FDI IN RETAIL SECTOR
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FDI IN RETAIL SECTOR

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  • Varied window displat : now a days retailers know that if your product is dosplayed properly acc. to the culture of the state you are operating in , will definaltey help you
  • This is not all there is still more
  • In 2881, India had the highest shop density in the world, with 11 outlets for every 1,888people.. The high density restricts their scope of expansion, and thereby ofupgrading. This also means that, except in the case of severely segmented markets, thissector stands little chance of competing against large retailing corporations operatingwith economies of scale.
  • It will bring out many positive changes i.e. improvement in supply chain management. It is noticed that 35-40% of the agriculture produce perishes every year due to poor infrastructure in India and there are only 6522 cold storages in India mainly used for potatoes.Investment in technologies and infrastructure by the retail corporations will act as a boon for our economy.These org will come in with technical know how and expertise and will train indian manpower and hone their skills as suitable for the industry.Moreover small players who have already been working with Internationalchains like Wal-Mart/Carrefour in India have benefitted a lot by manufacturing their private label products & also showcasing ourproducts in their stores by reaching end consumer directly at competitiveprices which would otherwise launching and building a new brand is a task in itself.It is understood that MNC that invest in retail in india would also source indian goods to their international outlets in a big way, thus provide a boost to indian exports. Indian retail chains would get integrated with global supply chain since Fdi will bring in technology, quality standards and marketing.
  • It will bring out many positive changes i.e. improvement in supply chain management. It is noticed that 35-40% of the agriculture produce perishes every year due to poor infrastructure in India and there are only 6522 cold storages in India mainly used for potatoes.Investment in technologies and infrastructure by the retail corporations will act as a boon for our economy.These org will come in with technical know how and expertise and will train indian manpower and hone their skills as suitable for the industry.Moreover small players who have already been working with Internationalchains like Wal-Mart/Carrefour in India have benefitted a lot by manufacturing their private label products & also showcasing ourproducts in their stores by reaching end consumer directly at competitiveprices which would otherwise launching and building a new brand is a task in itself.It is understood that MNC that invest in retail in india would also source indian goods to their international outlets in a big way, thus provide a boost to indian exports. Indian retail chains would get integrated with global supply chain since Fdi will bring in technology, quality standards and marketing.
  • It will bring out many positive changes i.e. improvement in supply chain management. It is noticed that 35-40% of the agriculture produce perishes every year due to poor infrastructure in India and there are only 6522 cold storages in India mainly used for potatoes.Investment in technologies and infrastructure by the retail corporations will act as a boon for our economy.These org will come in with technical know how and expertise and will train indian manpower and hone their skills as suitable for the industry.Moreover small players who have already been working with Internationalchains like Wal-Mart/Carrefour in India have benefitted a lot by manufacturing their private label products & also showcasing ourproducts in their stores by reaching end consumer directly at competitiveprices which would otherwise launching and building a new brand is a task in itself.It is understood that MNC that invest in retail in india would also source indian goods to their international outlets in a big way, thus provide a boost to indian exports. Indian retail chains would get integrated with global supply chain since Fdi will bring in technology, quality standards and marketing.
  • It will bring out many positive changes i.e. improvement in supply chain management. It is noticed that 35-40% of the agriculture produce perishes every year due to poor infrastructure in India and there are only 6522 cold storages in India mainly used for potatoes.Investment in technologies and infrastructure by the retail corporations will act as a boon for our economy.These org will come in with technical know how and expertise and will train indian manpower and hone their skills as suitable for the industry.Moreover small players who have already been working with Internationalchains like Wal-Mart/Carrefour in India have benefitted a lot by manufacturing their private label products & also showcasing ourproducts in their stores by reaching end consumer directly at competitiveprices which would otherwise launching and building a new brand is a task in itself.It is understood that MNC that invest in retail in india would also source indian goods to their international outlets in a big way, thus provide a boost to indian exports. Indian retail chains would get integrated with global supply chain since Fdi will bring in technology, quality standards and marketing.
