FDI IN

RETAIL SECTOR

• FDI IN RETAIL – POLICY PERSPECTIVES.

• RETAIL SECTOR – AN OVERVIEW.

• FDI POLICY IN RETAIL - OPPORTUNITIES &

CHALLENGES.

• EMERGING HUMAN RESOURCE CHALLENGES.

• WHAT LIES AHEAD ?

FDI IN RETAIL

POLICY PERSPECTIVE

THE COMMITMENT OF MONEY OR

CAPITAL TO PURCHASE FINANCIAL

INSTRUMENTS OR ASSETS IN ORDER

TO GAIN PROFITABLE RETURNS.

AN INVESTMENT IS..

INVESTMENT DONE BY CITIZENS AND GOVERNMENT OF ONE COUNTRY (HOME COUNTRY) INVEST IN INDUSTRIES OF ANOTHER COUNTRY (HOST COUNTRY).

AN INVESTMENT BECOMES FOREIGN INVESTMENT WHEN..

FOREIGN INVESTME

NT THROUGH

FOREIGN DIRECT

INVESTMENTS

FOREIGN INSTITUTION

AL INVESTORS

AUTOMATIC ROUTE

FDI ROUTES

GOVERNMENT

NO PERMISSION REQUIRED

APPROVAL /LICENSE REQUIRED.GENERAL RULE : NO PRIOR PERMISSION REQUIRED. INFORM RESERVE BANK WITHIN 30 DAYS OF INFLOW/ISSUE OF SHARES.BY EXCEPTION : PRIOR GOVERNMENT APPROVAL NEEDED. DECISION GENERALLY WITHIN 4-6 WEEKS.

FOREIGN DIRECT INVESTMENT PURCHASE OF PHYSICAL ASSETS OR A SIGNIFICANT AMOUNT OF THE OWNERSHIP (STOCK) OF A COMPANY IN ANOTHER COUNTRY TO GAIN A MEASURE OF MANAGEMENT CONTROL.

PORTFOLIO INVESTMENTINVESTMENT THAT DOES NOT INVOLVE OBTAINING A DEGREE OF CONTROL IN A COMPANY.

• 1991- FDI ALLOWED SELECTIVELY UP TO 51% IN

PRIORITY SECTORS.

• 1997-FDI ALLOWED UP TO 100% IN SECTORS LIKE

MINING, MANUFACTURING.

FDI POLICY INITIATIVES

MAIN SECTORS WITH FDI EQUITY/ROUTE LIMIT IN INDIA (YEAR 2007)FDI EQUITY LIMIT-AUTOMATIC ROUTE

INSURANCE – 26% DOMESTIC AIRLINES – 49% TELECOM SERVICES- FOREIGN

EQUITY 74% PRIVATE SECTOR BANKS- 74% MINING OF DIAMONDS AND

PRECIOUS STONES- 74% EXPLORATION AND MINING OF

COAL AND LIGNITE FOR CAPTIVE CONSUMPTION- 74%

FDI REQUIRING PRIOR APPROVAL

DEFENSE PRODUCTION – 26% FM BROADCASTING - 20% NEWS AND CURRENT AFFAIRS-

26% BROADCASTING- CABLE, UP-

LINKING – 49% TRADING- WHOLESALE CASH

AND CARRY, EXPORT TRADING, ETC., -100%

TEA PLANTATION – 100% DEVELOPMENT OF AIRPORTS-

100% COURIER SERVICES- 100%

• 2000-06 FDI ALLOWED UP TO 100% IN SPECIFIED SECTORS.

FDI LIMITS INCREASED.

PROCEDURES FURTHER SIMPLIFIED

• THE TOP 3 INDIAN REGIONS ATTRACTING THE HIGHEST FDI.

MUMBAI, DELHI AND KARNATAKA.

ACCOUNT FOR NEARLY 62% OF THE TOTAL FDI.

