eng BSTR/043 IBS Center for Management Research Westside - The Indian Retailing eo This cave was won by Vandana Bhatia, under te. Duta and K. Subhadra, IS Cente for Management ‘Research. It was compiled from published sources, be used as a basis fo class cisussion rather than fo ‘usta ether elective or inefectve handing of SO (© 2003, BS Center for Management Research Al ights reserved. “Torder copes, call 91-8417-23686716 or wi to IBS Corer for Management Research (]OMR), HE Campus, Donhanapaty, ‘Sankarepally Road, Hyderabad 501 804, Andhra Pradesh, Ina or ema: ifo@oninda. org www.icmrindia.orgLents Westside — The Indian Retailing Success Story “Our biggest strength is that we keep on refining ourselves and improving our offering - both product- and service-wise, correcting our mistakes, and this keeps us going.” - Simone Tata, Chairperson - Trent “Being a brand retailer, we are able to develop our style and image in4 manner whereby ‘customers can build a relationship with us.” - Himanshu Chakrawarti, anager — Trent WESTSIDE LOOKS NORTH In 2002, Westside signed on a leading Indian cricket player, Yi its celebrity endorser for a period of 3 years. Westside sources announced that Yi id promote Westside Pune afd Delhi. Commenting on general manager, marketing, Trent, said, “Yuvraj epitomizes the Westside name in & he is stylish and trendy, Yuvraj personifies all the qualities that a modern dg indomitable spirit, abundance of talent, great energy and uncontrollable enthusit This move surprised industry analysts, as it time an Indian retailer was going in for a i ‘marketing campaigns on television and in 00 million'. According to company sources, the new Bo its focus on styling, affordability and quality, and its ~ Shoppers” Stop and Globus (Refer Exhibit 1) — who targeted the upper class, We ‘middle and upper middle class consumers, who constituted a large portion of Indi tion. BACKGI In 1952, the ed the cosmetics business through Lakme Ltd. By the 1990s, Lakme was the leading cosnigjiés brand in Indian as well as in international markets. In 1996 Lakme entered into a joint venture with Hindustan Lever’ for the marketing and distribution of Lakme brands. In 1997, the Tatas sold their stake in Lakme to HLL for Rs 2 billion. After selling off their stake in Lakme, the Tatas scouted for business opportunities and decided to ‘Venture into retailing. Retailing was at a nascent stage in the late 1990s, and it was expected to be a booming business in India in the following decade (Refer Exhibit Il for note on retailing industry). In 1998, the Tatas ventured into retailing, acquiring the Britain-based Littlewoods retail stores in Bangalore. The company was renamed, Trent Ltd., and the Littlewoods stores were renamed Westside. Along with the Littlewoods stores, the Tatas acquired the firm's warehouse and infrastructure. These provided an established supply chain and trained personnel for Westside. As on May 21, 2003, $1=Rs 46.7915 > The Indian subsidiary of the FMCG major Unilever.Westside - The Indian Retailing Success Story By 1999, Westside had expanded its operations to Chennai, Mumbai and Hyderabad, and by 2001 ithhad a second store in Mumbai, and a store each in Pune, Kolkata and Delhi. In 2001, Westside hhad average sales of just above Rs 5,000 per sq ft. in all its stores. By 2002, it had a store in Nagpur and a second store in Delhi. In 2002, Westside reported a net profit of Rs 102.2 million (Refer to Exhibit IM} and it also reported cash break-even in the same year. Analysts felt that the surplus cash reserves from the sale of Lakme provided the financial back-up for Trent-Westside. With cash reserves of around Rs 1.61 billion (on 31 March 2000), Trent had the option of avoiding high interest debts for its expansion. The company planned to increase its retailing space to 0.3 million sq ft. by 2003, from 0.12 million sq ft. in 2001. The firm wanted to ‘expand Westside’s operations to other cities. ‘Trent announced that it would enter food retailing by the end of 2003 with an estimated investment ‘of Rs 400 million. It planned to establish a chain of 100 grocery and food stores under a new brand name within five years from 2003. The stores would sell mainly food and company planned on a total floor space of around 1,000-plus sq ft for its 5 Trent also announced that it would try to build its own brand in initially it would sell all brands. The food retail chain would be lat then in other parts of the country. The firm planned to acqyi lished chain of stores Cd ere ac Np ing to two South India-based