BIG BAZAARRetail is Indias largest industry, accounting for over 10 percent of the countrys GDP and around 8 percent of the employmindustry in India is at the crossroads. It has emerged as one of the most dynamic and fast paced industries with seveentering the market. But because of the heavy initial investments required, break even is difficult to achieve and manplayers have not tasted success so far. However the future is promising; the market is growing, government policies aremore favorable and emerging technologies are facilitating operations. Retailing in India is gradually inching its way towardthe next boom industry. The whole concept of shopping has altered in terms of format and consumer buying behavior, usrevolution in shopping in India. Modern retail has entered India as seen in sprawling shopping centers, multi-storeyedhuge complexes offer shopping, entertainment and food all under one roof. The Indian retailing sector is at an inflexion pothe growth of organized retailing and growth in the consumption by the Indian population is going to take a hightrajectory. The Indian population is witnessing a significant change in its demographics. A large young working populaverage age of 24 years,nuclear families in urban areas, along with increasing working-women population andopportunities in the services sector are going to be the key growth drivers of the organized retail sector in India. Retalargest industry accounting for over 10 percent of the countrys GDP and around 8 percent of the employment The marIndian retail industry is about US $312 billion. During the past decade, Private Final Consumption Expenditure has beedriver of economic growth in India. The $350 Billion Consumption spending provides the single biggest business opportunand is divided into some key categories led by food, fashion and home products. Future Value Retail Limited is a whosubsidiary of Pantaloon Retail (India) Limited. This entity has been created keeping in mind the growth and the currentcompanys value retail business, led by its format divisions, Big Bazaar and Food Bazaar. The company operates 120 Big Baz170 Food Bazaar stores, among other formats, in over 70 cities across the country, covering an operational retail spacemillion square feet. As a focussed entity driving the growth of the groups value retail business, Future Value Retail Lcontinue to deliver more value to its customers, supply partners, stakeholders and communities across the country andgrowth of modern retail in India. A subsidiary company, Home Solutions Retail (India) Limited, operates Home Town, a larhome solutions store, Collection i, selling home furniture products and eZone focused on catering to the consumer esegment. Pantaloon Retail is the flagship company of Future Group, a business group catering to the entire Indian cospace.Indian retail sector is witnessing one of the most hectic Marketing activities of all times. The companies are fightinghearts of customer who is God said by the business tycoons. There is always a ‘first mover advantage’ in an upcomingIndia, that advantage goes to “BIG BAZAAR”. It has brought about many changes in the buying habits of people. It hformats, which provide all items under one roof at low rates, or so it claims. In this project, we will study its marketing strapromotional activities. Big bazaar, the flagship retail chain of the Future Group, is on the verge of achieving a unique milestHistory of World Retail – by being the first hypermarket format in the globe to rollout fastest 101 stores in a short spayears. Currently, Big Bazaar has 98 stores in the country, including the recently opened store in Mysore on September 2Further to this, Big Bazaar will be opening three more stores in a single day – i.e. 30th September 2008, which will take thcount to 101 stores in the country. These three stores opening shortly in Pune (Kalyani Nagar), Cuttack (Darga Bazaar)(Rajouri Garden).Big bazaar, journey began in October 2001, when the young, first generation entrepreneur Kishore Biyan
the country’s first hypermarket retail outlet in Kolkatta (then Calcutta). In the same month, two more stores were added –in Hyderabad and Mumbai, thus starting on a successful sojourn which began the chapter of organized retailing in India. Spthis momentous occasion and remembering the days of conceptualising the hypermarket idea Mr. Kishore Biyani said, “Wdecided to name the format as “Bazaar” because we had designed the store keeping the Indian mandi style in mind. Sincethe hypermarket was big than an average mandis, the thought came to name it as “Big Bazaar”. However, we had freezpunch line “Isse Se Sasta Aur Achha Kahi Nahi” much before we met the creative agency to design the final logo of BiThough, Big Bazaar was started purely as a fashion format including apparel, cosmetics, accessory and general merchandisFood Bazaar format was added as Shop-In-Shop within Big Bazaar in the year 2002. Today, Big Bazaar, with its wideproducts and service offering, reflects the aspirations of millions of Indians. The journey of Big Bazaar can be divided into t– one pre and the other post January 26th, 2005, when the company rewrote the retail chapter in India, with the introdunever- before sales campaign “Sasbe Sasta Din”. In just one day, almost the whole of India descended at various Big Bazaathe country to shop at their favourite shopping destination. Further, what followed was the time and again rewriting ofRetail experience, wherein understanding of the Indian consumers reflected in the products and services offeredinnovative deals, expanding in the tier II and tier III towns, tying up with branded merchandise to offer exclusive proservices to its customers. Big bazaar is present today in 59 cities and occupying over 5 million sq.ft. retail space and drivinmillion footfalls into its stores. The format is expecting the number of footfall in the stores to increase by over 140 millfinancial year. Over the years, Mr. Biyani for his vision and leadership, and Big Bazaar for its unique proposition to its chave received every prestigious consumer awards both nationally and internationally. Says Rajan Malhotra, President,Convergence, Big Bazaar, “What is important in our journey is not the number of stores, but the customers’ faith in us. It’and the Indians, which have helped us, reach this feat in such a short time span and today our country is creating a hisWorld organized Retail. Rajan Malhotra, who is also the first employee of Big Bazaar, joining the organization in early 2“Since beginning, we have kept Big Bazaar as a soft brand, which reflects the India and the Indianess. We believed in grothe society, participating and celebrating all regional and local community festivals, giving customers preferences aboveelse.” Every Big Bazaar is a small family by its own and the head of the family – Karta – is the store manager. Kishore Biyanof the Future Group, has a vast understanding of the consumer’s insight, has inculcated the habit of ‘observing, undcustomers’ behaviour’, in every employee of the group. Future Group is confident of the Indian Retail Story. The Grouslowed down its expansion plans despite the fiscal woes in the economy present today. Future Group plans to have 300 stexpecting revenues of Rs 13,000 crore by year 2011.Big Bazar, is the chain of retail stores of the big banner Pantaloon ReLtd., which in turn is a segment of Kishore Biyani, regulated Future Group of Companies. Moreover the customer friendlyand the organized retailing of products also makes Big Bazar one of the successful retail companies in India. Big Bazar OveBazar, a part of the Pantaloon Group, is a hypermarket offering a huge array of goods of good quality for all at affordableBazar with over 50 outlets in different parts of India, is present in both the metro cities as well as in the small towns. Bigno doubt made a big name in the retail industry of india, moreover shopping here is further made a memorable experiencvaried rates of discounts on products as well as discount vouchers available in a variety of amounts, like INR 2000, INR4000, INR 5000 and INR 10000 on all Big Bazar products and accessories.
