India Grocery Retail

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MarketLine Industry Profile
Food & Grocery

Retail in India
October 2016
Reference Code: 0102-2058
Publication Date: October 2016
WWW.MARKETLINE.COM
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India - Food & Grocery Retail 0102 - 2058 - 2015
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EXECUTIVE SUMMARY
Market value
The Indian food & grocery retail market grew by 11.8% in 2015 to reach a value of $398,075.1 million.
Market value forecast

In 2020, the Indian food & grocery retail market is forecast to have a value of $692,902.2 million, an increase of 74.1%
since 2015.
Category segmentation
Unpackaged food is the largest segment of the food & grocery retail market in India, accounting for 71.2% of the market's
total value.
Geography segmentation
India accounts for 9.2% of the Asia-Pacific food & grocery retail market value.
Market rivalry
Competition between players is fierce due to the limited level of product differentiation and consumer's negligible
switching costs, combined with a challenging and volatile industry environment.

TABLE OF CONTENTS
Executive Summary......................................................................................................................................................... 2
Market value ................................................................................................................................................................ 2
Market value forecast .................................................................................................................................................. 2
Category segmentation ............................................................................................................................................... 2
Geography segmentation ............................................................................................................................................ 2
Market rivalry ............................................................................................................................................................... 2
Market Overview.............................................................................................................................................................. 7
Market definition .......................................................................................................................................................... 7
Market analysis............................................................................................................................................................ 7
Market Data ..................................................................................................................................................................... 8
Market value ................................................................................................................................................................ 8
Market Segmentation ...................................................................................................................................................... 9
Category segmentation ............................................................................................................................................... 9
Geography segmentation .......................................................................................................................................... 10
Market distribution ..................................................................................................................................................... 11
Market Outlook .............................................................................................................................................................. 12
Market value forecast ................................................................................................................................................ 12
Five Forces Analysis ..................................................................................................................................................... 13
Summary ................................................................................................................................................................... 13
Buyer power .............................................................................................................................................................. 14
Supplier power........................................................................................................................................................... 15
New entrants ............................................................................................................................................................. 16
Threat of substitutes .................................................................................................................................................. 17
Degree of rivalry ........................................................................................................................................................ 18
Leading Companies....................................................................................................................................................... 19
Bharti Enterprises Limited ......................................................................................................................................... 19
Future Retail Ltd. ....................................................................................................................................................... 21
Metro AG ................................................................................................................................................................... 22
Macroeconomic Indicators............................................................................................................................................. 26
Country data .............................................................................................................................................................. 26
Methodology .................................................................................................................................................................. 28

Industry associations ................................................................................................................................................. 29
Related MarketLine research .................................................................................................................................... 29
Appendix........................................................................................................................................................................ 30
About MarketLine ...................................................................................................................................................... 30

LIST OF TABLES
Table 1: India food & grocery retail market value: $ million, 201115.............................................................................8
Table 2: India food & grocery retail market category segmentation: $ million, 2015 .......................................................9
Table 3: India food & grocery retail market geography segmentation: $ million, 2015..................................................10
Table 4: India food & grocery retail market distribution: % share, by value, 2015.........................................................11
Table 5: India food & grocery retail market value forecast: $ million, 201520 .............................................................12
Table 6: Bharti Enterprises Limited: key facts ...............................................................................................................19
Table 7: Future Retail Ltd.: key facts............................................................................................................................. 21
Table 8: Metro AG: key facts ......................................................................................................................................... 22
Table 9: Metro AG: key financials ($) ............................................................................................................................ 23
Table 10: Metro AG: key financials () .......................................................................................................................... 23
Table 11: Metro AG: key financial ratios........................................................................................................................24
Table 12: India size of population (million), 201115 ....................................................................................................26
Table 13: India gdp (constant 2005 prices, $ billion), 201115 .....................................................................................26
Table 14: India gdp (current prices, $ billion), 201115 ................................................................................................26
Table 15: India inflation, 201115 ................................................................................................................................. 27
Table 16: India consumer price index (absolute), 201115...........................................................................................27
Table 17: India exchange rate, 201115 .......................................................................................................................27

LIST OF FIGURES
Figure 1: India food & grocery retail market value: $ million, 201115............................................................................8
Figure 2: India food & grocery retail market category segmentation: % share, by value, 2015 ......................................9
Figure 3: India food & grocery retail market geography segmentation: % share, by value, 2015 .................................10
Figure 4: India food & grocery retail market distribution: % share, by value, 2015 .......................................................11
Figure 5: India food & grocery retail market value forecast: $ million, 201520............................................................12
Figure 6: Forces driving competition in the food & grocery retail market in India, 2015................................................13
Figure 7: Drivers of buyer power in the food & grocery retail market in India, 2015......................................................14
Figure 8: Drivers of supplier power in the food & grocery retail market in India, 2015 ..................................................15
Figure 9: Factors influencing the likelihood of new entrants in the food & grocery retail market in India, 2015 ............16
Figure 10: Factors influencing the threat of substitutes in the food & grocery retail market in India, 2015 ...................17
Figure 11: Drivers of degree of rivalry in the food & grocery retail market in India, 2015..............................................18
Figure 12: Metro AG: revenues & profitability................................................................................................................24
Figure 13: Metro AG: assets & liabilities........................................................................................................................25