food retail chains — Bangalore-based Nilgir i-based Subhiksha, in this regard. ‘THE WESTSIDE MODEL ide conducted market research on retailing observed that in India, garment retailers in the ratio of 30:70, as it was easy to Many major international retailers stocked increased store loyalty and less restriction in terms ig OF only store-owned brands for Indian retailers posed offered high margins, retailers suffered on account of established many outlets) and heavy investment in brand generally stocked both store-owned byf attract customers for the established only their own brands because of of display, price and promoti ‘certain problems, however. poor economies of scale (until building While all major Ind brand. This yore hains stocked established brands, Westside decided to push its own Ompany to eam high margins as own brands generally return higher fiad more control over the manufactures, quality and distribution of its own fle quality of its products, Westside implemented strict quality control terial sourcing, designing as well as manufacturing. By selling the products brand, the company was able to eliminate intermediaries and saved on intermediaries’ commissions, leading to higher margins compared to other stores. These savings were directly transferred to customers by selling at much lower prices. Westside faced many problems initially. One of them was the expensive real estate, In order to save costs on real estate, Westside decided to get shop-space on lease. This saved it some money till it was able to build up its finances. Another challenge for the company was to find sufficiently spacious locations for its showrooms ~ a difficult task in the metros. To overcome shortage of space, Westside adopted a free form retail layout, also known as a boutique layout, which arranged fixtures and aisles asymmetrically (Refer Figure I). The stores were like grand living rooms where the merchandise was displayed at two levels on a single floor. Thus when customers entered the stores, they felt that a huge range of goods was available. Merchandise was kept in separate ‘clusters. Though there were individual product sections, no attempt was made to separate out the sections. For example, womenswear and women’s accessories were all displayed at one place, j = ~2 = < -Westside - The Indian Retailing Success Story Tid rather than stocking cosmetics at one level and ladies’ wear at another level; this enabled customers to complete their shopping quickly. The stores had adequate space ranging from 10,000 0 20,000 sq ft. so that customers could move around and select items. Figure Westside Layout Westside categorized its retail business into two divisifns ~ the division and the products division, and these divisions were further categoriaed into deven departments. The apparels division dealt with menswear, womenswear, Ii igstvear, while the products division dealt with household accessories, gifts and he product categories were further divided into classes of goods; for exampl swear was classified into formal and informal. Each class had a sub-class, which was, specified the design, colour, size, and flimensidns of the product. All the lines had individual Stock Keeping Units (SKUs) All the seven departments offered Dcomiplet¢ range, with every store stocking a total of 30,000 SKUs of the various pr wverage. Westside sourced all its merchandise from 250 ‘vendors, and most of them eXporters from Delhi, Mumbai and Bangalore, looking for an festside adopted the scheme of centralized buying for al its perfumes and cosmetics, which were locally purchased, to avoid wed that Westside carried 63 days of stock days, which compares mpanies like Gap* and Nordstrom’, which carry 67 and 89 days of ‘The seven depattmnesital heads had to report to the head of merchandising. Every department had a buyer and a merehandiser. The assistant buyers, specialized in the individual classes in each department, assisted the buyer. The merchandiser played an important role in product allocation to the stores, and the maintenance of merchandise and other data of each store. The merchandiser also sourced the new designs and fashions to be offered in the stores. A stock keeping unit is « group of items offered for sale, of the same brand name, quantity of contents, and retail price. It is also the smallest unit of an item that may be dispensed from inventory or returned to a vendor, Gap Inc. (Gap) is a leading international specialty retailer which sells clothing, accessories and personal care products for men, women, children and