Report iv


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Report iv

  1. 1. BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGYSite visited: Reliance Mart KurlaWest , Mumbai, Academic session: PGDM 12-14 Guided by: Prof. Manoj Pant Submitted to : Centre for Retail Submitted by:Aradhana. C Roll no: 12RM908
  2. 2. DECLARATIONI hereby declare that the project work entitled “INDUSTRIAL REPORT”submitted to the BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY, isa record of an original work done by me under the guidance of Prof. Manoj Pant,Centre for retail and this project work has been submitted for the basis of awardingmarks as a part of the curriculum.ARADHANA. C ( )
  3. 3. ACKNOWLEDGMENTI wish to acknowledge the commendable initiatives taken by Prof. Manoj Pant forarranging this INDUSTRIAL TRIP to Mumbai & Pune to get practical exposureof the the various concepts of retailing at Reliance Mart Kurla West , Mumbaiand also I would like to thank Mr.SaiKrushnaBharathi, Manager Academics,Centre for Retail Management and Ms Veenu Sharma, for accompanying us tothe industrial trip.
  4. 4. CONTENTS:1. Company profile2. Industry overview3. Various departments/categories4. Front end processes5. Back end process6. Licenses required by the company.7. Learning and take away from the trip
  5. 5. COMPANY PROFILEReliance Retail Limited (RRL), a subsidiary of Reliance Industries Limited underMukeshAmbani, is Reliance Group’s foray into organized retail. RRL is based on the growthstrategy of backward integration, and it generates inclusive growth and prosperity for farmers,vendor partners, small shopkeepers and consumers.RLL is the second largest retailer in India. Its retail outlets offer foods, groceries, apparel andfootwear, lifestyle and home improvement products, electronic goods, general merchandise andfarm implements and inputs. The company’s outlets also provide vegetables, fruits, andflowers.Reliance mart is a hypermarket, which is a new format under RRL. Reliance Mart Kurla West, Mumbai is spread covering 1.1 lac Square feet of land with Covered area of 70,000 Squarefeet. Rent it pays is Rs. 72, 00,000 per month. The total number of employees working in themart is 140 in number.Shoppers have the option to choose from a wide array of products in every category rangingfrom food & fresh produce to grocery, consumer electronics to stationery & toys, frompersonal care products like fragrances & cosmetics to auto accessories, from apparel tofurniture & furnishings, from home-ware & kitchenware to luggage and travel accessories etc.The speciality of the store is the fresh fruits and vegetables section which brings in the bestproduce from the farms to the consumers basket. A live bakery counter section providesshoppers with the unique option of buying freshly baked breads and cakes, a welcome changefrom the traditional pre-baked and packed products. A distinct shop-in-shop for non-vegetarianproducts and the extensive grocery range adds to the experience of shopping for daily needs.Reliance Mart also boasts of a host of Reliances private label brands in select categorieswhich offer superior quality products at affordable prices.In addition to shopping for their daily needs, consumers can also shop from a wide range offashion products as well as home & kitchenware. Also available is an auto accessory specialtycorner, Reliance Autozone, which offers product and service solutions for the automobileneeds of the consumers. Shoppers can give their vehicles a fresh look, add a new audio systemor get the tyres checked & replaced at this section while they shop for their other householdneeds.Adding to shoppers delight is a quick service food court that offers ready to eat, ready to heatand ready to cook meals to the customers. Members of the family can enjoy a range ofdelicacies from Continental & Indian cuisines while the lady of the house shops. Customersalso have the option to take-away semi-cooked or fully-cooked foods for a delightful meal athome.The store layout and ambience has been designed specifically to provide customers comfortand ease of shopping. The hypermart is equipped with highly skilled and trained customer salesrepresentatives, wide aisles that display products as per category and several checkout countersaimed at reducing the customer shopping and waiting time.