MARKET OVERVIEW
Market definition
The food & grocery retail market includes the retail sales of all food products, both packaged and unpackaged, as well as
beverages (including retail sales of all alcoholic and non-alcoholic beverages), tobacco, and household products.
All on-trade sales of food and beverage are excluded.
All currency conversions are calculated at constant average 2015 exchange rates.
For the purposes of this report, North America consists of Canada, Mexico, and the United States.
South America comprises Argentina, Brazil, Chile, Colombia, and Venezuela.
Europe comprises Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy,
Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden, Switzerland, Turkey, and the United Kingdom.
Scandinavia comprises Denmark, Finland, Norway, and Sweden.
Asia-Pacific comprises Australia, China, Hong Kong, India, Indonesia, Kazakhstan, Japan, Malaysia, New Zealand,
Pakistan, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam.
Middle East comprises Egypt, Israel, Saudi Arabia, and United Arab Emirates.
Market analysis
The Indian food & grocery retail industry has been growing strongly in recent years. Further good growth is expected in
the forecast period.
Growth in this industry is largely being driven by the expansion of the modern retail sector in the country. What's more,
increasing urbanization and rising incomes are contributing to a growing industry.
The Indian food & grocery retail industry had total revenues of $398.1bn in 2015, representing a compound annual
growth rate (CAGR) of 11.3% between 2011 and 2015. In comparison, the South Korean and Chinese industries grew
with CAGRs of 4.3% and 11.0% respectively, over the same period, to reach respective values of $137.7bn and
$2,456.4bn in 2015.
Modern retail in India is expected to grow in importance in the coming years as increasing urbanization and a growing
workforce drives consumers to more convenient shopping methods.
The unpackaged food segment was the industry's most lucrative in 2015, with total revenues of $283.6bn, equivalent to
71.2% of the industry's overall value. The drinks segment contributed revenues of $48.5bn in 2015, equating to 12.2% of
the industry's aggregate value.
The performance of the industry is forecast to accelerate, with an anticipated CAGR of 11.7% for the five-year period
2015 - 2020, which is expected to drive the industry to a value of $692.9bn by the end of 2020. Comparatively, the South
Korean and Chinese industries will grow with CAGRs of 5.9% and 11.2% respectively, over the same period, to reach
respective values of $182.9bn and $4,171.2bn in 2020.

MARKET DATA
Market value
The Indian food & grocery retail market grew by 11.8% in 2015 to reach a value of $398,075.1 million.
The compound annual growth rate of the market in the period 201115 was 11.3%.
Table 1: India food & grocery retail market value: $ million, 201115
Year $ million Rs. million million % Growth

2011 259,260.8 16,624,659.1 233,671.9
2012 288,074.1 18,472,259.6 259,641.3 11.1%
2013 319,742.6 20,502,953.7 288,184.2 11.0%
2014 356,091.2 22,833,740.1 320,945.2 11.4%
2015 398,075.1 25,525,891.2 358,785.3 11.8%
CAGR: 201115 11.3%
SOURCE: MARKETLINE MARKETLINE
Figure 1: India food & grocery retail market value: $ million, 201115

MARKET SEGMENTATION
Category segmentation
Unpackaged food is the largest segment of the food & grocery retail market in India, accounting for 71.2% of the market's
total value.
The Drinks segment accounts for a further 12.2% of the market.
Table 2: India food & grocery retail market category segmentation: $ million, 2015
Category 2015 %
Unpackaged Food 283,612.1 71.2%
Drinks 48,455.0 12.2%
Packaged Food 42,514.5 10.7%
Tobacco 17,642.4 4.4%
Household Products 5,851.1 1.5%
Total 398,075.1 100%
Figure 2: India food & grocery retail market category segmentation: % share, by value, 2015

Geography segmentation
India accounts for 9.2% of the Asia-Pacific food & grocery retail market value.
China accounts for a further 56.6% of the Asia-Pacific market.
Table 3: India food & grocery retail market geography segmentation: $ million, 2015
Geography 2015 %
China 2,456,363.9 56.6
Japan 467,900.0 10.8
India 398,075.1 9.2
South Korea 137,670.1 3.2
Taiwan 88,772.2 2.0
Rest of Asia-Pacific 788,691.2 18.2
Total 4,337,472.5 100%
Figure 3: India food & grocery retail market geography segmentation: % share, by value, 2015

