1. Internship Report on
“STUDY ON ATTRITION AT RELIANCE RETAIL, BANGALORE”
BY
SANNITH
USN: 4SX13MBA24
Submitted to
VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELAGAVI
In partial fulfilment of the requirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
Under the guidance of
INTERNAL GUIDE EXTERNAL GUIDE
Dr.VISHAL SAMARTHA MR.NAGENDRA KUMAR
PROFESSOR MBA MANAGER-HUMAN RESOURCE
Department of Business Administration
SAHYADRI COLLEGE OF ENGINEERNG AND MANAGEMENT
“Sahyadri Campus” N.H.48, Adyar, Mangalore-575007
(2013-2015)

4. DECLARATION
I, SANNITH hereby declare that the Internship report entitled “STUDY ON ATTIRITION AT
RELIANCE” with reference to “RELIANCE REATIL,BANGALORE” prepared by me under
the guidance of DR,VISHAL SAMARTHA,Professor of Business Administration, Sahyadri
College of Engineering and Management and external assistance by MR.NAGENDRA
KUMAR, Manager-HR, RELIANCE RETAIL Ltd,BANGALORE.
I also declare that this Internship work is towards the partial fulfilment of the university
regulations for the award of degree of Master of Business Administration by Visvesvaraya
Technological University, Belagavi.
I have undergone a summer project for a period of Twelve weeks. I further declare that this
project is based on the original study undertaken by me and has not been submitted for the
award of any degree/diploma from any other University/Institution.
Place: Signature of the student
Date:
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5. ACKNOWLEDGEMENT
As I present this report, I take this opportunity to express my gratitude to all those who extended
their co-operation to me in bringing out this project report.
I extend my profound and sincere gratitude to Dr. Umesh M Bhushi, Principal, Sahyadri
College of Engineering and Management, Adyar, for giving me an opportunity to undertake this
project.
I also extend my sincere gratitude to Dr.APAchar, Director, Department of Business
Administration, Sahyadri College of Engineering and Management. I am very grateful for the
support and guidance provided by my guide Dr.VishalSamartha without her contribution,
support and guidance, it would not have been possible for me to complete project successfully.
I would like to express my profound gratitude to Mr. Nagendra Kumar, Manager-HR,
Reliance retail, Bangalore, for giving me an opportunity to do my project in the establishment
under his guidance.
Finally I would like to thank my parents and my friends for their infinite support during
my project, and for those who have directly or indirectly helped me in doing my project.
SANNITH
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6. Contents
1.0 INTRODUCTION ABOUT THE INTERNSHIP.......................................................................................13
1.1 TOPIC CHOSEN FOR THE STUDY......................................................................................................13
1.2 Statement of the problem...............................................................................................................13
1.3 OBJECTIVES OF THE STUDY..............................................................................................................13
1.4 SCOPE OF THE STUDY......................................................................................................................13
1.5 METHODOLOGY ADOPTED..............................................................................................................14
1.5.1Primary data.........................................................................................................................14
1.5.2 Secondary data....................................................................................................................14
1.6 LITERATURE REVIEW........................................................................................................................14
1.7 Limitations of the study..................................................................................................................16
2.0.1 History of Retail Industry..............................................................................................................19
2.0.2 Meaning of Retail.........................................................................................................................19
2.0.3 Two types of Retail Industry.........................................................................................................19
2.0.4 Challenges facing today’s Retail Industry.....................................................................................19
2.0.5 Indian Retail Industry...................................................................................................................20
2.0.6 Market Dynamics........................................................................................................................21
2.0.7 Retail classification ...................................................................................................22
2.0.8 Key drivers of the Indian Retail Industry......................................................................................22
2.0.9 Bottlenecks..................................................................................................................................23
2.0.10 Emerging sectors/trends in Indian retailing...............................................................................23
2.0.11Market size of Indian retail industry...........................................................................................24
2.0.12 Phased growth of Indian retail Industry.....................................................................................28
2.0.13 Challenges faced by Indian retail Industry.................................................................................29
2.0.14 Future prospects........................................................................................................................29
2.1.1 Major Milestones.........................................................................................................................31
2.1.2 Vision...........................................................................................................................................41
2.1.3 Mission.........................................................................................................................................41
2.1.4 Products/ services:.......................................................................................................................42
2.1.5 Services........................................................................................................................................43
2.1.6 Design and manufacturing...........................................................................................................43
2.1.7 Areas of operation.......................................................................................................................44
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7. 2.1.8 Infrastructure facilities:................................................................................................................45
2.1.9 SWOT ANALYSIS............................................................................................................................46
2.1.10 Competitors...............................................................................................................................47
2.1.11 Achievements and projects........................................................................................................48
3.1 Meaning and definition of attrition.................................................................................................55
3.2 Calculating attrition rate.................................................................................................................55
3.2.1 Periodic attrition..................................................................................................................56
3.2.2 Annualized attrition.............................................................................................................56
3.3 MARKET DRIVEN ANNALYZING ATTRITION......................................................................................56
3.3.1 Infant mortality....................................................................................................................56
3.3.2 Launch paid..........................................................................................................................57
3.3.3 Critical exit...........................................................................................................................57
3.3.4 Weak link.............................................................................................................................57
3.3.5 Standardization....................................................................................................................57
3.3.6 Objectives of the attrition:...................................................................................................57
3.4 The reason for improving attrition:.................................................................................................58
3.4.1 Skill development................................................................................................................58
3.4.2 Communication...................................................................................................................58
3.4.3 Promotion/progression.......................................................................................................59
3.4.5 MANAGEMENT STYLE..........................................................................................................59
3.4.6 Work life balance.................................................................................................................59
3.4.7 Employee benefits...............................................................................................................60
3.4.8 Work place...........................................................................................................................60
3.4.9 Exit interview.......................................................................................................................60
5.0 FINDINGS.........................................................................................................................................83
5.1 Suggestion.......................................................................................................................................84
5.2 Conclusion.......................................................................................................................................85
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8. LIST OF TABLES
LIST OF TABLES
TABLE
NUMBER SUBJECT
PAGE
NO.
TABLE 2.1 GROSS PROFIT RATIO IN THE YEAR 2010 TO 2014 36
TABLE 2.2 NET PROFIT RATIO IN THE YEAR 2010 TO 2014 37
TABLE 2.3 RETURN ON ASSET RATIO IN THE YEAR 2010 TO 2014 38
TABLE 2.4 TOTAL ASSET TURNOVER IN THE YEAR RATIO 2010 TO 2014 39
TABLE 4.1 THE NUMBER OF MALE AND FEMALE RESPONDENTS 48
TABLE 4.2 THE AGE GROUP OF ASSOCIATES 49
TABLE 4.3 THE MARITAL STATUS OF ASSOCIATES 50
TABLE 4.4 CURRENT ROLE EMPLOYEE AT RELIANCE RETAIL STORE 51
TABLE 4.5 THE EDUCATION QUALIFICATION OF A EMPLOYEES 52
TABLE 4.6 NUMBER OF YEARS WORKED FOR CURRENT ROLE 53
TABLE 4.7 THE YEARS OF SERVICE FOR PREVIOUS ROLE 54
TABLE 4.8 THE REASON FOR FRIENDS LEFT THE CURRENT JOB 55
TABLE 4.9 FACTOR MISSING IN PREVIOUS JOB 56
TABLE 4.10 FACTOR MISSING IN THE CURRENT JOB. 57
TABLE 4.11 WORK TIME FOR PERSONAL WORK 58
TABLE 4.12 FLEXIBLE WORK TIMING 59
TABLE 4.13 COMPENSATION (PAY SCALE) PAID TO THE STAFF. 60
TABLE 4.14 TIME TO ADAPT TO THE ORGANIZATION 61
TABLE 4.15 THE CO-OPERATION BETWEEN THE STAFF 62
TABLE 4.16
COMMUNICATION EFFECTIVENESS BETWEEN EMPLOYEE AND
EMPLOYER 63
TABLE 4.17 LEARNING OPPORTUNITY IN THE RELIANCE RETAIL STORE. 64
TABLE 4.18 SCOPE FOR CAREER GROWTH 65
TABLE 4.19 THE PERFORMANCE REVIEW FEEDBACK 66
TABLE 4.20 REGULARITY OF STAFF MEETING. 67
TABLE 4.21 CROSS TAB BETWEEN GENDER AND PAYSCALE 68
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9. TABLE 4.22 CROSS TAB BETWEEN AGE GROUP AND PAYSCALE 69
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10. LIST OF FIGURES
LIST OF FIGURES
FIGURE NO SUBJECT
PAGE
NO
FIGURE 2.1 MARKET SIZE OF INDIAN RETAIL 11
FIGURE 2.2 MARKET BREAK UP BY REVENUE 12
FIGURE 2.3 MAJOR SEGMENTATION UNDER RELIANCE RETAIL 28
FIGURE 2.4 GRADES&DESIGNATION IN RELIANCE RETAIL 29
FIGURE 2.5 GROSS PROFIT RATIO IN THE YEAR 2010 TO 2014 36
FIGURE 2.6 NET PROFIT RATIO IN THE YEAR 2010 TO 2014 37
FIGURE 2.7 RETURN ON ASSET RATIO IN THE YEAR 2010 TO 2014 38
FIGURE 2.8 TOTAL ASSET TURNOVER IN THE YEAR RATIO 2010 TO 2014 39
FIGURE 4.1 THE NUMBER OF MALE AND FEMALE RESPONDENTS 48
FIGURE 4.2 THE AGE GROUP OF ASSOCIATES 49
FIGURE 4.3 THE MARITAL STATUS OF ASSOCIATES 50
FIGURE 4.4 CURRENT ROLE EMPLOYEE AT RELIANCE RETAIL STORE 51
FIGURE 4.5 THE EDUCATION QUALIFICATION OF A EMPLOYEES 52
FIGURE 4.6 NUMBER OF YEARS WORKED FOR CURRENT ROLE 53
FIGURE 4.7 THE YEARS OF SERVICE FOR PREVIOUS ROLE 54
FIGURE 4.8 THE REASON FOR FRIENDS LEFT THE CURRENT JOB 55
FIGURE 4.9 FACTOR MISSING IN PREVIOUS JOB 56
FIGURE 4.10 FACTOR MISSING IN THE CURRENT JOB. 57
FIGURE 4.11 WORK TIME FOR PERSONAL WORK 58
FIGURE 4.12 FLEXIBLE WORK TIMING 59
FIGURE 4.13 COMPENSATION (PAY SCALE) PAID TO THE STAFF. 60
FIGURE 4.14 TIME TO ADAPT TO THE ORGANIZATION 61
FIGURE 4.15 THE CO-OPERATION BETWEEN THE STAFF 62
FIGURE 4.16
COMMUNICATION EFFECTIVENESS BETWEEN EMPLOYEE AND
EMPLOYER 63
FIGURE 4.17 LEARNING OPPORTUNITY IN THE RELIANCE RETAIL STORE. 64
FIGURE 4.18 SCOPE FOR CAREER GROWTH 65
FIGURE 4.19 THE PERFORMANCE REVIEW FEEDBACK 66
FIGURE 4.20 REGULARITY OF STAFF MEETING. 67
FIGURE 4.21 FIGURE SHOWING CROSS TAB BETWEEN GENDER AND PAYSCALE 68
FIGURE 4.22 FIGURE SHOWING CROSSTAB BETWEEN AGE AND PAYSCALE 69
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11. EXECUTIVE SUMMARY
The project titled on “STUDY ON ATTIRITION AT RELIANCE RETAIL”, Bangalore is
submitted in partial fulfillment of the award of Master of Business Management (MBA)
This project contain five chapter includes introduction about the internship, industry profile,
company profile.Theoritical background of the study, analysis and interpretation of the data and
finding and suggestion and conclusion.
