Uday Mishra GSBA Gr. Noida firstname.lastname@example.org
August 19, 2010 1
DEFINING RURAL INDIA RURAL RETAIL SCENARIO IN INDIA REGULATIONS AND POLICIES IN RURAL RETAIL SIGNIFICANT PLAYERS – 1.goderj adhar 2.itc -chaupal 3.hariyali kisan bazaar BUSINESS MODEL OF ITC IMPEDIMENTS & RECOMMENDATIONS
August 19, 2010 2
Census of India defines Rural Settlements as......
Population lower than 5,000 persons Population density lower than 400 persons/sq. km At least 75% of male population engaged in Agri. activities.
August 19, 2010
RETAIL TOWARDS RURAL AREAS GREAT OPPORTUNITIES FOR MARKETER THE INDIAN RURAL MARKET
August 19, 2010
• Rural India consists of 720 Million
consumers across 6.38.000 villages
• ---17% of these villages account for 50% of
the rural population and 60% of the rural wealth
• ----Extensive reach is required as to cover
50% market 1.00. 2010 5
.000 villages must be catered Immense opportunity amounting to US$ 125 billion
vegetables.• Rural Retail is growing @ 7% p. as well as beverages
• Demand for better quality food leading to
huge demand for basic foods
August 19.a. • Rural consumption is also shifting from basic
food grains to fruits. dairy and poultry products. 2010
August 19. 2010
August 19. And up to Rs 240.000 crore rural retail market is expected to cross Rs 180. Changing consumption patterns. 2010
. 000 crore by 2015 (CII).The Rs 140.
The rural revolution is driven by
Rising purchasing power.000 crore mark by 2010.
increased access to information
and communication technology. 2010 9
improving infrastructure increased government
initiatives to boost the rural economy.
.OCCUPATIONS Cultivator Petty Shopkeeper Wage earner Salary earner Others
URBAN 5 15
RURAL 40 5
US India Total Retail
Value $ bn
China 323 180
% Salience to above Traditional 15 Modern 85
August 19. AC Nielsen Source: AC Nielsen
. IRS 2006. 2010
Source: Census 2001.
Is a value seeker Seeks comforts and amenities Does not wish to be seen as the
deprived cousin. Values local relationships because of unfavourable past experiences
August 19. 2010 12
. Does not experiment easily but this does not mean that “he would not change”.
1 of 1937)(as amended up to 1986)
August 19. 2. 1937
(ACT No. Indian Land Acquisition Act 1894 3. the government announced a long term Pricing policy for urea. In the year 2002-03. Agricultural Produce (Grading & Marking) ACT. Essential commodity act: The fertilizer industry is centrally regulated by the government through an administered pricing mechanism & sales allocation under Essential Commodities Act (ECA).1. 2010
6. under controlled conditions and services related to agro and allied Sectors.54 Non Agricultural Use Clearance--
5. mushrooms. Development of Seeds. 2010 14
. aqua-culture. Horticulture.vary. Animal Husbandry Pisciculture. Under PN4/2006 --100% FDI is allowed through the
automatic route in -Floriculture. prompting
the current finance-minister to moot for a common GST (Goods and services tax) which would help in bringing all the various state taxes under a common fold including the agricultural income taxes levied individually state to state. Intra state agricultural land taxes -. cultivation of vegetables.
GODREJ ADHAR ITC-CHAUPAL HARIYALI BAZAAR
August 19. 2010
Services like banking. insurance. etc. pharmacy. postal services and petrol pumps
August 19. animal feed.FORMAT OF GODREJ ADHAR FMCG products. 2010
soil & water testing services. buy back of output. 2010
. door delivery of products etc. supply of agri inputs and animal feeds. crop finance. transfer of information (weather. price. and demand supply). higher returns and improved cost benefit ratio. services offered crop advisory services.
August 19.A COMPLETE SOLUTION PROVIDER FOR THE INDIAN FARMERS
provides professional guidance with an objective to improve productivity.
by 2010. Tata Agrico. Bajaj Allianz Life Insurance and HPCL for value added services at the outlets.
