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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

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

Objectives of the study

• To understand the organization structure or hierarchy of the


• 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
by each department.
• The study is aimed at understanding how an organization
practically works in a real situation.

Scope of the study

• This report is based on the study conducted at BRAND

FACTORY, Marathalli, Bangalore.
• It aims at understanding the company’s establishment,
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
comparison to the theoretical aspects.
• It aims to understand the skills of the company in the areas like
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,

safety, human resources, production, purchasing etc.
• Discussion with the company executives, managers and

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

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 non-
branded 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

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:
Mumbai, Delhi, Pune, Ahmedabad, Bangalore, Hyderabad, Kolkata,

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

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
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
• Improvements in infrastructure and enhanced availability of retail
• Entry to various sources of financing

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

retailing by 2010.
• No one single format can be assumed as there is a huge
difference in cultures regionally.
• The most encouraging format now would be the hyper marts.
• The hyper mart format would be further encouraged with the
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
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.

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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

Merchandise: Depends on the stores
Example: Bata store deals only with footwear, RPG’s Music World,
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
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
• 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
achieve Rs.9,000 crore-plus ($2 bn) sales by 2008.
• RPG: Planning IPO, will have 450-plus Music World, 50-plus
Spencer's Hyper covering 4 mn sq.ft by 2010.

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• LIFESTYLE :Investing Rs.400 crore-plus ($90 mn) in next five
years on Max Hypermarkets & value retail stores, home and lifestyle
• 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
through 150 stores in next five years.
• TATA (Trent Ltd.): Trent to open 27 more stores across its retail
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


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

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A SWOT analysis of the Indian organized retail industry is presented

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
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.

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 50-
60%. 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.

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 one-
stop 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

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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.

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,

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.

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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,

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.

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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

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

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 socio-
economic 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.

- 29 -
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

- 30 -
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
in our conduct.
• 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,
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.

- 32 -
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

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.

- 33 -
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. 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


- 34 -
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 -


Wholetime Director


Wholetime Director


Wholetime 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 e-

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

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

- 39 -
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

- 41 -
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

The approval for carrying on Life Insurance Business has been received
from the IRDA in September, 2007.

Future bazaar India Limited

- 42 -
Future bazaar India Limited (FBIL) is set up as the e-Retailing arm of
the Future Group for providing on-line shopping experience. 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.

- 43 -
- 44 -


E-tailing offers the widest range of products at ‘lowest prices –


- 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

- 46 -
Indian street food but with assurance of highest levels of hygiene and


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

- 47 -
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

- 48 -
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, a market leader in men's ready to wear clothing in France, is now

available in India.


- 49 -
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 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

India's largest multi-brand

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 home-

owner, 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

One Mobile

- 53 -
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.


- 55 -
Navaras is a fine 22 carat pure gold and diamond jewellery brand,
retailed from Big Bazaar stores.


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

Shoe Factory

A value format, to the core, Shoe Factory brings with it a fresh

experience in footwear retailing.

Leisure & Entertainment

- 56 -
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

- 57 -
At Fit & Healthy our focus is on helping you stay healthy by providing
access to the best allopathic, ayurvedic and homeopathic medicinal

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

- 58 -

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

- 59 -
Transfer to General Reserve 14.05 12.60
Balance carried to Balance Sheet 380.81 316.65

Financial Performance Jun-05 Jun-06 Jun-07 Jun-08 Jun-09

Cost of Goods Sold / Net Sales 66.52% 66.53% 69.36% 69.56% 69.85%

Manpower Costs / Total Income 4.80% 5.99% 6.19% 5.42% 4.32%

Advertising and Selling Cost / Total Income 3.08% 2.72% 2.80% 2.34% 1.80%

Interest / Total Income 2.60% 1.97% 2.70% 3.67% 5.01%

PBDIT/ Interest (Debt-Service Ratio) 3.42 4.05 3.43 2.51 2.12

Profitability Jun-05 Jun-06 Jun-07 Jun-08 Jun-09

PBDIT / Total Income 8.89% 7.99% 9.24% 9.19% 10.63%

PBDT / Total Income 6.29% 6.02% 6.55% 5.52% 5.61%

Net profit / Total Income 3.65% 3.43% 3.60% 2.49% 2.21%

RONW (PAT / Average Net Worth) 24.42% 17.15% 14.82% 8.57% 6.83%

- 60 -
ROCE (PBDIT / Average capital employed) 22.41% 18.30% 17.48% 14.44% 14.73%