Market distribution
Convenience Stores & Gas Stations form the leading distribution channel in the Indian food & grocery retail market,
accounting for a 62.4% share of the total market's value.
Food and Drinks Specialists accounts for a further 32.8% of the market.
Table 4: India food & grocery retail market distribution: % share, by value, 2015
Channel % Share
Convenience Stores & Gas Stations 62.4%
Food and Drinks Specialists 32.8%
Hypermarkets, Supermarkets & Discounters 3.5%
Cash & Carry and Warehouse Clubs 0.1%
Other 1.2%
Total 100%
Figure 4: India food & grocery retail market distribution: % share, by value, 2015

MARKET OUTLOOK
Market value forecast
In 2020, the Indian food & grocery retail market is forecast to have a value of $692,902.2 million, an increase of 74.1%
since 2015.
The compound annual growth rate of the market in the period 201520 is predicted to be 11.7%.
Table 5: India food & grocery retail market value forecast: $ million, 201520
Year $ million Rs. million million % Growth

2015 398,075.1 25,525,891.2 358,785.3 11.8%
2016 443,692.0 28,450,994.2 399,899.8 11.5%
2017 495,443.5 31,769,469.9 446,543.5 11.7%
2018 553,116.0 35,467,620.9 498,523.7 11.6%
2019 618,769.3 39,677,532.5 557,697.2 11.9%
2020 692,902.2 44,431,173.3 624,513.1 12.0%
CAGR: 201520 11.7%
Figure 5: India food & grocery retail market value forecast: $ million, 201520

FIVE FORCES ANALYSIS
The food & grocery retail market will be analyzed taking supermarkets, hypermarkets and specialist retailers as players.
The key buyers will be taken as end-consumers, and food & grocery product manufacturers, farmers, agricultural co-
operatives as the key suppliers.
Summary
Figure 6: Forces driving competition in the food & grocery retail market in India, 2015
Competition between players is fierce due to the limited level of product differentiation and consumer's negligible
switching costs, combined with a challenging and volatile industry environment.
Since the vast majority of retail sales in the food & grocery industry come from food sales, analysis will focus largely on
this segment of the industry.
A lack of switching costs and the limitations in product differentiation lead to buyer mobility, which forces larger retailers
to maintain attractive pricing schemes. There is a rising pressure laid on players to adapt to fast changing consumer
needs and the winner should be able to position the desirable product at a price suitable for customers and
manufacturers. Whilst specialist, luxury or organic retailers do not feel the same price sensitivity, they are not able to
secure a large volume of customers, and may have no choice but to commit to long term supplier contracts in order to
secure a steady supply, quality, or specifically prepared products.
Potential new entrants may struggle to compete with the aggressive marketing and pricing policies of the existing
players. Nonetheless, relatively low entry and exit costs, the emergence of thriving health and ethical niches which are
sheltered from direct competition from current players, and strong historical growth, offer attractive prospects.
Food service (takeaways, vendors and restaurants) can be seen as a substitute to food retail products, however for the
vast majority of people it currently exists as an occasional accompaniment rather than a wholesale alternative.
Subsistence farming is a more direct substitute, sometimes replacing standard retail behavior outright, yet it is no longer
a common practice in many parts of the world.

Buyer power
Figure 7: Drivers of buyer power in the food & grocery retail market in India, 2015
The buyers in this industry are end-consumers. This significantly weakens buyer power; the loss of any one buyers
custom is unlikely to have a significant effect on a players revenues. Additionally, the standing of any individual
customer is diminished because of the sheer volume of potential customers. Having said that, the food retail industry in
India is still dominated by traditional retailers, such as bazaars and open air markets. As such, the loss of one customer
in these circumstances is likely to have much more of an impact than it would on a large retailer. Buyer power in this
sense is increased.
In India, the food retail industry is vastly different from that of other countries, particularly Western markets. Obesity is a
significant issue in many Western countries, with governments and institutions introducing healthy eating initiatives in an
attempt to tackle the issue. However, in India the health issue surrounding food consumption has tended to be
malnutrition.
Despite the strong economic growth seen in India in the last 20 years, it still has one of the highest rates of malnutrition
in children under the age of 5. It has been estimated that almost half of all India's children are underweight. As such,
while many Western markets have seen a culture of convenience develop, with frozen and tinned food becoming the
products of choice, this is not the case for the majority of the population in India. The emphasis here has been on
growing your own produce and shopping in open-air markets. Furthermore, brand loyalty is likely to have very little
influence here.
Overall, buyer power is assessed as moderate.