The company plans to set up more than 1.24 outlets in eight rural locations across the country and each outlet services 20 villages in its vicinity
Godrej Aadhar has already forged JVs with Apollo
. before you sell to the customer
August 19.The Trusted Rural Business Hub
Help the customer increase his income. educate the customer.
Chairman Mr. 2010 20
. Vikram Shriram. Ajay Shriram.Hariyali Kisaan Bazaar
Mr. Vice Chairman & MD The concept aims to simplify the
Private label seeds Contract farming – vegetables Procurement
. in association with HDFC bank. The company also launched credit services during its second quarter 2007-08. It offers the rural household all farming and consumer products and related services along with financial services under one roof. providing loans for various purposes.
August 19.Hariyali Kisaan DSCL plans to expand to 250-300 outlets by the end of FY Bazaar
2008-09. Each store covers an area of 3-4 acres and is managed by a team of 7-8 people whom the Company trains continuously.
August 19. 2010
.The number of Hariyali outlets now stands at 177. Launched in 200203 ‘Hariyali’ is now present in 8 states across India
August 19. which the company plans to scale up aggressively to around 300 outlets by March 2009.
This concept aims to
Provide the power of expert knowledge to even the smallest farmer 2. 2010
. quality and productivity
August 19. Information helps farmers secures better price.
installations covering around 40.Benefits to farmers include
Better purchase price of agri-inputs Avail information on best farming practices Command prevailing market prices 4 million farmers benefited through 6.000 villages
August 19. 2010 28
By 2012. 2010 29
. and create more than 10 million e-farmers August 19. ITC Vision is to cover 100 thousand villages. which represent 1/6th of rural India.
MAKE THE POTENTIAL CUSTOMERS --PROVIDE DIFFERENT CUSTOMER SERVICES --REAP THE BENEFIT FROM POTENTIAL CUSTOMER
August 19.IDEA BEHIND CHAUPAL SAGAR
.A WIDE RANGE OF PRODUCTS FOR ALL
TRAINING FACILITIES FOR FARMING COMMUNITY
ON SCIENTIFIC FARMING PRACTICES
GODOWNS FOR STORAGE OF FARM PRODUCE INFORMATION CENTER FOR ONLINE WEATHER
CONTINOUS SERVICES FROM 6AM.9PM August 19.
2010 PUBLIC ENTERTAINMENT
.ESTABLISHMENT OF ATMs AT MALLS AVAILIBILITY OF INSURANCE PRODUCTSFOR
TIE WITH PRIVATE HEALTH CARE SERVICE
PROVIDER FOR PRIMARY HEALTH CARE FACILITY
TIE WITH BPCL FOR FUEL PUMPS ESTABLISHMENT OF SOIL TESTING
AGRICULTURE UNIVERSITIES/STATE AGRICULTURE DEPT
INSURANC E COMPANY
.o– Increasing costs of land o– Pace of expansion o– High operating costs o– Low margin of agri-inputs o– Low purchasing power of
. • Gaps in road and Telecommunications connectivity. • Lack of reliable electricity and water supply • Limited Distribution network for example cold storage.• Lack of literacy and awareness • Low per capita income • Wide geographic spread. • Competition from local players
2010 get a better price for their products and Farmers 36
.Farmers get agri-inputs at competitive rates and
have range of products to choose from
Increasing rural bank aid (loans) helps improve
the purchasing capability of farmers
Farmers avail of the services of agronomists to
improve their farming practices. thereby impacting on their final produce
• Innovative & Exciting Initiatives such as Village BPO should be given impetus to tap the talent in the rural India.
August 19. 2010 37
of rural initiatives into business model like ITC • Corporate should supplement government efforts & resources (infrastructure development. storage) • Creating retail stores which should be rural in nature so that the rural masses identify themselves with these stores. education system.
During the first millennium AD. the Bird of Gold is poised to take flight once again. 2010
. merchants referred to India as the Bird of Gold.
August 19. due to the glittering dynamism of its market. Over the next few years.
August 19. 2010