  • It will bring out many positive changes i.e. improvement in supply chain management. It is noticed that 35-40% of the agriculture produce perishes every year due to poor infrastructure in India and there are only 6522 cold storages in India mainly used for potatoes.Investment in technologies and infrastructure by the retail corporations will act as a boon for our economy.These org will come in with technical know how and expertise and will train indian manpower and hone their skills as suitable for the industry.Moreover small players who have already been working with Internationalchains like Wal-Mart/Carrefour in India have benefitted a lot by manufacturing their private label products & also showcasing ourproducts in their stores by reaching end consumer directly at competitiveprices which would otherwise launching and building a new brand is a task in itself.It is understood that MNC that invest in retail in india would also source indian goods to their international outlets in a big way, thus provide a boost to indian exports. Indian retail chains would get integrated with global supply chain since Fdi will bring in technology, quality standards and marketing.
  • technological know how, soil quality improvement, pesticide and fertilizer usage,grading, sorting, capabilities and increasing availability of low interest credit forfarmers.
  • After observing the opportunities and challenges, the views of different org. and the benefits that are likely to take place in indian economy..the panel recommends that fdi in multi brand retail should be allowed but a cap of 49% should be imposed to protect the interest of small and medium size retailers and give them a breathing space to adjust themselves to the new environment and also work to bring in their competitive advantage. China opened the fdi 49% in 1992 and has been immensely benefitted due transfer of technical know how and increased exports there are currently appx 40 foreign players contributing to org retail sector. Now, its time for india to open the borders and be benefitted by the retail growth.A major proportion of initial FDI should be invested in developing back endinfrastructure. For e.g. the foreign partners need to tell the total amount thatthey will be investing in next five years. Out of these atleast 80% of the FDIhas to be made in initial three years.We talked of large percentage of agriculture produce getting wasted annually. Well investment in technology and supply chain will surely prevent such wastages consequently curb the supply caused inflation which is currently hovering around 15.46%.
  • After observing the opportunities and challenges, the views of different org. and the benefits that are likely to take place in indian economy..the panel recommends that fdi in multi brand retail should be allowed but a cap of 49% should be imposed to protect the interest of small and medium size retailers and give them a breathing space to adjust themselves to the new environment and also work to bring in their competitive advantage. China opened the fdi 49% in 1992 and has been immensely benefitted due transfer of technical know how and increased exports there are currently appx 40 foreign players contributing to org retail sector. Now, its time for india to open the borders and be benefitted by the retail growth.A major proportion of initial FDI should be invested in developing back endinfrastructure. For e.g. the foreign partners need to tell the total amount thatthey will be investing in next five years. Out of these atleast 80% of the FDIhas to be made in initial three years.We talked of large percentage of agriculture produce getting wasted annually. Well investment in technology and supply chain will surely prevent such wastages consequently curb the supply caused inflation which is currently hovering around 15.46%.
  • After observing the opportunities and challenges, the views of different org. and the benefits that are likely to take place in indian economy..the panel recommends that fdi in multi brand retail should be allowed but a cap of 49% should be imposed to protect the interest of small and medium size retailers and give them a breathing space to adjust themselves to the new environment and also work to bring in their competitive advantage. China opened the fdi 49% in 1992 and has been immensely benefitted due transfer of technical know how and increased exports there are currently appx 40 foreign players contributing to org retail sector. Now, its time for india to open the borders and be benefitted by the retail growth.A major proportion of initial FDI should be invested in developing back endinfrastructure. For e.g. the foreign partners need to tell the total amount thatthey will be investing in next five years. Out of these atleast 80% of the FDIhas to be made in initial three years.We talked of large percentage of agriculture produce getting wasted annually. Well investment in technology and supply chain will surely prevent such wastages consequently curb the supply caused inflation which is currently hovering around 15.46%.
