MR VIJAY KUMARHEAD – INTERNATIONALBUSINESSRELIANCE RETAIL
Indian EconomyFiscal Year    GDP at current prices                  (US$ Billion)2005-6                 8042009-10        ...
India is Growing                                                      Source:                                             ...
Attractive Retail Market                                                                  Source:                         ...
Indian Retail
Indian Retail Market700                         637600500              427400       300300                                ...
The Challenge of Many INDIAs                                                      Rural India   Very Rich                 ...
Organized Retail still in its infancy                                       Source:                                       ...
FOOD Large Consumption Share         –                                  Source: Ernst & Young• At 77 %, Food & Grocery is ...
Indian consumers are evolving… • from traditional to…        … modernised traditional • from globalise to…          … Indi...
Consumption ShiftProcessed food consumption   From “packaged is stale” to “packaged is hygienic and high quality”   Increa...
The Shift DriversDemographic advantage: YoungpopulationIncreasing discretionary incomesIncreasing retail spaceCredit avail...
RELIANCE
Reliance: Contribution to Indian Economy   Turnover: USD 34.7 billion   Gross Profit : USD 4.9 billion• Revenues equivalen...
Reliance: Global Ranks              Global RankNet Sales          269              73Net Profit         179              1...
Reliance: Major InitiativesExploration & ProductionRefinery – JamnagarSpecial Economic ZonesReliance Retail
RELIANCE
Reliance: Contribution to Indian Economy   Turnover: USD 34.7 billion   Gross Profit : USD 4.9 billion• Revenues equivalen...
Reliance: Global Ranks              Global RankNet Sales          269              73Net Profit         179              1...
Reliance: Major InitiativesExploration & ProductionRefinery – JamnagarSpecial Economic ZonesReliance Retail
RELIANCE RETAIL
Reliance: Retail VisionTo be the most admired and successful organized retail company in   India that materially enhances ...
Reliance Retail - FormatsFood & GroceryApparel & FootwearConsumer Durables &ElectronicsFurniture & FurnishingsFMCG & Perso...
Reliance Fresh Concept2000 - 4000 sq. ft pilot stores selling primarily freshfood and grocery itemsTargeted at all income ...
Reliance Retail Store
Reliance Retail Store
Reliance Retail Store
Reliance Retail 3-5 yrs Plan• 100 mn sq ft retail space• Multiple Formats:      • Convenience Store      • Supermarket    ...
Reliance Retail Infrastructural            Investments• Pan India Rural Business Hubs and Collection Centers• Pre-cooling ...
Reliance RetailBenefits for stake holdersConsumers                                       Vendors•Wide assortment, affordab...
RelianceHow NZ Companies Can Engage• Various models possible – product supply in bulk or IP  licensing• Reliance will be i...
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Vijay kumar reliance retail presentation

  1. 1. MR VIJAY KUMARHEAD – INTERNATIONALBUSINESSRELIANCE RETAIL
  2. 2. Indian EconomyFiscal Year GDP at current prices (US$ Billion)2005-6 8042009-10 11332014-15 1721 Sources • 2006 GDP :Central Statistical Organization (CS0) • Growth Rates :Goldman Sach’s BRIC report
  3. 3. India is Growing Source: Economist• India will be the third largest economy by 2040
  4. 4. Attractive Retail Market Source: AT Kearney Global Retail Development Index (GRDI)India’s retail market has grown by 10% on average for past 5 years …steadily rising to top position in GRDI
  5. 5. Indian Retail
  6. 6. Indian Retail Market700 637600500 427400 300300 % Split200 Urban 45 Rural 55100 0 2006 2010 2015 US $ Billion
  7. 7. The Challenge of Many INDIAs Rural India Very Rich • 4,200 small towns and 650,000 villages Consuming Class • 766 MN population ClimbersThe MetrosPopulation > 1 MN Aspirants• 36 cities Tier II Town• 117 MN population Destitutes Population < 1 MN • 748 towns •120 MN population
  8. 8. Organized Retail still in its infancy Source: JM Morgan Stanley• With just 2 to 3 % of retail being organized…. India represents a huge opportunity
  9. 9. FOOD Large Consumption Share – Source: Ernst & Young• At 77 %, Food & Grocery is the largest segment in retail sales
  10. 10. Indian consumers are evolving… • from traditional to… … modernised traditional • from globalise to… … Indianise • from functional to… … lifestyle • from cautious to… … experimental • from over-the-counter to… … touch-and-feel • from value for money to… …value for time and convenience
