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Final Ppt Rural Retail

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Final Ppt Rural Retail

  1. 1. Presented By Uday Mishra GSBA Gr. Noida [email_address] 9891683518 June 7, 2009
  2. 2. <ul><li>DEFINING RURAL INDIA </li></ul><ul><li>RURAL RETAIL SCENARIO IN INDIA </li></ul><ul><li>REGULATIONS AND POLICIES IN RURAL RETAIL </li></ul><ul><li>SIGNIFICANT PLAYERS – </li></ul><ul><li>goderj adhar </li></ul><ul><li>itc -chaupal </li></ul><ul><li>hariyali kisan bazaar </li></ul><ul><li>BUSINESS MODEL OF ITC </li></ul><ul><li>IMPEDIMENTS & RECOMMENDATIONS </li></ul>June 7, 2009
  3. 3. Census of India defines Rural Settlements as...... Population lower than 5,000 persons Population density lower than 400 persons/sq. km At least 75% of male population engaged in Agri. activities. June 7, 2009
  4. 4. <ul><li>RETAIL TOWARDS RURAL AREAS </li></ul><ul><li>GREAT OPPORTUNITIES FOR MARKETER </li></ul><ul><li>THE INDIAN RURAL MARKET </li></ul>June 7, 2009
  5. 5. <ul><li>Rural India consists of 720 Million consumers across 6,38,000 villages </li></ul><ul><li>--- 17% of these villages account for 50% of the rural population and 60% of the rural wealth </li></ul><ul><li>----Extensive reach is required as to cover 50% market 1,00,000 villages must be catered Immense opportunity amounting to US$ 125 billion </li></ul>June 7, 2009
  6. 6. <ul><li>Rural Retail is growing @ 7% p.a. </li></ul><ul><li>Rural consumption is also shifting from basic food grains to fruits, vegetables, dairy and poultry products, as well as beverages </li></ul><ul><li>Demand for better quality food leading to huge demand for basic foods </li></ul>June 7, 2009
  7. 7. June 7, 2009
  8. 8. <ul><li>The Rs 140,000 crore rural retail market is expected to cross Rs 180,000 crore mark by 2010, And up to Rs 240, 000 crore by 2015 (CII). </li></ul><ul><li>The rural revolution is driven by </li></ul><ul><li>R ising purchasing power, </li></ul><ul><li>Changing consumption patterns, </li></ul>June 7, 2009
  9. 9. <ul><li>increased access to information and communication technology, </li></ul><ul><li>improving infrastructure </li></ul><ul><li>increased government initiatives to boost the rural economy , </li></ul>June 7, 2009
  10. 10. June 7, 2009 OCCUPATIONS URBAN RURAL Cultivator 5 40 Petty Shopkeeper 15 5 Wage earner 20 35 Salary earner 40 20 Others 18 8
  11. 11. US China India Total Retail 2325 323 180 Value $ bn % Salience to above Traditional 15 80 98 Modern 85 20 2 Source: Census 2001, IRS 2006, AC Nielsen Source: AC Nielsen June 7, 2009
  12. 12. <ul><li>Is a value seeker </li></ul><ul><li>Seeks comforts and amenities </li></ul><ul><li>Does not wish to be seen as the </li></ul><ul><li>deprived cousin. </li></ul><ul><li>Does not experiment easily but </li></ul><ul><li>this does not mean that “he would not change”. </li></ul><ul><li>Values local relationships because </li></ul><ul><li>of unfavourable past experiences </li></ul>June 7, 2009
  13. 13. 1. Essential commodity act : The fertilizer industry is centrally regulated by the government through an administered pricing mechanism & sales allocation under Essential Commodities Act (ECA). In the year 2002-03, the government announced a long term Pricing policy for urea. 2. Indian Land Acquisition Act 1894 3. Agricultural Produce (Grading & Marking) ACT, 1937 (ACT No. 1 of 1937)(as amended up to 1986) June 7, 2009
  14. 14. 5 4 Non Agricultural Use Clearance-- 5. Under PN4/2006 -- 100% FDI is allowed through the automatic route in -Floriculture, Horticulture, Development of Seeds, Animal Husbandry Pisciculture, aqua-culture, cultivation of vegetables, mushrooms, under controlled conditions and services related to agro and allied Sectors. 6. Intra state agricultural land taxes -- vary, prompting the current finance-minister to moot for a common GST (Goods and services tax) which would help in bringing all the various state taxes under a common fold including the agricultural income taxes levied individually state to state. June 7, 2009
  15. 15. <ul><li>GODREJ ADHAR </li></ul><ul><li>ITC-CHAUPAL </li></ul><ul><li>HARIYALI BAZAAR </li></ul>June 7, 2009
  16. 16. FORMAT OF GODREJ ADHAR FMCG products, fertilizers, animal feed, etc. Services like banking, insurance, pharmacy, postal services and petrol pumps June 7, 2009
  17. 17. services offered crop advisory services, soil & water testing services; buy back of output, crop finance, supply of agri inputs and animal feeds, transfer of information (weather, price, and demand supply), door delivery of products etc. June 7, 2009 A COMPLETE SOLUTION PROVIDER FOR THE INDIAN FARMERS provides professional guidance with an objective to improve productivity, higher returns and improved cost benefit ratio.
  18. 18. <ul><li>24 outlets in eight rural locations across the country and each outlet services 20 villages in its vicinity </li></ul><ul><li>Godrej Aadhar has already forged JVs with Apollo Pharmacy, Tata Agrico, Bajaj Allianz Life Insurance and HPCL for value added services at the outlets. </li></ul><ul><li>The company plans to set up more than 1,000 stores by 2010. </li></ul>June 7, 2009
