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 any ambiguity. The positions occupied by different individuals are presented in the form of organization chart. Organizational structure is essential for continuity of the mission and co-ordinates and controls the business activities. Origination helps management to perform its activities effectively, optimum use of technological improvement growth and diversification, creatively, effective use of physical resources and HR Need for the study This study is taken up to fulfill the requirement of BBA-Retail Operations UG course of SIKKIM MANIPAL UNIVERSITY. 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 understand the working of the various departments. To enable us to gain an insight into the corporate world. To understand the various responsibilities and duties carried out The study is aimed at understanding how an organization

by each department. practically works in a real situation. Scope of the study • • This report is based on the study conducted at BRAND It aims at understanding the company’s establishment,

FACTORY, Marathalli, Bangalore. organization structure, departments, techniques, marketing strategies and the advantages it is having over the competitors. • • An attempt is made to analyze the company’s performance in It aims to understand the skills of the company in the areas like comparison to the theoretical aspects. technological advancements, competition and in management. Limitations of the study • • • Time is the major constraint. As per the company rules many information was not disclosed. As the managers are busy in their schedules it is not possible for

us to spend more time in interaction and discussion with them.


Methodology adopted for the study • • Observing the working of various departments like finance, Discussion with the company executives, managers and

safety, human resources, production, purchasing etc. 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.


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 been predicted that the 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 consumer buying behavior and the whole format of shopping 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-

centers, and sprawling complexes which offer food, shopping, 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 nonbranded 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 unorganized, comprising of drug stores, medium, and small grocery


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 change in the consumer’s behavior. This change has come in 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 are being built. Many Indian companies are 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 invest US$ 6 billion in the Indian retail market by opening 1000 hypermarkets and 1500 supermarkets.


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. Indian organized retail market is increasing and for this growth to continue the Indian retailers as well as government must 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.


The growth of scope in the Indian retail market is mainly due to the change in the consumer’s behavior. For the new generation have preference towards luxury commodities which have 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 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 Entertainment 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 opportunities in the organized retail sector in 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 number of women are working, western influences, and more disposable income have opened a lot of opportunities in Indian organized retail sector. The Indian consumer wants to shop, eat and 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-

malls, and 1500 supermarkets are being built which shows 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.

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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 sector in India amounted to US$ 6.4 billion. By 2010, the Indian 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 retail sector in India by opening 1500 supermarkets and 1000 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. Such huge investments are also a factor in the growth of 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. The global retail giants who are entering the organized retail sector in India are: Wall- Mart Tesco Carrefour SA Metro AG

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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 consumers drastically. The evident increase in consumerist activity is colossal which has already chipped out a money 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 money. Nowadays the Indian consumers are well versed with 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 consumers are getting whiff of the latest national & international products, the with help of print & electronic media. The social changes with the rapid economic growth due to trained personnel’s, fast modernization; enhanced availableness of retail space is the 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

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Demographical changes and improvements in the standard of

living Change in patterns of consumption and availability of low-cost consumer credit • space • Entry to various sources of financing Improvements in infrastructure and enhanced availability of retail

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 supermarkets, and hyper marts. Even food retailing has 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 Indian food habits has been altered. This stores have earned 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.

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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 shadows of the unorganized retail sector, India has a chance of tremendous economic growth, both in India and abroad. The emerging trends in the Indian organized retail sector are also adding up to the development of the Indian organized retail sector. The relaxation by the government on regulatory controls on foreign direct investments has added to the process of the growth of the Indian organized retail sector. The infrastructure of the retail sector will evolve 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.

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The success of this retail sector would also lie in the degree 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 will undergo a transformation. At present the Foreign Direct Investments (FDI) is not encouraged in the Indian organized retail sector but once the TNC'S get in they inevitably try to oust their Indian counterparts. This would be challenging to the retail sector in India. The trends to follow in the future: • • • • The Indian Organized retail sector will grow up to 10% of total No one single format can be assumed as there is a huge The most encouraging format now would be the hyper marts. The hyper mart format would be further encouraged with the

retailing by 2010. difference in cultures regionally.

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.