Balance Sheet Jun-05 Jun-06 Jun-07 Jun-08 Jun-09

Debt-Equity Ratio 1.29 1.14 1.19 1.19 1.25

Debtors Turnover (Days) 4 3 7 8 10

Inventory Turnover (Days) 94 98 99 102 101

Current Ratio 1.73 1.44 2.19 1.71 1.97

Quick Ratio 0.55 0.58 1.08 0.78 0.75

Asset Turnover (Total Income / Total Assets) 2.03 1.62 1.36 1.23 1.21

Key Finacial Parameters (Rs in Crores) Jun-05 Jun-06 Jun-07 Jun-08 Jun-09

Total Revenue 1,055.85 1,871.97 3,328.77 5,052.67 6,347.77

Profit Before Interest, Tax and Depreciation 93.91 149.64 307.63 464.28 674.50

Profit After Tax 38.55 64.16 119.99 125.97 140.58

Cash Profit 58.90 99.85 184.78 246.64 328.88

Per Share Data Jun-05 Jun-06 Jun-07 Jun-08 Jun-09

Basic Earnings (less Extraordinary Income) 3.31 5.06 8.71 7.54 7.94

Basic Cash Earnings(Rs.) 4.45 6.70 11.39 14.76 18.58

Dividend (Rs) 0.50 0.50 0.50 0.60 0.60

Book Value (Rs) 20.12 39.20 74.42 111.96 118.20

- 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 Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09
Sources of Funds

Equity Share Capital 12.52 13.32 17.32 18.18 19.14 22.00 26.88 29.35 31.86 38.06
Share Application Money - - - - - - - 0.01 - -
Reserves & Surplus 13.07 22.75 36.68 49.50 75.75 196.53 500.02 1,062.82 1,751.50 2,211.48
Warrant Application Money - - - - - 3.00 - - 63.26 22.88
Shareholders Fund 25.59 36.07 54.00 67.68 94.89 221.53 526.90 1,092.18 1,846.62 2,272.42
Deferred Tax Liability - - 1.79 2.92 6.03 13.04 27.92 55.84 67.84 116.10
Secured Loans 31.61 68.22 109.53 141.32 214.76 256.17 428.10 951.93 1,991.77 2,525.53
Unsecured Loans 2.73 1.42 0.30 4.23 21.36 30.04 173.29 347.65 200.01 324.86
Total Loans 34.34 69.64 109.83 145.55 236.12 286.21 601.39 1,299.58 2,191.78 2,850.39
Total Liabilities 59.93 105.71 165.62 216.15 337.04 520.78 1,156.20 2,447.60 4,106.24 5,238.90

Application of Funds
Gross Block 21.24 41.24 77.72 122.98 184.71 251.10 366.01 767.07 1,368.76 1,876.45
Depreciation 3.61 5.22 9.43 15.67 24.32 37.36 56.58 92.47 170.59 307.69
Net Block 17.63 36.01 68.29 107.31 160.39 213.74 309.43 674.60 1,198.17 1,568.76
Capital WIP 9.85 7.86 6.28 3.32 14.44 15.79 86.06 131.13 330.64 345.23
NB + CWIP 27.48 43.87 74.57 110.63 174.83 229.53 395.49 805.73 1,528.81 1,913.99
Investment 0.07 5.07 5.07 5.26 5.26 31.92 161.67 252.01 586.52 954.03
Current Assets
Inventories 37.19 56.33 87.41 114.38 157.60 275.93 507.02 885.96 1,429.84 1,787.84
Debtors 10.05 12.98 17.69 22.32 17.58 12.31 17.03 65.17 113.16 177.25
Cash & Bank Balance 2.28 2.38 4.03 8.07 13.85 21.50 21.77 162.97 121.10 109.34
Loans & Advances 6.01 11.10 23.33 21.43 40.95 93.68 297.57 633.85 962.32 1,202.56
Other Current Assets - - - - - 0.46 1.09 1.50 2.16 5.75
Total Current Assets 55.53 82.78 132.46 166.21 229.98 403.87 844.48 1,749.45 2,628.58 3,282.74
Current Liabilities
Creditors 12.41 13.75 23.82 17.64 13.58 78.69 136.08 223.72 310.40 385.38
Other Current Liabilities 9.66 12.04 22.05 44.44 52.91 48.39 93.73 120.15 309.68 506.01
Provisions 1.96 0.98 1.23 4.40 6.95 17.74 15.62 15.71 17.58 20.46
Total Current Liabilities 24.03 26.77 47.10 66.48 73.44 144.82 245.44 359.58 637.66 911.86