VISION The variety of product range in Big Bazar. This large format store comprise of almost everything required by people fromincome groups. It varies from clothing and accessories for all genders like men, women and children, playthings, stationaryfootwear, plastics, home utility products,cosmetics, crockery,home textiles, luggage gift items, other novelties, andproducts and grocery.The added advantage for the customers shopping in Big Bazar is that there are all time discpromotional offers going on in the Big Bazar on its salable product. The significant features of Big Bazar: Shopping in the Ba great experience as one can find almost everything under the same roof. It has different features which caters all the neshoppers. Some of the significant features of Big Bazar are:The Food Bazar or the grocery store with the department seand vegetablesThere is a zone specially meant for the amusement of the kids. Furniture Bazar or a large section defurnitures. Electronics Bazar or the section concerned with electronic goods and cellular phones. [FutureBazaar.com] orshopping portal which makes shopping easier as one can shop many products of Big Bazar at the same price from hregulated customer care telecalling services.The following are few of the sections at Big Bazar: 1. Books 2. Cameras 3. Computers & Peripherals 4. Electronics 5. Gift VHealth and Fitness 7. Home & Kitchen 8. Jewelery 9. Memory & Storage 10. Mobiles & Phones 11. Movies & Videos 12. WWomens wear 14. Mens wear 15. Childrens wear 16. OthersNEW DELHI: Kishore Biyani-promoted Future Group company Pantaloon Retail is hiving off four of its business divisions, incBazaar and Food Bazaar, into independent subsidiaries, keeping the option open for listing them in future.The Board ofRetail today approved setting up of wholly-owned subsidiary companies for Big Bazaar, Food Bazaar, Speciality RetaActivities and Property and Mall Management Division. When contacted, a company official told reporters from Mumbahiving off the different business divisions were done keeping in mind the independent growth each division had achievegives us the option of listing them in future at an appropriate time the official added The company said the respectivewould be transferred on a going concern basis to the respective subsidiaries, subject to receipt of all requisite statutorynecessary approvals. Big Bazaar is Future Groups flagship hypermarket format, while Food Bazaar is a chain of supfocussing on eatable items. Pantaloons speciality retail business activities take care of its various joint ventures such as thewith Lee Cooper and also with French innerwear major, Etam. Under the Property and Mall Management Division, the Futalready has two malls in Mumbai and had recently opened one in Siliguri .Executive SummaryRetailing is emerging as a sunrise industry in India and is presently the largest employer after agriculture. In the year 200of Indian organized retail industry was Rs 28,000 Crores, which was only 3% of the total retailing market. Retailing in its prestarted in the latter half of 20th Century in USA and Europe and today constitutes 20% of US GDP. It is the 3rd largestsegment in USA. Organized retailing in India is projected to grow at the rate of 25%- 30% p.a. and is estimated toastounding Rs 1,00,000 Crores by 2010. The contribution of organized retail is expected to rise from 3% to 9% by the edecade. The projection for the current year ie 2005 is Rs 35,000 Crores. In India, it has been found out that the top 6 citiesfor 66% of total organized retailing. With the metros already been exploited, the focus has now been shifted towardscities. The retail boom, 85% of which has so far been concentrated in the metros is beginning to percolate down to thesesmaller cities and towns. The contribution of these tier-II cities to total organized retailing sales is expected to grow tothe year 2004, Rs 28,000 Crores organized retail industry had Clothing, Textiles & fashion accessories as the highest c(39%), where as health & beauty had a contribution of 2%. Food & Grocery contributed to 18% whereas Pharma Recontribution of 2%. Pantaloon Retail (India) Limited, is India leading retailer that operates multiple retail formats, theoperates over 5 million square feet of retail space, has over 450 stores across 40 cities in India and employs over 18,000 peCompany Profile:-Pantaloon Retail (India) Limited, is Indias leading retailer that operates multiple retail formats in both the value and lifestylof the Indian consumer marker. Headquartered in Mumbai (Bombay), the company operates over 5 million square feespace, has over 450 stores across 40 cities in India and employs over 18,000 people. The companys leading formaPantaloons, a chain of fashion outlets, Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket chathe look, touch and feel of Indian bazaars with aspects of modern retail like choice, convenience and quality and Central,seamless destination malls. Some of its other formats include, Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion Statio10, Bazaar and Star and Sitara. The company also operates an online portal, futurebazaar.com. A subsidiary company, Hom
Solutions Retail (India) Limited, operates Home Town, a large-format home solutions store, Collection i, selling homeproducts and E-Zone focused on catering to the consumer electronics segment. Pantaloon Retail was recently awInternational Retailer of the Year 2007 by the US-based National Retail Federation (NRF) and the Emerging Market RetaYear 2007 at the World Retail Congress held in Barcelona. Pantaloon Retail is the flagship company of Future Group,group catering to the entire Indian consumption space.Future Group ManifestoFuture the word which signifies optimism, growth, achievement, strength, beauty, rewards and perfection. Future encourexplore areas yet unexplored, write rules yet unwritten; create new opportunities and new successes. To strive for a gloribrings to us our strength, our ability to learn, unlearn and re-learn, our ability to evolve. We, in Future Group, will not wFuture to unfold itself but create future scenarios in the consumer space and facilitate consumption because consudevelopment. There by, we will effect socio-economic development for our customers, employees, shareholders, assopartners. Our customers will not just get we hat the eye need, but also get them where, howan dw hen they need. We wpost satisfactory results, we will write success stories. We will not just operate efficiently in the Indian economy, we will evwill not just spot trends, we will set trends by marrying our understanding of the Indian consumer to their needs of tomothis understanding that has helped us succeed. And it is this that will help us succeed in the Future. We shall keep relearnthis process, do just one thing. MISSIONWe share the vision and belief that our customers and stakeholders shall be served only by creating and executing futurein the consumption space leading to economic development. We will be the trendsetters in evolving delivery formats, crearealty, making consumption affordable for all customer segments – for classes and for masses. We shall infuse Indian bconfidence and renewed ambition. We shall be efficient, cost- conscious and committed to quality in whatever we doensure that our positive attitude, sincerity, humility and united determination shall be the driving force to make us successCore Values1.Indian ness : confidence in ourselves.2.Leadership: to be a leader, both in thought and business.3.Respect & Humility: to respect every individual and be humble in our conduct.4.Introspection: leading to purposeful thinking.5.Openness: to be open and receptive to new ideas, knowledge and information.6.Valuing and Nurturing Relationships: to build long term relationships.7.Simplicity & Positivity: Simplicity and positivity in our thought, business and action.8.Adaptability: to be flexible and adaptable, to meet challenges.9.Flow: to respect and understand the universal laws of nature. CODE OF CONDUCTIndian bazaars with the from moms along with their demanding kids to comfort, convenience and senior citizens with tchildren in tow. quality that modern Built on an inclusive platform that welcomes retailing brings. Launched in consumesocio-economic strata, a visit August 2001, Big Bazaar has to Big Bazaar is not only about shopping but now become theabout spending quality time with the family. destination of modern retailing for all sections of Achievements Indian cThere are Big Bazaar is helping India make up lost time. It 80 Big Bazaar stores in 45 is currently in the midst of the fastestincluding expansion of a smaller towns hypermarket like Sangli, format Durgapur, anywhere in Panipat, the world. Palak30 stores Ambala, Meerut, in June 2006, Kolhapur and Big Bazaar will Market Haldia. Attracting over 100 million be emblaretail industry is one of the biggest money customers every year, it has on 120 new spinners in the world, notching updemocratised shopping in India and stores by trillion (Rs. 2.64 crore crore) in turnover become synonymous with great J(Source: Euromonitor Study). In India the sector promotions that offer quality There could is worth Rs. 720,000 crorebillion) products at affordable prices. be several ways of measuring growing at between 11% and 12% annually Spanywhere success of a retail chain. (Source: CII-McKinsey Report). between 30,000 However, if figures were to Despite isize, the business is almost square feet and be taken as the most entirely controlled by the unorganised sector. 150,000 sq