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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 retail company like Nilgiri's of Bangalore, most of the retail 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 graded upcoming cities like Ahmadabad, Baroda, Chandigarh, 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.

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Hypermarket: It is the largest format in Indian retail so far is a one stop shop for the modern Indian shopper. Merchandise: food grocery to clothing to spots goods to books 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: Viswapriya Group’s Subiksha, Piramal’s TruMart, PRIL’s Brand factoty Specialty store: It consists of a narrow product line with 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: 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.

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Malls: The largest form of organized retailing today. Located mainly in metro cities, in proximity to urban outskirts. Merchandise: They lend an ideal shopping experience 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
• Foreign Direct Investment (FDI) to the extent of 100 per cent in Cash and Carry Wholesale formats. Franchisee arrangements are also permitted in retail trade. • Single Brand Products: FDI up to 51 per cent is permissible in the retail trade of single brand products subject to the following conditions. • • • Products to be sold should be of a 'Single Brand' only. Products should be sold under the same brand internationally. 'Single Brand' product retailing would cover only products,

which are branded during manufacturing.

Road Ahead; Plans of Large Retailers
• Reliance Retail: investing Rs. 30,000 crore ($6.67 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 RPG: Planning IPO, will have 450-plus Music World, 50-plus achieve Rs.9,000 crore-plus ($2 bn) sales by 2008. Spencer's Hyper covering 4 mn sq.ft by 2010. - 19 -

LIFESTYLE :Investing Rs.400 crore-plus ($90 mn) in next five

years on Max Hypermarkets & value retail stores, home and lifestyle centres. • Raheja's: Operates Shoppers' Stop, Crossword, Inorbit Mall, and 'Home Stop' formats. Will operate 55 "Hypercity" hypermarkets with US$100 million sales across India by 2015. • • Piramyd Retail: Aiming to occupy 1.75 million sq.ft retail spaces TATA (Trent Ltd.): Trent to open 27 more stores across its retail through 150 stores in next five years. 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 entry of the diversified Mahindra Group into 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 Enterprises Ltd. The other three groups are focusing either 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 Pantaloon Retail-Formats: Big Bazaar, Food Bazaar, Pantaloons, Central, Fashion Station, Brand Factory, Depot, aLL, E-Zone etc.

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The Tata Group-Formats: Westside, Star India Bazaar, Steel junction, Landmark, and Titan Industries with World of Titans showrooms, Tanishq outlets, Chroma. K Raheja Corp Group-Formats: Shoppers’ Stop, Crossword, Hyper City, in orbit Lifestyle International-Lifestyle, Home Centre, Max, Fun City and International Franchise brand stores. Pyramid Retail-Formats: Pyramid Megastore, TruMart Nilgiri’s-Formats: Nilgiri's’ supermarket chain Subhiksha-Formats: Subhiksha supermarket pharmacy and telecom 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 -

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 retailers to score over the unorganized 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 building competitive advantage through distribution & information systems in the retailing industry. They introduced two innovative logistics techniques – cross-docking and EDI (electronic data interchange) 2. On an average a super market stocks up to 5000 SKU's 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 been very low in the retail outlets in a mall as compared to 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%

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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 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 retail is only 3% of the total retailing 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 down : In India it has been found out that the top 6 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 experimenting with the farmers of 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. Cultural Variation leads to variation in merchandise in India at different geographical locations.

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Pantaloon Retail (India) Limited, is India’s leading retailer that operates multiple retail formats in both the value and lifestyle segment of the Indian consumer market. Headquartered in Mumbai (Bombay), 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, 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 Brand Factory, Blue Sky, aLL, Top 10 and Star and 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 Emerging Market Retailer of the Year 2007 at the World Retail 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 the consumption space. While retail forms the core business activity of Future Group, group subsidiaries are present in consumer finance, capital, insurance, leisure and entertainment, brand 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 across India. Headquartered in Mumbai (Bombay), Pantaloon Retail employs around 30,000 people and is listed on the Indian stock exchanges. The company follows a multi-format retail strategy 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.

