oslLlves of lul ln

8eLall on Cu[araL
SLaLe
resented to
rof koopa kao
resented by
Shah Va|bhav
Sree|ekha kabara
Sheth Anar
Son| kruna|
1hacker Sh|vang
@e blg fussover
lul ln lnulAn 8L@AlL
lndlan CovernmenL
(comprlsed of a coallLlon of pollLlcal parLles called Le uA)
as announced
100 lul ln slngle brand reLall
31 lul ln mulLlbrand reLall
@ls declslon as lnvoked a ue and
cry all over
W pposlLlon pollLlcal parLles SL Le
governmenL and LreaLen Lo S@ALL Le
arllamenL WlnLer Sesslon
W Lven pollLlcal leaders wlLln Le rullng uA
governmenL ulvluLu on Le lssue
eg kerala CMWesL 8engal CM MamLa 8aner[ee 8ames
CennlLala uMk Leader karunanldl and oLers
Clobal 8eLall ls a $14 Lrllllon lndusLry
Source LLp//wwwclearwaLercfcom/documenLs/secLors/lMA_8eLall_8eporL_2010pdf
lndlan 8eLall Scenarlo
W @e 8s 18673 bllllon (uS$ 401 bllllon) lndlan
reLall markeL ls only 3 per cenL of Clobal
reLall
Source LLp//wwwlbeforg/lndusLry/reLallaspx
W f Lls only 6ls
organlsed reLall as of
2010
- @e resL 94remalns
unorganlzed
WaL we call klrana SLores
'momandpop' sLores
people selllng on fooLpaLs
and so on
W 8uL surprlslngly lndlan reLall secLor accounLs for 22of Le
counLrys gross domesLlc producL (Cu) and conLrlbuLes Lo
per cenL of Le LoLal employmenL
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CurrenL SlLuaLlon of lul ln 8eLall
W At present S1 IDI |n s|ng|e brand reta|| |s
a||owed |n Ind|a
US5 444S m||||on have been rece|ved const|tut|ng
bare|y 003 of tota| IDI |nf|ows
G|oba||y s|ng|e brand reta|| fo||ow a bus|ness mode|
of 100 ownersh|p and g|oba| ma[ors have been
re|uctant to estab||sh the|r presence |n a restr|ct|ve
po||cy env|ronment
1he current cap of S1 confers a r|ght to pass a||
ord|nary reso|ut|ons wh||e enhanc|ng cap to 100
w||| confer fu|| ownersh|p and contro|
lgllgLs of Le ollcy
W Iresh agr|cu|tura| produce |nc|ud|ng fru|ts
vegetab|es f|owers gra|ns pu|ses fresh
pou|try f|shery and meat products may be
unbranded
W M|n|mum Amount 1o 8e 8rought In As IDI
8y 1he Iore|gn Investor Wou|d 8e US 5 100
M||||on
W At Least S0 Cf 1ota| IDI 8rought In Sha|| 8e
Invested In 8ackend Infrastructure
lgllgLs of Le ollcy
W At |east 30 of the procurement of
manufactured] processed products sha|| be
sourced from sma|| |ndustr|es
W keta|| sa|es |ocat|ons may be set up on|y |n
c|t|es w|th a popu|at|on of more than 10 |akh as
per 2011 Census on|y S3 c|t|es qua||fy for IDI |n
mu|t|brand reta|| out of near|y 000 towns and
c|t|es
W Government w||| have the f|rst r|ght to
procurement of agr|cu|tura| products
lgllgLs of Le ollcy
W In respect of proposa|s |nvo|v|ng IDI beyond
S1 30 sourc|ng wou|d mandator||y have
to be done from SMLs] v|||age and cottage
|ndustr|es art|sans and craftsmen
Ma[or 8rands LxpecLed Lo lnvesL
WaL ls Le currenL sLaLe of our reLall
lndusLry?
athet|c cond|t|on of supp|y s|de channe|s
of the ex|st|ng un]organ|zed reta|| |ndustry as
we|| as Governmentrun ub||c D|str|but|on
System
1h|s |s an |mportant factor contr|but|ng to
|nf|at|on
ubllc ulsLrlbuLlon SysLem (uS) ls almosL
defunct WlL gralns roLLlng away / eaLen by
mlce
Iood wasted |n ICI godowns cou|d have fed 2S00 |acs
fam|||es for 10 years!!!