authentic claim of having While organised retail makes up 70% to 80% of feet of retail space, arrived, then Big Bazaarbusiness in developed countries, in India a typical Big Bazaar already there. For more it is pegged at a lowly 2% (Source: Crstore offers over than 100 million people on India’s Retail Industry).This is by far the 160,000 products who walk pastlowest in the world and even far below across categories counters, each year, it is comparable countries in Asia. Inapparel, general now the preferred shopping organised retailing accounts for 20% of all merchandise, food, destinatPanipat to Pallakad, business, while in Indonesia it is 25%, in cosmetics, home needs, Big Bazaar’s tagline, Is se sasta aur aPhilippines 35%, in Thailand it is pegged at electronics, furniture, nahi is a source of cheer and happiness. 40% and in Mareputed to be 50% communications, books, This has been recognised by the numerous (Source: Euromonitor Study). musicpearl jewellery and even value awards that Big Bazaar has won in the past Big Bazaar is credited with bringing organiservices like consumer credit, beauty twelve months. The brand has been adjudged mega retailing to India. The project wgyms and travel services. the Best Value Retail Store and Best Retail conceived as a uniquely Indian hypermarket in a Oweekend evening, a Big Bazaar Destination at the Images Retail Forum for format that combined the look, touch and feel shost to over 10,000 customers – four consecutive years, beginning 2004. CNBC Awaaz, in association with ACNielsen-Owhich conducts a study across 21 major cities and some 10,000 consumers, on their most preferred brands,overwhelmingly for Big Bazaar. Both in 2006 and 2007, Big Bazaar won the Consumer Award for the most preferred largegrocery store. It won the award for Value Retailing and Retail Destination of the Year by Reid & Taylor in 2006 and in thealso won the Reader’s Digest Platinum Trusted Brand Award. History The first Big Bazaar store, with an area of about 24,0feet, opened on VIP Road, Kolkata in August 2001. This was followed by stores in Hyderabad, Bangalore, Mumbai and Guinitial categories on offer were apparel, general merchandise and food. Later, several brands from categories like efurniture, music, communications and books were added to the bouquet of products. Big Bazaar implemented SAP in 2005stores in the most efficient manner that technology could provide. With an increasing number of customers 26 SUPERBRAN value for money: Exchange was an innovative promotion Big Bazaar has launched by Big Bazaar in 2005 to provide also tia customers an opportunity to get rid of their host of well-know junk and in return shop for a wide range of brands wproducts at a discount. exclusive lines In-store communications in Big Bazaar are created especially unique and ratherensure that no one for the store. These misses out on an opportunity to gain from include Levis, Lee special offers, servicearound a trolley Cooper, Wrangler with the product inside, announcing the scheme. and Disney. Not only is this entertainhelps customers pick up the product from the Recent trolley instead of walking up to the rack where Developments it is oBig Bazaar, a part To make sure that non-English speaking of the Future customers don’t feel alienated the Group, iscommunication is also conducted in the driving a number of local language. The communication is always initiativunambiguous and direct. Money, a credit facility is in an Brand Values patronising its stores, it was time for Big Bazaar expstage in several outlets. Cleartrip Brand Big Bazaar stands for delivering value for to reach out to them. To pay tribute andtravel and tours and Talwalkar’s for gym and money. Customer service and shopping comfort them how muchappreciated, health club services have also been launched in are at the core of Big Bazaar’s philosophy. Big Bazaar launbranded credit card. In many stores recently. With a view to bringing Innovation and initiative define its brand associationbank, the Big Bazaar-ICICI value to more people, Big Bazaar is taking its character. It strives to reach out to its customers Bcard made its first appearance in brand to Tier II and Tier III towns as well. Big by imbibing the local flavour and melting2002. Bazaar is also using the huge footfalls to its the local geography. As an extension of its customer relationship stores tconcepts initiatives it also launched Shakti, a credit card and ideas. The customer for housewives, in February 2006. Theresponse this generates unique, for it required no proof of income. helps in refining a launch Today the Big Bazaar-ICICbranded before a full fledged card is one of the largest loyalty credit card roll out. programmes in the country. Big Bazaaragglomeration of multiple, carefully chosen categories and brands. Within the store, Big Bazaar has created several sub cDepot is its books and music section; Staples offers office stationery products while Star & Sitara is a beauty salon. Futuprovides consumer credit for Big Bazaar has recently launched a campaign products purchased within titled Power ofinitiative encourages Big Bazaar. customers to add One Rupee to their bill towards donation to a social cause. Big BazaPromotion makes an equal contribution and donates the With a better understanding Big Bazaar has been credited entireto an NGO called Save the of consumer behaviour across with some of the biggest consumer Children India. This is a sewhich has various cultures and classes, campaigns in the history of Indian retail. been working for the welfare of childreBazaar has put together a In celebration of Republic Day, Big Bazaar marginalised sections of society. stunning range of ovSKUs. Private created a three-day shopping bonanza called Big Bazaar has recently launched a corporate labels of Big Bamong the largest Sabse Saste Teen Din. This has now become a campaign which revolves around a family having apfashion brands in the country. national event that attracts millions of a great time together. The brand anthem These incl– men’s casual wear customers eager to benefit from the once-in-a- Khushiyon se Bhari Jholi connects with the range and
Knighthood – men’s formal wear year smart deals. In January 2008, the three-day customers at an emotional level positionPink & Blue are exclusive garments event generated sales worth over Rs. 240 crore Big Bazaar as part of the happydesigned for modern kids; Srishti, a label of (US$ 60 million) in 80 Big Bazaar stores. ethnic wear for women; Haute N SAugust, India’s Independence Day is www.pantaloon.com fashionable western wear for teenage girls; billed as the MaDay. So successful has Dreamline, a label that caters to an entire this become that to cater to the rush Big Bazaar ranglinen, utensils and crockery and stores in many cities stay open till midnight. THINGS YOU DIDN’T KNOW ABOUT D’tachi,label that offers outstanding Wednesday Bazaar is the Hafte ka Sabse Sasta Din. It was initially created with thedecongesting weekends Big Bazaar and driving footfalls on weekdays. As it transpired, most Big Bazaar stores 2 millionwalk-in each week into now attract as many customers on Big Bazaar stores Wednesdays as they do on weekends. CollecBazaar stores cover nearly 4 A property that offers special million square feet of space benefits and privileges to senior cibuilt around Senior In three days between January 25 and January Citizens Day. 27 2008, Big Bazaar sold over 100,000 paChallenge was created to Jeans and 200,000 shirts reinforce Big Bazaar’s value proposition Big Bazaar has a base of oveloyalty of Is se sasta aur accha kahin nahi. The card members scheme simply offers twice the price difference should theitem More than 160,000 products are sold at at a Big Bazaar store be found to be Big Bazaar stores more than the market p HISTORY AND MILESTONEThe flagship retail chain of the Future Group, is on the verge of achieving a unique milestone in the History of World Rbeing the first hypermarket format in the globe to rollout fastest 101 stores in a short span of seven years. Currently, big98 stores in the country, including the recently opened store in Mysore on September 26 th 2008. Further to this, big bazopening three more stores in a single day. 30th September 2008, which will take the eventual count to 101 stores in thThese three stores opening shortly in Pune (Kalyani Nagar), Cuttack (Darga Bazaar) and Delhi (Rajouri Garden).Big bazabegan in October 2001, when the young, first generation entrepreneur kishore biyani opened the country’s first hypermaoutlet in Kolkatta (then Calcutta). In the same month, two more stores were added – one each in Hyderabad and Mumstarting on a successful sojourn which began the chapter of organized retailing in India. Speaking on this momentous ocremembering the days of conceptualising the hypermarket idea Mr. Kishore Biyani said, “We initially decided to name the“Bazaar” because we had designed the store keeping the Indian mandi style in mind. Since the size of the hypermarket waan average mandis, the thought came to name it as “Big Bazaar”. However, we had freezed on the punch line “Isse SeAchha Kahi Nahi” much before we met the creative agency to design the final logo of Big Bazaar.” Though, Big Bazaar wpurely as a fashion format including apparel, cosmetics, accessory and general merchandise, the first Food Bazaar format was Shop-In-Shop within Big Bazaar in the year 2002. Today, Big Bazaar, with its wide range of products and service offerinthe aspirations of millions of Indians. The journey of Big Bazaar can be divided into two phases – one pre and the other po26th, 2005, when the company rewrote the retail chapter in India, with the introduction of a never-before sales campaSasta Din”. In just one day, almost the whole of India descended at various Big Bazaar stores in the country to shop at theishopping destination. Further, what followed was the time and again rewriting of the Indian Retail experienceunderstanding of the Indian consumers reflected in the products and services offered, creating innovative deals, expandtier II and tier III towns, tying up with branded merchandise to offer exclusive products and services to its customers. Bigpresent today in 59 cities and occupying over 5 million sq.ft. retail space and driving over 110 million footfalls into its sformat is expecting the number of footfall in the stores to increase by over 140 million by this financial year. Over theBiyani for his vision and leadership, and Big Bazaar for its unique proposition to its customers’, have received every pconsumer awards both nationally and internationally. Says Rajan Malhotra, President, Strategy & Convergence, Big Bazaaimportant in our journey is not the number of stores, but the customers’ faith in us. It’s the India and the Indians, which haus, reach this feat in such a short time span and today our country is creating a history in the World organized ReMalhotra, who is also the first employee of Big Bazaar, joining the organization in early 2001 adds, “Since beginning, weBig Bazaar as a soft brand, which reflects the India and the Indianess. We believed in growing with the society, participcelebrating all regional and local community festivals, giving customers preferences above everything else.” Every Big Bsmall family by its own and the head of the family – Karta – is the store manager. Kishore Biyani, the CEO of the Future Grvast understanding of the consumer’s insight, has inculcated the habit of ‘observing, understanding customers’ behaviouemployee of the group. Future Group is confident of the Indian Retail Story. The Group has not slowed down its expandespite the fiscal woes in the economy present today. Future Group plans to have 300 stores and is expecting revenues ofcrore by year 2011.
