PROJECT REPORT ON

Comparison between Two Retail Company PANTALOON RETAIL LTD LTD Vs RELIANCE RETAIL

UNDER GUIDENCE MR. AJAY KUMAR PATHAK ALAMSIDDIQUI (FACULTY OF MARKETING) SEC B

SUBMITTED BY PRAVEJ PGDM (2009-11) ROLL NO. 55,

INSTITUTE OF ADVANCED MANAGEMENT AND RESEARCH 9TH KM, STONE, DELHI-MEERUT ROAD, DUHAI, GHAZIABAD. www.iamrindia.com
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Pantaloon Retail (India) Limited, is a large Indian retailer, which is part of the Future Group, and operates multiple retail formats in both the value and lifestyle segment of the Indian consumer market. Headquartered in Mumbai, the company has over 1,000 stores across 71 cities in India and employs over 30,000 people , and as of 2010, it was the country's largest listed retailer by market capitalization and revenue.
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Pantaloon Retail is the flagship enterprise of the Future Group. Pantaloon Retail (India) Limited has spread across various businesses and cities in India. Pantaloon owns multiple retail formats and is able to cater to a large section of the society. The organization made an incursion into the modern retail (fashion) in 1997. Big Bazaar, a hypermarket chain, was introduced in the year 2001, with an Indian touch of convenience and hygiene. Food Bazaar, food and grocery chain, and Central Mall located at various Metros are other important parts of the group The company’s brands include Pantaloons, a chain of fashion outlets, Big Bazaar, a hypermarket chain and Food Bazaar, a supermarket chain. Some of the company's other regional brands include, Depot, Shoe Factory, Brand Factory, Blue Sky, aLL, Top 10 and Star and Sitara.

Business Area

The Future Group operates through six verticals Future Retail –covering retail business Future Capital –catering to financial products & services Future Brands –managing all the brands owned or managed by group companies Future Space –managing real estate business Future Logistics –managing supply chain and distribution Future Media –developing and managing retail media space

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Business Strategy
•Targeting greater market share by entering into

formats such as departmental stores, supermarket, hypermarkets, malls etc.
•Developed a Dual Strategy

Of opening smaller versions in its flagship stores like BIGBAZAAR Opening larger Independent Stores.
•Currently adopted retail format by the group:

Lifestyle SegmentPantaloon Central Value Segment Big Bazaar Food Bazaar

Private Labels
Pantaloon’s apparel retail business derives its 75 per cent of sales from its private label such as: • John Miller shirts JM Sports • Lombard Pantaloon • Bare Leisure Bare Denim
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• Annabelle • Akkriti

Mix Match

Major Strategic Alliances
•PRIL has entered into 50:50 JV with Ginni & Jonny–

known brand for kids •Sole Franchisee of Mark& Spencer, Guess and Women’s Secret in India •PRIL holds a 51 per cent stake in JV with Liberty Shoes called ‘FootMart’ runs stores under the name of ‘Shoe Factory’ located in shopping malls and also opened as independent stores

Type Founded

Private BSE: 523574 India

Headquarters Mumbai Key people Industry Products Kishore Biyani, MD & Group CEO Retail Discount Stores Supercenters

Reliance Retail is the retail business wing of the Reliance business. Many brands like Reliance Fresh, Reliance Footprint, Reliance Time Out, Reliance Digital, Reliance Wellness, Reliance Trendz,
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Reliance Autozone, Reliance Super, Reliance Mart, Reliance iStore, Reliance Home Kitchens, and Reliance Jewel come under the Reliance Retail brand. Reliance Retail, Ltd. operates retail outlets in India. Its retail outlets offer foods, groceries, apparel and footwear, lifestyle and home improvement products, electronic goods, and farm implements and inputs. The company’s outlets also provide vegetables, fruits, and flowers. It focuses on consumer goods, consumer durables, travel services, energy, entertainment and leisure, and health and well-being products, as well as on educational products and services. The company was founded in 2006 and is based in Mumbai, India. Reliance Retail, Ltd. operates as a subsidiary of Reliance Industries, Ltd