babies, under the brand names: Gap, Banana Republic and Old Navy. Gap operates more than 4,100 stores in the United States, the United Kingdom, Canada, France, Japan and Germany. Nordstrom is one of America’s leading fashion retailers, which sells a wide variety of fine quality apparel, shoes and accessories for men, women and children, at stores across the country. —3Bann ‘Westside - The Indian Retailing Success Story Westside's apparel section contributed 79% of its total sales when compared to Shoppers’ Stop’s 73% and Pantaloons’ 91% in February 2002 (Refer to Table 1). In apparels, while 75% of Shopper's Stop sales came from established brands, around 95% of Westside’s sales came from its in-store brands: Westsport, Stone River Classics and Westside, Table I Share of Various Product Categories in Total Sales (Feb. 2002; in %) Westside | Ebony Pantaloon | Benzer | Shopper's Stop Apparel 19 60 a1 61 B Footwear : 3 : 1 2 Jewellery + Wristwear 9 9 3 19 i + Fashion accessories Cosmetics + Fragrance 3 9 : 4 7 Home fashion 8 15 * 10 Toys Games & Misc 1 4 2 ‘Source: Images India Retail Report 2002 ‘Westside positioned its products in the value for offering premium quality products at affordable prices. It priced its products at than, its competitors. It offered high quality, ‘customers a pleasurable shopping experi we are able to develop our style and ima with us.” He further said, “We also of affordable style.”* Westside’s fo level as, or in some cases, lower ‘and a range of products to give cording to Chakrawarti, “Being a brand retailer, whereby customers can build a relationst pricing and are able to fulfill the promise ‘one of the reasons for its increased sales in AMES were sold under the Westside brand. Trent had an nds in India for a limited period. Thus Westside stores ', along with the store brand Westside. The quality of the of pfemium brands, and their apparel was priced at a discount ‘Westside’s in-store brands used exclusive designs and materials, compared to I Yong with affordable products, good store ambience played an important I8p realized that many consumers were not comfortable when they shopped at large departmet as they had to struggle to find what they wanted in overloaded shelves. In order to provid®’a better shopping experience, Westside focused on the consumer's comfort. It took care that the shelves were not loaded with unsold and outdated merchandise. Westside focused on providing a pleasing store ambience and convenience so that customers went home ‘with an “I-got-a-quality-product-at-a-reasonable-price” feeling. Westside catered to a wide range of age-groups with different tastes and requirements. In women’s ‘wear, there were Westem casuals, Westem formals and Ethnic wear, with the Westside label. In ‘Wester wear, the range had great depth right from basic lines to casual wear. The focus was on a clean and clear style and the look was vibrant. Flatfront trousers, three-fourth-length tops, cotton-linen blended shirts in bright colours, multiple-function jacket suits, and long wrap-around skirts were some of the items included in Wester wear. Along with its in-store brands, Westside introduced its designer © ‘The Westside Story: Fashioned to Succeed, Sujatha Agarwal, www tata.com, May 31, 2002. 7 Stone River Classic is a brand of Littlewoods stores which was acquired by Westside, 4z= Westside - The Indian Retailing Success Story range of clothing. Westside expanded its range of merchandise by offering outfits from some of India’s best-known fashion designers like Wendell Rodericks, Anita Dongre, Krishna Mehta, Monisha Ba and Mona Pali, who were prepared to work within the chain's price points. ‘The kids’ garments had a sporty and international look that was hip and trendy, and catered to a wide ‘age-group right from infants to early teens. Funky kids wear included clothes in the Gypsy, Sporty and the Guns'n Roses lines for girls, and the Skull and Studd lines for boys, plus the Harry potter collection. Tn Menswear, the range extended from formals, casuals, ethnic and sportswear to party wear in the latest styles. In the Household section, every item was exclusive and unique. The household range included towels, bathroom sets, bed linen, table linen, and crockery. The merchandise was well coordinated and customers could mix and match, The range was changed frequently (there were new introductions every week) so that people could choose from new designs. Westside also offered range of handbags, jewelry, scarves and accessories. The gift section had plenty of items to choose