ORGANIZED RETAIL

RETAIL – THE LARGEST PRIVATE INDUSTRY IN WORLD ECONOMY

0.3

0.8

1

1.1

1.2

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2

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5.1

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Pharmaceuticals; diagnostice

telecom

Automotive

Electronics

Energy

Chenmicals

Packaged goods

Construction / Engineering

Financial services

Retail

Sales (USD Trillion) 2013

RETAILING – THE LARGEST PRIVATE INDUSTRY IN THE WORLD

• OVER 50 OF THE FORTUNE 500 COMPANIES ARE

RETAIL COMPANIES.

• 25 OF THE ASIAN TOP 200 COMPANIES ARE

RETAIL COMPANIES.

• THE WORLD’S LARGEST COMPANY IS A RETAIL

COMPANY. US$ 203.105 BILLION

RETAIL INDUSTRY ACCOUNTS FOR 35% OF OUR GDP ESTIMATED INDUSTRY SIZE - USD 205 BN (INR

230,000 CR) IN 2004. HIGHEST NUMBER OF OUTLETS PER CAPITA - 12

MILLION OUTLETS LOWEST PER CAPITA RETAIL SPACE - 2 SFT PER

PERSON AS COMPARED TO 16 SFT PER PERSON IN USA

ONLY 4% OF THE COUNTRY’S OUTLETS ARE LARGER THAN 500 SFT

Source: KSA Technopak

Current Retail scenario in India

ORGANIZED RETAIL

ORGANIZED RETAIL ARRIVED IN INDIA IN THE 90’S

• 1999 RS 550 CRORE

• 2002 RS 4,000 CRORE

• 2004 RS 28,000 CRORE

• 2005 RS 35,000 CRORE

ORGANISED RETAIL PENETRATION

EXAMPLES OF GROWTH IN EMERGING MARKETS

Years taken for organized retail to grow from <5% to over 20%

INDIA IS STILL AT 2.5%

Source : MG1, team analysis

FORECAST 2010 ORGANIZED RETAIL IS EXPECTED TO GROW AT 30% - 35%

P.A. TO BECOME USD 24 BN (INR 100,000 CR) BY 2010

ORGANIZED RETAIL PENETRATION (ORP) WILL INCREASE FROM LESS THAN 3% IN 2005 TO 8% BY 2010

FDI IN REAL ESTATE WILL ACCELERATE PACE OF DEVELOPMENT OF RETAIL INFRASTRUCTURE

INVESTMENTS IN ORGANIZED RETAILING ARE ESTIMATED TO TOUCH USD 4,000 MN (INR 20,000 CR) BY END OF 2010

DEVELOPMENT CURVE OF ORGANISED RETAIL

GROWTH DRIVERS - YOUNG & RAPIDLY EVOLVING CONSUMERS

INDIA IS ONE OF THE

MOST YOUTHFUL

COUNTRIES IN THE

WORLD WITH 53% OF

THE POPULATION LESS

THAN 25 YRS OF AGE

GROWTH DRIVERS – MIDDLE CLASS POPULATION

GROWTH DRIVERS – RETAIL INFRASTRUCTURE

INDIA WILL HAVE 225 MALLS BY 2007 SPREAD OVER 50 CITIES

RELAXATION IN FDI IN REAL ESTATE TO GIVE FURTHER IMPETUS

REAL ESTATE MUTUAL FUNDS ( REMFS) & REAL ESTATE INVESTMENT TRUSTS ( REITS) COMES TO INDIA

RETAIL – LARGEST EMPLOYER IN THE WORLD

INCREASED EMPLOYMENT OPPORTUNITIES

- THE ANNUAL EMPLOYEE TURNOVER OF WAL-MART IS MORE THAN THE ENTIRE WORKFORCE OF GENERAL MOTORS

- 18% OF THE US WORKFORCE IS EMPLOYED IN RETAIL

SOCIOECONOMIC IMPACT OF MCDONALDS ON THE

US JOB MARKET

• EMPLOYS MORE THAN 5,00,000 PEOPLE

• LARGEST EMPLOYER OF HIGH SCHOOL STUDENTS

• 12.5 % OF THE US WORKFORCE HAS WORKED FOR MCDONALDS

• 1 OUT OF 15 AMERICAN GOT HIS/HER 1ST JOB AT MCDONALDS

• NATIONS LARGEST JOB TRAINING ORGANISATION -BIGGER THAN THE US ARMY – TEACHING THE FUTURE US WORKFORCE “ WORK ROUTINES,JOB DISCIPLINE AND ORGANISATIONAL TEAMWORK

McDonalds captures 1 out of every 6 restaurant visits in the US market

THANK YOU