  6. 6. INDUSTRY OVERVIEW:Retail industry, being the fifth largest in the world, is one of the sunrise sectors with hugegrowth potential and accounts for 14-15% of the country’s GDP. Comprising of organized andunorganized sectors, Indian retail industry is one of the fastest growing industries in India,especially over the last few years.According to the Global Retail Development Index 2012, India ranks fifth among the top 30emerging markets for retail. The recent announcement by the Indian government with ForeignDirect Investment (FDI) in retail, especially allowing 100% FDI in single brands and multi-brand FDI has created positive sentiments in the retail sector.Retail industry can be classified into two broad categories – organized retail and unorganizedretail.Organized retail - Those traders/retailers who are licensed for trading activities and registeredto pay taxes to the governmentUnorganized retail – It consists of unauthorized small shops - conventional Kirana shops,general stores, corner shops among various other small retail outlets - but remain to be theradiating force of Indian retail industry.
  7. 7. DEPARTMENTS/CATEGORIES:NON VEGETARIAN SECTIONItems available were chicken, mutton, turkey, fish, prawn & crab. Chicken was available bothin looseand packed.No live sea food is available.SWEET SECTION (JUST FRESH)This section contained sweets, namkeen, cakes and all confectionary items.COLD STATIONThe cold station has all milk and milk products of all common brands like Amul, MotherDairy,Britannia etc. Apart from these there is a local brand available called AnandDoodh.WINE SECTIONThe wine section which we visited in Reliance Mart had all types of hot drinks ranging frombeers towines and the prices ranged from Rs. 500 to Rs. 2, 00,000. Monthly sales are Rs 8,00,000 in whichRs. 1, 00,000 comes from week end sales.APPAREL SECTIONThis section consists of apparels for men, women and children from all national brands.AUTOZONE(AUTOMOBILE ACCESSORIES) SECTIONThis section includes all types of automobile accessories like wind-shields, tyres, tyre rims etc.STAPLES SECTIONThis section contains all types of staples such as rice, wheat flour cereals, spices etcFRUITS AND VEGETABLES SECTIONAll types of Indian and exotic fruits and vegetables were arranged in the gondolasLIFESTYLE AND HOME IMPROVEMENT PRODUCTS SECTIONThese included all types of home accessories such as wooden shelves, couches, chairs,cushons,pillows etc.ELECTRONICS SECTIONThis section contained all types of electronic items from televisions, laptops, mobile phones toairconditions and washing-machines.BOOKS SECTIONThis section had all genres of books from inspirational, educational fictional and non-fictionalfromall famous authors both Indian and foreign.STATIONERIES SECTIONThis sectioned contained all stationery items from a small eraser to huge stuffed toys.
  8. 8. FRONT-END PROCESSESNON VEGETARIAN SECTION:The non-vegetarian section contains Items such as chicken, mutton, turkey, fish, prawn andcrab..All the items were cleaned and displayed on ice which showed the freshness of theproducts. Chicken is available in both, loose and packed form Packed items are products of thebrand Godrej, which has tie-up with Tisen and Yummier which is real goods brand.But there was one drawback. No live sea food was available.All arrived fresh and they weredisplayed on ice.Different form of machines available to store these items: Chillers which contained cold cut items maintained temperature at 4 degree Celsius. Frozen items were stored in the temperature ranging between -18 to -20 degree Celsius.For the items to be served hot, warmer was maintained at 40 degree Celsius, and Bain Mariein which fresh ready to items are maintained are 70 degree Celsius.Built-in kitchen is insidefresh food with grill machines.They also provide the chicken items in pizza, burger andsandwich.No beef and pork was served at Reliance Mart. Previously it was served, but now it wasstopped now as they faced some problem due to the cultural Indian sentiments. Shelf life of allthe non-vegetarian products is 3 days. Every day around 4% is the dumping amount of non-vegetarian section.One more important information is that if the meat is maintained at 3 or 4 degree Celsiusthroughout the supply chain i.e.) from the time it is butchered to the time it reaches the store, itis consumable for next 5 months. That’s the level of efficiency of the cold chain.DSD- Direct