W A fresh est|mate from the m|n|stry of food
process|ng says a whopp|ng ks S000 crore
worth of agr|cu|ture food |tems get wasted |n
the country every year
W 1hat's a|most S0of the tota| annua|
agr|cu|tura| produce!!
Cu[araL
W G|oba| Investment o||cy Io||owed by Gu[arat
W Inv|t|ng Iore|gn Investors |n any sector poss|b|e
Investment fr|end|y po||cy
W Current Ch|na v|s|t of CM Narendra Mod| sa|d
"6ujorot represents o very different mode/ of
qrowth 6ujorot is uifferent from kest of lndio"
lmpacL of ollcy on Cu[araL
W Iore|gn Investors can open supermarkets |n
Ahmedabad 8aroda Surat ka[kot as per
the o||cy norms
W Var|ous keta||s out|ets have been opened
across Ind|a and Gu[arat
W C|osure of Var|ous ma||s and keta||s out|ets
as of |ow response or not do|ng we||
oslLlve lmpacLs
W Gu[arat| eop|e are know for purchas|ng |ow cost
products and they wou|d get |t
W Var|ety of opt|ons wou|d be ava||ab|e to consumers
W Cvera|| Compet|t|on |n markets so benef|c|a| to
consumers
W 8etter ua||ty Goods
W Cvera|| advantage to farmers and other SML to get
better pr|ce
W Cvera|| Iobs and emp|oyment
W Change |n ||festy|e of peop|e
W No craz|ness of fore|gn products
oslLlve lmpacLs
W Iore|gn keta|| Ma[ors nave Ga|ned Decades
Cf Lxper|ence 1echno|og|es And
Management ract|ces Wh|ch W||| Lnsure
Supp|y Cha|n Lff|c|enc|es
W 1he open|ng up of Mu|t| 8rand keta|| w||| a|so
have a sa|utary |mpact on food |nf|at|on as |t
wou|d contr|bute to sav|ngs to the food
wh|ch per|shes on account of |nadequate
|nfrastructure
oslLlve lmpacLs
W In the present d|spensat|on there |s a comp|ex
cha|n of procurement |nvo|v|ng severa|
m|dd|emen IDI |n reta|| w||| create the enab||ng
env|ronment wh|ch w||| ensure d|rect
procurement at |east of hort|cu|tura| produce
from farmers to enab|e them secure
remunerat|ve pr|ce
Ma[or Crops Wheat 8a[ra k|ce Ma|ze Groundnut
Mustard Sesame Green Gram Gram Cotton
Sugarcane Mango 8anana Sapota L|me Guava
1omato otato Cn|on Cum|n Gar||c Isabgu|
W Lmp|oyment Cpportun|t|es In Agroprocess|ng
Sort|ng Market|ng Log|st|c Management And
1he Irontend keta|| 8us|ness
no lmpacL Lo @raders and klrana SLores
W #Wh||e |ow pr|ce guarantee |s the attract|on
of ma||s a ma[or|ty of customers are ready to
go to the k|rana stores because of the cred|t
fac|||t|es and the |eve| of persona||zed
serv|ce'
W k|rana stores have a very strong "know|edge
|nt|macy" w|th the|r customers
Consumer 8eavlor ln lndla Cu[araL
W Ind|an consumer does dr|ve to the outsk|rts
of the c|ty |n car at the end of each month to
purchase month|y grocer|es
W 1hey somet|mes goes to ma||s for the thr|||
but most|y purchases from unorgan|zed
sector
W Ind|an consumer |s |nherent|y sav|ngs
or|ented and does not ||ve on cred|t un||ke
the typ|ca| Amer|can ] Luropean consumer
k|rana Stores can a|so buy from Ma||s at a
Who|e Sa|e r|ce and can save on overa||
storage cost and earn more prof|ts by buy|ng
better qua||ty goods to the consumers
ence Malls klrana SLores can coexlsL
Concluslon
W Cvera|| o||cy |s 8enef|c|a| to Ind|a and Gu[arat
W Cn|y fuss |s about the Vote 8ank o||t|cs be|ng
p|ayed
W Its on the d|scret|on of the State to a||ow IDI or
not so |f |mp|emented Gu[arat Government
shou|d a||ow IDI |n keta||
W Cvera|| |t has pos|t|ve Impacts on each Industr|a|
Sectors and D|fferent C|asses among the masses
W If not as of po||t|ca| cond|t|ons po||cy may not be
|mp|emented but |n future |t |s sure to come