M&S Reliance Joint Venture Ppts


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M&S Reliance Joint Venture Ppts

  1. 1. M&S  M&S one of the largest retailers of UK.  M&S had its operations in about 34 countries with 840 stores and about 219 franchisees all over the world.  In India they were operating with 14 franchise stores, PLANET RETAIL since 2001.  With over 21 million people visiting their stores each week.  They employ over 75,000 people in the UK and abroad, and have over 600 UK stores, plus an expanding international business.
  2. 2. RELIANCE RETAIL  Reliance Retail is the retail business of Reliance Industries.  Many brand names under this business such as Reliance iStore, Reliance Home Kitchens, Reliance Time Out, Reliance Digital, Reliance Wellness, Reliance Trends etc.  This company followed a diversification strategy since its inception. It vertically integrated. This resulted in formation of many subsidiaries. Reliance Retail is one such subsidiary.
  3. 3. JOINT VENTURE  A joint venture is an entity formed between two or more parties to undertake economic activity together. The parties agree to create a new entity by both contributing equity, and then they share in the revenues, expenses, and control of the enterprise
  4. 4. Govt. rule  The Govt. had permitted retailers of single brand products to own a majority stake in a JV with a local partner(with prior to Govt. permission). Retailers of multi brands are permitted to operate through franchisees and licensees.
  5. 5. ENTERING TO INDIA  M&S one of the largest retailers of UK, entered in India by a joint venture with RELIANCE RETAIL LTD. (RRL). The announcement was made on April18, 2008.  NAME- Marks & Spencer’s Reliance India Pvt. Ltd.  STAKE- 51% stake of M&S and 49% of RRL.  INVESTMENT- 29mn pounds from both sides.
  6. 6. OUTLOOK- THE STORES  Initially stores will be opened at metros(DELHI, MUMBAI, KOLKATTA, CHENNAI) with first store being opened in Mumbai in Jan 2009.  Stores will be first of its kind in India, with an area of about 20,000 sq ft, with operations in apparels for children, women and men, gift items, house ware, home furnishing etc.  This JV will bring to India anew format of seamless malls i.e. shops within shops, with separate boutiques.
  7. 7. STRATEGY TO BE USED  Sourcing about 70% of the product by volume to be sold in India, sourced from the country itself. And to increase total number of suppliers who will source to the company.
  8. 8. M&S deep thoughts  This JV will help it to launch its line of food business in India.  Moreover it can diversify it to emerging economies like India and China.
  9. 9. Benefits of RRL  Help in positioning of Reliance Retail stores in a way that it would appeal to higher strata of society.
  10. 10. Why they choose RRL  Strength in technology  Logistics  Property  Speed with which they have become a major player in India’s retail sector.
  11. 11. COMPETITION  Intense competition from retailers like PANTALOOM etc.  From CORNER STORES in India.  Mall culture  Franchisees of various international brands.
  12. 12. FUTURE PROSPECTS  Retail industry scene of India- It was estimated to be about US$410 bn in 2008 and in 2018 it will be about US$869 bn.  Developing economy- India
  13. 13. Benefits of this JV to India  Provide jobs  Attachment of global leaders to Indian market  FDI  Much variety of international level for Indian customers.
  14. 14. THANK YOU