ANALYSIS OF ANNUAL REPORT

OF FUTURE GROUP 2011-12

Objective:- To know the insight about the past and foresight for the future.

To know the financial position and future course of action of the company.

Corporate profile

Future Group is India’s largest retailer and one of the leading business houses.

Its founder and Group CEO is Mr.Kishore Biyani .

Future Group’s retail network touches the lives of more than 200 million Indians in 73 cities and 65 rural locations across the country.

Currently operates around 1,000 stores spread over 16 million square feet of retail space.

Introduction

Introduction about large format retail industry The Indian retail industry has experienced high

growth over the last decade. The industry is moving towards a modern concept

of retailing. The size of India's retail market was estimated at

US$ 435 billion in 2010. Of this, US$ 414 billion (95% of the market) was

traditional retail and US$ 21 billion (5% of the market) was organized retail.

How did it grow 1987 Company incorporated as Manz Wear Private Limited. Launch of

Pantaloons trouser, India’s first formal trouser brand.

1992 Initial public offer (IPO) was made in the month of May.

1994 Future Group India was established with a vision to provide diverse services in Indian and Global markets.

1997 Pantaloons – India’s family store launched in Kolkata.

2001 Big Bazaar, ‘Is se sasta aur accha kahi nahin’ - India’s first hypermarket chain launched in Jogeshwari,Mumbai.

2002 Food Bazaar, the supermarket chain is launched.

2007 Future Group crosses $1 billion turnover mark.

INDIAN RETAILACCORDING TO Business TODAY OCT’2011

Organised4%

Unorganised96%

Indian Retail

Retail market in india The Indian retail industry has experienced growth

of 10.6% between 2010 and 2012 and is expected to increase to USD 750-850 billion by 2015.

Food and Grocery is the largest category within the retail sector with 60 per cent share.

followed by Apparel and Mobile segment.

Market sharesource-indian retail report 2013 image group

60%

6%

4%

3%

8%

5%

3%

11%

Retail distribution

Food & Grocery Mobile& telecom

Jewellery Pharmacy

appareal food service

consumer elecrtronics others

Key players1) Pantaloon Retail Ltd, a Future group venture:

2) Shoppers Stop Ltd:

3) Spencer’s Retail

4) Lifestyle Retail- Landmark group venture

Other major domestic players in India are -

Bharti Retail, Tata Trent, Globus, Aditya Birla ‘More’, and Reliance retail.

Future group Future Group was founded on a simple idea:

Rewrite rules, retain values. Founded in 1987 by Retail king Kishor Biyani. Future Group brings multiple products,

opportunities and services to millions of customers in India.

Through over 16 million sq.ft of retail space. Serve customer in 95 cities across the country. Help India to shop, save and realize dreams, and

aspirations to live a better quality of life everyday.

Key group companies

Swot analysisStrengths:-1.Wide presence in India covering almost all major cities.2. Efficient ,cost conscious committed quality service

3. High brand equity in evolving market

4. Variety of products under single window increasing the chances of customer time and choices

5. Has an employee base of over 35,000

6. Everyday low prices, which attract customers, and has a Huge investment capacity.

7. It offers a family shopping experience, where entire family can visit together.

Weakness:-1.Dependent heavily on India, and is susceptible to foreign players

2. Stiff competition from global players means market share growth is limited

3. Extremely popular means heavily crowded during festive/discount seasons

4.Unable to meet store target till now 5.Falling revenue per square feet

6.High debt (compared to competitors) willincrease financial risk

Swot contd…Opportunities:-

1. Evolving consumer preference in recent yr.

2. Organized retail is minute in India

3. Global expansion and tie-ups with international brands.

4. Early Entry in Indian Retail .Organized retail.

5. Global Expansion

Threats:-

1.Global players trying to enter into Indian market.

2. Low priced product could be perceived as low quality product.

3. Government policies are not well defined in country like India

PEST ANALYSIS

What is BCG matrix The BCG matrix is a chart that had been created by Bruce

Henderson for the Boston Consulting Group in 1968 to help corporations with analyzing their business units or product lines. This helps the company allocate resources and is used as an analytical tool in brand marketing, product management, strategic management, and portfolio analysis.

SBUs can be shown within any of the four quadrants (Star, Question Mark, Cash Cow, Dog) as a circle whose area represents their size. With different colours, competitors may also be shown.

The precise location is determined by the two axes, market Growth as the Y axis, Market Share as the X axis. Alternatively, changes over or two years can be shown by shading or other differences in design.xx.[1] Thus, Star products are currently have high growth and high market share however question mark is product with low share but high growth. Cash Cow has high share but low growth. Finally, dog is product that has low growth and low share.

BCG MATRIX

Conclusions These are the conclusions for Future Group products, how

they are lying in the BCG matrix is given below: Cash Cow: The market share value of these products which

are in this Cash Cow are high and relative market growth rate is low, that is why they are lying in BCG Matrix at Cash cow point.

Star: The market share value of these products which are in Star are high and relative market growth rate is also high, that is why they are lying in BCG Matrix at Star point.

???: The market share value of these products which are in ??? is low and relative market growth rate of is high, that is they are lying in BCG Matrix at??? Point. At this point, Company makes their investment on this product to get the point of CASH COW and STAR in BCG matrix.

Dog: The market share value of these products which are lying in Dog is low and relative market growth rate is also low, so that is why they are lying in BCG Matrix at Dog point.

SUPPLY CHAIN

Introduction

FSC Supply Chain Solutions team studies the business imperatives of customers and designs customized supply chain solutions in collaboration with the customers. FSC Supply Chain Solutions are sector specific which include the following:

Supply chain consulting to define business needs and logistics opportunities

Distribution and Transportation network analysis and design Warehouse and Facility modeling and layout, including evaluation of

Infrastructure and mechanization needs Evaluation and implementation of Technology Labor management opportunity assessment Operational analysis and improvement 3PL capabilities of high-end Warehousing, Express and Customized

Movement Solutions

Future group supply chain process  Future Supply Chains, a specialized subsidiary, offers a

strategic, focused and combine approach to meet the group’s large supply chain requirements as well as those of select suppliers and business partners.

Future Supply Chains provides integrated end-to-end supply chain management, warehousing and distribution, multi-modal transportation and container freight stations.

Operates 5 major verticals: Warehousing, Transportation, International Logistics, Brand Distribution and Reverse Logistics

Cont... Current warehouse footprint of over 3.5 million square feet

with 67 warehouses across 32 locations. Dedicated fleet of over 400 vehicles and an outsourced fleet

of 400 trucks that move goods across India in the most efficient and cost-effective manner

Li & Fung, the Hong Kong-based largest retail supply chain company, is an investor and partner of Future Supply Chains.

Integrated state- of- the- art Warehousing and Distribution services is a core competency of FSC Contract Logistics. We partner with our customers to effectively reduce their Time- to- Market™ and Cost- to- Market™; thereby helping them increase their revenues and profitability.

- SUPPLY CHAIN BIG BAZAAR

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SUPPLY CHAIN PROCESS

FSC supply chain solutions advantage

FSC has established capabilities to study customer’s current supply chain processes and Re-engineer, Build & Implement customized Supply Chain solutions for Automotive and Auto Components Industry in collaboration with the customer.

FSC as a supply chain partner is responsive, flexible, and highly proactive, with the ability to service Intermediate and Last Mile.

FSC Services for Automotive Supply Chain are- Inbound 2 Manufacturing (I2M)

Managing Raw material stores Vendor Managed Inventory (VMI) Distribution Reducing Inventory holding costs Streamlining processes

Automotive Spare parts Warehousing and Distribution 

THANK YOU