Supplier power
Figure 8: Drivers of supplier power in the food & grocery retail market in India, 2015
Large retailers often maintain relationships with a wide range of suppliers, which ensures stability and helps to offset the
dangers of local sourcing problems or price fluctuations. This strengthens retailers standing in relation to their suppliers
as their dependency is reduced, meaning any risks to retailers are minimized.
Where possible, long term contractual obligations are avoided and switching costs are kept to a minimum. With a firm
hold on key distribution channels, the leading retailers can dominate negotiations with certain suppliers. Smaller retailers,
such as specialist, luxury or organic outlets may find such negotiations difficult. The limited number of suppliers in niche
areas and the centrality of product quality or preparation type restrict the available range of sourcing options. With
switching costs subsequently higher, the balance of power shifts somewhat from smaller retailers to specialist suppliers.
Backward integration is possible, with some retailers growing their own produce and selling it on. This is particularly true
for small, independent retailers such as at open air markets. In this case supplier power is reduced. On the other hand,
forward integration by suppliers is possible if a manufacturer/grower decides to establish retail operations.
Whilst the need to satisfy consumer demand for popular products bolsters manufacturers, many others face the problem
of a high degree of retailer mobility as they switch suppliers in accordance with pricing pressures. Supplier power has
been affected by the surge of many retailers offering own-brand products, which may sideline certain suppliers. Suppliers
who are able to differentiate their product can wield some power over retailers, should their product be popular with the
end consumer. However, for food retail a vast swathe of products are commodities (such as fruit and vegetables) and
homogenous, which diminishes supplier power.
Overall, supplier power is assessed as moderate.

New entrants
Figure 9: Factors influencing the likelihood of new entrants in the food & grocery retail market in
India, 2015
The food retail industry in India is fragmented, with the majority of food retail being carried out through convenience
stores. However, a rise in incomes and a young population are driving consumerism in India, and with it are coming
changes in consumption patterns. Modern retail is expanding in the country, a trend that looks set to continue in the
coming years.
Market entry to the traditional segment of the industry would be relatively easy. In these circumstances, scale economies
are of little importance, with many selling products that they grow themselves. Furthermore, fixed costs are unlikely to be
high, particularly with regard to market stalls.
It is evident that modern trade in India is growing, which should theoretically mean that there is room for more retail
players to enter the industry. Industry growth has been good in recent years, which looks likely to continue in the coming
years. Such factors may appeal to potential new entrants.
Foreign direct investment (FDI) in India is complex, particularly with regard to supermarkets. Currently, FDI is permitted
up to 100% in single-brand retail. However, with regard to multi-brand retail, the maximum amount of FDI permitted is
51%. This also comes with various requirements, for example multi-brand retail stores can only be established at the
discretion of state governments. Currently, this is only permitted in Mumbai, Delhi and Bangalore. What's more, foreign
companies wishing to enter the multi-brand retail sector must invest a minimum of $100m, while at least 50% of the total
FDI is required to be invested in backend infrastructure (i.e. manufacturing, packaging, logistics etc.) within three years.
Such complexities surrounding foreign investment in the food retail industry are likely to be off-putting to foreign
companies contemplating entry.
Overall, the likelihood of new entrants to this industry is assessed as moderate at present.

Threat of substitutes
Figure 10: Factors influencing the threat of substitutes in the food & grocery retail market in
India, 2015
There are few substitutes to food & grocery retail. The dominant alternative to food retail is food service. Strong
marketing campaigns in the case of fast food companies, and cultural traditions with respect to sit-down restaurants,
mean both types may represent a relative alternative for many consumers. However, for the vast majority of people,
these accompany food retail rather than replace it.
A more direct substitute to food retail is found in subsistence agriculture, in which individuals or families farm food to
provide for their own personal needs. However, the emergence of market capitalism, machinery that enables growing on
a large scale, and increased population density mean subsistence agriculture is no longer common. The impact of this
substitute is fractional. Environmental concerns, increasing health consciousness, and fears over political or economic
instability may, in the long term, give this substitute a more significant role. However, it is unlikely to threaten food
retailers in the foreseeable future being both labor intensive and often involving considerable start-up capital.
With regards to tobacco, traditional nicotine replacement therapies such as gum, patches and lozenges are substitutes,
providing nicotine to alleviate cravings. Electronic cigarettes (e-cigs) are also becoming a threat on a global scale and
although they are not approved and are even prohibited in some countries, such products are widely sold and are seeing
some success.
The main substitute to household products is posed by homemade alternatives. End-users may prefer these on grounds
of price, or because they can control what ingredients are used in their preparation. However, any substitutes for
household products need to be prepared, which can be a time-consuming process requiring specific knowledge, and
may not provide the desired results, thus reducing the threat of substitutes. Furthermore, as the manufacturers are now
aware of the increasing demand for environmentally friendly and allergy free alternatives, they are incorporating these
qualities into their products, which, combined with their greater convenience, reduces the threat of substitutes.
The threat from substitutes is assessed as weak.