STRATEGY BUSINESS UNITIndian retail sector is witnessing one of the most hectic marketing activities of all times. The companies are fighting for mand heart share which can finally be converted to market share. There is always a ‘first mover advantage’ in an upcomingIndia, that advantage goes to “Big Bazaar.” It has brought about many changes in the buying habits of people. It has createwhich provide all items under one roof at low rates, or so it claims. In this project, we will study its marketing strategies. Bmain competitors are other business houses which are planning to enter the market as well as long established ‘Kirana’ stofeel threatened by huge retail chains.FOR THE GREAT INDIAN MIDDLE CLASSKishore Biyani led the company’s foray into organized retail with the opening up of the Big Bazaar in the year 2001. It iPantaloon Retail (India) Ltd and caters to the Great Indian Middle Class. It was started as a hypermarket format in Muapprox. 50,000 sqft of space. Its values and missions are to be the best in Value Retailing by providing the cheapest pricesgoes the tag- line “Is se sasta aur achcha kahin nahin”It sells variety of merchandise at affordable rates, the prices of which it claims are lowest in the city. Usually the items atogether for offers as on the lines of Wal-mart and Carrefour and it also offers weekend discounts. It currently operates othan 100 stores and top 25 stores register a cumulative footfall of 30 lakh a month on an average.4Ps OF MARKETING"Marketing" is the promotion of products, especially advertising and branding. Marketing practice tends to be seen asindustry, which includes advertising, distribution and selling. Marketing mix is a deciding factor in formulating marketing tfor the success of a particular brand, commodity or company. The components of marketing mix are:1.Product2.Price3.Promotion4.placePRODUCT:Big Bazaar offers the maximum variety for each category of product. The product is the same in every store in the city butoptions are more in Big Bazaar. Also, the quantity for each product is not limited to large packs only. The commodities sretail chain also includes its “own products” which get a ready distribution network. The own products of Big Bazaar iWorld fashion magazine which is not available anywhere else. So costs are low for such products.PRICE:Price is the critical point in a competitive industry. Big Bazaar works on a low cost model. It considers its discounted priceThere is an average discount of 7-8% on all items in respect to their MRP. Prices of products are low because it is able to sedirectly from the manufacturer. There are huge synergies in terms of bulk purchasing, central warehousing and transThese all factors help the retailer to keep low prices.PLACE:Place means the location of the business. Big Bazaar has always worked on low-cost locations. It targets semi-urban popuits placement. Its strategy is to find a cheap location and it never goes for hot spots in the city. It relied on promotional amake up for unattractive locations. Another strategy used by Big Bazaar to overcome location disadvantage is use of interlaunched a merchandise retailing site www.futurebazaar.com which targets high-end customers ready to use creditpromotion of this website is done through advertisement on Google. The website is put as sponsored link.
PromotionBig Bazaar has huge promotion budgets. The biggest idea behind all advertisements is to make people do bulk shopping. Ttypes of promotional strategies of big bazaar. One is the holistic advertisement which promotes the brand and createsamong people. It is not targeted at promoting each store but only creates an image of Big Bazaar as low-cost shopping ostore has advertised through TV, road shows and also started reality show-typed promotional campaign “The Big Bazaar CPromotions like “Sabse Sasta Din” are a very successful strategy to get footfall. In this products across categories such asfurniture, electronics, utensils and food products at the lowest possible prices, coupled with attractive promotional schemof the most attractive offers being a 20-litre branded microwave oven with grill for Rs 2,499, jeans and trousers for Rs 19laptops for Rs 22,990. Other type of promotion is the particular store oriented promotion which includes speakiloudspeaker in nearby blocks. Leaflets are given in local newspaper. There are promotional efforts even inside the store. BFree type of promotions are very common. Original prices are cut down and new prices are shown, of which customer tnotice. There are loyalty schemes which reward regular clients. Promotion is also done through co branded with icici bank.Big Bazaar’s New Marketing Strategy:Big Bazaar has launched new marketing strategy which is based on Guerrilla Marketing. Guerrilla marketing warfare stratetype of marketing warfare strategy designed to wear-down the enemy by a long series of minor attacks, using principlesand hit-and-run tactics. Attack, retreat, hide, then do it again, and again, until the competitor moves on to other markeguerrilla force is divided into small groups that selectively attack the target at its weak points. In the world of cut throat cocorporate use extension of the same strategy in marketing. Corporate like Coke, Pepsi, etc have been using the same for qtime now and the latest entrant is our very own ‘Future Group’- Big Bazaar, Pantaloons, Future Bazaar, eZone are all pgroup and they are taking on the biggies like Shoppers Stop, Lifestyle, and Tata’s WestsideIn order to do the same, Futhave come up with 3 catchy/cocky and cheeky ad campaigns which surely do catch our eyes and surely one can’t resist apthe same. Keep West-aSide. Make a smart choice!Shoppers! Stop. Make a smart choice!Change Your Lifestyle. Make a smaFuture ExpectationsBig Bazaar is planning to have 300 hypermarkets in the country by 2010- 11. The company may also increase its annual tRs. 13,000 crore by 2010-11, up from Rs. 3,600 crore last fiscal on the back of its expansion. The company has also gonesaying that it would have another 35 stores by the end of its fiscal in June 2009 to take the total number to 135. To achievare targeting a turnover of Rs. 5,000 crore in the current fiscal year and have formulated plans for reaching a figure ofcrore by 2010-11 fiscal. For the expansion, the company would be looking at both the metros andTier I cities, besides Tiesmaller cities.The marketing strategy seems to be perfectly on track as the Big Bazaarhypermarkets had a footfall of 11fiscal and the company is aiming for an increase in the numbers up to 14 crore this year. The average size of a Bhypermarket is 30,000 sq ft to one lakh sq ft.Advertising:The departmental store chain Big Bazaar has launched a commercial sometime back to promote The Great Exchange Ocommercial portrays how customers can exchange any old and broken items (junk) and get new products at a discountedBig Bazaar. The 30 seconds film unfolds through the eyes of a cabbie in a busy city street, he is intrigued by the disruptivewell-dressed office executive carrying a bundle of old newspaper and walking through a crowded place. The cabby thenyoung office going lady in western wear carrying a rusty bucket filled with broken utensils, the cabbie is absolutely confocontinues to follow her with a broken tyre in his hand and comes across another absurd situation of a highly placed exechauffeur driven car with a broken commode on the top of the car. Penultimate situation reveals everybody is heading toBazaar for the exchange offer; the cabbie comes out of the store happy and excited after getting an amazing deal for hiMoving images are interspersed with supers that hi-light the amazing prices a consumer can get for his junk. The sound trtypicalka ba da guys shout as he walks through City Street calling for junk. The month of January and February is generallyaffair in terms of customer footfalls and revenue generation. Innovative, out of the box promotions is one of the effectivdraw customer attention and shore up the revenue. Historically Exchange schemes have been used to induce better sales,a strong appeal with the Indian mindset of getting value even for their junk, states an official release from Big Bazaar.Brand Ambassador:A brand ambassador is a celebrity (or an attractive or interesting person) used to help advertise a product or services. Bhas roped in cricketer Mahendra Singh Dhoni as the Brand Ambassador for its new range of fashion apparel. Dhoni woulda series of advertisements across all media. Dhoni and Big Bazaar have a lot of synergies as the Indian one-day internatiocaptain stands for the aspirations of youths, while Big Bazaar is looked up to by millions of Indians to fulfill their aspirations