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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, Hyderabad and Bangalore. The group’s specialty retail formats include, books and music chain, Depot, sportswear retailer, Planet Sports, electronics retailer, 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 financial arm provides investment advisory to assets worth over $1 billion that are being invested 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 include, Future Generali, the group’s insurance venture in partnership with Italy’s Generali Group, Future Brands, a brand development and IPR company, Future Logistics, providing logistics and distribution solutions to group companies and business partners and Future Media, a retail media initiative. - 27 -

The group’s presence in Leisure & Entertainment segment is 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 operates around 100 restaurants and food courts through brands like Bombay Blues, Spaghetti Kitchen, Noodle Bar, The Spoon, Copper Chimney and Gelato. Future Group’s joint venture partners include, US-based stationery products retailer, Staples and Middle East-based Axiom Communications. The group’s flagship company, Pantaloon Retail was awarded the International Retailer of the Year 2007, by the US-based National Retail Federation, the largest retail trade association and the the Emerging Market Retailer of the Year 2007 at the World Retail Congress in Barcelona. Future Group believes in developing strong insights on Indian 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.’

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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 socioeconomic development for our customers, employees, shareholders, 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 not just spot trends; we will set trends by marrying our understanding of the Indian consumer to their needs of tomorrow.

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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 Group shall deliver Everything, Everywhere, Every time for Every Indian Consumer in the most profitable manner.

Group Mission

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We share the vision and belief that our customers and stakeholders shall be served only by creating and executing future scenarios in 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 be efficient, cost- conscious and committed to quality 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 Introspection: leading to purposeful thinking. Openness: to be open and receptive to new ideas, knowledge and Valuing and Nurturing Relationships: to build long term Simplicity & Positivity: Simplicity and positivity in our thought,

in our conduct.

information. relationships. 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 incorporated as Manz Wear Private 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.

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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-Group moves beyond 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 Capital Holdings, the company’s financial is formed to manage over $1.5 billion in real estate, private equity and retail infrastructure funds. Plans forays into retailing of consumer finance products. Home Town, a home building and improvement products retail chain is launched along with consumer durables format, Ezone and furniture 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.

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Specialised companies in retail media, logistics, IPR and brand development and retail-led technology services become operational. Pantaloon Retail wins the International Retailer of the Year at US-based National Retail Federation convention in New York and Emerging Retailer of the Year award at the World Retail Congress 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 Group acquires rural retail chain, Aadhar present in 65 rural locations.

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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 of Indian bazaars with aspects of modern retail like choice, convenience and quality. This was followed by a number of other 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. Kishore Biyani advocates ‘Indianness’ as the core value 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 Lucknow Young Business Leader Award by Prime Minister, Dr. Manmohan Singh in 2006. He was also awarded the CNBC First Generation Entrepreneur of the Year 2006. Kishore Biyani was born in August, 1961 and is married to Sangita and they have two daughters. He recently authored a book, ‘It Happened In India’ that captures his entrepreneurial journey and the growth 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 -


Affiliate Companies
Home Solutions Retail (India) Limited Home Solutions Retail (India) Limited (HSRIL) offers complete retailing solutions for all products and services related to home building and home improvement. The key product categories are Consumer Durable & Electronics (CDE), Furniture, Home furnishing & 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 involved in the business of creating, developing, managing, 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 consumption and thus offers active engagement to brands and consumers. FMIL offers relevant engagement through its media 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.

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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 Knowledge Services Limited (FKSL) was incorporated on January, 2007 and is engaged in the business of business process outsourcing and knowledge process outsourcing. Future Capital Holdings Limited Future Capital Holdings Limited (FCH) was formed to manage the financial services business of Pantaloon Retail (India) Limited and other group entities. FCH is one of the fastest growing financial services company in India, with presence in Asset Advisory, Retail Financial Services and Proprietary Research.

The company 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 Investment Advisory Company Ltd., Ambit Investment Advisory Company Ltd., and Indivision Investment Advisors Ltd. Future Generali India Insurance Company Limited

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Future Generali India Insurance Company Limited (FGIICL) was incorporated on October 30, 2006 to undertake and carry on the business of general insurance. The approval for carrying on General Insurance Business has been received from the Insurance Regulatory 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 incorporated on October 30, 2006 to establish and conduct the 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

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Future bazaar India Limited (FBIL) is set up as the e-Retailing arm of the Future Group for providing on-line shopping experience. 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, by the PC World Indian Website Awards. Staples Future Office Products Private Limited

Staples Future Office Products Private Limited (SFOPPL) 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.