FDI POLICY INITIATIVES

ADVANTAGES OF FDI

INCREASE INVESTMENT LEVEL AND THEREBY INCOME & EMPLOYMENT INCREASE TAX REVENUE OF GOVERNMENT FACILITATES TRANSFER OF TECHNOLOGY ENCOURAGE MANAGERIAL REVOLUTION THROUGH PROFESSIONAL MANAGEMENT INCREASE EXPORTS AND REDUCE IMPORT REQUIREMENTS INCREASE COMPETITION AND BREAK DOMESTIC MONOPOLIES IMPROVES QUALITY AND REDUCES COST OF INPUTS

LIMITATIONS OF FDI Flow to high profit areas rather than main concern areas Through their power and flexibility, MNC can undermine economic autonomy and control Sometimes interferes in the national politics Sometimes engage in unfair and unethical trade practices Sometimes result in minimizing / eliminating competition and create monopolies or oligopolistic structures

BARTER SYSTEM

WEEKLY MARKETVILLAGE MELAS

KIRANA STORESCONVENIENCE STORE

GOVERNMENT STORES

SUPER MARKETHYPER MARKETMALLSBRAND OUTLETS

EVOLUTION OF MODERN RETAIL

FDI POLICY PRESENTLY IN INDIAN RETAIL SECTOR

SINGLE BRAND

RETAILING• 51%

CASH AND CARRY

MODEL • 100%

WHY GLOBAL RETAILERS LOOK UP TO INDIA?

INCENTIVES ATTRACT FDI.

HUGE MARKET SIZE AND POTENTIAL ARE SUFFICIENT

INDUCERS.

TAX BREAKS, IMPORT DUTY EXEMPTIONS, LAND AND

POWER SUBSIDIES, AND OTHER ENTICEMENTS.

COMPARISON OF FDI INFLOW.

FDI INFLOWS FROM AUGUST 1991 TO APRIL 2010 WERE

$134.6 BILLION.

FDI INFLOWS FROM 2000-2010 CROSSED $300

BILLION

RETAIL INDUSTRY : AN

OVERVIEW

INDIAN RETAIL SECTOR

GLOBAL RETAIL DEVELOPMENT

INDEX POSITION : 3RD

SIZE : $ 400 BILLION

GROWTH RATE : 13%

GDP CONTRIBUTION : 12%

MAJOR SECTOR : FOOD AND GROCERY

EMPLOYMENT : 2ND LARGEST

INDUSTRY (35.06 MILLION)

TYPES:

ORGANIZED ( 5%)

UNORGANIZED ( 95%)

CONTRIBUTION OF RETAIL TRADERS IN ECONOMY

INDIA HAS LARGEST NUMBER OF RETAIL TRADERS.

INDIA HAS 1,25,00,000 RETAILS OUTLETS.

RETAIL TRADE CONTRIBUTES 10 -11% OF GDP.

TOTAL TURNOVER OF RETAIL SECTOR IS 8,75,000 CRORES.

AFTER AGRICULTURE, RETAIL PROVIDES EMPLOYMENT TO

MAX NUMBER OF PERSONS ( 4 CRORES)

• CORPORATES ARE INCREASINGLY COMING INTO

THIS SECTOR.

• DEMAND OF BRANDED GOODS ON A LARGE SCALE.

• DEMAND OF NEW AND VARIED PRODUCTS.

• HIGH QUALITY PRODUCT IS PREFERRED .

• VARIED WINDOW DISPLAY.

• E-TAILERS INCREASE THE PRESENCE.

