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“We never created a group identity in the past….we can not be known as pantaloon. It was originally a trouser brand”Kishore Biyani
Mid 1980‟s – PRIL begin as a trouser manufacturer March 2006 – Pantaloon Group renamed as Future Group
Future Group Divided into six verticals .
PRIL announced an agreement to form joint venture with Italy based Generali Group with 26% stake. personal finance through its financial arm Future capital and Deccan chronicle Restructuring of Pantaloon group to consolidate the group leadership position and diversify into new growth areas in Indian Retail. 23rd May 2006. Future Group planned to operate its insurance and other financial services such as banking. Drivers of growth in Indian Retail Sector: Rising income Increased exposure to global products Indian attitude towards saving and consumption Better infrastructure facilities Greater employment generation .
The history of PRIL can be traced to the mid 1980s when Biyani quit his family business to start manufacturing apparels. and the name was changed to Pantaloon Fashions (India) Ltd. . In 1992 Manz Wear went public. In 1987 PRIL was incorporated as Manz Wear Pvt. Ltd and manufactured readymade trousers under „Pantaloons‟ brand.
After success of Pantaloon departmental stores encouraged it to come up with retailing formats such as „Big Bazaar‟. The major USP of the Big Bazaar was low prices and the best price proposition being offered to consumers. .000 sq feet. As a part of its low pricing strategy the stores mainly focused on unbranded products. „Food Bazaar‟ to retail food products. in Kolkata. which had an area of 30. In 2001 PRIL opened its first „Big Bazaar‟.
Subhiksha and Margin Free. These stores were designed based on PRIL‟s understanding of the domestic needs of Indian housewives. the first Food Bazaar store was set up in the Lower Parel region of Mumbai. Food Bazaar was performing well when compared to competitors like FoodWorld.“Ab Ghar Chalaana Kitna Aasaan”. . The caption used for promotion was.000 items at discounts ranging from 6% to 60%. Big Bazaar sold around 200. In 2001.
ft of retail space and over 100 stores across 25 cities in India. on the other hand it took 6 years to Food World. . It was reported Food Bazaar generated Rs. As of 2005. It employed more than 12. 2 billion in gross revenues.73 billion (US$ 242 million). 10.000 people and had a customer base of more than 120 million with a revenue of Rs.5 million sq. the Pantaloon Knowledge Group had 3. It was reported that Food Bazaar stores achieved a cash break even in the very first year of its launch.
Fashion segment. ride any dip in profits and out perform their rivals Weakness • “ Pantaloons does not function internationally. despite its IT advantages. In Food business. which has an effect on success. Trent. Lifestyle. Spinach. largest market share and capitalization. Shoppers Stop. and retaining them. It invests time and money in training people.Strength • “ Pioneer in the industry. • “convenience and a wide range of products all in one store • “ Highly Strategic human resource management and development. Food World . as they do not reach consumers in overseas markets. • “ PRIL is the World‟s largest grocery retailer and control of its empire. • “ Most trusted and respected brand by the consumers • “ Being financially strong helps pantaloons retail India deal with any problems. Reliance Fresh. could leave it weak in some areas due to the huge span of control “ Each business line faces competition from specialty companies.
“ Organized retail is only 3% of the total retailing market in India.a. It is estimated to grow at the rate of 25-30% p. and variety of products and stores) . “ Consumer lifestyle changes could lead to less of a demand for pantaloons retail India products/services • “ Price wars between competitors. property. merge with. price cuts and so on could damage profits for pantaloons retail India. or form strategic alliances with other global retailers. Even now malls are just a place to hang around with family and friends and largely confined to windowshopping. Opportunities • “ Huge untapped market. • “ To take over.Threats • “ Being number one means that you are the target of competition. “ Shopping Culture: Shopping culture has not developed in India as yet. focusing on specific markets • “ New locations and store types offer PRIL opportunities to exploit market development.(Diversification into insurance .
In March 2006: Pantaloons renamed itself as ‘Future Group‟ The new group was set up to drive growth through consumer insights and scenario planning Six business verticals Future retail Future space Future brands Future media Future capital Future logisti cs .
Verticals Verticals Future Retail Future Retail Future Space Future Space Future Brands Future Brands Future Capital Future Capital Description Description Food & fashion Food & fashion Management of shopping malls & Management of shopping malls & real estate real estate Management of owned & licensed Management of owned & licensed brands brands Financial products & services Financial products & services Future Media Future Media Future Logistics Future Logistics Focus on development & Focus on development & management of retail media management of retail media space space Deriving efficiencies through better Deriving efficiencies through supply chain management better supply chain management distribution distribution .