way, Big Bazaar make full use of the marketing mix for a new venture which earlier belongs to the unorganized retailkirana stores. Application of the best marketing practices helps Big Bazaar in a great way. MANAGEMENT TEAMMr.KishoreBiyani,(ManagingDirector)Mr.GopikishanBiyani,(WholetimeDirector)Mr.RakeshBiyani,(WholetimeDirector)Mr.VedPrakashArya,(Director)Mr.ShaileshHaribhakti,(IndependentDirector)Mr. S Doreswamy, (Independent Director)Dr.DOKoshy,(IndependentDirector)Ms.AnjuPoddar,(IndependentDirector)Ms.BalaDeshpande,(IndependentDirector)Mr. Anil Harish, (Independent Director)Rakesh Biyani ,CEO - ( Retail )Anshuman Singh, CEO - (Value Fashion )Damodar Mall, CEO - (Incubation & Innovation)Hans Udesh ,CEO - ( General Merchandising )Hemchandra Javeri ,CEO – (Home Solutions Retail (India) Ltd. )Kailash Bhatia ,CEO - ( Integrated Merchandising Group )Madhumati Lele ,CEO - (Services )Rajan Malhotra ,CEO - (Big Bazaar )Sadashiv Nayak CEO - (Food Bazaar)Sanjeev Aggarwal ,CEO –( Pantaloons)Vishnu Prasad ,CEO - (Central & Brand FactorykurbenMoodliar )President- Operations (Value Retailing)Mayur Toshniwal[Head - Operations (North Zone)]Rajesh Joshi[Head - Operations (West Zone)]Rohit Malhotra[Head - Operations (South Zone)]Sandeep Marwaha[Head - Operations (East Zone)]Sanjay Jog(Head - Human Resources)
Ushir Bhatt(Executive Board Member)Atul Takle(Head - Corporate Communications)Prashant Desai[Head - Group IR & New Ventures (PE)]Vinay Shroff(Head - Supply Chain Management) PRODUCTSBig Bazaar is based on 3-C theory of Kishore Biyani. The 3-C symbolize Change, Confidence and Consumption, and accordtheory, "Change and confidence is leading to rise in ConsThey divided Indian customers in three categories: -India OneConsuming class, constitutes only 14% of Indian population. They are upper middle class and most of customers havedisposable income. Initial focus of Big Bazaar.India TwoServing class which includes people like drivers, house-hold helps, office peons, washer-men, etc. For every India One, there aIndia Two and have around 55% of Indian population.India Three Struggling class, remaining population of India,Cannot afford to inspire for better living, have hand-to-mouth existencannot be addressed by current business models.The potential customers of Big Bazaar are India One and India Two. Theinsights were developed by close observation of the target set. The insights that came out were: - The clean and shiny envirmodern retail stores creates the perception that such store are tooexpensive and exclusive, and are not meant for India Two.finds moves and find a lot of comfort in crowds, they are not individualistic. They prefer to bein queues. Indian-ness is noades hi, its about believing in Indian ways of doing things. Indian customers prefer to purchase grains, grams, etc., after toucso its better not to sell inpolythene packs. Big Bazaar has counters where you can touch wheat, rice, sugar, etc., before pAdvertisements about schemes and offers through local newspapers, radio in local languages, inspirescustomer moretraditional ways. The guards, salesman at the Big Bazaar outlets should not look smarter than customer, so they preferntie, etc., in their uniform. Hypermarkets in India should be situated in city unlike western countries where they are locfrom city India Two finds moves and find a lot of comfort in crowds, they are not individualistic. They prefer to bein queuness is not abouts w ades hi, its about believing in Indian ways of doing things.Indian customers prefer to purchase grains,after touching them, so its better not to sell inpolythene packs. Big Bazaar has counters where you can touch wheat, rice, sbefore purchasing. Advertisements about schemes and offers through local newspapers, radio in local languages, inspiremore than the traditional ways. The guards, salesman at the Big Bazaar outlets should not look smarter than customeprefernot to have tie, etc., in their uniform. Hypermarkets in India should be situated in city unlike western countries ware located awayfrom city. Purchased bags / goods should be sealed at check-out as customer can enter and exit multipleIndians, shopping is an entertainment; they come in groups, with families so Big Bazaar shouldoffer something for everyfamily. That also led separate section for clothes, vegetables, food, etc., that is multiple clusters within a bazaar. Dediversity tracing cell to cater local patterns, demands, festivals, as every region of customers has unique demands.advertising: The Essential of Brand Building ProcessAdvertising is an essential component of brand building. The advertisement and brand building is done through varioustechniques used are: - Tag-line: Big Bazaar tag-lines are the key components of advertising. These tag-lines are modifiedto demographic profile of customers. These catch-phrases appeared on hoardings and newspapers in every city where Big Blaunched. Everybody understood and connected easily with these simple one-liners. The catch-liners include "Hindi - Chane k
kaaju", "Bengali - Ruierdame illish", "Hindi - Stall ke bhaw balcony", etcTVAds: Kishore Biyani spends a lot of money in brand building exercise. Big Bazaar commercials are shown on various cIndia. Presently, Fashion@Big Bazaar commercial is aired.Road-sideAdvertisements: Big Bazaar bill-boards are displayed on prime locations in various cities as a brand building exedisplay the catch-phrases now-a-days.RadioAds: This technique is used in cities like Sangli (Tier 1 / Tier 2 cities). Now-a-days, it is replaced by advertisemechannels. This informs customers about all new happenings at Big Bazaar.Fashion Shows: "FASHION @ BIG BAZAAR - Desh Badla, Bhesh Badlo" is the latest invention of the Indian iconic brand. In atake the Fashion to the masses, Big Bazaar, the flagship hypermarket brand of retail chain of Future Group, organized aFashion Show on the streets of Bandra, Mumbai.Brand Endorsement by Celebrity: Big Bazaar is always associated with celebrities for advertising and marketing of its brThe current campaign is starred by Brand Ambassador and Indian Cricket ODI Captain Mahendra Singh Dhoni. EarliReshammiya and Sanath Jaisuriya were associated with Big Bazaar.Factors that Shaped Big Bazaar During its Life CycleThe Big Bazaar brand name is in its growth stage. Pantaloon Group faced various small and large scales troubles in the instage of the brand. Present years are the high growth years in retail sphere as market has high potential to sustain growthare increasing, more and more firms are coming to market, foreign players are entering into retail sector, and pie of organis increasing in retail sector.The factors that shaped the brand during its life cycle are: -Influence of Sarvana Stores Located in Theyagraya Nagar, ChennaiMany people think that Big Bazaar was inspired by Wathe truth is that Kishore Biyani and histeam members are neither inspired by US ways of doing retailing nor they have bmuch. Thecredit for foundation and inspiration goes to Saravana Store, a family-run 25-years-old store, whosephilosophymargin, high turnover. In that store, food, groceries, clothes, everything had aseparate section. It had around 120 peomanage crowd. The single shop was doing business of more thanINR 200 Crore per year. This shop was the template for Big BObserving Customers RegularlyRegular customer feedback is also an influential factor for the success of Big Bazaar. The Big Bazaar has a separate team thacustomers purchasing pattern and how they like or dislike products, how they approach particular products. For example, ustores where the most expensive and catchy item is placed at the front display, Big Bazaar places the "Value for Money" itemout points. Imbibed Entrepreneurial Spirit in OrganizationDecision making power is given to every level of employees at Big Bazaar. Kishore Biyani has given risk- taking power, wexposure of entrepreneurial spirit in every employee. Everybody in Big Bazaar operates with speed and confidence when idecision making.Use of Technology, Scenario-Planning & Story-TellingBig Bazaar planning and design used advance technologies like scenario-planning and story-telling. These techniques wused for store-design layout, store-location selection. The strategy to use user-focused, prototype-based developmentthe brand adapt to the fast-changing external environment.Design ManagementDesign-led thinking helped Big Bazaar to achieve customer -first objective and ultimately led to better financial perfoBazaar strategy to focus on design led to creation of Idiom, an independent design and consultancy firm, based in Bangaloreone of the few organizations in India having economists, ethnographers and sociologists working across various teams aDesign Management team.
