The retail market in India was valued at INR a trillion in 20-- and is projected to grow significantly due to low organized retail penetration and rising consumer income levels. Key trends include the rise of online and rural retailing, innovative formats, and the relaxation of FDI policies. The sector faces challenges including supply chain inefficiencies and real estate issues, but remains a critical part of the economy, employing millions and contributing substantially to GDP.

1. Retail Market – India
Retail Market India
January 2012

2. Executive Summary
 Retail market in India was valued at INR a tr in 20‐‐ and is expected to grow to INR b tr in 20‐‐
 It accounts for c% of the country's GDP and is the second largest employer with d mn people
Market  Traditional retail formats are fast getting replaced by modern organised retail formats
 Low organised retail penetration in India translates into huge growth potential for this market
g p g g p
Drivers Challenges
– Low organised retail penetration – Insufficiencies in supply chain
Drivers & – Rising income levels and consumerism – Shortage of skilled manpower
Challenges – Growing retail space and mall boom
Growing retail space and mall boom – Real estate issues
Real estate issues
– Increasing availability of credit
– Changing demographics and consumer behaviour
 Emergence of innovative retail formats
Trends  Online and rural retailing
Online and rural retailing
 Integration of various business strategies
 Evolution of Retail FDI Policy
 Current FDI Scenario in Retail
FDI Scenario  Single Brand Retailing in India
Single Brand Retailing in India
 Multi Brand Retailing in India
Major Players
Co pet t o
Competition Player 1 Player 2 Player 3
Player 4 Player 5 Player 6
RETAIL MARKET IN INDIA 2012.PPT 2

3. •Market Overview
•Market Overview
•Drivers & Challenges
•Trends
•FDI Scenario
•Investment Scenario
p
•Competition
•Strategic Recommendations
RETAIL MARKET IN INDIA 2012.PPT 3

4. Retail market in India is poised for strong growth in the
coming years owing to favourable government support
Retail Market – Overview Market Size and Growth
• Indian retail market has experienced high growth
over the last decade with a gradual shift towards INR tr
modern retailing formats
modern retailing formats z%
% y
• It accounts for k% of the country's GDP and is the
second largest employer with l mn people, x
contributing j% of the total employment
• Due to the government now allowing more FDI
g g
relaxations, the retail sector in India is poised for
strong growth in the near future
0
2010 2014e
Share of Major Retail Segments (20‐‐)
Category 1
h% Segment 1
Category 2
Category 3 e% f% g% v%
d% i%
Category 4
Category 4
Low organised retail
Category 5 c%
penetration indicates
Category 6 huge growth potential
a%
Category 6 b%
for this market
Category 7 u%
Category 8 Segment 2
Source:
RETAIL MARKET IN INDIA 2012.PPT 4

5. Drivers & Challenges – Summary
Drivers Challenges
Low organised retail penetration Insufficiencies in supply chain
Rising income levels and consumerism Shortage of skilled manpower
Growing retail space and mall boom Real estate issues
Increasing availability of credit
Changing demographics and consumer
behaviour
RETAIL MARKET IN INDIA 2012.PPT 5

6. Trends – Summary
Online Retailing Rural Retailing
Key
Trends
Integration of various business Emergence of innovative retail
strategies formats
RETAIL MARKET IN INDIA 2012.PPT 6

7. Public: Domestic Company – Player (1/3)
Company Information Offices and Centres – India
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Ticker Symbol
Stock Exchange
Head Office
Products and Services
Products and Services
Category Products/Services
Key People
Category 1 Product 1, Product 2, Product 3
Name
N Designation
D i ti
Category 2 Product 1, Product 2, Product 3
A
Category 3 Product 1, Product 2, Product 3 B
C
D
Source:
RETAIL MARKET IN INDIA 2012.PPT 7

8. Public: Domestic Company – Player (2/3)
Financial Snapshot
i i lS h Key Ratios
K i
Total Income Net Profit/Loss y‐o‐y change
Particulars 2011 2010 2009 2008
(2011‐10)
INR mn INR mn
Profitability Ratios
Operating Margin
Net Margin
Profit Before Tax Margin
Return on Equity
Return on Capital Employed
0
Return on Working Capital
2008 2009 2010 2011
Return on Assets
Financial Summary Return on Fixed Assets
Cost Ratios
• The company incurred a net profit of INR a mn in FY 20‐‐, as Operating costs (% of Sales)
compared to net profit of INR b mn in FY 20‐‐ Administration costs (% of
• The company reported total income of INR c mn in FY 20‐‐, Sales)
registering an increase of d% over FY 20‐‐
registering an increase of d% over FY 20 Interest costs (% of Sales)
Interest costs (% of Sales)
Liquidity Ratios
• The company earned an operating margin of e% in FY 20‐‐, a
Current Ratio
decrease of f percentage points over FY 20‐‐
Cash Ratio
• The company reported debt to equity ratio of g in FY 20‐‐, an Leverage Ratios
increase of h% over FY 20‐‐ Debt to Equity Ratio
Debt to Capital Ratio
b i l i
Key Financial Performance Indicators
Interest Coverage Ratio
Indicators Value (05/01/2012) Efficiency Ratios
Market Capitalization (INR mn) Fixed Asset Turnover
Total Enterprise Value (INR mn) Asset Turnover
Current Asset Turnover
EPS (INR)
EPS (INR)
Working Capital Turnover
PE Ratio (Absolute) Capital Employed Turnover
Source: Improved Decline
RETAIL MARKET IN INDIA 2012.PPT 8