EMERGING TRENDS

MAJOR INDIAN RETAILERS : CATEGORIES

FORMAT DESCRIPTION RETAILERS

HYPERMARKETS OFFERING BASKET OF PRODUCT SPENCERS, BIG BAZAAR

CASH AND CARRY BULK-BUYING REQUIREMENT BHARTI-WAL-MART

DEPARTMENTAL STORES LARGE LAYOUT, WIDE MERCHANDISE MIX LIFESTYLE , GLOBUS

SUPERMARKETS HOUSEHOLD PRODUCT AS WELL AS FOOD AS INTEGRAL PART OF THE SERVICE

APNA BAZAAR , FOOD BAZAAR

SHOP-IN-SHOP SHOPS LOCATED IN SHOPPING MALLS NAVRAS ( BIG BAZAAR)

SPECIALTY STORES FOCUS ON INDIVIDUAL PRODUCT TYPE BRAND FACTORY

CATEGORY KILLERS PARTICULAR SEGMENT THE LOFT

DISCOUNT STORES BRANDED PRODUCT AT DISCOUNTED PRICES

SUBHIKSHA, LEVI’S OUTLET

CONVENIENCE STORES SMALL RETAIL STORES IN AND OUT

RETAIL SEGMENT PERCENTAGE HOLDING IN SECTOR

MAJOR RETAILERS

FOOD AND GROCERY 63% RELIANCE FRESH, CAFÉ BRIO, FOOD BAZAAR

CLOTHING, TEXTILE AND FASHION

9% WESTSIDE, SHOPPERS STOP, GLOBUS

JEWELLERY 5% TANISHQ

CATERING SERVICES 5% IRCTC

CONSUMER DURABLE 4% VIVEKS, VIJAY SALES, CROMA

PHARMACEUTICALS 4% PIRAMAL GROUP

ENTERTAINMENT 3% BOWLING CO.,

FURNISHING, UTENSILS 3% HOMETOWN, TANGENT CONCEPT

MOBILE HANDSETS 2% THE MOBILE STORE,

SEGMENTATION

• ONE OF THE WORLD'S LARGEST INDUSTRIES

EXCEEDING US$ 9 TRILLION.

• DOMINATED BY DEVELOPED COUNTRIES.

• 47 GLOBAL FORTUNE COMPANIES & 25 OF ASIA'S

TOP 200 COMPANIES ARE RETAILERS.

• US, EU & JAPAN CONSTITUTE 80% OF WORLD

RETAIL SALES.

RETAIL SECTOR AT GLOBAL LEVEL

• RETAIL TRADE IN EUROPE EMPLOYS 15% OF

THE EUROPEAN WORKFORCE (3 MILLION FIRMS AND 13

MILLION WORKERS).

• THE WORLD’S POPULATION IS POISED TO EXPAND 50%

BY 2050. THE WORLD CURRENTLY COMPRISES OF 78%

POOR, 11% MIDDLE INCOME AND 11% RICH.

RETAIL SECTOR AT GLOBAL LEVEL (contd..)

CONTRIBUTION OF RETAIL INDUSTRY TO GDP OF VARIOUS ECONOMIES

USA

China

Japan

Brazil

India

20%

8%

14%

6%

12%

CONTRIBUTION RESPECTIVE TO GDP

US

SALES: $374.5 BN 

EARNINGS: $12.9

BILLION 

STORES: 6,800

WORLDWIDE

FRANCE

SALES: $130 BN

EARNINGS: $5.2

BILLION

STORES: 87,422

WORLDWIDE

UK

SALES: $102.6

BILLION

EARNINGS: $5.5

BILLION

STORES: 3,729

WORLDWIDE

GERMANY

SALES: $101 BILLION  

EARNINGS: $1.5

BILLION

STORES: 2,221

US

SALES: $77.3 BN 

EARNINGS: $4.2

BILLION 

STORES: 2,258

India

China

Indonesia

Thailand

Malaysia

Taiwan

US

0 10 20 30 40 50 60 70 80 90 100

OrganisedUnorganised

US TAIWAN MALAYSIA THAILAND INDONESIA CHINA INDIAUNORGANISED 15% 19% 45% 60% 70% 80% 95%ORGANISED 85% 81% 55% 40% 30% 20% 5%

ORGANISED VS UNORGANISED RETAIL AT GLOBAL LEVEL

EMERGING CONCEPTS

INDIA CHINA

FOCUS ON SERVICES FOCUS ON INDUSTRY

HIGH LABOR COST LOW LABOR COST

HOME GROWN CAPITAL FDI

OLD TECHNOLOGY ADAPTABILITY TO LATEST TECHNOLOGY

DEMOCRATIC GOVERNMENT COMMUNIST GOVERNMENT

INDIA VS CHINA

FDI POLICY IN RETAIL

OPPORTUNITIES

WHAT ARE GLOBAL RETAILERS SAYING?

