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The Japanese have always loved fresh

fish. But the water close to Japan has not


held many fish for decades.

So to feed the Japanese population,


fishing boats got bigger and went further
than ever. The further the fishermen
went, the longer it took to bring the fish.
If the return trip took more time, the fish
were not fresh.

To solve this problem, fish companies


installed freezers on their boats. They
would catch the fish and freeze them at
sea. Freezers allowed the boats to go
further and stay longer.

However, the Japanese could taste the


difference between fresh and frozen fish.
And they did not like the taste of frozen
fish. The frozen fish brought a lower
price. So, fishing companies installed
fish tanks.

They would catch the fish and stuff them


in the tanks, fin to fin. After a little
thrashing around, they were tired, dull,
and lost their fresh-fish taste. The fishing
industry faced an impending crisis!

But today, they get fresh-tasting fish to


Japan .
How did they manage?

To keep the fish tasting fresh, the


Japanese fishing companies still put the
fish in the tanks but with a small shark.
The fish are challenged and hence are
constantly on the move. The challenge
they face keeps them alive and fresh!
Have you realized that some of us are
also living in a pond but most of the time
tired and dull ?

Basically in our lives, sharks are new


challenges to keep us active. If you are
steadily conquering challenges, you are
happy. Your challenges keep you
energized.

Don't create success and revel in it in a


state of inertia. You have the resources,
skills and abilities to make a difference.
Put a shark in your tank and see how far
you can really go!

'Weakness of attitude becomes weakness


of character' - Albert Einstein
While every man is different, there are certain things about a woman that will make
any man stand up, take notice, and make him decide he wants to get to know you on
a deeper level.

If you want to win the right man's heart, you need to know what it is that makes a man go
from just feeling casual about dating you to wanting and needing you on a deeper level.
I'm going to take you inside a man's mind you so you understand what it takes to trigger
this kind of connection.

And I'm talking about a real man - one who is mature and grounded on a physical, mental,
emotional, and spiritual level. They are on a great path and open to growing on a deeply
personal level. I'm betting that's exactly why you're on this site: to find a quality kind of
guy - a real man looking for a real relationship.

So what does a mature, REAL man want in a woman?

#1) A Real Man Wants A Woman Who Is Playful

There's something that drives men wild and invites them into a deeper level of
"connection" - play.

Men love to be active and to play. They were raised to express themselves and connect
with those around them through action.

Unfortunately, too many women seem to forget this and want to talk their way into a
man's heart. But the fact is that men don't "feel it" for you because of what you say. It's
not your words that make a man attracted to you, it's the experiences you create with him.

Watch or play sports together, be competitive in casual games like ping pong - even add a
little teasing and sarcasm here and there - and you'll really ramp up the attraction and
interest.

#2) A Real Man Wants A Woman Who Is Independent

Lots of women mistakenly believe that men are looking for a "weaker" woman who will
make them feel like they are smarter and more powerful.

Nothing could be farther from the truth.

Real men want a woman who inspires them because she has great things going on her
own life. They want a woman who has her own purpose other than being in a relationship.

A great guy isn't intimidated by independence and success. What matters to a man is that a
woman still has space in her life for a great relationship and is grounded and present when
she's with him.
The best way to communicate this to a man is to stay busy in your own life and not
suddenly make him your world. Don't drop your own interests, responsibilities, and
friends just to be with him. And then, when you are with him, really BE with him - have
fun and give your attention to him and what you're doing together.

#3) A Real Man Wants A Woman Who Is Emotionally Mature

If a man feels attracted to a woman, eventually there's going to be a situation that comes
up where you and a man will see something differently and misunderstand each other.

How will you respond to this and share your feelings?

A woman who has the maturity to not blame or criticize a man for what she's feeling, but
to share her feelings in an honest and authentic way that helps a man better understand her
will be attractive to a man. How a woman handles her emotions is one of the most
important things men look for when deciding whether or not to get serious with a woman.
If she lets her emotions get out of control, this is a big red flag to him.

On the other hand, if she can present her feelings to him in a calm, non-dramatic manner,
she will win his respect and make him feel like she's the kind of woman who will be a real
partner to him. He'll see that she can handle things with a cool head rather than becoming
a damsel in distress he has to rescue.

#4) A Real Man Wants A Woman He's Intensely Attracted To

Fact: Men aren't as scared of commitment and relationships as they are scared of being in
a relationship with a woman where there is no passion and attraction.

A common way women accidentally kill the attraction men might be feeling is by either
trying too hard to get him to like you, or by acting like the relationship is too serious too
soon.

Relax and let things happen naturally. Make sure you do and say things that interject fun
and humor into your relationship from the very start. There's nothing more appealing to a
man than a great woman who knows how to relax and have fun.

You can do this through playful teasing, flirting, humor, and being unpredictable (in a
good way). For instance, instead of talking about what he does for a living when you meet
him (yawn), ask him about what sports he plays and what drives him. Once you're in a
relationship, don't be afraid to shake things up. If you normally go to brunch on Sundays,
suggest something completely different like a bike ride and a picnic. Mixing things up
keeps the relationship fun for both of you, and being a woman who is open to new
experiences is very attractive to him.
There are specific characteristics that make a man see you as a woman he wants to get to
know on a deeper level. To learn more about what makes a man feel intensely attracted to
you, subscribe to Christian's free e-newsletter.

You'll get an insider's view into the male mind, including what he thinks about dating and
what makes him want to commit to one woman.

Click here to get your FREE "Catch Him And Keep Him" Newsletter

Christian Carter is a globally acclaimed dating / relationship expert and author of the
top-selling eBook "Catch Him And Keep Him: A Woman's Guide To Finding Mr. Right
And Keeping Him Hooked For Good."

Christian has taught thousands of women how to "go inside the mind of man" to become
more successful with dating, relationships, and love. Through his success-proven eBook,
expert newsletters and in-depth programs, Christian delivers the "ultimate insider's
perspective... as to what men really want, giving women the understanding and insight
they need to find, date, and create long-lasting relationships with their ultimate "Mr.
Right."

About Henkel

Henkel operates worldwide with leading brands and technologies in three business areas: Laundry & Home Care,
Cosmetics/Toiletries and Adhesive Technologies.

Founded in 1876, Henkel holds globally leading market positions both in the consumer and industrial businesses
with well-known brands such as Persil, Schwarzkopf and Loctite.

Henkel, headquartered in Düsseldorf / Germany, has about 50,000 employees worldwide and counts among the
most internationally aligned German-based companies in the global marketplace.

In India:

Henkel India Ltd: Henkel India Ltd., established in 1987 is a subsidiary of Henkel AG & Co. KGaA, Germany.
Headquartered at Chennai in India, Henkel India Ltd., operates in business areas of Laundry, Home Care,
Cosmetics, Toiletries and Hair Care. It comprises of national and international brands such as Pril, Henko, Fa,
Margo, Mr. White, Chek, Bref, Igora Royal, BC Bonacure, Strait Therapy, Glatt & Natural Styling and Osis.

Henkel Adhesive Technologies India Private Limited is a subsidiary of Henkel AG & Co. KGaA, Germany.
Henkel Adhesive Technologies has manufacturing facility in Jejuri, Maharashtra. Henkel Adhesive Technologies
operates in the business areas of manufacturing Loctite anaerobic adhesives, cyanoacrylate adhesives, silicone
sealants and polymer composites. Loctite products provide solutions across whole spectrum of adhesives
technologies and manufacturing processes. They are used in as diverse as electronics, automotive, aerospace,
biomedical and many manufacturing industries.

Henkel Teroson India Limited, headquartered at Gurgaon is a Joint Venture Company of Henkel KGaA and
Anand Automotive Systems and has Technical License with Sunrise MSI Corporation Japan. Henkel Teroson India
has manufacturing facilities at Gurgaon, Chennai and Parwanoo. Henkel Teroson India is TS 16949, ISO 14001
and OHSAS 18001 Certified Company by DQS of Germany. The company manufactures and supplies Adhesives,
Sealants and NVH Products to all Automotive OEM’s in India
Henkel Chembond Surface Technologies Ltd., established in 1996, is a joint venture between Henkel KGaA
and Chembond Chemicals Ltd. Headquartered in Navi Mumbai, India, Henkel Chembond operates in the business
areas of Metal Treatment Chemicals, which includes pretreatment chemicals, neutral cleaners, lubricants, and
coatings. The company offers its products to the Indian automotive OEM’s and component suppliers, steel
industry, general industry, appliance, construction equipment, aviation, defense, and aluminum customers. The
renowned brands offered by Henkel Chembond in the country include Bonderite®, Multan®, P3®, Turco®,
Autophoretic®, Aquence®, and Passerite®. Henkel Chembond’s manufacturing facilities are located in Tarapur
and Sitarganj with warehouses and offices across the country.

Henkel CAC Pvt Ltd (formerly Converter Adhesives and Chemicals Pvt Ltd.), established in 1985 is a subsidiary
of Henkel AG & Co. KGaA, Germany. Headquartered at Mumbai in India, Henkel CAC operates in business areas
of manufacturing of solvent based, solvent free and cold seal laminating adhesives used in flexible packaging
industry. Most of manufactured items comes under the brand of Liofol. In addition to these Liofol products Henkel
CAC sells the legacy CAC products in domestic and International markets.

Henkel has three globally operating business sectors:

Films

News

Laundry & Home Care Cosmetics / Toiletries Adhesive Technologies

The Company’s success story started with a Henkel's cosmetic division is one of the Henkel is the world market leader in
product from the Laundry & Home Care largest of its kind in the world and its brand- adhesives, sealants and surface treatments
business sector. name products business is continuously for consumers, craftsmen and industrial
expanding. applications.

Hi hemant,

Over the years, I've sent you information about many

different tools and approaches to help you with your

mental, emotional, and spiritual growth.


This email, however, is particularly important.

Why? Because I want to tell you about something

that can dramatically accelerate your growth, mentally,

physically, emotionally, and spiritually.

Please, take a moment to read it carefully.

I've been fortunate to develop a friendship with

the great author, philosopher, and spiritual teacher,

Ken Wilber. Not too long ago, Ken and his amazing

brain-trust (some of the smartest and most spiritually

advanced people on Earth) created what I think is the

most comprehensive collection of tools for personal

and spiritual growth...

....I've ever seen.

This tool kit is called the Integral Life Practice Starter Kit

(or, ILP) , and I'm going to suggest that you get a copy for

yourself. It's one of the best growth tools I've EVER seen,

it's not expensive, and I know it will change your life.


To get your copy--or just to find out more about it--just

click here: http://www.selfgrowth.com/products/intergrallife.html

And, if you do get a copy before Wednesday, August 25th, you'll also

get several valuable bonuses. To see what they are, just go to:

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Please go check it out now, while you're thinking about it

Food Processing Sector in India

The food processing sector is critical to India’s development. It establishes vital linkages and
synergy between industry & agriculture, the two pillars of the economy. India is the world’s second
largest producer of food and holds the potential to become the food provider of world. The growth
of this industry will bring immense benefits to the economy, raising agricultural yields, enhancing
productivity, creating employment and raising life-standards of people across the country, especially
in rural areas.

