retail

1. Organized Retail sector in India
by Chirag Esrani
BBA I B
PSIT

2. • Retail industry accounts for 35% of our GDP
• Estimated industry size - USD 205 bn (INR 230,000
cr) in 2004.
• Highest number of outlets per capita - 12 million
outlets
• Lowest per capita retail space - 2 sft per person as
compared to 16 sft per person in USA
• Only 4% of the country’s outlets are larger than 500
sft
Source: KSA Technopak
Current Retail scenario in India
India’s retail setup is therefore crowded with small outlets, largely
disorganized and primarily owner managed

3. Organized Retail
Organized Retail arrived in India in the 90’s
• 1999 Rs 550 Crore
• 2002 Rs 4,000 Crore
• 2004 Rs 28,000 Crore
• 2005 Rs 35,000 Crore

4. Organised Retail Penetration

5. Retail – the largest private industry in world economy
Source : Euromonitor, European Chemical Industry Council: Automotive News; Wall Street Journal; Chemical market
Reporter; IDATE; Global Vantage
0.3
0.8
1
1.1
1.2
1.4
2
3.2
5.1
6.6
Pharmaceuticals; diagnostice
telecom
Automotive
Electronics
Energy
Chenmicals
Packaged goods
Construction / Engineering
Financial services
Retail
Sales (USD Trillion) 1999

6. Retailing – the largest private industry in the world
• Over 50 of the Fortune 500 companies are retail
companies.
• 25 of the Asian top 200 companies are retail
companies.
• The world’s largest company is a retail company.
(Wal-Mart – last valued at Rs 1,091,250 crore)

7. Development Curve of Organised Retail

8. Currently estimated at 92 Mn the middle class (family income
between INR 200,000 – 10,00,000 p.a.) is expected to be around
153 Mn by 2010
Growth Drivers – Middle Class Population

9. India is one of the most
youthful countries in the
world with 53% of the
population less than 25
yrs of age
Growth Drivers - Young & rapidly evolving
consumers
Within a decade the number of people in age group of 20 – 49 would
increase 30% from 395mn in 2000 to 510 mn in 2010

10. Growth Drivers – Retail Infrastructure
• India will have 225 malls by 2007 spread over 50 cities
• Relaxation in FDI in Real Estate to give further impetus
• Real Estate Mutual Funds ( REMFs) & Real Estate Investment
Trusts ( REITs) comes to India

11. Retail – Largest Employer in the World
Increased employment opportunities
- The annual employee turnover of Wal-
Mart is more than the entire workforce of
General Motors
- 18% of the US workforce is employed in
retail