Indian retail sector is witnessing one of the most hectic marketing activities of all times. The
companies are fighting to win the hearts of customer who is god said by the business tycoons.
There is always a ‘first mover advantage’ in an upcoming sector.in India, that advantage goes to
“RELIANCE RETAIL”. It has bought about many changes in the buying habits of the people.it
has created many formats, which provide all items under one roof at low rates and good quality
The scope of research conducted at reliance retail was limited to Bangalore district was about
“employee attrition”, attrition refers to ‘a gradual, natural reduction in membership or personnel
through retirement, resignation, termination or death.
The research titled “study on attrition a major problem in reliance retail “help to know the reason
and effects of attrition rate in reliance retail. The study was conducted for a period of 8 weeks.
The main objective of the study is to understand the present employee attrition scenario,
investigate the reason for employee attrition & suggest the measure to improve employee
turnover.
In the study the stratified technique is used. Sample size of 100 were taken based on the factor
such as time, salary and working environment on the respondents. The information is collected
from both primary and secondary sources. According to study was done the company has to
improve its working environment, salary package and shift timing.
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12. CHAPTER 1
INTRODUCTION

13. 1.0 INTRODUCTION ABOUT THE INTERNSHIP
Internship project on employee attrition under taken at reliance retail ltd for the period of 2
month duration .My aim of the study to find out reason for high level of attrition.
1.1 TOPIC CHOSEN FOR THE STUDY
Employee attrition is the rate at which organization and or a company hire and fire employee to
either represent their firms .attrition is reduction in force by means of resignation retirement and
death .employee attrition involves high cost to the organization, the cost includes recruitment,
training, lost in productivity to the organization.to avoid employee attrition the top management
should continuously communication with the employee by coaching and providing feedback.
1.2 Statement of the problem
Employee attrition is one of the critical problems faced by an HR manager these days .in an ideal
situation an employee considers multiple comfort levels while working in an office for e.g. employer’s
goodwill in the market, remuneration, future growth, working condition, co-workers, current roles scope
in the, market & most important future stability with the organization.
Reliance retail stores located in Vijayanagar and ITPL in Bangalore is sized of a similar problem.one
direct reason that can be attributed to this is the rising competition in similar outlets which are on the
increase in every nook and corner .the mobility of employees lured by one reason or the other poising
serious attrition problem. The attempt in this study is to go to the root of the problem and evolve
appropriate strategies to combat the same to a manageable level.
1.3 OBJECTIVES OF THE STUDY
Main aim to understand the HR practice in reliance retail ltd in general and investigate the
reason for employee attrition.
The main objective include:
• To understand the present employee attrition scenario.
• To investigate the reason for employee attrition.
• To suggest the measure to improve employee turnover.
1.4 SCOPE OF THE STUDY
The study covers out in the reliance head office Bangalore. The study was forces mainly on
employee attrition who have left in one month.
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14. Due to time limitation the study was restricted for those employees who left in the month of
December 2014.
1.5 METHODOLOGY ADOPTED
1.5.1Primary data
Primary data was collected by questionnaire to 100 employees who have left reliance retail ltd,
Bangalore, in the duration of 1 month December 2014.The interview was collected with the help
of executive of HR department of reliance retail ltd. Face to face personal interviews with the
HR's and employees.
1.5.2 Secondary data
Secondary data is collected by referring text book, annual report, company magazines websites
etc. Statistical tool: analysis through bar chart/pie chart, and cross tab.Analysis done
through using SPSS.
Research Design: Descriptive Research Design
Research Instrument: Questionnaire and Face to face personal interview.
Sample design: convenience sampling.
Sampling Method: Stratified Sampling.
1.6 LITERATURE REVIEW
Grossman and Helpman's (2005) announced that, "We live during time of outsourcing,"
plainly assigns that outsourcing has coined into a recognized, acknowledged and secured
business method. A standout amongst the most well-known appearances of outsourcing is
business methodology outsourcing (BPO), i.e., exchanging the operational responsibility for or a
greater amount of the association's business methods to an outer supplier that, thus, regulates the
techniques as indicated by some predefined measurements (Ghosh and Scott, 2005; Stone,
2004). BPO or Business Process Outsourcing in this way refers to the reworking of whole
business capacities to some other administration suppliers, essentially in minimal effort areas.
The administration supplier may be either had toward oneself or an outsider. This movement or
exchanging of business methods to an outside supplier is basically to achieve expanded
shareholder esteem.
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15. Lambert (1998) analyzed that remedial staff was the most essential resource for any restorative
org. numerous staff, on the other hand, intentionally quit. The expense of this turnover is high
for restorative associations. A causal model for restorative staff deliberate turnover is created and
introduced to guide future exploration.
Behr et al (2003) broke down the degree and determinants of board weakening in the European
Community Household Panel (ECHP). They discovered the degree and determinants of board
shaping down to uncover high variability crosswise over nations and also for distinctive waves
inside one nation. Contrasts were additionally discovered when contrasting wearing down
conduct crosswise over diverse overviews running parallel in the same nations, just like the case
for Germany and the United Kingdom (UK).
Hickman and Colonel (2003) tended to the pattern, in late decades, of expanded Army enrolled
wearing down by assessing the current certainties in regards to steady loss. Of most prominent
concern was shaping down from Initial Entry Training (IET) and first-term weakening. In spite
of the fact that the general wearing down rate boiled down to 30% in 2003 from its top of 37%,
for enlistees entering administration in the Fiscal Years 1994 and 1995, the rate stayed high. The
creator proposed that weakening be taken a gander at all the more nearly with a specific end goal
to focus the reasons and to rebuild strategies.
Buckley (2004) contemplated that the steady loss of both new and experienced instructors was
an awesome test for schools and school heads all through the United States, especially in huge
urban regions. In light of the significance of this issue, there is a vast observational writing that
researches why educators quit and how they may be better incited to remain. They found that
office quality is a vital indicator of the choice of educators to leave their current position.
Dimly and Piskator (2004) performed a writing survey on wearing down, crosswise over
military administrations. They found that a wealth of examination has concentrated on
demographic and psychosocial variables affecting wearing down. The creators proposed that the
following venture in shaping down examination thought to be to join the danger components
into one exploration exertion, keeping in mind the end goal to think about their relative
essentialness.
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16. 1.7 Limitations of the study
 As findings of the study is basic on the employees who have left reliance retail.
 As the study is on the sample size of 100 employees.
 To measure the attrition of only 1 month December 2014.
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18. CHAPTER 2
INDUSTRY AND COMPANY
PROFILE

19. 2.0.1 History of Retail Industry
The retail business rose in the US in the eighteenth century, confined to general stores. Strength
stores were created just in those territories that had a populace of over 5,000. Markets thrived in
the US and Canada with the development of rural areas after World War II. The present retail
industry is blasting over the world. Incomes from retail deals in the only us remained at $4.48
trillion in 2007, as indicated by a report by the US Census Bureau.
2.0.2 Meaning of Retail
The statement Retail is gotten from French word it means allow off a piece or some breathing
room mass." Retail is the offer of products and administrations from people or organizations to
end client Retailers are a piece of an incorporated framework called the production network. A
retailer buys products or items in vast amounts from producer specifically or through a
wholesale, and afterward offers littler amounts to the customer for a benefit. Retailing could be
possible in either settled areas like stores or markets, entryway or by conveyance. In the 2000s,
an expanding measure of retailing is carried out utilizing online sites, electronic installment, and
after that conveyed by means of a messenger or through different administrations
2.0.3 Two types of Retail Industry
Organized retail - Those merchants/retailers who are authorized for exchanging exercises and
enrolled to pay assessments to the administration
Unorganized retail – It comprises of unapproved little shops - routine Kirana shops, general
stores, corner shops among different other little retail outlets - however stay to be the
transmitting power of Indian retail industry.
2.0.4 Challenges facing today’s Retail Industry
• Struggling along with the economy
• Staging stores
• Analyzing data
• Figuring out the potential of mobile devices
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20. • Embracing social Media
2.0.5 Indian Retail Industry
The particular Indian retail industry is the fifth biggest on this planet. Embodying sorted out and
sloppy areas, Indian retail industry is just about the quickest developing commercial enterprises
throughout India, particularly in the course of the most recent few years. In spite that at first, the
retail company in India was generally disorderly, however with the change of tastes and
inclination with the buyers, the industry is getting more prevalent nowadays and getting sorted
out and about too. With developing business request, the industry is relied upon to build up at a
pace of 25-30% every year. The India retail industry is relied upon to build up from Rs. 35, 000
crore throughout 2004-05 to Rs. 109, 000 center from the year 2010.
The retail situation in India is remarkable. Lots of it is in the disorderly portion, with more than
12 million stores of different sizes and configurations. Just about 96% of these stores are under
500 square feet in size, the every capital retail room India being 2 square feet contrasted with the
US figure of 16 square feet India's every capital going space is consequently the most minimal
on this planet.
