Presented By  Uday Mishra GSBA Gr. Noida [email_address] 9891683518 September 16, 2011
<ul><li>DEFINING RURAL INDIA </li></ul><ul><li>RURAL RETAIL SCENARIO IN INDIA </li></ul><ul><li>REGULATIONS AND POLICIES  ...
Census of India defines Rural Settlements as...... Population lower than 5,000 persons Population density lower than 400 p...
<ul><li>RETAIL TOWARDS RURAL AREAS </li></ul><ul><li>GREAT OPPORTUNITIES FOR MARKETER </li></ul><ul><li>THE INDIAN RURAL M...
<ul><li>Rural India consists of 720 Million consumers across  6,38,000  villages </li></ul><ul><li>--- 17%  of these villa...
<ul><li>Rural Retail is growing @ 7% p.a. </li></ul><ul><li>Rural consumption is also shifting from basic food grains to f...
September 16, 2011
<ul><li>The Rs 140,000 crore rural retail market is expected to cross Rs 180,000 crore mark by 2010, And  up to Rs 240, 00...
<ul><li>increased access to information  and communication technology,  </li></ul><ul><li>improving infrastructure  </li><...
September 16, 2011 OCCUPATIONS URBAN RURAL Cultivator 5 40 Petty Shopkeeper 15 5 Wage earner 20 35 Salary earner 40 20 Oth...
US  China  India Total Retail  2325  323  180 Value $ bn % Salience to above Traditional  15  80  98 Modern  85  20  2 Sou...
<ul><li>Is a value seeker </li></ul><ul><li>Seeks comforts and amenities </li></ul><ul><li>Does not wish to be seen as the...
1.  Essential commodity act : The fertilizer industry is centrally regulated by the government through an administered pri...
5 4  Non Agricultural Use Clearance-- 5.  Under PN4/2006  -- 100% FDI is allowed through the automatic route in -Floricult...
<ul><li>GODREJ ADHAR </li></ul><ul><li>ITC-CHAUPAL </li></ul><ul><li>HARIYALI BAZAAR </li></ul>September 16, 2011
FORMAT OF GODREJ ADHAR FMCG products, fertilizers, animal feed, etc. Services like banking, insurance, pharmacy, postal se...
services offered  crop advisory services, soil & water testing services; buy back of output, crop finance, supply of agri ...
<ul><li>24 outlets in eight rural locations across the country and each outlet services 20  villages in its vicinity </li>...
The Trusted Rural Business Hub Help the customer increase his income, educate the customer, before you sell to the custome...
<ul><li>Hariyali Kisaan Bazaar </li></ul><ul><li>Mr. Ajay Shriram, Chairman  </li></ul><ul><li>Mr. Vikram Shriram, Vice Ch...
DSCL plans to expand to 250-300 outlets by the end of FY 2008-09. Each store covers an area of 3-4 acres and is managed by...
September 16, 2011
September 16, 2011
The number of Hariyali outlets now stands at 177, which the company plans to scale up aggressively to around 300 outlets b...
September 16, 2011
September 16, 2011
This concept aims to Provide the power of expert knowledge to even the smallest farmer 2. Information helps farmers secure...
<ul><li>Benefits to farmers include </li></ul><ul><li>Better purchase price of agri-inputs </li></ul><ul><li>Avail informa...
By 2012, ITC Vision is to cover 100 thousand villages, which represent 1/6th of rural India, and create more than 10 milli...
IDEA BEHIND CHAUPAL SAGAR -- MAKE THE POTENTIAL CUSTOMERS --PROVIDE DIFFERENT CUSTOMER SERVICES --REAP THE BENEFIT FROM PO...
<ul><li>A WIDE RANGE OF PRODUCTS FOR ALL SEGMENTS </li></ul><ul><li>TRAINING FACILITIES FOR FARMING COMMUNITY ON SCIENTIFI...
<ul><li>ESTABLISHMENT OF ATMs AT  MALLS </li></ul><ul><li>AVAILIBILITY OF INSURANCE PRODUCTSFOR FARMERS </li></ul><ul><li>...