  • After observing the opportunities and challenges, the views of different org. and the benefits that are likely to take place in indian economy..the panel recommends that fdi in multi brand retail should be allowed but a cap of 49% should be imposed to protect the interest of small and medium size retailers and give them a breathing space to adjust themselves to the new environment and also work to bring in their competitive advantage. China opened the fdi 49% in 1992 and has been immensely benefitted due transfer of technical know how and increased exports there are currently appx 40 foreign players contributing to org retail sector. Now, its time for india to open the borders and be benefitted by the retail growth.A major proportion of initial FDI should be invested in developing back endinfrastructure. For e.g. the foreign partners need to tell the total amount thatthey will be investing in next five years. Out of these atleast 80% of the FDIhas to be made in initial three years.We talked of large percentage of agriculture produce getting wasted annually. Well investment in technology and supply chain will surely prevent such wastages consequently curb the supply caused inflation which is currently hovering around 15.46%.

FDI IN RETAIL SECTOR FDI IN RETAIL SECTOR Presentation Transcript

  • • FDI IN RETAIL – POLICY PERSPECTIVES.• RETAIL SECTOR – AN OVERVIEW.• FDI POLICY IN RETAIL - OPPORTUNITIES & CHALLENGES.• EMERGING HUMAN RESOURCE CHALLENGES.• WHAT LIES AHEAD ?
  • THE COMMITMENT OF MONEY ORCAPITAL TO PURCHASE FINANCIALINSTRUMENTS OR ASSETS IN ORDER TOGAIN PROFITABLE RETURNS.
  • FOREIGNINVESTMENT DONE BY CITIZENS AND INVESTMENTGOVERNMENT OF ONE COUNTRY (HOME THROUGHCOUNTRY) INVEST IN INDUSTRIES OFANOTHER COUNTRY (HOST COUNTRY). FOREIGN FOREIGN DIRECT INSTITUTIONAL INVESTMENTS INVESTORS
  • AUTOMATIC ROUTE GOVERNMENTNO PERMISSION APPROVAL /LICENSEREQUIRED REQUIRED.GENERAL RULE : NO PRIOR PERMISSION BY EXCEPTION : PRIOR GOVERNMENTREQUIRED. INFORM RESERVE BANK APPROVAL NEEDED. DECISIONWITHIN 30 DAYS OF INFLOW/ISSUE OF GENERALLY WITHIN 4-6 WEEKS.SHARES.
  • PORTFOLIO INVESTMENTINVESTMENT THAT DOES NOT INVOLVE OBTAINING A DEGREE OFCONTROL IN A COMPANY.FOREIGN DIRECT INVESTMENTPURCHASE OF PHYSICAL ASSETS OR A SIGNIFICANT AMOUNT OF THEOWNERSHIP (STOCK) OF A COMPANY IN ANOTHER COUNTRY TO GAINA MEASURE OF MANAGEMENT CONTROL.
  • • 1991- FDI ALLOWED SELECTIVELY UP TO 51% IN PRIORITY SECTORS.• 1997-FDI ALLOWED UP TO 100% IN SECTORS LIKE MINING, MANUFACTURING.
  • FDI EQUITY LIMIT- FDI REQUIRING PRIOR AUTOMATIC ROUTE APPROVAL INSURANCE – 26%  DEFENSE PRODUCTION – 26% DOMESTIC AIRLINES – 49%  FM BROADCASTING - 20%  NEWS AND CURRENT AFFAIRS- TELECOM SERVICES- FOREIGN 26% EQUITY 74%  BROADCASTING- CABLE, UP- PRIVATE SECTOR BANKS- 74% LINKING – 49%  TRADING- WHOLESALE CASH MINING OF DIAMONDS AND AND CARRY, EXPORT TRADING, PRECIOUS STONES- 74% ETC., -100% EXPLORATION AND MINING OF  TEA PLANTATION – 100% COAL AND LIGNITE FOR CAPTIVE  DEVELOPMENT OF AIRPORTS- 100% CONSUMPTION- 74%  COURIER SERVICES- 100%
  • • 2000-06 FDI ALLOWED UP TO 100% IN SPECIFIED SECTORS.  FDI LIMITS INCREASED.  PROCEDURES FURTHER SIMPLIFIED• THE TOP 3 INDIAN REGIONS ATTRACTING THE HIGHEST FDI.  MUMBAI, DELHI AND KARNATAKA.  ACCOUNT FOR NEARLY 62% OF THE TOTAL FDI.
