This document summarizes a study of the Indian retail industry supply chain. It analyzes key metrics like cash-to-cash cycle, length of supply chain, supply chain efficiency ratio, and working capital productivity for Pantaloon Retail Ltd and Spencer's Retail Ltd from 2006-2010. The conclusions are that the cash-to-cash cycle needs reducing, length of supply chain is increasing due to expansion, Spencer's has a high inefficiency ratio due to 2009 perturbations, and working capital productivity is low. Limitations are lack of seasonal data and results only apply to the small organized retail sector.

1. Vivek Parekh 2010281 Sankha Dip Dutta 2010207
Debashish Bagg 2010298 Shantanu Pandey 2010212
Sakshi Agarwal 2010206 Shashank shekhar Tripathi 2010213
Benjamin Weber 2010FE01

2. Agenda
• Indian Retail Industry
• Pantaloon Retail Ltd.
• Spencer Retail Ltd.
• Assumptions for the study
• Summary of Results
• Cash to Cash cycle
• Length of the Supply chain in number of days
• Supply chain in efficiency ratio
• Supply chin working capital productivity
• Conclusion and Limitations

3. • 4th Most attractive among emerging markets
• Contributes to 12% to GDP of India
• Employees 25 Million people
• Organized retail 5% of total Market
• Lead players
• Pantaloon Retail India Ltd.
• Spencer’s Retail Ltd.
• Etc.

4. Pantaloon Retail India Ltd.
• Incorporated on 12th Oct, 1987
• Malls in 51 cities
• 78 Hyper markets, 113 Food bazaar etc.
• Leaders in Indian retail Industry
Spencer’s Retail Ltd.
• approx 200 stores
• Started with multi format food retail
• A growing player

5. Assumptions of study
• Days of operation are 365 days a year.
• Inventory carry cost is 20% of total inventory cost.

6. Fig 1: Cash to cash cycle
150
100
50
0
-502006 2007 2008 2009 2010
-100
Pantaloons Spencer Retail Industry

7. Fig 2: Length of Supply chain
200
150
100
50
0
2006 2007 2008 2009 2010
Pantaloons Spencer Retail Industry

8. Fig 3: Supply Chain In efficiency Ratio
0.60
0.50
0.40
0.30
0.20
2006 2007 2008 2009 2010
Pantaloons Spencer Retail Industry

9. Supply Chain Inefficiency Ratio
0.3
Operations / Sales
0.2
Casfhlow from
0.1
0
-0.120% 40% 60% 80% 100%
-0.2
Supply Chain Inefficiency Ratio
Pantaloons Retail Ltd. Spencer Retail Ltd. Retailing Industry
Source: Annual Report and Capitaline

10. Fig 4: Working capital Productivity
500
400
300
200
100
0
2006 2007 2008 2009 2010
Pantaloons Spencer Retail Industry

11. Conclusions and Limitatations
• Conclusion
• Cach to cash cycle needs to be reduced
• Increasing length of supply chain due to intensive expansionary measures
• High in efficiency ratio of Spencer’s due to perturbation of 2009.
• Low productivity of working capital
• Limitations
• Lack of more data restricted for looking at the seasonal variation
• Results cannot be generalized to the complete industry due to 95% of it being un
organized.

12. Thank you
Happy shopping