  11. 11. Consumption ShiftProcessed food consumption From “packaged is stale” to “packaged is hygienic and high quality” Increased tendency towards disposability Shift from price consideration to design and qualityLifestyle Aspiration looking and feeling good Source: AT Kearney Health conscious Growing health/dietary supplements Growing organic produce
  12. 12. The Shift DriversDemographic advantage: YoungpopulationIncreasing discretionary incomesIncreasing retail spaceCredit availability
  13. 13. RELIANCE
  14. 14. Reliance: Contribution to Indian Economy Turnover: USD 34.7 billion Gross Profit : USD 4.9 billion• Revenues equivalent to 2.9% of India’s GDP• 12% of India’s total exports• 6.5% of the Government of India’s indirect tax revenues• 5.7% of the total market capitalization• 13.4% weightage in the BSE Sensex• 11.7% weightage in the Nifty Index
  15. 15. Reliance: Global Ranks Global RankNet Sales 269 73Net Profit 179 15Net Worth 190 36Assets 299 52 Source: Fortune Global 500, 23rd July 2007India’s only private sector company to list in Fortune 500 listAmongst the fastest growing companies in Fortune 500
  16. 16. Reliance: Major InitiativesExploration & ProductionRefinery – JamnagarSpecial Economic ZonesReliance Retail
  17. 17. RELIANCE
  18. 18. Reliance: Contribution to Indian Economy Turnover: USD 34.7 billion Gross Profit : USD 4.9 billion• Revenues equivalent to 2.9% of India’s GDP• 12% of India’s total exports• 6.5% of the Government of India’s indirect tax revenues• 5.7% of the total market capitalization• 13.4% weightage in the BSE Sensex• 11.7% weightage in the Nifty Index
  19. 19. Reliance: Global Ranks Global RankNet Sales 269 73Net Profit 179 15Net Worth 190 36Assets 299 52 Source: Fortune Global 500, 23rd July 2007India’s only private sector company to list in Fortune 500 listAmongst the fastest growing companies in Fortune 500
  20. 20. Reliance: Major InitiativesExploration & ProductionRefinery – JamnagarSpecial Economic ZonesReliance Retail
  21. 21. RELIANCE RETAIL
  22. 22. Reliance: Retail VisionTo be the most admired and successful organized retail company in India that materially enhances the quality of life of every IndianBy Providing unprecedented affordability, quality and choice Being the partner of choice in creating prosperity for Indian farmers and other vendor partners Unleashing the power of the Indian workforce through the generation of new & attractive employment opportunities
  23. 23. Reliance Retail - FormatsFood & GroceryApparel & FootwearConsumer Durables &ElectronicsFurniture & FurnishingsFMCG & Personal CareLifestyle Products andServicesHealthcare, Financial,Membership, Travel,Auto and EntertainmentServices
  24. 24. Reliance Fresh Concept2000 - 4000 sq. ft pilot stores selling primarily freshfood and grocery itemsTargeted at all income groupsDifferentiation Full range, consistent availability of high quality Fruits & Vegetables State-of-the-art retail infrastructure and supply chain. Modern, hygienic yet non intimidating store environment
  25. 25. Reliance Retail Store
  26. 26. Reliance Retail Store
  27. 27. Reliance Retail Store
  28. 28. Reliance Retail 3-5 yrs Plan• 100 mn sq ft retail space• Multiple Formats: • Convenience Store • Supermarket • Specialty Store • Hypermarket • Cash & Carry • Rural Business Hubs (RBH)• Presence in 1600 urban/rural towns
  29. 29. Reliance Retail Infrastructural Investments• Pan India Rural Business Hubs and Collection Centers• Pre-cooling infrastructure and refrigerated vans for transport• City processing centres and Distribution centres• Logistics infrastructure for speedy transport of perishables
  30. 30. Reliance RetailBenefits for stake holdersConsumers Vendors•Wide assortment, affordable prices •Higher category growth•Better shopping environment/ •Improved supply chain efficiencyexperience •Ease in launching innovative productsFarmer Country•Direct correlation between consumer •Infrastructurepreference & production •Employment•Better prices •Revenue and tax generation•Access to all info/services
  31. 31. RelianceHow NZ Companies Can Engage• Various models possible – product supply in bulk or IP licensing• Reliance will be interested where speed to market is required to fill portfolio gaps or meet new opportunities• Work through NZTE – find out where the opportunities exist
  32. 32. Thank You!

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