• A LARGE EMERGING MARKET .

INCREASE IN DISPOSABLE INCOME OF A FAMILY.

70 MN INDIANS – SALARY OF $18,000.

RISE TO 140 MN BY 2011.

CONSUMER SPENDING POWER INCREASED BY 75%

IN LAST 3 YEARS.

THE PER CAPITA INCOME IN 2009–2010 HAS MORE

THAN DOUBLED TO US$ 849 FROM US$ 348 IN

2000–01.

DEMOGRAPHICSINDIA

• INCREASE IN CONSUMER CLASS.

CONSUMER CLASS WILL GROW

FROM 50 MILLION AT PRESENT TO

583 MILLION BY 2025.

WITH MORE THAN 23 MILLION

PEOPLE TAKING THEIR PLACE

AMONG THE WORLD’S WEALTHIEST

CITIZENS.

CONSUMER CLASS SHIFT

UPPER CLASS

MIDDLE CLASS

LOWER CLASS

• WIDE DEMOGRAPHICS -- AVERAGE AGE OF 25 YRS.

• BRAND CONSCIOUSNESS.

60 % OF POPULATION BELOW AGE OF 30.

AWARENESS THROUGH WORLD WIDE WEB.

• CHANGING CONSUMER MINDSET.

FOCUS SHIFTING FROM LOW PRICE TO

CONVENIENCE, VALUE AND A SUPERIOR SHOPPING

EXPERIENCE.

• SMALL BASKET SIZE SHAPING OF CONSUMPTION.

CONSUMER BEHAVIOUR

• Employment generation.

Second-largest employer after agriculture.

Retail trade employing 35.06 million.

Wholesale trade generating an additional

employment of 5.48 million.

EMPLOYMENT GENERATION

ADDITIONAL 1.6 MN JOBS

• TECHNOLOGY BETTER USE OF RESOURCES

AND GOODS.

WASTAGE AND STORAGE PROBLEMS WILL BE

RESOLVED.

EFFICIENT LOGISTICS, PRODUCTION, AND

DISTRIBUTION CHANNELS.

DIGITAL RECORDS.

TECHNOLOGY

INFRASTRUCTURE

• RURAL MARKET.

ROBUST CONSUMPTION.

70% INDIAN HOUSEHOLDS.

2/5 OF THE COUNTRY’S TOTAL

CONSUMPTION PIE.

ACCOUNTS TO 45% OF GDP.

RURAL MARKET

FISCAL GROWTH

EVERGREEN NEED

• FDI IN RETAIL SECTOR WILL RESOLVE PROBLEMS REGARDING FOREIGN EXCHANGE IN INDIA.

• THE LIFE-LONG BASIC NEEDS WILL KEEP ON DRIVING THE RETAIL INDUSTRY.

FDI POLICY IN RETAIL

CHALLENGES

• MAJOR CHALLENGE FACED BY ORGANIZED RETAIL SECTOR: IN

RETAIL, OVER 70 PER CENT OF THE LABOR FORCE IN BOTH

SECTORS COMBINED (ORGANIZED AND UNORGANIZED) IS EITHER

ILLITERATE OR EDUCATED BELOW THE PRIMARY LEVEL.

• LABOR LAWS

LACK OF SKILLED WORKFORCE

• A STRONG COMPETITION FROM MOM AND POP SHOPS:-

EASILY ACCESSIBLE & APPROACHABLE.