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- 44 -


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 provide customers with a streamlined, efficient and world class personalized shopping experience, which will be supported with the best technology platform.

Brew Bar

The Brew Bar is a classy and refined; yet reasonable an egalitarian a bar with loads of bonhomie!

Cafe Bollywood

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Indian street food but with assurance of highest levels of hygiene and quality. Chamosa

Chamosa is a branded chain, which sell the local Indian snack combination of tea and samosas. Food Bazaar

Life is all about good taste and food bazaar aims to ensure the same. With the low prices, a wide selection of products and guaranteed freshness, you are bound to find it irresistible.

Sports Bar

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A bistro focused on the world of sport, the Sports Bar is complimented with an unrivalled ambience.


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

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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

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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 offers the entire range of lifestyle products in fashions category for young men and ladies. Navaras

Navaras is a fine 22 carat pure gold and diamond jewellery brand, retailed from Big Bazaar stores. - 50 -


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




sports and lifestyle specialty retail chain, Planet Sports offers the largest collection of international sports and lifestyle brands.

Home Solutions

A one-stop destination for every need of the aspirational Indian homeowner, Home Town, brings together a vast range of products and services under one roof.

- 51 -


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

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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'.


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 -

Navaras is a fine 22 carat pure gold and diamond jewellery 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 FairPrice are simple but modern, self service ration shops or neighborhood stores, spread across an average area of 1,000 to 1,500 sq.ft. Shoe Factory

A value format, to the core, Shoe Factory brings with it a fresh experience in footwear retailing.

Leisure & Entertainment

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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

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At Fit & Healthy our focus is on helping you stay healthy by providing access to the best allopathic, ayurvedic and homeopathic medicinal 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.

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The operating results of the Company for the year under review are as follows:
(Rs. in Crores) 2008-2009 Sales (Net of Taxes) Operating Income Other Income Total Income Profit before Depreciation & Tax Less: Depreciation Profit before Tax Less: Earlier Year’s Income Tax Less: Provision for Taxation Profit after Tax Add: Profit brought forward from previous year Surplus available for appropriation APPROPRIATION Proposed Dividend Provision for Dividend Tax 11.58 1.97 10.67 1.81 6,103.70 238.35 6.06 6,347.76 356.28 140.05 216.23 (0.27) 75.38 140.58 267.56 408.14 2007-2008 4,776.33 272.58 3.76 5052.67 279.01 83.39 195.62 (0.03) 69.68 125.97 215.76 341.73

- 59 -

Transfer to General Reserve Balance carried to Balance Sheet

14.05 380.81

12.60 316.65

Financial Performance Cost of Goods Sold / Net Sales Manpower Costs / Total Income Advertising and Selling Cost / Total Income Interest / Total Income PBDIT/ Interest (Debt-Service Ratio) Jun-05 66.52% 4.80% 3.08% 2.60% 3.42 Jun-06 66.53% 5.99% 2.72% 1.97% 4.05 Jun-07 69.36% 6.19% 2.80% 2.70% 3.43 Jun-08 69.56% 5.42% 2.34% 3.67% 2.51 Jun-09 69.85% 4.32% 1.80% 5.01% 2.12

Profitability PBDIT / Total Income PBDT / Total Income Net profit / Total Income RONW (PAT / Average Net Worth)

Jun-05 8.89% 6.29% 3.65% 24.42%

Jun-06 7.99% 6.02% 3.43% 17.15%

Jun-07 9.24% 6.55% 3.60% 14.82%

Jun-08 9.19% 5.52% 2.49% 8.57%

Jun-09 10.63% 5.61% 2.21% 6.83%

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ROCE (PBDIT / Average capital employed)






Balance Sheet Debt-Equity Ratio Debtors Turnover (Days) Inventory Turnover (Days) Current Ratio Quick Ratio Asset Turnover (Total Income / Total Assets)