Basic ProductProduct aggregation and suppliesFresh Products -FruitsVegetablesNon VegBakeryDairy & Frozen ProductsStaplesProcessed FoodBeveragesPersonal CareHome CareFoodland Associates Foodland Associates are independent retailers who source their products from us and avail of retail solutioncomprehensive or in part. They are classified into Bronze, Silver, Gold or Platinum Associates, depending upon the scale oand level of engagement.Needless to add, we offer our associates unique advantages exclusive promotions, consumeSeminar on Logistics &Supply Chain Management, IASMS, BANGALORE, INDIA28 schemes, loyalty bonus etc. To become aAssociate, all you need to do is to get in touch with our Sales Representatives to avail of the multiple benefits. MERGER OR JOINT VENTUREPantaloon Retail (India) disclosed a marginal decline in standalone net profit for the quarter ended March 2010. During ththe profit of the company declined 5.47% to Rs 325.00 million from Rs 343.80 million in the same quarter previous yearfor the quarter declined 63.33% to Rs 6,021 million, while total income for the quarter fell 63.31% to Rs 6,031.30 milcompared with the prior year period. It posted earnings of Rs 1.58 a share during the quarter, registering 19.66% deprevious year period.Issue of warrantsPantaloon Retail (India) Ltd has approved issuance of 1,00,00,000 Warrants at a price of Rs. 400/- per Warrants aggrega400,00,00,000/- to one of the Promoter Group entity with an option to the Warrant holders to acquire same numbershares within a period of 18 months pursuant to provisions of Chapter VII of Securities & Exchange Board of India (issue oDisclosure Requirements) Regulations, 2009 relating to Preferential issues.JV with Uk based companyPantaloon Retail has entered into a 50:50 joint venture (JV) with C & J Clark International, a company incorporated in USingle brand retailing of the `Clarks` branded footwear and allied products. The joint venture would also be engaged inbusiness of Clarksbranded products in India. The joint venture activities would be carried out by a separate joint venture company. Withventure, Pantaloon Retail has taken a strategic business decision to enlarge its business activities and have a better footprias well as wholesale of branded footwear and allied products in India.Merge of consumer business with itselfRetail major Pantaloon Retail (India) will merge the consumer durable business of its subsidiary with itself. The board hasdemerger of consumer durables and home improvementbusiness from Home Solutions Retail (India). Following the demerger, the said units would be merged with Pantaloon RetFurther, the company would acquire the sports retail business from its wholly-owned subsidiary, Winner Sports.Company Profile
Pantaloon Retail (India) Limited, is India’s leading retailer that operates multiple retail formats in both the value ansegment of the Indian consumer market. Headquartered in Mumbai (Bombay), the company operates over 16 million squretail space, has over 1000 stores across 73 cities in India and employs over 30,000 people.The company’s leading formaPantaloons, a chain of fashion outlets, Big Bazaar, a uniquely Indian hypermarket chain, Food Bazaar, a supermarket chathe look, touch and feel of Indian bazaars with aspects of modern retail like choice, convenience and quality and Central,seamless destination malls. Some of its other formats include Brand Factory, Blue Sky, aLL, Top 10 and Star and Sitara. Theoperates 120 Big Bazaar stores, 170 Food Bazaar stores, among other formats, in over 70 cities across the country, cooperational retail space of over 6 million square feet. As a focussed entity driving the growth of the groups value retaiFuture Value Retail Limited will continue to deliver more value to its customers, supply partners, stakeholders and coacross the country and shape the growth of modern retail in India. CORPORATE SOCIAL RESPONSIBILITYFor long, we have resisted the temptation of setting up a corporate social responsibility department that has a select few eworking with a defined budget and regularly speaks out on the ‘good work’ that it does. The primary reason for thorganization, we could never find a difference in the work we do every day and the ‘good work’ that a responsible orgasupposed to do. It has always been our belief that being an ethically, socially and environmentally responsible organizabest and the most efficient way to earn the trust and goodwill of millions of customers and stakeholders. As a sustainablthat nurtures its supply partners, which cares for its community, empowers its employees and strives to be a positive chain society, we are confident that your company will be the one which retains the trust of society and builds a strong founlong-term, sustainable growth. Beginning this year, we implemented a 52-week calendar of events, to celebrate within Cereflects every Indian festival, sporting, lifestyle and leisure events from around the world as well as social causes like EnDay. There is little to distinguish 14-year old Mohammad Arafat Shaikh and 13-year old Bidal Shaikh from the rest of tMumbai’s Nagpada area. Except that they have a passion for basketball and are part of the US-based NationalAssociation’s (NBA) Basketball without Borders initiative. Supported by Spalding, the sports brand retailed and marketedSports, the initiative uses basketball to influence positive social change and features current and former NBA playerspersonnel working as camp coaches.WE ARE BEACON OF HOPE FOR THOSE IN ADVERSITY In his native village, Sethu Raghunatha Pattinam situated 433 kilometers from Chennai, 23-year old M Veerappan could hato do what the rest of the 300 villagers do – farming and wood cutting. His father barely earned Rs 150 a day and with a mtwo sisters to care for, Veerappan chose to stand out. On completing his schooling, Veerappan earned himself a delectronics from a nearby institute in Karamathur. It also happens to be one of the centers Pantaloon Retail recruits froVeerappan is an assistant maintenance officer at Pantaloons store in Chennai. Veerappan is among the thousands of erecruited by the company through rural recruitment drives in association with rural educational institutes, NGOs and gobodies. Initiatives like the Rural Employment Generation Mission, Government of Andhra Pradesh alone has helped us rethan 500 people. The company has also been an active recruiter in the North East. It has also tied-up with Chennai-basCareer Creators which brings together young mothers and housewives willing to take up flexi-time and part-time jobs atThese form part of our initiatives to act as positive change agents of society, and spread the benifits of modern retail in arwe do not have business operations. Those recruited through these channels form a loyal and committed work force, willinwith the organization. As an organization, we firmly believe that talent is our biggest asset and to continuously identify, ntrain talented professionals, we have set up a specialized unit, Future Learning & Development. This has set up 3equipped with the latest training tools and curriculum in Ahmedabad, Bangalore and Kolkata to train existing manpownew talent and also provide training solutions to other companies.We have also tied up with Indira Gandhi National Open(IGNOU) to offer retail industry focused certified courses through these campuses. The vision is to make more Indians ewith a specific focus on socially and economically disadvantaged sections of the society. The company leverages itexperience and approach to learning to bridge the skill gap and provide trained manpower to group companies as windustry. We continue to make a conscious effort as an employer to be as widely representative of the country as a whoincludes geography, religion, community, caste and socioeconomic class. Our goal is to provide quality training and emploall those who might choose to work with us.
