Neeraj Kumar Yadav (M1816)

Future Group is an Indian conglomerate headquartered in Mumbai, Maharashtra, India. The

company is known for having a significant prominence in Indian retail and fashion sectors,
with popular supermarket chains like Big Bazaar and Food Bazaar, lifestyle stores like Brand
Factory, Central etc. The group also has a notable presence in integrated foods
and FMCG manufacturing sectors. Future Retail Limited and Future Lifestyle Fashions
Limited, two operating companies of Future Group, are among the top retail companies
listed in BSE with respect to assets and in NSE with respect to market capitalization

Financial Data

During the financial year, the Company had a total income of ` 18,489.64 Crore. The total expenditure
during the financial year amounted to ` 17,874.46 Crore resulting in profit before exceptional item and
tax of ` 615.18 Crore as compared to profit of ` 368.28 Crore in previous year. The Profit after Tax for
the year under review is ` 11.31 Crore after adjusting non-cash exceptional item of ` 603.87 Crore
Financial Findings:-

Net Profit: Net Profit of the Company for financial year ended March 31, 2018 stood at `
11.31 Crore as compared to ` 368.28 Crore in the previous financial year. The decrease in the
net profit is on account of the one-time non-cash expense of ` 603.87 Crore due to loss on
sale of investments.

Sales: The Company’s Sales and Other Operating Income has increased from ` 17,075.09
Crore in previous financial year to ` 18,477.97 Crore with Y-o-Y growth of 8.22% for the
financial year ended March 31, 2018. The Company has also recorded Same Store Sales
growth of 9.9% for financial year ended March 31, 2018
Non Financial Data:-

Pillars of Growth
 Expansion of Small Store Network:
 Food & FMCG Brand Portfolio
 Omni Channel Network
 Fututre Pay , Scan , Pay and checkout

Recommendations:-
 Future Retail is well poised to lead the retail play in the Indian Consumption Sector
 Continue to focus on expanding the store network through large box and small box
formats
 Category mix & focus on next generation categories to enable increase in productivity
& create repeat customers
 Focus on Own Brands Mix across categories to drive margins
 Loyalty, Big Data & Analytics to play a critical role for increasing customer
stickiness
 Increasing Velocity to Sales to drive business growth & enable better utilization of
resources
 Future Retail will continue to lead the consolidation play in the industry & will focus
on increasing stake holder return
 Aditya Birla Fashion & Retail Ltd.
Aditya Birla Fashion and Retail Limited, formerly Pantaloons Fashion & Retail Limited, is a
fashion and lifestyle company. The Company is engaged in providing branded fashion
apparels and accessories, and the retail sale of clothing, footwear and leather articles in
stores. It operates through two segments: Madura Fashion & Lifestyle, and Pantaloons. Its
Madura Fashion & Lifestyle segment is engaged in manufacturing and distribution of
branded fashion apparel and accessories, and comprises over 1,800 exclusive brand outlets
(EBOs) and approximately 150 value stores. Its Pantaloons segment is engaged in retailing of
apparel and accessories, and comprises over 160 stores, including one Pantaloons Kids store
and approximately 30 Factory Outlets. The Pantaloons segment has a diversified customer
base with men, women, kids and non-apparels. The Company's brands include Louis
Philippe, Van Heusen, Allen Solly and Peter England.

The sales at maximum retail price (MRP) for each of these brands in the Aditya Birla Fashion
& Retail (ABFRL) stable was in the vicinity of Rs 1,000 crore in the year gone by. The
company also owns India’s first fast-fashion youth brand ‘People’, India’s largest fully
integrated fashion multi-brand outlet chain ‘Planet Fashion’, India’s largest premium
international brand retailer, ‘The Collective’ and the British fashion icon ‘Hackett London’s’
mono-brand retail in India.

It invests in key strategic themes, like building strong brands, enhancing portfolios, building
agile design and supply chain, expanding distribution footprints, digital transformation.

E-commerce retailers have given tough competition to ABFRL, with increasing discounts and
steal away prices. ABFRL has been focusing on innovative products, pre and post purchase
experience of the customers, FDI has been focused on real estate, residential developments,
due to which commercial developments have slowed down. Having stores in good malls
requires heavy rental payments which has made it economically unviable.

Having great penetration of E-commerce and international players in the Indian market has
made it difficult for the physical stores to retain talent. Apparel designing requires a lot of
creativity and imagination. It has become hard to fight for talented personnel with
international brands.

ABFRL has expanded its agreement with IBM. The strategic 10-year services agreement will
help ABFRL’s growth, enabling them to expand their store network across the country. As a
part of this agreement, IBM will bring in its global technology and automation expertise to
help enhance and manage ABFRL’s IT infrastructure with better availability of IT systems,
employee productivity through self-help solutions and improved disaster resilience. Last year
in April, Aditya Birla Online Fashion ( ABOF), the e-commerce arm of ABFRL, and IBM
had announced a new shopping experience to deliver a personalized and convenient shopping
experience powered by IBM Cloud and Watson.

IBM will provide infrastructure-as-a-service in a private cloud environment, enabling

ABFRL to scale their IT operations in line with their business growth. In leveraging IBM’s
deep technology and services expertise, ABFRL aims to build a world-class IT environment
to support its strong growth in India. Aditya Birla Fashion and Retail Limited (ABFRL) has
acquired 51 per cent stake in Finesse International Design, that runs bespoke apparel retail
brand Shantanu & Nikhil, for Rs 60 crore. Established in 2007, Finesse runs five stores
selling ethnic apparel, footwear and accessories, with annual sales of Rs 35 crore. The
acquisition is through combination of primary equity infusion and secondary share purchase,
the company said in a statement. Indian consumers have been seeking contemporary clothing
in the recent years and ABFRL has been facing competition from brands like FabIndia and
Manyavar. Recently, ABFRL acquired Jaypore.com, an artisanal e-tailer for Rs 110 crore as
the group entered a largely unorganised market of traditional and ethnic products.