September 16, 2011 ITC FARMERS INSURANCE COMPANY AGRI-INPUT COMPANY AGRICULTURE UNIVERSITIES/STATE AGRICULTURE DEPT INPUT ...
<ul><li>–  Increasing costs of land </li></ul><ul><li>–  Pace of expansion </li></ul><ul><li>–  High operating costs </li>...
•  Lack of literacy and awareness •  Low per capita income •  Wide geographic spread. •  Gaps in road and Telecommunicatio...
<ul><li>Farmers get agri-inputs at competitive rates and </li></ul><ul><li>have range of products to choose from </li></ul...
<ul><li>•  Integration of rural initiatives into business model like ITC </li></ul><ul><li>•  Corporate should supplement...
September 16, 2011 During the first millennium AD, merchants referred to India as the Bird of Gold, due to the glittering ...
T H A N K S <ul><li>T H A N K S </li></ul>September 16, 2011
September 16, 2011
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  • 09/16/11
  • Final ppt-rural-retail-1234766583703793-2 1

    1. 1. Presented By Uday Mishra GSBA Gr. Noida [email_address] 9891683518 September 16, 2011
    2. 2. <ul><li>DEFINING RURAL INDIA </li></ul><ul><li>RURAL RETAIL SCENARIO IN INDIA </li></ul><ul><li>REGULATIONS AND POLICIES IN RURAL RETAIL </li></ul><ul><li>SIGNIFICANT PLAYERS – </li></ul><ul><li>goderj adhar </li></ul><ul><li>itc -chaupal </li></ul><ul><li>hariyali kisan bazaar </li></ul><ul><li>BUSINESS MODEL OF ITC </li></ul><ul><li>IMPEDIMENTS & RECOMMENDATIONS </li></ul>September 16, 2011
    3. 3. Census of India defines Rural Settlements as...... Population lower than 5,000 persons Population density lower than 400 persons/sq. km At least 75% of male population engaged in Agri. activities. September 16, 2011
    4. 4. <ul><li>RETAIL TOWARDS RURAL AREAS </li></ul><ul><li>GREAT OPPORTUNITIES FOR MARKETER </li></ul><ul><li>THE INDIAN RURAL MARKET </li></ul>September 16, 2011
    5. 5. <ul><li>Rural India consists of 720 Million consumers across 6,38,000 villages </li></ul><ul><li>--- 17% of these villages account for 50% of the rural population and 60% of the rural wealth </li></ul><ul><li>----Extensive reach is required as to cover 50% market 1,00,000 villages must be catered Immense opportunity amounting to US$ 125 billion </li></ul>September 16, 2011
    6. 6. <ul><li>Rural Retail is growing @ 7% p.a. </li></ul><ul><li>Rural consumption is also shifting from basic food grains to fruits, vegetables, dairy and poultry products, as well as beverages </li></ul><ul><li>Demand for better quality food leading to huge demand for basic foods </li></ul>September 16, 2011
    7. 7. September 16, 2011
    8. 8. <ul><li>The Rs 140,000 crore rural retail market is expected to cross Rs 180,000 crore mark by 2010, And up to Rs 240, 000 crore by 2015 (CII). </li></ul><ul><li>The rural revolution is driven by </li></ul><ul><li>R ising purchasing power, </li></ul><ul><li>Changing consumption patterns, </li></ul>September 16, 2011
    9. 9. <ul><li>increased access to information and communication technology, </li></ul><ul><li>improving infrastructure </li></ul><ul><li>increased government initiatives to boost the rural economy , </li></ul>September 16, 2011
    10. 10. September 16, 2011 OCCUPATIONS URBAN RURAL Cultivator 5 40 Petty Shopkeeper 15 5 Wage earner 20 35 Salary earner 40 20 Others 18 8
    11. 11. US China India Total Retail 2325 323 180 Value $ bn % Salience to above Traditional 15 80 98 Modern 85 20 2 Source: Census 2001, IRS 2006, AC Nielsen Source: AC Nielsen September 16, 2011
    12. 12. <ul><li>Is a value seeker </li></ul><ul><li>Seeks comforts and amenities </li></ul><ul><li>Does not wish to be seen as the </li></ul><ul><li>deprived cousin. </li></ul><ul><li>Does not experiment easily but </li></ul><ul><li>this does not mean that “he would not change”. </li></ul><ul><li>Values local relationships because </li></ul><ul><li>of unfavourable past experiences </li></ul>September 16, 2011