WE ARE EMPOWERING WOMEN ENTREPRENEURS AND PRODUCERS We believe that it is our responsibility to engage more meaningfully with communities residing in and around many of ourwell as provide those without the means to improve their economic and social well being. Initiatives are today focused onplatform and providing distribution and market outreach to womenled organizations engaged in producing food producand handicrafts. These not only help us act as positive change agents for society, but also provide ethnic and traditionathat urban India so often craves for.An immensely successful initiative of this nature was ‘Yatra’, a joint effort betweenand Yashaswini, a self help group platform. The purpose was to encourage the efforts of underprivileged women tradeestablishing a channel for them to sell their produce in a profitable manner.Our interactions with several women’s neMaharashtra resulted in us establishing a connect with about 200 such groups from remote villages. More than 300 wothese groups were offered a chance to sell their produce during special promotions in front of Big Bazaar stores. The idserve our customers, in an authentic manner, the rich, diverse traditional cuisine of Maharashtra. These items were specfrom each geographical region within the state. Spread over 4 days and with the assistance of volunteers from Yashaswiniour own staff, Yatra turned out to an extremely popular event at all the Big Bazaar stores. Sales increased throughout thesaw the women sellers take home at least as much as Rs.500 each on all 4 days. A sum total of 19 Big Bazaar stores, acrosparticipated and shared the platform with at least 40 groups each time. An intresting outcome of this activity has also beproducts out of these Yatras were selected as winner products which are now being regularly stocked at Big Bazaar outleinitiatives with self help groups and local indigenous communities have been initiated in the states of Assam, Karnataka, KDelhi and have met with very encouraging response from customers and the communities we serve In addition, almostBazaar and Food Bazaar store now has a customer advisory board. These advisory boards are composed of well known peor respected individuals who live in and around the stores. These customer advisory boards regularly meet to review andstore managers and the staff on improving customer experience, product assortment and social initiatives.
FINANCIAL HIGHLIGHTSThe operating results of the company for the year under review are asfollows 2004-05 2003-04PARTICULARS 6,645.41 3320.47 1,333.33 879.28Profit before depreciation & tax 5,312.08 2441.19Less: Depreciation 3.20 7.46Profit before tax 1,453.77 455.87Less: Earlier Years Income Tax 3,855.11 1977.86Less: Provision for tax 3,808.13 3424.99Profit after tax 7,663.23 5402.86Profit brought forward from previous yearSurplus available for appropriation 549.94 287.06APPROPRIATION 77.14 37.52Proposed Dividend 385.51 98.89Provision for dividend tax 6,650.64 4979.38Transfer to general reservesBalance carried to Balance Sheet
BALANCE SHEET AS AT JUNE 30, 2010 Schedule As At As At June 30,2010 June 30,2009 (` in Crores) (` in Crores)SOURCES OF FUNDS : Shareholders’ Funds Share Capital 1 41.23 38.06 Share Capital (Pending Allotment) 19B (2) 64.66 - Equity Warrants 19B 13(b) 122.88 22.88 Reserves & Surplus 2 2527.48 2211.48 2756.25 2272.42 Loan Funds Secured Loans 3 1236.03 2525.53 Unsecured Loans 4 150.19 324.86 1386.22 2850.39 Deferred Tax Liability 72.43 116.10 4214.90 5238.91APPLICATION OF FUNDS : Fixed Assets Gross Block 5 1417.04 1876.45 Less : Depreciation 294.89 307.69 Net Block 1122.15 1568.76 Capital work-in-progress 59.68 345.23 Investments 6 2002.91 954.03 Current Assets, Loans & Advances Inventories 7 1270.67 1787.84 Sundry Debtors 8 123.57 177.25 Cash & Bank Balances 9 100.54 109.34 Loans & Advances 10 421.68 1202.56 Other Current Assets 1.34 5.75 1917.80 3282.74 Less : Current Liabilities & Provisions Current Liabilities 11 863.42 891.39 Provisions 12 24.22 20.46 887.64 911.85 Net Current Assets 1030.16 2370.89 4214.90 5238.91SIGNIFICANT ACCOUNTING POLICIES & NOTES TO ACCOUNTS 19The Schedules referred to above form an integral part of the Balance SheetAs per our Report of even date attached For and on behalf of Board of DirectorsFor NGS & CO.Chartered Accountants Shailesh Haribhakti Kishore Biyani Rakesh Biyani Chairman Managing Director Wholetime Director Vijay Biyani Kailash Bhatia Gopikishan Biyani Wholetime Director Wholetime Director Director Dr. Darlie O. Koshy S. Doreswamy V. K. Chopra Director Director Director C. P. Toshniwal Deepak Tanna Chief Financial Ofﬁcer Company Secretary
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED JUNE 30, 2010 Schedule 2009-10 2008-09 (` in Crores) (` in Crores)INCOME Sales & Operating Income 13 5934.37 6341.70 Other Income 14 84.63 6.06 6019.00 6347.76EXPENDITURE Cost of goods consumed & sold 15 4062.53 4429.95 Personnel cost 16 279.58 274.26 Operating & other expenses 17 1000.20 969.05 Finance Charges 18 288.24 318.22 Depreciation 5 161.88 140.05 5792.43 6131.53Proﬁt before taxes and exceptional item 226.57 216.23 Less : Exceptional Item 19B (2) 12.93 -Proﬁt Before Tax 213.64 216.23 Less : Adjustment for earlier year‟s Income Tax (3.17) 0.27 Less : Tax Expenses 19B (16) 37.25 75.38Proﬁt After Tax 179.56 140.58 Add : Balance brought forward 380.54 267.56 Less : Dividend and dividend tax paid to Qualiﬁed 1.13 - Institutional BuyersAvailable for Appropriation 558.97 408.14 Debenture Redemption Reserve 25.00 - Transfer to General Reserve 17.95 14.06 Proposed Dividend 17.13 11.57 Proposed Dividend on Preference Share 0.00 - Tax on Proposed Dividend 2.91 1.97 Balance carried to Balance Sheet 495.98 380.54 558.97 408.14Earnings Per Share in ` (Face value ` 2)Basic & Diluted - Equity 8.46 7.94Basic & Diluted - Class B series 1 8.56 8.04Refer Note No. 20 of schedule 19BSIGNIFICANT ACCOUNTING POLICIES & NOTES TO ACCOUNTS 19The Schedules referred to above form an integral part of the Proﬁt & Loss AccountAs per our Report of even date attached For and on behalf of Board of DirectorsFor NGS & CO.Chartered Accountants Shailesh Haribhakti Kishore Biyani Rakesh Biyani Chairman Managing Director Wholetime Director Vijay Biyani Kailash Bhatia Gopikishan Biyani Wholetime Director Wholetime Director Director Dr. Darlie O. Koshy S. Doreswamy V. K. Chopra Director Director Director C. P. Toshniwal Deepak Tanna Chief Financial Ofﬁcer Company Secretary
SCHEDULES TO BALANCE SHEET AS AT JUNE 30, 2010 As At June As At June 30,2010 30,2009 (` in Crores) (` in Crores)SCHEDULE 1 : SHARE CAPITAL Authorised 25,00,00,000 Equity Shares of ` 2/- each. 50.00 50.00 70,00000 Preference Share of ` 100/- each 70.00 - 5,00,00,000 Class B Series 1 Shares of ` 2/- each 10.00 10.00 130.00 60.00 Issued 19,02,25,121 (17,44,02,921) Equity Shares of ` 2/-each fully paid up 38.04 34.88 1,59,29,152 Class B Series 1 Shares as Bonus of ` 2/- each fully paid 3.19 3.18 41.23 38.06 Subscribed & Paid Up 19,02,13,721 (17,43,91,521) Equity Shares of ` 2/- each fully paid 38.04 34.88 1,59,29,152 Class B Series 1 shares of ` 2/-each fully paid 3.19 3.18 (of the above class B series 1 shares 1,59,29,152 shares allotted as fully paid up by way of capitalisation of share premium) 41.23 38.06SCHEDULE 2 : RESERVES & SURPLUS Capital Reserve Balance, at beginning of the year 63.26 - Transfer on forfeiture of equity warrants - 63.26 63.26 63.26 Share Premium Balance, at beginning of the year 1,717.71 1,448.04 Add : Premium received during the year 496.81 273.31 Less : Utilised for share issue expenses 9.16 0.46 Less : Utilised for Bonus shares Issued - 3.18 Less : Utilised as per demerger scheme (Note No. 19(B)(2) ) 330.04 - 1,875.32 1,717.71 Debenture Redemtpiton Reserve Balance, at beginning of the year - - Transfer From Proﬁt & Loss Account 25.00 - 25.00 - General Reserve Balance, at beginning of the year 49.97 35.91 Add : Transfer from Proﬁt & Loss Account 17.95 14.06 67.92 49.97 Proﬁt and Loss Account 495.98 380.54 2,527.48 2,211.48SCHEDULE 3 : SECURED LOANS (1) Non Convertible Debentures 500.00 - (2) Term Loans From Banks a) Foreign Currency Loans 179.09 97.30 b) Rupee Loans 262.58 1,671.21 (3) Working Capital Loans From Banks a) Foreign Currency Loans - 82.39 b) Rupee Loan 292.60 487.32 c) Commercial Paper - 185.00 (4) Hire Purchase 1.76 2.31 1,236.03 2,525.53SCHEDULE 4 : UNSECURED LOANS Long Term Loans from Banks - 299.85 Debenture application money - 25.00 Short Term Loans from Banks 99.61 - Public Deposits - 0.01 Inter Corporate Deposits 50.58 - 150.19 324.86
SCHEDULES TO BALANCE SHEET AS AT JUNE 30, 2010 Schedule 5 : FIXED ASSETS (` in Crores) GROSS BLOCK DEPRECIATION NET BLOCK Particular As at Additions Deductions As Up to Adjustment for Depreciatio Up As As at s 01/07/2009 Adjustment* / Adjustment* / 30/06/201 at 01/07/2009 the year* n the for 30/06/201 to 30/06/201 at 30/06/2009 0 year 0 0 Freehold Land 4.83 - - 4.83 - - - - 4.83 4.83 Leasehold Land 1.17 - - 1.17 0.14 - 0.02 0.16 1.01 1.03 Building & leasehold improvements 236.95 258.08 293.72 201.31 32.00 22.62 28.73 38.11 163.20 204.95 Plant & Machinery 58.67 13.68 41.58 30.77 8.93 4.54 2.42 6.81 23.96 49.74 Ofﬁce Equipments 35.23 12.74 23.98 23.99 6.19 3.17 2.31 5.33 18.66 29.04 Computers & Software 386.56 103.96 127.37 363.15 106.10 33.68 56.98 129.40 233.75 280.46 Furniture & Fittings 657.40 343.98 538.36 463.02 101.82 69.60 43.30 75.52 387.50 555.58 Electrical Installations 357.80 224.91 315.15 267.56 38.65 28.83 21.44 31.26 236.30 319.15 Vehicles 3.99 0.52 1.01 3.50 2.11 0.58 0.34 1.87 1.63 1.88 Air Conditioners 133.85 72.34 148.45 57.74 11.75 11.66 6.34 6.43 51.31 122.10 Total 1876.45 1030.21 1489.62 1417.04 307.69 174.68 161.88 294.89 1122.15 1568.76 Previous Year 1368.76 521.74 14.05 1876.45 170.59 2.95 140.05 307.69 1568.76 1198.17 * Refer note no ( 19B (2), 19B (3) & 19B (27))