With more than 9 outlets every 1000 individuals, India has the biggest number on this planet.
The greater part of all of them are autonomous and contribute as much as 96% to aggregate
retail deals. In view of the expanding number of atomic families, working ladies, much more
noteworthy work weight and widened driving time, accommodation has converted into a need
for Indian shoppers. They need everything under 1 top for simple access and number of decision.
This offers a fabulous available door for sorted out retailers within the nation which represent
only 2% and also advanced stores 0. 5% with the evaluated US Dollar 180 billion value of
merchandise that are retailed in India each chain, Wal-Mart.
The Indian Retail segment has fallen off age and has experienced real change throughout the
most recent decade with a discernible movements towards composed retailing. A Big t Kearney,
a US Based worldwide supervision counselling firm has positioned India because the fourth
most alluring country for retail speculation among 30 well established markets
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21. The retail market needs to achieve a whooping Rs. 47 lakh crore by 2016-17, the way it grows at
an aggravated every year development rate of 15 just about every penny, likewise to the 'Yes
Traditional bank - Assocham' study.
The list market, (counting composed and disorderly retail), was at Rs. 23 lakh crore in 2011-12.
As indicated from the study, the retail, that embodied only seven every penny with the general
retail showcase in 2011-12, needs to develop at a CAGR of 24 every penny and attain 10. 2
every penny offer with the aggregate retail division by 2016-17.
Concerning sheer space, the composed list supply in 2013 was all-around 4. 7 million square
foot (sq. ft. ). This demonstrated a 78 every penny increment on the aggregate shopping centre
supply of only 2. 5 million sq. feet. in 2012.
Positive demographics, broadening urbanization, nuclearisation of families, climbing abundance
in the middle of shoppers, developing inclination for marked items and higher goals vary
elements which will drive list utilization in India, " claimed DS Rawat, Assocham Secretary
Common.
2.0.6 Market Dynamics
In past times few years, Indian Retail sector has seen tremendous growth in the organised
segment. Major domestic players have stepped into the retail arena with long expression,
ambitious plans to expand the business across verticals, cities in addition to formats.
Companies like Tata, Reliability, Adani Enterprise and Bharti are actually investing considerably
in the flourishing Indian Retail market. Along using these giant retailers, a number of
transnational brands in addition have entered into the market to create retail chains in close
relationship with bigger Indian companies.
High consumer spending in recent times by the young population (more than 31% of the country
is below 14 years) in addition to sharp rise in disposable income are driving the Indian organised
retail sector’s growth. Even Tier I & Rate II cities and towns are witnessing a significant shift in
consumer preferences in addition to lifestyles, the result of which usually, they have emerged as
interesting markets for retailers to grow their presence.
The Indian retail sector is highly fragmented and the unorganised sector has around 13 million
retail outlets that account for around 95-96% of the total Indian retail industry. Even so, going
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22. Forward, the organised sector’s growth potential is required to increase due to globalisation,
large economic growth, and improved way of life. Although the growth potential in the sector is
immense, there are generally obstacles too, that could sluggish the pace of growth regarding new
entrants. Rigid regulations, large personnel costs, real estate expenses, lack of basic
infrastructure, in addition to highly competitive domestic retailer organizations are some such
challenges.
2.0.7 Retail classification
Retail industry can be broadly classified into two categories namely- organised and unorganised
retail.
2.0.7.1 Organized retail - Organised traders/retailers, who are licensed for trading activities and
registered to pay taxes to the government.
2.0.7.2 Unorganized retail – It consists of unauthorized small shops - conventional Kirana shops,
general stores, corner shops among various other small retail outlets - but remain as the radiating
force of Indian retail industry.
2.0.8 Key drivers of the Indian Retail Industry
 Emergence of nuclear families
 An increase in the double-income household’s trend
 Large working population
 Reasonable Real estate prices
 Increase in disposable income and customer aspiration
 Demand as well as increase in expenditure for luxury items
 Growing preference for branded products and higher aspirations
 Growing liberalization of the FDI policy in the past decade
 Increasing urbanisation,
 Rising affluence amid consumers
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23. 2.0.9 Bottlenecks
 A long way to meet international standards
 Lack of efficient supply-chain management
 Lack of required retail space
 No fixed consumption pattern
 Shortage of trained manpower
 Lack of proper infrastructure and distribution channel.
2.0.10 Emerging sectors/trends in Indian retailing
Within retail, the emerging sectors would be food and grocery, apparel, technology, e-commerce,
fashion and lifestyle. Incorporation of technology in the organised retail segment continues to be
something to reckon with in the past few years. Use of desktops for merchandise planning and
management, control of inventory costs in addition to supplies and replenishment of things done
electronically, internal store accounts receivable, etc. has changed the face of product retailing.
Online retail business is another gen format which has high potential for growth in the future.
After conquering physical stores, retailers are now foraying into the domain involving e-
retailing. The retail industry is good to go to test waters over the web medium, by selling
products as a result of websites. Food and grocery stores comprises the biggest chunk of the
Indian retail market. An emerging trend in this segment would be the virtual formats where
customer purchases are taken online through web portals which are delivered at the door step the
same day or the following morning. This trend has been catching up with most of the large sized
retail chains which have their websites. According to panel members for the seventh Food and
Grocery Online community India, the opportunities in meals and grocery retail in Of India are
immense, given that it constitutes about 69 % of India’s total retail marketplace. The Indian
retail market, at present estimated at $490 billion, is project to cultivate at a compounded annual
growth rate of 6 % to reach $865 billion through 2023. Modern retail with a puncture of only 5%
is likely to grow about six times in the current 27 billion USD to 220 billion USD, across just
about all categories and segments.
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24. Organised Retail is emerging because new phenomenon in India and despite the slump, the
market is increasing exponentially. As economic growth brings more of India’s people in to the
consuming classes and organized retail lures more and more existing shoppers, by 2015, more
than 300 million shoppers may very well patronize organized retail chains.Consumer markets in
emerging marketplace economies like India are growing rapidly because of robust economic
growth. India's modern consumption level is set to double within five years to US$ 1. 5 trillion
in the present level of US$ 750 million.
The growing middle class is an important factor contributing to the growth involving retail in
India. By 2030, it's estimated that 91 million households will become ‘middle class’, up from 21
million today. Also by 2030, 570 million people are expected to live in urban centers, nearly
twice the population of the usa today.
Thus, with tremendous likely and huge population, India is set for high growth in consumer
expenditure. With India's large ‘young’ human population and high domestic consumption, the
macro trends for your sector look favourable
2.0.11Market size of Indian retail industry
The total market size was US$ 490 billion in 2013, registering a CAGR of 6.1 per cent since
1998.
Fig 2.1: Graph showing market size of Indian retail.
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25. Indian retail industry break-up by revenues
In 2013, food & grocery accounted for nearly 69 per cent of total revenues in the retail sector,
followed by apparel (8 per cent).
Retailing in India is one of the pillars of its economy and accounts for 14 to 15 percent of its
GDP. The Indian retail market is estimated to be US$ 500 billion and one of the top five retail
markets in the world by economic value. India is one of the fastest growing retail markets in the
world, with 1.2 billion people.
Fig 2.2: Graph showing market break up by revenue
As of 2013, India's retailing industry was essentially owner manned small shops. In 2010, larger
format convenience stores and supermarkets accounted for about 4 percent of the industry, and
these were present only in large urban centres. India's retail and logistics industry employs about
40 million Indians (3.3% of Indian population). Until 2011, Indian central government
denied foreign direct investment (FDI) in multi-brand retail, forbidding foreign groups from any
ownership in supermarkets, convenience stores or any retail outlets. Even single-brand retail was
limited to 51% ownership and a bureaucratic process.
In November 2011, India's central government announced retail reforms for both multi-brand
stores and single-brand stores. These market reforms paved the way for retail innovation and
competition with multi-brand retailers such as Walmart, Carrefour and Tesco, as well single
brand majors such as IKEA, Nike, and Apple. The announcement sparked intense activism, both
in opposition and in support of the reforms. In December 2011, under pressure from the
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26. opposition, Indian government placed the retail reforms on hold till it reaches a consensus. In
January 2012, India approved reforms for single-brand stores welcoming anyone in the world to
innovate in Indian retail market with 100% ownership, but imposed the requirement that the
single brand retailer source 30 percent of its goods from India. Indian government continues the
hold on retail reforms for multi-brand stores.
In June 2012, IKEA announced it had applied for permission to invest $1.9 billion in India and
set up 25 retail stores.[9] An analyst from Fitch stated that the 30 percent requirement was likely
to significantly delay if not prevent most single brand majors from Europe, USA and Japan from
opening stores and creating associated jobs in India.
On 14 September 2012, the government of India announced the opening of FDI in multi-brand
retail, subject to approvals by individual states. This decision was welcomed by economists and
the markets, but caused protests and an upheaval in India's central government's political
coalition structure. On 20 September 2012, the Government of India formally notified the FDI
reforms for single and multi-brand retail, thereby making it effective under Indian law.
On 7 December 2012, the Federal Government of India allowed 51% FDI in multi-brand retail
in India. The government managed to get the approval of multi-brand retail in the parliament
despite heavy uproar from the opposition (the NDA and leftist parties). Some states will allow
foreign supermarkets like Walmart, Tesco and Carrefour to open while other states will not. The
India Retail Industry is the largest among all the industries, accounting for over 10 per cent of
the country’s GDP and around 8 per cent of the employment. The Retail Industry in India has
come forth as one of the most dynamic and fast paced industries with several players entering
the market. But all of them have not yet tasted success because of the heavy initial investments
that are required to break even with other companies and compete with them. The India Retail
Industry is gradually inching its way towards becoming the next boom industry. The total
concept and idea of shopping has undergone an attention drawing change in terms of format and
consumer buying behaviour, ushering in a revolution in shopping in India. Modern retailing has
entered into the Retail market in India as is observed in the form of bustling shopping centres,
multi-storied malls and the huge complexes that offer shopping, entertainment and food all
under one roof. A large young working population with median age of 24 years, nuclear families
in urban areas, along with increasing workingwomen population and emerging opportunities in
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27. the services sector are going to be the key factors in the growth of the organized Retail sector in
India. The growth pattern in organized retailing and in the consumption made by the Indian
population will follow a rising graph helping the newer businessmen to enter the India Retail
Industry. In India the vast middle class and its almost untapped retail industry are the key
attractive forces for global retail giants wanting to enter into newer markets, which in turn will
help the India Retail Industry to grow faster. Indian retail is expected to grow 25 per cent
annually. Modern retail in India could be worth US$ 175-200 billion by 2016. The Food Retail
Industry in India dominates the shopping basket. The Mobile phone Retail Industry in India is
already a US$ 16.7 billion business, growing at over 20 per cent per year. The future of the India
Retail Industry looks promising with the growing of the market, with the government policies
becoming more favourable and the emerging technologies facilitating operations.
