S C L P L A N S T O E X PA N D T O 2 5 0 - 3 0 0 O U T L E T S B Y T H E E N D OF FY 2008-09.

EACH STORE COVERS AN AREA OF 3-4 ACRES AND IS MANAGED BY A TEAM OF 7-8 PEOPLE WHOM THE COMPANY TRAINS CONTINUOUSLY.
IT OFFERS THE RURAL HOUSEHOLD ALL FARMING AND CONSUMER PRODUCTS AND RELATED SERVICES ALONG WITH FINANCIAL SERVICES UNDER ONE ROOF. THE COMPANY ALSO LAUNCHED CREDIT SERVICES DURING ITS SECOND QUARTER 2007-08, IN ASSOCIATION WITH HDFC BANK, PROVIDING LOANS FOR VARIOUS PURPOSES.
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Triggering Rural economy Creates Purchasing Power by focusing on increasing Income Levels

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Enabling implementation of New Technology in Agriculture

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Giving the Customers the right to choose

THE NUMBER OF HARIYALI OUTLETS NOW STANDS AT 177, WHICH THE COMPANY PLANS TO SCALE UP AGGRESSIVELY TO AROUND 300 OUTLETS BY MARCH 2009. LAUNCHED IN 2002 -03 18 HARIYALI IS NOW PRESENT IN 8 STATES ACROSS INDIA

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E CHAUPAL
ITC Limited
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E-CHAUPAL
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THIS CONCEPT AIMS TO

PROVIDE THE POWER OF EXPERT KNOWLEDGE TO EVEN THE SMALLEST FARMER 2. INFORMATION HELPS FARMERS SECURES BETTER PRICE, QUALITY AND PRODUCTIVITY

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E Choupal
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BENEFITS TO FARMERS INCLUDE

BETTER PURCHASE PRICE OF AGRI-INPUTS AVAIL INFORMATION ON BEST FARMING PRACTICES COMMAND PREVAILING MARKET PRICES

4 M I L L I O N F A R M E R S B E N E F I T E D T H R O U G H 6 , 5 0 0

INSTALLATIONS COVERING AROUND 40,000 VILLAGES B Y 2 0 1 2 , I T C V I S I O N I S T O C O V E R 1 0 0 T H O U S A N D V I L L A G E S , WHICH REPRESENT 1/6TH OF RURAL INDIA, AND CREATE MORE THAN 10 MILLION E-FARMERS
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BUSINESS MODEL
(CHAUPAL SAGAR)
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IDEA BEHIND CHAUPAL SAGAR

-- MAKE THE POTENTIAL CUSTOMERS --PROVIDE DIFFERENT CUSTOMER SERVICES --REAP THE BENEFIT FROM POTENTIAL CUSTOMER

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FACILITIES AT CHAUPAL SAGAR

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A W I D E R A N G E O F P R O D U C T S F O R A L L S E G M E N T S T R A I N I N G F A C I L I T I E S F O R F A R M I N G C O M M U N I T Y O N

SCIENTIFIC FARMING PRACTICES

G O D O W N S F O R S T O R A G E O F F A R M P R O D U C E I N F O R M A T I O N C E N T E R F O R O N L I N E W E A T H E R

INFORMATION
C O N T I N O U S S E R V I C E S F R O M 6 A M - 9 P M

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FUTURE PLANNING
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E S T A B L I S H M E N T O F A T M S A T

MALLS

A V A I L I B I L I T Y O F I N S U R A N C E P R O D U C T S F O R F A R M E R S T I E W I T H P R I V A T E H E A L T H C A R E S E R V I C E P R O V I D E R

FOR PRIMARY HEALTH CARE FACILITY

T I E W I T H B P C L F O R F U E L P U M P S

E S T A B L I S H M E N T O F S O I L T E S T I N G L A B O R A T R I E S P U B L I C E N T E R T A I N M E N T

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Rural Business Challenges

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INCREASING COSTS OF LAND PACE OF EXPANSION HIGH OPERATING COSTS LOW MARGIN OF AGRI-INPUTS LOW PURCHASING POWER OF CONSUMERS

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CONT
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LACK OF LITERACY AND AWARENESS LOW PER CAPITA INCOME WIDE GEOGRAPHIC SPREAD. GAPS IN ROAD AND TELECOMMUNICATIONS CONNECTIVITY. LACK OF RELIABLE ELECTRICITY AND WATER SUPPLY LIMITED DISTRIBUTION NETWORK FOR EXAMPLE COLD STORAGE. COMPETITION FROM LOCAL PLAYERS
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Recommendations
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Integration of rural initiatives into business model like ITC Corporate should supplement government efforts & resources (infrastructure development, education system, storage) Creating retail stores which should be rural in nature so that the rural masses identify themselves with these stores. Innovative & Exciting Initiatives such as Village BPO should be given impetus to tap the talent in the rural India.
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During the first millennium AD, merchants referred to India as the Bird of Gold, due to the glittering 28 dynamism of its market. Over the next few years, the Bird of Gold is poised to take flight once again.

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THANK YOU
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March 9, 2013