This industry ranks fifth in the country and employs 16 lakh workers, comprising 19% of the
country’s industrial labour force. It accounts for 14% of total industrial output with 5.5% of the
GDP. Its turnover is estimated at Rs.1,44,000 crore, of which Rs.1,11,200 crore is in the
unorganised sector. The liberalisation of the Indian economy and world trade and rising consumer
prosperity has thrown up new opportunities for diversification in the food-processing sector and
opened new vistas for growth.

Fruit and Vegetable Processing– National Environment

India has made a good progress on the horticultural map of the world with a total annual production
of horticultural crops touching over 149 million tonnes. India is the second largest producer of the
fruits (45.5 Million tonnes) and vegetables (90.8 Million tonnes) in the world, contributing 10.23%
and 14.45% of the total world production of fruits and vegetables respectively. It is also the largest
producer, consumer and exporter of spices.

The fruit and vegetable processing industry in India is highly decentralized. A large number of units
are in the cottage/home scale and small scale sector, having small capacities upto 250
tonnes/annum though big Indian and multinational companies have capacities in the range of 30
tonnes per hour or so. The prominent processed items are fruit pulps and juices, fruit based ready-
to-serve beverages, canned fruits and vegetables, jams, squashes, pickles, chutneys and
dehydrated vegetables. More recently, products like frozen pulps and vegetables, frozen dried fruits
and vegetables, fruit juice concentrates and vegetable curries in restorable pouches, canned
mushroom and mushroom products have been taken up for manufacture by the industry. The
processing level in India is estimated to be around 2%, as compared to about 80% in Malaysia,
30% in Thailand, and 60-70% in the UK and USA.

The domestic consumption of value added fruit and vegetable products is however, very low
compared to the primary processed food in general and fresh fruits and vegetables in particular
which is attributed to higher incidence of tax and duties including that on packaging material, lower
capacity utilisation, non-adoption of cost effective technology, high cost of finance, infrastructural
constraints, inadequate farmers-processors linkage leading to dependence upon intermediaries. The
inability for market promotion is an important reason for inadequate expansion of the domestic
market.

India’s share in the world trade of horticultural processed products too, is miniscule – less than 1
per cent. This compares very unfavourably with countries like Malaysia (83%), Philippines (78%),
Brazil (70%) and US (70%). India’s major exports are in fruit pulp, pickles, chutneys, canned fruits
and vegetables, concentrated pulps and juices, dehydrated vegetables and frozen fruits and
vegetables.

Supply chain efficiencies together with a focused approach to enhance exports are the key to ensure
that India is able to successfully tap new product/market opportunities. India has the potential to
achieve a 3% share in the world trade of agricultural and food products by 2015. This implies an
annual growth rate of 14% till 2010 and 15% annual growth from 2010 as tabulated below:

Year World Exports* India’s Exports India’s Share (%) Growth Rate (%)
2003 522 8 1.5 -
2010 770 15 2.0 14

2015 1020 30 3.0 15


*World Exports of 2010 & 2015 are projected on the basis of CAGR of 6% for the 5year period
(1999-2003)
Source: Vision Strategy & action Plan for Food Processing Industries in India. Prepared by Rabo
India Finance Pvt Ltd for Ministry of Food processing Industries, Government of India April 2005

Major Challenges, Constraints and Concerns

Despite policy initiatives, growth potential and significant achievements, there are several disturbing
trends as delineated here :
• In India, the value addition to food fortification is only 7% compared to as much as 23% in

China, 45% in Philippines and 188% in the UK. The small-scale and unorganised sectors account
for 75% of the total industry.
• External liberalisation poses threats of stiffer competition under a new world trade order

with WTO agreements relaxing quantitative restrictions and non-tariff/sanitary barriers on


importing countries which exposes the Indian farmer to world market forces. Under the new trade
regime, the food sector will be confronted by challenges of trade related Intellectual Property
Rights, comprising patent laws, copyrights, trade links, etc.
• The inherent strength of high raw material production and large domestic market base has

to be buttressed with operating processing units at optimum capacity levels as per economies of
scale which would enable achieving a competitive edge over imported products.
• Advances in bio-technology have enabled production of Genetically Modified (GM) foods.

These have already appeared in some countries. GM foods need be critically examined on their
good and adverse impacts on human health.
• Taxes on processed food in India are among the highest in the world. No other country

imposes excise duty on processed food and distinguishes between branded and unbranded food
sectors for taxation. There is excise duty of 16% in the form of CENVAT levied on food products.
Besides there is sales tax, octroi, mandi samiti, entry tax and customs duty on material, levied by
the Central/State/Local bodies. The net effect ranges from 21% to 30% on various food items.
• Commercial R&D activities in the food industry have remained confined to only a few areas.

R&D activities have scarcely emerged from the laboratory to be extensively adopted on the field.
• Indian brands have yet to acquire an image in the international markets because of poor

global marketing.
• Most Financial Institutions lack capacity to appraise hi-tech export-oriented projects. There

are no suitable insurance schemes for such projects, most of which deal in export of perishables. In
financing such projects the banks face considerable credit risks. With new technology, the risk
perception is higher than the existing one.
• The sector has been characterised by poor marketing, transport and communication

infrastructure. The market density of fruits and vegetables is low and facilities for storage and cold
chains in the hinterlands are woefully inadequate. Erratic and inadequate power supply, lack of
roads, education and health facilities and null or low rural industrialisation accentuates the
problems.

Shoppers Stop Limited was founded by K Raheja Corp in 1991 laying the foundation of the
modern retail industry in India. It started operations with the first store in suburban Mumbai and is
now a multi-channel retailer with 33 large format department stores and online presence.

From its inception, Shoppers Stop has progressed to become a premier Fashion & Lifestyle
destination for the family. Today, Shoppers Stop is known for its superior quality products,
services and above all, for providing a complete shopping experience.

With an immense amount of expertise and credibility, Shoppers Stop has become the highest
benchmark for the Indian retail industry. In fact, the company’s continuing expansion plans aim to
help Shoppers Stop meet the challenges of the retail industry in an even better manner than it
does today.

Shoppers Stop invested in and acquired the Crossword Bookstores which now operates more
than 50 stores across the country. It has also invested in HyperCITY, a hypermarket which has
been rated as amongst the top 100 stores worldwide.

With exclusive brands as well as domestic and international brands, Shoppers Stop continues its
expansion across the country with the department stores, bookstores and hypermarkets.

Shoppers Stop also operates specialty stores for expectant mothers and children in arrangement
with Mothercare, and cosmetic boutique stores with MAC.

A JV with The Nuance Group of Zurich operates airport retail stores at Bangalore and Hyderabad
airports in India.

Shoppers Stop also has an online store @ http://www.shoppersstop.com which within a few
months of launch has become one of the most popular shopping destinations for online shoppers.

Headquarters Mumbai Area, India


Industry Retail
Type Public Company
Status Operating
Company Size 5,000 employees
2007 Revenue 8,881 mil [INR] (28%)
Founded 1991
Common Job Manager 12%
Titles Department Manager 9%
Merchandiser 6%
Visual Merchandiser 6%
Unit Head 5%

Top Schools Univ. of Mumbai 17%


National Inst. of Fashion Tech. 13%
Univ. of Pune 4%
Delhi Univ. 4%
Kendriya Vidyalaya 3%

Median Age 29 years


Median Tenure 2 years
Gender Male 69%
Female 31%

Common Job Manager 12%


Titles Department Manager 9%
Merchandiser 6%
Visual Merchandiser 6%
Unit Head 5%

Top Schools Univ. of Mumbai 17%


National Inst. of Fashion Tech. 13%
Univ. of Pune 4%
Delhi Univ. 4%
Kendriya Vidyalaya 3%

Median Age 29 years


Median Tenure 2 years
Gender Male 69%
Female 31%
MUMBAI: Retail firms are expected to see healthy earnings growth in July-Sept on an uptick in
the economy that boosted purchasing power and in turn their same-store sales.

Riding high on buoyant sentiment, the companies expanded their footprint, which is also
expected to reflect in the profit numbers.

A media poll of brokerages expects Pantaloon Retail, the country's largest listed retailer, to report
a 29 per cent rise in net profit on a sales growth of 32 per cent.

Watch and jewellery retailer Titan's profit is seen jumping 41 per cent and sales 34 per cent.

"We expect double-digit same-store sales growth to continue and that will support a healthy rise
in revenues and margin expansion on a year-on-year basis," said an analyst with brokerage
Edelweiss.

Same-store sales, which is sales at stores that have been in existance for over a year, are a key
indicator of growth for retailers.

Pantaloon Retail is expected to benefit from increased offtake from the monsoon and pre-
Independence Day discounts which resulted in same-store sales growth of 30-40 percent,
analysts said.

"Pantaloon's presence across price points and categories helps the company to be in a better
position than all its peers. A double-digit same-store sales growth and further space addition will
lead to healthy growth in revenues," said Viraj Nadkarni, an analyst with Angel Broking.

"We expect it to lead with a 43 per cent top-line growth."

However, numbers of Pantaloon Retail are not strictly comparable with year-ago figures due to
the spin-off of its value retail business under Future Value Retail in September and the merger of
the Home Retail segment with itself, in February.

K Raheja group-owned Shoppers Stop is also expected to post a steady growth on the back of a
pick-up in lifestyle retailing.

"Shoppers Stop's performance is expected to continue to improve in the coming quarters on the
back of a pick-up in consumer demand for lifestyle retailing and profit growth will be strong due to
consolidation with Hypercity," brokerage Edelweiss said in a note.
For Titan, an analyst with Motilal Oswal expects watch and jewellery volumes to boost sales by
20 per cent.

"There is likely to be a slight dip in margins as premium watches sell more during the Diwali
season which will be factored in quarter three this time," he added.

Going ahead, contribution from lifestyle retail is seen rising significantly.

"While we expect value retail to strengthen further, we expect lifestyle retail to extend its growth
trajectory as upbeat consumer sentiment should translate into higher demand for lifestyle goods,"
said Angel Broking's Nadkarni.

Welcome to the Hatsun world, India's largest private dairy. From a modest icecream manufacturer to one of the leading names in
India's dairy sector in just a span of three decades, Hatsun now stands majestically as a hallmark of successful entrepreneurship.

Be it in the dedication to quality, in employing the world's latest technology, innovative marketing strategies, or bringing prosperity
to hundreds of thousands of farmers in the south.