Retail industry has been on a growth trajectory over the past few years. The industry is
expected to be worth US$ 1.3 trillion by 2020. Of this, organized retail is expected to grow at a
rate of 25% p.a. A significant new trend emerging in retail sector is the increase in sales during
discount seasons. It has been observed of late that sales numbers in discount seasons are
significantly higher than at other times. This is prompting retailers to start discounts earlier and
have longer than usual sale season. Also, concepts such as online retailing and direct selling are
becoming increasingly popular in India thereby boosting growth of retail sector.
Another crucial structural change is expected to come in the form of implementation of FDI in
multi-brand retail. The industry players are strongly in favour of entry of foreign retailers into
the country. This will help them in funding their operations and expansion plans. The expertise
and experience brought in by the foreign retailers will also improve the way the Indian retailers
operate. It is expected to bring in more efficiency in the supply chain functions of retailers.
However, fear of loss of business for kiranawalas is still a cause of concern and is posing hurdles
in FDI implementation across country. Ironically, even though it has been some time since the
government opened the door for FDI in multi-brand retail, international retailers have not yet
shown wholehearted interest in coming to India yet. Hurdles such as requirement of clearance
from individual states, mandate of 30% local outsourcing of materials from micro and small
enterprises are keeping the investors away from India.
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28. Retail is mainly a volume game, (especially value retailing). Going forward, with the
competition intensifying and the costs scaling up, the players who are able to cater to the needs
of the consumers and grow volumes by ensuring footfalls will have a competitive advantage. At
the same time competition, high real estate cost, scarcity of skilled manpower and lack of
infrastructure are some of the hurdles yet to be tackled fully by retailers.
Luxury retailing is gaining importance in India. This includes fragrances, gourmet retailing,
accessories, and jewellery among many others. The Indian consumer is ready to splurge on
luxury items and is increasingly doing so. The Indian luxury market is expected to grow at a rate
of 25% per annum. This will make India the 12th largest luxury retail market in the world.
Rural retailing is another area of prime focus for many retailers. Rural India accounts for 2/5th
of the total consumption in India. Thus, the industry players do not want to be left out and are
devising strategies especially for the rural consumer. However, players should be ready to face
some imminent challenges in rural area. For instance, competition from local mom and pop
stores as they sell on credit, logistics hurdles due to bad infrastructure in rural areas, higher
inventory expenses and different buying preferences amongst rural population.
2.0.12 Phased growth of Indian retail Industry
1995: Emerging: The Indian retail market as classified as Emerging market.
2003-2004: standing at $230.00 billon, India’s retail market enters the growth phase,
characterized by the entry of new domestic and international participants and expansion by
existing retailers in India.
2005-2006:Retail boom: the beginning of the Indian retail boom and India is also ranked as the
1 market for global retailers to enter according to global retail development Indices.
2006-2007: Maintaining its 1 position as the market with the most opportunities for retail
growth, India’s retail market grew to 330.00 billion.
2008: The Indian retail boom is at its peak and phase has been termed the high retail growth
rush.
2010: Continued growth expected to grow retail Market to 427.00 billon
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29. 2.0.13 Challenges faced by Indian retail Industry
The Indian Retail sector is constantly shaken with cut throat competition. It is also facing
challenges in the form of shortages for management professionals, cash flow, supply chain
management and frauds.
2.0.14 Future prospects
Organized retail is a new phenomenon in India and despite the downturns, the market is growing
exponentially, as economic growth brings more of India’s people into the consuming classes and
organized retail lures more and more existing shoppers into its open doors. By 2015, more than
300 million shoppers are likely to patronize organized retail chains. The growing middle class is
an important factor contributing to the growth of retail in India. By 2030, it is estimated that 91
million households will be ‘middle class’, up from 21 million today. Also by 2030, 570 million
people are expected to live in cities, nearly twice the population of the United States today.
Consumer markets in emerging market economies like India are growing rapidly owing to robust
economic growth. India's modern consumption level is set to double within five years to US$ 1.5
trillion from the present level of US$ 750 billion. Thus, with tremendous potential and huge
population, India is set for high growth in consumer expenditure. With India's large ‘young’
population and high domestic consumption, the macro trends for the sector look favorable.
Online retail business is another format which has high potential for growth in the near future.
The online retail segment in India is growing at an annual rate of 35 per cent, which would take
its value from Rs 2,000 crore (US$ 429.5 million) in 2011 to Rs 7,000 crore (US$ 1.5 billion) by
2015. For instance the Tata Group firm Infiniti Retail, that operates its consumer durables and
electronics chain of stores under the 'Chroma' brand, is in the process of tapping net savvy
consumers. Similarly, the Future Group, that operates a dedicated portal ‘Futurebazaar.com’ for
online sales, has revealed that it is targeting at least 10 per cent of the company's total retail sales
through the digital medium.
2.1 Company profile
The reliance group, founded by Dhirubhai H. Ambani (1972-2002), is India’s largest private
sector enterprise, with businesses in the energy and materials value chain. Group’s annual
revenue are in excess of US$ 66 billion. The flagship company, reliance Industries Limited, is a
Fortune global 500 company and is the largest private sector company in India.
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30. Backward vertical integration has been the cornerstone of the evolution and the growth of
reliance starting with textiles in the late seventies, reliance pursued a strategy of backward
vertical integration- in polyester, fiber intermediates, plastics, petrochemical, petroleum refining
and oil and gas exploration and production- to be fully integrated along the material and energy
value chain.
The group’s activities span exploration and production of oil and gas , petroleum refining and
marketing, petrochemicals (polyester, fiber intermediates, plastics and chemicals), textiles, retail,
and special economic zones.
Reliance enjoys global leadership in its businesses, being the largest polyester yarn and fiber
producer in the world and among the top five to ten producers in the world in major
petrochemical products. RIL is the first and only private sector company from India to feature in
the fortune global 500 lists of world’s largest corporations and ranks amongst the world’s top
200 companies in terms of profits.
With a vision to generate inclusive growth and prosperity for farmers, vendor partners, small
shopkeepers and consumers, reliance retail limited (RRL) , a subsidiary of RIL, was set up to
lead reliance group’s foray into organized retail.
Reliance retail, ltd is a subsidiary company of reliance industries, founded in 2006 and based in
Mumbai, which is healed by MukeshAmbani (chairman, reliance industries limited). It is the
second largest retailer in India.
Its retail outlets offer foods, groceries, apparel and footwear, lifestyle and home improvement
products, electronic goods, and farm implements and inputs. The company’s outlets also provide
vegetables, fruits, and flowers. It focuses on consumer’s goods, consumer durables, travel
services, energy, entertainment and leisure and health and well- being products, as well as on
educational products and services.
Today RRL operates over 600 stores in over 57 cities, spanning across 13 states with over 3.5
million sq. ft. RRL is multi-format retailer i.e., value and specialty formats under which its
various subsidiaries are categorized.
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31. 2.1.1 Major Milestones
2013-2014
• Reliance Jio and Bharti signed agreement under which Reliance Jio will utilize dedicated
fiber pair on Bharti's i2i submarine cable that connects India and Singapore. The i2i cable
system will provide Reliance Jio direct access and ultra-fast connectivity to major hubs across
Asia Pacific.
• RIL and its partners announced a significant gas and condensate discovery (MJ-1
discovery) in the KG-D6 block off eastern coast of India.
• S&P upgraded the long-term corporate credit rating on Reliance to 'BBB+' from 'BBB',
one of the highest ratings by S&P for an Indian corporate and the highest rating by S&P for an
Indian Oil & Gas company. The new rating is two notches above the rating for the Indian
sovereign.
• Reliance Jio and Reliance Communications signed agreement for sharing of RCom's
nationwide telecom towers infrastructure.
• RIL-BP announced a new gas condensate discovery off the east coast of India in the deep
water block CY-DWN-2001/2 (CY-D5) in the Cauvery basin.
• Reliance Jio received Unified License for all 22 Service Areas across India and becomes
the first telecom operator in the country to get pan India Unified License.
• Reliance Jio acquired spectrum in 14 key circles across India in the 1800 MHz band in
the spectrum auction conducted by DoT, Government of India.
• Reliance Jio and Viom Networks signed agreement for sharing of Viom's nationwide
telecom towers infrastructure.
• RIL selected for two offshore blocks (M17 and M18) in Myanmar Offshore Block
Bidding Round - 2013.
• Reliance Jio and ATC India signed a tower sharing agreement for utilizing telecom tower
infrastructure of ATC India across the country.
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32. • RIL commissioned new PFY plant at Silvassa which is the most automated and one of
the most environment-friendly plants globally.
2012-2013
• RIL signed a US$ 2 billion equivalent loan with nine banks covered by Euler Hermes
Deutschland AG. The loan will be primarily used to finance goods and services procured from
German suppliers as part of RIL's petrochemicals expansion projects at Jamnagar, Hazira,
Silvassa and Dahej in India.
• The Global Reporting Initiative (GRI) awarded A+ level to RIL's Sustainability Report
2011-12. This is the seventh year in a row RIL has received highest application level on
sustainability reporting. RIL is also the first company to adhere to the GRI 3.1 Oil & Gas Sector
Supplement, released in February 2012.
• RIL and the Venezuelan state oil company, Petroleum de Venezuela, SA (PDVSA) signed
a 15 year heavy crude oil supply contract and a Memorandum of Understanding (MoU) with
PDVSA to further development of Venezuelan heavy oil fields. PDVSA will supply between
300,000 and 400,000 barrels per day of Venezuelan heavy crude oil to RIL's two refineries in
Jamnagar under a 15-year crude oil supply contract.
• The Board of Ex-Im Bank voted to extend the single largest financing transaction of US$
2.1 to RIL. This includes direct loan and to guarantee a US$ 1.06 billion JPMorgan Chase loan
to the Company. The loan will be primarily used to finance goods and services procured from
exporters and suppliers in the United States as part of Reliance's expansion projects at Jamnagar,
Gujarat.