SCHEDULES TO BALANCE SHEET AS AT JUNE 30, 2010 As At June As At June 30,2010 30,2009 (` in Crores) (` in Crores)SCHEDULE 6 : INVESTMENTS LONG TERM INVESTMENT Non-Trade In Equity Shares - Quoted, Fully paid up of ` 10/- each unless otherwise stated Subsidiary Company 3,47,79,999 Equity Shares of Future Capital Holdings Limited 59.53 59.53 Others 5,631 Equity shares of Andhra Bank Limited 0.05 0.05 49,37,935 Equity shares of Galaxy Entertainment Corporation Limited 19.03 19.03 In Equity Shares - Unquoted, Fully paid up ` 10/- each unless otherwise stated Subsidiary Companies 5,100 Equity Shares of CIG Infrastructure Private Limited 0.01 0.01 3,51,00,000 Equity Shares of Future Agrovet Limited 35.10 35.10 1,91,60,000 Equity Shares of Futurebazaar India Limited 19.16 19.16 NIL (1,40,00,000) Equity Shares of Future Brands Limited - 14.00 NIL (50,000) Equity Shares of Future Consumer Enterprises Limited - 0.05 NIL (50,000) Equity Shares of Future Consumer Products Limited - 0.05 1,69,98,000 Equity Shares of Future E-Commerce Infrastructure Limited 17.00 17.00 4,46,97,790 Equity Shares of Future Knowledge Services Limited 44.70 44.70 2,82,65,550 Equity Shares of Future Learning and Development Limited 28.26 28.26 2,74,62,962 (2,45,00,000) Equity Shares of Future Supply Chain 64.50 24.50 Solutions Limited (Formerly Known as Future Logistic Solutions Limited) NIL (50,000) Equity Shares of Future Mall Management Limited - 0.05 (Note No. 19B (3)) 21,06,062 Equity Shares of Future Media (India) Limited 11.38 11.38 NIL (50,000) Equity Shares of Future Merchandising Limited - 0.05 55,50,000 Equity Shares of Future Mobile and Accessories Limited 5.55 5.55 6,68,624 (2,01,51,095) Equity shares of Home Solutions Retail (India) 3.61 165.35 Limited (Note No. 19B (2)) 6,64,99,912 (21,00,000) Equity Shares of Future Value Retail Limited 978.50 28.50 (Formerly Known as Pantaloon Future Ventures Limited) 2,40,000 Equity Shares of Winners Sports Limited 27.38 27.38 (Formerly Known as Winner Sports Private Limited) In Preference Shares - Unquoted, Fully paid up of `10/-each unless otherise stated Subsidiary Companies 7,60,000 0.01% Non-Cumulative Redeemable Preference Shares 0.76 0.76 of Winners Sports Limited (Formerly Known as Winner Sports Private Limited)
SCHEDULES TO BALANCE SHEET AS AT JUNE 30, 2010 As At June As At June 30,2010 30,2009 (` in Crores) (` in Crores) In Equity Shares - Unquoted, Fully paid up of ` 10/-each unless otherwise stated Joint Venture Companies 22,03,500 Equity Shares of Apollo Design Apparel Parks Limited 66.86 66.86 1,00,00,000 Equity Shares of Future Axiom Telecom Limited 10.00 10.00 7,90,50,000 (5,61,00,000) Equity Shares of Future Generali India 79.05 56.10 Insurance Company Limited 17,90,10,000 (12,94,67,500) Equity Shares of Future Generali India 179.01 129.47 Life Insurance Company Limited 21,19,394(16,50,000) Equity Shares of Staples Future Ofﬁce Products 27.91 13.74 Private Limited 22,81,500 Equity Shares of Goldmohur Design and Apparel Park Limited 62.88 62.88 NIL (25,62,000) Equity Shares of Gupta Infrastructure (India) Private - 7.68 Limited (Note No.19B (3)) 8,66,12,431 (5,08,34,473) Equity Shares of Sain Advisory Services 86.61 50.83 Private Limited 3,81,70,000 (2,71,45,000) Equity Shares of Shendra Advisory Services 38.17 27.14 Private Limited 1,00,000 Equity Shares of Talwalkars Pantaloon Fitness Private Limited 1.00 1.00 of ` 100/- each Others Equity Shares - Unquoted, Fully paid up of ` 10/-each unless otherwise stated 48,281 Equity Shares of Foot-Mart Retail India Limited 0.08 0.08 20,000 (4,000) Equity Shares of Kalyan Janata Sahakari Bank Limited of 0.05 0.01 ` 25/- each 35,78,278 Equity Shares of Pan India Food Solutions Private Limited 3.58 3.58 5,79,771 Equity Shares of Planet Retail Holdings Private Limited 2.90 2.90 5 Shares of Y.A. Chunawala Industrial Co-op Society Limited. (` 250) - - In Government and Other Securities - Unquoted National Saving Certiﬁcates (Deposited with Sales Tax Authorities) 0.01 0.01 Share Application Money Pending Allotment 130.28 21.29 2,002.91 954.03 Aggregate Book Value - Quoted 78.61 78.61 - Unquoted 1,924.30 875.42 Aggregate Market Value - Quoted 730.54 928.58SCHEDULE 7 : INVENTORIES Packing Materials, Branding Material and Stores & Spares 21.12 22.31 Raw Materials 4.59 12.31 Semi ﬁnished goods 5.33 4.81 Finished Goods (Including In-Transit) 1,239.63 1,748.41 1,270.67 1,787.84
SCHEDULES TO BALANCE SHEET AS AT JUNE 30, 2010 As At June As At June 30,2010 30,2009 (` in Crores) (` in Crores)SCHEDULE 8 : SUNDRY DEBTORS(Unsecured) (a) Debts due for more than six months Considered Good 4.05 21.87 Considered Doubtful 0.48 1.76 4.53 23.63 Less : Provision for Doubtful Debts 0.48 1.76 4.05 21.87 (b) Other Debts : Considered Good 119.52 155.38 123.57 177.25SCHEDULE 9 : CASH & BANK BALANCES Cash in Hand 4.44 8.87 Balance with Scheduled Banks : - in Current Accounts (including in transit) 80.02 96.04 - in Fixed Deposit Accounts (Including Margin Money Deposit of 15.74 4.15 ` 5.89 Crores, 2009: ` 4.12 Crores) - in Unpaid Dividend Accounts 0.34 0.28 100.54 109.34SCHEDULE 10 : LOANS & ADVANCES(Unsecured & Considered good) Inter Corporate Deposits 19.57 5.55 Advances Recoverable in cash or in kind for value to be received # 223.09 365.40 Deposits 175.20 816.33 Payments/Deductions of Income Tax ( Net of Provisions) 3.82 15.28 421.68 1,202.56SCHEDULE 11 : LIABILITIES Acceptances 294.05 413.22 Sundry Creditors* 446.49 385.95 Advances from Customer* 33.61 10.73 Other Liabilities @ 59.52 81.14 Interest accrued but not due 29.41 0.07 Unpaid Dividend 0.34 0.28 863.42 891.39SCHEDULE 12 : PROVISIONS Proposed Dividend 17.13 11.57 Dividend Tax 2.91 1.97 Gratuity & Leave Encashment 4.18 6.92 24.22 20.46 # Includes ` 0.15 Crores (previous year ` 2.77 Crores) Receivable from Subsidiaries * Includes ` 36.63 Crores (previous year ` 180.67 Crores) Payables to Subsidiaries. @ Includes ` 0.62 Crores (previous year ` 4.15 Crores) Payable to Subsidiaries.
SCHEDULES TO PROFIT & LOSS ACCOUNT FOR YEAR ENDED JUNE 30, 2010 2009-10 2008-09 (` in Crores) (` in Crores)SCHEDULE 13 : SALES & OPERATING INCOME Sales 6088.36 6423.07 Less: VAT / Sales Tax 382.29 319.72 5706.07 6103.35 Other Operating Income 228.30 238.35 5934.37 6341.70SCHEDULE 14 : OTHER INCOME Dividend from Other Investments 1.81 0.15 Proﬁt on Sale of Investments 75.10 0.20 Miscellaneous Income 7.72 5.71 84.63 6.06SCHEDULE 15 : COST OF GOODS CONSUMED & SOLD Opening Stock Raw materials 12.31 10.22 Semi ﬁnished goods 4.81 6.94 Finished goods (Note No.19B (2)) 2024.03 1393.17 2041.15 1410.33 Add : Purchase Raw materials 27.76 44.01 Finished goods 3243.17 4741.14 3270.93 4785.15 Less : Closing Stock Raw materials 4.59 12.31 Semi ﬁnished goods 5.33 4.81 Finished goods 1239.63 1748.41 1249.55 1765.53 4062.53 4429.95SCHEDULE 16 : PERSONNEL COST Salaries, Wages & Bonus 253.83 246.58 Welfare expenses 10.66 11.26 Contribution to Provident & Other Funds 12.76 14.25 Gratuity and Leave Encashment 2.33 3.67 279.58 275.76
SCHEDULES TO PROFIT & LOSS ACCOUNT FOR YEAR ENDED JUNE 30, 2010 2009-10 2008-09 (` in Crores) (` in Crores)SCHEDULE 17 : OPERATING & OTHER EXPENSES Labour Charges - 14.82 Packing Material 6 26.74 P Stores & Spares A 0.24 Branding Material N 1.39 T Power & Fuel A 83.20 L Repairs & Maintenance O Building O 0.29 2.34 N Plant & Machinery 1.12 1.15 R Others 14.47 E 13.13 T 15.88 A Rent including lease Rentals I 477.07 L Mall Maintenance Charges 77.54 ( Rates & Taxes 7.24 I Donation N 0.25 D Insurance I 4.46 A Auditors‟ Remuneration 0.31 ) Commission 11.32 L Advertisement & Marketing I 149.52 M Directors Sitting Fees 0.16 I Directors Commission T 0.60 E Loss on Sale/Discarded of Fixed Assets (Net) D 8.38 Provision for Doubtful Debts - Other Expenses 121.08 1000.20SCHEDULE 18 : FINANCE CHARGES Interest : On Debenture and Fixed Loans 149.24 Others 101.69 Discounting and Other Charges 48.86 Exchange Fluctuation Loss 1.25 301.04 Less : Interest Income * 0.07 On ﬁxed deposits 12.73 Others 12.80 288.24 1.32 * Tax deducted at Source