It’s a wholly owned subsidiary of Reliance Industries Limited •It’s a potential player which is entering the domestic retail market with an estimated investment of around Rs. 250 billion

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•The company intend to set up chains of hypermarkets, supermarkets, discount stores, department stores, convenience stores and specialty stores •These various retail formats and distribution and stocking hubs will be spread across the 784 cities and 1600 rural towns in the country •The company intends to open MBO for the apparels and consumer durables •The company already started its operations with ‘Reliance Fresh’–supermarket •Reliance is following a Twin Modelfor its expansion, which includes both owning and leasing retail space Initially targeting the five states of Maharashtra, Gujarat, Punjab, West Bengal and Andhra Pradesh –To establish pan –India presence in all formats, targeting not only major metros and cities, but also the second-tier, semi-urban and rural centres, thereby reaching its target of 784 cities and 1600 rural towns

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Key developments for Reliance RetailLtd.
Vision Express Eyeing Acquisitions

Reliance Retail Ltd and its partner Pearle Europe B.V. plans to open up to 700 stores of their eyewear retail chain 'Vision Express' across India in the next seven to eight years. The company is also open to acquisitions. Vision Express Chief Executive Officer, Guillame Brouwet said, “We want to have a network of 500-700 outlets of Vision Express over the next seven to eight years. That's the longer term outlook. We are very much open to acquisitions in India if some opportunity comes up. But we are not discussing anything at present.” Pearle Europe is also willing to grow in India in an inorganic manner. Vision Express is an equal joint venture between Reliance Retail and Pearle Europ ASICS Corp. said that it will start selling its products in India in February. Asics concluded a sales agency contract with a unit of Indian retailer Reliance Retail Ltd., which operates shoe stores in cities such as Mumbai and Delhi. The Reliance Retail unit will sell Asics products at 13 stores. Asics has been a sponsor of the Mumbai marathon, which is held in January each year, since 2008 as part of its bid to enter the Indian market Hamleys will make its India debut with a 22,000-square-feet store at the popular Phoenix Mills in Mumbai, by February next year.
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Reliance Retail, which has a 20-year-franchise agreement with the retailer, will set up 20 stores in the first seven years of the agreement. Besides Mumbai, other cities on the retailer's list include Delhi, Bangalore and Chennai in the first phase of the launch. The second store will be launched in Chennai by June next year. Popular Profiles at Reliance Retail
• • • • • Raghu Pillai , K Radhakrishnan, Rajkumar Pugalia Sriram Mahadevan Mradul Jauhari, GM president and chief executive CEO Executive Vice President , Concept Head - Reliance Marts & Supers

Headquarters Industry Type Status Company Size Founded

Mumbai Area, India Retail Public Company Operating Subsidiary 10,001 or more employees 2006

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Board of Directors Mr. Kishore Biyani, Managing Director Mr. Gopikishan Biyani, Wholetime Director Mr. Rakesh Biyani, Wholetime Director Mr. Ved Prakash Arya Director, Operations & Chief Operating Officer Mr. Shailesh Haribhakti, Independent Director

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Mr. S Doreswamy, Independent Director Dr. D O Koshy, Independent Director Ms. Anju Poddar, Independent Director Ms. Bala Deshpande, Independent Director Mr. Anil Harish, Independent Director Partner companies
Pantaloon Industries Ltd. Home Solutions Retail (India) Ltd. Future Capital Holdings Converge M Retail (India) Ltd. Indus League Clothing Ltd. Galaxy Entertainment Corporate Ltd. Joint Ventures Companies Planet Retail Holdings Ltd. Footmart Retail GJ Future Fashions CapitaLand Retail India ETAM Future Fashions India Pvt. Ltd. Head Office

Pantaloon Retail (India) Limited Knowledge House, Shyam Nagar Off Jogeshwari-Vikhroli Link Road Jogeshwari (East), Mumbai 400 060 Tel: +91 22-6644 2200 Fax: +91 22-6644 2222 Site: www.pantaloon.com

FAINANCIAL STATEMENT RELIANCE RETAIL & PANTALOON RETAIL BALANCE SHEET
2009 (Rs. Crore) Source of fund
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RELIANCE RETAIL PANTALOON LTD RETAIL LTD.

