This document discusses organized rural retailing in India. It provides examples of major organized rural retail models including Hariyali Kisaan Bazaar, Aadhaar Retailing, ITC Choupal Sagar, and Tata Kisan Sansar. These models operate retail stores in rural areas that offer agricultural inputs, consumer goods, services like credit and insurance to serve the needs of local farmers and communities. Organized rural retailing is seen as an important opportunity in India as around 70% of the population lives in rural areas with growing incomes and purchasing power.

1. Organized Rural
Retailing
Name- Aqib Ali
MBA winter batch 4th Semester
JAMIA HAMDARD UNIVERSITY

2. Introduction
 According to the provisional data released by Census India (2011), the
population of India is 1.21 billion comprising rural and urban population that
is 68.84 percent and 31.16 percent respectively.
 India is one of the most attractive destination for retailer across the world.
 India is fifth largest market in the world and ranks fourth among the surveyed
30 countries in terms of global retail development.
 Organised way of modest retailing started in India in 1990's metros but now
India is witnessing high growth not only in big cities but also in tier I and tier
II cities.

3. Introduction
 The retail Indian industries has been emerged as most dynamic and fast paced
industries due to the entry of several key players into the India’s retail
market.
 The Indian retail industry is segregated into two sectors: organized and
unorganized retailing.
 Organized retailing-
-Organized retailing consist of those kind of trading activities which are
undertaken by retailers who are registered for income tax, sales tax etc.
-It occupies just 6-8% share in rural and urban retailing.

4. Introduction
 Unorganized retailing-
-Unorganized retailing mainly includes of local kirana shops, owner managed
general stores, street vendors, convenience stores etc.
-Indian retail sector is mainly dominated by unorganized segment with 92-
94% share.
 After exhausting the urban market companies are looking towards the rural
areas as it comprises of almost half of the domestic retail.
 With rising income level and improving lifestyle of rural consumer, the retail
sector is promising a huge growth in rural India.

5. Rural Retail Market Opportunities
 Around 70% of Indian population lives in rural India and with growing
economic power and education development purchasing power of rural
population is also increasing.
 More than eighty per cent of rural markets in India still do not have access to
any sort of organized marketing and distribution.
 There is sea of opportunities for retailers to serve shoppers in rural and semi-
urban India.
 India Brand Equity Foundation (2011) said that rural India is set to witness an
economic boom, with per capita income having grown by 50% over the last 10
years, mainly on account of rising commodity prices and improved
productivity.

6. Rural Retail Market Opportunities
 For many years, rural India was not much acknowledged by the retailers. But
as the 'bottom of the pyramid' is getting empowered with education, higher
purchasing power and awareness, companies are looking for opportunities in
hinterlands and this will open market further.
 Also government focus on agricultural policies will increase rural earning.
 With exposure to literacy young crowd is becoming brand conscious and this
all are positive signs for opening up of opportunities in rural India.

7. Organised retail model working in
rural India
 Hariyali Kisaan Bazaar
-It is the division of DCM Shriram Consolidated Limited (DSCL)'s Agri-Business.
The company (DSCL) operates in two lines of business – Agri/Rural,
Chemicals and polymers.
-Their Agri-business offerings comprise agricultural inputs, both
manufactured and merchandised, outputs, distribution and services.
-The company initiated a 'Rural Retailing' initiative with the objective to
move towards providing total solutions to the farmers. Hence, it can be said
one-stop shop for meeting farming and family needs of the rural population.
-It has 264 outlets in many villages of eight different states – Haryana,
Punjab, Uttar Pradesh, Rajasthan, Uttrakhand, Madhya Pradesh,
Maharashtra and Andhra Pradesh.

8. Range of Products and Services in
'Hariyali Kisaan Bazaar'
 Retailing
 * Agri-inputs – Fertilizers, Pesticides, Diesel and Petrol (under alliance with
BPCL)
* Farming – Farming instruments, Contract farming
* Others – FMCG, durables, apparels, Seed Processing etc.
 Services
 Insurance – Agriculture, Agronomy advisory, Insurance, Credit etc.
* Others – Output Procurement & Trading

10. TV Commercial of Hariyali Kisaan Bazaar

11. Aadhaar Retailing
 Started in December 2003, Aadhaar Retailing was Godrej Agrovet's rural retail
initiative catering to the growing consumption demand in rural India.
 Godrej Agrovet Ltd., a part of the Godrej Group, is a market leader in animal
feeds, branded chicken, innovative agri- products & oil palm development in
India.
 In March 2008, Aadhar Retailing entered into a joint-venture between Future
Ventures India Limited (FVIL) which held 70 percent stake and Godrej Agrovet
which held rest of the 30 percent stake in Aadhar Retailing Limited.
 FVIL is part of Future Group – an established leader in Indian retail sector. It
had purchased the stake for Rs 30.18 crore from its promoter Godrej Agrovet.

12. Range of Products and Services in
'Aadhaar'
 Retailing
 * Agri-inputs – Fertilizers and Pesticides
* Durables – Mobile phones & accessories, appliances, Kitchenware etc.
* Others – Furniture from Godrej Interio, Toys, Cosmetics, Stationery and gift
items, fresh fruits & vegetables etc.
 Services
 * Credit and Financing – Agriloans to the farmers (by HDFC Bank), Life
insurance (ICICI Prudential) etc.
* Others – food-court, Soil testing and provide advice to farmers.

14. ITC Choupal Sagar
 ITC launched the Choupal Sagar in 2004 and it is one of the first organized
retail forays into the hinterland. Choupal Sagar is a rural hypermarket which
is managed by ITC's agri-business division.
 Farmers can sell their commodities and can buy almost everything including
cosmetics, garments, electronics, appliances and even tractors.
 Currently, there are 24 Choupal Sagars: 11 in Madhya Pradesh, 5 in
Maharashtra and 8 in Uttar Pradesh. With the success of e-Choupal (world's
largest rural digital infrastructure), ITC is engaged in scaling up the rural
retailing initiative to establish a chain of 100 Choupal Sagars in the near
future.
 Local sourcing of vegetables and fruits allows the company to deliver fresh
and save on the expense of a cold chain.

15. ITC Choupal Sagar
 Moreover, ITC's procurement centres functions to provide farmers the option
of selling their produce directly to ITC instead of bringing it to the mandi.
 ITC's Agri Business Division conceived e-Choupal as a more efficient supply
chain aimed at delivering value to its customers around the world on a
sustainable basis.
 It is an initiative to link directly with rural farmers for procurement of
agricultural/ aquaculture produce like soybeans, wheat, coffee and prawns.

17. Tata Kisan Sansar
 Tata kisan sansar is a dedicated network of retail stores created by Tata
Chemicals that act as a one stop shop for farm solutions.
 TKS objective is to provide the farmer with a package of inputs and services
for optimum utilization of balanced primary nutrients, plant protection
chemicals, waters, seeds, post-harvest services, and to develop a genuine
partnership with farmers.
 They operate in northern and eastern India-Punjab Haryana, Uttar Pradesh,
Bihar, West Bengal.
 Over 820 TKS stores in India that reach out to approximately 2.3M farmers.