  •  INCREASE INVESTMENT LEVEL AND THEREBY INCOME & EMPLOYMENT INCREASE TAX REVENUE OF GOVERNMENT FACILITATES TRANSFER OF TECHNOLOGY ENCOURAGE MANAGERIAL REVOLUTION THROUGH PROFESSIONALMANAGEMENT INCREASE EXPORTS AND REDUCE IMPORT REQUIREMENTS INCREASE COMPETITION AND BREAK DOMESTIC MONOPOLIES IMPROVES QUALITY AND REDUCES COST OF INPUTS
  •  Flow to high profit areas rather than main concern areas Through their power and flexibility, MNC can undermineeconomic autonomy and control Sometimes interferes in the national politics Sometimes engage in unfair and unethical trade practices Sometimes result in minimizing / eliminating competitionand create monopolies or oligopolistic structures
  • SUPER GOVERNMENT MARKET KIRANA STORES STORES HYPER CONVENIENCE MARKET STORE MALLS WEEKLY BRAND MARKET OUTLETSBARTER VILLAGESYSTEM MELAS
  • SINGLE BRANDRETAILING • 51%CASH AND CARRY MODEL • 100%
  •  INCENTIVES ATTRACT FDI. HUGE MARKET SIZE AND POTENTIAL ARE SUFFICIENTINDUCERS. TAX BREAKS, IMPORT DUTY EXEMPTIONS, LAND ANDPOWER SUBSIDIES, AND OTHER ENTICEMENTS.
  • FDI INFLOWS FROMFDI INFLOWS FROM AUGUST 1991 TO2000-2010 CROSSED APRIL 2010 WERE $300 BILLION $134.6 BILLION.
  • GLOBAL RETAIL DEVELOPMENTINDEX POSITION : 3RDSIZE : $ 400 BILLIONGROWTH RATE : 13%GDP CONTRIBUTION : 12%MAJOR SECTOR : FOOD AND GROCERYEMPLOYMENT : 2ND LARGESTINDUSTRY (35.06 MILLION)TYPES:ORGANIZED ( 5%)UNORGANIZED ( 95%)
  •  INDIA HAS LARGEST NUMBER OF RETAIL TRADERS. INDIA HAS 1,25,00,000 RETAILS OUTLETS. RETAIL TRADE CONTRIBUTES 10 -11% OF GDP. TOTAL TURNOVER OF RETAIL SECTOR IS 8,75,000 CRORES. AFTER AGRICULTURE, RETAIL PROVIDES EMPLOYMENT TOMAX NUMBER OF PERSONS ( 4 CRORES)
  • • CORPORATES ARE INCREASINGLY COMING INTOTHIS SECTOR.• DEMAND OF BRANDED GOODS ON A LARGE SCALE.• DEMAND OF NEW AND VARIED PRODUCTS.• HIGH QUALITY PRODUCT IS PREFERRED .• VARIED WINDOW DISPLAY.• E-TAILERS INCREASE THE PRESENCE.
  • FORMAT DESCRIPTION RETAILERSHYPERMARKETS OFFERING BASKET OF PRODUCT SPENCERS, BIG BAZAARCASH AND CARRY BULK-BUYING REQUIREMENT BHARTI-WAL-MARTDEPARTMENTAL STORES LARGE LAYOUT, WIDE MERCHANDISE MIX LIFESTYLE , GLOBUSSUPERMARKETS HOUSEHOLD PRODUCT AS WELL AS FOOD APNA BAZAAR , FOOD AS INTEGRAL PART OF THE SERVICE BAZAARSHOP-IN-SHOP SHOPS LOCATED IN SHOPPING MALLS NAVRAS ( BIG BAZAAR)SPECIALTY STORES FOCUS ON INDIVIDUAL PRODUCT TYPE BRAND FACTORYCATEGORY KILLERS PARTICULAR SEGMENT THE LOFTDISCOUNT STORES BRANDED PRODUCT AT DISCOUNTED SUBHIKSHA, LEVI’S PRICES OUTLETCONVENIENCE STORES SMALL RETAIL STORES IN AND OUT
  • RETAIL SEGMENT PERCENTAGE HOLDING MAJOR RETAILERS IN SECTORFOOD AND GROCERY 63% RELIANCE FRESH, CAFÉ BRIO, FOOD BAZAARCLOTHING, TEXTILE 9% WESTSIDE, SHOPPERSAND FASHION STOP, GLOBUSJEWELLERY 5% TANISHQCATERING SERVICES 5% IRCTCCONSUMER DURABLE 4% VIVEKS, VIJAY SALES, CROMAPHARMACEUTICALS 4% PIRAMAL GROUPENTERTAINMENT 3% BOWLING CO.,FURNISHING, UTENSILS 3% HOMETOWN, TANGENT CONCEPTMOBILE HANDSETS 2% THE MOBILE STORE,
  • • ONE OF THE WORLDS LARGEST INDUSTRIESEXCEEDING US$ 9 TRILLION.• DOMINATED BY DEVELOPED COUNTRIES.• 47 GLOBAL FORTUNE COMPANIES & 25 OF ASIASTOP 200 COMPANIES ARE RETAILERS.• US, EU & JAPAN CONSTITUTE 80% OF WORLDRETAIL SALES.