Equity share capital Share application money Preference share capital Reserves & surplus

1,573.53 69.25 1,12,945.44

38.06 22.88 2,211.48

LOAN FUND
Secured loans Unsecured loans Total 10,697.92 63,206.56 1,88,492.70 2,525.53 324.86 5,122.81

NET CURRENT ASSETS
Current assets, loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written Total 56,298.09 45,675.71 10,622.38 1,88,492.70 3,285.51 1,030.72 2,254.79 5,122.81

The balance sheet show that, source of fund, loan fund, net current assets is Reliance retail ltd is more than Pantaloon retail ltd.

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PROFIT & LOSS ACCOUNT 2009 (Rs. Crore)
Income
Operating income 1,41,959.00 6,661.42

RELIANCE RETAIL LTD

PANTALOON RETAIL LTD

Expenses
Material consumed Manufacturing expenses Personnel expenses Selling expenses 1,08,856.78 4,518.96 2,397.50 3,095.27 4,481.95 115.91 275.94 443.36

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Administrative expenses Expenses capitalized Cost of sales Operating profit Other recurring income Adjusted PBDIT Financial expenses Depreciation Other write offs Adjusted PBT Tax charges Adjusted PAT Non recurring items Other non cash adjustments Reported net profit Earnings before appropriation Equity dividend Preference dividend Dividend tax Retained earnings

2,203.75 -3,265.65 1,17,806.61 24,152.39 1,713.38 25,865.77 1,774.47 5,195.29 18,896.01 3,137.34 15,758.67 -449.35 15,309.32 19,672.61 1,897.05 322.40 17,453.16

672.01 5,989.17 672.25 12.08 684.33 317.76 140.05 226.52 75.38 151.14 -10.29 -0.27 140.58 408.14 11.57 1.97 394.60

The profit & loss account show that, Reliance retail ltd have got more profit in 2009 comparison to Pantaloon retail ltd.

RATIO RELIANCE RETAIL LTD Per share ratios
Adjusted EPS (Rs) Adjusted cash EPS (Rs) Reported EPS (Rs) Reported cash EPS (Rs) Dividend per share Operating profit per share (Rs) 100.13 133.14 97.28 130.29 13.00 153.47 7.94 15.30 7.39 14.75 0.60 35.32

PANTALOON RETAIL LTD

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Book value (excl rev res) per share (Rs) Book value (incl rev res) per share (Rs.) Net operating income per share (Rs) Free reserves per share (Rs)

902.02 704.28

2.28 2.28 350.01 112.87

Profitability ratios
Operating margin (%) Gross profit margin (%) Net profit margin (%) 17.01 13.35 10.65 10.09 7.98 2.10

Liquidity ratios
Current ratio Current ratio (inc. st loans) Quick ratio Inventory turnover ratio 1.23 1.08 0.90 12.92 3.19 1.29 1.45 3.77

Payout ratios
Dividend payout ratio (net profit) Dividend payout ratio (cash profit) Earning retention ratio Cash earnings retention 14.49 10.82 85.92 89.41 9.63 4.82 91.05 95.36

Annual results in brief

2009 (Rs.crore)
Sales Operating profit Interest Gross profit EPS (Rs)

RELIANCE RETAIL LTD
1,46,328.00 23,683.00 1,745.00 23,998.00 99.35

PANTALOON RETAIL LTD
6,341.70 668.44 318.22 356.28 7.39

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The annual results show that, sales, operating profit, interest, gross profit &esp. (Rs.) of Reliance retail ltd is much more than Pantaloon retail ltd.

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