• The share buy-back programme which ended in January 2013, RIL bought and
extinguished 46,246,280 equity shares of Rs. 10 each. It was 38.54% of the total buy-back offer
quantity of 120,000,000 equity shares. The total amount invested in the buy-back was Rs. 3,366
crore and the average price at which the equity shares were bought back was Rs. 726.68 per
share.
• RIL's SEZ Refinery at Jamnagar won the prestigious 'Globe of Honor Award' for the
excellence in Environmental management by the British Safety Council, London.
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33. • RIL was awarded the prestigious 'International Refiner of the Year' 2013 at HART
Energy's 27th World Refining & Fuel Conference held in USA. The award was presented to
Reliance for producing cleaner, higher-quality gasoline and diesel fuel, operating with the
highest international refining standards and innovative use of resources in diverse environments
and for innovation, global vision, and ability to chart future changes. RIL is the only Asian
refiner to have been conferred this award twice.
2011-2012
• In April 2011, RIL announced a rich gas and condensate discovery in the very first well
drilled in the block CY-PR-DWN-2001/3(CYPR-D6) located in deep water Cauvery-Palar basin.
• RIL was awarded Application Level A+ certification by Global Reporting Initiative
(GRI) for its FY 2010-11 Sustainability Report- "New Businesses. New Technologies. New
partnerships. (2011)".
• In January 2012, RIL announced India's largest share buy-back programme comprising
buyback of up to 120,000,000 fully paid up equity shares of Rs. 10 each, at a price not exceeding
Rs. 870 per equity share, payable in cash, up to an aggregate amount not exceeding Rs. 10,440
crore from the open market through stock exchange.
• In February 2012, RIL and SIBUR formed a JV to manufacture butyl rubber in India
with targeted production capacity of 100,000 tone’s per annum. This JV will be the fourth largest
producer of butyl rubber globally. RIL's share in the JV will total 74.9% while SIBUR will
account for the rest.
• In March 2012, RIL became the first Indian company to be certified as "Responsible
Care Company" under stringent standards of American Chemistry Council (ACC), USA. RIL's
Petrochemical Business won this accolade for its robust management system that ensures highest
standards of health, safety, security and environmental performance for both its products and
operations.
2010-2011
• During the year, RIL and BP announced a strategic partnership in the oil and gas
business. This partnership comprises BP taking 30 per cent stake in 23 oil and gas production
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34. sharing contracts that Reliance operates in India, including the KG-D6 block, and the formation
of a joint venture (50:50) for sourcing and marketing gas in India.
• During the year, the Company took a significant step by entering into partnerships in the
United States of America with Atlas Energy, Pioneer Natural Resources and Carrizo Oil & Gas
through three distinctive joint venture agreements. It has also entered into a separate joint
venture with Pioneer Natural Resources aimed at addressing the mid-stream opportunity in gas
evacuation and transportation.
• During the year, RIL and Russia's SIBUR announced a joint venture for the setting up of
a facility for producing 100,000 tons of butyl rubber in India.
• During the year, RIL acquired a 95% stake in Infotel Broadband Services Limited, which
emerged as a successful bidder in all the 22 circles of the auction for Broadband Wireless Access
(BWA) spectrum conducted by the Department of Telecommunication, Government of India.
RIL has invested Rs. 4,201.64 crore by way of subscription to equity capital issued by Infotel
Broadband.
2009-2010
• With the commissioning of the new refinery in its Special Economic Zone (SEZ),
Jamnagar has now become the petroleum hub of the world. With 1.24 Million Barrels Per Day
(MBPD) of nominal crude processing capacity, it is the single largest refining complex in the
world.
• A T Kearney lists RIL as one of the Top 25 Global Champion for 2009 which managed to
outperform the competition in the midst of global financial meltdown.
• Boston Consulting Group (BCG) ranks RIL as the 5th most sustainable value creators.
• RIL announced issue of bonus shares in the ratio of one equity share for every one equity
share (1:1) held in the Company.
• RIL announced the first oil discovery in the on land exploratory block CB-ONN-2003/1
(CB 10 A&B) awarded under the NELP-V round of exploration bidding.
2008-2009
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35. • RIL joins the league of global deep water oil and gas operators - RIL commenced
production of hydrocarbons in its KGD6 block in the Krishna Godavari basin with the
production of sweet crude of 420 API. The production of oil in KG-D6 was commissioned in
just over two years of its discovery, making it the world’s fastest green-field deep water oil
development project.
• RPL merger with RIL: Value creation through scale and synergies - The merger of
Reliance Petroleum Limited (RPL) with Reliance Industries Limited (RIL) has enabled seamless
integration of operational scale and financial synergies that existed between the two Companies.
Assets and liabilities of RPL have been transferred to RIL with effect from 1st April 2008, as per
the approval granted by the Hon. High Courts of Mumbai and Gujarat. Shareholders of RPL
received 1 share of RIL in lieu of every 16 shares of RPL held by them, as per the scheme of
merger. Accordingly, 6.92 crore new equity shares of RIL have been allotted to the shareholders
of RPL.
2007-2008
• During the year, Reliance signed an agreement to acquire certain polyester (capacity)
assets of Hualon, Malaysia.
• In the Refining & Marketing business, Reliance took over majority control of Gulf Africa
Petroleum Corporation (GAPCO) and started shipping products to the East African markets.
• Reliance also signed MoU with GAIL (India) Limited to explore opportunities of setting
up petrochemical plants in feedstock rich countries outside India.
• Reliance Petroleum Limited (RPL) continued the second year of implementation of its
refinery project with an overall project progress of 90%.
• During the year, Reliance Retail Limited (RRL) continued its rollout of stores across
various verticals and formats. Reliance Retail today operates over 590 stores in 57 cities,
spanning 13 states, with over 3.5 million square feet of trading space.
• Value creation through integration - A landmark merger of Indian Petrochemicals
Corporation Limited (IPCL) with Reliance Industries Ltd. (RIL) has been completed.
2006-2007
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36. • Reliance Retail entered the organized retail market in India with the launch of its
convenience store format under the brand name of 'Reliance Fresh'.
• The world's largest polyester expansion project commissioned during the year. We
brought a Polyester capacity of 550 KTA on stream at globally competitive costs in a record time
of eighteen months. With this expansion, our polyester capacity has been augmented to 2 million
tonnes per year. Subsequently, Reliance now have 4% of global polyester capacity and 6% of
global production.
• During the year, we expanded our polypropylene (PP) capacity by 280 KTA at Jamnagar
that increased the combined capacity to 1,710 KTA. With this expansion, we now have 3.5% of
global PP capacity and 3.6% of global PP production.
• RIL commences the setting up of a new export-oriented refinery through its subsidiary,
Reliance Petroleum Limited (RPL). The refinery will have a total atmospheric distillation
capacity of approximately 580,000 barrels per stream day with a Nelson Complexity of 14.0 and
an integrated polypropylene plant with a capacity of 0.9 Million TPA. The capital cost of the
RPL project is estimated at Rs 27,000 crore (approximately US$ 6 billion). RPL completes its
US$ 1.2 billion Initial Public Offering of equity shares which received an overwhelming
response across different classes of investors.
• Reliance's debt ratings from S&P and Moody's pierce India's sovereign ratings.
• Reliance becomes India's first private sector enterprise to cross US$2 billion profit mark.
2005-2006
• The Mumbai High Court, shareholders and creditors approve demerger proposal
2004-2005
• Reliance Industries Limited (RIL) emerged as the 'Petrochemicals Company of the Year'
at the prestigious sixth annual Platts Global Energy Awards ceremony in New York, USA.
• The Board of Directors of Reliance Industries Limited approved the buyback of its fully
paid up equity shares of Rs.10 each, at a price not exceeding Rs 570 per share, payable in cash,
up to an aggregate amount not exceeding Rs 2,999 crore. This amount represents the limit of
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37. 10% of the total paid up equity share capital and free reserves of the Company as on March 31,
2004.
• The European Commission approved the acquisition of the German specialty polyester
manufacturer 'Trevira' by Reliance.
• Reliance Industries emerged as the first and only private sector company from India to
feature in the 2004 Fortune Global 500 list of World's Largest Corporations
• Reliance announced it had struck gas off the Orissa Coast in the Bay of Bengal.
• RIL became the first private sector company in India to record a net profit of US dollar
of over 1 billion.
• Reliance Associate, Sun bright, signed a Memorandum of Understanding (MoU) with
National Organic Chemicals Industries Limited (NOCIL) to take over its Petrochemicals and
Plastics Products Divisions.
2003-2004
• Reliance announces Strategic Alliance with Bongaigaon Refinery & Petrochemicals Ltd.
(BRPL) to restart PSF manufacturing at BRPL.
• Reliance Infocomm acquires FLAG Telecom, a multinational telecom company
providing bandwidth through its undersea cable network comprising of over 50,000 kms of
undersea fiber optic cable that spans four continents and connects the key regions of Asia,
Europe, Middle East and the USA.
• State-of-the-art Research and Technology Centre is inaugurated at Reliance's Patalganga
complex to develop differentiated polyester products.
• Reliance strikes oil in an onshore block in Yemen, where it has an equity oil position.
• Reliance's refinery at Jamnagar was ranked best in Shell Benchmarking for the third
consecutive year in 'Energy and Loss' performance from amongst 50 refineries worldwide.
• Reliance dedicates 23rd January as Shareholder's Day on the occasion of 25 years of the
company going public - A story of Relationship and Trust.
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38. • BSES, one of the premier utility companies of the country, engaged in the generation,
transmission and distribution of electricity becomes part of the Reliance Group and Mr. Anil D
Ambani is appointed its Chairman.
2002-2003
• Reliance Infocomm to launch various telecom services on 28th December - beginning
with Gujarat, the Infocomm revolution will cover thousands of villages and hundreds of cities
across the country. Reliance Infocomm will become a major catalyst for changing the face of
India and improving the quality of life of Indians.
• Reliance announced India's biggest gas discovery in nearly three decades and one of the
largest gas discoveries in the world during 2002. The in place volume of natural gas is in excess
of 7 trillion cubic feet, equivalent to about 1.2 billion barrels of crude oil. This is the first ever
discovery by an Indian private sector company.