It started as a creamy dream in 1970: Arun Icecreams, the rich, delicious brand that has captured the hearts of millions of
icecream lovers. With over 70 delightful varieties it is the No. 1 selling icecream in south India. Arun Icecreams is manufactured at

the most modern plant of its kind in Chennai. From the ingredients, to the packaging and distribution stringent quality control is
maintained at every stage which has made Arun Icecreams the first icecream brand in India to win the 9001 certification for quality

and world-class manufacturing facilities. Arun Icecreams reaches the consumers through the largest network of exclusive parlors
in India. These and the many Arun mini-parlors in the rural areas provide employment to thousands of people. When the vision is

clear and the dedication total, growth follows, and Hatsun expanded.
When the market was ruled by unhygienic milk, Hatsun came up with Arokya - the standardized, homogenised and bacteria

clarified milk. Arokya milk is still unsurpassed in purity, thickness and quality and has made it one of the most preferred milk brand
consumed by several hundred thousand households every day and then came Hatsun Komatha. This product is Hatsun's proud

contribution of a superior quality, lower fat milk which Hatsun calls 'Cow's milk'. Komatha is the perfect symbolization of the values
and attributes of the provider of fresh milk - the cow. No wonder then Hatsun Komatha milk is hailed as the most suitable milk for

the whole family. Loved by kids and adults alike for its taste and freshness.
Hatsun handles a total 1.8 million litre a day. Hatsun's quest for quality starts at procurement, two times a day, 365 days of the

year at over a thousand collection centers, from more than a hundred thousand farmers. Hatsun sources its milk with an ever
watchful eye, always keen on quality. It is an enthusiastic and bustling activity when milk takes its first step in its journey to the

consumers' homes.

Code of Conduct for Directors and Senior Management Personnel


Hatsun Agro Product Limited has long believed in the ethical conduct of business and to that end has maintained a Code of
Conduct for Directors and Senior Management Personnel to establish standards to conduct business ethically. All Directors and
Senior Management Personnel conduct shall be governed by this Code of Conduct in order to promote:

The following principles guide their conduct :


1. Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and
professional relationships;
2. Full, fair, accurate, timely, and understandable disclosure in reports and documents that the company files with, or submits to,
the Stock Exchanges, Registrar of Companies, Securities and Exchange Board of India and in other public communications made
by the company;
3. Compliance with applicable laws, and governmental rules and regulations;
4. The prompt internal reporting of Code of Conduct violations to an appropriate person or persons identified in the code; and
5. Accountability for adherence to this Code of Conduct.
1. Honest and Integrity:
The Directors and Senior Management Personnel (collectively referred to as "Officers") shall act honestly, in good faith and in the
best interests of the Company as a whole in all of their dealings for the company. There will not be any discrimination on the
grounds of a person's race, religion, gender, marital status or disability. There will not be false promises or commitments and the
Company does not intend, or would be unable to honour. Officers shall adhere to the truth and should not mislead directly or
indirectly nor make false statements, nor mislead by omission.

2. Confidentiality of Information:
Confidential Information received by the Officers in the course of their duties remains the property of the Company and should not
be disclosed to any third person without the prior written consent of the Company unless the disclosure is required by law or in
accordance with their duties as an Officer. Officers will respect the privacy of others.

3. Personal Transactions and no misuse of information, position and


property:
Officers owe the Company a duty of loyalty. All personal or other business dealings of Officers will be kept separate from their
dealings as an Officer of the Company and shall not misuse information, their position or opportunities arising as a result of their
position, improperly to gain advantage for themselves or for someone else or to cause detriment to or compete with the Company.
Officers shall not use the name of the Company to further any personal or other business transaction. The Officers shall use
goods, services and facilities provided to them by the Company strictly in accordance with the terms on which they are provided.

4. Disclosure of Interests:
Officers shall fully disclose active private or other business interests promptly and any other matters which may lead to potential or
actual conflicts of interest in accordance with such policies that the Officers may adopt from time to time. Officer shall fully
disclose all relationships they have with the Company in accordance with policies on independence that they may adopt from time
to time. The dealings with the Company must always be at arms length to avoid the possibility of actual or potential conflict of
interest.

5. Compliance with the Law:


Officers should not engage in conduct likely to have an adverse effect on the reputation of the Company. Officer must comply with
all laws, rules, regulations and corporate governance systems of the Company at all times.

6. Lawful and Ethical Behaviour:


Officers will promote and encourage ethical behaviour. If an Officer becomes aware of unlawful or unethical behaviour, he or she
will report it to the Chairman or Chief Executive Officer. The identity of the Officer reporting the violation in good faith will remain
confidential.

Officers shall not use their status to seek personal gain from those doing business or seeking to do business with the Company.
Officers shall not accept any personal gain even if offered without any insistence.

COMPLIANCE PROCEDURES
The Code of Conduct for Directors and Senior Management Personnel sets forth the general Company policy on acceptable
behavior.

These procedures have been prepared to implement and enforce the Code of Conduct for Directors and Senior Management
Personnel, which have been reviewed and approved by the Board of Directors of the Company in order that the Company can
best prevent violations under various Acts, Rules and Regulations. These procedures are Company policy. Failure to adhere to
them may result in appropriate disciplinary actions against the officers concerned.
R G CHANDRAMOGAN,
Chairman and Managing Director
Hatsun's dairies are ISO 9001:2000 and HACCP (Hazard Analysis Critical Control Point) certified. The Salem plant has received
ISO 14001 and been certified eco-friendly. The quality assurance of Hatsun ensures that stringent quality standards and norms of

American Dairy Products Institute (ADPI) are fully met. The success of Arun Icecreams has been taken as a case study by the
Indian Institute of Management, Ahmedabad, India's leading business school.

1970
M/s. R.G. Chandramogan & Co. set up.
Arun Icecream Launch.
1978
First Arun Icecreams Parlour.

1986
March- M/s. Hatsun Foods (HFPL) incorporated as a private limited company. The same year HFPL was admitted as a partner in

M/s. R.G. Chandramogan & Co.


1986

April HFPL takes over M/s. R.G. Chandramogan & Co. HFPL was allowed to register the brand name 'Arun' in its own name
subject to a

royalty payment of 1% on the gross icecream sales.


1991

MPD Factory (Atlantic) - Salem Inauguration.


1993

Hatsun Dairy Private Limited (HDPL), promoted by M/s. Hatsun Foods


Private Limited, established.

Salem Dairy - Inauguration.


1995

M/s. Hatsun Foods goes public. Changes name to Hatsun Agro Product Limited. Icecream Factory - Red Hills - Inauguration
1998

Hatsun Milk Product Limited (formerly known as HFPL) amalgamated with Hatsun Agro Product Limited.
2000

Belgaum Dairy - Inauguration.


Kanchipuram Dairy Acquisition.

2004
Dairy Ingredient Plant - Inauguration (Salem & Kanchipuram)

A retail operations manager runs all aspects of a retail business. These managers work for many types
of companies, from shoe stores to electronics shops to automobile dealerships. They have many roles,
but their main responsibilities include making sure their employees work as a team, keeping customers
satisfied and helping the company remain profitable.

Basics

1. Retail operations managers hire other managers to oversee the various


departments, such as marketing, advertising, sales and public relations. They
set guidelines and policies, forming strategies and sales goals for their
employees to meet. Retail operations managers don't have to be experts in
every aspect of retail, but they must put workers in place who are.
Occasionally, they must perform everyday tasks themselves--taking stock of
merchandise and getting involved in the billing process.

Skills

2. Retail operations managers must be strong leaders, not only directing


their team but making sure company morale stays high. They should possess
strong communication skills, addressing their employees with confidence and
purpose. They also must be well-organized, driven, analytical and capable of
identifying and overcoming issues. Most retail operations managers need a
strong understanding of marketing and sales, as well as a sound knowledge
of math, computers and keeping a budget.

Background

3. Most retail operations managers possess at least a bachelor's degree,


along with years of experience within the industry. Many have proven to be
successful managers and salespersons at the lower levels, and have
displayed an awareness and passion for customer service. Some have
proven themselves in other sales-related industries. Areas of study for
aspiring retail operations managers typically include marketing, advertising,
business, administration, communications, finance and economics.

Prospects

4. Opportunities for top executives such as retail operations managers are


expected to experience little or no change through the next decade, according
to the U.S. Bureau of Labor Statistics. Much of their outlook depends on their
specific industry. For instance, some sales managers are expected to see
their opportunities grow by 5 percent from 2008 to 2018, the BLS reported,
while those in the automobile industry are projected to experience a decrease
of 5 percent.

Earnings

5. Salaries for retail operations managers tend to differ by the size and
success of the stores they oversee, as well as their experience and overall
responsibilities. According to PayScale.com, retail operations managers
earned anywhere from nearly $38,000 to more than $62,000 per year as of
April 2010.
What is Luxury? The problem with the word ‘luxury’ is that it is at once a concept, a subjective
impression and apolemical term, often subjected to moral criticism. Thus, what is luxury for some
is just ordinary for others, while some brands are qualified as ‘luxury brands’ by one half of the
public opinion; others are simply considered as ‘major brands’ by the other half. Likewise, given
the economic crisis, it has become ethically more dubious ‘to like luxury’ or ‘to pursue luxury’.
Real luxury brands remain attractive, but the word itself has lost its clout and sparkle because of
the economic downturn in industrialized countries. The word ‘luxury’ has falled out of favor a little,
a hindrance to market researchers, who wish to measure their customers’ sensitivity to luxury.

In economic terms, luxury objects are those whose price / quality relationship is the highest on
the market. By ‘quality’, economists mean ‘what they know how to measure’, i.e. tangible
functions. Thus, researchers report defines luxury brands as those which ‘have constantly been
able to justify a high price, i.e. significantly higher than the price of products with comparable
tangible functions’. This strictly economic definition of the luxury brand does not include the notion
of an absolute minimum threshold. What counts, indeed, is not the absolute price, but the price
differential between ‘luxury’ products and products with comparable functions. This price
differential can vary from ten dollars for a cologne brand to hundreds of thousands of dollars.

What does the luxury concept actually encompass? What are the essential attributes of this
category of so-called ‘luxury’ items? Luxury comes from ‘lux’ which means light in Latin. This
explains the typical characteristics of so called luxury items. Luxury glitters. The fact that luxury is
visible is also essential; luxury must be seen, by the consumer and by others. That is why luxury
brands externalize all of their signs, the brand signature must be seen and recognized on the
person wearing the brand, and it must be recognizable worldwide. Made to perfection, luxury
items stand out and embody certain ideals. Luxury defines beauty it is an art applied to functional
items.

Luxury constantly seeks to escape time constraints, by focusing on leisure, or by concealing the
effects of time with wigs and face makeup. As for perfume, it also helped to distinguish aristocrats
from the common folk. As we can see, it is significant that modern luxury brands have falled for
the cosmetics and perfume industry, not to mention the other essential class attributes, clothing
and jewels. Etymology is not the only means of deciphering the mystery of the concept of luxury.
Sociology and history can also help. Luxury is the natural accompaniment of the ruling classes. It
is indeed widely acknowledged that luxury plays a classifying role according to which a restricted
group bonds together and distances itself from the rest of society in terms of price and
preferences. In this respect, luxury brands are just perpetuating and exemplifying the signs and
attitudes of the former aristocracy.