Jun-05 1.29 4 94 1.73 0.55 2.03

Jun-06 1.14 3 98 1.44 0.58 1.62

Jun-07 1.19 7 99 2.19 1.08 1.36

Jun-08 1.19 8 102 1.71 0.78 1.23

Jun-09 1.25 10 101 1.97 0.75 1.21

Key Finacial Parameters (Rs in Crores) Total Revenue Profit Before Interest, Tax and Depreciation Profit After Tax Cash Profit

Jun-05 1,055.85 93.91 38.55 58.90

Jun-06 1,871.97 149.64 64.16 99.85

Jun-07 3,328.77 307.63 119.99 184.78

Jun-08 5,052.67 464.28 125.97 246.64

Jun-09 6,347.77 674.50 140.58 328.88

Per Share Data Basic Earnings (less Extraordinary Income) Basic Cash Earnings(Rs.) Dividend (Rs) Book Value (Rs)

Jun-05 3.31 4.45 0.50 20.12

Jun-06 5.06 6.70 0.50 39.20

Jun-07 8.71 11.39 0.50 74.42

Jun-08 7.54 14.76 0.60 111.96

Jun-09 7.94 18.58 0.60 118.20

- 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 -

Rs. in Crores. Banalce Sheet as at Sources of Funds Equity Share Capital Share Application Money Reserves & Surplus Warrant Application Money Shareholders Fund Deferred Tax Liability Secured Loans Unsecured Loans Total Loans Total Liabilities 12.52 13.07 25.59 31.61 2.73 34.34 59.93 13.32 22.75 36.07 17.32 36.68 54.00 1.79 18.18 49.50 67.68 2.92 141.32 4.23 145.55 216.15 19.14 75.75 94.89 6.03 214.76 21.36 236.12 337.04 22.00 196.53 3.00 221.53 13.04 256.17 30.04 286.21 26.88 29.35 0.01 31.86 38.06 Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09

500.02 1,062.82 1,751.50 2,211.48 63.26 22.88

526.90 1,092.18 1,846.62 2,272.42 27.92 428.10 173.29 55.84 67.84 116.10

68.22 109.53 1.42 0.30

951.93 1,991.77 2,525.53 347.65 200.01 324.86

69.64 109.83 105.71 165.62

601.39 1,299.58 2,191.78 2,850.39

520.78 1,156.20 2,447.60 4,106.24 5,238.90

Application of Funds Gross Block Depreciation Net Block Capital WIP NB + CWIP Investment Current Assets Inventories Debtors Cash & Bank Balance Loans & Advances Other Current Assets Total Current Assets Current Liabilities Creditors Other Current Liabilities Provisions Total Current Liabilities 12.41 9.66 1.96 24.03 13.75 12.04 0.98 26.77 23.82 22.05 1.23 47.10 17.64 44.44 4.40 66.48 13.58 52.91 6.95 73.44 78.69 48.39 17.74 144.82 136.08 93.73 15.62 245.44 223.72 120.15 15.71 359.58 310.40 309.68 17.58 637.66 385.38 506.01 20.46 911.86 37.19 10.05 2.28 6.01 55.53 56.33 12.98 2.38 11.10 87.41 17.69 4.03 23.33 114.38 22.32 8.07 21.43 166.21 157.60 17.58 13.85 40.95 229.98 275.93 12.31 21.50 93.68 0.46 403.87 507.02 17.03 21.77 297.57 1.09 885.96 1,429.84 1,787.84 65.17 162.97 633.85 1.50 113.16 121.10 177.25 109.34 21.24 3.61 17.63 9.85 27.48 0.07 41.24 5.22 36.01 7.86 43.87 5.07 77.72 9.43 68.29 6.28 74.57 5.07 122.98 15.67 107.31 3.32 110.63 5.26 184.71 24.32 160.39 14.44 174.83 5.26 251.10 37.36 213.74 15.79 229.53 31.92 366.01 56.58 309.43 86.06 395.49 161.67 767.07 1,368.76 1,876.45 92.47 170.59 307.69