    13. 13. 1. Essential commodity act : The fertilizer industry is centrally regulated by the government through an administered pricing mechanism & sales allocation under Essential Commodities Act (ECA). In the year 2002-03, the government announced a long term Pricing policy for urea. 2. Indian Land Acquisition Act 1894 3. Agricultural Produce (Grading & Marking) ACT, 1937 (ACT No. 1 of 1937)(as amended up to 1986) September 16, 2011
    14. 14. 5 4 Non Agricultural Use Clearance-- 5. Under PN4/2006 -- 100% FDI is allowed through the automatic route in -Floriculture, Horticulture, Development of Seeds, Animal Husbandry Pisciculture, aqua-culture, cultivation of vegetables, mushrooms, under controlled conditions and services related to agro and allied Sectors. 6. Intra state agricultural land taxes -- vary, prompting the current finance-minister to moot for a common GST (Goods and services tax) which would help in bringing all the various state taxes under a common fold including the agricultural income taxes levied individually state to state. September 16, 2011
    15. 15. <ul><li>GODREJ ADHAR </li></ul><ul><li>ITC-CHAUPAL </li></ul><ul><li>HARIYALI BAZAAR </li></ul>September 16, 2011
    16. 16. FORMAT OF GODREJ ADHAR FMCG products, fertilizers, animal feed, etc. Services like banking, insurance, pharmacy, postal services and petrol pumps September 16, 2011
    17. 17. services offered crop advisory services, soil & water testing services; buy back of output, crop finance, supply of agri inputs and animal feeds, transfer of information (weather, price, and demand supply), door delivery of products etc. September 16, 2011 A COMPLETE SOLUTION PROVIDER FOR THE INDIAN FARMERS provides professional guidance with an objective to improve productivity, higher returns and improved cost benefit ratio.
    18. 18. <ul><li>24 outlets in eight rural locations across the country and each outlet services 20 villages in its vicinity </li></ul><ul><li>Godrej Aadhar has already forged JVs with Apollo Pharmacy, Tata Agrico, Bajaj Allianz Life Insurance and HPCL for value added services at the outlets. </li></ul><ul><li>The company plans to set up more than 1,000 stores by 2010. </li></ul>September 16, 2011
    19. 19. The Trusted Rural Business Hub Help the customer increase his income, educate the customer, before you sell to the customer September 16, 2011
    20. 20. <ul><li>Hariyali Kisaan Bazaar </li></ul><ul><li>Mr. Ajay Shriram, Chairman </li></ul><ul><li>Mr. Vikram Shriram, Vice Chairman & MD </li></ul><ul><li>The concept aims to simplify the </li></ul><ul><li>Private label seeds </li></ul><ul><li>Contract farming – vegetables </li></ul><ul><li>Procurement </li></ul>September 16, 2011
    21. 21. DSCL plans to expand to 250-300 outlets by the end of FY 2008-09. Each store covers an area of 3-4 acres and is managed by a team of 7-8 people whom the Company trains continuously. It offers the rural household all farming and consumer products and related services along with financial services under one roof. The company also launched credit services during its second quarter 2007-08, in association with HDFC bank, providing loans for various purposes. September 16, 2011 Hariyali Kisaan Bazaar
    22. 22. September 16, 2011
    23. 23. September 16, 2011
    24. 24. The number of Hariyali outlets now stands at 177, which the company plans to scale up aggressively to around 300 outlets by March 2009. Launched in 2002-03 ‘ Hariyali’ is now present in 8 states across India September 16, 2011
    25. 25. September 16, 2011
    26. 26. September 16, 2011
