Retail In India

Dear Indians……it’s your world after all.

India – A Vibrant Nation
• • • • • More than a billion people Land area of 2.97 Sq. KM Stable Democratic Environment Independent Judiciary and Vibrant Media Most Richly Endowed Agricultural Nation in Asia • One Tenth of World’s Arable Land. 169 Million Hectares (more than China) • One Fifth of World’s Irrigated Land(56 Million Hectares). • Cost Line of 8000 KM, Vast Marine Wealth, 10 Major Ports.

India- A Trillion Dollar Market
• $ 690 billion GDP in 2005-06 : Services(54%), Agriculture(20%), Industry(26%) • $ 1 trillion GDP in 2010-11: Services(56.6%), Agriculture(15.3%), Industry(28.1%)
Estimates given by Planning Commission

Indian Human Resource
• 237 University- 8000 Colleges – 7.1 Million Students • Degree Level Professional Institutes
A. Engineering-351 B. Medicine:-246

• Scientific and technical personnel-3.8 million

Cattle/Marine/Milk Sector
• Sixth In Poultry production(842 Million) • 53% of world’s buffalo and 43% of world’s sheep • 7th largest in marine landings(5.8 million tonnes) • Largest producer of milk(84.5 million tonnes)

Indian Agriculture
• • • • • • • • • India, one of the world’s largest food producer. China: 856 million tonnes USA: 608 million tonnes India: 601 Million tonnes Second largest producer of fruits(46.64 million tonnes) after Brazil. Second largest producer of vegetables(78.19 million tonnes), after China(13% of the world production) 1st rank in the production of milk, pulses and tea in the world 2nd rank in the production of fruits, rice, wheat, vegetables, sugarcane in the world. 3rd rank in the production of coarse grains and edible oilseeds in the world.

Growth of Retail- Change Confluence Causing The Tipping Point in Consumption
Tech Comfort of Masses Spreading “Strong” India Getting Stronger Changing Shapes of Income Distribution Step Change in Consumption Comfort and Aspirations Sophisticating of Middle Class Consumer

Rural India’s Metamorphosi s

India’s Tipping Point

Growth of SelfEmployed Strivers

Generational Transition

Affluence Layers Based On Income
Income Classes Deprived Aspirers Seekers Strivers Near Rich Clear Rich Sheer Rich Annual Household Income(Rs ‘000) < 90 90-200 200-500 500-1000 1000-2000 2000-5000 5000-10,000 % of Indian Households in each income class 71.90 21.90 4.80 0.91 0.29 0.11 0.02

Changing Shapes of Income Distribution-Rural India
1995-6 Upper Upper Middle Middle Lower 2.1 3.1 8.6 57.2 2001-2 3.6 4.1 10.1 39.5 42.7 2005-6 5.2 5.0 13.7 43.5 32.5 2009-10 8.1 6.5 22.3 42.5 20.6

Lowe Middle 29.00

Figures are in percent

Changing Shapes of Income Distribution- Urban India
1995-6 Upper Upper Middle Middle Lower 7.3 9.6 20.3 27.9 2001-2 16.7 13.7 23.6 31.7 14.3 2005-6 23.6 15.0 23.4 28.1 9.9 2009-10 35.9 16.3 21.7 21.4 4.7

Lowe Middle 34.8

Figures are in percent

Consumer Stratification by Income and Expenditure
% of Population by Income Percentile Top 10% Next 30% Next 60% National Income Share of Each by % 34.1 36.1 29.7 Consumption Expenditure Share% 30.0 36.6 33.4

All Indian Household Spends
Segment Food & Grocery Rent & Utilities Education Fuel & Transport Apparel & Accessories Savings & Investment Communication Books, Stationery &Music Servicing of Loans Eating out & entertaintenment Toiletries & Personal Care Cable & Internet Footweer Consumer Durables Jewellery & Semi-precious stones Vacations OTC Drugs & Nutrition/Healthcare Toys & gifting items Homecare & Fabric Wash Household Help Mobile Phones Home Furniture & Furnishing % Share of Wallet 35.90% 13.60% 6.20% 6.20% 5.20% 4.10% 4.10% 3.00% 2.70% 2.30% 2.70% 1.90% 1.80% 1.70% 1.40% 1.60% 1.40% 1.40% 1.20% 1.10% 0.80% 0.50%

Sec “A” Household Spends
Segment Food & Grocery Rent & Utilities Education Fuel & Transport Apparel & Accessories Communication Savings & Investment Books, Stationery &Music Servicing of Loans Eating out & entertaintenment Toiletries & Personal Care Cable & Internet Footweer Consumer Durables Jewellery & Semi-precious stones Vacations OTC Drugs & Nutrition/Healthcare Toys & gifting items Homecare & Fabric Wash Household Help Mobile Phones Home Furniture & Furnishing % Share of Wallet 32.80% 13.10% 6.20% 6.80% 5.00% 4.90% 5.40% 2.60% 3.30% 2.30% 2.00% 2.00% 1.80% 1.60% 1.50% 1.80% 1.20% 1.40% 1.10% 1.90% 0.90% 0.50%

Sec “B” Household Spends
Segment Food & Grocery Rent & Utilities Education Fuel & Transport Apparel & Accessories Communication Savings & Investment Books, Stationery &Music Servicing of Loans Eating out & entertaintenment Toiletries & Personal Care Cable & Internet Footweer Consumer Durables Jewellery & Semi-precious stones Vacations OTC Drugs & Nutrition/Healthcare Toys & gifting items Homecare & Fabric Wash Household Help Mobile Phones Home Furniture & Furnishing % Share of Wallet 35.60% 13.40% 6.60% 6.30% 5.40% 4.30% 4.00% 3.00% 2.60% 2.50% 2.00% 1.80% 1.80% 1.80% 1.50% 1.50% 1.40% 1.50% 1.10% 0.80% 0.80% 0.50%

Sec “C” Household Spends
Segment Food & Grocery Rent & Utilities Education Fuel & Transport Apparel & Accessories Communication Savings & Investment Books, Stationery &Music Servicing of Loans Eating out & entertaintenment Toiletries & Personal Care Cable & Internet Footweer Consumer Durables Jewellery & Semi-precious stones Vacations OTC Drugs & Nutrition/Healthcare Toys & gifting items Homecare & Fabric Wash Household Help Mobile Phones Home Furniture & Furnishing % Share of Wallet 39.60% 14.30% 5.80% 5.80% 5.20% 3.20% 2.80% 3.30% 2.30% 2.10% 2.10% 2.00% 1.70% 1.30% 1.40% 1.50% 1.50% 1.40% 1.30% 0.50% 0.70% 0.40%

Thank you