from, including terracotta pots, ums, and divas in various colours, shapes and sizes. The store had also introduced a new range of furniture and cabinets, butler trays and mirrors with antique wooden frames. A range Jtems in wrought iron and rope was introduced, including magazine racks, folding st Ganesha idols in brass and terracotta When it wanted to enter a new city, Westside focused fi member in-house team consisting of senior managers in cl information about the population, the demand potential i potential, car ownership and lifestyles in a potential Igeaion. Besides‘its in-house research team, Westside also approached other Tata companies s a and Tata Engineering” for details about surveys to understand customer behavior, tum helped the chain build customer loyalty. Westside personnel did not ask ques jemand a bill, when a customer wanted to retum goods or exchange them. The sfore’s tit in its customers reflected the confidence they had in their own product, and this he customer loyalty. Commenting on the focus on customer service at Westside, Si “We've learned enormously through the years. It is absolutely essential to lis — what they want in terms of style and price, and to understand the demographics oPit all. I'S continuous learning.” Westside realized 0 “customer service, it was important to have good employees. Hence Westside fogus ecruiting young and smart people with a pleasant personality and ‘good ications e company provided continuous training to its salespeople in ways to deal wit ad-to improve their communication skills. Westside provided continuous feedback 16 ‘about their performance, to help them to improve further. It encouraged ite in company activities and gave importance to employee suggestions preferences and latest styles. It also introduced a new computerized system, which enabled thé employees to access the information about the availability of colors, fashions in the store, faster, and this helped the employees to service customers faster. ‘Titan watches is a part of Tata group of companies formed in 1985. The Taj group is India’s largest hotel chain. Voltas Ltd. is India's premier air conditioning and engineering services provider. Tata AIG General Insurance Company Lid, and Tata AIG Life Insurance Company Ltd., (collectively "Tata AIG") are joint venture between the Tata group and American International Group, Inc. (AIG), the leading international insurance and financial services organization, based inthe US. ‘Tata Engineering and Locomotive Company Ltd (Telco), the Tata group's flagship company, is the leader in the commercial vehicles segment. ‘The Westside Story: Fashioned to Succeed, Sujatha Agarwal, www.tata.com, May 31, 2002. 5 e‘Westside ~ The Indian Retailing Success Story The importance of IT was also recognized. The company used the software package Retail Pro at the POS (points of sale). IT was used in functions at all levels and increased Westside's efficiency ‘greatly. Westside had a sophisticated electronic system that kept the level of shoplifting and sales manipulation at less than 1%, compared to other retailers with a level of 6% each year. PROMOTING WESTSIDE Westside gave a high priority to marketing in order to increase brand awareness among consumers. ‘The company focused on two parameters - style and affordability - to communicate to potential ‘customers. The company realized that these were the two pillars based on could make an impact on customers. The stores were positioned on the ‘fashion at affordable pricing’ platform. ‘The store level promotions were integrated with extemal communication through advertising. In- store promotions were used to give the shopper a feeling of getting greater value, to offer a good shopping experience. ‘Westside’s total advertisement spending was 8 per cent of its sales. building through advertisements in the media and also through peaked during summer, Diwali and Christmas. During the Div launched a “Festival of Delights” program which gave each first prize was a Tata Safari (a multi-utlity car) atthe Mt at the 4 other stores in the country. The 2% and gular brand ase proffotions, which ;on in 2000, Westside ed 2 scooters per store, Benz. Most of the store promotions were based other attractions. In the year 2001, We up the Revlon girl, Fleur Xavier (one of India’s top models) for an exclusive on contract, to promote its stores in Bangalore, Chennai, Hyderabad, Koll i and Delhi. Along with heavy advertising : It launched Clubwest in May 2001. 