  • • RETAIL TRADE IN EUROPE EMPLOYS 15% OFTHE EUROPEAN WORKFORCE (3 MILLION FIRMS AND 13MILLION WORKERS).• THE WORLD’S POPULATION IS POISED TO EXPAND 50%BY 2050. THE WORLD CURRENTLY COMPRISES OF 78%POOR, 11% MIDDLE INCOME AND 11% RICH.
  • CONTRIBUTION RESPECTIVE TO GDP 12% India 6% Brazil 14% Japan 8% China20% USA
  • US FRANCE UK GERMANY USSALES: $374.5 SALES: $130 SALES: $102.6 SALES: $101 SALES: $77.3 BN BN BILLION BILLION BN EARNINGS: EARNINGS: EARNINGS: EARNINGS: EARNINGS: $12.9 $5.2 BILLION $5.5 BILLION $1.5 BILLION $4.2 BILLION BILLION STORES: STORES: STORES: STORES: 87,422 3,729 2,221 WORLDWIDE WORLDWIDE STORES: 6,800 2,258WORLDWIDE
  • US Taiwan Malaysia Thailand Organised Indonesia Unorganised China India 0 20 40 60 80 100 US TAIWAN MALAYSIA THAILAND INDONESIA CHINA INDIAUNORGANISED 15% 19% 45% 60% 70% 80% 95%ORGANISED 85% 81% 55% 40% 30% 20% 5%
  • INDIA CHINAFOCUS ON SERVICES FOCUS ON INDUSTRYHIGH LABOR COST LOW LABOR COSTHOME GROWN CAPITAL FDIOLD TECHNOLOGY ADAPTABILITY TO LATEST TECHNOLOGYDEMOCRATIC GOVERNMENT COMMUNIST GOVERNMENT
  • INDIA• A LARGE EMERGING MARKET .  INCREASE IN DISPOSABLE INCOME OF A FAMILY.  70 MN INDIANS – SALARY OF $18,000.  RISE TO 140 MN BY 2011.  CONSUMER SPENDING POWER INCREASED BY 75% IN LAST 3 YEARS.  THE PER CAPITA INCOME IN 2009–2010 HAS MORE THAN DOUBLED TO US$ 849 FROM US$ 348 IN 2000–01.
  • • INCREASE IN CONSUMER CLASS.  CONSUMER CLASS WILL GROW UPPER CLASS FROM 50 MILLION AT PRESENT TO MIDDLE CLASS 583 MILLION BY 2025.  WITH MORE THAN 23 MILLION LOWER CLASS PEOPLE TAKING THEIR PLACE AMONG THE WORLD’S WEALTHIEST CITIZENS.
  • • WIDE DEMOGRAPHICS -- AVERAGE AGE OF 25 YRS.• BRAND CONSCIOUSNESS.  60 % OF POPULATION BELOW AGE OF 30.  AWARENESS THROUGH WORLD WIDE WEB.• CHANGING CONSUMER MINDSET.  FOCUS SHIFTING FROM LOW PRICE TO CONVENIENCE, VALUE AND A SUPERIOR SHOPPING EXPERIENCE.• SMALL BASKET SIZE SHAPING OF CONSUMPTION.