674.60 1,198.17 1,568.76 131.13 330.64 345.23

805.73 1,528.81 1,913.99 252.01 586.52 954.03

962.32 1,202.56 2.16 5.75

82.78 132.46

844.48 1,749.45 2,628.58 3,282.74

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Net Current Assets Misc. Expenditure Total Assets

31.50 0.89 59.93

56.01 0.76

85.36 0.63

99.73 0.53 216.16

156.54 0.40 337.04

259.05 0.28

599.04 1,389.86 1,990.91 2,370.89 -

105.71 165.62

520.78 1,156.20 2,447.60 4,106.24 5,238.90

- 66 -

P ro fit& Loss Account as at Sales & O perating Income Other Income Total Income Cost of Goods Cons. & Sold Labour Charges Packing Materials Power Excise Rent Personnel Cost Advertisement Expenses Transportation Expenses Sales Tax Misc. Expenditure Total Cost P B D IT Finance Charges PBDT Depreciation PBT Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09

137.28 0.66 137.94 97.19 5.17 0.76 1.03 3.08 4.18 2.98 1.08 1.85 9.22 126.53 11.41 5.07 6.33 1.07 5.27

180.58 0.44 181.02 117.98 8.28 1.24 2.02 0.43 6.18 6.81 6.05 1.73 3.55 12.00 166.27 14.74 6.22 8.52 1.63 6.89

285.29 0.67 285.96 186.11 6.51 2.11 5.34 4.58 10.03 13.59 8.77 2.72 5.26 17.96 262.98 22.98 11.24 11.74 4.22 7.53

444.83 0.79 445.62 303.50 6.77 3.10 7.94 3.40 15.71 19.13 11.83 3.43 7.75 24.88 407.44 38.18 17.67 20.51 6.35 14.16

658.31 1,052.80 1,868.97 3,236.74 5,048.91 6,341.70 1.33 3.05 3.00 92.03 3.76 6.06

659.64 1,055.85 1,871.97 3,328.77 5,052.67 6,347.76 438.01 6.97 5.64 12.08 3.36 27.59 27.53 18.75 5.95 14.91 41.72 602.50 57.14 23.94 33.20 8.79 24.41 700.31 1,243.43 2,245.05 3,512.19 4,429.95 15.27 12.44 21.95 0.28 47.97 50.65 32.56 12.66 67.84 20.66 19.22 37.41 113.46 112.07 50.96 19.08 106.03 14.62 27.80 61.51 207.01 206.09 93.14 165.92 21.28 40.40 78.20 326.27 274.07 118.28 217.70 282.56 405.76 274.26 114.23 15.79 51.74 98.97 -

961.94 1,722.34 3,021.14 4,588.39 5,673.26 93.91 27.46 66.46 13.33 53.12 149.64 36.92 112.71 20.82 91.90 307.63 89.76 217.87 36.86 181.01 464.28 185.27 279.01 83.39 195.62 674.50 318.22 356.28 140.05 216.23

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Prior Period Items Current Tax Deferred Tax Fringe Benefit Tax PAT

(0.00) 0.35 4.92

0.04 0.45 6.40

0.01 0.39 0.10 7.03

0.78 0.85 1.13 11.41

0.07 1.45 3.11 19.78

0.03 7.28 7.01 0.24 38.55

0.07 11.04 14.87 1.75 64.16

0.06 30.71 27.93 2.32 119.99

(0.03) 29.16 37.28 3.24 125.97

0.27 25.23 48.26 1.89 140.58

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Project Overview
BRAND FACTORY Best Brands.Smart Prices Brand Factory brings to the Indian consumers the promise of revolutionizing value shopping by offering the 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’.


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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 become distinct shopping destinations with distinct 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. The stores offers a wide range of products including apparels for men and women; infant wear; accessories; cosmetics; footwear; sportswear, luggage; home linen and much more.

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Brand Factory hosts several Indian and International fashion brands including Levis, Pepe Jeans, Dockers, Wrangler, ProVogue, Arrow, Nike, Adidas, Reebok, Louis Phillip, Allen Solly, Reid and Taylor, Gini and Jony amongst others. Brand Factory is an exclusive chain of all- year-discount stores offering the very best of national and international fashion brands. Launched in the second quarter 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 experience at discounted prices. It was the price that got slashed, not the experience.