6n to become the fastest growing loyalty program in the retail segment in India Clubwest allotted points to its members, under two programs - Clubwest Classic &Clubwest Gold, depending on the value of purchases made, The shing decorations, live bands and membership was v members enjoyed the benefits across all Westside stores in India. The ived mailings six to eight times a year. These included the announcements_of for apparel, home furnishings and other Westside merchandit lubwest rewarded its members with invitations to special sales, rebates at bf the Taj group, and holiday packages. By 2002, Clubwest had about 80,000 FUTURE OUTLOOK The greatest challenge for Westside is from the unorganized sector (98 per cent of India’s retail {garment industry operated in the unorganized sector) and to @ lesser extent, from similar organized players. According to Chakrawarti, “The main job was to get people to visit organized stores such as Westside instead of buying from unorganized players.” ‘The general perception in India is that organized retailers are more expensive than unorganized ‘ones. Westside responded to this by connecting price to quality. It had to make customers realize ‘that they were getting the latest style at very good prices, and in a comfortable environment. The Retail Pro® is the leading point-of-sale and inventory management software used by specialty retailers worldwide, - —6 = °Westside - The Indian Retailing Success Story other challenge for Westside will be to compete with ther retail fashion businesses in India (both Indian and foreign) such as Wills Sport”, Raymond’s (Be)'*, Globus”, Nike'", Crocodile”, “Mango” and Marks & Spencer”. QUESTIONS FOR DISCUSSION: 1. While most major Indian retailers sold established brands to a greater extent than their own brands, Westside retailed its own brands to a very large extent. Examine the reasons for Westside’s decision to sell its own brands rather than established brands? What are the advantages and disadvantages of stocking store-owned brands? Give reasons to support your answer. 2. Discuss the Westside retail model in detail, examining its retail layout, i research and customer feedback, the positioning of its products and its promotions. Which of the above strategies have contributed crit the success of Westside? How far are those advantages sustainable in the long 3. While the retail clothing industry is predominantly organized players is still acute, with many leading international players showing interest. Analyze the lifestyle products industry with special reference tq recommend for Westside to position itself effecti © ‘The Wills Sports range of international quality casual wear was leunched by ITC Limited in 2000. This range was showcased in ITC’s Wills Lifestyle store, an exclusive chain of retail stores Raymond Be is an exclusive line of ready-to-wear designer clothing for women and men in western, ethnic and fusion styles, manufactured by Raymond Ltd, Globus is « multi-brand convenience store, aimed at providing lifestyle products to mass consumer. It relies on its team of in-house brands, apart from stocking the brands of other branded players. US based Nike isa leading international sports and casual wear brand. Crocodile Garments Limited manufactures and sels garments under the Crocodile brand ® Mango is leading Spanish clothing retailer ‘Marks & Spencer is a British retailer with its own brand: St, Michael -- —4 =Westside - The Indian Retailing Success Story Exhibit 1 Profile of Competitors of Westside SHOPPERS’ STOP. ‘Shoppers’ Stop Ltd. (SSL) is the pioneer in India’s retail revolution. SSL redefined the concept of ‘shopping’, by trying to provide Indian consumers with an international shopping experience. ‘SSL was promoted by the K. Raheja Corp Group (Raheja Group) of companies in 1991. It started operations with the redevelopment of one of the group's properties in Mumbai, Maharashtra, setting it up as the first Shoppers” Stop outlet. The group identified SSL’s vision as follows: “To be a global retailer in India and maintain the number 1 position in the Indian ‘market in the department store category.’ Its first store was a menswear store with a floorspace of just around 4,000 sq.ft. in Mumbai. Later, other fashion and lifestyle products and accessories were included. ‘Around 85% of SSL’s merchandise was branded and it stocked mor international brands. Within a short period SSL emerged as the largestei Pepe, Lee, Arrow, Zodiac, Reebok, Nike, Parker, Ray-Ban, S Mattel and many other leading brands. The company monitored brands, and if any failed to meet customer expectations, it range of private labels like — Life, Kashish and Karrot i value fashion segments. A team of designers was institutes to develop private labels. SSL established its stores in all the major cities in -withyStore space ranging from 18,000 sq.ft. to 60,000 sq.ft. It opened its Bangalorg/utlet in T9957the Hyderabad outlet in 1998 and the Delhi and Jaipur outlets in 1999. In f to become the number 1 retailer, it focused strongly on quality, and was the in India to become a member of the Intercontinental Group of Dep: (IGDS) consisting of 29 experienced retailers from all over the world. GLOBUS STORES Globus Stores Pvt. Ltd, ( customers are from the middle thed in 1998, by the Rajan Raheja Group. Its target d upper middle class, and it sells various lifestyle products. (Madhya Pradesh) and the second store was opened at T- ‘Nagar in Chennai he third store was opened in Mumbai in November 2001. By 2003, Globus had fi jo in Madras and one each in Mumbai and Indore, with a around Globus cat under 7 product departments- menswear, ladies’ wear, kids’ wear, oftswear and novelties. Globus's Indian wear and Western wear for women ‘were reported t0'be its fastest-moving products. Together with established brands, Globus also stocked its store-owned brands ~ Globus, and F21 ~ the unisex fashion brand targeting younger generation. Globus recruited designers from the National Institute of Fashion Technology and the National Institute of Design to design its in-house brands. In cosmetics, Globus stocked foreign brands like Maybelline, Escada and Burberry's, as well as Indian brands like Shahnaaz Hussain herbals and Fem Botanica. In menswear, it stocked established brands such as Van Heusen, Peter England, Louis Phillipe and Green Channel and its own brands like Oak Valley ‘and Twilight. It also used technology productively. Globus installed a supply chain system, costing Rs. 100 million, supported by ERP software from the US company, JD Armstrong. In 2003, the group announced plans to set up 25 stores over the next five years covering all metros and A-class towns. ‘Source: IBS Center for Management Research Se '‘Westside — The Indian Retailing Success Story Exhibit 11 A Note on Indian Retail Industry For many decades, regional players dominated the retailing sector in India. There were no players with national presence in the Indian retailing. In the 1980s, Indian retailing sector ‘witnessed some action with textile companies like Bombay Dyeing, Raymond's, S Kumar's and Grasim establishing retail chains. It was only in the late 1990's that pure retailers, who focused only on the retailing business unlike previous players who even had manufacturing facilities entered the retail scene. These new entrants targeted consumers on the platform of lifestyles. ‘According to Economic Times report on Retailing segment, in 2001 Food occupied the largest chunk of total retailing market in India, Food retailing saw some action at the national level with players like Foodworld and Subhiksha, establishing their stores all over India in late 1990s. However, it was the non-food sector that saw tremendous action and developtpent in the Indian retailing sector, with introduction of more product segments. The new,segments included the lifestyle/fashion segments (Shoppers’ Stop, Globus, Wests ad LifeStyle), appareVaccessries (Pantaloon, Levis and Reebok), booka/mmsicigAy Crosswords, Landmark, Planet M) and pharmacy (Health and Gowan the organized retail market had the following segments: Music World, . By 2000-01, Organized retail by segment O1 (In Rs billion) Textiles and Clothing 40 Jewelry 20-25 ‘Consumer Durables 1s Footwear 13-15 Food & Personal Care 10 ‘Non-store retail 9 [ Luggage, watches and’ 5 Books & Music 39 — Retail & Consumer From New Delhi to New Zealand- October 2002 ‘The emergend ents also resulted in new store formats. The new store formats in © Large Supermarkets (3,500 5,000 sq. ft) ‘© Mini Supermarkets (1,000 2,000 sq. ft) ‘© Convenience Stores (750-1000 sq. ft) ‘© Discount/shopping list Grocer Grocery retailing witnessed slow growth in the organized retail market because generally, an ‘urban household placed orders on the phone to its nearby kirana store, with the grocer even arranging for home delivery and extending credit to customers. However, in early 2000, food retailing too saw increased action due to the increasing number of nuclear families with both husband and wife working. Contd...Ess] Westside ~The Indian Retailing Success Story Contd... The population increase in cities and the related difficulty in commuting also