  19. 19. The Trusted Rural Business Hub Help the customer increase his income, educate the customer, before you sell to the customer June 7, 2009
  20. 20. <ul><li>Hariyali Kisaan Bazaar </li></ul><ul><li>Mr. Ajay Shriram, Chairman </li></ul><ul><li>Mr. Vikram Shriram, Vice Chairman & MD </li></ul><ul><li>The concept aims to simplify the </li></ul><ul><li>Private label seeds </li></ul><ul><li>Contract farming – vegetables </li></ul><ul><li>Procurement </li></ul>June 7, 2009
  21. 21. DSCL plans to expand to 250-300 outlets by the end of FY 2008-09. Each store covers an area of 3-4 acres and is managed by a team of 7-8 people whom the Company trains continuously. It offers the rural household all farming and consumer products and related services along with financial services under one roof. The company also launched credit services during its second quarter 2007-08, in association with HDFC bank, providing loans for various purposes. June 7, 2009 Hariyali Kisaan Bazaar
  22. 22. June 7, 2009
  23. 23. June 7, 2009
  24. 24. The number of Hariyali outlets now stands at 177, which the company plans to scale up aggressively to around 300 outlets by March 2009. Launched in 2002-03 ‘ Hariyali’ is now present in 8 states across India June 7, 2009
  25. 25. June 7, 2009
  26. 26. June 7, 2009
  27. 27. This concept aims to Provide the power of expert knowledge to even the smallest farmer 2. Information helps farmers secures better price, quality and productivity June 7, 2009
  28. 28. <ul><li>Benefits to farmers include </li></ul><ul><li>Better purchase price of agri-inputs </li></ul><ul><li>Avail information on best farming practices </li></ul><ul><li>Command prevailing market prices </li></ul><ul><li>4 million farmers benefited through 6,500 </li></ul><ul><li>installations covering around 40,000 villages </li></ul>June 7, 2009
  29. 29. By 2012, ITC Vision is to cover 100 thousand villages, which represent 1/6th of rural India, and create more than 10 million e-farmers June 7, 2009
  30. 30. IDEA BEHIND CHAUPAL SAGAR -- MAKE THE POTENTIAL CUSTOMERS --PROVIDE DIFFERENT CUSTOMER SERVICES --REAP THE BENEFIT FROM POTENTIAL CUSTOMER June 7, 2009
  31. 31. <ul><li>A WIDE RANGE OF PRODUCTS FOR ALL SEGMENTS </li></ul><ul><li>TRAINING FACILITIES FOR FARMING COMMUNITY ON SCIENTIFIC FARMING PRACTICES </li></ul><ul><li>GODOWNS FOR STORAGE OF FARM PRODUCE </li></ul><ul><li>INFORMATION CENTER FOR ONLINE WEATHER INFORMATION </li></ul><ul><li>CONTINOUS SERVICES FROM 6AM- 9PM </li></ul>June 7, 2009
  32. 32. <ul><li>ESTABLISHMENT OF ATMs AT MALLS </li></ul><ul><li>AVAILIBILITY OF INSURANCE PRODUCTSFOR FARMERS </li></ul><ul><li>TIE WITH PRIVATE HEALTH CARE SERVICE PROVIDER FOR PRIMARY HEALTH CARE FACILITY </li></ul><ul><li>TIE WITH BPCL FOR FUEL PUMPS </li></ul><ul><li>ESTABLISHMENT OF SOIL TESTING LABORATRIES </li></ul><ul><li>PUBLIC ENTERTAINMENT </li></ul>June 7, 2009
  33. 33. June 7, 2009 ITC FARMERS INSURANCE COMPANY AGRI-INPUT COMPANY AGRICULTURE UNIVERSITIES/STATE AGRICULTURE DEPT INPUT SUPPLY TECHNCAL GUIDANCE MARKETING ASSISTENCE TRAINING
  34. 34. <ul><li>– Increasing costs of land </li></ul><ul><li>– Pace of expansion </li></ul><ul><li>– High operating costs </li></ul><ul><li>– Low margin of agri-inputs </li></ul><ul><li>– Low purchasing power of consumers </li></ul>June 7, 2009
  35. 35. • Lack of literacy and awareness • Low per capita income • Wide geographic spread. • Gaps in road and Telecommunications connectivity. • Lack of reliable electricity and water supply • Limited Distribution network for example cold storage. • Competition from local players June 7, 2009
  36. 36. <ul><li>Farmers get agri-inputs at competitive rates and </li></ul><ul><li>have range of products to choose from </li></ul><ul><li>Increasing rural bank aid (loans) helps improve the </li></ul><ul><li>purchasing capability of farmers </li></ul><ul><li>Farmers avail of the services of agronomists to </li></ul><ul><li>improve their farming practices, thereby impacting </li></ul><ul><li>on their final produce </li></ul><ul><li>Farmers get a better price for their products and </li></ul><ul><li>avoid middlemen </li></ul>June 7, 2009
  37. 37. <ul><li>•  Integration of rural initiatives into business model like ITC </li></ul><ul><li>• Corporate should supplement government efforts & resources (infrastructure development, education system, storage) </li></ul><ul><li>• Creating retail stores which should be rural in nature so that the rural masses identify themselves with these stores. </li></ul><ul><li>• Innovative & Exciting Initiatives such as Village BPO should be given impetus to tap the talent in the rural India. </li></ul>June 7, 2009
  38. 38. June 7, 2009 During the first millennium AD, merchants referred to India as the Bird of Gold, due to the glittering dynamism of its market. Over the next few years, the Bird of Gold is poised to take flight once again.
  39. 39. T H A N K S <ul><li>T H A N K S </li></ul>June 7, 2009
  40. 40. June 7, 2009

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