  • • Employment generation.  Second-largest employer after ADDITIONAL 1.6 MN JOBS agriculture.  Retail trade employing 35.06 million.  Wholesale trade generating an additional employment of 5.48 million.
  • • TECHNOLOGY  BETTER USE OF RESOURCESAND GOODS.  WASTAGE AND STORAGE PROBLEMS WILL BE RESOLVED.  EFFICIENT LOGISTICS, PRODUCTION, AND DISTRIBUTION CHANNELS.  DIGITAL RECORDS.
  • • RURAL MARKET.  ROBUST CONSUMPTION.  70% INDIAN HOUSEHOLDS.  2/5 OF THE COUNTRY’S TOTAL CONSUMPTION PIE.  ACCOUNTS TO 45% OF GDP.
  • • FDI IN RETAIL SECTOR WILL RESOLVEPROBLEMS REGARDING FOREIGN EXCHANGEIN INDIA. • THE LIFE-LONG BASIC NEEDS WILL KEEP ON DRIVING THE RETAIL INDUSTRY.
  • • MAJOR CHALLENGE FACED BY ORGANIZED RETAIL SECTOR: INRETAIL, OVER 70 PER CENT OF THE LABOR FORCE IN BOTHSECTORS COMBINED (ORGANIZED AND UNORGANIZED) IS EITHERILLITERATE OR EDUCATED BELOW THE PRIMARY LEVEL.• LABOR LAWS
  • • A STRONG COMPETITION FROM MOM AND POP SHOPS:-  EASILY ACCESSIBLE & APPROACHABLE.  PROVIDE SERVICES LIKE FREE HOME DELIVERY AND GOODS ON CREDIT.  THEY CHANGE CONSUMER FOCUS.
  • • PANTALOONS • TESCO GLOBAL • RELIANCEINDIAN • WALMART • BHARTI RETAIL • METRO • RPG • CARREFOUR • LIFESTYLE • B&Q • K RAHEJA • TARGET • SUBHIKSHA • PIRAMYD • TRENT • VISHAL GROUP • BIG BAZAAR • WESTSIDE
  • CLUSTERING OF OUTLETS. HIGHESTSTAMP DUTY.
  • FORMAT AVERAGE SIZECONVENIENCE STORES 800 SQ. FEETDISCOUNT STORES 1000 SQ. FEETCATEGORY KILLERS 8000 SQ. FEETSPECIALTY STORES SINGLE-CATEGORYSHOP-IN-SHOP WITHIN LARGE MALLS
  • FORMAT AVERAGE SIZESUPERMARKET LARGE IN SIZE TYPICAL IN LAYOUTDEPARTMENT STORES 10,000 – 60,000 SQ. FEETCASH AND CARRY 75,000 SQ. FEETHYPERMARKETS 50,000 – 1,00,000 SQ. FEET
  • • MARKET POWER IS IN HANDS OF UNORGANIZED RETAIL. UNORGANIZED •95% ORGANIZED •5%• POTENTIAL OF INDIAN MARKET IS US$ 200 BILLIONWHEREAS INDIA IS JUST EARNING ITS 3%.
  • SHRINKAGE LACK OF LOGISTIC INFRA. CORRUPTION ADDITIONAL INTERMEDIARIESTECHNOLOGY HURDLES
  • IN INDIA EVERY YEAR THERE IS PILFERAGE OF US$ 65 BILLIONWHEREAS IN USA IT IS JUST 1-2%.DUE TO LACK OF PROPER STORAGE INFRASTRUCTURE POST-HARVEST LOSSES OF FARM PRODUCE IS RS. 1 TRILLION CR.ANNUALLY.
  • IN TERMS OF CORRUPTION INDIA STANDS AT 85THPOSITION. BECAUSE OF PAPER WORK, CORRUPTION ISPRESENT ALONG THE ENTIRE SUPPLY CHAIN.IN INDIA, THERE ARE ADDITIONAL 2-3INTERMEDIARIES AS COMPARED TO USA.i. THEY DOMINATE THE VALUE CHAIN.ii. THEY FLOUT MANDI NORMS & THEIR PRICING LACKS TRANSPARENCY.