Not many luxury symbols exist, but those that do represent the past privileges of the European
aristocracy living a life of leisure, free of all working, money, time or space obligations. Everything
is made to conceal mere practical utility, the leather, the polished wood, the hushed engine are
multiple details which make them more like a drawing room than a car. In this respect, Ferrari and
Porsche are regarded as prestigious sport brands rather than typical examples of luxury. Created
by a talented engineer, they certainly convey the mythical quest for speed, but they nonetheless
embody above all the basic automobile function, mobility.

Principles of Luxury Management

Researchers have pointed out some of the basic principles of luxury brand management, for
instance, the necessity of protecting clients from non-clients, by creating a distance, a no-mix
area, or, as economists would put it, entrance barriers for those who are not invited. This is
implemented through prices and selective and exclusive distribution, as well as the aesthetic
dimension of the products. But for the distinctive sign to work, it must be known by all. Thus
paradoxically, luxury brands must be desired by all but consumed only by the happy few.

Loss of control occurs precisely when luxury brands no longer protect their clients from the non-
clients. In our open democratic socities, groups are constantly trying to recreate separations of all
kinds. The latter do eventually disappear when, for instance, prestigious brands get distributed in
hypermarkets. The infinite multiplication of Vuitton bags also hinders the distinctive function of
luxury. Likewise, distributed in large quantities, Channel T-Shirts ended up being worn by an
excessive number of women, far beyond the initial target.

The modern luxury brand must belong to those who rule the world today. Their reference points
are no longer land or castle, but mobility. It is true that excessive practicality can harm the luxury
product- in that respect, Seiko and Sony are not luxury brands. Conversely, though, if the
products are not practical enough, they gradually start to lag and become obsolete.

Luxury brands cannot just ignore the threat of basic brands which are strictly focused on
practicality, by constantly improving the quality of their products, the latter are indeed continually
redefining the ever increasing standards of basic quality. However prestigious and potentially
attractive Jaguar may have been, it was doomed by its deficiencies both in its engine and in its
basic components. By relying too heavily on its symbolic added value, Jaguar actually lost some
of its global luxury value and attractiveness. Its legend was no longer leading it, it had been left
behind.

Basic brands are meant to democratize progress, thanks to a virtually circular mechanism and to
competition. Quality standards are rising all the time, even at the cheapest price possible, thanks
to mass production. Being partly freed from price constraints, luxury brands, on the contrary,
perpetuate an exceptionally high level of quality. For them, a wide variety of sensations counts
just as much as a wide variety of functions.

That is why they use the finest materials for their products and extensively customize them in
order to prove how customer focused they are. In doing so, they actually condemn mass
production as they make service an integral part of their offer. Anything that is considered
optional or added on for normal brands is the norm for luxury brands, because for them what is
extra is ordinary. Luxury brands would be wrong, however to think that they are totally safe.

Luxury does not always have to be exorbitant. In the car industry, for instance, technological
improvements have made production more flexible, and thus capable of providing greater scope
for customization at no extra cost. Therefore, the customization differential is being jeopardized
by the cost differential, due to the deliberate differences in the two production processes. Neither
the rarity of the object nor the potency of the brand image can alone continue to justify the price
differential. As we see, luxury defines the ideal degree of personalization and sublimation of a
given object against which the more basic brands can measure themselves.

In turn, the latter challenge luxury by their continuous technical improvements and very
competitive pricing. Luxury watches, for instance, were challenged by quartz technology,
developed for the mass market, which soon established new standards of precision and reliability
and which no mechanical system could possibly meet-within the limits of realistic production
costs. Both the economic cost of this quality differential and the negative impact on brand image
were all the greater as the renown of luxury watch brands had long been associated with lifetime
guarantees.

Never Complain, Never Explain - By Greg Hickman


Quite a number of years ago, I stumbled across a phrase in a magazine that really piqued my
interest. The phrase simply said "never complain, never explain." From the moment I read it, those
four words really hit home with me. To my way of thinking, they summed up the philosophy of all
winners. A winner should never waste his or her valuable time complaining or making excuses.

I decided to tape a piece of paper containing this phrase to a wall in my office along with an
accompanying challenge. As soon as I went an entire day without voicing a complaint or offering
up an excuse, I could take the message down.

I have always enjoyed a good challenge and I figured this phrase could provide a tough test of my
will for a day or so. The first day or two quickly passed without me accomplishing my goal. "All I
need to do is toughen up a little and I'll get the job done.

No problem," I confidently reassured myself. A month later, the piece of paper was still taped to my
wall.

I couldn't believe it. I still had not gone just one day without making a complaint or offering up some
sort of excuse. In fact, I had complained about something and made an excuse about something
else at least one time every single day for a month. Not one or the other - but both!

I was disappointed that I had failed to accomplish what had originally seemed like such an easy
goal. But more than that, I was embarrassed. Now I was really motivated to answer the challenge
and get this message off my wall once and for all. Make no mistake about it; I would get the job
done this time for sure!

Five years later that torn, tattered, yellowed piece of paper with the simple little message was still
hanging defiantly on my office wall.

How could this have happened to me? I really gave it a good shot, but one way or another, I would
always find a way to slip up at some point during each and every day and start complaining or
explaining about something or another. One thing I learned from this challenge was we all
complain a lot more than we think we do and we make excuses left and right.

We blame people and things and circumstances for just about everything. If you think not, go
ahead and put the phrase up on your wall and see if you can go one entire day without offering up
one single excuse and without making one single complaint of any kind. No blaming, no
complaining, no criticizing, no excuses -- for one entire day.

I know what you're probably thinking right about now. You think it will be easy, don't you? Ha! I
thought so too. I now realize that the fulfillment of that simple little pledge will be a lifelong pursuit
of mine.

Even if you and I fail to live a single day devoid of any personal complaining or explaining, we can
still significantly cut down on the amount of complaints and excuses we make and that is indeed a
very good start, isn't it? When you take on this challenge, you will begin eliminating a lot of
negative feelings and destructive actions from your life and consequently will become a much
better person to be around.

There is no better time for you to get to work on your very own "never complain, never explain"
challenge than right now. All you have to do is stop complaining and quit explaining and get started
today.
** To comment on this article or to read comments about this article,
go here.

About the Author:

Greg Hickman of The Motivational and Inspirational Corner, a website dedicated to helping
Americans recapture and rekindle that winning spirit we each hold deep down inside of ourselves.
Contact Greg at greg@motivational-inspirational-corner.com or go to their website at
http://www.motivational-inspirational-corner.com.

Dear Hemant,

The next few years will be challenging for most people and most businesses. The deep
economic uncertainty in the global market is really worrying while political instability and
massive increases in competition keep many up at night (you're no longer competing
only with people in your own city - you're now competing with people across the world).
And all of this messiness isn't going to get better any time soon. BUT FOR A FEW PEOPLE,
THERE'S SOME VERY GOOD NEWS.

While many people and businesses are happy just to stay afloat in these troubling times,
a small group have discovered that this period is offering THE GREATEST OPPORTUNITY
in the history of business to overtake your competition, double or even triple your sales,
and build a company that is not merely successful... but iconic.

And this small group of people also understands that the opportunities that this turbulent
time presents are not just chances to build your business along with your wealth and
brand. This group truly gets that right here, right now is an incredible time to take your
career into rare air (because most people are too stressed out), to take your health to its
peak, to really love life (while everyone else is hanging on for dear life) and to grow your
happiness to where you know it needs to be. Yes my friend, this time is your time - if
you know how to capitalize on it - and have the tools to really make some quantum leaps
in your success.

Ok. So here's where I want you to pause (in this world of Twitter and Facebook and
endless emails where we often don't take time to pause and reflect anymore). Please ask
yourself: "Am I REALLY living my highest potential, at work and in my personal life?" And
"have I lost sight of the dreams I had when I was younger and the life I truly wanted to
live?" Life's ultimately a pretty short ride, isn't it? And trust me, you don't want to be
laying on your deathbed and realize YOU WASTED YOUR BEST YEARS BEING REALLY
BUSY DOING NOTHING.

As I near the "half-time point" of my own life (50), I'm paying even more attention to
what's most important. Because I see how easy it is to "major in minor things" and
become addicted to distractions that in the end amount to nothing. I'm more clear than
ever before that you and I and everyone around us has the potential to do genius-level
work, positively influence the lives of thousands of people, have fantastic lifestyles that
make us really really happy - and live a life THAT MATTERS.

A DEFINING MOMENT IN YOUR CAREER - And Life.


For the past 15+ years, I've devoted (yes, devoted) my life to helping people live their
best potential, shift from busyness to work that matters and Lead Without a Title. My
life's mission is a simple one: to help as many people as possible work and live at wow.
Why? So that you don't get to the end of your career (or your life) and feel heartbroken
because you never did anything important, achieved anything of significance and played
small with the awesome potential you were meant to express.

YOU NO LONGER NEED TO STRUGGLE... AND WONDER WHY SOME PEOPLE SEEM
SO LUCKY

There's something I find really fascinating and I wonder if you have seen this too? Most
people work really hard, try their best and are good/decent people. But they never seem
to get ahead in their careers or in their lives (if this is you, your life is about to change...
if you're ready to make a simple change). And then there are those few "lucky" souls who
do about the same amount of work (or less) and yet money, success, peak health and
enduring happiness just seems to fall into their laps. They just seem to automatically
attract the best things that life has to offer. Are they really any different from you?

No! Of course not. But working harder and doing more is not the way to become more
successful (that's such an old/broken model of thinking). The key is thinking and working
smarter. BECAUSE DOING MORE OF THE WRONG THINGS WILL NOT MAKE THINGS
BETTER! (I love Einstein's famous quote: "the definition of insanity is doing the same
things and expecting different results.") The key to getting the results that the best of the
best get is to do those few (and simple) things that the best of the best do (but will never
ever tell you about because they don't want you to know the "secrets" of their success).

On Tuesday November 2, I'm going to offer you a very special opportunity that I
sincerely want you to embrace. You're going to get the chance to be one of the
exclusive group of people I told you about, those people who just seem to easily and
automatically make their dreams and goals come true. Those successful people who
radiate optimism (in an increasingly negative world), are in exceptional health, are stars
at work, have financial freedom and live beautiful lives (hey, success at work is so
important... but so is loving life... and you can have both). So here's what's going to
happen...

On Tuesday November 2, I'm going to release a small limited production run of my


new 12 DVD program based on the proprietary ideas and tools I've shared with many of
the best companies in the world (businesses like Nike, FedEx, Microsoft, GE, IBM and
thousands of entrepreneurs from across the planet) who have used these ideas to create
EXPLOSIVE business results as well as take their personal lives to all-new levels of
health, happiness, meaning - and fun!