    27. 27. This concept aims to Provide the power of expert knowledge to even the smallest farmer 2. Information helps farmers secures better price, quality and productivity September 16, 2011
    28. 28. <ul><li>Benefits to farmers include </li></ul><ul><li>Better purchase price of agri-inputs </li></ul><ul><li>Avail information on best farming practices </li></ul><ul><li>Command prevailing market prices </li></ul><ul><li>4 million farmers benefited through 6,500 </li></ul><ul><li>installations covering around 40,000 villages </li></ul>September 16, 2011
    29. 29. By 2012, ITC Vision is to cover 100 thousand villages, which represent 1/6th of rural India, and create more than 10 million e-farmers September 16, 2011
    30. 30. IDEA BEHIND CHAUPAL SAGAR -- MAKE THE POTENTIAL CUSTOMERS --PROVIDE DIFFERENT CUSTOMER SERVICES --REAP THE BENEFIT FROM POTENTIAL CUSTOMER September 16, 2011
    31. 31. <ul><li>A WIDE RANGE OF PRODUCTS FOR ALL SEGMENTS </li></ul><ul><li>TRAINING FACILITIES FOR FARMING COMMUNITY ON SCIENTIFIC FARMING PRACTICES </li></ul><ul><li>GODOWNS FOR STORAGE OF FARM PRODUCE </li></ul><ul><li>INFORMATION CENTER FOR ONLINE WEATHER INFORMATION </li></ul><ul><li>CONTINOUS SERVICES FROM 6AM- 9PM </li></ul>September 16, 2011
    32. 32. <ul><li>ESTABLISHMENT OF ATMs AT MALLS </li></ul><ul><li>AVAILIBILITY OF INSURANCE PRODUCTSFOR FARMERS </li></ul><ul><li>TIE WITH PRIVATE HEALTH CARE SERVICE PROVIDER FOR PRIMARY HEALTH CARE FACILITY </li></ul><ul><li>TIE WITH BPCL FOR FUEL PUMPS </li></ul><ul><li>ESTABLISHMENT OF SOIL TESTING LABORATRIES </li></ul><ul><li>PUBLIC ENTERTAINMENT </li></ul>September 16, 2011
    33. 33. September 16, 2011 ITC FARMERS INSURANCE COMPANY AGRI-INPUT COMPANY AGRICULTURE UNIVERSITIES/STATE AGRICULTURE DEPT INPUT SUPPLY TECHNCAL GUIDANCE MARKETING ASSISTENCE TRAINING
    34. 34. <ul><li>– Increasing costs of land </li></ul><ul><li>– Pace of expansion </li></ul><ul><li>– High operating costs </li></ul><ul><li>– Low margin of agri-inputs </li></ul><ul><li>– Low purchasing power of consumers </li></ul>September 16, 2011
    35. 35. • Lack of literacy and awareness • Low per capita income • Wide geographic spread. • Gaps in road and Telecommunications connectivity. • Lack of reliable electricity and water supply • Limited Distribution network for example cold storage. • Competition from local players September 16, 2011
    36. 36. <ul><li>Farmers get agri-inputs at competitive rates and </li></ul><ul><li>have range of products to choose from </li></ul><ul><li>Increasing rural bank aid (loans) helps improve the </li></ul><ul><li>purchasing capability of farmers </li></ul><ul><li>Farmers avail of the services of agronomists to </li></ul><ul><li>improve their farming practices, thereby impacting </li></ul><ul><li>on their final produce </li></ul><ul><li>Farmers get a better price for their products and </li></ul><ul><li>avoid middlemen </li></ul>September 16, 2011
    37. 37. <ul><li>•  Integration of rural initiatives into business model like ITC </li></ul><ul><li>• Corporate should supplement government efforts & resources (infrastructure development, education system, storage) </li></ul><ul><li>• Creating retail stores which should be rural in nature so that the rural masses identify themselves with these stores. </li></ul><ul><li>• Innovative & Exciting Initiatives such as Village BPO should be given impetus to tap the talent in the rural India. </li></ul>September 16, 2011
    38. 38. September 16, 2011 During the first millennium AD, merchants referred to India as the Bird of Gold, due to the glittering dynamism of its market. Over the next few years, the Bird of Gold is poised to take flight once again.
    39. 39. T H A N K S <ul><li>T H A N K S </li></ul>September 16, 2011
    40. 40. September 16, 2011

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