PROVIDE SERVICES LIKE FREE HOME DELIVERY AND

GOODS ON CREDIT.

THEY CHANGE CONSUMER FOCUS.

COMPETITION

INDI

AN

• PANTALOONS

• RELIANCE

• BHARTI RETAIL

• RPG• LIFES

TYLE• K

RAHEJA

• SUBHIKSHA

• PIRAMYD

• TRENT

• VISHAL GROUP

• BIG BAZAAR

• WESTSIDE

GLOBAL

• TESCO

• WALMART

• METRO

• CARREFOUR

• B&Q• TARG

ET

PROBLEM OF REAL ESTATE

CLUSTERING OF OUTLETS.

HIGHEST STAMP DUTY.

FORMAT AVERAGE SIZE

CONVENIENCE STORES 800 SQ. FEET

DISCOUNT STORES 1000 SQ. FEET

CATEGORY KILLERS 8000 SQ. FEET

SPECIALTY STORES SINGLE-CATEGORY

SHOP-IN-SHOP WITHIN LARGE MALLS

ORGANIZED RETAIL FORMATS IN INDIA

FORMAT AVERAGE SIZE

SUPERMARKET LARGE IN SIZE TYPICAL IN LAYOUT

DEPARTMENT STORES 10,000 – 60,000 SQ. FEET

CASH AND CARRY 75,000 SQ. FEET

HYPERMARKETS 50,000 – 1,00,000 SQ. FEET

• MARKET POWER IS IN HANDS OF UNORGANIZED RETAIL.

• POTENTIAL OF INDIAN MARKET IS US$ 200 BILLION WHEREAS INDIA IS JUST EARNING ITS 3%.

MARKET POWER

UNORGANIZED •95%ORGANIZED •5%

ABSENCE OF DEVELOPED SUPPLY CHAIN

LACK OF LOGISTIC INFRA.

CORRUPTION

ADDITIONAL INTERMEDIARIES

TECHNOLOGY HURDLES

SHRINKAGE

LACK OF LOGISTIC INFRASTRUCTURE

IN INDIA EVERY YEAR THERE IS PILFERAGE OF US$ 65 BILLION

WHEREAS IN USA IT IS JUST 1-2%.

DUE TO LACK OF PROPER STORAGE INFRASTRUCTURE POST-

HARVEST LOSSES OF FARM PRODUCE IS RS. 1 TRILLION CR.

ANNUALLY.

IN TERMS OF CORRUPTION INDIA STANDS AT 85TH

POSITION. BECAUSE OF PAPER WORK, CORRUPTION IS

PRESENT ALONG THE ENTIRE SUPPLY CHAIN.

CORRUPTION

ADDITIONAL INTERMEDIARIESIN INDIA, THERE ARE ADDITIONAL 2-3

INTERMEDIARIES AS COMPARED TO USA.

i. THEY DOMINATE THE VALUE CHAIN.

ii. THEY FLOUT MANDI NORMS & THEIR PRICING

LACKS TRANSPARENCY.

INDIA IS STILL IN DEVELOPING STAGE IN INSTALLING

AND MANAGING AN EFFECTIVE IT SYSTEM ESPECIALLY

IN RURAL AREAS WHICH HAMPERS THE OVERALL

GROWTH OF ORGANIZED RETAIL SECTOR.

TECHNOLOGY HURDLE

BANKS ARE RELUCTANT TO FINANCE RETAILERS

BECAUSE OF FALLING DEMAND OF ORGANIZED

RETAILERS IN INDIA AS IT HAS WITNESSED FAILURE OF

MANY STORES LIKE SPENCER'S, SUBHIKSHA, ETC.

PROBLEM IN RAISING FUNDS

• TAXATION LAWS IN INDIA FAVORS ONLY SMALL RETAIL BUSINESSES.

• IMPLEMENTATION OF NON-UNIFORM VAT ACROSS STATES.

• OCTROI AND ENTRY TAX IN SOME STATES.