  • INDIA IS STILL IN DEVELOPING STAGE IN INSTALLINGAND MANAGING AN EFFECTIVE IT SYSTEM ESPECIALLYIN RURAL AREAS WHICH HAMPERS THE OVERALLGROWTH OF ORGANIZED RETAIL SECTOR.
  • BANKS ARE RELUCTANT TO FINANCE RETAILERSBECAUSE OF FALLING DEMAND OF ORGANIZEDRETAILERS IN INDIA AS IT HAS WITNESSED FAILURE OFMANY STORES LIKE SPENCERS, SUBHIKSHA, ETC.
  • • TAXATION LAWS IN INDIA FAVORS ONLY SMALL RETAIL BUSINESSES.• IMPLEMENTATION OF NON-UNIFORM VAT ACROSS STATES.• OCTROI AND ENTRY TAX IN SOME STATES.
  • • NO AUTOMATIC APPROVAL FOR FDI : ONLY 51% FDI ISALLOWED TO ONE BRAND SHOPS IN INDIAN RETAIL SECTOR.• COMPLICATIONS IN ISSUE OF LICENSES : LIKE AHYPERMARKET IN MUMBAI MUST APPLY FOR 29 UNIQUELICENSES & THEN WHEN IT HAS TO COME UP WITH SECONDSTORE IT HAS TO APPLY FOR SAME 29 LICENSES ALL OVERAGAIN.
  • DISTURBEDECONOMIC STATUS. CHALLENGE TO GET MORE CUSTOMERS AT LOW COST. LIQUIDITY PRESSURE
  • • INDIAN RETAIL SECTOR :  EMPLOYS 8% (35 MILLION)OF THE WORKING POPULATION.  COULD YIELD 12 TO 15 MILLION RETAIL JOBS IN THE COMING FIVE YEARS.• OUT OF WHICH ORGANIZED SEGMENT IS ABOUT 0.3 MILLION.• RETAIL SECTOR GREW AT 9.4% ON REAL TERMS & 15.4% ONNOMINAL TERMS.
  • MBA GRADUATES WITH 5-10YEARS OF EXPERIENCEGRADUATES WITH 2-5YEARSOF EXPERIENCEGRADUATES/ 12TH PASS/10TH PASSGRADUATES/ 12TH PASS/10TH PASS
  • • THE RETAILERS ASSOCIATION OF INDIA (RAI) - DIPLOMA AND DEGREE PROGRAMS IN RETAILING - BHARTI RETAIL AND VISHAL RETAIL - 5,000 TRAINED PERSONS
  • • EMPLOYMENT.• UNFAIR COMPETITION.• UNDER-DEVELOPED ORGANIZED RETAIL SECTOR.
  • FDI CAN BE A POWERFUL CATALYST TO SPURCOMPETITION IN THE RETAIL INDUSTRY.IT CAN BRING ABOUT: SUPPLY CHAIN IMPROVEMENT INVESTMENT IN TECHNOLOGY MANPOWER AND SKILL DEVELOPMENT EFFICIENT SMALL AND MEDIUM SCALE INDUSTRIES INCREASE IN EXPORTS
  •  100% FDI IN SINGLE BRANDRETAIL. 51% FDI IN MULTI BRANDRETAIL.
  •  THE RS18,673 BILLION (US$401BILLION) INDIAN RETAIL MARKETIS ONLY 3 % OF GLOBAL RETAIL. OF THIS ONLY 6% IS ORGANISED RETAIL AS OF 2010. THE REST 94% REMAINS UNORGANIZED. BUT SURPRISINGLY, INDIAN RETAIL SECTOR ACCOUNTS FOR 22% OFTHE COUNTRYS GROSS DOMESTIC PRODUCT(GDP) AND CONTRIBUTESTO 8 % OF THE TOTAL EMPLOYMENT. HENCE, IF WE OPEN UP OUR RETAIL SECTOR, THEN OUR DESIRETAILERS AND THE MILLIONS OF KIRANA STORES WILL GO OUT OFBUSINESS. INDIANS WILL BE DRAINED OF ALL THEIR HARD EARNED MONEYTHROUGH CONSUMERISM. MONEY DRAINED OUT OF OUR COUNTRY.