Degree of rivalry
Figure 11: Drivers of degree of rivalry in the food & grocery retail market in India, 2015
Competition is often fierce within the food & grocery retail industry. There are a number of large competitors in this
market, which face stiff competition with each other. In addition, there exists a large number of independent or specialty
retailers operating alongside these large incumbents.
Consumers face negligible switching costs, meaning retailers fight increased pressure to secure consumer's custom and
loyalty by attempting to cut prices. Larger retailers are pushed into competitive pricing policies due to the limited level of
differentiation across the basic product range. Rivalry is also increased by the close similarity of players, although they
may attempt to differentiate through products and price.
Following the recent global financial crisis customers generally tend to look for the same product in different retailers and
compare prices, due to higher levels of price sensitivity. The similarity of products means that customers are not so loyal
to the retailers and choose to shop elsewhere should the price be better.
Some companies operate in other industries as well offering electronics, home ware, apparel, pharmaceuticals and
more. This can help to absorb the temporary impact of declining food sales, or high supply price; however, food retail lies
at the heart of the business for many. This basic dependency gives rise to aggressive competition.
Rivalry is assessed as moderate overall in this industry.

LEADING COMPANIES
Bharti Enterprises Limited
Table 6: Bharti Enterprises Limited: key facts
Bharti Crescent, 1 Nelson Mandela Road, Vasant Kunj, Phase II, New
Head office:
Delhi 110070, IND
Telephone: 91 11 4666 6100
Fax: 91 11 4166 6137
Website: www.bharti.com
SOURCE: COMPANY WEBSITE MARKETLINE
Bharti Enterprises (Bharti) is an India-based diversified business group with interests in telecom, retail, real estate, fruit
and vegetable and financial services businesses. It also has interests in other areas such as training and capacity
building, and distribution of telecom and IT (information technology) products. The group, through its subsidiaries,
operates in Asia, Europe and Africa.
Bharti operates through its group companies which include: Bharti Airtel, Bharti Infratel, Bharti Realty, Beetel Teletech,
Bharti Realty, Centum Learning, Bharti Retail, Bharti AXA Life Insurance, Bharti AXA General Insurance, Bharti
Softbank, Jersey Airtel and Guernsey Airtel, Indus Towers and FieldFresh Foods.
Bharti Airtel is an India-based integrated telecommunications companies with operations in 20 countries across Asia and
Africa. In India, Airtel's product offerings include 2G, 3G and 4G services, fixed line, high speed broadband through DSL,
IPTV, DTH, enterprise services including national and international long distance services to carriers. In the rest of the
geographies, it offers 2G, 3G mobile services.
Bharti Infratel is a telecom passive infrastructure service provider. Bharti Infratel deploys, owns and manages telecom
towers and communication structures for various mobile operators across 18 states of India. It has a vast footprint of
over 35,000 towers and holds a 42% stake in Indus Towers Ltd, a Joint Venture between Bharti Infratel, Vodafone India
and Aditya Birla Telecom.
Bharti Realty is a realty company with expanding interests in commercial, retail and residential real estate. Bharti Realty
is engaged in developing commercial real estate in the central business district (CBD) areas of metropolitan cities, retail
real estate in the up-market localities of metropolitan cities and in a few prominent cities of Punjab, and high end
residential real estate in the Delhi NCR region, Mumbai and Bangalore, all in India.
Beetel Teletech is a sales and distribution company with focus on markets of SAARC (south Asian association for
regional cooperation), the Middle East, Africa and Latin America. It is engaged into distribution and marketing of smart
phones, cordless phones, modems, audio and video conferencing, free to air set top boxes, fixed cellular phones, and
fixed wireless terminals.
Centum Learning provides end-to-end learning and skill-building solutions to over 350 global firms, Central and State
Ministries, and public sector undetakings (PSUs) across 20 countries. It is present in around 70 African cities and 90
Indian cities, and provides training in key business metrics like customer service, distribution, sales, productivity and
profitability. Centum Learning's training and development experts provide customized learning solutions in 24 languages
to Fortune 500 companies across 21 industry sectors.
Bharti Retail is a wholly owned subsidiary of Bharti which operates easyday neighborhood stores and compact
hypermarket stores called easyday market. The merchandise at easyday market stores include apparels, home
furnishings, appliances, mobile phones, meat shop, general merchandise, fruits and vegetables, among others.

Bharti AXA Life Insurance is a joint venture between Bharti and AXA Group, which provides financial advice and
insurance solutions. It offers insurance and wealth management products and solutions.
Bharti AXA General Insurance is a joint venture between Bharti Group and AXA Group. Bharti AXA General Insurance
offers a range for retail, rural and commercial clients with cashless facilities at various hospitals. It has 59 branch offices
across India.
Bharti Softbank (BSB) is a joint venture between Bharti Enterprises and SOFTBANK CORP, parent corporation for one
of Japan's leading internet groups (SoftBank). BSB focuses and participates in the growth of the mobile internet
ecosystem in India with an emphasis on three key areas: social media, gaming and e-Commerce.
Jersey Airtel and Guernsey Airtel are subsidiaries of Bharti and offer mobile services under the Airtel-Vodafone brand on
the islands of Jersey and Guernsey respectively in the Channel Islands (Europe).
Indus Towers, a joint venture between Vodafone Essar (42%), Bharti (42%) and Aditya Birla Telecom (16%), is a mobile
towers company. Indus Towers operates in 15 telecom circles across India and provides services to all telecom
operators and other wireless service providers such as broadcasters and broadband service providers.
FieldFresh Foods is a joint venture company between Bharti and Del Monte Pacific. FieldFresh offers branded
FieldFresh fruits and vegetables across India and international markets, including Europe and the Middle East.
FieldFresh produces, markets and distributes farm fresh products, processed foods and beverages.
Key Metrics
As a privately-held group, Bharti Enterprises is not obliged to release its financials.