Developed a B2b model To strengthen its back-end supply chain sourcing capabilities. of departments from 16 to 28 with an average area of 20. To reduce costs and to increase business volumes.000 square feet. . Launched 2 fashion stations. 4 Big Bazaar hypermarkets and 6 new food bazaar stores. Able to cater in different consumer segments. Able to generate a new market share in retail industry. Increased no.
and has a Huge investment capacity It offers a family shopping experience.Direct Access to Indian middle Class masses Strong Brand Name Strong Bargaining/Procurement Power Everyday low prices. Increase in Land value of Village people providing huge purchasing power. . where entire family can visit together. Wide presence in India covering almost all major cities and towns Available facilities such as online booking and delivery of goods. Trying to address multiple Customer needs Stiff competition from global players means market share growth is limited Extremely popular means heavily crowded during festive/discount seasons SWOT Evolving customer preference in recent year Organized retail is minute in India Global expansion and tie-ups with international brands. Global players trying to enter into Indian market Low priced product could be perceived as low quality product Government policies are not well defined in country like India. which attract customers.
• ILCL owned popular clothing brands like Scullers and Indigo nation.Jan 2005 • PRIL acquired 68% stake in apparel company Indus League Clothing Limited (ILCL). Limited. Galaxy will fill that need for the aspirational customer” • PRIL plans to acquire 49% stake in Planet Sports Pvt. for Rs. . 142million.9 million. 88 million. Feb 2005 • Planet Sports was the sole franchise in India for Marks and Spencers (UK based Retailer) • It had distribution licensing rights for brands like Puma. a sports goods and apparel retailing company. • Biyani said “Leisure and entertainment account for over 6% of the aspirational consumer spent and is growing rapidly. Speedo and Converse. Feb 2005 • PRIL acquired 15.73% stake in Galaxy Entertainment Corporation at a investment of Rs. Wilson. The acquisition cost the company around 240.
• It was the main supplier of food products to its food bazaar stores. • PRIL stepped into retailing of footwear by forming a JV called foot mart India Ltd. 127. September • PRIL holding 51% stake. Ltd. .April 2005 • Pantaloons food product( India)Ltd. March 2006 • PRIL‟s subsidiary ILCL formed a JV with UK based Lee Cooper to distribute and sell Lee Cooper Brands at its retail outlets in India. it invested Rs. With Liberty shoes Ltd. 2005 January 2006 • PRIL formed a JV with Gini and Jony Pvt. Was incorporated as a subsidiary of PRIL with a 100% stake at an investment of Rs.5 million in the JV. 50 million. For the purpose of setting up a retail chain for kids wear .
May 2006 • PRIL form a JV with Italy based Generali to form a JV called „Future Generali „ with 74% stake and an investment of Rs. . Rediff. Fabmail. • For retailing health and fitness products and services. 250 million • PRIL ventured into online retailing by launching its e-retail portal. August 2006 • PRIL entered consumer durables retailing business by entering into a JV with Videocon Industries LTD. and Indiatimes May 2006 June 2006 • 50:50 JV with Talwalkars Better value Fitness Pvt Ltd.com • New venture was part of Biyani‟s strategy to counter competition from leading e-commerce portals in India like eBay. futurebazaar.
coca cola. . etc. New talent Professionalize the business Utilize the expert of highly qualified and experienced executives Senior level management – Goldman sachs.
3%) . Future Capital PHF Investment Advisory Low attrition rate (8.Recruit Sameer jain Sanjeev gupta Atul kapur Neeran chibber Roopa purushotham Shishir baijal Previous post MD – Goldman Sachs CEO – Coco-Cola MD & Principal strategist of Goldman Sachs Ex-Bharti president & CEO Ex-Goldman Sachs chief economist & strategist Ex-Inox Leisure MD & CEO Division CEO .FCH Indivision Indivision Communication products Head –Creative research team.
J Somaiya institute of management studies and research (mumbai) Institue for integrated learning in managemet (delhi) Business school (chennai) . Welingkar institute of management development (mumbai) K.
e. Size of the Indian retail industry estimated at US$200 billion in 2006 For year ended June 30. i. 2006 (increase of around 186% over corresponding previous year) .10.5 million in previous fiscal year Net profit of Rs. Rs.72 billion as compared to Rs. PRIL reported a total income of Rs.386. 30.5 million for 2005-06 as against Rs.38.88 billion in 2004-05 66. 2006. 641.4% rise in net profit.4 million for the quarter ended Sept.18.
2006. PRIL could also face competition from foreign investors In Feb. Biyani was against allowing FDI in Indian retail sector . Government allowed single brand retailing in India upto 51% In July. Competition from domestic competitors like Shopper‟s Stop and Trent Ltd. 2006. Wal-mart had received permission from Indian Government to set up two liasion offices in India Mr.
Share of organised Indian retailing was only 3% as compared to the total volumes in retail industry Future Group faced a more immediate threat from Reliance Retail Ltd. turning PRIL into a US$7 billion company with over US$1 billion in profits by the year 2010 .340 stores. Biyani had plans to enter into wholesale trading Planned to open KB‟s Wholesale Market similar to Wal-Mart‟s Sam‟s Club Plans to launch 18 formats and over 3. from Reliance and international retailers. Mr. To counter competition.
200 crore and a follow up issue of around Rs. Mr. In Sept. Biyani planned to raise around 10 billion over next 18 months Rs. 2006.500 crore will be raised by divesting stake in some subsidiaries.260 crore Planned to split his business so that he could raise money separately from each business entity . also looking at a preferential allotment of around Rs..
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