New brands introduction and store expansions are resulting in better same-store sales growth.
This has led to a better revenue growth of 23% year-on-year to ₹2,281.5 crore in the quarter
ended 31 December. Some of its businesses such as the "fast fashion" segment, though, have
been reeling under competitive pressure. This segment continues to suffer, although operating
losses have narrowed to ₹12 crore in the December quarter from ₹24 crore in the year earlier.
Analysts at JM Financial Institutional Equities say losses at "fast fashion" are an area of
concern. Still, analysts report that the apparel industry is intensely competitive. Store
operations can get unwieldy if real estate and rental costs rise. Further, online and e-
commerce platforms can pile pressure on margins. For all its revenue growth, therefore, the
margin growth in the business has not been much, dragged down by impairments and
marketing costs.
Reliance Retail (Tag Line: Aapki kushi hamari khushi)

Mission:

 To lead the industry by providing innovative financial products and

service.
 Shareholder satisfaction by profit maximization, Customer first strategy.
 Provide employees with motivating work environment, equal
opportunities.

Vision:

To lead the industry while generating value to stakeholder, be pioneer in setting

ethical standard and everyone’s investor.

Objective:

 Create synergetic effect by creating high quality and diversified portfolio

 Provide diversified financial service with focused people.
 Appreciate uniqueness of each customer requirement and serve the
customers with product flexibility
 Diversification of sources of fund through sustained growth.

Values: Care, Fairness, Honesty, Integrity, Purposefulness, Respect,

Responsibility, Safety & truth.

 Reliance retail has expanded to

  Number of employees: 73000+ (2018)

Financial Report (2018-2019)

Operating Revenue Over INR 500 cr

EBITDA 101.05 %

Net worth 32.95 %

Debt/Equity Ratio 0.38

Return on Equity 13.71 %

Total Assets 106.34 %

Fixed Assets 145.08 %

Current Assets 109.01 %

Current Liabilities 210.31 %

Trade Receivables 203.49 %

Trade Payables 109.64 %

Current Ratio 1.00

Current ratio is equal to 1 which means that current assets is equal to current
liabilities.

Reliance Retail became the first Indian retail company to clock more than Rs
100,000 crore in annual revenues

For the year 2019, Reliance Retail delivered a record-breaking performance in

revenue and profits growth for the year 2018-19.

Reliance Retail achieved another milestone and becomes the first Indian retailer
to cross more than 10,000 stores. It currently operates 10,415 retail stores in
over 6,600 cities covering an area of over 22 million sq ft as on 31st March,
2019. Compared to that Future Group, the second biggest retail enterprise in
India, operates about 2,200 outlets nation-wide with about Rs 35,000 crore of
annual consolidated revenues for the retail conglomerate.
Reliance Retail has added 510 stores during the fourth quarter and 2,829 stores
during the entire fiscal year.
Its growth momentum continued in the grocery consumption basket with strong
like-for-like growth across Reliance Fresh, SMART and Reliance Market stores
in the fourth quarter. For FY 19, Reliance Retail added 81 new stores in the
grocery consumption basket taking the total count to 612 Reliance Fresh,
SMART and Reliance Market stores as on 31st March 2019.

During the year, Reliance Retail opened 76 new Digital stores, 2,219 Jio Stores
and operates more than 8,000 Digital and Jio Stores put together as on 31st
March 2019.

In 2018-19: 77.07 per cent increase in its pre-tax profit to Rs 1,923 Crore

Reliance Retail added 81 new stores in the grocery consumption basket taking
the total count to 612 Reliance Fresh, SMART and Reliance Market stores as on
March 31, 2019
D-MART

D mart Stocks are listed at rupees 1463.80

D mart has opened 24 new stores in year 2018-19, thereby taking the total count to 155 stores
across the country which can be related with both 62,57% growth in net profits as the figures of
FY 2018 stood at Rs, 78,466.03 Lakhs as against the previous year’s Rs, 48,263.85 Lakhs &
26% growth in the total income for FY 2018 Rs, 1,508,154.07 Lakhs compared with the previous
year’s total income of Rs, 1,191,240.76 Lakhs.

Company opening 8 new stores during June quarter can be related with 31.83% YoY jump in
consolidated net profits at 323 crores for June quarter compared with previous year’s 245 crore
profits.

D mart has accelerated in its strategy for opening new stores from 10 stores per annum to 15-20
stores per annum and is targeting to accelerate it further to 30 stores per annum but that will not
be enough to cater the competition with the aim of “Everyday low cost, everyday low price”.

It seems to me that for catering the competition avenue supermarts ltd. Should use E
commerce to best of its advantage. The focus should be to increase the traffic on e-commerce
platform as the customer mind set is changing from walking in stores to buying online from
reliable source.

As D mart is already known for its deals and offers, it should focus on approaching new
customers through E commerce and offer attractive deals online. Increasing E- traffic will also
help in boosting traffic in physical stores and both will reinforce each other satisfying the second
order fit for the company.

According to Edelweiss, Avenue Supermarts has continued to gain market share on the back of
its "Every Day Low Pricing" strategy. However, intensifying competition is expected to make
incremental margin expansion a difficult task, the brokerage adds; so focusing on E commerce
will also reduce the operating expenses which will give an extra edge to the company in
competition.