  •  THE CURRENT FDI RELAXATION COMES WITH ACONDITION : 30% OF SOURCING OF ALL PRODUCTSHAS TO BE DONE FROM INDIAN SUPPLIERS/SMES. THIS RECOMMENDATION CAN CREATE MUCHNEEDED EMPLOYMENT IN INDIA.
  •  FOOD WASTED IN FCI GODOWNS COULD HAVE FED 2500 LAKHFAMILIES FOR 10 YEARS!!! A FRESH ESTIMATE FROM THE MINISTRY OF FOOD PROCESSINGSAYS A WHOPPING RS 58,000 CRORE WORTH OF AGRICULTUREFOOD ITEMS GET WASTED IN THE COUNTRY EVERY YEAR. THAT’S ALMOST 50% OF THE TOTAL ANNUAL AGRICULTURALPRODUCE. HENCE, OUR COUNTRY’S SUPPLY CHAIN INFRASTRUCTURE ISGROSSLY UNDER DEVELOPED. FDI IN RETAIL CAN RESULT INTO DEVELOPING “FARM-TO-FORK”INFRASTRUCTURE CONSISTING OF INTEGRATED STORAGE, COLDCHAIN AND TRANSPORT LINKS. A MUCH NEEDED REPAIR OF OURGROSSLY LEAKING DISTRIBUTION SYSTEM
  • SHOPPERS PANTALOON TIMEX INDIA LIFESTYLE STOP HAS WILL OPEN PLANS TO RETAIL INDIA PLANS TO ANOTHER 52 HAVE MORE (PRIL) PLANS INVEST RS 250 STORES BY THAN 50 TO INVEST US$ CRORE TO MARCH 2011 STORES 77.88 MILLION OPEN 15 NEW TAKING ITSACROSS INDIA TO ADD UP TO SUPERMARKETS TOTAL STORE BY 2012–13. EXISTING 2.4 IN THE COMING COUNT TO 120 MILLION SQ FT THREE YEARS. RETAIL SPACE. .
  • • INVESTMENT INTO WAREHOUSE AND COLD STORAGECHAIN WILL RESULT IN SIGNIFICANT EFFICIENCY ONSUPPLY CHAIN.• FARMERS BENEFITED THROUGH DIRECT MARKETINGAND CONTRACT FARMING PROGRAMME.• IMPROVES FARM PRODUCTION THROUGH MODERNTECHNIQUES.• INCREASING AVAILABILITY OF LOW INTEREST CREDITFOR FARMERS.
  • Expected Growth • IN THE LAST FOUR YEAR, THE CAGR 1.3 CONSUMER SPENDING IN INDIA1.4 10% CLIMBED UP TO 75%.1.2 • BY THE YEAR 2013, THE 1 0.83 ORGANIZED SECTOR IS ALSO0.8 0.59 EXPECTED TO GROW AT A0.6 CAGR* OF 40%. 0.350.4 • THE TOTAL NUMBER OF0.2 SHOPPING MALLS IS EXPECTED 0 TO EXPAND AT A CAGR* OF 2008 2011 2013 2018 OVER 18.9 PER CENT BY 2015. * CAGR – COMPOUND ANNUAL GROWTH RATE
  •  THE INITIAL CAP ON INVESTMENT COULD BE PEGGED AT 49%. FDI SHOULD BE LEVERAGED TO CREATE BACK-END INFRASTRUCTURE. FDI WILL BE A POWERFUL DRIVER TO CURB INFLATION. RESTRICT THE NUMBER OF STORES THAT CAN BE OPERATED IN ACITY. ALLOW ACCESS TO THE SMALL RETAILERS TO THE STORES THROUGHSPECIAL WINDOWS.
  •  OPERATIONAL EFFICIENCIES. BEST DEAL TO THE FINAL CUSTOMER. TRUE GLOBALIZATION.
  • OR
  • THANK YOU