store delivery is also done for this section. While transporting the materials in thevan temperature will be -16 degree Celsius. Reliance hasits own vehicle for the deliveries to bedone.Sodexo coupons, Accour coupons are accepted only for the ready to eat items.SWEET SECTION (JUST FRESH):It is the Indian type of kitchen which is availablein the bakery. Again the shelf life of all theproducts is 3 days and the dump produced in a day would be around 1-2%. Namkeen andSweets are brought from outside vendors.Open cooking done to show the customers what they are preparing and to acquire the trust ofthe customers.Customers can also order cakes are Reliance like how it is done in bakeries. They can giveorder for the cake and go for shopping. The cake will get ready in 30 minutes. If it is a
  9. 9. customised cake or Barbie cake then it would take around 2 hours for the urgent orders, andusually a day prior order is required.All cakes which wereprepared, were eggless cakes due to the large number of vegetariansresiding in the region. In the breads section 12 varieties of breads such as masala bread, ginger-garlic bread, whole wheat bread etc. with the shelf life of 3 days.COLD STATION:The cold station had lots of items like milk and milk products, juices, cold drinks etc. Allproducts maintained were fresh and displays attractively with all the proper planogram andclean atmosphere with perfect lighting and temperature. All famous brands such as Amul,Britannia and Mother Dairy were available with ample number of SKUs. Apart from thesebrands a local brand called AnandDoodh was also available at the store. The various variants ofthe brand were:1. Full cream milk, processed and packed at MRP Rs. 202. Fresh-lite milk, MRP, Rs. 143. Cow milk (loose), MRP, Rs. 15.50WINE SECTION:This section contained all types of alcoholic beverages of all available brands and SKUs withprices ranging from Rs. 500 to Rs. 2, 00,000. The Monthly sales is Rs 8, 00,000 out ofwhichRs 1, 00,000 comes from week end sales alone.ELECTRONICS SECTION:This section contained all types of electronic items from televisions, laptops, mobile phones toair conditions and washing-machines. All these items come under CDIT (consumer durableand information technology, consumer electronic durable information technology andtelecommunication) market.In these sections Security pods, Accessorise and Enhancements were used in order to reducepilferage and loss.Many companies put dummy model for the display again to avoid pilferages.AUTOZONE :This section includes all types of automobile accessories like wind-shields, tyres, tyre rims etc.Free service is also available for the customers who buy tyres from reliance. By the timecustomer finishes his shopping the service will be completed.
  10. 10. MRF is going to tie up with reliance for promotional activities.STAPLES:This section contains all types of staples such as rice, wheat flour cereals, spices etc. Allproducts were arranged according to the planogram with shelf-edge labels and clean shelves.FRUITS AND VEGETABLES:All types of Indian and exotic fruits and vegetables were arranged in the gondolas with brightwhite lighting and controlled temperature to maintain the freshness of the products with goodvisibility of the prices.LIFESTYLE AND HOME IMPROVEMENT PRODUCTS:These included all types of home accessories such as wooden shelves, couches, chairs,cushons, pillows etc. there was also a section which showcased cycles inside the store for allages, for both girls and boys of all available brands.BOOKS:This section had all genres of books from inspirational, educational fictional and non-fictionalfrom all famous authors both Indian and foreign.STATIONERIES:This sectioned contained all stationery items from a small eraser to huge stuffed toys.CARTS AND BAGS:Wheeled carts and bags were available in the store at many places at a very good visibility andit was easy for the customers to reach them.SECURITY:Staff entry:Safe locks for the each and every staff were provided. Before entering the floor every staff getchecked. The time machine is placed at the entry point for the attendance and time of entry andexit happens, which is done by showing staff identity card in front of the machine.CCTV: security cameras were placed at places where the staff couldnot be all the time to avoidpilferages.RFID: tags were used on the merchandise and at the entry points sensors were placed to avoidrobbery.