- 65 -
Net Current Assets 31.50 56.01 85.36 99.73 156.54 259.05 599.04 1,389.86 1,990.91 2,370.89
Misc. Expenditure 0.89 0.76 0.63 0.53 0.40 0.28 - - - -
Total Assets 59.93 105.71 165.62 216.16 337.04 520.78 1,156.20 2,447.60 4,106.24 5,238.90

- 66 -

P ro fit& Loss
Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09
Account as at

Sales & O perating

137.28 180.58 285.29 444.83 658.31 1,052.80 1,868.97 3,236.74 5,048.91 6,341.70

Other Income 0.66 0.44 0.67 0.79 1.33 3.05 3.00 92.03 3.76 6.06

Total Income 137.94 181.02 285.96 445.62 659.64 1,055.85 1,871.97 3,328.77 5,052.67 6,347.76

Cost of Goods
97.19 117.98 186.11 303.50 438.01 700.31 1,243.43 2,245.05 3,512.19 4,429.95
Cons. & Sold

Labour Charges 5.17 8.28 6.51 6.77 6.97 15.27 20.66 14.62 21.28 15.79

Packing Materials 0.76 1.24 2.11 3.10 5.64 12.44 19.22 27.80 40.40 51.74

Power 1.03 2.02 5.34 7.94 12.08 21.95 37.41 61.51 78.20 98.97

Excise - 0.43 4.58 3.40 3.36 0.28 - - - -

Rent 3.08 6.18 10.03 15.71 27.59 47.97 113.46 207.01 326.27 405.76

Personnel Cost 4.18 6.81 13.59 19.13 27.53 50.65 112.07 206.09 274.07 274.26

2.98 6.05 8.77 11.83 18.75 32.56 50.96 93.14 118.28 114.23

1.08 1.73 2.72 3.43 5.95 12.66 19.08 - - -

Sales Tax 1.85 3.55 5.26 7.75 14.91 - - - - -

Misc. Expenditure 9.22 12.00 17.96 24.88 41.72 67.84 106.03 165.92 217.70 282.56

Total Cost 126.53 166.27 262.98 407.44 602.50 961.94 1,722.34 3,021.14 4,588.39 5,673.26

P B D IT 11.41 14.74 22.98 38.18 57.14 93.91 149.64 307.63 464.28 674.50

Finance Charges 5.07 6.22 11.24 17.67 23.94 27.46 36.92 89.76 185.27 318.22

PBDT 6.33 8.52 11.74 20.51 33.20 66.46 112.71 217.87 279.01 356.28

Depreciation 1.07 1.63 4.22 6.35 8.79 13.33 20.82 36.86 83.39 140.05

PBT 5.27 6.89 7.53 14.16 24.41 53.12 91.90 181.01 195.62 216.23

- 67 -
Prior Period Items (0.00) 0.04 0.01 0.78 0.07 0.03 0.07 0.06 (0.03) 0.27

Current Tax 0.35 0.45 0.39 0.85 1.45 7.28 11.04 30.71 29.16 25.23

Deferred Tax - - 0.10 1.13 3.11 7.01 14.87 27.93 37.28 48.26

Fringe Benefit Tax - - - - - 0.24 1.75 2.32 3.24 1.89

PAT 4.92 6.40 7.03 11.41 19.78 38.55 64.16 119.99 125.97 140.58

- 68 -
Project Overview

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’.


- 69 -
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

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.

- 70 -
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.

- 71 -
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

- 72 -
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

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)

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, &

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
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.

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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.

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

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.

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1. Near expiry product is markdown as per the RR rule.
2. An expired product is segregated and is treated as per

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


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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.

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Internet is also rapidly evolving as a customer interface,
removing the need of a consumer physically visiting the

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

>>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


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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


5. To identify the effectiveness of atmospherics in the

Not but least, every thing about Retail Store Operations in

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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. Store performing well in attracting the customers.

2. Discounts and offers doing well in the store.

3. Toilet and and drinking water facility is not up to the


4. In offer days the store management is good.

5. Air conditioning and hygiene is good.

6. Home delivery services are not good.

7. Product display and signage is good.

8. Quality in products is good.

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9. Achieving best finacail goals.

10. Most satisfiyed employer.

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1. Manage home delivery services properly.

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

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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

Also I would like to thank our Guide who gave us this

golden opportunity which has proved to be very helpful and
will guide us throughout our career.

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Books Referred

Retailing Management(Swapna Pradhan)

Retailing Management(Michael levy,Ajay pandit,Barton A


It Happened in India (Kishore Biyani)

India Retail Report 20009

Websites Referred

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