TAXATION & STRINGENT APPROVALS

• NO AUTOMATIC APPROVAL FOR FDI : ONLY 51% FDI IS

ALLOWED TO ONE BRAND SHOPS IN INDIAN RETAIL SECTOR.

• COMPLICATIONS IN ISSUE OF LICENSES : LIKE A

HYPERMARKET IN MUMBAI MUST APPLY FOR 29 UNIQUE

LICENSES & THEN WHEN IT HAS TO COME UP WITH SECOND

STORE IT HAS TO APPLY FOR SAME 29 LICENSES ALL OVER

AGAIN.

INFLATION EFFECT ON INDIAN RETAIL INDUSTRY

DISTURBED ECONOMIC

STATUS.CHALLENGE TO

GET MORE CUSTOMERS AT

LOW COST.

LIQUIDITY PRESSURE

EMERGING HUMAN

RESOURCE CHALLENGES

• INDIAN RETAIL SECTOR :

EMPLOYS 8% (35 MILLION)OF THE WORKING POPULATION.

COULD YIELD 12 TO 15 MILLION RETAIL JOBS IN THE

COMING FIVE YEARS.

• OUT OF WHICH ORGANIZED SEGMENT IS ABOUT 0.3 MILLION.

• RETAIL SECTOR GREW AT 9.4% ON REAL TERMS & 15.4% ON

NOMINAL TERMS.

PRESENT SCENARIO

DISTRIBUTION OF HUMAN RESOURCE BY EDUCATION LEVEL

PROFILE REQUIREDMBA GRADUATES WITH 5-10YEARS OF EXPERIENCE

GRADUATES WITH 2-5YEARS OF EXPERIENCE

GRADUATES/ 12TH PASS/ 10TH PASS

GRADUATES/ 12TH PASS/ 10TH PASS

CURRENT TRAINING/EDUCATION INFRASTRUCTURE

• THE RETAILERS ASSOCIATION OF INDIA (RAI)

- DIPLOMA AND DEGREE PROGRAMS IN RETAILING

- BHARTI RETAIL AND VISHAL RETAIL

- 5,000 TRAINED PERSONS

PROJECTED INDUSTRY SIZE

WHAT LIES AHEAD?

• EMPLOYMENT.

• UNFAIR COMPETITION.

• UNDER-DEVELOPED ORGANIZED RETAIL SECTOR.

NSSO CONCERNS ON OPENING UP OF FDI

FDI CAN BE A POWERFUL CATALYST TO SPUR COMPETITION IN THE RETAIL INDUSTRY.

IT CAN BRING ABOUT: SUPPLY CHAIN IMPROVEMENT INVESTMENT IN TECHNOLOGY MANPOWER AND SKILL DEVELOPMENT EFFICIENT SMALL AND MEDIUM SCALE INDUSTRIES INCREASE IN EXPORTS

‘FDI IN RETAIL - A POLICY PERSPECTIVE’

100% FDI IN SINGLE BRAND RETAIL. 51% FDI IN MULTI BRAND RETAIL.

GOVERNMENT POLICY IN RETAIL IN NOV 2011

THE RS18,673 BILLION (US$401BILLION) INDIAN RETAIL MARKET IS ONLY 3 % OF GLOBAL RETAIL. OF THIS ONLY 6% IS ORGANISED RETAIL AS OF 2010. THE REST 94% REMAINS UNORGANIZED. BUT SURPRISINGLY, INDIAN RETAIL SECTOR ACCOUNTS FOR 22% OF THE COUNTRY'S GROSS DOMESTIC PRODUCT(GDP) AND CONTRIBUTES TO 8 % OF THE TOTAL EMPLOYMENT. HENCE, IF WE OPEN UP OUR RETAIL SECTOR, THEN OUR DESI RETAILERS AND THE MILLIONS OF KIRANA STORES WILL GO OUT OF BUSINESS. INDIANS WILL BE DRAINED OF ALL THEIR HARD EARNED MONEY THROUGH CONSUMERISM. MONEY DRAINED OUT OF OUR COUNTRY.