Future Retail Ltd.
Table 7: Future Retail Ltd.: key facts
Knowledge House, Shyam Nagar, Off Jogeshwari Vikhroli Link Road,

Head office:
Jogeshwari East, Mumbai 400 060, IND
Telephone: 91 22 3084 1300
Fax: 91 22 6644 2222
Website: www.futureretail.co.in
Financial year-end: March
Ticker: 523574
Stock exchange: Bombay
Future Retail Limited (FRL) is an India-based retailer that operates stores in multiple retail formats.
The company's businesses include retail and suppliers.
FRL's retail division operates hypermarket and supermarket, and home solutions retail formats in value and lifestyle
segments. The division's hypermarket and supermarket business is led by Big Bazaar, Fashion@Big Bazaar, Food
Bazaar and Foodhall brands. The company operates around 163 Big Bazaar stores and 186 Food Bazaar stores. The
division's home solutions segment includes HomeTown and eZone. HomeTown is a retail outlet for home-making
solutions. eZone offers national and international consumer electronic and durables brands.
The company's supplier division deals with supply partnerships to provide products and services through collaborative
development and implementation.
FRL's subsidiaries include the following: Future Home Retail Limited, Future Freshfoods Limited, Future Knowledge
Services Limited, Future Learning and Development Limited, Home Solutions Retail (India) Limited, Integrated Food
Park Private Limited, NuZone Ecommerce Infrastructure Limited and Winner Sports Limited.
Key Metrics
The company recorded revenues of INR110,572.4m (approximately $1,812.3m) in the fiscal year ended March 2015.
The company's operating profit was INR1,623.7 m (approximately $26.6m) in fiscal 2015. Its net profit was INR1,529.8m
(approximately $25.1m) in f

Metro AG
Table 8: Metro AG: key facts
Head office: Metro-Strasse 1, 40235 Dusseldorf, DEU

Telephone: 49 211 6886 0
Website: www.metrogroup.de
Financial year-end: September
Ticker: MEO
Stock exchange: Frankfurt
Metro is one of the leading international retail companies engaged in wholesale and retail operations through its group
companies. At the end of FY2015, the group operated 2,068 stores in 31 countries across Europe, Africa and Asia.
The group operates through four business segments*: Metro Cash & Carry, Media-Saturn, Real and others.
The Metro Cash & Carry segment is engaged in self-service wholesale trade. As of September 30, 2015, the segment
operated 764 outlets under Metro and Makro brand names in 26 countries across Europe and Asia. In Germany, the
segment also operates under Metro Gastro banner (previously, C+C Schaper).
Metro Cash & Carry primarily targets professional customers such as hotel and restaurant owners, catering companies,
independent retailers, service providers and public authorities. The segment also includes operations of Classic Fine
Foods Group (CFF). CFF operates in 25 Asian cities in 14 countries and acts as a supplier to premium hotels,
restaurants and catering firms. The segment offers nearly 50,000 different food and non-food products of branded
product producers as well as exclusive own-brand ranges. Metro Cash & Carry emphasizes on procuring its
merchandise from the local region. In most of the countries where it operates, nearly 90% of the merchandise is
purchased domestically. The segment offers various brand products and six exclusive own-brands, including Aro, H-
Line, Horeca Select, Fine Life, Rioba and Sigma.
The Media-Saturn segment operates consumer electronics stores across Europe. Media-Saturn's banners include Media
Markt, Saturn, Redcoon and 003.ru. Additionally, in 2015, Media-Saturn acquired majority stake in live shopping portal,
iBOOD, and in repair and services provider, RTS.
The Media Markt brand offers a range of products across categories such as consumer electronics, photography,
entertainment, telecommunications, new media, software and household appliances. In FY2015, Media Markt operated
808 stores with a sales area of up to 10,000 square meters in 14 countries across Europe. These stores stock an
average of 45,000 articles and a combined online offering with more than 30,000 articles.
Saturn stores stock an average of 45,000 items, including consumer electronics, new media, household appliances,
telecommunications equipment, computers, cameras and camcorders. The flagship stores of Saturn carry an inventory
of nearly 100,000 items. As of September 30, 2015, Saturn operated 199 stores in five countries across Europe. Media
Markt and Saturn also offer after-sale services.
Redcoon is engaged in sale of electronic products and books exclusively through the Internet. Approximately 260,000
consumers from eight European countries visit Redcoon daily. 003.ru offers electronic products for sale exclusively
through the Internet in Russia.
The Real segment offers food and non-food products through the chain of hypermarkets. As of September 30, 2015, the
segment operated 293 hypermarkets in one European country. The selling spaces of the Real stores range from 5,000 to
15,000 square meters, with store assortments of nearly 80,000 items. The segment's product portfolio range from food
items through electronic equipment to clothing.