This inspiring and strikingly powerful new DVD program is called The Lead
Without a Title System: A Revolutionary Process for Doing Your Best Work. It
contains 8 DVDs with my famous Lead Without a Title Workshop on it that explains
exactly how to build a great company, do world-class work so your career really flies and
have a life that is nothing less than exceptional. Many of the FORTUNE 500 and our other
clients have paid over $50,000 to have me deliver this workshop to their top
performers. Now - for the first time - I'm making the workshop available to you in an
easy to watch yet transformational DVD training program that you and your entire team
can watch to get the same results that the best businesspeople and companies in the
world have got from the strategies and ideas that I've taught them. All for a fraction of
the cost our big name clients have paid me to share these game-changing ideas and
strategies in private sessions with their top people.
HERE ARE THE GAME-CHANGING BENEFITS:

All things being equal, the #1 competitive advantage of a business in today's economy
comes down to one thing: growing and developing people who Lead Without a Title faster
than your competition. And the #1 way for you to not only keep your job but ensure that
you take your career to the highest level of success is to show leadership. And truly
exceptional performance is not the result of natural gifts but doing certain things that
most people have never been taught to do.

In the first 8 DVDs of The Lead Without a Title System you will discover:

How to develop the same mindset that world-class entrepreneurs, sports stars and
geniuses like Picasso and Da Vinci developed to do work that matters.
 The 11 things that GREAT companies
do to build teams of peak performers
- who deliver Real Results
 Specific tactics that you can use to
make quantum leaps in your
effectiveness at work including ways
to Lead Without a Title, become an
inspirational leader and double your
productivity - while working less.
 Tools to stay super positive in high-
stress times

 5 ways to be so good at what you do


that people can't ignore you (so that
the next 6 months are the most
successful of your career to date)
 Strategies to build "A Culture of Winning" at your company so you grow sales
and your brand in these turbulent times

 Very valuable action-steps to really balance work with your family and enjoy
life much more (so you don't get to the end and feel regret)
My workshop on these first 8 DVDs truly is transformational (and this is the same
workshop that has generated OVER ONE BILLION dollars in value for our corporate
clients). It's like having me personally coach you and your entire team on how to build a
great company as well as lead like the superstars in business do for a fraction of the cost
that our big-name clients line up to pay. And I suggest you and your team use the
program as an ongoing training tool to help you unleash the very best performance of
everyone on your team - as well as keep everyone inspired, engaged and totally focused
on the things that count. The results will be spectacular!

BONUS! 4 MORE DVDS: THE GROW THE LEADER TEAM TRAINING PROGRAM

As I mentioned, our FORTUNE 500 clients across the world have paid $50,000+ to invest
in this Lead Without a Title workshop that I'm now making available on the set of the first
8 DVDs on Tuesday November 2. Not only are we only producing a limited number of
these programs but after that my team and I will probably make it into a far more
expensive online training program.

But I really want you to benefit from this new product I'm offering on Tuesday November
2 so I'm adding something that I hope will make things even more exciting and
valuable for you: I've added 4 extra DVDs that contain my acclaimed Grow the
Leader Team Training Program on it! This training program has been used by
organizations like NASA and pharmaceutical giant Wyeth to grow leaders at every level of
the organization. And the price for this program alone is $4995. But in this exclusive
offer, I'm adding all 4 Grow the Leader DVDs plus the training manual at zero extra cost!
Just imagine getting the same program that the best organizations in the world use to
grow leaders - at no extra cost

Vision:

To be a Global Retailer in India and Maintain No.1 position in the Indian Market in the Department Store
Category.

Positioning

Shoppers’ Stop is positioned as a family store delivering a complete shopping experience defined by its
mission, vision and values.

1991: Shoppers' Stop launches at Andheri


Setting up shop in 1991 with its flagship store in Andheri, Mumbai, Shoppers’ Stop is a member of the K.
Raheja Corp. of Companies. Shoppers’ Stop is the first retail venture by the K. Raheja Corp. Promoted by
Mr. Chandru L. Raheja, Mr. Ravi C. Raheja and Mr. Neel C. Raheja, the K. Raheja Corp. have been leaders
in the

construction business for over 48 years.

With its wide range of merchandise, exclusive shop-in-shop counters of international brands and world-
class customer service, Shoppers’ Stop brought international standards of shopping to the Indian
consumer providing them with a world class shopping experience.

India – 2000 & Beyond…


Expanding its operations to Bangalore, Hyderabad, Jaipur, Delhi, Chennai, Mumbai (Andheri, Bandra,
Chembur, Kandivli, Mulund), Pune, Gurgaon and Kolkata, Shoppers’ Stop is today recognised as India’s
premier shopping destination. With a customer entry of about 50,000 customers a day, a national
presence with over 6,00,000 square feet of retail space and stocking over 250 brands of garments and
accessories, Shoppers’ Stop has clearly become a one stop shop for all customers.

Customer Profile
Shoppers’ Stop’s core customers represent a strong SEC A skew. They fall between the age group of 16
years to 35 years, the majority of them being families and young couples with a monthly household
income above Rs. 20000 and an annual spend of Rs.15000. A large number of Non - Resident Indians visit
the shop for ethnic clothes in the international environment they are accustomed to.

Range of merchandise…
The stores offer a complete range of apparel and lifestyle accessories for the entire family. From apparel
brands like Provogue, Color Plus, Arrow, Levi’s, Scullers, Zodiac to cosmetic brands like Lakme, Chambor,
Le Teint Ricci etc., Shoppers’ Stop caters to every lifestyle need. Shoppers' Stop retails its own line of
clothing namely Stop, Life , Kashish, Vettorio Fratini and DIY. The merchandise at Shoppers’ Stop is sold
at a quality and price assurance backed by its guarantee stamp on every bill.
Their motto: “We are responsible for the goods we sell”.

Customer Rewards – The First Citizen


Shoppers’ Stop’s customer loyalty program is called The First Citizen. The program offers its members an
opportunity to collect points and avail of innumerable special benefits. Currently, Shoppers’ Stop has a
database of over 2.5 lakh members who contribute to nearly 50% of the total sales of Shoppers’ Stop.

International Affiliations
Shoppers’ Stop is the only retailer from India to become a member of the prestigious Intercontinental
Group of Departmental Stores (IGDS). The IGDS consists of 29 experienced retailers from all over the
world, which include established stores like Selfridges (England), Karstadt (Germany), Shanghai No. 1
(China), Matahari (Indonesia), Takashimaya (Japan), C K Tang (Singapore), Manor (Switzerland) and
Lamcy Plaza (Dubai). This membership is restricted to one member organization per country/region.

Acquisitions
The Organisation, in 2000, along with ICICI ventures also acquired the reputed bookstore, “Crossword”,
which offers the widest range of books along with CD-ROM, music, stationery and toys. Services like Dial-
a-book, Fax-a-book and Email-a-book enable customers to shop from their homes. Crossword currently
has 18 Stores.

The IT Backbone
Realising the role of IT way back in 1991, Shoppers’ Stop was among the first few retailers to use scanners and barcodes and
completely computerise its operations. Today it is one of the few stores in India to have retail ERP in place, which is now being
integrated with Oracle Financials and the Arthur Planning System, the best retail planning system in the world. With the help of
the ERP, they are able to replicate stores, open new stores faster and get information about merchandise and customers online,
which reduces the turnaround time in taking quick decision.

Supply Chain Management


Understanding the importance of distribution and logistics in ensuring that merchandise is available on the shop floors, has led
Shoppers’ Stop to streamline its supply chain. The company has developed process manuals for each part of the logistics chain.
These modules include vendor management, purchase order management, stock receiving systems, purchase verification and
inventory build up, generation and fixing of price and store tags, despatch of stocks to the retail floor and forwarding of bills for
payment.

Future Plans
Shoppers’ Stop aims to position itself as a global retailer. The company intends to bring the world’s best retail technology, retail
practices and sales to India. Currently, they are adding 4 to 5 new stores every year

Click here to see the job opportunities

COMPANY DETAILS

Name of the Organisation : Shopper’s Stop Ltd.


Head of the Organisation : Mr. B. S. Nagesh
Customer Care Associate,
Managing Director & CEO

Address:

Corporate Office:
Eureka Towers, 9th Floor, Link Road, Malad West, Mumbai 400064
Tel: 28809898 / 28447337
Fax: 28808877
Shopper’s Stop Ltd along with the declaration of their exceptional Q1FY11 results also announced the appointment
of Mr. Govind Shrikhande as the Managing Director, effective from July 29, 2010.

Mr. Shrikhande took charge of Shopper’s Stop Limited as the Customer Care Associate, President & CEO in the
month of August last year. The retail giant has since grown significantly in profits, completed their acquisition of
51% equity stake in Hypercity Retail (India) Ltd and has aggressively expanded their presence across India.

Mr. Shrikhande has been with the company for the last 10 years. He started his association with the company in
2001 as the Vice President of Buying & Merchandising function and has since grown within the company managing
roles of the Chief Operating Officer in 2004 before taking charge as the CEO in 2006 and elevated as the President &
CEO in 2009 and eventually to Managing Director in 2010.

Since joining Shoppers Stop, Mr. Shrikhande has played a key role in the company’s tremendous growth from 7
stores in 2001 to 33 stores at present. He was also instrumental in Re-branding initiative of the brand – Shoppers
Stop in the year 2008, which reinvigorated the brand’s market positioning, product and service offerings.
Mr Shrikhande’s strong performance as head of Shoppers Stop, his passion for developing innovative products &
services, and his emphasis on creating an enjoyable workplace for employees was recognized in 2009 with the
prestigious Clothing Manufacturers Association of India felicitated him as the ‘Retail Professional of the Year’ & in
early 2010 he was recognized as the ‘Most Admired Fashion Retail Professional’ at the Images Fashion Awards.

Shopper’s Stop Ltd., a pioneer in modern retailing in India, has been promoted by K Raheja Corp. Group (Chandru L.
Raheja Group), one of the leading groups in the business of real estate development and hotels in the country.
Shopper’s Stop Ltd along with its associate companies Hypercity Retail (India) Ltd and Timezone Entertainment Pvt.
Ltd operates more than 30 lakhs sq ft in the country.

Shopper’s Stop Ltd

More Shoppers' Stop News...

Speaking on the sidelines of India Shopping Forum in Mumbai, Mr Govind Shrikhande,


CEO of K Raheja Group promoted Shopper's Stop, revealed that, they will invest Rs 1.25
billion in expanding the store count.

He said, “We plan to open between 10-12 new stores in this fiscal year in metros and tier
II cities, which will entail an investment of Rs 1.25 billion. Currently Shoppers Stop
operates 29 stores across India.

Shoppers Stop posted a turnover of Rs 1.57 billion in the fiscal year ended March 2010,
which is up by 12 percent, when corresponded with the previous fiscal. It hopes to
achieve a growth of 20 percent in the current fiscal.