INDIAN RETAIL AT A GLANCE

THE CURRENT FDI RELAXATION COMES WITH A CONDITION : 30% OF SOURCING OF ALL PRODUCTS HAS TO BE DONE FROM INDIAN SUPPLIERS/SMES. THIS RECOMMENDATION CAN CREATE MUCH NEEDED EMPLOYMENT IN INDIA.

CONDITIONAL FDI

FOOD WASTED IN FCI GODOWNS COULD HAVE FED 2500 LAKH FAMILIES FOR 10 YEARS!!! A FRESH ESTIMATE FROM THE MINISTRY OF FOOD PROCESSING SAYS A WHOPPING RS 58,000 CRORE WORTH OF AGRICULTURE FOOD ITEMS GET WASTED IN THE COUNTRY EVERY YEAR. THAT’S ALMOST 50% OF THE TOTAL ANNUAL AGRICULTURAL PRODUCE. HENCE, OUR COUNTRY’S SUPPLY CHAIN INFRASTRUCTURE IS GROSSLY UNDER DEVELOPED. FDI IN RETAIL CAN RESULT INTO DEVELOPING “FARM-TO-FORK” INFRASTRUCTURE CONSISTING OF INTEGRATED STORAGE, COLD CHAIN AND TRANSPORT LINKS. A MUCH NEEDED REPAIR OF OUR GROSSLY LEAKING DISTRIBUTION SYSTEM

CURRENT STATE OF INDIAN RETAIL SUPPLY

FUTURE INVESTMENTS

MAJOR RETAIL PLAYERS TO COME TO INDIA

• INVESTMENT INTO WAREHOUSE AND COLD STORAGE CHAIN WILL RESULT IN SIGNIFICANT EFFICIENCY ON SUPPLY CHAIN.

• FARMERS BENEFITED THROUGH DIRECT MARKETING AND CONTRACT FARMING PROGRAMME.

• IMPROVES FARM PRODUCTION THROUGH MODERN TECHNIQUES.

• INCREASING AVAILABILITY OF LOW INTEREST CREDIT FOR FARMERS.

BENEFITS ENVISAGED TO AGRICULTURE THROUGH THE OPENING OF FDI

FUTURE PREDICTIONS

2008 2011 2013 20180

0.2

0.4

0.6

0.8

1

1.2

1.4

0.35

0.59

0.830000000000001

1.3

Expected Growth

CAGR 10%

• IN THE LAST FOUR YEAR, THE CONSUMER SPENDING IN INDIA CLIMBED UP TO 75%.• BY THE YEAR 2013, THE ORGANIZED SECTOR IS ALSO EXPECTED TO GROW AT A CAGR* OF 40%.• THE TOTAL NUMBER OF SHOPPING MALLS IS EXPECTED TO EXPAND AT A CAGR* OF OVER 18.9 PER CENT BY 2015.

* CAGR – COMPOUND ANNUAL GROWTH RATE

THE INITIAL CAP ON INVESTMENT COULD BE PEGGED AT 49%.

FDI SHOULD BE LEVERAGED TO CREATE BACK-END INFRASTRUCTURE.

FDI WILL BE A POWERFUL DRIVER TO CURB INFLATION.

RESTRICT THE NUMBER OF STORES THAT CAN BE OPERATED IN A CITY.

ALLOW ACCESS TO THE SMALL RETAILERS TO THE STORES THROUGH

SPECIAL WINDOWS.

RECOMMENDATIONS

OPERATIONAL EFFICIENCIES.

BEST DEAL TO THE FINAL CUSTOMER.

TRUE GLOBALIZATION.

WHAT ULTIMATELY MATTERS ??

WITH ALL THESE ANGRY BIRDS AROUND !!!!

WHICH BIRD SHOULD WE BE RIGHT NOW ???

OR

 

THANK YOU