  11. 11. BACK-END PROCESS:In the back-end, FIFO(first in first out) is maintained to avoid the expiry and wastage ofmerchandise and also to prevent stock-out situations. Storage is done in vertical manner. At theback-end lifting of goods is done through Hydraulic lift, which has capacity of 2 tons. Thereare 7 employees in the maintenance department who take care of all back-end jobs ofunloading, loading, mving and storing the merchandise. There is also a room available to storethe perishables where the temperature maintained is 3-4 degree Celsius.Here expired goodswere also kept separately.Receiving point:Juinagar, Bhiwandi, Thane are the three distribution centre for the Pheonix Reliance Martfor the perishables i.e. F & V – diary products and also for the staples ,apparels etc. Dry anddirect store delivery from respective DCs is done.The average number of cartons received per day is 700 cartons in one truck.Stock transfer note is maintained which contains all the information regarding the transfer ofproducts form warehouse to store.Trip sheet:The Trip sheet consists of the trip sheet number, dispatch quantity, from which DC the goodsare being received, Seal number, Store code and Security stamp. Empty cartels are sent backfrom store to the DC. The cartels which are received at the store were in units of , units ofkgsor eaches.Kgs is used for products which cannot be counted and andeaches for products whichcan be counted.Any shortages noticed from the orders made are written in the trip sheet.Delivery Note contains these details:Transporter name.DC code: Y708- fcplBhiwandi DCStore code: 6220-phinox city mallY727-Jui nagar DCFor the indend, the purchase order has to be raised before 2 PM of the day.
  12. 12. LICENSES REQUIRED BY THE COMPANY:Companies interested in opening a retail store in the country should note apart from companyincorporation in India, they would also have to apply for a number of licenses and completeother important formalities before they can officially commence operations. Following are thevarious licenses applied by Reliance Mart.The Shops and Establishments Trade License and registration for both Sales Tax and ServiceTax are required for most retailers. After obtaining the Shop and Establishments TradeLicense, depending upon the type of retail store and products you are selling, there will benumber of other licenses required. The most number of licenses are required if your retail storeis in the food industry or handles any kind of food or beverages. As a matter of fact, over 20licenses are required for food related retailers and it is absolutely necessary to engage theservices of a consulting firm to find out the exact type of licenses that are required and how toobtain them. Acquiring the appropriate licenses should be treated as a priority and is asimportant as market research or your actual product itself.Along with applying for licenses, you would have to start looking for appropriate employeesfor running your retail store. If your store is open during odd hours or requires staff members towork in shifts, then maybe other kind of registration would be required and you would have tofollow the guidelines of employee welfare in your company. You would also have to interactwith the Labour Commissioner to ensure you have all registrations required and to understandthe laws carefully.Obviously opening a retail store in India can be extremely lucrative with the retail sectorgrowing at a phenomenal rate. Also with increasing purchasing power, India’s giganticpopulation would be unmatched anywhere else in the future as potential customers. However,it is important you conduct thorough market research and learn tastes and preferences in thecountry based on each state. India is a unique country where preferences could differ as per thestate or as per regions such as north India, west India etc. All retail companies must conductregion wise market research and build their strategies accordingly if they want to truly succeedin India.
  13. 13. LEARNINGS:Following are some of the things we learnt in Reliance Mart: All Article numbers of Private labels of reliance mart starts with 49 and 9 digit internal code is used. For example: Product name:Masala breadArticle number: 490446832MRP: 32Manufactured by: Reliance F&B service LTD.The Indian branded items will have the article number starting with 89. Non vegetarian distribution section is in Thane. Chicken is available both in loose and packed. Packed is from godrej which has tie-up with tisen and yummier which is real goods brand CDIT (consumer durable &information technology, consumer electronic durable information technology and telecommunication). Security pods, Accessorise and Enhancement are used to prevent pilferage of electronics. In electronic goods, more the stars assigned for the products less the power consumption takes place. Every two years stars will be revised and calculating thestars is relative calculation and it also depends on the customer needs. Need not be that all the customers will buy 5 stared products. Many companies put dummy model for the display