Govind Shrikhande, Customer Care Associate, President and CEO, Shoppers Stop, talks with Varun Jain
about their expansion plans, the importance of licensed merchandise and more.

Varun Jain (VJ): What are the future expansion plans of the Shoppers Stop? What would be the
investment for the same?

Govind Shrikhande (GS): We are looking to expand Shoppers Stop total retail space from the current 1.9
million sq ft to a commanding 3.5 million sq ft in the next four years. We will be investing Rs 500 crore to
introduce 40 new stores across the country in the next four years time. We currently have 33 Shoppers Stop
outlets, and we plan to add 10-12 new stores in this fiscal with an investment of Rs. 120 crores.

VJ: How does Shoppers Stop look at the competition with so many same format stores present in
the market?

GS: The competition is multifold and it is for everyone to see. The competition is not only in the
departmental store but also in the specialty store. You have to really create your own space. We have two
formats. One of them is a private label where we have a Globus, Pantaloons and Westside operating and
then there is a format where Lifestyle and Central operates. So, each of us chose to play on certain strength.
We have tried to build an assortment that is very strong in cosmetics, jewelry, skincare, watches and
footwear. So, you can see that our assortment is so strong that the competition is not able to take that kind
of a share in the market space we are in. Menswear are strong, women ethnic wear is likewise and kidswear
with Mother care again is very strong.

VJ: What is the ratio between the international brands and the private labels in the store?

GS: In Shoppers Stop, we have around 18% of private labels and more than 50% would be the international
brands. As for now, we are not planning to introduce more private labels in here. We would operate in 18-
20% space only. Our focus is on international brands. We are trying to create an image of house of brands
for the fashionable family.

VJ: Why more focus on the international brands, when most of them have their exclusive stores in
the country?

GS: See, we are yet to become a brand loyal nation and that is the main reason why I think its better and
comfortable for Indian consumers to find different international brands under one roof rather than going to
their exclusive stores. For instance, if, I, as a consumer, have to pick a shirt, then I would pick it from a
selection of brands that operates in the same category. I can pick a Van Heusen, Louis Phillip or an Arrow,
whichever fits best. So we are yet to see Indian consumer sticking to a brand. Say, he only wears a Tommy,
in this case, going to an exclusive store benefits. But the majority will go in for a departmental store.

VJ: Any plans of Shoppers Stop going in for the Franchise business model?

GS: For Shoppers Stop, we are not considering the franchising business model, although Crossword stores
are on Franchising.

VJ: We have seen Shoppers Stop selling licensed merchandise too often, be it the Vodafone Zoozoo
or the Love Aaj Kal merchandise. How important is selling the licensed merchandise from Shoppers
Stop point of view?

GS: Selling licensed product is very important from Shoppers Stop point of view. We have sold Om Shanti
Om merchandise in the past, which was a huge success. We had record sales and what we sold was like 3-
4 times more than what others could sell. We are selling Vodafone Zoo Zoo’s in our stores till date and our
customers simply love it. Selling licensed product is very important in terms of consumer connect because
whatever is topical will sell. No fashion lasts beyond 4-8 weeks in current scenario and I think that anything
that is fashionable, topical and stylish will sell. We focus on licensed merchandise the right way without
cluttering them together. We see a good pull and a good customer connect.
VJ: Your take on revenue sharing in malls vs mall rentals?

GS: Consumption is growing and a lot of malls are opening all over India. Big brands and small time players
are jumping into the market to make their presence felt, resulting in high rentals. High rents have always
been a state of concern for every brand who wants to position themselves in the market. Last year, rent
rates were as high as 12-15 percent, but now it has come down to 7-12 percent, giving relief to many of us.

But I firmly believe in the revenue-share model as it benefits both parties without putting pressure on any
single body. As we all know that it takes a minimum of 6-7 months for a mall to pick-up, so there will be
fewer footfalls. But as soon as business picks up, things go well.

VJ: Where does Shoppers Stop prefer to be present? -In a mall or a high street.

GS: I think both of them have their own places and both will continue to co exist, akin to what we see as big
retail vs small retail. There is enough space for both of them to grow.