9. Public: Domestic Company – Player (3/3)
Key Business Segments Key Geographic Segments
Segment 1 Segment 3 Segment 1 Segment 3 Segment 5
Segment 2 Segment 4 Segment 2 Segment 4 Segment 6
0% 0%
2008 2009 2010 2011 2008 2009 2010 2011
Key Recent Developments
Description News
• Player is India’s market leader in the social expression industry with over a% market share in the
organized sector and presently has b owned outlets along with c franchised outlets
Overview
• It exports its products to Country 1, Country 2, Country 3, Country 4, Country 5, Country 6, Country 7,
Country 8, Country 9
Country 8 Country 9
• Player has entered into a license agreement in Jan 20‐‐ with company the global market leader in O, to
open up exclusive retail outlets across India
Collaborations
• It also has exclusive tie‐ups with many other global majors such as Company 1 of USA, Company 2,
Company 3, Company 4 and Company 5 of UK
Expansion Plans • It plans to open up f stores within 20‐‐ and around h in three to five years in City 1 and City 2
Source:
RETAIL MARKET IN INDIA 2012.PPT 9

10. Private: Domestic Company – Player (1/3)
Company Information Offices and Centres – India
Corporate Address
Tel No.
Fax No.
Website
Year of Incorporation
Head Office
Products and Services
Products and Services
Brands Products/Services
Category 1 Product 1, Product 2, Product 3 Key People
Category 2
g y Product 1, Product 2, Product 3
, ,
Name
N Designation
D i ti
A
B
C
D
Source:
RETAIL MARKET IN INDIA 2012.PPT 10

11. Private: Domestic Company – Player (2/3)
Financial Snapshot
i i lS h Key Ratios
K i
y‐o‐y change
Total Income Net Profit/Loss Particulars 2011 2010 2009 2008
(2011‐10)
INR mn Profitability Ratios
INR mn
Operating Margin
0
Net Margin
Profit Before Tax Margin
Return on Equity
Return on Capital Employed
Return on Working Capital
Return on Assets
Return on Fixed Assets
0 Cost Ratios
2008 2009 2010 2011 Operating costs (% of Sales)
Administration costs (% of
Sales)
Financial Summary Interest costs (% of Sales)
Interest costs (% of Sales)
• The company incurred a net loss of INR a mn in FY 20‐‐, as Liquidity Ratios
Current Ratio
compared to net loss of INR b mn in FY 20‐‐
Cash Ratio
• The company reported total income of INR c mn in FY 20‐‐, Leverage Ratios
registering an increase of d% over FY 20‐‐ Debt to Equity Ratio
Debt to Capital Ratio
b i l i
• The company earned an operating margin of e% in FY 20‐‐, an Interest Coverage Ratio
increase of f percentage points over FY 20‐‐ Efficiency Ratios
• The company reported debt to equity ratio of g in FY 20‐‐, an Fixed Asset Turnover
increase of h% over FY 20‐‐ Asset Turnover
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover
Source: Improved Decline
RETAIL MARKET IN INDIA 2012.PPT 11

12. Private: Domestic Company – Player (3/3)
Key Recent Developments
Description News
• Player is the retail arm of ABC operating through two formats supermarket and hypermarket under the
Player is the retail arm of ABC, operating through two formats, supermarket and hypermarket, under the
Overview
brand names, x and y
• It plans to open d supermarkets and e hypermarkets by 20‐‐ with an investment of INR f bn
Expansion Plans • It is focusing on expansion of retail store network in semi‐urban and rural areas on the back of its
experience in smaller towns
ll
• At present, Player has over g supermarkets across the country
Retail Network • The company also operates M hypermarkets under the brand h in City 1, City 2, City 3, City 4, City 5 City 6
and City 7
Awards and Recognitions • Player was conferred two awards for 'Private Labels' by T in the categories of ‘N’ and ‘U’
Source:
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13. Thank you for the attention
The Retail Market ‐ India report is part of Research on India’s Consumer Goods Industry
Series.
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