• Reliance acquired control of Indian Petrochemicals Corporation Limited (IPCL) - India's
second largest petrochemicals company.
2001-2002
• Reliance signed MOU with DuPont Polyester Technologies to license the revolutionary
resin technology NG-3 from DuPont. Reliance announced its plan for the expansion of PET
capacity by 220,000 tonnes per year.
• The merger of Reliance Petroleum Limited with Reliance Industries Limited was
announced - largest ever merger in India - Reliance Industries became the largest private sector
company in India on all major financial parameters including sales, profits, net worth, assets,
and exports.
• DhirubhaiAmbani was conferred The Economic Times Award for Corporate Excellence
for Lifetime Achievement.
2000-2001
• Reliance Industries Ltd. and Reliance Petroleum Ltd. became India's two largest
companies in terms of all major financial parameters.
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39. 1999-2000
• Jamnagar Petrochemicals and integrated refinery complex commissioned
O World's largest grassroots refinery - 27 million tpa refinery, the 5th largest in the world.
O World's largest PX Plant of 1.4 million tpa
O World's largest PP Plant of 0.6 million tpa
O World-class product handling, storage, and dispatch facilities.
1998
• DhirubhaiAmbani was awarded the Dean's Medal by the Wharton School, University of
Pennsylvania, USA, for setting an outstanding example of leadership.
• Reliance completed phase-II expansion of Hazira Petrochemicals Complex including
world's largest multifeed cracker, PET plant, MEG plant, PTA plant, PE plant
1996-1997
• First corporate in Asia to issue 50 and 100 years bond in US debt market
• Reliance became the first private sector company to be rated by international credit
rating agencies. S&P rated BB+, stable outlook, constrained by the Sovereign Ceiling. Moody's
rated Baa3, Investment grade, constrained by the Sovereign Ceilings.
1995
• Net profit crossed the Rs 1,000 crore mark (Rs 1,065 crores or US$ 338 million),
unparalleled in the Indian Private sector
1994
• Reliance offered the second Euro issue of GDR
1993
• Reliance Petroleum Limited public issue - India's largest public offering.
• Reliance pioneered the first ever Euro Convertible Bond issue by an Indian company.
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40. 1992
• Reliance raised funds by pioneering foray into overseas capital markets with first ever
international GDR offering by an Indian corporate.
• Reliance commenced the production of High Density Polyethylene (HDPE) at Hazira.
1991
• Reliance commissioned phase-I of Hazira Petrochemicals Complex - consolidated its
position in polyesters and entered into attractive polymers business - started VCM and PVC
plants.
1988
• Reliance started the PX plant at Patalganga
1987
• Reliance commenced the Linear Alkyl Benzene (LAB) plant at Patalganga
1986
• Reliance started PTA plant at Patalganga.
• Reliance commissioned Polyester Staple Fiber (PSF) plant at Patalganga.
1985
• Reliance entered phase-II of the Polyester Filament Yarn (PFY) plant at Patalganga.
1982
• Reliance launched phase-I of the Polyester Filament Yarn (PFY) plant at Patalganga.
1977
• Reliance went public with IPO - DhirubhaiAmbani introduced equity cult in India, a new
model of business leadership from a base of the broadest public shareholding.
MAJOR SEGMENTATION UNDER RELIANCE RETAIL
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41. Fig 2.3: major segmentation under reliance retail
Reliance fresh in the convenience store format which forms part of the retail business of reliance
industries of Indian which is headed by MUKESH AMBANI. Reliance plans to invest in excess
of 250 billion in the next 4 years in their retail division.
A typical reliance fresh store is approximately 3000-4000 square feet and caters to a catchment
area of 2-3 km. The company may not stock fruit and vegetables in some states. Through
reliance fresh is not exiting the fruit and vegetable business altogether, it has decided not to
complete with local vendors partly due to political reasons, and partly due to its inability to
create a robust supply chain. This is quite different from what the firm had originally planned.
2.1.2 Vision
To be amongst the most admired and most trusted integrated and utility companies in the world,
delivering reliable and quality products and services to all customers at competitive costs, with
international standards of customer care- therefore creating superior value for all stakeholders.
2.1.3 Mission
• To attain global best practices and become a world class utility
• To create world class assets and infrastructure to provide the platform for faster,
consistent growth for India to become a major world economic power
• To achieve excellence in service, quality, reliability, safety and customer care
• To earn the trust and confidence of all customers and stakeholders exceeding their
expectations and make the company a respected household name
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42. • To work with vigor, dedication and innovation with total customer satisfaction as the
ultimate goal
• To consistently achieve high growth with the highest levels of productivity
• To be technology driven, efficient and financially sound organization
• To be responsible corporate citizen nurturing human values and concern for society, the
environment and above all people.
• To contribute towards community development and nation building.
• To promote a work culture that fosters individual growth, team spirit & creativity to
overcome challenges and attain goals.
• To encourage ideas, talent and value system.
• To upload the guiding principles of trust, integrity, and transparency in all aspects of
interactions and dealings.
GRADES&DESIGNATION IN RELIANCE RETAIL
Fig 2.4: Grades & designation in reliance retail
Distinguished awards at the 24th
annual national convention on quality concepts (NCQC- 2010)
Dahej manufacturing division’s QCD (Sangehhatvam), GCU (uday) and RGSS (Suraksha) won
gold award and EOEG (Drishti) won silver awards at the 21st
Gujarat state level annual
convention on quality concepts- 2010.
2.1.4 Products/ services:
The company expanded into textiles in 1975. Since its initial public offering in 1977, the
company has expanded rapidly and integrated backwards into other industry sectors, most
notably the production of petrochemical and the refining of crude oil
The company from time to time seeks to further diversify into other industries. The company
now has operations that span from exploration and production of oil and gas to the manufacture
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43. of petroleum products, polyester products, polyester intermediates, plastics, polymer
intermediates, chemicals and synthetic textiles and fabrics.
The company’s major products and brands, from oil and gas to textiles are tightly integrated and
benefits from synergies across the company. Central to the company’s operations is its vertical
backward integration strategy; raw materials such as PTA, MEG, Ethylene, propylene and
normal paraffin that were previously imported at a higher cost and subject to import duties are
now sourced from within the company. This has had a positive effect on the company’s
operating margins and interest costs and decreased the company’s exposure to the cyclicality of
markets and raw material prices. The company believes that this strategy is also important in
maintaining a domestic market leadership position in its majority product lines and in providing
a competitive advantage.
2.1.5 Services
• Industrial
o 24/7 Emergency service
o Commercial sign printing
o Hose and fitting supply
o Oilfield drilling equipment supply
o Pressure testing.
o Safety supply, service and testing
o All service are available 24/7
2.1.6 Design and manufacturing
o Engineered hydraulic system
o Mechanical services
o Machine shop services
o Hydraulic system maintenance and repair
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44. 2.1.7 Areas of operation
The company’s operations can be classified into
 Petroleum refining and marketing business
 Petrochemicals business
 Oil and gas exploration& production business
 Reliance power
 Reliance insurance
 Reliance communication
 Reliance retail
 Reliance steel and aluminum
 Reliance cement
 Reliance finance
 Reliance instruction
 Reliance textiles
 Reliance fiber intermediaries
 Reliance plastics
 Reliance polyester
 Others
Their operation in India
• Delhi
• Mumbai
• Bangalore
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45. • Other major city in India
The company has the largest refining capacity at any single location
The company is
• Largest producer of polyester fiber and yarn
• 5th
largest producer of par xylene(px)
• 5th
largest producer of polypropylene(pp.)
• 8th
largest producer of purified terephthalic acid(PTA)&mono ethylene glycol
2.1.8 Infrastructure facilities:
The management of reliance group determines, provides and maintain the infrastructure it needs
to achieve conformity to product, including
 Buildings ,work space and associated utilities
 Process equipment, laboratory facility
 Supporting services(transport and communication)
World class contact Centre infrastructure facilities readily available. Reliance infrastructure
limited i.e. Rinfra is one of India’s fastest growing companies in the infrastructure sector.it ranks
among India’s top listed private companies on all major financial parameters ,including
assests,sales,profits and market capitalization.
Rinfra companies distribute more than 36billion units of electricity to over 30 million consumers
across an area that spans over 124300 sq. kms and includes India’s two premier cities Mumbai
and Delhi. The group generates over 940 mw of electricity through its power stations located in
Maharashtra, andhrapradesh, Kerala, Karnataka and goa.
Rinfra has emerged as the leading player in India in the engineering, procurement and
construction (epc) segment of the power.
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46. In the last few years, Rinfra has expanded its footprint much beyond the power sector. Currently
Rinfra group is engaged in the implementation of projects not only in the field of generation
,transmission ,distribution and trading of power but also in other key infrastructure areas such as
highways,roads,bridges,metro rail and other mass rapid transit systems, special economic
zones ,real estate etc.
2.1.9 SWOT ANALYSIS
STRENGTHS
 Pioneer in the industry, largest market share and capitalization.
 Highly strategic human resource management and development, it invests time and
money in training people and retaining them.
 Development and innovation are high at reliance retail ltd. With regards to it
 Products and consumer preferences and lifestyle changes which keep it’s ahead of its
competitors.
 Adoption of EVERYDAY LOW PRICE strategy.
WEAKNESS
 Each business line face competition from specifically companies.
 Still people are having confusion regarding product pricing of the store.
 Since reliance retail limited sell products across many sectors, it may not have the
flexibility of some more focused competitors.
Opportunities
 India is the one of the largest consumer markets in the world.
 Organized retail is only 3% of the total retailing market in India .it is estimated to grow
at the rate of 25-30% p.a.and reach INR 200000+CRORE by 2016.
 Growth of the income level and spending capacity of targeted customer group.
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47.  Growing consumer preferences towards one shop shopping
Threats
 Bottleneck impact on business growth from the local kirana shops and local market
 The world retail giant like Wal-Mart ,mark spencer has entered in to Indian retail ,market
 A slow economy or financial slowdown could have a major impact on reliance retail
limited business and profits
2.1.10 Competitors
Major competitors in India
The Indian retail sector has been euphoria over the last years .the top player of Indian retail
industry are as follows.
1) Big bazar: it is a chain of department stores in India, currently with 75 outlets .it is
owned by the retail India ltd, Future group.
2) Pantaloons retail India ltd : it is India’s leading retail company with presence across food
fashion ,home solutions, and consumer electronics, books and music,health,wellness and
beauty ,general merchandise ,communication products ,e-tailing and leisure and
entertainment.it has over 450 stores across 30 cities in India and employees over 18,000
people .