RETAIL INDUSTRY IN INDIA


Corporate Catalyst India A report on Indian Retail Industry
1. OVERVIEW
1.1 Background
The Indian retail industry is divided into organised and unorganised
sectors. Organised
retailing refers to trading activities undertaken by licensed retailers, that
is, those who are
registered for sales tax, income tax, etc. These include the corporate-
backed
hypermarkets and retail chains, and also the privately owned large retail
businesses.
Unorganised retailing, on the other hand, refers to the traditional formats
of low-cost
retailing, for example, the local kirana shops, owner manned general
stores, paan/beedi
shops, convenience stores, hand cart and pavement vendors, etc.
India’s retail sector is wearing new clothes and with a three-year
compounded annual
growth rate of 46.64 per cent, retail is the fastest growing sector in the
Indian economy.
Traditional markets are making way for new formats such as
departmental stores,
hypermarkets, supermarkets and specialty stores. Western-style malls
have begun
appearing in metros and second-rung cities alike, introducing the Indian
consumer to an
unparalleled shopping experience.
The Indian retail sector is highly fragmented with 97 per cent of its
business being run
by the unorganized retailers like the traditional family run stores and
corner stores. The
organized retail however is at a very nascent stage though attempts are
being made to
increase its proportion to 9-10 per cent by the year 2010 bringing in a
huge opportunity
for prospective new players. The sector is the largest source of
employment after
agriculture, and has deep penetration into rural India generating more
than 10 per cent
of India’s GDP.
Comparative Penetration of Organised
Retail(in %)
85 81 55
40
30 20
3
15 19 45 60
70 80
97
US
Taiwan
Malaysia
Thailand
Indonesia
China
India
Organized Traditional
Source: Ernst &Young, the Great Indian Retail Story, 2006
India is the 4th largest economy as regards GDP (in PPP terms) and is
expected to rank
3rd by 2010 just behind US and China. On one hand where markets in
Asian giants like
China are getting saturated, the AT Kearney's 2006 Global Retail
Development Index
Corporate Catalyst India A report on Indian Retail Industry
(GRDI), for the second consecutive year Placed India the top retail
investment
destination among the 30 emerging markets across the world.
Over the past few years, the retail sales in India are hovering around 33-
35 per cent of
GDP as compared to around 20 per cent in the US. The table gives the
picture of India’s
retail trade as compared to the US and China.
Retail Trade – India, US and China
Trade (US$ billion) Employment ( %) Shops (million) Organized sector share ( %)
India 180-394 7 12 2-3
China 360 12 2.7 20
US 3800 12.6-16 15.3 80
Source: The Economist, 2006
The last few years witnessed immense growth by this sector, the key
drivers being
changing consumer profile and demographics, increase in the number of
international
brands available in the Indian market, economic implications of the
Government
increasing urbanization, credit availability, improvement in the
infrastructure, increasing
investments in technology and real estate building a world class shopping
environment
for the consumers. In order to keep pace with the increasing demand,
there has been a
hectic activity in terms of entry of international labels, expansion plans,
and focus on
technology, operations and processes.
This has lead to more complex relationships involving suppliers, third
party distributors
and retailers, which can be dealt with the help of an efficient supply chain.
A proper
supply chain will help meet the competition head-on, manage stock
availability; supplier
relations, new value-added services, cost cutting and most importantly
reduce the
wastage levels in fresh produce.
Large Indian players like Reliance, Ambanis, K Rahejas, Bharti AirTel, ITC
and many
others are making significant investments in this sector leading to
emergence of big
retailers who can bargain with suppliers to reap economies of scale.
Hence, discounting
is becoming an accepted practice. Proper infrastructure is a pre-requisite
in retailing,
which would help to modernize India and facilitate rapid economic growth.
This would
help in efficient delivery of goods and value-added services to the
consumer making a
higher contribution to the GDP.
International retailers see India as the last retailing frontier left as the
China’s retail sector
is becoming saturated. However, the Indian Government restrictions on
the FDI are
creating ripples among the international players like Walmart, Tesco and
many other
retail giants struggling to enter Indian markets. As of now the Government
has allowed
only 51 per cent FDI in the sector to ‘one-brand’ shops like Nike, Reebok
etc. However,
other international players are taking alternative routes to enter the
Indian retail market
indirectly via strategic licensing agreement, franchisee agreement and
cash and carry
wholesale trading (since 100 per cent FDI is allowed in wholesale trading).
Corporate Catalyst India A report on Indian Retail Industry
1.2 Current Status
India’s retail industry accounts for 10 percent of its GDP and 8 percent of
the
employment to reach $17 billion by 2010.
The Indian retail market is estimated at US$ 350 billion. But organised
retail is estimated
at only US$ 8 billion. However, the opportunity is huge-by 2010, organised
retail is
expected to grow at 6 per cent by 2010 and touch a retail business of $
17 billion as
against its current growth level of 3 per cent which at present is
estimated to be $ 6
billion, according to the Study undertaken by The Associated Chambers of
Commerce
and Industry of India (ASSOCHAM). Indian retailing is clearly at a tipping
point. India
is currently the ninth largest retail market in the world. And it is names of
small towns
like Dehradun, Vijayawada, Lucknow and Nasik that will power India up
the rankings
soon.
Organised retail in India has the potential to add over Rs. 2,000 billion
(US$45 billion)
business by the Year 2010 generating employment for some 2.5 million
people in various
retail operations and over 10 million additional workforce in retail support
activities
including contract production & processing, supply chain & logistics, retail
real estate
development & management etc.
It is estimated that it will cross the $650-billion mark by 2011, with an
already estimated
investment of around $421 billion slated for the next four years.
Organized Retail Penetration across categories (%)
22
12
9
8
5
3
2
11
Footwear Clothing Books &
Music
Jewelry &
Accessory
Durables Home
Furnishing
Medical
Services
Food &
Grocery
Health &
Beauty
Source: E&Y, the Great Indian Retail Story, 2006
As noticed in the figure above, the Organized Retail Penetration (ORP) is
the highest in
footwear with 22 per cent followed by clothing. Though food and grocery
account for
largest share of retail spend by the consumer at about 76 per cent, only 1
per cent of this
market is in the organized sector. However, it has been estimated that
this segment
would multiply five times taking the share of the organized market to 30
percent in the
coming years.
Corporate Catalyst India A report on Indian Retail Industry
1.3 Segment analysis
The structure of Indian retail is developing rapidly with shopping malls
becoming
increasingly common in the large cities and development plans being
projected at 150
new shopping malls by 2008. However, the traditional formats like
hawkers, grocers and
tobacconist shops continue to co-exist with the modern formats of
retailing. Modern
retailing has helped the companies to increase the consumption of their
products for
example: Indian consumers would normally consume the rice sold at the
nearby kiranas
viz. Kolam for daily use. With the introduction of organized retail, it has
been noticed
that the sale of Basmati rice has gone up by four times than it was a few
years back; as a
superior quality rice (Basmati) is now available at almost the same price
as the normal
rice at a local kirana. Thus, the way a product is displayed and promoted
influences its
sales. If the consumption continues to grow this way it can be said that
the local market
would go through a metamorphoses of a change and the local stores
would soon
become the things of the past or restricted to last minute unplanned
buying.
1.3.1 Food and grocery retail
The food business in India is largely unorganized adding up to barely
Rs.400 billion, with
other large players adding another 50 per cent to that. The All India food
consumption is
close to Rs.9,000 billion, with the total urban consumption being around
Rs.3,300 billion.
This means that aggregate revenues of large food players is currently only
5 per cent of
the total Indian market, and around 15-20 per cent of total urban food
consumption.
Most food is sold in the local ‘wet’ market, vendors, roadside push cart
sellers or tiny
kirana stores. According to McKinsey report, the share of an Indian
household's
spending on food is one of the highest in the world, with 48 per cent of
income being
spent on food and beverages.
1.3.2 Apparel retail
The ready-mades and western outfits are growing at 40-45 per cent
annually, as the
market teems up with international brands and new entrants entering this
segment
creating an Rs.5 billion market for the premium grooming segment. The
past few years
has seen the sector aligning itself with global trends with retailing
companies like
Shoppers’ stop and Crossroads entering the fray to entice the middle
class. However, it is
estimated that this segment would grow to Rs. 3 billion in the next three
years.
1.3.3 Gems and Jewellery retail
The gems and jewellery market is the key emerging area, accounting for a
high
proportion of retail spends. India is the largest consumer of gold in the
world with an
estimated annual consumption of 1000 tonnes, considering actual imports
and recycled
gold. The market for jewellery is estimated as upwards of Rs. 650 billion.
1.3.4 Pharmaceutical retail
Corporate Catalyst India A report on Indian Retail Industry
The pharma retailing is estimated at about Rs. 300 billion, with 15 per
cent of the 51 lakh
retail stores in India being chemists. Pharma retailing will follow the trend
of becoming
more organised and corporatised as is seen in other retailing formats
(food, apparel etc).
A few corporates who have already forayed into this segment include Dr
Morepen (with
Lifespring and soon to be launched Tango), Medicine Shoppe, Apollo
pharmacies, 98.4
from Global Healthline Pvt Ltd, and the recently launched CRS Health from
SAK
Industries. In the south, RPG group’s Health & Glow is already in this
category, though
it is not a pure play pharma retailer but more in the health and beauty
care business.
1.3.5 Music Retail
The size of the Indian music industry, as per this Images-KSA Study, is
estimated at
Rs.11 billion of which about 36 percent is consumed by the pirated market
and
organized music retailing constitutes about 14 percent, equivalent to
Rs.1.5 billion.
1.3.6 Book retail
The book industry is estimated at over Rs. 30 billion out of which
organized retail
accounts for only 7 per cent (at Rs.2.10 billion). This segment is seen to
be emerging
with text and curriculum books accounting to about 50 per cent of the
total sales. The
gifting habit in India is catching on fast with books enjoying a significant
share, thus
expecting this sector to grow by 15 per cent annually.
1.3.7 Consumer durables retail
The consumer durables market can be stratified into consumer electronics
comprising of
TV sets, audio systems, VCD players and others; and appliances like
washing machines,
microwave ovens, air conditioners (A/Cs). The existing size of this sector
stands at an
estimated US$ 4.5 Billion with organized retailing being at 5 per cent.
1.4 Retailing Formats
Modern retailing has entered India in form of sprawling malls and huge
complexes
offering shopping, entertainment, leisure to the consumer as the retailers
experiment
with a variety of formats, from discount stores to supermarkets to
hypermarkets to
specialty chains.
Corporate Catalyst India A report on Indian Retail Industry
Source: IT Retailing: Are You In The Loop?, July 16, 2006
However, kiranas still continue to score over modern formats primarily
due to the
convenience factor. The organized segment typically comprises of a large
number of
retailers, greater enforcement of taxation mechanisms and better labour
law monitoring
system. It's no longer about just stocking and selling but about efficient
supply chain
management, developing vendor relationship quality customer service,
efficient
merchandising and timely promotional campaigns. The modern retail
formats are
encouraging development of well-established and efficient supply chains
in each segment
ensuring efficient movement of goods from farms to kitchens, which will
result in huge
savings for the farmers as well as for the nation. The Government also
stands to gain
through more efficient collection of tax revenues. Along with the modern
retail formats,
the non-store retailing channels are also witnessing action with HLL
initiating Sangam
Direct, a direct to home service. Network marketing has been growing
quite fast and has
a few large players today. Gas stations are seeing action in the form of
convenience
stores, ATMs, food courts and pharmacies appearing in many outlets.
In the coming years it can be said that the hypermarket route will emerge
as the most
preferred format for international retailers stepping into the country. At
present, there
are 50 hypermarkets operated by four to five large retailers spread across
67 cities
catering to a population of half-a-million or more. Estimates indicate that
this sector will
have the potential to absorb many more hypermarkets in the next four to
five years.
Corporate Catalyst India A report on Indian Retail Industry
List of retailers that have come with new formats
Retailer Current Format New Formats, Experimenting with
Shopper’s Stop Department Store Quasi-mall
Ebony Department Store Quasi-mall, smaller outlets, adding food retail
Crossword Large bookstore Corner shops
Piramyd Department Store Quasi-mall, food retail
Pantaloon Own brand store Hypermarket
Subhiksha Supermarket Considering moving to self-service
Vitan Supermarket Suburban discount store
Foodworld Food supermarket Hyper
market, Foodworld express
Globus Department Store Small fashion stores
Bombay Bazaar Aggregation of Kiranas
Efoodmart Aggregation of Kiranas
Metro Cash and Carry
S Kumar’s Discount Store
Traditionally, the small store (kirana) retailing has been one of the easiest
ways to
generate self-employment, as it requires minimum investments in terms
of land, labour
and capital. These stores are not affected by the modern retailing as it is
still considered
very convenient to shop. In order to keep pace with the modern formats,
kiranas have
now started providing more value-added services like stocking ready to
cook vegetables
and other fresh produce. They also provide services like credit, phone
service, home
delivery etc.
The organized retailing has helped in promoting several niche categories
such as
packaged fruit juices, hair creams, fabric bleaches, shower gels,
depilatory products and
convenience and health foods, which are generally not found in the local
kirana stores.
Looking at the vast opportunity in this sector, big players like Reliance
and K Rahejas
has announced its plans to become the country's largest modern retainers
by establishing
a chain of stores across all major cities.
Apart from metro cities, several small towns like Nagpur, Nasik,
Ahmedabad,
Aurangabad, Sholapur, Kolhapur and Amravati as witnessing the
expansion of modern
retails. Small towns in Maharashtra are emerging as retail hubs for large
chain stores like
Pantaloon Retail because many small cities like Nagpur have a student
population, lower
real estate costs, fewer power cuts and lower levels of attrition. However,
retailers need
to adjust their product mix for smaller cities, as they tend to be more
conservative than
the metros.
In order for the market to grow in modern retail, it is necessary that steps
are taken for