The others segment includes Metro AG as the management holding company of Metro Group, the procurement
organization in Hong Kong, which also operates on behalf of third parties, in addition to logistics services and real estate
activities of Metro Properties, which do not attribute to any sales lines. These include specialty centers, warehouses and
head offices.
*In September 2015, Metro completed the sale of its entire department store business, including, 102 Galeria Kaufhof
stores and 16 Sportarena stores in Germany, 16 department stores of the subsidiary Galeria Inno in Belgium and 59 real
estate properties owned or managed by the Galeria Real Estate Group to Hudson's Bay Company. As a result, Galeria
Kaufhof is reported under discontinued operations in FY2015.
Key Metrics
The company recorded revenues of $65,704 million in the fiscal year ending September 2015, a decrease of 6.1%
compared to fiscal 2014. Its net income was $746 million in fiscal 2015, compared to a net income of $747 million in the
preceding year.
Table 9: Metro AG: key financials ($)
$ million 2011 2012 2013 2014 2015

Revenues 73,145.5 74,047.5 68,524.4 69,937.9 65,704.0
Net income (loss) 700.1 3.3 (105.4) 746.7 745.6
Total assets 37,708.9 38,573.2 31,966.0 31,070.7 30,684.6
Total liabilities 30,567.0 31,804.1 26,189.9 25,524.2 24,938.4
Employees 255,654 288,107 278,594 228,035 223,462
SOURCE: COMPANY FILINGS MARKETLINE
Table 10: Metro AG: key financials ()
million 2011 2012 2013 2014 2015

Revenues 65,926.0 66,739.0 61,761.0 63,035.0 59,219.0
Net income (loss) 631.0 3.0 (95.0) 673.0 672.0
Total assets 33,987.0 34,766.0 28,811.0 28,004.0 27,656.0
Total liabilities 27,550.0 28,665.0 23,605.0 23,005.0 22,477.0

Table 11: Metro AG: key financial ratios
Ratio 2011 2012 2013 2014 2015

Profit margin 1.0% 0.0% (0.2%) 1.1% 1.1%
Revenue growth (2.0%) 1.2% (7.5%) 2.1% (6.1%)
Asset growth (3.1%) 2.3% (17.1%) (2.8%) (1.2%)
Liabilities growth (3.7%) 4.0% (17.7%) (2.5%) (2.3%)
Debt/asset ratio 81.1% 82.5% 81.9% 82.1% 81.3%
Return on assets 1.8% 0.0% (0.3%) 2.4% 2.4%
Revenue per employee $286,111 $257,014 $245,965 $306,698 $294,028
Profit per employee $2,738 $12 ($378) $3,274 $3,337
Figure 12: Metro AG: revenues & profitability

Figure 13: Metro AG: assets & liabilities

MACROECONOMIC INDICATORS
Country data
Table 12: India size of population (million), 201115
Year Population (million) % Growth

2011 1,192.5 1.3%
2012 1,208.1 1.3%
2013 1,223.6 1.3%
2014 1,238.9 1.3%
2015 1,254.0 1.2%
Table 13: India gdp (constant 2005 prices, $ billion), 201115
Year Constant 2005 Prices, $ billion % Growth

2011 1,326.2 6.6%
2012 1,389.0 4.7%
2013 1,485.7 7.0%
2014 1,595.4 7.4%
2015 1,716.1 7.6%
Table 14: India gdp (current prices, $ billion), 201115
Year Current Prices, $ billion % Growth

2011 1,880.1 10.0%
2012 1,858.7 (1.1%)
2013 1,876.8 1.0%
2014 2,045.6 9.0%
2015 2,337.2 14.3%

Table 15: India inflation, 201115
Year Inflation Rate (%)

2011 9.1%
2012 10.2%
2013 9.5%
2014 7.7%
2015 7.2%
Table 16: India consumer price index (absolute), 201115
Year Consumer Price Index (2005 = 100)

2011 165.8
2012 182.8
2013 200.1
2014 215.6
2015 231.0
Table 17: India exchange rate, 201115
Year Exchange rate ($/Rs.) Exchange rate (/Rs.)