3) Subhiksha: it is retail chain with more than 760 outlets selling groceries, fruits,
vegetables, medicines and mobile phones .it was started and is managed by
Mr.R.Subramaniam, IIM Ahmedabad alumni.
4) Food world: it is a chain of supermarket stores .it was started in may 1996.as a division
of spencer and co, a part of the RPG group in august 1999 it became a separate company.
Currently it operates 89 stores in Bangalore, Chennai, Coimbatore, erode, Hyderabad,
kodai, Pondicherry, punesekanadrbadh, Salem, Trivandrum and Vellore.
5) Bharthi retail: it’s a wholly owned subsidiary of bharathi enterprices.it has joint venture
with world retail giant wallmart.it has got a cash & carry forward of retail. Bharthi retail
which is headed by Sunil Mittal, chairman of bharti group.
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48. 6) Lifestyle: it is part of the landmark group Dubai based retail chain. Lifestyle began
operations in 1988 with its first store in Chennai in 1999 and now has 13 lifestyle stores,
5 home centers and 1 baby shop store across Chennai, Hyderabad, Bangalore, Gurgaon,
Delhi, Mumbai, and Ahmedabad.
7) Shoppers stop: the foundation of shoppers stop was laid on October 27,1991 by the K
rahejacorp.group of companies shoppers stop aims to position itself as a global retailer.
Shoppers stop has become the highest benchmark for the Indian retail industry shoppers
stop is the only retailer from India to become a member of the prestigious
intercontinental group of department stores.
8) Trent: it is the retail arm of the TATA group, started in 1998, Trent operation Westside,
one of the many growing retail chains in India .the Company has a turnover of Rs 357.6
crores and currently operates 222stores in the major metros and mini metros of India.
9) Vishal mega mart: it is one of the fastest growing retailing groups in India. Its outlets
cater to almost all price ranges.Mr.Ram Chandra Aggarwal is founder of this group.in the
fiscal year 2007b the group had turnover 6026+ million .the Vishal stores offer affordable
family at prices to suit every pocket.
2.1.11 Achievements and projects
 It was recently honored with the ‘Jobseeker’s employer of choice’ award by the
CNBC-TV18 GROUP
 It was recently awarded the ‘Retailer of the Year’ award.
 It was recognized as one of six companies that uses SAP technology for its products.
 Reliance Retail is recognized as an outstanding business leader worldwide for its
multiple career options. It was honored for its development of mobile applications
2.1.12 Financial Analysis
a) GROSS PROFIT RATIO
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49. Gross Profit. Ratio
Table 2.1: Gross profit Ratio in the year 2010 to 2014
year Gross
Profit
Net Sales Ratio
2010 -5.24 276.08 -1.898
2011 -2.73 580.75 -0.4701
2012 1.9 86.18 2.20469
2013 71.41 9,126.03 0.78249
2014 582.49 12,694.47 4.58853
Sources: Company Annual Report
FIG 2.5:Gross profit Ratio in the year 2010 to 2014
Interpretation:
From the above chart showing it is found that the company Gross Profit ratio is increased in the
year 2010 to2011 from -1.898 to -0.47008 and then in the year 2012, it is increased to 2.204688,
then in the year 2013 it is decreased to 0.782487, and during 2014 year Gross profit ratio is
increased to 4.588533.
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50. b) NET PROFIT RATIO:
Net Profit. Ratio
Table 2.2: Net Profit Ratio in the year 2010 to 2014
Year Net
Profit
Net Sales Ratio
2010 18.22 276.08 6.5995
4
2011 -24.07 580.75 -4.1446
2012 -0.51 86.18 -0.5918
2013 -135.21 9,126.03 -1.4816
2014 272.07 12,694.47 2.1432
2
Fig 2.6: Net Profit Ratio in the year 2010 to 2014
Interpretation:
Above the chart Net Profit ratio as I mentioned above it helps to judge performance over time.
Here year by year Net Profit ratio decreases it mainly because it is high volatility in the market
conditions
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51. c) RETURN ON ASSET RATIO:
Return on Asset Ratio
Table 2.3: Return on Asset Ratio in the year 2010 to 2014
Year Net Profit Total Assets Ratio
2010 18.22 5,737.76 0.31755
2011 -24.07 5,699.30 -0.4223
2012 -0.51 8,898.18 -0.0057
2013 -135.21 5,933.89 -2.2786
2014 272.07 7,183.41 3.78748
Fig2. 7: Return on Asset Ratio in the year 2010 to 2014
Sources: Company Annual Report
Interpretation:
From the results its clearly shows during the year 2009-10 to 2012-13 it is year by year ROA
ratio decreasing even through there is a increase in the Net profit. Then year 2014 ROA
increased in -2.27861 to 3.787477. Here company planned to have a more assets so because of
that ROA decreased.
d) TOTALASSET TURNOVER RATIO
Total Asset Turnover Ratio
Table 2.4: Total Asset Turnover in the year Ratio 2010 to 2014
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52. Year Net Sales
Total
Assets
Ratio
2010 276.08 5,737.76
0.0481
2
2011 580.75 5,699.30 0.1019
2012 86.18 8,898.18
0.0096
9
2013 9,126.03 5,933.89
1.5379
5
2014 12,694.47 7,183.41
1.7671
9
Sources: Company Annual Report
Fig 2.8: Total Asset Turnover in the year Ratio 2010 to 2014
Interpretation:
From the above chart showing the Total Assets Turnover ratio, it is increasing in the year 2010-
2011 the ratio is 0.048 to 0.101898 , and then it is decreased to 0.009685 in the year 2012 and it
is again increased to 1.53 in the year 2013,and again it is high increased to 1.76 in year 2014.
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53. CHAPTER 3
EMPLOYEE ATTRITION

54. 3.0 Human resource management
HRM is a function in organization designed to maximize employee performance in service of
the employer’s strategic objective .HR is primarily concerned with how people are managed
within organization, focusing on policies and systems .HR departments and units in the
organization are typically responsible for a number of activities ,including employee
recruitment, training and development, performance appraisal and rewarding .HR is also
concerned with industrial relations that is the balancing of the organization practices with
regulation arising from collective bargaining.
Employee retention
Refers to the ability of an organization to retain the employees .employee retention can be
represented by simple statistics .however many consider employee retention as relating to the
efforts by which employees attempt to retain employees in their workforce .in this sense
retention become the strategies rather than outcome.
Talent retention:
The talent retention is critically important for all the organization for two main reasons.
o Turnover is expensive
o Top performers drive business performance.
The technology support to retain top talent are:
o Recruit the right people in the right place
o Improve the line manager’s ability to manage.
o Give employees constant feedback about clear, meaningful goal
o Empower employees to manage their own careers.
o Proactively drive talent mobility.
o Continuously measure and improve retention strategies.
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55. 3.1 Meaning and definition of attrition
Attrition by definition means the exit of an employee from an organization, department or team.
The perspective has to be a team at least because the relative significance of the attrition is
understand in perspective of the group; the employees was working in/with.
Treatment of individual attrition is also important, but only in qualitative sense .we will focus on
qualitative sense of attrition.
 RESIGNATION:
Employees on her/his own accord decides to leave the group, intimates and confirms the
intention of the exit to the concerned authority and exits the system as per guidelines.
 Absconding:
Employee doesn’t show up in scheduled or regular/time without prior intimation or
permission and doesn’t inform the cause for sufficient delay.
 Termination:
Employee is asked to leave the organization as per decision taken by authorities for
suitable reason.
 Transfer:
Employee’s leaves the current group within the organization to join another group.in
his case the attrition is for the group the employees is leaving.
“A reduction in the number of employees through retirement, resignation or death”
3.2 Calculating attrition rate
Timeline driven analysis of the attrition is important to know the turnover of employee by
factor of time. Here a unit of time should be minimum a week and can be year also. However
generally it is taken as a month. We can team each unit as a period.
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56. Timeline driven analysis can fairly forecast the forthcoming attrition for subsequent years.it
trended properly.it also gives a scope of extrapolating the present trend to look at the possible
future, within a year. Primarily it facilitates the comparative analysis of the different group that
have the performance of group managers matched against each other. This comparison can be
done period to arrive at incremental performance of each manager and one against the other.
Attrition can be calculated with a very simple formula. However, there are variants of attrition
formula that 5 solve different or they also ensure the correctness in large sets.
3.2.1 Periodic attrition
Attrition calculated for the each period that can be week, for night, month, quarter or a year.
The result is expressed in percent.
3.2.2 Annualized attrition
When the periodic attrition is visualized with a view of the year or rather inflated a year.it is
called as annualized attrition. If is simply annualizing the periodic by multiplying it by number.
Sometimes it is necessary to figure out the turnover from the beginning of the year until
now. This would entail the calculation to start from the beginning of the year until now. This
would entail the calculation to start from the beginning of the year .this depends on the year
beginning as defined by the organization.
3.3 MARKET DRIVEN ANNALYZING ATTRITION
Attrition lies between the cause and effect of market dynamism with respect to the
organization. Market changes makes it happens and it happens and it makes changes in market
also. What we would attempt here is, to understand the quantitative analysis clarifying the
attrition and it causes effect on the organization from market point of view.
To understand the same, let’s list down the different kind of attrition first. Please keep mind that
above timeline driven calculation we applied to each other market driven analysis to arrive at
calculable results.
3.3.1 Infant mortality
Infant mortality refers to exit of individuals who are otherwise tenured in market, but exit
the organization within a year. This happens primarily due to adaptability issue in the
organization.
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57. 3.3.2 Launch paid
Launch refers to a situation where fresh individuals experience in the market exit the
organization within a year. These are individual who are using the organization to launch their
career without commitment to the current role.at any period the launch pad periodic attrition %
should not exceed 10-20%.this adds up to the coat of the attrition to an extent that affects the
operating margin negatively and skews the profitability in the direction very soon in a financial
year.
3.3.3 Critical exit
The situation of critical exit refers to attrition of resources that are critical to the business to
the business organization. Usually these are the employees of higher cadre are at management or
leadership level.
Cost of leaving such an employee is very high, especially when is efficient, reliable and has been
a part of system for a considerable time.
3.3.4 Weak link
This exits occurring due to poor performance of individuals are not a bad situation, not always
.not until the exits are occurring within 1-2 months of tenure post training.
