A FRESH APPROACH

TOWARDS RETAILING IN INDIA

INDIAN RETAIL SCENARIO
India ranks 1st for top international
destination for retail investment.
U.S $ 350 billion retail market.
 96% market share is held by 12 million
family run shops.
4th largest economy in purchasing parity
terms after US , china & Japan.
Retail sector will grow 35% in 2008.

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ORGANISE SECTOR
FACTS
Virgin territory for organized retail
investment.
 2-6% of total retail.
Expected to increase to 15-18% by 2011.
Food retailing is expected to grow to US$ 1.6
billion.
Apparel to increase by 9.5% by 2010.

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RETAIL SECTOR
Street cards .
Corner shops.
Open air market “ MANDIS”
Kiryana Stores

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ORGANISE SECTOR
Hyper market
Super market
Specialty chain stores.
Factory outlets
Malls
Multiplexes

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CONTD……
HYPER MARKET
BIG BAZAR(PANTALOON RETAIL INDIA LTD)
GIANT(RPG GROUP)

DEPARTMANTAL STORES
WEST SIDE(TATA)
SHOPPERS STOP(K.RAHEJA GROUP)

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ABOUT RIL
India largest company
Market value US$ 35 billion
Turn over of US$ 27 billion in 2007
Started by Dhirubhai Ambani with US$ 1000
Grown rapidly & went public to raise funds for
polyester plant
World’s Largest producer of polyester
RIL has grown exponentially to diversify

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RIL RETAIL STRATEGY
Investing US$ 5 billion in pan-india retail
including both small & super stores.

Generating 1 million jobs

Reaching annual sales of US$ 25 billion by

2011

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RIL FRESH
2200-4000 sq feet
Trial partnership with struggling govt owned
cooperative stores “SAHAKARI BHANDAR” in
Mumbai.
Consisted of revamping of stores & providing
supply chain management services.

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OBJECTIVES ACHIEVED
First hand knowledge of retail business

Small retailers are a powerful lobby

Made RIL to take on international retail giants.

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HYPER MARKET
Ambani plans to built hyper markets, titled
Reliance Mart spread over 150000 sq feet's

Selling everything from groceries to clothes &

consumer electronics

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RELIANCE FRESH
Targeting 784 small Indian towns with
population greater than 50000
6000 outlets in 784 cities & towns by 2010-11
Opening & operating 100 millions sq feet
By doing so it will be ahead of “TESCO” which
has 58 million sq feet

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SUPPLY CHAIN
“ from farm to fork”
Agro- Retail strategy
Two modern India's most backward sector
1600 procurement & distribution hubs
Named as “ Reliance Mandis”
Supplied by rural farming centers with fresh
produce & dairy products

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WHY SUPPLY CHAIN
MANAGEMENT?
Lack of infrastructure, which leads to decay
of half of the countries fresh produce before
they reach stores.

Cold storage , food processing facilities & also

provides farmers with fertilizers , fuel & credit
to suppliers(Farmers).

Eliminate the middlemen , by this Reliance

hopes to pass savings to farmers .
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CONTD….
In Kerala farmers are able to sell their
produce at the mandis without paying any
commission and receive immediate payment
of produce.

85 logistics centers to move food to retail

outlets & to airports

Stock is replenished 2 times a day , fresh

produce comes from their own distribution
center .
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REAL ESTATE BANK
Company wants to own most of its underline
real estate .

Motive behind this strategy is to protect its

business margins by avoiding payment of high
rents

Reliance plans of consolidating about 15

million sq feet of property would mean
shunting of competitors such as PANTALOONS
& SHOPPERS
December 5, 2008
STOP.
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CONCLUSION

Will the dreams

turn into
Reality!!!
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 THANK YOU

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