2011 46.8466 65.1733
2012 53.6119 68.6802
2013 58.4859 77.7676
2014 60.9620 80.8938
2015 64.1233 71.1453

METHODOLOGY
MarketLine Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross-
checked and presented in a consistent and accessible style.
Review of in-house databases Created using 250,000+ industry interviews and consumer surveys and supported by
analysis from industry experts using highly complex modeling & forecasting tools, MarketLines in-house databases
provide the foundation for all related industry profiles
Preparatory research We also maintain extensive in-house databases of news, analyst commentary, company
profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market
overview
Definitions Market definitions are standardized to allow comparison from country to country. The parameters of each
definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the
market and our clients
Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and
trends
MarketLine aggregates and analyzes a number of secondary information sources, including:
- National/Governmental statistics
- International data (official international sources)
- National and International trade associations
- Broker and analyst reports
- Company Annual Reports
- Business information libraries and databases
Modeling & forecasting tools MarketLine has developed powerful tools that allow quantitative and qualitative data to
be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can
then be refined according to specific competitive, regulatory and demand-related factors
Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date

Industry associations
Global Food Marketing Institute
655 15th Street, NW, Washington DC, 20005, USA
Tel.: 1 202 452 8444
Fax: 1202 429 4519
www.fmi.org
CIES The Food Business Forum
7, rue de Madrid 75008 Paris, FRA
Tel.: 33 1 4469 8484
Fax: 33 1 4469 9939
www.ciesnet.com
Related MarketLine research

Industry Profile
Global Food Retail
Food Retail in Europe
Food Retail in Asia-Pacific
Food Retail in China

APPENDIX
About MarketLine
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countries across the world. No other business information company comes close to matching our sheer breadth of
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And unlike many of our competitors, we cut the data padding and present information in easy-to-digest formats, so you
can absorb key facts in minutes, not hours.
What we do
Profiling all major companies, industries and geographies, MarketLine is one of the most prolific publishers of business
information today.
Our dedicated research professionals aggregate, analyze, and cross-check facts in line with our strict research
methodology, ensuring a constant stream of new and accurate information is added to MarketLine every day.
With stringent checks and controls to capture and validate the accuracy of our data, you can be confident in MarketLine
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Disclaimer
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MarketLine Industry Profile

Food & Grocery

Reference Code: 0102-2058

Publication Date: October 2016

India - Food & Grocery Retail 0102 - 2058 - 2015

MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 1

Market value forecast

India - Food & Grocery Retail 0102 - 2058 - 2015

MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 2

Market value ................................................................................................................................................................ 2

Market value forecast .................................................................................................................................................. 2

Category segmentation ............................................................................................................................................... 2

Geography segmentation ............................................................................................................................................ 2

Market rivalry ............................................................................................................................................................... 2

Market definition .......................................................................................................................................................... 7

Market Data ..................................................................................................................................................................... 8

Market value ................................................................................................................................................................ 8

Market Segmentation ...................................................................................................................................................... 9

Category segmentation ............................................................................................................................................... 9

Geography segmentation .......................................................................................................................................... 10

Market distribution ..................................................................................................................................................... 11

Market Outlook .............................................................................................................................................................. 12

Market value forecast ................................................................................................................................................ 12

Five Forces Analysis ..................................................................................................................................................... 13

Buyer power .............................................................................................................................................................. 14

New entrants ............................................................................................................................................................. 16

Threat of substitutes .................................................................................................................................................. 17

Degree of rivalry ........................................................................................................................................................ 18

Bharti Enterprises Limited ......................................................................................................................................... 19

Future Retail Ltd. ....................................................................................................................................................... 21

Country data .............................................................................................................................................................. 26

India - Food & Grocery Retail 0102 - 2058 - 2015

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Related MarketLine research .................................................................................................................................... 29

About MarketLine ...................................................................................................................................................... 30

India - Food & Grocery Retail 0102 - 2058 - 2015

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Table 6: Bharti Enterprises Limited: key facts ...............................................................................................................19

Table 7: Future Retail Ltd.: key facts............................................................................................................................. 21

Table 8: Metro AG: key facts ......................................................................................................................................... 22

Table 9: Metro AG: key financials ($) ............................................................................................................................ 23

Table 10: Metro AG: key financials () .......................................................................................................................... 23

Table 11: Metro AG: key financial ratios........................................................................................................................24

Table 12: India size of population (million), 201115 ....................................................................................................26

Table 14: India gdp (current prices, $ billion), 201115 ................................................................................................26

Table 15: India inflation, 201115 ................................................................................................................................. 27

Table 16: India consumer price index (absolute), 201115...........................................................................................27

Table 17: India exchange rate, 201115 .......................................................................................................................27

India - Food & Grocery Retail 0102 - 2058 - 2015

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Figure 12: Metro AG: revenues & profitability................................................................................................................24

Figure 13: Metro AG: assets & liabilities........................................................................................................................25

India - Food & Grocery Retail 0102 - 2058 - 2015

MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 6

All on-trade sales of food and beverage are excluded.

South America comprises Argentina, Brazil, Chile, Colombia, and Venezuela.

Scandinavia comprises Denmark, Finland, Norway, and Sweden.

India - Food & Grocery Retail 0102 - 2058 - 2015

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Year $ million Rs. million million % Growth

CAGR: 201115 11.3%

SOURCE: MARKETLINE MARKETLINE

SOURCE: MARKETLINE MARKETLINE