rewriting laws, restructuring the tax regime, accessing and developing
new skills and
investing significantly in India.
1.5 Merger and acquisition activity
India witnessed a record number of M&A deals in the first half of 2006,
which were
collectively worth US$ 25.6 billion. A significant number of deals have
being carried out
Corporate Catalyst India A report on Indian Retail Industry
in the Indian retail sector in the past few months in order to acquire a
larger share in the
growing domestic market and to compete against the prospective global
and domestic
players. The table below shows some recent deals that have taken place
in the Indian
retail sector:
Year Acquired/ JV
Company/
Target
Acquirer Nature of
Business
Stake
(%)
Consideration
(US$ million)
2005 Liberty Shoes Future group Retail (Footwear) 51 3
2005 Indus – League
Clothing
Future group Retail clothing 68 5
2005 Odyssey India Deccan Chronicle
Holdings
Leisure retail chain
(books, music, toys)
100 14
2005 Landmark Tata Trent Books, music,
accessories
74 24
2006 Bistro
Hospitality
TGI Friday’s (a
subsidiary of
Carison
Restaurant
worldwide)
Restaurant (Food
retail)
25 N/A
2006 Indus League
Clothing
(Future group
company)
Etam group,
France
Lingerie and
women’s wear
retailing
50 (JV) 8
Source: PricewaterhouseCoppers, Asia-Pacific M&A bulletin, Mid year 2006.
Corporate Catalyst India A report on Indian Retail Industry
2. COMPETITION OVERVIEW
2.1 Profile of the Major Players
2.1.1 Pantaloon Retail
Pantaloon Retail (India) Limited, is India’s leading retail company with
presence across
multiple lines of businesses. The company owns and manages multiple
retail formats that
cater to a wide cross-section of the Indian society and is able to capture
almost the entire
consumption basket of the Indian consumer. Headquartered in Mumbai
(Bombay), the
company operates through 4 million square feet of retail space, has over
140 stores across 32
cities in India and employs over 14,000 people. The company registered a
turnover of Rs
20.19 billion for FY 2005-06.
Pantaloon Retail forayed into modern retail in 1997 with the launching of
fashion retail chain,
Pantaloons in Kolkata. In 2001, it launched Big Bazaar, a hypermarket
chain that combines
the look and feel of Indian bazaars, with aspects of modern retail, like
choice, convenience
and hygiene.
The group’s subsidiary companies include, Home Solutions Retail India
Ltd, Pantaloon
Industries Ltd, Galaxy Entertainment and Indus League Clothing. The
group also has joint
venture companies with a number of partners including French retailer
Etam group, Lee
Cooper, Manipal Healthcare, Talwalkar’s, Gini & Jony and Liberty Shoes.
Planet Retail, a
group company owns the franchisee of international brands like Marks &
Spencer,
Debenhams, Next and Guess in India.
2.1.2 Lifestyle International
Lifestyle International Holdings Ltd’s principal activity is the operation of
lifestyle
department store and retail outlets. It focuses on high-end department
store format. As of
December 31, 2005, Lifestyle International operated its retailing business
through two brand
names, SOGO and Jiuguang. The SOGO Department Stores consists of the
Company's
flagship department store, SOGO CWB, in Causeway Bay, Hong Kong, and
the Tsimshatsui
store, which features a slightly different format that targets younger
group of customers. The
Jiuguang Department Store, which is located in Shanghai, has a similar
business format as
that of the SOGO store. During the year ended December 31, 2005, it
launched SOGO
CLUB, a lifestyle service center. Some of the Company’s subsidiaries
include Asia Kinetic
Limited, Congenial Company Limited, Eastlord Development Limited,
Everwin Worldwide
Limited and Fine Shine Limited.
2.1.3 RPG Retail
RPG Enterprises is one of India’s largest business conglomerates, with a
turnover of
US$ 1.65 billion (Rs 7,472 crore) and assets worth US$ 1.8 billion. Since its
inception in 1979,
RPG Enterprises has been one of the fastest growing groups in India with
more than 20
companies operating successfully in 7 business sectors: Retail, IT &
Communications,
Entertainment, Power, Transmission, Tyres and Life Sciences.
Corporate Catalyst India A report on Indian Retail Industry
Spencer’s retail is the largest supermarket chain in India. Spencer’s retail
offers the complete
gamut of products & durables ranging from bread to bed covers; from
toothpaste to
television. Spencer’s today is operating across 80 stores spread across 20
cities in the country
with a retail trading area of more than half a million square feet, and
rapidly growing.
Spencer’s Retail is located in various parts of India like Chennai,
Hyderabad, Vizag,
Bangalore, Mumbai, Aurangabad, Pune, Ghaziabad, Faridabad, Delhi,
Cochin, Trivandrum
and many more to come by this financial year.
2.1.4 Shopper’s Stop
The foundation of Shoppers’ Stop was laid on October 27, 1991 by the K.
Raheja Corp.
group of companies. From its inception, Shoppers’ Stop has progressed
from being a single
brand shop to becoming a Fashion & Lifestyle store for the family.
Shoppers’ Stop is the only retailer from India to become a member of the
prestigious
Intercontinental Group of Departmental Stores (IGDS). The IGDS consists
of 29
experienced retailers from all over the world, which include established
stores like Selfridges
(England), Karstadt (Germany), Shanghai No. 1 (China), Matahari
(Indonesia), Takashimaya
(Japan), C K Tang (Singapore), Manor (Switzerland) and Lamcy Plaza
(Dubai). This
membership is restricted to one member organization per country/region.
2.1.5 Trent (Tata)
Trent (Tata) was established in 1998, Trent operates some of the nation’s
largest and fastest
growing retail store chains. A beginning was made in 1998 with Westside,
a lifestyle retail
chain, which was followed up in 2004 with Star India Bazaar, a
hypermarket with a large
assortment of products at the lowest prices. In 2005, it acquired
Landmark, India’s largest
book and music retailer.
In a recently signed deal, Trent has agreed to anchor 12 malls set up by
DLF Universal Ltd
across the country, at its Westside, Landmark and Star India Bazaar
outlets. This amounts to
about 27 locations, totaling to about a million square feet of space.
2.1.6 Vivek Ltd
Vivek Limited, is the largest Consumer Electronics & Home Appliances
retail chain in India,
with 14 world class showrooms in Chennai, Bangalore and Salem;
covering a retail space
area of over 1,00,000 sq. ft and a turnover of over Rs. 1 billion (US $ 23
Million). Its brand,
VIVEKS, is now a household name. The group’s turnover, comprising of
interests in
distribution of consumer products; finance, safe deposit lockers; property
development and
real estate, is about 2 Billions (US $ 46 Million).
Vivek Ltd proposes to expand its operations in Karnataka and also open
outlets in Andhra
Pradesh. The company is working on a plan to open three retail outlets in
Mysore, Hubli and
Corporate Catalyst India A report on Indian Retail Industry
Mangalore in Karnataka and in Hyderabad, Vijayawada and
Visakhapatnam in Andhra
Pradesh. Viveks currently has 22 showrooms in 5 cities.
Corporate Catalyst India A report on Indian Retail Industry
3. INVESTMENT POLICY AND INITIATIVES
3.1 FDI Policy in the Retail Sector
India has kept the retail sector largely closed to outsiders to safeguard the
livelihood of
nearly 15 million small storeowners and only allows 51 per cent foreign
investment in singlebrand
retail with prior Government permission. FDI is also allowed in the
wholesale
business. Single-brand retailers such as Louis Vuitton, Fendi, LLadro, Nike
and Toyota can
operate now on their own. Metro is already operating through the cash-
and-carry wholesale
mode.
The policy makers continue to explore areas where FDI can be invited
without hurting the
interest of local retail community. Government is considering opening up
of the retail
trading for select sectors such as electronic goods, stationery, sports
goods, and building
equipment.
Foreign direct investment (FDI) in retail space, specialized goods retailing
like sports goods,
electronics and stationery is also being contemplated. The Government
has to walk a
tightrope to ensure a `level playing field' for everyone.
The policy of permitting 51 per cent FDI in single-brand product retailing
has led to the
entry of only a few global brands such as Nike (footwear), Louis Vuitton
(shoes, travel
accessories, watches, ties, textiles ready-to wear), Lladro (porcelain
goods), Fendi (luxury
products), Damro (knock-down furniture), Argenterie Greggio (silverware,
cutlery,
traditional home accessories and gift items) and Toyota (retail trading of
cars), into retail
trading. A 12-billion euro French luxury industry is also eyeing the
domestic luxury segment
to make a presence through retailing directly.
3.2 Business models for entry in Indian markets
Due to the FDI restrictions the international players are looking for
alternative avenues to
enter the Indian markets. However FDI restrictions in retailing have not
deterred prominent
international players from setting up shops in India.
In recent developments, the Australian retail giant Woolworth Ltd made in
innovative entry
in India’s retail space, with India’s Tata group. The Tata group has floated
Infiniti Retail Ltd,
in venture with which will sell consumer goods and electronics across the
country. Infiniti
Retail will be a 100 per cent subsidiary of Tata Sons and will receive an
initial equity infusion
of Rs 4 billion. This Tata retail venture joined hands with Australian retail
giant Woolworths
Ltd, which currently operates more than 2,000 stores in 12 different
formats.
While Infiniti will own and run retail operations in India, Woolworths, which
has attained
notable success in selling electronics and consumer goods through its
Dick Smith
Electronics chain, will provide technical support and strategic sourcing
facilities from its
global network.
Corporate Catalyst India A report on Indian Retail Industry
At present entry into India’s retail sector can be done through three
different routes. The
chart below shows the current formats permitted by the Government of
India for the
international players.
Current entry options for foreign players
Franchise agreements • Most widely used entry route by multinational
retailers
• Fast food retailer Domino’s entered India through master
franchise root while Pizza Hut entered through regional
franchisee
Cash and Carry
wholesale trading
• 100% FDI is allowed in wholesale trading which involves
building of a large distribution infrastructure to assist local
manufacturers
• The wholesaler deals only with smaller retailers and not
consumers
• Metro AG of Germany was the first significant global
player to enter India through this route
Strategic licensing
agreements
• Foreign company enters into a licensing agreement with a
domestic retailer
• Mango, the Spanisn apparel brand has entered India
through this route with an agreement with Piramyd,
Mumbai
• SPAR entered into a similar agreement with Radhakrishna
Foodlands Pvt. Ltd
Corporate Catalyst India A report on Indian Retail Industry
4. OPPORTUNITIES AND CHALLENGES
4.1 Investment Opportunities in the Retail Sector
AT Kearney’s study on global retailing trends found that India is the least
competitive as
well as least saturated of all major global markets. This implies that there
are significantly
low entry barriers for players trying to setup base in India, in terms of the
competitive
landscape. The report further stated that global retailers such as Walmart,
Carrefour,
Tesco and Casino would take advantage of the more favourable FDI rules
that are likely
in India and enter the country through partnerships with local retailers.
Other retailers
such as Marks & Spencer and the Benetton Group, who operate through a
franchisee
model, would most likely switch to a hybrid ownership structure.
A good talent pool, unlimited opportunities, huge markets and availability
of quality raw
materials at cheaper costs is expected to make India overtake the world's
best retail
economies by 2042, according to industry players.
The retail industry in India, according to experts, will be a major
employment generator
in the future. Currently, the market share of organised modern retail is
just over 4 per
cent of the total retail industry, thereby leaving a huge untapped
opportunity.
The sector is expected to see an investment of over $30 billion within the
next 4-5 years,
catapulting modern retail in the country to $175-200 billion by 2016,
according to
Technopak estimates.
The Potential of the Indian Retail Sector
The high growth projected in domestic retail demand will be fuelled by:
�The migration of population to higher income segments with increasing per
capita
incomes
� An increase in urbanisation
� Changing consumer attitudes especially the increasing use of credit cards
� The growth of the population in the 20 to 49 years age band
There is retail opportunity in most product categories and for all types of formats
� Food and Grocery: The largest category; largely unorganised today
� Home Improvement and Consumer Durables: Over 20 per cent p.a. CAGR
estimated
in the next 10 years
� Apparel and Eating Out: 13 per cent p.a. CAGR projected over 10 years
Opportunities for investment in supply chain infrastructure: Cold chain and
logistics
India also has significant potential to emerge as a sourcing base for a wide
variety of goods for
international retail companies
� Many international retailers including Wal-Mart, GAP, JC Penney etc. are
already
procuring from India.
Corporate Catalyst India A report on Indian Retail Industry
Of the total organised retail market of Rs 550 billion, the business of
fashion accounts
for Rs 300.80 billion, which translates into nearly 55 per cent of the
organised retail
segment in the country.
Total fashion sector was estimated at Rs 1,914 billion and forms about 15
per cent of the
country's retail market of Rs 12,000 billion.
Commanding such a large chunk of the organised retail business in India,
fashion
retailing has indeed been responsible for single-handedly driving the
business of retail in
India.
4.2 Challenges in Retailing
The industry is facing a severe shortage of talented professionals,
especially at the
middle-management level.
Most Indian retail players are under serious pressure to make their supply
chains more
efficient in order to deliver the levels of quality and service that
consumers are
demanding. Long intermediation chains would increase the costs by 15
per cent.
Lack of adequate infrastructure with respect to roads, electricity, cold
chains and ports
has further led to the impediment of a pan-India network of suppliers. Due
to these
constraints, retail chains have to resort to multiple vendors for their
requirements,
thereby, raising costs and prices.
The available talent pool does not back retail sector as the sector has only
recently
emerged from its nascent phase. Further, retailing is yet to become a
preferred career
option for most of India’s educated class that has chosen sectors like IT,
BPO and
financial services.
Even though the Government is attempting to implement a uniform value-
added tax
across states, the system is currently plagued with differential tax rates
for various states
leading to increased costs and complexities in establishing an effective
distribution
network.
Stringent labor laws govern the number of hours worked and minimum
wages to be paid
leading to limited flexibility of operations and employment of part-time
employees.
Further, multiple clearances are required by the same company for
opening new outlets
adding to the costs incurred and time taken to expand presence in the
country.
The retail sector does not have ‘industry’ status yet making it difficult for
retailers to raise
finance from banks to fund their expansion plans.
Government restrictions on the FDI are leading to an absence of foreign
players
resulting into limited exposure to best practices.
Corporate Catalyst India A report on Indian Retail Industry
Non-availability of Government land and zonal restrictions has made it
difficult to find a
good real estate in terms of location and size. Also lack of clear ownership
titles and high
stamp duty has resulted in disorganized nature of transactions.