triggered the ‘demand for one-stop shops, which offered a wide range of products at one place. In addition to above factors, increased economic growth, consumerism and rapid urbanization also fueled the ‘growth of organized retailing in India, The growth rate of India’s gross domestic product in 2001-2002 was 5.4% and the purchasing power ofthe urban middle class also increased inthis period. In the organized retail market, the players belonged to various categories; some of them were real estate developers who converted their properties, which were not in prime areas into retail stores of high value, for example, the Rahejas of Mumbai (Globus and Shoppers’ Stop) and the D.S. Group of Delhi (Ebony). The manufacturer-retailers included Raymond’s, Arvind Mills ‘and Titan (watches). With retailing emerging as a sunrise sector, many corporates also diversi business. For instance, RPG diversified into retailing with its F Health & Glow stores. The Tatas entered retailing with Westside, w launched Planet M, and the Piramals entered with Pyramid. into the retail je World, and &Co, ‘The low real estate prices in 1990s, boosted the growth of, eSbecially low real estate prices in south India increased retailing activity in south, sred to North India where the real estate prices were high. Another factor nized retailing was the government's move fo allow FDI inthe retailing ser with ‘of 49% in 2000. Upto the 1980s, there were very few foreign players like Nika Bata and Benetton in the Indian retailing sector. This was due to restrictions i i ‘ot develop, However with reductions in jaifs on imported goods and fewer restrictions on foreign ownership, more global players bean ehtering India in 2002. According to a survey by Price Wa in India, in the year 2002, there were 12 million retail establishments in India employing 20 million people. In the same year, the retail ‘market in India was worth 80 billion, approx. Rs 9,000 billion and organized retail ‘business was valued at only. GHFOr 1.6% of the total retail sales. An estimate showed that the organized retail mark be worth Rs 1,600 billion in 2005, constituting 15% to 20% of the total retail market, ah that it would grow to 30% of the total retail sector by the year 2006-2007. Adapted from varios jand magazine articles. “ = 10 eS -Westside ~ The indian Retailing Success Story Exhibit 111 Westside Income Statements for the Year Ended 31st March 2002 (in Rs milion) Particulars 2001-2002 | 2000-2001 Total Income 906 6613 Profit before Taxes and diminution in value of | 130.4 150 long-term investments Provision for taxation 12.1 02 Profit after Taxes and before diminution in Value | 118.3 149.8. of long-term investments Provision for diminution in value of long-term 20 50 Investments Profit after taxes and provision for diminution in value of long-term investments Excess Tax Provision for prior years (net) Net Profit a Balance brought forward from previous year 64.6 59.8 Balance available for appropriation 166.8 161.5 Interim Dividend 65.6 : Final Dividend = 78.7 Tax on Dividend - 8 ‘Transfer to general Reserve 103 10.2 Profit carried forward 90.9 64.6 1668 161.5 ‘Sales and Profitability Summary Sales (In Rs billion) Sales Growth (in %) 8 0.258 82 1999 0.106 59.0 2000 0.336 2173 2001 0.400 19.0 2002 0.683 70.7 Source: www.indiainfoline.com = mesCMR Westside ~ The Indian Retailing Success Story Additional Readings & References: 1, Westside Wears A Festive Look, November 5, 2000. 2, Trent To Foray Into Grocery Retailing, The Hindu Business Line, May 19, 2001, 3. Westside’s ‘Festival of Delights’ For Diwali, www.tata.com, October 17, 2001. 4, Westside Signs Up Fleur Xavier, www.tata.com, March 18, 2002. 5. Agarwal Sujata, The Westside Story ~ Fashioned to Suceeed, www tata.com, May 31, 2002 6. Trent To Pump More Funds Into Westside, The Hindu Business Line, August 14, 2002. 7. Retail IT Mantra Gets Real: Think Beyond US Model, www.financi ‘August 26, 2002. ‘Home Sweet Home, Westside Style, www-tata.com, August 27, 2 9, Glitz and glamour unleashed, www.domain-b.com, August 27, 2 10, Too Much Fashion... Now Let's Talk Style: We s Delhi By Storm, www.domain-b.com, August 27, 2002. 11, Westside Signs Up Dashing Left-Hander Yuvraj im, August 29, 2002. 12, Agarwal Sujata, Helping Turn Westside Into a . ‘Novernber 30, 2002. 13, Jain Namita, Westside Story, Business S ‘The Strategist, February 18, 2003. 14, Somayaji Usha, Jagannathan, V, Celebrating the’ ‘Westside, www.domain-b.com. 15, _www.indiainfoline.com 16, www.tata.com 17, www.domain-b.com 18. www.equitymaster.com