3.3.5 Standardization
Standardizing the approach to attrition throughout the organization should definitely involve a
vote from all stakeholders who are into people management5. However there can be generic
view to how to go about it giving the nature of how absconding or poor performance would lead
to attrition or how the attrition cost is treated in the organization.
3.3.6 Objectives of the attrition:
o To fulfil the future needs and aspiration of employee in the organization.
o To verify the satisfaction level of the employee in the organization.
o To ensure co-ordination between the employees and the organization
o To protect the interest of the employee in the organization
o To bring out proper working between employees and organization to improve the company’s
image
o To make employees proud of their own company
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58. o To take effort and measures to improve the situation and condition of employment
o To understand the rules and policies followed by the organization.
3.3.7 SCOPE OF ATTRITION:
Normally appointment must be made in accordance with the policy of the company. When
employee temporary as casual staff on a short term basis the principle of good practices outlined
in the policy should be followed. Financial approval for the establish must of a new post as the
filling of a vacancies must be obtained before recruitment.
3.4 The reason for improving attrition:
3.4.1 Skill development
It refers to any motivational theory, personal development is always a high motivator, looking
for a ways to enhance the skills of your employees is good for the business, the customer and the
employees.
Many employees use multiskilling as a way to be more efficient, used correctly, this can also be
seen as a development tool. Employees would be trained in new skills after certain periods of
time and /or reaching a certain performance level. If communicated correctly, this gives
employees sense of achievement and creates variety of a job. This can be achieved without the
need for financial reward, therefore providing motivated staff, who will stay with the business
longer as they move along the skill path, whilst meeting the business need for efficiency.
3.4.2 Communication
Communication is the key to any successful business, there is a need for everyone to
understand the goals of the business.it is important that employees feel part of the brand and
understand what the business is striving for and the part that they have to play in making it
happen. Attrition rate is so high when employees feel disengaged, there have been a number of
good communication example are used to drive change forward and give the employees a voice.
Target need to be aligned and communicated effectively. Result need to be reported and
discussed .many organization now have web based technology to display performance stats and
working patterns. The use of internet sites to display information can also be very effective .we
must use all the communication media we have available ,and remember that what may not see
important to a manager may be crucial to an agent.
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59. 3.4.3 Promotion/progression
Many now view organization work as a career and with the varying roles available from the
traditional path of agent, coach, team leader or a support role in HR. Resources planning, or
finance, there are many opportunities.it is important, therefore that at least some of these
vacancies are filled with internal candidates. This gives employees the knowledge that if they
work hard and do well they have a chance to progress.
It can also be useful to give people opportunities to try our new role. “try before buy”, if you like
.this can be done through secondments, day in the life or development programmers .many
organization have development opportunities designed at finding the next team leader from the
agent population, these schemes could be included the many other support roles available in
today’s organization.
3.4.5 MANAGEMENT STYLE
This area is closely linked to communication. Does an employee feel valued? Do they want to
come to work? There is an old edge. “You don’t leave the business you leave your manager”.
How many times have you heard someone say “the jobs ok but the people are great”? This
shows how important management style is to employees. The organization should be a great
place to work, with an element of fun and hard work. The management approach will go a long
way to achieving these goals.
3.4.6 Work life balance
Work life balance is not easy to achieve .employees have to understand that the business must
meet its customer demands .while the business must understand that employees have external
pressure as well and do all it can to help them.
The introduction of family friendly legislation has forced many organization to look at how they
schedule staff.orgazation have been taken this more flexible approach and developed it for all
employees ,creating a number of lifestyle schedule options that give employees more choice
,while still meeting the business needs. These schedule choices are often created by the
employees through focus groups, always bearing in mind that the business need must be met. All
employees are different and it is would be wrong to assume we know what everyone wants or
needs ,so providing options is a great way of providing a valuable solution for all.
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60. 3.4.7 Employee benefits
Employees who feel that they’re underpaid in comparison to their industry peers experience
drop in morale and an urge to leave the company for a betterpayingemployer.in addition, a lack
of benefits, especially health insurance, can cause your workforce to dwindle because of other
employees who offer same kind of insurance benefits. Offer a wealth of benefits and provide
regular raises so that you care about them and appreciate the jobs that they do.
3.4.8 Work place
An unfit workplace ,such as one that grimy, noisy and dark, cause employees to look for new
jobs and prevents your pulling in additional employees .no one wants to work in an environment
that doesn’t cater to success and achievement. Improve your workplace by ensuring that it
provides proper lighting and amenities and it is clean.
3.4.9 Exit interview
When employee resign attempt to conduct an exit interview .exit interviews serve two purpose
.they offer your insight into why the employees is leaving and save you from legal repercussions
should the employees file a lawsuit because of the way he was way he was treated or because of
working conditions. Ask him through and open ended question as to why he is leaving. Ask him
for suggestion for improving the workplace employees do not have to agree to exit interviews
and may decline one for any reason.
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61. 61 | P a g e

62. CHAPTER 4
DATAANALYSIS AND
INTERPRETATION
4.0 Data Analysis and Interpretation
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63. As a part of this project, a survey was conducted by using a questionnaire which was distributed
to 100 existing employees in the various store and they responded with various suggestions. It
includes the analysis and interpretation of the data with the help of statistical tool like bar graph
on the findings, which gives brief idea about the research; all the data collected with the help of
the questionnaire are analyzed.
The following data analysis has been done based on the response from the employees and
candidates of the firm.
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64. Table 4.1: Number of male and female respondents
GENDER
Frequency Percent
Valid
Percent
C
u
m
u
l
a
t
i
v
e
P
e
r
c
e
n
t
Valid MALE 57 57.0 57.0 57.0
FEMALE 43 43.0 43.0 100.0
Total 100 100.0 100.0
Fig 4.1: Number of male and female respondents
Analysis & Interpretation
The above table and graph indicates that 57 % of the respondents are males and 43% are
females. The above chart clearly shows that reliance retail store has more number of male
associates compared to female. There are many male employees than female, but the company
prefer more of male candidates for loading and unloading of stuffs that come into the store.
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65. Table 4.2: Age group of Associates
AGE
Frequency Percent Valid Percent Cumulative Percent
Valid 18-25 65 65 65 65
25-30 32 32 32 97
30-35 3 3 3 100
Total 100 100 100
Fig 4.2: Age group of Associates
Analysis and interpretation
The above table and graph indicate that 65% of the respondents are in the age group of 18-25
years, 32% in 25-30 years and 3% are 30-35 years .from the above data it can be clearly
interpreted that the majority of the workforce attracted for the position of Associates at reliance
retail store are youth belonging to the age group 18- 25 years.
Table 4.3: showing the marital status of Associates
MARITALST
ATUS
Frequency Percent Valid
Percent
C
u
m
u
l
a
t
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66. i
v
e
P
e
r
c
e
n
t
Valid MARRIED 27 27.0 27.0 27.0
SINGLE 73 73.0 73.0 100.0
Total 100 100.0 100.0
Fig 4.3: Marital status of associates
Analysis and Interpretation
The above table and graph indicate that 73% of the respondents are single, 27 % are married.
From the above data it is clear that the majority of the workforce at reliance retail stores are
youth belonging to the age group of 18-25 years.
Table 4.4: Current role employee at Reliance retail store
DESIGNATIO
N
Frequency Percent Valid Percent Cumulative Percent
Valid CSA 67 67 67 67
SUPERVISOR 21 21 21 88
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67. ASM 3 3 3 91
SM 2 2 2 93
PART TIMER 7 7 7 100
Total 100 100 100
Fig 4.4: Current role in reliance retail
Analysis & interpretation
It can be clearly seen that majority of the respondents around 67% are CSA (customer sales
associates), 21% are supervisor, and ASM (assistant store manager) is around 3% are SM (store
manager), 7% are part timers.
Table 4.5: Education qualification of an employees
EDUCATION
Frequency Percent Valid Percent C
u
m
u
l
a
t
i
v
e
P
e
r
c
e
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68. n
t
Valid 10-12 63 63.0 63.0 63.0
GRADUATE 28 28.0 28.0 91.0
OTHER 9 9.0 9.0 100.0
Total 100 100.0 100.0
Fig4.5: Educational qualification of a employees
Analysis and interpretation
From the above table and graph indicate that 63 % of the respondents are having education
between 10-12th
standard,28 % are graduates ,and remaining 9% of the people are belongs to
other educational background.
From the above data it is clearly interpreted that the majority of the workforce attracted for the
position of CSAs at reliance retail store are having education between 10 to 12th
standard.
Because the salary offered for this people will be less compared to others. Only 28 % of the
workforce are graduates and around 9% belonging to other educational background.gradutes are
paid little higher than other class of employees.
Table 4.6: Number of years worked for current role
CURRENT_RO
LE
Frequency Percent Valid Percent Cumulative Percent
Valid <6MONTH 55 55 55 55
6MONTH-1.5 YEARS 25 25 25 80
1.5-2 13 13 13 93
2> 7 7 7 100
Total 100 100 100
Fig 4.6: Number of years worked for current role
Analysis and interpretation
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69. From the table and graph it is clear that 55 % of the respondents are working in reliance retail
stores from less than 6 month, and 25 % of employees who’s is working between 6 month to one
year, 13% of respondents working in reliance retail stores from 1.5 to 2 years and only 7% of the
employees are working in reliance retail stores from more than 2 years. From the above data it is
clear that the majority of the workforce stays in the reliance store for a shorter period of time.
Employees are not satisfied with work. Employees are leaving the organization at a greater rate
due to several reason.
Table4.7: Years of service for previous role.
PREVIOUS_R
OLE
Frequency Percent Valid Percent Cumulative Percent
Valid <6 MONTH 28 28 28 28
1-1.5 YEARS 25 25 25 53
1.5-2 15 15 15 68
2> 32 32 32 100
Total 100 100 100
Fig 4.7: Number of years of service for previous role
Analysis and Interpretation
The above data shows that the respondents who stayed for less than 6 month in the previous role
is around 28 % ,25 % of the employees worked for a period of 1-1.5 years, around 15 % of
respondents worked for a period of 1.5- 2 years and 32 % of the employees stayed and worked
for previous role is more than 2 years. From the above data it is found that the respondents are
happy in their previous role compared to current role. Employees are not satisfied what they are
getting in return for their work.
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