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Primarily focused on retailing apparel, accessories and footwear at discounted prices, these stores (each in excess of 60,000 square feet) showcase some of the best 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.

Currently there are 10 stores located at Ahmadabad, Bangalore, Pune, Mumbai, Hyderabad, Ghaziabad and Kolkata

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Supply Chain of Brand Factory
The supply chain of BRAND FACTORY is very will organized. In the store level Team leaders of the different Categories report about the merchandise replenishment levels and buying trends of the merchandise to the Category Managers at store and zonal office. The category manager’s inturn will place orders to vendors and they will either send the merchandise directly to the store 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 Below is the brief representation of merchandise and information of supply chain of BRAND FACTORY (BF)

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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.

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(b) Raising PO:PO (purchase order) for different merchandise is placed and 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 and all the delivery and payment conditions 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.

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(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. The main focus during goods receiving must be to unload the crates/ cartons from the truck as quickly and safely as possible. (c) Receiving from Vendors Procedure for receiving goods directly from vendors. Behind this whole activity owner is store manager/ asst. store manager. Food bazaar stores indenting specially bakery, beverage and books/magazines and music. SCM/ASCM

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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 of books/magazines and music SCM/ASCM 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.

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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.

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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 pass is generated and he would come and collect 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 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 is lower) & it is also done by DM / AM. Beyond Rs 30 or 30% of SP & it is done by state fresh head.

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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 movement of merchandise from floor to the 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 -

Internet Internet is also rapidly evolving as a customer interface, removing the need of a consumer physically visiting the store. ERP System Various ERP vendors have developed retail-specific systems which help in integrating all the functions from warehousing to distribution, front and back office store systems and merchandising. An integrated supply chain helps the retailer in maintaining his stocks, getting 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 apply it to business. This, along with the various available CRM (Customer Relationship Management) Systems, allows the retailers to study the purchase behavior of consumers in detail and grow the value of individual consumers to their businesses.

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Advanced Planning and Scheduling Systems APS systems can provide improved control across the supply chain, all the way from raw material supplier’s right through to the retail shelf. These APS packages complement existing (but often limited) ERP packages. 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

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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 identify the performance of store operations. 2. To understand the quality of services maintained in the store. 3. To determine the performance of sales persons in the store. 4. To understand the availability of products in the store. 5. To identify the effectiveness of atmospherics in the store. Not but least, every thing about Retail Store Operations in Practical

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The entire report is based on the self observation 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.

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1. 2.

Store performing well in attracting the customers. Discounts and offers doing well in the store.

3. mark. 4.

Toilet and and drinking water facility is not up to the

In offer days the store management is good.

5. 6.

Air conditioning and hygiene is good. Home delivery services are not good.

7. 8.

Product display and signage is good. Quality in products is good.

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9. 10.

Achieving best finacail goals. Most satisfiyed employer.

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1. 2. product categories. 3. 4. maintained regularly. 5. 6. 7. 8. communication skills. 9. effectively. 10. Impulse merchandise needs to be increased. Alteration of Garments has to be done time Proper training should be provided to sales person Various schemes and offers can be provided to them No. of cash counter needs to be increased keeping All the floor and Brand staff need to have better so that they can deal with the customer efficiently. and attract new customers. in view customer traffic intensity. Proper signage should be there so that customer can Toilet and drinking water facility should be locate the products easily. Manage home delivery services properly. There should be proper assortment of various

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I have learned a lot from this project. After this project I have a fair knowledge about retail management. This project has helped me a lot to know about the various aspects concerned with retail field which people rarely know about like marketing strategies, promotions activities involved, inventory management, customer relations, method of advertisement, services etc. Most importantly after this project I’m able to easily understand several segments of retailing and also my observation skills have increased because I have observed many aspects during our project like the area of retail shop, design of outlet, method of stock keeping, promotional activities involved and also the problems faced in this field. Lastly I would like to thank the management and staff of BRAND FACTORY for their cooperation and support without which this would not have been possible and successful. Also I would like to thank our Guide will guide us throughout our career. who gave us this

golden opportunity which has proved to be very helpful and

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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

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