The document discusses foreign direct investment and retail investment in India. It provides definitions of foreign direct investment and explains that FDI is undertaken by companies in one country investing directly in operations located in another country. It notes some key reasons for FDI include taking advantage of lower costs, incentives offered by the host country like tax breaks, and access to new markets. The document then outlines some sectors in India that allow varying levels of foreign investment. It provides an overview of the types of retail formats in India and discusses opportunities and challenges of retail investment in India.

2. The commitment of money or
capital to purchase financial
instruments or assets in order to
gain profitable returns.

3. Foreign
Investment done by citizens and Investment
government of one country (home through
country) invest in industries of
another country (host country).
Foreign Foreign
Direct Institutional
Investments Investors

4. ◦ Foreign direct investment (FDI) is direct investment
into production in a country by a company located
in another country, either by buying a company in
the target country or by expanding operations of an
existing business in that country.
◦ Foreign direct investment is done for many reasons
including to take advantage of cheaper wages in the
country, special investment privileges such as tax
exemptions offered by the country as an incentive
to gain tariff-free access to the markets of the
country or the region.

5.  Multi brand retail-51%
 Civil aviation sector-49%
 Insurance-26%
 Defence-26%
 Printmedia-26%
 Broadcasting-fm radio stations-20%
 cable network-49%
 direct 2 home services-49%
 Banking (new bank after august 2011-49%
 private sector(74%)

6. 1. Atomic Energy
2. Lottery Business including Government /
private lottery, online lotteries etc
3. Gambling and Betting including casinos etc.
4. Business of chit fund;
5. Trading in Transferable Development Rights
(TDRs)
6. Activities/sector not opened to private sector
investment
7. Agriculture
8. Real estate business, or construction of farm
houses

7. Super
Government markets
Kirana Stores
Stores Hyper
markets
Weekly Conveni
ence Malls
market
store Brand
Village outlets
Barter melas
system

8. Incentives attract FDI.
Market size and potential are sufficient inducers.
 Tax breaks, import duty exemptions, land and power subsidies, and
other enticements.
Quick and easy market penetration
Availability of cheap labor.

9. • Corporate are increasingly coming into this 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.

10. Format Description Retailers
Hypermarkets Offering basket of product Spencer's, Big bazaar
Cash and Carry Bulk-buying requirement Bharti-walmart
Departmental stores Large layout, Wide merchandise Lifestyle , Glob us
mix
Supermarkets Household product as well as food Apna bazaar , food
as integral part of the service bazaar
Shop-in-shop Shops located in shopping malls Navras ( big bazaar)
Specialty stores Focus on individual product type Brand Factory
Category killers Particular segment The LOFT
Discount stores Branded product at discounted Subhiksha, Levi's
prices outlet
Convenience stores Small Retail stores In and out

11. Retail Segment Percentage holding Major retailers
in sector
Food and grocery 63% Reliance fresh, Café
brio, food bazaar
Clothing, textile and 9% Westside, shoppers
fashion stop, globus
jewellery 5% Tanishq
Catering services 5% IRCTC
Consumer durable 4% Viveks, vijay sales,
Croma
pharmaceuticals 4% Piramal group
Entertainment 3% Bowling co.,
Furnishing, utensils 3% Hometown, Tangent
Concept
Mobile handsets 2% The mobile store,

12. • One of the world's largest industries exceeding US$ 9
trillion.
• Dominated by developed countries.
• 47 global fortune companies & 25 of Asia's top 200
companies are retailers.
• US, EU & Japan constitute 80% of world retail sales.

13. US France UK Germany US
Sales: $374.5 Sales: $130 Sales: $102.6 Sales: $101 Sales: $77.3
bn bn billion billion bn
Earnings: Earnings: Earnings: Earnings: Earnings:
$12.9 billion $5.2 billion $5.5 billion $1.5 billion $4.2 billion
Stores: 6,800 Stores: Stores: 3,729 Stores: 2,221
87,422 worldwide
worldwide
worldwide Stores: 2,258

14. •Employment generation.
Second-largest employer after
agriculture. Additional
1.6 mn
Retail trade employing 35.06 million.
jobs .
Wholesale trade generating an
additional employment of 5.48 million.

15. •Technology Better use of resources and
goods.
Wastage and Storage problems will be
resolved.
Efficient logistics, production, and
distribution channels.
Digital records.

16. SKILLED
WORKERS
INFLATION COMPETITION
REAL
TAXATION
ESTATE
POLICIES
PROBLEM
PROBLEM IN MARKET
RAISING POWER
FUNDS
SUPPLY CHAIN
MANAGEMENT

17. • Pantaloons
GLOBAL
• Tesco
INDIAN
• Reliance • Wal-Mart
• Bharti retail • Metro
• RPG • Carrefour
• Lifestyle • B&Q
• Subhiksha • Target
• Piramyd
• Trent
• Vishal group

18. Pantaloon
Lifestyle plans Shoppers Stop Timex India will
has plans to Retail India open another
to have more
invest Rs250 (PRIL) plans to 52 stores by
than 50 stores
Crore to open invest US$ March 2011
across India by
15 new 77.88 million taking its total
2012–13.
supermarkets to add up to store count to
in the coming existing 2.4 120
three years. million sq ft
retail space. .

20. • Investment into warehouse and cold storage chain will
result in significant efficiency on supply chain.
• Farmers benefited through direct marketing and contract
farming programme.
• Improves farm production through modern techniques.
• Increasing availability of low interest credit for farmers.

21. ?????
 What additional steps should be taken to protect
small retailers?
 Should an exclusive legal and regulatory
framework be established to protect their interests?
 Can foreign markets compete with kirana shops?

22.  Restrict the number of stores that can be operated in a city.
 Allow access to the small retailers to the stores through
special windows.

23. Thank You
Yamini reddy